Daegu Large Supermarket Weekday Closure Policy: 2 Billion Won Exchanged... Daegu CCEJ Says "City Was Aware of Illicit Transactions"

Demand for Apology from Acting Mayor
Strict Disciplinary Action Against Responsible Officials

The Daegu Citizens Coalition for Economic Justice (Daegu CCEJ) issued a statement on the 23rd, claiming, "Daegu City was aware that merchant organizations exchanged 2 billion won during the process of changing the mandatory closure days for large supermarkets to weekdays," and called for disciplinary action against the officials who allowed such illicit transactions to occur.

Daegu CCEJ stated, "It has been confirmed that Daegu City was aware that 2 billion won was exchanged between the Korea Chain Store Association (comprised of major retail conglomerates including large supermarkets), the Daegu Merchants Association, and the Daegu Eastern and Central-Western Supermarket Cooperatives during the process of changing the mandatory closure days for large supermarkets to weekdays, a process led by the city itself." The organization added, "According to a report by Daegu MBC, after receiving a complaint about the money given by the Korea Chain Store Association to merchant groups that supported the weekday closure change, such as the Daegu Merchants Association, Daegu City notified these organizations that 'it is not acceptable to receive money directly from the Korea Chain Store Association in this manner.'"

Daegu Citizens Coalition for Economic Justice

Daegu CCEJ further stated, "In June 2023, the Deputy Mayor for Economic Affairs sent an official document to the Korea Chain Store Association, stating, 'Providing funds without consultation with the city has caused considerable confusion. For transparent management going forward, please send the funds to the Daegu Traditional Market Promotion Foundation, which operates under city ordinance.'" The organization emphasized, "This means Daegu City was aware that merchant organizations supporting the weekday closure change, such as the Korea Chain Store Association and the Daegu Merchants Association, had exchanged money and would likely continue to do so."

According to Daegu CCEJ, Daegu City informed merchants who filed complaints that any future funds exchanged between the Korea Chain Store Association and merchant organizations such as the Daegu Merchants Association would be managed and operated by the Daegu Traditional Market Promotion Foundation. However, according to Daegu MBC's report, in January 2025, the Korea Chain Store Association transferred an additional 1 billion won to the Daegu Merchants Association and two supermarket cooperatives, rather than to the Daegu Traditional Market Promotion Foundation designated by the city, as payment for their support of maintaining the weekday closure policy for large supermarkets.

The Daegu Merchants Association and others did not donate the money they received from the Korea Chain Store Association to the Daegu Traditional Market Promotion Foundation. According to the foundation's public report on donation income and expenditures, the only donation it received in 2024 was 30 million won from the Korea Real Estate Board for the purpose of revitalizing traditional markets.

Daegu CCEJ stated, "Daegu City did not even fulfill its promise that future funds exchanged between the Korea Chain Store Association and the Daegu Merchants Association would be managed and operated by the foundation. The city's notifications to the Korea Chain Store Association, the Daegu Merchants Association, and the merchants who filed complaints were nothing more than an attempt to evade responsibility and a deceptive tactic." The organization added, "The controversy over illicit transactions and the use of funds by merchant organizations supporting the weekday closure change for large supermarkets, such as the Korea Chain Store Association and the Daegu Merchants Association, demonstrates that money paid by retail conglomerates to merchant organizations under the guise of mutual cooperation and development funds continues to be a source of corruption and conflict among merchants."

Daegu CCEJ continued, "This case also shows that institutional reforms, such as the establishment of the Traditional Market Promotion Foundation in Daegu, have had little effect. An even more serious issue is that Daegu City itself is one of the parties involved in this corruption and conflict. The illicit transactions related to the change of mandatory closure days for large supermarkets to weekdays constitute a serious level of corruption involving not only the parties who exchanged money?the Korea Chain Store Association, the Daegu Merchants Association, and the Daegu Eastern and Central-Western Supermarket Cooperatives?but also Daegu City itself." The organization concluded, "Daegu CCEJ expresses grave concern over Daegu City's moral laxity, incompetence, and complacency regarding these illicit transactions related to the weekday closure change for large supermarkets, and calls for an apology from the acting mayor and strict disciplinary action against the responsible officials."