15 September 2025
Gov't announces plan to cut agricultural product distribution costs, shift wholesale transactions online
Korea JoongAng Daily - Daily News from Korea
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This article is by Jeong Jae-hong and read by an artificial voice.
The government has announced a plan to improve the distribution of agricultural products, aiming to cut distribution costs by 10 percent and shift half of wholesale transactions online by 2030.
The government is seeking to reduce the price volatility of key items such as napa cabbage and apples by 50 percent, enhance competition in wholesale markets, and push to lower commissions charged by wholesale corporations, according to the plans unveiled at the ministers' meeting on economic affairs held at the Government Complex Seoul on Monday.
Currently, distribution costs account for 49.2 percent of the retail price of agricultural products, with some items reaching as high as 60 to 70 percent of the total. In response to growing criticism that the 7 percent commission charged by wholesale corporations to producers is excessive, the government intends to implement a system where commissions are reduced if the corporations' operating profit margin exceeds a certain level.
Through revisions to the Act on Distribution and Price Stabilization of Agricultural and Fishery Products, the government also plans to create a public interest fund and introduce a price compensation system to support sellers in the event of sharp price drops.
To ease price volatility, the government will introduce fixed-price and private contract systems to supplement the auction-based trading model and make electronic delivery orders mandatory for key items.
The goal is to boost the share of online wholesale transactions from the current 6 percent to 50 percent by 2030. To that end, the government will abolish the requirement for an annual trade volume exceeding 2 billion won ($1.44 million) and establish a direct delivery system through online platforms.
To promote innovative production at the origin, the government will expand the number of smart agricultural product processing centers to 300 and establish 120 smart production complexes for fruits and greenhouse vegetables by 2030. A mobile app will also be rolled out to help consumers easily check price information.
While the government argues that the plan will ease the burden on both producers and consumers, experts say revisions to the Act on Distribution and Price Stabilization of Agricultural and Fishery Products, along with increased transparency, are essential. It also noted that the transition to online platforms may not be easy for participants who are accustomed to the existing transaction structure.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
The government has announced a plan to improve the distribution of agricultural products, aiming to cut distribution costs by 10 percent and shift half of wholesale transactions online by 2030.
The government is seeking to reduce the price volatility of key items such as napa cabbage and apples by 50 percent, enhance competition in wholesale markets, and push to lower commissions charged by wholesale corporations, according to the plans unveiled at the ministers' meeting on economic affairs held at the Government Complex Seoul on Monday.
Currently, distribution costs account for 49.2 percent of the retail price of agricultural products, with some items reaching as high as 60 to 70 percent of the total. In response to growing criticism that the 7 percent commission charged by wholesale corporations to producers is excessive, the government intends to implement a system where commissions are reduced if the corporations' operating profit margin exceeds a certain level.
Through revisions to the Act on Distribution and Price Stabilization of Agricultural and Fishery Products, the government also plans to create a public interest fund and introduce a price compensation system to support sellers in the event of sharp price drops.
To ease price volatility, the government will introduce fixed-price and private contract systems to supplement the auction-based trading model and make electronic delivery orders mandatory for key items.
The goal is to boost the share of online wholesale transactions from the current 6 percent to 50 percent by 2030. To that end, the government will abolish the requirement for an annual trade volume exceeding 2 billion won ($1.44 million) and establish a direct delivery system through online platforms.
To promote innovative production at the origin, the government will expand the number of smart agricultural product processing centers to 300 and establish 120 smart production complexes for fruits and greenhouse vegetables by 2030. A mobile app will also be rolled out to help consumers easily check price information.
While the government argues that the plan will ease the burden on both producers and consumers, experts say revisions to the Act on Distribution and Price Stabilization of Agricultural and Fishery Products, along with increased transparency, are essential. It also noted that the transition to online platforms may not be easy for participants who are accustomed to the existing transaction structure.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.