Korean government has been enforced direct payment for environment friendly livestock farming on a trial basis in 2004 to 2005. The objectives of this study are to analyze pilot project of direct payment for environmentally friendly livestock farming (EFLF) and to suggest for improving the formal policy program to establish environmentally friendly livestock operation system. The organization of this study is summarized as follows: Based on an evaluation of the pilot project, several suggestions are for establishing formal policy program of direct payment for EFLF. The most important thing is to develop the policy program through the step by step approach. Under the framework of the blueprint, in order to expand the direct payment program we need to be introduced the diverse incentive scheme, clear clarification of policy objectives and goals, increases of unit payment, and establishment of monitoring and evaluating project implementation in the short and midium run aspects. In the long run perspective on establishing direct payment scheme for EFLF, several supplemental policy programs such as accreditation system for developing organic livestock operations, mane approach to expanding direct payment, and regionally based nutrient balance system will be positively reviewed and systematically developed.