[The Editors' Verdict] Holiday Closure Rules for Large Discount Stores Must Also Be Lifted

Allowing Online Delivery by Large Discount Stores to Keep Coupang in Check
Another Pretext for Korea-U.S. Trade Friction
Need a One-Shot, Not Pinpoint, Revision of Operating Regulations

The restrictions on early morning delivery by large supermarkets will be lifted for the first time in 14 years. Recently, the government and the ruling party decided to revise the Distribution Industry Development Act, which contains provisions banning late-night operations at large supermarkets and Super Supermarkets (SSMs), allowing unlimited online deliveries from these stores. Although overdue, this is a welcome development.

One concerning aspect is that the National Assembly has moved to revise the law just three months after processing the sunset provision that extended operating restrictions on large supermarkets in November of last year. This could provide another pretext for trade friction between South Korea and the United States, especially as the Trump administration has recently announced plans to reimpose tariffs on Korean products.

In reality, allowing early morning delivery by large supermarkets is a legislative move aimed at keeping Coupang in check. Currently, regulations on large supermarket operations require two mandatory closures per month on public holidays and prohibit late-night operations from midnight to 10 a.m. These measures have been in place since 2013 to guarantee rest for supermarket workers and to protect small neighborhood businesses.

The new legislative push is a "targeted revision" that will retain the mandatory closure regulations for offline stores but permit only early morning delivery by large supermarkets. Dongah Kim, a member of the Democratic Party of Korea, explained in the proposal for the revised Distribution Act introduced on February 5 that "as consumers increasingly use online platforms offering online ordering and early morning delivery, the regulation of online operations by large supermarkets and similar stores no longer has a significant effect in protecting small retailers." During last year's process to extend the sunset provision, the National Assembly effectively admitted to a lack of thorough review, and now, if it eases only online regulations without carefully evaluating the effectiveness of offline restrictions, it may be perceived as an overt regulation targeting Coupang.

Regulations on large supermarket operations have long been criticized for inconveniencing consumers and hindering the distribution industry. In particular, analyses of credit card big data have repeatedly shown that mandatory closures on public holidays for offline stores have not actually benefited small neighborhood businesses, contrary to the original legislative intent. In last year's government-commissioned study on improving the distribution industry system, it was found that on mandatory closure days for large supermarkets and SSMs, consumers switched to online shopping malls. Nevertheless, for the past 13 years, opposition from small business groups has repeatedly led to the extension of the sunset provision.

There must be a clear rationale for revising the law just three months after its extension. If only the late-night operation regulation is revised, this would not align with the original legislative purpose of the Distribution Act, which was to guarantee rest for supermarket workers. Labor organizations are already claiming that expanding late-night delivery will seriously undermine workers' health rights.

Workers' health rights must be protected thoroughly through other legislation. The rationale for revising the Distribution Act is to correct the unlevel playing field in the domestic market and foster fair competition. To achieve this, restrictions on offline operations should also be lifted.

Above all, abolishing regulations on large supermarket operations on public holidays is essential to revitalize "K-tourism." Over the past few years, as "K-culture" has spread globally, the number of foreign tourists visiting Korea approached 19 million last year, and is expected to surpass 20 million this year. With the increasing popularity of "K-food," major supermarkets in key commercial districts such as Seoul Station are seeing more foreign tourists purchasing Korean ramen and snacks. If traditional tourist destinations such as large supermarkets are closed on Sundays, it would mean losing a rare opportunity to inject vitality into the domestic market, which is already suffering from a declining population.

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