ⓒYONHAP News

South Korea will no longer seek developing country privileges at future international trade negotiations.

Announcing the decision Friday, Finance Minister Hong Nam-ki noted the move was unavoidable.

"Advanced as well as developing countries within the WTO have recently raised issue with our developing country privileges. Many countries with similar or smaller economic sizes and power than us, including Singapore, Brazil and Taiwan, have declared that they won't assert developing country privileges going forward."

South Korea is the 12th largest economy in the world in terms of gross domestic product, but is categorized as a developing country at the World Trade Organization(WTO) with regard to agriculture-related policies.

The status allowed the government to provide subsidies to farmers and maintain a 513 percent tariff against rice imports. Without the WTO’s developing country status, tariffs may fall to as low as 154 percent. 

U.S. President Donald Trump recently raised the issue of such trade advantages, threatening to arbitrarily strip richer countries of the developing country status.

"The government has decided not to pursue developing country privileges at future WTO negotiations ... under the premise that we may retain and exercise the right to demand flexibility to protect the private agricultural sector. During the current decision-making process, I would like to make it clear that first, [South Korea maintains] the right to hold separate negotiations for sensitive items including rice, and second, we are not giving up our developing country status, but will no longer assert privileges in future negotiations."

While adding technical disclaimers, the government emphasized that the move will not affect farmers anytime soon as there are no pending agriculture-related negotiations scheduled at the WTO.

Despite the assurances, farmers’ associations immediately protested the decision in a rally in front of the government complex in Seoul.

The Korean Peasants League, which has some 300-thousand members, said it will stage massive rallies against the move.