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New Framework of Seafood Distribution to Benefit Both Producers and Consumers
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2025.11.18.
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| New Framework of Seafood Distribution to Benefit Both Producers and Consumers |
| - Reforming the fundamental structure to reduce unnecessary distribution costs and stabilize prices - Implementing a transparent, efficient seafood distribution system through digital and smart innovation |
The Ministry of Oceans and Fisheries (MOF; Minister Chun Jae-soo) announced on Tuesday, November 4 Measures to Improve the Distribution Structure of Fishery Products.
The seafood industry has long required fundamental structural improvements due to complex distribution channels including auctions and wholesale markets that products pass through after being caught, leading to high costs and challenges in preserving freshness. MOF recently gathered field feedback that the current system alone has limitations in structural improvement amid changes in climate and consumption environments, and developed distribution innovation measures that both producers and consumers can feel.
Built on the vision of "establishing a trust-based distribution system that benefits both producers and consumers," these new measures set key targets: ▲ 10% reduction in the distribution cost ratio, and ▲ 25% mitigation of price volatility for major fisheries products. It outlines four key strategic directions and eight specific programs to achieve these goals.
<Reducing distribution costs by streamlining distribution channels... Modernization of old wholesale markets>
ㅇ The plan will mechanize the existing 6-stage distribution route to increase efficiency and simplify the distribution route into 4 channels by expanding the Fisheries Products Processing & Marketing Center (FPC) and Fisheries products Distribution Center (FDC).
* FPC: Develops products and brands reflecting the characteristics of the point of production / FDC: Promotes securing new sales channels, etc.
ㅇ The plan will modernize aging wholesale fish markets at the point of production into low-temperature and eco-friendly facilities to maintain the quality and hygiene of seafood products. It will develop complex spaces such as cafes and restaurants by leveraging their coastal location to attract new investment.
<Significant expansion of the range of products available on online wholesale markets and lowering entry barriers for sellers>
The number of seafood products available for trading on the online wholesale market will be significantly expanded from 60 to 134—more than doubling—and entry barriers will be lowered by easing the seller registration requirements.
ㅇThe plan will also link the fisheries cooperative auction market and the credit system (9 locations by 2028) to increase convenience of transactions and develop a grading technology using artificial intelligence (AI) so that consumers can easily check quality online.
<Promoting direct transactions between producers and consumers through online sales, utilizing information and communication technology (ICT)>
ㅇ The plan will introduce an online sales (electronic auction) utilizing ICT to enable fishermen to sell their catch on their boats using mobile devices upon returning to port after fishing.
ㅇ Moreover, it will develop technology that can collect video footage at each distribution stage for popular fish species such as mackerel and hairtail, automatically record them, and convert the collected information into big data to track distribution routes.
<Direct sales stores specializing in fresh seafood at the point of consumption>
ㅇ The plan will establish direct sales stores specializing in seafood in metropolitan areas to improve accessibility to enable consumers to purchase seafood directly from the producing region.
ㅇ To revitalize the existing wholesale markets, the plan will implement a system wherein seafood products will be delivered from a wholesale market to restaurants in real time and install simple processing and distribution facilities in the market to sell seafood directly.
<Establishing a stable production base and reducing price volatility by fostering smart farming>
ㅇ The plan will strengthen support for the conversion of aquaculture varieties and relocation of aquaculture sites due to climate change and create conditions for stable price management by supporting smart and automated seed facilities (30 sites) and establishing smart aquaculture clusters, etc.
ㅇ It will also shift the paradigm from post-disaster recovery to damage prevention to ease the upward pressure on prices caused by mass mortality due to high temperatures and other factors.
<Strengthening market responsiveness by developing an AI-based supply and demand forecasting model>
ㅇ The plan will develop a supply and demand forecasting model for major seafood products and upgrade it into an AI-based comprehensive forecasting model that links production, supply, and demand to respond to supply and demand crises proactively.
ㅇ It will also improve the distribution structure continuously to suit consumer preferences better by establishing a seafood-specializing consumption database.
<Preventing sharp price fluctuation by systematically managing the wholesale market volume>
ㅇ The plan will standardize product and transaction data for each wholesale market and apply electronic invoice first for wholesale markets (Garak Market in 2027). It will prevent sharp price fluctuations by maintaining the quantity of goods for sale at an appropriate level through an electronic delivery system.
ㅇ Moreover, it will ease the dependence on auctions and encourage stable price formation by expanding support for settlement fund financing and activating fixed-price and negotiated sales.
<Increasing consumer trust through transparent management from fishing to distribution>
ㅇThe plan will upgrade the Badaro system of the National Federation of Fisheries Cooperatives by establishing a real-time transmission system for online sales data to ensure transparency from the distribution stage and laying the foundation for introducing and expanding the catch certification system through the enactment of the Sustainable Coastal and Inshore Fisheries Development Act.
ㅇ It will provide more distribution information to consumers by amending subordinate statutes of the Fishery Products Distribution Management and Support Act to expand participation in the seafood traceability system of large distributors and aquaculture farms.
“These measures are the first step toward changing the future of seafood distribution. We will faithfully implement this plan to improve the seafood distribution structure to ensure reasonable prices and create a trustworthy distribution environment,” Minister of Oceans and Fisheries Chun Jae-soo said.
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