Choi Seung-jae "Sikjajae Mart Increased 73% in 5 Years... Should Be Regulated Like Large Marts"

Choi Seung-jae, elected member of the Future Korea Party. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Lee Ji-eun] Choi Seung-jae, a member of the People Power Party, argued that food material marts have increased by 73% over the past five years, threatening traditional markets and neighborhood businesses, and therefore should be subject to regulations similar to those for large supermarkets.

According to survey analysis data submitted by the Korea Distribution Science Association on the 21st, the number of food material mart stores with sales between 5 billion and 10 billion KRW increased by 72.6% compared to 2014 as of last year.

The sales proportion also increased by 36.5%.

In particular, although food material marts with sales exceeding 10 billion KRW accounted for only 0.5% of the total number of stores last year, their sales proportion reached about 24.1%, indicating market encroachment.

On the other hand, the number of supermarket stores has been declining since 2016 due to the closure of small supermarkets.

Choi stated, "According to the Distribution Industry Development Act, which has been strengthened since 2010, large supermarkets and corporate supermarkets (SSM) over 3,000㎡ are regulated, but food material marts, which are under 3,000㎡ in size, have grown rapidly like mushrooms after rain, encroaching on traditional markets and neighborhood businesses. Although opposition from related industries has been continuously raised, measures have been sluggish."

He added, "Voices from related industries continuously report frequent conflicts between food material marts and traditional markets and neighborhood businesses in every area where new food material marts open. Since it has been 10 years since the enforcement of the Distribution Industry Development Act, it is urgent to strengthen necessary regulations, improve unreasonable regulations, and implement policy changes that align with the changing distribution industry environment."

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