Amendment to Tobacco Business Act Expands Distance Between Retailers from 50 to 100 Meters
Effectiveness Controversy as Most Major Cities Including Seoul Already Apply 100-Meter Standard
[Asia Economy Reporter Koo Eun-mo] Recently, a bill to amend the Tobacco Business Act was proposed in the National Assembly, raising the distance restriction for tobacco retail stores from the existing 50 meters to 100 meters. Since the 100-meter standard is already applied in major cities such as Seoul, it is expected that there will be little immediate impact on new store openings and sales. However, there are concerns that sales could decrease in the long term due to a reduction in distribution channels.
According to the National Assembly Legislative Information System on the 26th, on the 20th, Kim Kyung-man, a member of the Democratic Party of Korea, officially proposed the "Partial Amendment to the Tobacco Business Act," which sets the distance standard for tobacco retail stores to at least 100 meters.
Currently, the designation of tobacco retailers is consistently maintained at a minimum distance of 50 meters, but specific criteria are determined by the heads of local governments through regulations, considering factors such as population, area, and regional characteristics. However, there have been ongoing voices that the current 50-meter distance standard is too close. In the case of convenience stores, since tobacco accounts for a large portion of total sales, it is pointed out that franchise headquarters are recklessly opening stores in locations where they can secure tobacco sales rights.
Lawmaker Kim also stated that the background for proposing the amendment is that the indiscriminate entry of tobacco retail stores not only worsens the business environment for self-employed individuals but also infringes on the public's right to health. The amendment aims to uniformly raise the distance standard between tobacco retail stores to 100 meters to improve the business environment for small business owners threatened by excessive competition.
Even if the amendment passes, it is expected that there will be little immediate impact on new store openings and sales in related industries such as convenience stores and tobacco manufacturers. This is because new store openings within 100 meters are already restricted in most areas of Seoul and the metropolitan area. Currently, among the 25 districts of Seoul, 22 have set the distance between tobacco retail stores at 100 meters. An industry official said, "Since many urban areas already apply the 100-meter standard and it is difficult to retroactively apply the amended standard to existing stores within 100 meters, no significant changes are expected."
However, the industry also expresses concerns about potential sales declines in the long term due to a possible reduction in distribution channels. When stores return their tobacco retail rights in the future, the distance between new stores may increase, which could affect both accessibility and sales. A convenience store industry official said, "Convenience store tobacco retail rights have a strong customer attraction effect," adding, "Because customers who come to buy tobacco often purchase other items as well, expanding the distance restriction for retail stores could impact overall sales, not just tobacco sales."
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