Angry farmers rally against officials' snatching of farming subsidies

(LEAD) (ATTN: RECASTS lead; ADDS details of protest in para 3; REPHRASES para 6) By Shin Hae-in

SEOUL, Oct. 24 (Yonhap) -- Hundreds of angry farmers from all over the country
gathered outside the National Assembly Friday demanding state authorities return
the rice farming subsidies paid illegally to ranking officials and legislators.
Recent reports revealed at least 500 billion won (US$370 million) in government
subsidies intended to support rice producers went to millions of ineligible
applicants -- including thousands of public servants -- over the past four
years, triggering widespread anger among the nation's farmers.
More than 400 farmers rallied in front of the parliament, burning an effigy of
the "fake farmers" and threatening to escalate protests until their demands are
met.
"Reveal the names of these fake farmers at once!" several protesters shouted as
their leader read a statement on top of a truck surrounded by several riot police
buses.
Authorities have yet to disclose the names of those who illegally pocketed the
farmers' funds, although the state audit board said earlier this week it will
move to restore the old files which were deleted last year.
"The incident has been taking away our last hope," the statement, representing 13
farmers' groups including the Korea Peasants League said. "The government and
parties should be ashamed of turning this into a political scandal when we are
increasingly suffering from debt and falling farm-product prices."
Thousands of farmers nationwide have been launching protests almost every day
since the snowballing case first made headlines earlier this month, after the
vice health minister was found to have applied for the money by falsely claiming
she farmed rice. The disgraced vice minister was replaced earlier this week.
The case, involving at least 4,000 public servants including several ranking
officials and ruling party lawmakers, threatens to erode the credibility of the
eight-month-old Lee Myung-bak government as it strives to fend off a growing
financial crisis and put reform programs back on track.
The scandal is also an embarrassment to the main opposition Democratic Party,
which was in power when the malfeasance took place and state auditors allegedly
hid the fact from the public.
"We don't care about whose fault it is," said a protesting farmer who said he
left for Seoul early Friday morning from Changwon, South Gyeongsang Province. "We
want our money back and substantial measures to make sure this will never happen
again."
South Korea, a traditional rice farming nation, has seen a sharp decline in the
number of farmers in the last few decades. Within the past 13 years, the number
of farmers shrank to 3.5 million from 5.5 million, according to government data,
as they become growingly vulnerable to cheaper imported farm products and a poor
living environment.
The rice farming subsidy system was established in 2005 under the liberal Roh
Moo-hyun administration to support low-income farmers who protested the opening
of the Korean rice market to cheaper imports. Only those who actually produce
rice -- excluding those who simply own rice paddies -- are eligible for the state
subsidies.
Observers say officials and legislators who own land likely applied for the
subsidies in order to evade heavy property taxes, as the country's tax law
requires individuals to farm the land for at least eight years to receive tax
deductions. It does not require proof that applicants are the actual farmers.
Up to 280,000 of the 998,000 people who received rice farming subsidies in 2006
alone were found to be "non-farmers," according to the audit agency. Of those,
about 4,000 were listed as public servants, while 6,200 were employees of
state-run corporations.
hayney@yna.co.kr
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