Large Supermarket Dawn Delivery Still Far Off... 3 in Favor, 10 Undecided

SanJawi, cautious on amendment of Distribution Industry Development Act
Consumer benefits vs protection of local businesses and workers
Concerns over failure of deregulation for large marts

Although the deregulation of large supermarkets has taken its first step, legislative support for dawn delivery remains uncertain. Members of the National Assembly's Industry, Trade, Energy, Small and Medium Enterprises Committee (SanJaWi) from both ruling and opposition parties have mostly expressed cautious views on the amendment to the Distribution Industry Development Act.

On the 8th, Asia Economy conducted a full survey of 13 members of the SanJaWi Industry, Trade, and Patent Subcommittee. Regarding the bill that would allow large supermarkets to process online orders on mandatory rest days, only three members expressed 'support.' Ten members took a 'reserved' stance, stating that a comprehensive review of the overall impact on the distribution industry is necessary. Regarding the conversion of mandatory rest days to weekdays, members of the People Power Party were generally positive, while many Democratic Party members expressed negative opinions.

Under current law, local government heads can restrict the operating hours of large supermarkets and quasi-large stores from midnight to 10 a.m. and designate two mandatory rest days per month. Although there are no legal provisions regarding online delivery, the Ministry of Government Legislation has issued an authoritative interpretation stating that using offline stores as logistics and delivery bases for online sales during restricted hours or mandatory rest days is effectively equivalent to opening the stores and thus violates the law. Ultimately, legal amendments are essential for large supermarkets to fully implement dawn delivery.

A large supermarket in Seoul is closed due to mandatory holiday regulations. Photo by Kim Hyun-min kimhyun81@

According to the National Assembly's legislative information system, Democratic Party member Ko Yong-jin introduced an amendment to the Distribution Industry Development Act in June 2021. The core of this bill is to exclude large supermarkets and quasi-large stores from mandatory rest days and operating hour restrictions when conducting telecommunication sales under the Act on Consumer Protection in Electronic Commerce. People Power Party member Lee Jong-bae also proposed a bill in July 2020 to exempt large supermarkets and quasi-large stores from restrictions on mandatory rest days when operating online shopping.

Lawmakers who supported the bill focused on enhancing consumer convenience. People Power Party member Lee Cheol-gyu said, "We must keep up with changing times. Dawn delivery is used because it is convenient for the public," emphasizing, "We should seek socially sustainable solutions rather than simply forbidding large supermarkets from doing it." Fellow party member Yang Geum-hee stated, "I view the bill allowing online delivery on mandatory rest days positively," adding, "We need to consider the relationships among large supermarkets, e-commerce, and traditional markets and reach conclusions based on concrete data." Independent member Yang Hyang-ja said, "I fundamentally agree with the government's stance on deregulating large supermarket delivery," but added, "We need to approach this carefully to avoid harming small business owners."

On the other hand, lawmakers with reserved positions are focusing on protecting local small businesses and workers' health rights. Democratic Party Policy Committee Chair Kim Sung-hwan said, "It is clear that easing regulations on large supermarkets will have a greater impact on traditional markets," and stressed, "We need to deeply examine workers' rights and how to maintain market order in a balanced way." Fellow party member Song Ki-heon expressed concern, saying, "It seems the government is only listening to large distribution companies," and emphasized the need to consider the effects on small business owners and workers. Member Lee Yong-bin pointed out, "Dawn delivery requires careful review," and criticized the government for hastily pushing the conversion of mandatory rest days to weekdays without sufficient public consultation and deliberation.

Within the Democratic Party, there were also criticisms that the government's push to deregulate large supermarkets undermines the National Assembly's legislative authority. On the 3rd, Democratic Party Deputy Floor Leader Lee Dong-joo stated at a floor strategy meeting, "The agreement for the coexistence and development of large, medium, and small distribution sectors fundamentally violates the purpose of the mandatory rest day provisions in the Distribution Industry Development Act," and urged, "Do not damage the values of coexistence that our society has upheld for the past decade."

On the 4th, mart workers held a press conference in front of the Dongin Building at Daegu City Hall condemning the change of mandatory weekday closing days, followed by a street march. [Image source=Yonhap News]

On the 28th of last month, the government, large supermarkets, and small and medium distribution sectors signed an 'Agreement for the Coexistence and Development of Large and Small-Medium Distribution' at the Government Seoul Office. The parties agreed to jointly strive to allow online delivery even during restricted operating hours and mandatory rest days for large supermarkets. They also plan to establish a regular consultative body to promptly and smoothly implement the coexistence agreement and continue discussions to specify coexistence measures.

The large supermarket industry is anxious that deregulation bills may fail in the National Assembly. A representative from a large supermarket said, "It will be difficult to discuss the bill if politicians start calculating votes ahead of the general election. It is true that small business owners in local areas can organize themselves, and there is opposition from labor unions," adding, "Since public opinion is gathering and the government is pushing forward, we hope for a magnanimous decision in the National Assembly."

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