Near 10,000 Won Kim Bae-chu... How Do Large Marts Achieve 6,000 Won Range 'Open Run'?

Average Price of One Head of Baechu 9,680 Won... Approaching 10,000 Won
Sold at 6,000~7,000 Won Range in Large Marts
Some Marts Sold Out Due to Open Run
Bulk Purchases at Production Sites Plus Farmer Discounts

Amid soaring napa cabbage prices this summer due to heatwaves and late-season heat, major large-scale supermarkets are selling napa cabbage at prices lower than the market rate. This is thanks to pre-purchasing large quantities of napa cabbage and government-supported discounts, with some stores even selling out of napa cabbage by midday.

A large supermarket displaying a notice restricting the purchase of one head of napa cabbage per person. [Image source=Yonhap News]

According to the Agricultural and Fishery Food Distribution Information (KAMIS) from the Korea Agro-Fisheries & Food Trade Corporation (aT) on the 26th, the average retail price for one head of napa cabbage reached 9,680 KRW. This is 35.71% higher than last month (7,133 KRW) and 56.31% more expensive compared to the previous year (6,193 KRW). It is also 34.13% higher than the average price of 7,217 KRW. The price of one head of napa cabbage, which was in the mid-6,000 KRW range until early this month, surpassed 9,000 KRW during the Chuseok holiday period.

However, the three major large supermarkets are selling napa cabbage at prices up to 30% cheaper than the average retail price. As of this date, Emart sells one head of napa cabbage for 6,384 KRW when using Shinsegae Points. Homeplus sells it for 7,990 KRW, and Lotte Mart for 7,992 KRW. These prices are cheaper than those at major traditional markets or retail stores.

As supermarkets sell napa cabbage at lower prices, consumers seeking napa cabbage flocked to large supermarkets. On this day, some Emart stores reportedly experienced an "open run" phenomenon, where customers lined up at store opening times to purchase napa cabbage. Consequently, Emart limited the purchase quantity to three heads per person at some stores. However, Homeplus and Lotte Mart did not impose any purchase limits on napa cabbage.

At Homeplus, some stores sold out of their napa cabbage stock by midday. A Homeplus representative stated, "Compared to traditional markets, napa cabbage prices are about half, causing demand to concentrate at large supermarkets. Due to the very limited quantity available in the market, the stock is expected to be quickly sold out (by midday) upon store arrival."

The reason large supermarkets can sell napa cabbage about 30% cheaper than other sellers is that they have direct contracts with production areas to purchase napa cabbage in bulk. Emart, which offers the largest discount, pre-purchased all production volume from napa cabbage farms in semi-highland areas with less heat damage and more shade. Meanwhile, the late-season heat caused napa cabbage prices to surge, creating a ripple effect. Additionally, with a 20% agricultural product discount (Nonghal) provided by the Ministry of Agriculture, Food and Rural Affairs, the selling price of napa cabbage at large supermarkets is set below the average retail price.

High napa cabbage prices are expected to continue until mid to late October when autumn napa cabbage is fully harvested. This is due to challenging supply and demand conditions in production areas caused by heatwaves and drought. To lower the soaring napa cabbage prices, the government plans to import 16 tons of Chinese napa cabbage into the country on the 27th. The government also intends to monitor the supply situation in China and increase import volumes accordingly.

Supply of substitute vegetables for napa cabbage will also be increased. Homeplus plans to additionally procure items that can replace napa cabbage, such as baby napa cabbage and spring cabbage, and will expand discount events for these items.