[Desk Column] Dawn Delivery and Distribution Regulation

[Asia Economy Reporter Myung Jin-gyu] Sunday business prohibition, 24-hour early morning sales ban, prohibition of providing packaging materials such as string and tape, ban on bundled packaging, prohibition of using emergency disaster relief funds. These are the regulations imposed on large supermarkets. In addition, the ruling party has proposed amending the Distribution Act to apply mandatory weekend closures twice a month to complex shopping malls, outlets, department stores, duty-free shops, and specialty stores.

It is understandable why people say these regulations are suffocating.

During the mandatory closure of large supermarkets in the past, the policy goal was to revitalize traditional markets. The assumption was that if people could not go to large supermarkets, they would go to traditional markets instead. The result? Although various studies have been conducted over the years, it seems the intended policy goal was not achieved. Instead of going to traditional markets, people started ordering from online shopping malls.

The amendment justifies regulating all large shopping malls by citing the protection of workers' health rights. It argues that workers’ health is threatened because they work even on weekends. However, this is hard to accept readily since the 52-hour workweek is already legislated.

It is not even surprising that duty-free shops targeting foreign tourists, as well as outlets located in suburban areas independent of surrounding commercial districts, are included in the scope. From the consumer’s perspective, having to take a day off just to buy clothes at an outlet is unwelcome. Regulations imposed on offline distribution companies are becoming heavier, while online distribution companies remain in a regulatory blind spot.

I ordered a few flowerpots from Internet distribution company A, famous for Saturday early morning delivery. I was too lazy to go out shopping, so I appreciated that they left the items at my doorstep around the time I woke up. When I checked the app after waking up, it said the delivery had already arrived. Happily, I started unpacking. Although it was carefully packed, the items were broken. I consoled myself that I had joined the paid membership that allows free returns and exchanges, requested an exchange, repacked the items, wrote "exchange" in large letters with a marker, and left the box beside the door.

While having lunch, someone came. When I opened the door, a new delivery from company A had arrived. I opened the box and this time the items were intact. The box I had left for exchange was still there. Wondering when they would pick it up, I called a friend who is deeply into company A.

After a few minutes of conversation, the conclusion was that "they often do not pick it up." If the box remains at the door for several days without being collected, you can use the items. Moreover, many consumers cleverly exploit this rule. They buy an item, request an exchange to receive a new product, and if the returned item is not picked up, they sneakily use it.

Since the logistics center pre-packages items by sales unit, some laughable situations arise. A friend who runs a cafe in Yeouido ordered 10 plates and 30 jars of handmade blueberry jam from company A last week. The next morning when he went to work, 40 boxes were piled up in front of the store. Since the products are fragile, inside the large boxes was only one plate tightly wrapped in bubble wrap. The blueberry jam was similarly packaged.

After taking out 10 plates and 30 jars of jam, 40 boxes and a mountain of plastic packaging were left on the floor. The friend’s remark, "Cleaning up was more work," is meaningful. It must have taken quite some time to separate and recycle 40 boxes. Because of this, company A inevitably runs at a loss. What could have been done with two boxes ended up requiring 40 boxes, increasing logistics costs significantly.

The bigger problem is the fairness of regulations. There is no need to mention regulations on business hours, and there is no serious discussion about online distribution in environmental regulations either. The fact that large supermarkets remove strings and tape in the name of environmental protection while there are no regulations on online shopping malls reminds us that these measures are merely for show.