The Development of E-business and Entrepreneurship among Korean Women's Agricultural Cooperatives Young-Ock Kim (Korean Women's Development Institute) Contents 1. Women Farmers in Korea 2. Income Generating Activities 3. ICT Programs for Farmers 4. The Development of E-business for Women's Agricultural Co-ops 5. Direct & Indirect Outcomes 6. Future Direction Entrepreneurship 1. Women Farmers in Korea # of Women Farmers > # of Men (Year of 2004) Sex Persons % Men 946,000 47.0 Women 1,067,000 53.0 .......... But most of women farmers are unpaid family workers, a few are managers. Dual burden of Farming and Domestic Work Labor hours in rice farming households (1998, per day) Busy Farming Slack Farming Yearly Mean Season Season Woma Man Woman Man Woman Man n Total 11:50 12:58 6:18 8:45 9:04 10:52 Farm Labor 11:35 9:00 5:35 3:34 8:35 6:17 Housework 0:15 3:59 0:43 5:11 0:29 4:35 Source: RDA, The Report on Life Times of Rural Women and Managers, 1999 Women Farmers have long farming experience. Most rural women(30.2%) have been devoted to farming for the years of 10-20. The next highest proportion(about 25%) falls into the years of 30 and above. farm women's y ears worked no ans w ers 1.8 30 y ears & over 24.3 20-30 y ear 20.6 10-20 y ear 30.2 5-10 y ear 13.2 3-5 y ear 3.7 les s than 3 y ear 6.1 0 5 10 15 20 25 30 35 % Invisible Women Farmers Although many farm women participate in farming, most farm women have been alienated from farm management, decision making, and distribution process of agricultural products. Ownership of property -The rate of ownership in land and house - are both found to be below 2%. 100 94.0 94.0 80 60 Female 40 Male 20 1.8 1.8 0 Land House 2. Income Generating Activities Inadequate Agricultural Income ○ Most of Korean farmers still live on the income generated mainly from rice and a number of other crops, such as barley, pulses, potatoes, apples, Chinese cabbage, onions, and red-pepper. ○ Average farm household income are below the average level of the urban incomes although rural living conditions have improved significantly. INCOME GENERATING PROGRAMS Rural Development Administration (RDA) has started IGPs since 1990. - Identifying women's indigenous knowledge and expertise - Supporting starts-up costs - Providing processing technologies and managing skills - Consulting packing and designing - Helping marketing Rural Development Administration (RDA) - RDA is the central government organization for agricultural researches and extension services. - RDA has 12 institutes responsible for all aspects of agricultural research and education. And RDA has 9 Province Agricultural Research and Education Services, and 157 City/County Agricultural Development and Technology Center, which carry out research and extension services for their respective region. INCOME GENERATING PROGRAMS - The main contents of the works are the processing, packing, sales of agricultural products and manufacture of traditional foods such as soy fermented foods, and the production of special products in the local areas. - RDA has subsidized 169 projects with national, and more than 700 projects with local subsidy. The total funding support from National Gov was amounted to 2,292 millions won. Income Generating Programs ( 1990-2003, National subsidy only ) '90∼ '96 '97 '98 '99 '00 '01 '02 '03 Total '95 # of 38 9 10 10 18 20 21 23 20 169 projects Funding 186 90 100 120 216 300 420 460 400 2,292 (Million won) 3. ICT Programs for Farmers - Since the whole society has transformed into information society with high speed, the digital divide between urban and rural areas as well as between sex has emerged. - To reduce such gap Ministry of Agriculture and Forestry implemented various IT programs for farmers. ① Computer Education for Farmers - Computer education to 170,000 farmers from 2000 to 2002 (75,000 in 2001) . - In 2001, the program becomes more systematic ( basic → intermediary → advanced course ) ② Mobile Computer Education - A special bus equipped with computer facilities visits farm households, who live in remote areas with little access to proper education equipment, as well as those who cannot afford to leave their workplace. - In 2001, the program will be offered to 2,000 farmers in 150 villages. ③ “Farming Information 119” - Farmers make a telephone call when having trouble with their computers, and agricultural college students visit the households for assistance. Students trained for this purpose receive actual expenses for providing each service by the Government. - In 2000, 10,109 farmers received the service and the number of the beneficiary is expected to increase to 15,000 in 2001. - This individual-tailored education program includes how to fix computers at home and to use computers, and how to search data on the Internet, as well as how to utilize agricultural softwares. ④ Assistance System for Farm Products Shipment - Posting, on the Internet, important wholesale market information such as prices and trade volumes of farm products would assist farmers in selecting the market, best time, and method of shipment. - In 2001, real-time information on wholesale auction of a variety of products such as garlic, onion, hot pepper, radish, and cabbage was provided. Furthermore, more detailed agricultural production data were added onto a wireless Internet. ⑤ Comprehensive shopping mall for E-commerce of agricultural products - To provide a list of price and quality of farm products directly to consumers by linking farmers’ websites with an on-line shopping malls in 2001, the existing 400 websites were developed into comprehensive portal sites with 500 new websites and extended links with more on-line shopping malls. - Quality of contents on these websites also improved, with 3-dimensional display of products, an animation image of high-end farm products, and additional information on agricultural equipment. - In addition, customer management system was introduced to strengthen one-on-one marketing. ⑥ Building personal home pages for farmers - By building home pages for farmers, farmers will be able to take part in an on-line agricultural market and reduce the marketing margin. - 106 and 306 websites were built in 1999 and 2000 respectively. - In 2001, 506 websites were newly established, with separate on-line communities for each region and farm product. 4. The Development of E-business for Women's Agricultural Co-ops - Income Generating teams are women's agricultural co-ops. - Most of the Income Generating Programs have been equipped with home pages for E-business. 5. Direct & Indirect Outcomes - Raising farm income - Money income of her own name - Self confidence of rural women - Consuming local materials & inputs - Vitalizing local area with e-trades, farm tour - Keeping, R&D of women’s indigenous knowledge 6. Future Direction -> Entrepreneurship Operating a homepage is not enough to launch e-commerce. Tasks to promote e-commerce of women’s co-ops are, - Entrepreneurial education including book keeping, marketing, legal restrictions & procedures, return policy - Upskilling processing and packing (also environment friendly) - Standardization of goods & establishment of quality assurance system - Integrated information system for on-the-spot ordering, confirmation of delivery, etc.