KKMC, which packs and distributes Korean-grown Zespri kiwifruit, faces parliamentary probe following farmer allegations over high disposal rates
KKMC Agricultural Corporation – one of Zespri’s distributors in Korea and a leading packer of licensed domestically-grown Zespri kiwifruit – is the subject of allegations of improper disposal and market distribution of substandard Jeju-grown kiwifruit.
The allegations were raised last week during the National Assembly’s comprehensive parliamentary audit of the Ministry of Agriculture, Food and Rural Affairs and its affiliated agencies.
According to report from Korea’s national broadcaster, KBS, almost half of Jeju-grown kiwifruit is now contracted to Zespri, with fruit graded and packed by three domestic packhouses.
Due to a shortage of sorting and packing facilities in Jeju, around a quarter of kiwifruit produced in Jeju is handled by KKMC, which is based in Haenam, Jeonnam, KBS Jeju reported. Unlike the other two domestic packers, KKMC is also a distributor-marketer of Zespri kiwifruit and is licensed to sell the brand nationally.
According to KBS, farmers are questioning the amount of discarded (unmarketable) produce reported by KKMC. Last season, KKMC’s disposal rate was around 14 per cent, almost three times higher than the 3-5 per cent disposal rate recorded by the other two packers in the Jeju region.
Farmers are alleging that a large volume of produce was discarded despite no real issues with the kiwifruit quality.
“It was truly absurd that they [KKMC] disposed of about 20-something percent of the produce last year like this,” a Jeju kiwifruit grower told KBS Jeju. “KKMC is the only one among the three corporations that also engages in distribution. Since they hold the rights to sell Zespri products, I believe they are fully capable of diverting the produce.”
Disparity in disposal records
Discrepancies have also been detected in the waste disposal records, which were highlighted during the parliamentary audit by national assembly member Moon Dae-rim, whose constituency is Jeju.
KKMC’s records show that it processed 560 tonnes of waste fruit between October 2025 and the end of February 2026. However, 135 tonnes – or about 24 per cent – could not be found in the Korea Environment Corporation’s weighing records for its processing plant.
Moon also confirmed that GPS location data on the transport vehicles and parts of the video footage of the produce entering the processing plant were also omitted.
Moon raised allegations that KKMC had distributed the substandard kiwifruit through intermediaries while farmers were told they had been destroyed.
“We have received testimony that a middleman purchased 180 tonnes from KKMC at W1,250 per kg. Non-marketable goods are typically processed at W650, so the fact they received W1,250 from KKMC raises suspicions they distributed the goods through an intermediary while claiming they would dispose of them as non-marketable,” KBS quoted Moon as saying.
KKMC reportedly received W8.3bn (US$6.3mn) in government policy funds over the past five years through interest subsidy and loan programmes. Its largest investor was identified during the parliamentary audit as Jeong Woon-cheon, a former minister of agriculture under the Lee Myung-bak administration. Moon flagged these points and said they underlined the need for the Ministry of Agriculture, Food and Rural Affairs to “investigate the facts strictly and transparently”.
Agriculture minister Song Mi-ryung promised to verify the facts and take immediate action.
Zespri investigating situation
A Zespri spokesperson told Fruitnet that the company was aware of the allegations and investigating the circumstances with a view to taking appropriate action.
“We’re aware of recent concerns in Korea regarding the performance of a post-harvest provider,” said the spokesperson.
“We have high standards for all our supply chain partners, with clear requirements for the handling, grading and management of fruit. We expect these standards to be met and take any concern that these may not have been seriously.
“We’re working through a process with relevant parties including the post-harvest provider to better understand the issue.”
KKMC is one of four Zespri distributors in Korea. It specialises in sales and distribution of kiwifruit and sweet potatoes, marketing imported and domestically grown kiwifruit nationwide to large retailers such as E-Mart, Homeplus, Lotte Mart, E-Land and Mega Mart as well as department stores like Shinsegae and Hyundai and wholesale markets.
