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The purpose of this paper was to measure technical efficiencies and scale efficiencies of Korean seed industry by DEA method, and to identify the factors affecting the efficiencies by Tobit regression model. Survey data of 50 seed companies nationwide were applied for the analysis. The average score of overall technical efficiency for the surveyed companies in 2012 was 0.44, which is decomposed into pure technical efficiency 0.68 and scale efficiency 0.63. A majority of the seed companies exhibited at least one form of inefficiency except a few companies in optimal scale. It was also shown the most companies were operating in the stage of increasing returns to scale, which implies Korean seed companies are mainly in smaller scale than optimal. Additional results suggest that the Center for Private Seed Companies, which will be established at Gimje in 2015, plays an important role to make domestic seed companies improve their scale efficiency as well as pure technical efficiency by way of enlarging their size and co-using the high technology in the Center.
