South Korea’s Ministry of Agriculture, Food and Rural Affairs 2026 research and development investment plan for the agricultural sector reveals a policy to allocate budget resources primarily to the “smart agriculture” field, centered on robots, drones, and artificial intelligence (AI).
The plan aims to address structural challenges in Korean agriculture, such as an aging population and severe labor shortages, while achieving increased productivity and labor savings.
A key feature of the plan is its emphasis on developing field-implementable technologies, such as autonomous agricultural machinery, data analysis for precision farming, and unmanned pest control drones. The plan also envisions advancing the sophistication of agricultural management through the development of standalone technologies, and by establishing data integration platforms and agricultural ecosystems.
These platforms are expected to promote collaboration with agricultural machinery manufacturers, ICT companies, and startups. The government also plans to commercialize research outcomes and expand exports to enhance domestic agricultural competitiveness and create new industries. This R&D enhancement is not merely a subsidy policy but part of a long-term strategy to transform agriculture into a data-driven industry.
Source: AgTechNavigator Read The Article
PSR Analysis: This is a short-term demand stimulus measure through subsidies, but it seems to be aimed at shifting the competitive axis for agricultural machinery from “machine performance” to “data and autonomous control” in the medium to long term.
In the Korean market, Japanese brands like Kubota and Yanmar have technological, reliability, and patent advantages, so a rapid reversal in mechanical core technology is unrealistic. However, a comeback is possible even as a latecomer in software domains such as AI control, autonomous driving, and agricultural data infrastructure.
If the government spearheads the development of smart agricultural infrastructure, domestic manufacturers could differentiate themselves with an integrated “hardware + data” model. Nevertheless, since farmers prioritize durability and asset value, a significant short-term erosion of Japanese brands’ market share is unlikely.
A more realistic scenario is that Korean manufacturers will advance their capabilities while Japanese brands localize and adapt their smart functions. Consequently, the market will likely evolve toward intensified competition in added value rather than experience sudden shifts in market share. PSR
Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research
