Number of Rural Returnees for Farming Rises Despite Overall Decline in Rural Migration

[Anchor]

Joining us this Friday is reporter Han Ji-yeon for 'Friendly Economics.' Reporter Han, are there many people returning to farming?

[Reporter]

Last year, the number of people returning to farming reached 9,134, up 8.7% from the previous year.

This marks the first increase in four years since 2021.

When experiencing burnout, you might have said at least once, "I want to live a quiet life farming."

But putting it into practice is not easy.

I know people around me who say this, but they are all still diligently going to their offices.

However, last year, the number of people who actually chose to return to farming—not just talk about it—increased for the first time in four years.

The numbers rose whether counted by farming households or by individual household members.

Currently, the second-generation baby boomers, born between 1964 and 1974, are entering retirement in earnest.

Analysis shows that an increasing number of people from this generation, which exceeds 9.5 million, are choosing agriculture for their second act in life.

In addition, with the rapid spread of agricultural machinery and automation, the burden of starting farming for the first time has decreased compared to the past.

In terms of prior residence before returning to farming, Gyeonggi Province accounted for the largest share at 21%, followed by Seoul at 14% and Gwangju at 8%, showing that many moved from the metropolitan area and large cities to rural areas.

Here, "returning to farming" (gwinong) is a different concept from "moving to a rural area" (gwichon).

"Returning to farming" refers to moving to a rural area to engage in agriculture, while "moving to a rural area" simply means relocating one's residence to the countryside.

In other words, those who return to farming are a subset of those who migrate to rural areas.

Interestingly, the number of people simply moving to rural areas has actually decreased.

Last year, the figure stood at 413,000, down 2.2%.

This is attributed to a decline in overall population mobility nationwide, which also led to fewer people relocating to the countryside.

[Anchor]

Farming is definitely not an easy task. But at around 9,000 people, the absolute number still doesn't seem that large.

[Reporter]

Also, the demographics of those returning to farming have changed compared to the past.

The growth rate of female farmers returning to the countryside was three times that of men.

Additionally, the number of people combining farming with other jobs has increased.

The most notable figure in the latest statistics is female returnees.

Last year, the number of female returnees to farming increased by 15.4%, more than triple the 5.1% growth rate for men.

By age group, those in their 60s made up the largest portion at 38%, followed by those in their 50s at 30%.

Notably, returnees in their 70s and older increased by 17.3%, showing a rising trend among the elderly.

The way people return to farming is also changing.

While full-time farming returnees increased by about 8%, those pursuing farming alongside other occupations grew by over 10%, showing a larger increase.

The Ministry of Agriculture, Food and Rural Affairs explained that family-succession farming—where children inherit their parents' farms—and multi-income farming, which combines agricultural income with earnings from other jobs, are steadily on the rise.

[Anchor]

And gold prices have been falling lately. There must be a reason for this decline, right?

[Reporter]

First, looking at international gold prices, they have fallen below the $4,000 mark for the first time in seven months.

In terms of domestic gold prices, the price of one "don" (3.75 grams) of pure gold dropped from 1.12 million won to 869,000 won, plunging 22% in just five months.

Just in January of this year, gold was highly sought after as a representative safe-haven asset, reaching an all-time high of $5,594 per ounce.

However, the sentiment has completely shifted now.

International gold prices plummeted by more than 3% in a single day, even dipping below the $4,000 level during trading.

Compared to the record high earlier this year, the drop is about 29%.

Generally, a drop of 20% or more from a peak is considered entering a bear market.

The biggest reason for this drop in gold prices is growing expectations of a U.S. interest rate hike.

Recently, Federal Reserve Chair Kevin Warsh emphasized the need to curb inflation, and concerns have grown that prices could spike again as the war in Iran drags on.

Since gold is an asset that does not pay interest or dividends, when interest rates rise, investment funds tend to shift to interest-bearing assets like savings accounts or government bonds.

On top of this, a strong dollar has also fueled the decline in gold prices.

In addition, analysts say that the recent AI investment boom has driven investment funds into semiconductor and AI-related stocks rather than gold, which is a safe-haven asset, further contributing to the drop in gold prices.

Indeed, more than 100 billion won has flowed out of domestic gold spot ETFs over the past month.

However, experts project that since central banks around the world continue to purchase gold, gold prices are likely to find support at around $3,900 per ounce.
※ Please note: This article was translated by AI and may contain errors.