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Trends of Cooperatives Establishment in Rural Korea and Improvement of Legislation In urban as well as rural areas, there is a vigorous movement to establish cooperatives which are based on the Framework Act on Cooperatives. Eight months after the enforcement of the law, more than 600 cooperatives reported their articles of association to the competent Mayor/Governor in rural areas. Considering the population distribution in urban and rural areas, this is not a small number. Though recently established rural cooperatives are acting throughout diverse business sectors, cooperatives in the agricultural sector, which engage in agricultural production, processing and sales, occupy the largest portion of all the rural cooperatives. There are two types of corporation that are allowed to engage in agricultural production, processing and sales by the laws. They are Farm Corporations and Agricultural Corporations. Now in rural Korea, farmers tend to establish cooperatives by the Framework Act on Cooperatives which are in the same business sector with Farm Corporations or Agricultural Corporations. There are many needs to improve legislation regarding cooperatives. Above all, the laws about Farm Corporations and Agricultural Corporations are in urgent need of improvement for the emerging rural cooperatives to be treated fairly. Researchers: Jeong-Seop Kim, Mee-Bok Kim E-mail address: jskkjs@krei.re.kr