FKCCI: "57% of Consumers Say 'Mandatory Closure of Complex Shopping Malls Won't Bring Customers to Small Businesses'"

[Asia Economy Reporter Jeong Hyunjin] As discussions are underway in the political sphere to mandate twice-monthly closures for complex shopping malls, similar to large supermarkets, a survey revealed that 6 out of 10 consumers who have visited complex shopping malls believe this will not lead to increased consumer inflow into traditional markets or local small businesses. In fact, only about 12.0% said they would visit traditional markets on the days these malls are closed.

On the 16th, the Federation of Korean Industries (FKI) commissioned Mono Research, a market research firm, to survey 500 men and women aged 18 and older living in the Seoul metropolitan area who had visited complex shopping malls within the past year. The survey found that 57.4% of respondents believed the mandatory closure policy would not result in increased consumer inflow to local small businesses. This was more than 20 percentage points higher than the 34.4% who thought there would be a positive effect.

By age group, 68.4% of respondents in their 20s said there would be no consumer inflow effect to local small businesses, the highest proportion among all groups. Those in their 30s (61.6%) and 40s (62.1%) also exceeded the average. Among respondents in their 50s and those aged 60 and above, 51.8% and 47.2% respectively gave the same answer, indicating that the perception that mandatory closures of complex shopping malls would revive local small businesses slightly increases with age. An FKI official stated, "It appears that traditional markets and local small businesses are perceived by consumers as distinct facilities with different characteristics and purposes, rather than as substitutes or competitors to complex shopping malls."

Regarding the application of business restrictions such as mandatory twice-monthly closures for complex shopping malls, 54.2% opposed the measure, which was 18.8 percentage points higher than those in favor. When asked where they would go on mandatory closure days if the policy were implemented, 34.6% said large supermarkets, followed by department stores/outlets (28.2%), traditional markets (12.0%), nearby shops (9.0%), online malls (4.8%), others (3.0%), and convenience stores/local supermarkets (2.4%). Only 6.0% said they would revisit the complex shopping mall on business days.

The main reasons for visiting complex shopping malls were "shopping for clothing, etc." (34.0%) and "dining and cultural, entertainment, leisure activities" (26.4%). The FKI explained that unlike traditional markets, where purchasing daily necessities is the primary purpose, complex shopping malls serve as comprehensive cultural spaces offering shopping, entertainment, food and beverage, and relaxation. It was also confirmed that younger people tend to visit complex shopping malls for these reasons more frequently.

Visits to complex shopping malls were nearly twice as high on weekends (52.6%) such as Saturdays and Sundays compared to weekdays (28.8%). The frequency of visits was ranked as follows: once or twice a month (38.6%), once or twice a quarter (23.0%), once or twice a week (22.0%), once or twice a year (10.2%), and three or more times a week (6.2%). An FKI official predicted that if the twice-monthly mandatory closure regulation on public holidays is introduced, consumers’ choices will be limited and inconvenience will increase.

Yoo Hwan-ik, Director of Corporate Policy at the FKI, said, "A thorough analysis is needed on the actual benefits to traditional markets and consumer utility that may result from regulations like mandatory closures of complex shopping malls." He added, "Rather than regulating specific distribution companies, policies should be devised to enhance the competitiveness of small and medium-sized merchants and promote coexistence within the distribution industry."

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