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Analysis of Anti-competitive perspective on the Law on Distribution and Price Stabilization of Agricultural Products

  • Journal of Regulation Studies
  • 2017, 26(1), pp.151-186
  • Publisher : 한국규제학회
  • Research Area : Social Science > Public Administration

HYUKWOO LEE 1,  JINGUK KIM 1

1배재대학교

Accredited

ABSTRACT

The agricultural law is one of the typical competition restrictive regulation. Such a highly restrictive regulation would distort the operation of the market, which would also benefit some other stakeholders, but also to other market entities, i.e. producers as well as consumers. Furthermore, in the long run, the dynamic nature of competition will dilute the competitiveness of new technologies and innovations, resulting in a deterioration in the size and development of the entire market. As a result, it was found that the Korean agricultural products wholesale market structured by the agricultural law had similar side effects. Regulations have created zones for wholesale market corporations and middle-class buyers, and the quality of agricultural and marine products is deteriorating. The creation of new distribution service models is being suppressed, and wholesale transactions related to illegal or transgressive transactions are also occurring. In addition, administrative costs such as wholesale market management are being triggered. Therefore, by examining the Law on Distribution and Price Stabilization of Agricultural Products from the viewpoint of competition policy, it can be concluded that urgent improvement of the structure of the competition restriction is necessary. In other words, considering the wholesale market corporations that prohibit entry into the market itself, the price structure such as the structure of intermediate markets, the price of commissions, and various business activity regulations and the side effects caused by the regulations, it is necessary to establish a system. The provision of more market opportunities for the underprivileged in the disadvantaged markets of the agricultural distribution market, and the improvement in the welfare of consumers who ultimately consume agricultural products.

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