Iksan City Launches Nation's First "Zero-Fee" Local Food Direct Store

Full Refund of Fees for Small-Scale Farms
Aiming to Reduce Income Disparities

Iksan City in Jeonbuk Province will introduce the "Public Local Food Model," the first of its kind among local governments nationwide, which exempts or refunds farmers' fees starting this year. Provided by Iksan City, Jeonbuk Province

Iksan City in Jeonbuk Province has declared a major transformation of its local food system by introducing the "Public Local Food Model," the first of its kind among local governments nationwide, which exempts or refunds farmers' fees.

On January 9, Iksan City announced that starting this year, it will completely overhaul the fee system at the "Dairom Local Food Direct Store (Mohyeon Branch)" and implement a "refund-based zero-fee model" that exempts or refunds fees to farmers based on their sales volume.

Previously, a flat 10% fee was imposed on all farmers regardless of their sales volume. However, moving forward, a quarterly refund system will be applied based on the previous year's sales, so that smaller and less-established farms can benefit from reduced fee burdens.

Specifically, under the new refund criteria: ▲ farms with less than 5 million won in sales in the previous year will receive a full refund of the 10% fee; ▲ those with sales between 5 million and less than 10 million won will receive a 5% refund; ▲ and those with sales between 10 million and less than 30 million won will receive a 2% refund.

The city expects this policy to help alleviate income polarization among local farmers and serve as a catalyst for increasing the participation of small-scale farms in the direct store. The reduced fees will directly translate into higher net income for farmers, contributing to greater management stability and increased capacity for reinvestment in farming operations.

Since its opening in 2019, the Iksan Dairom Local Food Direct Store has grown into a key hub of the Iksan Food Plan. However, the uniform fee system has been criticized as a barrier to entry for smaller farms, and concerns about widening income disparities among farmers have been consistently raised.

An official from Iksan City stated, "This fee reform will mark an important turning point in realizing our administrative philosophy that 'production is the responsibility of farmers, while distribution and sales are the responsibility of the city.' We will further strengthen our role as a public platform that protects farmers' livelihoods and provides healthy food to citizens."