Shin Jeong-hoon: "Unrestrained Entry into Alley Markets, Emart No Brand is Number One"

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] It has been revealed that corporate supermarkets (SSMs) are severely encroaching on local small business districts.

According to data submitted by the Ministry of SMEs and Startups to Shin Jeong-hoon, a member of the National Assembly's Industry, Trade, Energy, SMEs and Startups Committee (Democratic Party, Naju-Hwasun) on the 26th, there were 142 business adjustment requests filed by small business owners against corporate supermarkets (SSMs) over the past five years.

In particular, it was found that 7 out of 10 business adjustment requests targeting SSMs were for Emart-affiliated SSMs.

Looking at the number of business adjustment requests by brand, Emart No Brand had the highest with 76 cases, followed by Emart Everyday and GS The Fresh with 20 cases each, and Lotte Super with 16 cases.

The number of business adjustment requests targeting Emart affiliates Emart No Brand and Emart Everyday accounted for 96 out of the total 142 cases, representing 68%.

Corporate supermarkets are located in small commercial areas that were traditionally the exclusive domain of small merchants, threatening the livelihood of these small business owners.

The business adjustment system is a mechanism that recommends large corporations to reduce or postpone their business activities for a certain period when their business entry or expansion is expected to harm the business areas of small and medium enterprises and small business owners.

The Ministry of SMEs and Startups delegates the authority for business adjustments, such as voluntary adjustments and adjustment recommendations regarding SSMs, to local governments.

Meanwhile, over the past five years, more than 70% of the 142 business adjustment requests?100 cases?were handled through voluntary adjustments. Monitoring by the Ministry of SMEs and Startups and adjustment recommendations, which impose penalties for non-compliance, were only applied in 6 cases.

Assemblyman Shin Jeong-hoon said, “The indiscriminate entry of large corporations into local small business districts is threatening the survival of small business owners. Since business adjustment is a system designed to protect SMEs and small business owners, the Ministry of SMEs and Startups should not pass everything onto local governments but should actively respond by preparing effective measures.”