"Changes in the Distribution Environment After COVID-19... Various Distribution Regulations Need Improvement"

KCCI to Host '2020 New Retail Trends and Innovation Growth Webinar' on 21st
Orin A, Head of Ebest Investment & Securities, "COVID-19 Will Be a Catalyst Changing Consumer Paradigms"
Professor Kang Young-chul of Hanyang University: "Government and National Assembly Should Support Retail Industry Development Alongside Protecting Small Merchants"

[Asia Economy Reporter Ki-min Lee] There have been calls to improve existing distribution regulations to adapt to the rapidly changing distribution environment following the spread of the novel coronavirus infection (COVID-19).

The Korea Chamber of Commerce and Industry held the ‘2020 New Distribution Trends and Innovative Growth Webinar’ on the 21st, diagnosing recent changes in the distribution environment and exploring new directions for distribution policies and the distribution law system.

First, they identified consumer trends that companies should consider in the post-COVID era and discussed corporate response strategies. Lee Kyung-hee, Director of the Emart Distribution Industry Research Institute, in her presentation titled ‘Consumer Trends in the Post-COVID Era,’ stated, "The ‘Corona Blue era’ dominated by depression and lethargy caused by significant changes in daily life due to COVID-19 has arrived," adding, "Due to increased uncertainty, the market is divided into consumption that provides physical survival or mental comfort, and companies must find new growth opportunities in these areas."

Orin-ah, a part-time analyst at Ebest Investment & Securities, presented on ‘Shopping in the COVID Era,’ saying, "The outbreak and spread of COVID-19 will not only increase online consumption in the short term but also act as a catalyst to change the consumption paradigm itself," and identified key consumption keywords in the COVID era as single-person households, online grocery shopping, and faster delivery.

The participants engaged in in-depth discussions on the need to shift distribution industry policy directions and improve the distribution law system in response to the rapid changes in the distribution environment.

Kang Young-chul, a special professor at Hanyang University, in his presentation titled ‘Digital Era, Distribution Innovation and Regulation,’ argued, "The Distribution Industry Development Act, originally established to promote the development of the distribution industry, has been distorted into a law that suppresses the distribution industry by imposing restrictions on the opening and operation of large-scale distribution stores," and emphasized, "The government and the National Assembly should consider the development of the distribution industry alongside protecting small and medium-sized merchants."

Jung Yeon-seung, a professor at Dankook University, participating as a discussant, stated, "The distribution environment paradigm has shifted from ‘large marts vs. traditional markets’ to ‘online market vs. offline market,’" and argued, "Considering the reality of structural adjustments in large offline stores due to the rapid expansion of online shopping, it is time to change the regulatory approach."

Lee Jung-hee, a professor at Chung-Ang University, also suggested, "Regarding distribution regulations, the repeated debates between small business owners and large distribution companies about their effectiveness have only intensified conflicts," and proposed, "Now, the government should take the lead in conducting comprehensive and objective effectiveness evaluations."

Park Joo-young, a professor at Soongsil University, pointed out, "Distribution regulations that block entry into neighborhood markets cannot be a solution to revitalize these markets," and criticized, "In a situation where the axis of distribution has shifted online, distribution regulations reduce jobs in large distribution and only harm small merchants in related industries."

Lee Seung-chang, a professor at Korea Aerospace University, emphasized, "It cannot be said that traditional markets or neighborhood markets have grown due to distribution industry regulations," adding, "Anti-market regulations that are ineffective and inefficient distort the distribution supply chain and negatively impact the local economy and employment."

Seo Deok-ho, Director of the Korea Chamber of Commerce and Industry Distribution and Logistics Promotion Institute, said, “Despite the rapid changes in the global distribution paradigm due to worldwide disasters, domestic distribution regulations seem poised to become even stricter,” and added, “For the development of the distribution industry and resolution of social conflicts, a thorough analysis and reasonable evaluation of the effects of past regulations are necessary. Furthermore, it is essential to reflect on whether the current distribution law system can effectively accommodate the changes of the new era.”

This content was produced with the assistance of AI translation services.