"‘Closing Complex Shopping Malls, So People Buy Clothes at Markets?’... Distribution Industry's Frustration Amid Regulations"

Opposition Party Proposes Expansion of Business Hour Restrictions and Mandatory Closures
Criticism Arises Over Low Effectiveness in Protecting Traditional Commercial Districts

Choi Seung-jae, member of the People Power Party. [Photo by Yonhap News]

[Asia Economy Reporter Lim Chun-han] As the Democratic Party of Korea accelerates discussions on regulating complex shopping malls, the People Power Party has introduced a bill to regulate food material marts. The retail industry is suffering quietly amid the flood of regulation-focused legislation in the National Assembly.

◆ Opposition: "Food Material Marts Should Also Be Regulated" = On the 26th, Lee Cheol-gyu, the People Power Party's ranking member of the National Assembly's Industry, Trade, Energy, Small and Medium Enterprises and Startups Committee, said in a phone interview with Asia Economy, "Our party does not have an official stance. Regulations on internet shopping malls should be eased, and necessary amendments should be made to protect traditional market commercial districts." He added, "In my area, traditional market merchants are desperately asking to block food material marts. We need to discuss this in the subcommittee of the standing committee in February and come up with a reasonable alternative."

On the previous afternoon, Choi Seung-jae, a People Power Party lawmaker, held a press conference at the National Assembly and announced the introduction of a bill mandating forced closure days for food material marts. Choi said, "Who would oppose bringing customers to traditional markets and alleyway commercial districts through mandatory closure of complex shopping malls?" He criticized, "The problem is that food material marts are benefiting from the interests generated by regulating large marts. Everyone in traditional markets says they are dying because of food material marts. What have the government and ruling party been doing all this time?"

Hong Ik-pyo, Policy Committee Chairman of the Democratic Party of Korea. [Photo by Yonhap News]

◆ Ruling Party Accelerates Regulation of Complex Shopping Malls = The Democratic Party has reached a consensus to pass the Distribution Industry Development Act next month. The representative bill, proposed by Hong Ik-pyo, the Democratic Party's Policy Committee Chair, allows local government heads to restrict operating hours and enforce mandatory closure days for complex shopping malls such as Starfield and Lotte Mall. Under current law, restrictions on late-night operations and designation of two mandatory closure days per month apply to large marts and corporate supermarkets (SSMs); this bill expands the scope to include complex shopping malls. It also includes provisions to expand traditional commercial preservation zones into commercial protection zones. If this bill passes, opening new stores will become practically difficult. Democratic Party lawmaker Lee Dong-joo has proposed a bill to include complex shopping malls, department stores, duty-free shops, and specialty stores under operating regulations.

As both ruling and opposition parties push for stronger distribution regulations citing their respective constituencies' circumstances, criticism has emerged that "distribution regulation has fallen into the quagmire of political logic."

◆ Retail Industry Sighs Deeply = The retail industry is closely monitoring the National Assembly situation with heavy sighs. Large marts are struggling against online fresh food delivery companies, and with the extension of mandatory closure days and the inclusion of complex shopping malls, department stores, duty-free shops, and specialty stores as subjects of operating regulations, their survival could be threatened.

In particular, there is criticism that the effectiveness of protecting traditional commercial districts is low compared to the excessive regulations imposed on large corporations. An industry insider said in a phone interview, "Even if large marts conflict with traditional markets, does not buying clothes at complex shopping malls mean buying them at traditional markets?" He raised his voice, saying, "It infringes on consumers' rights." He added, "About 30-40% of complex shopping mall space is entertainment stores, and 60-70% of the brands operating there are run by small and medium-sized merchants. These people will be unfairly discriminated against."

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