National Proposal 'No.1 Vote' to Abolish Mart Closing Days Surfaces
"Wasted Trips Due to Closing Days" vs "Removing Protection for Local Businesses"
Legal Revision Needed for Implementation, Heated Debate Expected
[Asia Economy Reporter Kang Juhee] Discussions to abolish the mandatory closure system for large discount stores are gaining momentum. Following the Fair Trade Commission's (FTC) review of allowing dawn delivery by large discount stores, the Presidential Office has put the 'abolition of mandatory closure' to an online public proposal vote, drawing attention to whether this will lead to related legal amendments.
Large discount store companies are welcoming the possibility of easing business restrictions that have been in place for the past decade. However, small business owners strongly oppose the move, arguing that "neighborhood businesses will be adversely affected," leading to intense debates over whether to abolish the system.
Among the 10 proposals currently being voted on at the public proposal website on the 25th, the abolition of mandatory closure for large discount stores received the most support with over 400,000 'likes.' On the 21st, the Presidential Office selected 10 proposals, including the abolition of mandatory closure for large discount stores, differentiated minimum wage application, allowance of mobile data rollover for cell phones, strengthening penalties for dog owners in bite incidents, and euthanasia, and put them to an online vote. The Presidential Office plans to select the top three proposals with the most 'likes' by the 31st of this month and reflect them in national policy.
Under the Distribution Industry Development Act enacted in 2012, large discount stores are required to close twice a month. Their operating hours are also restricted, as stores cannot open between midnight and 10 a.m. Because of this, large discount stores cannot conduct online deliveries on mandatory closure days, and dawn delivery using the stores during restricted hours is also impossible.
This law was introduced to prevent consumers from flocking only to large discount stores and to revitalize neighborhood businesses. However, compared to e-commerce companies like Coupang and Market Kurly, which have grown significantly through dawn delivery and face no delivery-related regulations, large discount stores have been criticized for being unfairly disadvantaged due to operating restrictions. Additionally, since the mandatory closure days for large discount stores are mostly the second and fourth Sundays of each month, many citizens who need to shop on weekends find the mandatory closure inconvenient.
In addition to the government's public proposal vote, the FTC is reportedly consulting with the Ministry of Trade, Industry and Energy, the relevant department, on improving the operating restriction clauses that block dawn delivery by large discount stores. The FTC annually selects laws and regulations that restrict competition and discusses improvement plans with the relevant departments; this year, 44 cases including dawn delivery regulations were selected.
Consumer responses to the abolition of mandatory closure for large discount stores are generally positive. Park (30), who works in Seoul, said, "I usually use dawn delivery, so I don't often experience inconvenience due to store closures, but there have been several times when I made a wasted trip because of closure days when I suddenly needed groceries." Housewife Kang (55) also expressed support for abolishing mandatory closure, saying, "I don't go to traditional markets just because the store is closed. Whether it's a large discount store, convenience store, or traditional market, people will find what they need and use them according to their purpose and situation."
On the other hand, small business owners are opposing the move, claiming it infringes on neighborhood businesses. The Korea Federation of Small and Medium Business Owners issued a statement on the 21st, criticizing, "The operating hour restrictions and mandatory closure system for large discount stores were already ruled constitutional by the Constitutional Court in 2018. Despite the legality being proven, the new government is trying to remove the last protective barrier for neighborhood businesses through a public vote."
There are also concerns that abolishing mandatory closure will deprive store employees of their right to rest. The Distribution Division of the Korean Confederation of Trade Unions' National Service Industry Labor Union held a press conference in front of the Presidential Office in Yongsan-gu, Seoul, on the 21st, appealing, "The introduction of mandatory closure days was not only to promote coexistence and development with small business owners but also to protect the health rights of store workers," and urged, "please respect the holidays of store workers."
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