The Asianist

As in Japan, rice imports are severely restricted in South Korea. Traditionally, rice autarky (and thus farmers) was politically important.

What this meant, however, was that rice pricing was distorted from the market supply-demand equilibrium (either the price was too high or the government subsidized the cost).

Of course, the economically rational thing to do is to allow free trade in rice like any other commodity. The resulting competition naturally lowers the price to benefit the consumers.

In a positive step (via The Marmot's Hole):

A National Assembly panel Thursday passed a bill aimed at ratifying rice import agreements that South Korea signed with nine countries last year despite fierce protests from lawmakers of the minor opposition Democratic Labor Party (DLP).

As one can guess, DLP is the socialist, ultra-leftist party.

Under the agreements, South Korea will raise its rice import quota to 7.96 percent by 2014 from the current 4 percent in return for a 10-year additional delay in introducing tariffs on rice. The minimum import amount of rice will increase from some 200,000 tons to 400,000 tons by 2014.

The rice accords also call on Seoul to permit up to 30 percent of the imported rice to be sold directly to consumers by 2010.

Hey, maybe this means that South Koreans too will be able to taste the superior Thai jasmine rice at reasonable prices in the future!