South Korea announced plans on Thursday to compensate farmers and others in the country's dwindling dog meat industry before a formal ban goes effect in 2027, a move that is drawing opposition from both farmers and animal rights activists.

South Korea's parliament passed a landmark bill in January that will ban slaughtering, breeding or selling dog meat for human consumption after a three-year grace period. It will be punishable by 2-3 years in prison.

The Agriculture Ministry said that farmers would receive compensation starting from 225,000 won (USD 170), and rising up to 600,000 won (USD 450) per dog if they agree to shut down their business early.

It's likely that farmers won't accept the offer, as they earlier called for two million won (USD 1,505) per dog. They've said the ban infringes on their freedom and will aggravate their economic difficulties. In a statement Tuesday, an association of dog farmers called for the law to be amended to extend the grace period and add appropriate compensation plans.

Sangkyung Lee, a campaign manager at the Korean office of the anti-animal cruelty group Humane Society International, called the South Korean announcement “an important milestone in this historic ban that will see the ban through to completion and end our country's dog meat era for good”.

But Lee said his office is “disappointed” at the South Korean plan because it would pay farmers based on the number of dogs they have, "potentially increasing dog breeding to get more money from the scheme and more puppies being born into suffering”, Lee said.

Dog meat consumption is a centuries-old practice on the Korean Peninsula. Dog meat are eaten in China, Vietnam, Indonesia and some African countries. But South Korea's dog meat industry has drawn more attention because of the country's reputation as a cultural and economic powerhouse. It's also the only nation with industrial-scale dog farms.

South Korea's anti-dog meat campaign received a big boost from the country's first lady, Kim Keon Hee, who repeatedly expressed her support for a prohibition. She was subjected to withering criticism and crude insults during demonstrations by farmers.

Surveys have found that that around one in three South Koreans opposes the ban, though most people now don't eat dog meat and favour a ban.

Vice Agriculture Minster Park Beomsu told reporters that government studies found that about 466,000 dogs are currently being raised for food across South Korea. He said officials will try to convince farmers to voluntarily phase out dog breeding ahead of the ban.

After the ban comes into force, Park said, the government plans to facilitate adoptions for the remaining dogs or move them to care facilities rather than euthanise them.

The agriculture ministry said butchers will also be compensated, while local authorities will be responsible for dismantling dog farms and slaughterhouses. Former farmers and butchers will also get low-interests loans if they pivot to other agricultural businesses.

The ministry said authorities will also offer financial assistance to traders and restaurant owners to shut down their businesses and find new jobs.