The quantity of imported beef has increased since import liberalization in 2001 and continued agreements on FTAs. To obtain competitiveness in domestic Hanwoo industry, the industry has tried to make a high-quality beef and Hanwoo meat has a high price premium compared with imported beef or domestic Yukwoo as a result. Therefore there exists always economic incentive for non-Hanwoo meat to be sold as Hanwoo meat. Several research data supports this inference. This paper calculates the economic welfare loss on the domestic Hanwoo breeding farms caused by violating labelling originality using a simulation model. To estimate the welfare loss, this paper uses an EDM model based on various scenarios which assume different values on several key variables. The simulation results show that the welfare loss of the Hanwoo breeding farms varies from many billions wons at least to more than one trillion wons at maximum. We have to make an effort to eradicate the violating labelling originality to develop domestic Hanwoo industry.

• 전상곤 | Sang-Gon Jeon Corresponding author