After 1945, the special cultivation area for red ginseng raw material (SCARG)in Gaeseong City and its surrounding regions were divided between South andNorth Korea. This division was solidified with the establishment of the armisticeline in 1953 after...
After 1945, the special cultivation area for red ginseng raw material (SCARG)in Gaeseong City and its surrounding regions were divided between South andNorth Korea. This division was solidified with the establishment of the armisticeline in 1953 after the Korean War broke out in 1950, and the region suffered significantdamage. The red ginseng stored in Gaeseong immediately after liberationwas looted by the Soviet Army, while the stock in Seoul was seized by theNorth Korean Army during the Korean War. Consequently, South Korea’s redginseng industry was forced to cease operations.
In response, the Monopoly Bureau established a five-year plan in 1951 to startginseng cultivation in Buyeo County. The employees of the Gaeseong Branch ofthe Monopoly Office who fled to Buyeo County recovered ginseng seeds buriedin enemy territory along the Imjin River in February 1952 and established anursery. In 1955, the Monopoly Office(MO) implemented a five-year strategy toincrease raw red ginseng production, and in 1956, a red ginseng manufacturingplant was established in Buyeo County. And in the same year the Red GinsengMonopoly Act was proclaimed. From 1955 to 1979, nine Ginseng Cultivation Associations(GCAs) were established nationwide, and by 1981, SCARGs were designatedin 60 counties. The establishment of this infrastructure resulted in a 21-fold increase in raw red ginseng production, from 9.6 tons in 1961 to 204.9 tons in1969. Subsequently, research institutions under the MO evolved into entities such asthe Central Monopoly Technology Research Institute, the Korea(Goryeo) GinsengResearch Institute, and the Korea Ginseng and Tobacco Research Institute.
The cultivation technology developed by these institutions was disseminated tothe production regions. This advancement led to the procurement of 2,242 tonsof raw red ginseng materials from contracted cultivation areas in 1987, an elevenfoldincrease compared to 1969.
In 1996, the red ginseng monopoly system was abolished, and the privatizedKorea Ginseng Corporation (KGC) took over the red ginseng business. By 2000,KGC increased contract deposits and advance payments to 60% and providedloans to contracted farmers in alignment with its mid- to long-term raw materialprocurement plans. Furthermore, through initiatives such as the development ofnew cultivation areas, the distribution of high-quality ginseng seedlings, and theprovision of loans for agricultural machinery, KGC and the Ginseng AgriculturalCooperatives(formerly GCA) significantly increased the procurement of raw redginseng materials. As a result, procurement reached 5,037 tons in 2006 and 7,167tons in 2020.