Top-grade local beef cheaper online

Facing imminent competition from American beef due to the recent free trade agreement, sellers of premium hanwoo beef can trim prices by selling online.
One hanwoo provider signed a deal with an online shopping mall to sell the beef directly to consumers, cutting the price more than 50 percent.
Hanwoo, literally translated as “Korean cattle,” is a breed of cow and the priciest beef in the market. Early this year, the National Statistical Office reported that hanwoo beef was priced almost five times higher than imported beef.
Hanwoo Maeul, a farm in Jeongeup, North Jeolla Province, began selling its Cheongtowuchon brand of hanwoo yesterday on Internet Auction, a Korean online trading site owned by American giant eBay.
The sale is open to consumers and retail end users of the beef.
Compared to the same brand in department store groceries, the price of hanwoo on Internet Auction is about 70 percent cheaper. Compared to regular store prices, it is about half.
“This is a model for hanwoo farms that will face difficulties with U.S. beef imports,” said Choi Mun-seok, a senior executive at Internet Auction.
Koh Yoon-hong, president of Moguchon, a grilled beef restaurant chain that says it only serves hanwoo, said distributors make hanwoo more expensive than necessary.
“There is still an enormous price bubble in the restaurant industry because the beef price goes up in distribution,” he said.
“We can sell beef at a lower price by obtaining it directly from the farms.”

By Wohn Dong-hee Staff Writer [wohn@joongang.co.kr]