[2023 Economic Policy] Launch of 'Nongsanmul Online Exchange' Scheduled for Late Next Year

Establishment of Agricultural Products Online Exchange... Launch Likely by December Next Year
Promotion of 'Agricultural Food Exchange Act' Enactment... Initial Items Limited to Cheonggwa

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Lee Jun-hyung] The government is set to establish an online agricultural products exchange as part of its distribution digital transformation (DX) policy. As part of inflation measures, the government will also strengthen its supply and demand control functions for agricultural, livestock, and fishery products.

On the 21st, the government announced the '2023 Economic Policy Direction' containing these details. The government plans to launch the online agricultural products exchange around December next year. Construction of the online exchange will begin as early as the beginning of next year. Additionally, to establish the legal basis for the installation and operation of the online exchange, the government intends to promote the enactment of the 'Agricultural and Food Exchange Act' in the second half of next year.

However, initially, the items available for trading on the online exchange will be limited to fresh fruits and vegetables. This is because the government is conducting a pilot project centered on fresh fruits and vegetables, which have been standardized and regulated, to prevent confusion following the launch of the online exchange. A government official stated, "Under current laws, there are limitations for anyone to trade agricultural products online, so legislation is necessary," adding, "The agricultural products exchange will first launch targeting fresh fruits and vegetables, then gradually expand the range of items."

The government's creation of the online agricultural products exchange aims to advance the distribution system. This is also why the government has announced plans to newly establish 10 smart agricultural product production area distribution centers following the online exchange. Furthermore, the government will increase the provision of online information related to agricultural products and add rice and sesame to the list of imported agricultural products subject to distribution history reporting, which currently includes 18 items.

To stabilize prices, the government will also strengthen supply and demand control functions for agricultural, livestock, and fishery products. Accordingly, the government plans to build a foundation for autonomous supply and demand management centered on producers of agricultural, livestock, and fishery products, including fostering integrated production and distribution organizations. The economic policy direction also includes measures to simplify import procedures for emergency agricultural product imports and to pre-identify and secure state-owned trade import sources for major agricultural, livestock, and fishery products to respond promptly to supply instability.

The emergency price stabilization budget for stockpiling agricultural and livestock products will also be expanded. However, the government will review the feasibility every three years to ensure smooth stockpiling of key agricultural, livestock, and fishery products. The necessity of tariff adjustment items will be re-evaluated during next year to decide on extension.

Support for living expenses for vulnerable groups, including food, will also increase. The government plans to expand the target areas for the agricultural and food voucher program for low-income groups by conducting a preliminary feasibility study and then amending the 'Framework Act on Agriculture, Fisheries and Food' to establish a legal basis. To reduce the burden on vulnerable groups due to electricity and gas price increases next year, the government will also push to raise the energy voucher support rate. Additionally, next year, about 3.5 million households, including people with disabilities and basic livelihood security recipients, are expected to receive welfare discounts on electricity bills from Korea Electric Power Corporation (KEPCO).