A policy direction of vessel buyback program for coastal and offshore fisheries in Korea

Abstract

The paper is to serve as a guide for deciding on a desirable direction for the vessel buyback program, reviewing their performance and economic effects from fish harvest reduction due to not reaching MSY. Compared with maximum willingness to pay for vessel buyback programs designed to avoid economic losses occurring as a result of overfishing, the portions of investment costs for buyback program are so small, comparatively to the range of 0.32% to 12.19% at the annual base. The economic loss effects occurred in terms of the reduction of fishing harvest are comprehensively estimated at the present value of 30,877 billion won since 1971, and exceeded the revenues for fish harvests from 1999. In orderto restore fish stocks through a vessel buyback program, this paper recommends that the yield should be reduced to, less than the intrinsic growth rate. Otherwise, the buyback program policy eventually fails regardless of the temporal effect of benefits. This paper further argues that technical policy tools such as fishing grounds, fishing seasons, size of fish and minimum size of meshes should be effectively utilized.