Journal of Forest and Environmental Science

Institute of Forest Science, kangwon National University (강원대학교 산림과학연구소)
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Combining Timber Production and Wood Processing for Increasing Forestry Income: A Case Study of 6th Industrialization in Korean Forestry

  • Won, Hyun Kyu (Division of Forest Industry Research, National Institute of Forest Science) ;
  • Jeon, Hyon Sun (Division of Forest Industry Research, National Institute of Forest Science) ;
  • Han, Hee (Division of Forest Industry Research, National Institute of Forest Science) ;
  • Lee, Seung Jung (Division of Forest Industry Research, National Institute of Forest Science) ;
  • Jung, Byung Heon (Division of Forest Industry Research, National Institute of Forest Science)
  • Received : 2017.10.30
  • Accepted : 2017.11.23
  • Published : 2017.11.30
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Abstract

This study was aimed to analyze the increased forestry incomes by combining timber production and wood processing, which is one of 6th industrialization types in Korean forestry. The selected household has been engaged in forestry for two generations and they produce timber and associated wood products in their own facility. The wood products include dimension lumber, interior wood material, cutting board, and cube chips, the household also utilize logging and sawmill residues as well as seed and seedlings as by-products. Incomes and expenses that have been incurred on individual processes of the sequential timber production and wood processing were surveyed, and we analyzed the economic outcomes of entire business. The results of this study indicate that the gross income of the household is 122.3 million Korean won and the net income is 93.6 million Korean won. The net income of the household is approximately 2.8 times higher than the average net income of whole households in the forestry of Korea in 2016, which is approximately 4.3 times higher than that of households that have been particularly engaged in timber production over the country. We found that the 6th industrialization by combining the two sequential processes creates approximately 3.2 times as much added value compared to the case relying on timber production only.

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