[Inside Chodong] Easing Large Supermarket Operating Regulations: Persuasion Comes First

The reporter's home is in Seoul, but most grocery shopping is done in Gimpo. The reporter's father-in-law and mother-in-law, who lived in Seoul, moved to the quiet and clean-air city of Gimpo after retirement. Because of this, the reporter often goes to Gimpo on weekends to visit the in-laws, and after visiting, does grocery shopping at a large supermarket in Gimpo. In Seoul, large supermarkets are required to close on Sundays, but in Gimpo, they close on Wednesdays. Shopping in Seoul requires complicated date calculations, but in Gimpo, one can shop anytime on the weekend. For this reason, the reporter shops in Gimpo, which is 25 km away from home.

The government is promoting a plan to abolish the mandatory holiday closure regulation applied to large supermarkets as part of its living regulation reform measures and to allow online delivery during restricted early morning hours. While industry insiders express anticipation about the government's announcement, they also openly voice concerns, saying, "Will things really change this time?" Since the Distribution Industry Development Act was enacted in 2012, discussions on regulatory reform have been ongoing but have repeatedly come to nothing.

The Yoon Seok-yeol administration's discussions on abolishing the mandatory closure regulation for large supermarkets have not been much different. The government has repeatedly shown a wavering stance. Right after Yoon Seok-yeol was elected president in 2022, the 'Abolition of Mandatory Closure for Large Supermarkets' was selected as the top proposal in the presidential office's public suggestion vote. However, controversy over vote manipulation arose, and during the 6th Emergency Economic and Livelihood Meeting held by President Yoon at Amsa General Market, he instructed to "ensure no harm comes to small business owners," which brought the issue back to square one. The abolition of the mandatory closure for large supermarkets was President Yoon's number one regulatory reform pledge. In July last year, the government launched a task force (TF) to improve 'killer regulations' and held discussions on this issue but failed to reach any significant conclusion.

The opposition party's situation is no different. On the surface, the government and ruling party appear to support easing large supermarket operating regulations, while the opposition opposes it, but the internal dynamics are complex. In 2021, during the Moon Jae-in administration, 11 members of the Democratic Party of Korea jointly proposed an amendment to the Distribution Industry Development Act to lift the online operating hour restrictions (midnight to 10 a.m.) for large supermarkets. However, last year, the relevant bill was opposed during the review by the National Assembly's Industry, Trade, Energy, Small and Medium Enterprises Committee's subcommittee. They opposed a bill they had proposed when they were in power once they became the opposition.

Ultimately, the controversy over mandatory closure of large supermarkets varies depending on political positions. Especially regarding allowing late-night delivery by large supermarkets, both consumers and small and medium-sized distribution businesses, who were stakeholders during the regulation, support it. Only the political sphere holds differing opinions.

Considering these points, the government's recent announcement is more disappointing than welcome. Ultimately, lifting the operating regulations on large supermarkets can only be fully realized through legislative supplementation. It requires the opposition party's consent. With the general election approaching and the policy supported by voters and stakeholders, it is questionable whether the government has tried to persuade the opposition to join. Since the ruling party's position is fixed, it seems certain that the opposition will raise opposing voices to sharpen their election stance. It is also curious what discussions have taken place with other stakeholders of large supermarkets, such as the Small Business Association and the Mart Industry Labor Union. They immediately issued statements opposing the government's policy direction upon its announcement.

The controversy over mandatory closure of large supermarkets is directly related to consumer choice. The government unilaterally announcing policies without prior consultation only provokes opposition from the opposition party and stakeholders. There is concern that the movement to ease large supermarket operating regulations, repeated for 12 years, will again amount to empty promises this time as well.