The Effects of Foreign Distributors on the Food Marketing System in Korea

The entry of major foreign distributors is significantly affecting the food marketing system in Korea. Because foreign distrubutors enter the Korean market mostly with discount formats, they contribute to the rapid development of discount stores, resulting in changes in retail structure on the way th the development of large-scale retailers. With the resulting increase in the number of stores operated by large-scale retailers, more fresh food items are shipped directly from shippers in producing areas to the retailers. In this marketing environment, domestic marketing agents, such as producers, shippers, and wholesalers, are trying to develop new practices to meet the needs of these large-scale retailers. In particular, local agricultural cooperatives are striving to play a major role in selling products to the large-scale retailers by strengthening cooperative marketing practices. In addition, local cooperatives have begun to collaborate with each other in order to gain a better positon in dealing with large-scale retailers.