"Anachronistic Idea... From One-Sided Regulation to Seeking Comprehensive Development Directions" [Reverse-Running Distribution Regulation]

⑧Diagnosis by 5 Distribution Experts

Mandatory Closures and Operating Hour Restrictions Should Be Lifted
Home Shopping Needs Autonomy Rather Than Uniform Regulation
Online Alcohol Sales Require Consideration of Underage Regulations and Fairness
Consumer Awareness Improvement Comes First for Single-Use Item Ban

(From left) Professor Kim Kyung-ja, Catholic University; Professor Jung Yeon-seung, Dankook University, Department of Business Administration; Professor Kim Si-wol, Konkuk University, Department of Consumer Studies; Professor Seo Yong-gu, Sookmyung Women's University, Department of Business Administration; Professor Lee Eun-hee, Inha University, Department of Consumer Studies.

[Asia Economy Reporters Lim Chun-han and Jeon Jin-young] Distribution experts unanimously evaluated the regulations across the distribution industry as "anachronistic" and called for a "bold transformation." In particular, they agreed that the mandatory closure days and operating hour restrictions on large discount stores and corporate supermarkets (SSMs), which are directly linked to consumer rights, should be abolished, and that support should focus on the independent development of traditional markets. They also assessed President Yoon Seok-yeol’s pledge to attract a complex shopping mall to Gwangju as "necessary" from the perspective of regional revitalization.

◆ Unanimous call for abolishing mandatory closure days = On the 19th, Asia Economy conducted a survey of five experts, who collectively agreed that the current mandatory closure days and operating hour restrictions under the Distribution Industry Development Act should be abolished. Professor Seo Yong-gu of the Department of Business Administration at Sookmyung Women’s University pointed out, "Since 2010, almost no country worldwide regulates the distribution industry. The law does not consider the development of smartphones and the growth of e-commerce at all," adding, "There is no effect of shifting shopping from large discount stores to traditional markets." Professor Lee Eun-hee of the Department of Consumer Studies at Inha University said, "SSM entry is a good option for consumers because of advanced store layouts and a variety of product types," emphasizing that it should not be viewed negatively unconditionally. Professor Kim Si-wol of the Department of Consumer Studies at Konkuk University evaluated, "It had significance in terms of coexistence with small business owners," but also said, "It is negative in promoting free competition or a perfect market."

Positive evaluations were also made regarding the pledge to attract a complex shopping mall to Gwangju. Professor Kim Si-wol emphasized, "With the local shopping district nearly collapsed, attracting a complex shopping mall will help promote population movement and regional consumption." Professor Jeong Yeon-seung of the Department of Business Administration at Dankook University said, "Since the current distribution industry is heavily regulated, deciding to attract a complex shopping mall as a direction is a good decision."

Ultimately, the consensus is that focus should be placed on the independent development and support of traditional markets rather than on distribution regulations. Professor Jeong Yeon-seung pointed out, "Policy support should be provided so that traditional markets can survive in line with changes in the distribution sector," adding, "The idea of saving small business owners by restricting existing distribution businesses is anachronistic." Professor Kim Kyung-ja of the Department of Consumer and Housing Studies at Catholic University also advised, "For consumers to shop once every one or two weeks with intention, parking and convenience facilities are essential, but traditional markets are failing to adapt," and recommended, "The direction should be reset so that traditional markets can gain competitiveness."

◆ Allow autonomy rather than blanket regulations = The issue of reverse discrimination due to regulations between TV home shopping and live commerce was also pointed out unanimously. Professor Jeong Yeon-seung said, "Live commerce is superficially similar to home shopping but is not regulated at all. This is unfair," and added, "It is unreasonable to require businesses to operate under double or triple regulations such as transmission fees and re-approval." Professor Kim Kyung-ja said, "There is actually insufficient regulation on sales conducted through social networking services (SNS)," and urged, "It would be better to allow live commerce the same level of autonomy as home shopping and impose sanctions only when problems arise."

Regarding the representative regulation in the liquor industry banning online liquor sales, experts diagnosed that measures to prevent underage purchases should be prepared in parallel to resolve fairness issues. Professor Lee Eun-hee said, "Alcohol delivery and online sales of traditional liquor are possible, but restricting other liquors is reverse discrimination," and stressed, "There must be thorough verification mechanisms to confirm whether the buyer is underage." Professor Kim Kyung-ja also said, "Complementary measures should be developed along with plans to prevent misuse."

Regarding the recent major issue in the dining industry banning single-use items in cafes and restaurants, the consensus is that "consumer awareness improvement" is most important. Professor Seo said, "In Europe, people shop with a sense of guilt about using disposable items," emphasizing, "It should not be imposed only on distribution companies; consumer awareness itself must change. A global campaign is needed." Professor Kim Si-wol said, "It should lead to changes in consumption habits and education," adding, "Currently, due to the impact of COVID-19, a grace period is necessary. We should move toward improving consumer awareness by offering discounts for bringing tumblers, for example."