Ⅰ. Since 1962, the Korean economy has expanded quickly
under the impetus of four Economic Development Plans which
have placed emphasis on the development of exports and
agricultural and fisheries production. The rapid growth in
industrial development, mainly for export, has been incredible.
However, it has also led to rapid urbanization, not least of all in
metropolitan Seoul and its adjoining areas where population
increased form 7.4 million in 1974 to almost 8.4 million in 1977.
Ⅱ. This move to the cities has meant an increased demand
for food which has been met by increasing both agricultural
production and the proportion of total production marketed.
During the Fourth Plan period(1977-1981), the average annual
growth rate of agriculture is predicted to rise by 4.0%
Ⅲ. Almost 50% of fruit and vegetables marketed are
consumed in Seoul, and Seoul consumption of these commodities
is expected to expand by 100% between 1976 and 1986, from
858,000 tons to 1,716,000 tons. In the meantime, consumption of
fishery products is expected to increase by 82%, form 257,500
tons to 468,000 tons product weight basis, and that of beef and
pork by 140%, from 51,000 tons to 123,000 tons.
A feature of this is the projected huge increase in
consumption in South Seoul where very few wholesale markets
have been established. The effect of this increasing Pressure on
the marketing system is a breakdown on the traditional
marketing system, and inefficiency in the supply and distribution
of perishable commodities. Furthermore, existing markets and
wholesale operation are mostly too small to achieve economies of
scale. By virtue of city growth, many markets such as that at
Yongsan are not located on congested but valuable city sites,
and need to be removed to the outskirts or the city.
Ⅳ. The project outlined in this reports is designed to
alleviate some of the above market deficiencies by establishing a
wholesale marketing complex for perishable commodities in
South Seoul, about 15 km form the city centre, and close th the
expressway. As a first phase project, it would include a
1,500ton/day fruit and vegetable market with a 150 ton/day
traditional market annex for small ungraded lots, a 600 ton/day
fish market, a 297 ton/day meat market, and a 1,780 ton/day
central grain market.
Total project costs are estimated at ￦76,066 million
excluding price contingencies. Some ￦75,311 million would be
for direct investment and ￦1,028 million for preparation of the
Master Marketing Plan. An amount of ￦755 million would be
for working capital. The project also includes finance for the
overseas training of the new market manager. The financial rate
of return for the project is more than 30%, and the economic
rate of return is satisfactorily high at 11.4%