Korea’s New Law Boosts Online Wholesale Trade for Agricultural & Fisheries Products

Seoul, South Korea – A significant shift in South Korea’s agricultural and marine product distribution system is underway following the passage of the “Act on Promoting Online Wholesale Transactions of Agricultural, Forestry, and Marine Products.” The legislation, approved by the National Assembly on February 12, 2026, aims to modernize the country’s agricultural trade practices by fostering the growth of online wholesale markets. This move is expected to reduce distribution costs, increase income for farmers and fishermen, and stabilize prices for consumers.

For decades, South Korea’s agricultural and marine product transactions have largely relied on traditional offline wholesale markets. While these markets have served a purpose, they’ve been criticized for inefficiencies, limited transparency, and an inability to adapt to the rapidly evolving digital landscape. The new law seeks to address these shortcomings by providing a legal framework to encourage and regulate online wholesale trade, bringing the sector in line with the broader digital transformation sweeping across the global economy. The legislation comes after growing recognition that the COVID-19 pandemic accelerated the shift towards online consumption, particularly in the food and beverage sector, leaving traditional B2B agricultural trading behind.

The Need for Digital Transformation in South Korean Agriculture

The impetus for this legislation stems from a growing recognition of the need to modernize South Korea’s agricultural sector. According to a report by the Ministry of Agriculture, Food and Rural Affairs, online sales of agricultural products have surged in recent years, but the B2B segment – transactions between businesses – has lagged significantly. The Act on Promoting Online Wholesale Transactions of Agricultural, Forestry, and Marine Products directly addresses this disparity, aiming to level the playing field and enable farmers and fishermen to benefit from the efficiencies of digital commerce.

Currently, the public wholesale markets, while still vital, have struggled to adapt to the digital age. They operate under traditional practices that haven’t fully embraced the benefits of online platforms and data-driven decision-making. This has put them at a competitive disadvantage compared to newer, more agile distribution channels. The new law is intended to bridge this gap, allowing public wholesale markets to integrate digital technologies and compete effectively in the modern marketplace.

Key Provisions of the New Legislation

The core objective of the Act, as outlined in its Article 1, is to enhance the efficiency of agricultural and marine product distribution, protect the interests of both producers and consumers, and contribute to the overall development of the national economy. The legislation establishes a legal basis for promoting online wholesale transactions, which will likely involve the development of standardized online platforms, secure payment systems, and transparent trading practices.

Specifically, the law focuses on several key areas:

• Establishing a Legal Framework: The Act provides a clear legal foundation for online wholesale transactions, addressing issues such as contract validity, dispute resolution, and data security.
• Promoting Platform Development: It encourages the development and adoption of online platforms specifically designed for agricultural and marine product wholesale trade.
• Enhancing Transparency: The law aims to increase transparency in pricing and trading practices, providing both buyers and sellers with access to real-time market information.
• Reducing Distribution Costs: By streamlining the trading process and eliminating intermediaries, the legislation seeks to lower distribution costs, benefiting both producers and consumers.
• Supporting Farmer and Fisherman Income: Increased efficiency and access to wider markets are expected to boost income for farmers and fishermen.

Impact on Stakeholders

The passage of this law is expected to have a wide-ranging impact on various stakeholders within the South Korean agricultural and marine product ecosystem. Farmers and fishermen stand to benefit from increased market access and potentially higher prices for their goods. Wholesale market operators will need to adapt to the new digital landscape, investing in technology and infrastructure to remain competitive. Consumers could see more stable prices and a wider variety of products available online.

The law as well addresses the role of public wholesale markets. It aims to help these markets transition from traditional, offline operations to more modern, digitally-enabled platforms. This transition will require significant investment and a willingness to embrace new technologies, but It’s seen as crucial for the long-term viability of these markets. The National Assembly’s passage of the bill on February 19th, as reported by KBS News, signals a strong commitment to supporting this transition.

Farmers and Fishermen

The new law offers farmers and fishermen the potential to bypass traditional intermediaries and sell their products directly to wholesale buyers through online platforms. This could lead to increased profits and greater control over their businesses.

Wholesale Market Operators

Wholesale market operators will need to invest in digital infrastructure and develop online platforms to compete in the new landscape. This may require significant upfront costs, but it is seen as essential for their long-term survival.

Consumers

Consumers could benefit from more stable prices, a wider variety of products, and increased convenience through online purchasing options.

Legislative Process and Future Outlook

The “Act on Promoting Online Wholesale Transactions of Agricultural, Forestry, and Marine Products” was initially proposed by Representative Im Mi-ae and 15 co-sponsors on November 20, 2024, as bill number 2205710. It underwent review and revisions within the Agricultural, Food, Rural Affairs, Oceans and Fisheries Committee of the National Assembly before being passed on February 12, 2026. The bill’s passage represents a significant step towards modernizing South Korea’s agricultural sector and embracing the opportunities presented by the digital economy.

Looking ahead, the implementation of this law will be crucial. The government will need to develop detailed regulations and guidelines to ensure a smooth transition to online wholesale trading. This will involve addressing issues such as data security, platform interoperability, and consumer protection. The Ministry of Agriculture, Food and Rural Affairs is expected to play a leading role in this process, working closely with industry stakeholders to develop and implement effective policies.

The success of this legislation will depend on the willingness of all stakeholders to embrace change and adapt to the new digital landscape. While challenges undoubtedly lie ahead, the potential benefits – increased efficiency, lower costs, and greater prosperity for farmers, fishermen, and consumers – are significant. The next key step will be the promulgation of implementing regulations, expected by June 2026, according to officials at the Ministry of Agriculture, Food and Rural Affairs.

As South Korea continues to navigate the complexities of the 21st-century global economy, this legislation represents a bold and forward-thinking approach to modernizing a vital sector and ensuring its long-term sustainability. The move is likely to be watched closely by other countries seeking to leverage digital technologies to improve their own agricultural and marine product distribution systems.

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