A real options approach is used to analyze the entry and exit thresholds of apple production in Korean agriculture. The real options model is set up for simultaneous decision making to determine the entry and exit thresholds. For the analysis, some farmers who had experiences in apple production project conducted by the Rural Development Administration or who were engaged in apple production in Kyungbuk province were surveyed. The results show that the entry threshold is higher than the average apple price farmers are receiving from the market and the exit threshold is very low so that the apple farmers once invested are not willing to leave apple production. The sensitivity analysis shows that each parameter used in the analysis affects the entry and exit thresholds and operating cost and investment cost among parameters used may be chosen as policy instruments to facilitate or delay investment in apple production.