NongHyup Distribution 'Hanaro Mart' Improves Distribution Structure... Contributes to Stabilizing Customer Perceived Prices

Nonghyup Distribution is an agricultural product distribution specialist company established in 1995 under the "Act on the Distribution and Price Stabilization of Agricultural and Fishery Products" to address the need for improving the domestic agricultural product distribution system and to resolve the issues of distribution contraction in preparation for the seismic changes that swept through the Korean agricultural product distribution market in the 1990s.

To improve the existing complex agricultural product distribution channels (producer-collector-wholesale corporation-intermediate wholesaler-retail store-consumer), Nonghyup Distribution contributed to stabilizing agricultural product prices by establishing direct transactions from production areas through the channel "producer-Nonghyup Distribution (Nonghyup Hanaro Mart)-consumer." This helped reduce the side effect where producers received low prices while consumers paid high prices.

Furthermore, Nonghyup Distribution contributed to stabilizing the national food prices with its low-profit structure. The sales profit margin, which is more than 10 percentage points lower than other distribution companies, is one of the important indicators reflecting the founding purpose of Nonghyup Distribution. In particular, through the "Salmannage" event last year, which utilized 22 billion KRW of its own discount funds, the company played a significant role as a specialized agricultural product distribution company in lowering the perceived consumer prices during the era of high interest rates and high inflation.