The subsidy for calf production was in place in 2000 to stabilize the domestic Hanwoo industry. This program has been amended several times to coordinate with domestic market situations. The most recent change in this program was made in February 2012. It becomes more difficult to take action because the number of domestically bred Hanwoo increased significantly. This study assumes no policy change in 2012. If the program had been put in action in 2012, it would have made a new equilibrium after a year. This study compares original equilibrium and hypothetic equilibrium using EDM in the 2013 domestic Hanwoo calf market. Results show that no policy change in 2012 leads to the increase of the number of calves and the decrease of calf prices. The welfare of farmers enrolled in the program is improved, whereas that of the other farmers not enrolled deteriorates.