South Korea's retail industry is strengthening comprehensive partnerships with small and medium-sized suppliers, local farms, and franchise owners in line with the Lee Jae-myung administration's emphasis on shared growth. While costs may rise in the short term, companies expect long-term benefits including stable supply chains and enhanced competitiveness.
According to industry sources on the 12th, Emart Everyday, a supermarket chain, plans to expand sales of "ugly produce"—agricultural products that fail to meet size or color standards—this year. The retailer sold approximately 6.89 million tons of such produce last year alone. Items including apples, strawberries, sweet potatoes, and cabbage are currently offered at prices 20-40% below regular products.
Emart, the hypermarket chain, is helping small and medium enterprises expand overseas through its private brand "No Brand." Approximately 70% of No Brand products sold across some 20 countries including the United States and Japan come from SME manufacturers.
Lotte Mart held a "Vietnam Export Consultation" event earlier this month to help domestic food SMEs enter the Vietnamese market. The program provides customized consulting and local distribution network connections for 20 Korean food companies struggling with limited market information and sales channel expansion.
Lotte Mart also operates a "shared growth produce" project whenever farms face difficulties due to poor harvests. The initiative currently covers about 10 items including strawberries, Korean melons, and apples, with plans to add more this year. The retailer will also actively support fishing villages with smart tanks and eco-friendly fishing nets to boost production efficiency, aiming to improve seafood freshness through stronger partnerships.
Convenience store operators have rolled out successive partnership policies for franchise owners. CU is raising its annual "new product introduction subsidy"—paid based on new product adoption rates—from a maximum of 1.8 million won to 1.92 million won. The company also launched a "new product circulation subsidy" program this year.
GS25 increased its annual inventory disposal limit per store to an industry-leading 1.08 million won and introduced sales profit incentives based on differentiated product performance. The company also established welfare systems for franchise owners, including healthcare-linked services offering health management and psychological counseling.
Seven Eleven created a new "disposal support for new products" category this year to subsidize disposal costs and boost store competitiveness through new product sales. The retailer also raised inventory management support for refrigerated products from 1.2 million won to 1.26 million won.
Since November last year, Emart24 has allowed stores on the existing monthly fee model (1.6 million won) to switch mid-contract to a gross profit-sharing royalty structure, aiming to improve profitability at low-performing locations and ease owner burdens.
The retail industry's expanded shared growth strategies also align with government policy emphasizing cooperation between large corporations and SMEs. At a shared growth meeting the previous day, President Lee Jae-myung stressed that "creating a shared growth ecosystem is a highly efficient investment in cultivating capable partners and building teamwork."
"We can create a virtuous cycle that provides stable distribution channels for partners and farms while easing grocery price burdens for consumers," an industry official said. "We will build a sustainable retail ecosystem where partner companies, local farms, and consumers can grow together."