Only the 'Ordinance' Needs Changing... Will Large Mart Dawn Delivery Speed Up?

Delegation of Relevant Authority to Local Government Heads
Possibility of Lifting Business Hour Regulations Under Current Law

As the government pushes to abolish the mandatory holiday closure system for large supermarkets, attention is focused on whether local governments' discretionary regulations on business hours restrictions can also be eased. While legal amendments are required to abolish the mandatory closure regulation for large supermarkets, adjusting business hours can be done simply by changing local government ordinances.

According to the National Assembly Bill Information System on the 31st, a revision bill to the Distribution Industry Development Act that excludes large supermarkets conducting online shopping from mandatory closure targets is currently pending in the Industry, Trade, and Small and Medium Venture Business Committee's Industry, Trade, and Patent Subcommittee of the National Assembly.

Article 12-2 of the current Distribution Industry Development Act stipulates that special autonomous city mayors, mayors, county governors, and district heads may order business hour restrictions or designate mandatory closure days for large supermarkets if deemed necessary to establish sound distribution order, protect workers' health rights, and promote the mutual development of large stores and small and medium distribution businesses.

Amended in January 2013, this law allows local government heads to “restrict business hours within the range from 12:00 AM to 10:00 AM,” and “designate two mandatory closure days per month on public holidays, and, through agreement with stakeholders, designate mandatory closure days on non-public holidays.” Furthermore, matters necessary for business hour restrictions and mandatory closure day designations are to be determined by the ordinances of the respective local governments.

Accordingly, most local governments nationwide have designated public holidays as mandatory closure days for large supermarkets and have applied business hour restriction regulations. According to the office of Kim Woong of the People Power Party, among 229 local governments last year, excluding 59 that did not designate mandatory closure days for large supermarkets, 114 designated closures only on weekends, making up the majority. Fifteen designated closures on both weekends and weekdays, while only 41 designated closures on weekdays alone.

The revision bill to the Distribution Industry Development Act, jointly proposed by Kim Jong-bae of the People Power Party and others, includes provisions to exclude large supermarkets conducting online sales from mandatory closure targets, but it has repeatedly failed to pass higher-level committees. If it does not pass before the general election in April, it will be automatically discarded.

For this reason, the distribution industry is pinning hopes on abolishing mandatory closure regulations through amendments to local government ordinances. In fact, Kim Ji-hyang, a Seoul city council member (People Power Party), recently proposed the “Partial Amendment to the Seoul Metropolitan City Ordinance on Mutual Cooperation in Distribution Industry, Support for Small Business Owners, and Distribution Disputes.” The ordinance amendment excludes online delivery from the business hour restriction (12:00 AM to 10:00 AM) for large supermarkets and allows the mayor to recommend to district heads that the two mandatory closure days per month be uniformly applied throughout Seoul after agreement with stakeholders.

If the ordinance is submitted to the city council, its chances of passing are considered high. Currently, the Seoul City Council seats are dominated by the ruling party, with the People Power Party holding 75 seats and the Democratic Party holding 35 seats. However, opposition from stakeholders such as the Small Business Federation and the Mart Industry Labor Union is expected during the ordinance review process. A distribution industry official said, “If business hour regulations for large supermarkets are shortened, the supermarkets will have significantly more options,” adding, “It is not just about early morning delivery; regulations hinder the introduction of new services, so easing them is appropriate.”

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