This Chuseok... Can't Even Visit Hometown for Gifts?

Surge in Pre-Booked Orders Due to COVID Impact... Retail Industry on Edge

On the 18th, ahead of the Chuseok holiday, officials are sorting parcels at a courier center in Seoul. Meanwhile, the National Courier Workers' Union has decided to completely refuse parcel sorting work starting from the 21st. The government and courier companies are discussing countermeasures, but if the work refusal materializes, significant disruptions to courier deliveries during the Chuseok holiday are expected. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Lim Hye-seon] Ahead of Chuseok, the distribution industry is on edge due to signs of a parcel delivery crisis. Some delivery workers, burdened by excessive workloads, have resolved to refuse sorting tasks starting from the 21st, raising concerns about disruptions in holiday gift deliveries. Especially this year, with the atmosphere encouraging people to refrain from visiting their hometowns due to the impact of the novel coronavirus disease (COVID-19), demand for Chuseok gifts has significantly increased, making delivery disruptions inevitable if the sorting refusal continues.

According to the distribution industry on the 18th, department stores and large marts will begin delivering Chuseok gift sets from next week. The volume of gift sets this year is expected to increase compared to previous years. Pre-orders for Chuseok gift sets, which started last month, have increased by more than 25% compared to the previous year. Emart and Lotte Mart saw increases of 26% and 40%, respectively. Lotte, Shinsegae, and Hyundai Department Stores also experienced sharp rises of 66%, 44%, and 88%, respectively. Additionally, with the start of regular sales of gift sets in stores from this day, the volume of Chuseok gift deliveries is expected to grow further.

There are about 40,000 delivery workers affiliated with major parcel companies. Those who support the refusal of sorting tasks account for about 10% (4,000 workers) of the total. While parcel companies claim that there will be no delivery crisis, distribution companies are busy preparing countermeasures just in case. During the Chuseok gift sales period every year, distribution companies expand short-term delivery staff to handle the volume. This is because if the volume surges and gift deliveries are delayed, failing to keep promises to customers can negatively affect sales during the next holiday season. A distribution industry official said, "If Chuseok gift deliveries are delayed, consumer complaints will flood in and customer attrition may occur," adding, "Related departments have started emergency meetings to prepare countermeasures immediately after the announcement of the Parcel Delivery Countermeasure Committee."

Distribution companies that have contracts with logistics firms are closely communicating with their partners and monitoring the situation carefully. They are sharing real-time information on the scale of striking personnel and cargo volume with their partners. They are assessing the situation and taking measures. To respond quickly in case of delivery disruptions, they have secured personnel who can be urgently deployed to delivery sites. Companies with their own logistics networks, anticipating a surge in volume, have already increased short-term hired staff. A large mart official explained, "We are also reconsidering the order deadline for Chuseok gift sets," adding, "Normally, orders would close 3 to 4 days before the holiday, but we will readjust the deadline according to the situation."