Feb 26 • 06:48 UTC 🇰🇷 Korea Hankyoreh (KR)

Supermarket Merchants Say Allowing Early Morning Deliveries for Large Retailers is a Death Sentence for Local Businesses

Supermarket merchants in South Korea oppose amendments to the Distribution Industry Development Act that would allow large retailers to conduct early morning deliveries, claiming it threatens local economies.

Supermarket merchants in South Korea have voiced strong opposition to a proposed amendment to the Distribution Industry Development Act, which would permit large retailers to offer early morning deliveries. At a press conference held by the Korea Supermarket Cooperative Federation in Yeongdeungpo, Seoul, industry representatives expressed concerns that this rule change would effectively be a "death sentence" for local businesses. The President of the Seoul region, Hong Cheon-pyo, argued that easing regulations for large firms like big box stores and corporate supermarkets to counteract the dominance of major online platforms, isn't fair to small merchants who are already struggling against the competition.

The government's proposal, initially framed as a way to create a fair competition environment by resolving regulatory imbalances between online and offline sales, has raised skepticism. Merchants believe that it mainly aims to contain the influence of powerful players like Coupang rather than genuinely supporting smaller businesses. Commentators within the industry, like Im Gil-jae, have called for stricter regulations on specific online platforms rather than broad rules that could harm local stores, emphasizing that such large businesses should not overpower smaller ones.

Moreover, merchants at the press conference warned that granting such privileges to large retailers under the guise of convenience could lead to the collapse of local economies, ultimately reducing consumer choice and resulting in higher societal costs such as job losses. They have urged the government to halt discussions on early morning deliveries and instead enhance regulations on online platforms, ensuring that a wide range of stakeholders are included in any future discourse on distribution reforms.

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