Rice is the principal Korean crop, and it has consistently represented more than half the total value of agricultural production. During the 1930’s the rice crop averaged about 100,000,000 bushels annually. Forty per cent or more was exported each year to Japan accounting generally for about one-third of the total gross value of exports. This was by no means voluntary on the part of the Korean people. In line with Japanese policy, farm tenancy increased from less than 40 per cent in 1910 to more than 75 per cent in 1945. This facilitated grain collections, for landlords usually received their rentals in rice, and these averaged about 60 per cent of the crop. Consequently, although Koreans preferred rice to other grains, their per capita consumption was forced down from 3.62 bushels in 1915-19 to 2.0 bushels in 1939-45, a decline of 44 per cent. This deficiency was partly made up by imports of Manchurian millet and soya beans, but underconsumption was nevertheless chronic.
To meet the food crisis in South Korea and to rehabilitate agriculture the Military Government developed program to import foodstuffs to prevent starvation and to assure Korean urban residents at least a subsistence diet until indigenous production could be increased to meet minimum food needs; and a fertilizer import program designed to restore depleted soils and increase agricultural production to levels at least as high as had been reached in the past.
In 1945 the Military Government’s attempt to institute a compulsory system of rice collection for rationing to non-self-suppliers was largely unsuccessful. In 1946, a poor crop year due to floods, the Military Government collected 87,428 tons of rice, or about one-sixth of the total production. In order to supplement indigenous production to meet the minimum needs of non-self-suppliers in South Korea, 180,848 metric tons of wheat, corn, and flour were imported into South Korea by the Military Government from May through December, 1946.
A program for the collection of the rice in 1946 was given highest priority by the Military Government, as one of the most important ways to ease the food situation, stabilize the economy, and check the inflationary spiral. This program was fully supported by all agencies, and it succeeded in collecting a total of 548,000 metric tons of polished rice, or its equivalent, about 30 per cent of the total 1946 production.
This successful collection program, coupled with the importation of 275,962 metric tons of cereals purchased with U. S. funds during the first seven months of 1947, has enabled the Military Government to stabilize the food situation in South Korea through the issuance to non-self-suppliers of minimum staple rations averaging slightly over 300 grams (1,050 calories) per person per day.
Fisheries—Fishing was one of the important prewar Korean industries, ranking sixth in the world. It is second in importance, only to agriculture in the economic structure of the country. The industry was, however, largely dependent upon Japan for imports of fisheries supplies and, has deteriorated seriously since this source has been cut off. Consumption of fish products has decreased from a prewar average of 47 pounds per capita per year to 32 pounds. Korea needs additional fisheries supplies, boats, manila line, nets, trawls, ammonia for refrigeration, tin plate for canning, salt and sugar for canning. Fears are expressed that if such supplies are not forthcoming and fishing operations considerably expanded, the Japanese will enter claims for fishing grounds now reserved for the Koreans.
Foreign Trade
The total volume of Korea’s external trade grew from 660,000,000 yen in 1910 to more than 2,400,000,000 yen in 1939. With respect to the principal categories of its trade, i. e., foodstuffs, textiles and fibres, minerals, manufactures, and miscellaneous items. Korea was consistently a net importer; of all, except for foodstuffs. Food exports however, were seldom so large that they did more than offset imports of textiles and fibers.
From 1910 to 1945, Korea’s external trade was almost wholly absorbed by the Japanese Empire and the prime factor during the entire period was the export of rice to Japan. In 1936, of the value of 41 Korean products showing a net export balance, rice accounted for approximately 64 per cent. Although by 1939 the relative importance of rice exports had declined in favor of minerals and manufactures, of the 55 net export products in that year, rice still made up one-third of the total money value. Until the years immediately preceding the war, fish and marine products ranked second to rice, averaging from 7.5 per cent to 9 per cent of all net export commodities. Other exports individually were of minor significance. Korea’s principal imports historically have reflected its dependence on the outside world for fuels, heavy manufacturers, machinery, automotive equipment, textiles, and fibers, and specialized products.
Under current conditions, foreign trade in the ordinary sense of the term is small in amount. During the period August 15, 1945, through June 30, 1947, the value of goods entering or leaving the area was approximately $168,000,000. Of this sum, however, only about $25,000,000 represents the value of goods exchanged between Korea and the mainland of Asia as a result of the operations of private traders. The remaining $143,000,000 represents mainly commodities imported by agencies of the United State Government as a part of the Civilian Supply Program and financed with appropriated funds of the War Department, or as shipments made under the $25,000,000 UNRRA supplies. Exports which enter into this figure are surplus Foreign Liquidation Commission credit, plus small amounts of government-owned minerals and marine products, to the value of some $5,000,000.