Gov't initiates move to eliminate mandatory breaks for supermarkets

The Korean government has announced its decision to eliminate the policy requiring large supermarkets to take bi-weekly breaks on Sundays. Additionally, the government plans to abolish the Mobile Device Distribution Improvement Act to enable more consumer discounts when purchasing a cellphone. However, these changes must undergo a legal revision process at the National Assembly.

On Monday, at the Content Human Resource Campus in Hongreung, Seoul, the government unveiled several measures to reform regulations related to people's daily lives during the fifth debate on improving livelihoods. "Trimming the cost of living by abolishing regulations proves more advantageous for people's livelihoods than indiscriminately funneling funds into the market,” said Minister Bang Ki-seon of the Office for Government Policy Coordination.

First and foremost, the government has opted to eliminate the mandate that required big-box retailers to close on the second and fourth Sunday of every month, initially implemented to safeguard traditional markets. Recognizing the inconvenience this posed for single-person households or working couples unable to shop on weekdays, the government has decided to do away with this restriction.

The policy requiring large supermarkets to take breaks twice a month drew considerable backlash from the retail industry. Initially intended to support small business owners and traditional markets, doubts about its effectiveness lingered for 12 years. Critics contended that it merely created inconvenience for weekend grocery shoppers.

The supermarkets welcomed the decision. “Regulating supermarkets today is ineffective in a time when online shopping platforms are thriving, according to various studies,” an official from a big-box store stated. “It will create a win-win situation, increasing consumer benefits and revitalizing local neighborhoods,” another industry source said.

However, deregulation necessitates a revision of the law. That's why some predict that it will take a considerable amount of time for the changes to be fully implemented on-site. The revised Distribution Industry Development Act bill was introduced in July 2020 at the National Assembly but has been pending at a standing committee. If it does not pass during this session at the National Assembly, it is expected to be reintroduced during the 22nd National Assembly following the April general elections. As mandatory breaks for large supermarket chains also prohibit them from offering delivery services on break days, in 2022, an agreement was reached between the Office for Government Policy Coordination and businesses to allow it. However, the proposal failed to undergo the revision process at the National Assembly, thereby thwarting the entire effort.


cero@donga.com