Large Bakery Chain to Open Next to Local Bakery in Changwon ... Small Business Owners Criticize "Circumvented Entry"

Local small business owners in Changwon, Gyeongnam Province, have strongly protested what they call the "circumvented entry" of a large corporation bakery, which is set to open in a hotel across from a small bakery.

On April 14, Mr. A, who has operated a bakery in Jungang-dong, Seongsan-gu, Changwon City for 22 years, along with other nearby small business owners, held a press conference in front of Mr. A's bakery. They condemned the large corporation, Company B, for planning to open a bakery store, stating, "Company B’s move to open a bakery undermines the distance restriction principle established to ensure coexistence between large corporations and small businesses."

Small business owners, including the bakery owner, are protesting against the opening of a large corporation's bakery near a small bakery in Seongsan-gu, Changwon-si, Gyeongnam. Photo by Se-ryung Lee

The bakery of Company B was scheduled to open in May on the first floor of a hotel located about 40 meters in a straight line from Mr. A's bakery. However, construction for the store has recently been halted.

The 'Bakery Industry Coexistence Agreement' stipulates that when a large corporation franchise opens a store, a distance restriction of 500 meters in non-metropolitan areas and 400 meters in metropolitan areas must be maintained from existing small bakeries.

However, it is known that openings within certain large-scale department stores, big-box retailers, or hotels are classified as internal convenience facilities, and therefore, are not subject to the distance restrictions outlined in the agreement.

A banner announcing the opening of a large corporation bakery hangs on the first floor of a hotel opposite a small bakery in Seongsan-gu, Changwon-si, Gyeongnam (red circle on the left). Photo by Se-ryung Lee

Mr. A and the small business owners argued, "Company B’s bakery is designed to allow external access and is capable of serving general customers," and added, "It is not simply an internal hotel convenience facility but is essentially no different from a regular street shop."

They further asserted, "This store opening is not in line with the original intent of the exception clause, but instead represents a circumvention of that intent through a loophole."

They went on to say, "Why does a large corporation, which already has ample market share and influence, need to set up shop right next to local small business owners?" and urged, "Immediately withdraw the plan to open the store and do not undermine the purpose of the coexistence agreement."

After the press conference, a meeting was held among representatives of the Korea Bakery Association, Mr. A, and Company B, mediated by the Win-Win Growth Committee.

Company B explained, "We have notified the franchisee of the termination of the franchise contract for the store in question and completed the refund of the franchise fee."

Additionally, the company stated, "We refrain from opening stores in close proximity to small business owners, as it goes against the spirit of coexistence," and added, "We will apply even stricter standards in reviewing future new store openings."

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