The performance management and competitive framework for agricultural wholesale market corporations and market wholesalers will be strengthened. The government has defined the bottom 10% of evaluations as 'underperforming evaluations' and has specified criteria for designation cancellation. Additionally, it has established guidelines and procedures for recommending adjustments to commission rates to protect the rights of producers and consumers.
On September 22, the Ministry of Agriculture, Food and Rural Affairs announced the completion of amendments to subordinate regulations following the revision of the Agricultural and Fishery Products Distribution and Price Stabilization Act. The ministry aims to promote competition among distribution entities within wholesale markets and enhance the public nature of public wholesale markets through these amendments.
First, the qualifications and scale of dedicated personnel that wholesale market corporations must operate for fixed-price and negotiated sales have been defined. This dedicated personnel must include at least one auctioneer and consist of individuals with certain qualifications and experience, such as auctioneers and agricultural product quality managers.
The scale of personnel will vary based on the annual total transaction volume of the wholesale market corporation. If the transaction volume is less than 100,000 tons, at least one person is required; for 100,000 to 200,000 tons, at least three; and for over 200,000 tons, at least six must be employed. However, the standards can be relaxed by up to half, considering the transaction volume of each corporation.
A procedure for adjusting commission rates has also been established. The Minister of Agriculture, Food and Rural Affairs or the Minister of Oceans and Fisheries can recommend adjustments to commission rates if the average operating profit margin of the wholesale market corporation or market wholesaler for the current year exceeds a certain level compared to the average profit margin over the past five years.
Adjustments can also be recommended if deemed necessary to protect the rights of producers and consumers, provided they do not cause significant disruption to management. However, the government must go through prior notification and consultation procedures before making actual recommendations.
Specific triggering conditions and the scope of adjustment requests will be established and announced in future notifications.
A new procedure has also been created for disputing evaluation results for wholesale market corporations and market wholesalers. Parties can file an objection within 30 days of receiving notification of the evaluation results.
The criteria for designation cancellation have also been specified. According to the Agricultural and Fishery Products Distribution and Price Stabilization Act, the government defines 'underperforming evaluations' as those in the bottom 10% of evaluations. Consequently, wholesale market corporations or market wholesalers that meet this criterion may be subject to designation cancellation.
Seo Jun-han, Director of Distribution and Consumer Policy at the Ministry of Agriculture, Food and Rural Affairs, stated, "The amendment of the subordinate regulations to the Agricultural and Fishery Products Distribution and Price Stabilization Act is significant as it establishes a legal basis for promoting competition among distribution entities within wholesale markets and enhancing public interest. The government will strive to strengthen the public role of public wholesale markets and foster a distribution environment that satisfies both producers and consumers through healthy competition."
* This article has been translated by AI.
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