"No Winner in Large Mart Regulations... Need to Unlock and Find Win-Win Solutions"

KCCI Holds 'Distribution Regulation Seminar' at National Assembly Members' Office Building
"Legislation for Distribution Regulation Improvement... National Assembly and Government Must Take Action"

Regarding the large-scale supermarket regulations that have been in effect for 10 years, an evaluation has emerged stating that "they have only increased conflicts without any effect" and that "the restrictions should be lifted to find a win-win solution."

On the 19th, the Korea Chamber of Commerce and Industry held a ‘Distribution Regulation Policy Evaluation and Win-Win Development of the Distribution Industry Seminar’ jointly with the Korea Distribution Science Association at the National Assembly Members’ Office Building in Yeongdeungpo-gu, Seoul. Professor Kim Ju-young of Sogang University (Korea Distribution Science Association), who gave the keynote presentation, analyzed 32 papers published in major academic journals since the implementation of the distribution regulations. He diagnosed that “while there were some positive effects in the early stages of the regulation introduction, over time, the rapid growth of the online market and food material marts has reduced the effectiveness of the regulations and only increased conflicts.” He added, “It was found that a significant number of customers from large supermarkets, traditional markets, and neighborhood grocery stores have moved online.”

Heated discussions continued regarding sustainable win-win solutions for large, medium, and small distribution sectors. Seo Seong-yoon, director of the Daegu Jungseobu Supermarket Cooperative, said, “Despite regulating large supermarkets for over 10 years, nothing has come back to us,” and emphasized, “Coexistence and cooperation are more beneficial to us.” Kang Yong, chairman of the Korea Agricultural and Food Corporation Federation, stated, “Large supermarkets are an important distribution channel for us, but it is estimated that mandatory closure regulations reduce agricultural product sales by more than 800 billion won annually,” adding, “The policy, which was intended to protect socially vulnerable groups, has instead caused harm to farmers and consumers, so comprehensive institutional reform is necessary.”

A traditional market in Seoul. Photo by Dongju Yoon doso7@

The discussants unanimously agreed that the focus should be on practical support for small and medium-sized merchants rather than solving problems through regulations. Han Seung-joo, chairman of the Jeonnam Merchants Association, stressed, “Although the need for regulatory reform has emerged as online and food material marts have rather enjoyed the benefits instead of small merchants, the situation of small merchants who are still struggling even after the end of COVID-19 must also be considered.”

Gwak Eun-kyung, secretary general of Consumer Watch, argued, “This is a no-winner situation negatively affecting consumers, large distribution, and small merchants alike,” and insisted, “Instead of aggravating consumer inconvenience with ineffective regulations, policies should be promoted to strengthen the capabilities of small distribution so that they can gain consumer choice.” Lee Dong-joo, senior research fellow at the Small and Medium Business Research Institute, also said, “More systematic measures to strengthen the competitiveness of small distribution should be presented.”

Jang Geun-mu, director of the Korea Chamber of Commerce and Industry’s Distribution and Logistics Promotion Institute, urged, “The National Assembly and government must step up to ensure that practical win-win measures are derived through dialogue and cooperation between large supermarkets and small distribution, and that improvements to distribution regulations can be legislated.”

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