Despite many common features in agricultural sector, Korea and Japan have passed through quite different paths of structural adjustment. An important consequence of the different structural adjustment paths is full-time vs. part-time based farming system. As far as policy reforms are concerned, full-time based Korean agriculture has much more barriers to smooth policy reform mainly due to the income-related problems. With high level of off-farm income, farm household income problem is not a great concern to Japan. In addition to the income problem, other barriers to smooth policy reform in Korea are pointed out and discussed.