Green Options

Korea’s Daewoo has just completed a deal to lease an area about half the size of Belgium in Madagascar for food production. The most surprising part of this lease is that the initial cost to Daewoo is nothing. That’s right, zip, nada, zilch.

Why is a South Korean company leasing so much land on another continent?

According to a few under-the-radar reports, Korea’s industrial conglomerate Daewoo has just completed a deal with Madagascar for a 99 year lease of an area half the size of Belgium (about 1.3 million hectares). While complete terms of the lease are not yet available, the total price is: NOTHING.

The initial plan is to plant maize and palm oil for export to South Korea. The benefit to Madagascar of losing a little over half of their arable land would be the anticipated employment opportunities for farmers and other locals.

According to a Daewoo spokesperson:

We want to plant corn there to ensure our food security. Food can be a weapon in this world,” said Hong Jong-wan, a manager at Daewoo. “We can either export the harvests to other countries or ship them back to Korea in case of a food crisis.