The government on Tuesday approved a revised regulation to force large retailers to close one or two days a month or cut operating hours as part of efforts to protect smaller businesses and traditional markets.
Under the revision to the Distribution Industry Development Law, discount stores and supermarket chains will face fines of 10 million won ($9,666) for first violation and 20 million won for the second.
Currently, the nation’s top three retail giants E-Mart, Homeplus and Lotte Mart open every day and some branches operate 24 hours a day. Their recent expansion has been criticized for negatively impacting mom-and-pop vendors.
If the new regulation is promulgated by the end of next week as scheduled, local governments will immediately carry out their own ordinances that they have been reviewing amid growing complaints from smaller businesses.
In Seoul, there are 64 discount chains and 267 super supermarkets and 88 percent of them, or 292, are operated all year round. The city’s 25 district offices have already agreed to order retailers to shut their doors every other Sunday, possibly from April 22.
“This month, five districts will implement the enforced days off and the ban on nighttime operation from midnight to 8 a.m. The same measure will take effect in all 25 districts from next month,” a Seoul city official said.
Amid resistance from companies, the Korea Chainstores Association last month filed a petition to ask the Constitutional Court to nullify the first ordinance enacted by Jeonju, the biggest city in North Jeolla Province.
By Lee Ji-yoon (
jylee@heraldcorp.com)
