This study examines the degree of integration and how prices are transmitted between retail and wholesale markets of domestic rice in South Korea. We used monthly wholesale and retail prices from 1996 to 2014 and together with a linear cointegration approach and an asymmetric error correction model approach to study how well the market is doing. Our study results shows that the two markets under consideration in the domestic rice market are integrated and as such prices in these markets do not drift apart in the long run. It was observed in our study that there exist asymmetry in the price transmission process in the short run. However, in the long run, it was observed as symmetric. Therefore, unlike the earlier study results in this area, we conclude that Korean rice market have functioned well over the past years and the inefficiency problem is not so serious in general.