The primary objective of this study is to analyze supply and demand conditions for rice in South Korea under liberalization of its rice market and to evaluate the implications on the South Korean rice industry. This study found that Korea should liberalize its rice market together with Japan and Taiwan to minimize producers' welfare loss, rather than unilateral liberalization, in the case that it has to liberalize its rice market. If Korea unilaterally liberalizes its rice market, its rice industry would not be able to survive. If Korea, Japan, and Taiwan liberalize their rice markets together, the countries' rice industries would survive. Korea's rice production could decrease about 20 percent and imports would be 29 percent of its domestic consumption.