The government has initiated behind-the-scenes mediation focused on establishing a 'cooperative fund' to resolve conflicts surrounding early morning deliveries at large supermarkets.
According to sources in the government and retail industry on the 29th, the Ministry of SMEs and Startups and the Ministry of Trade, Industry and Energy are developing detailed cooperative adjustment plans to appease small business owners who oppose the easing of regulations on early morning deliveries. Since the beginning of the year, the Ministry of SMEs has been gathering feedback from small business owners and sharing it with the Ministry of Trade, which is now probing the opinions of large retailers to finalize the conditions.
The government's proposed cooperative adjustment plan currently includes: restrictions on the sale of single items of agricultural, livestock, and fishery products priced below 10,000 won during early morning hours; the establishment of a cooperative fund exceeding 10 billion won annually; wholesale supply of large supermarket products to traditional markets and small businesses; and restrictions on new corporate supermarket openings near traditional markets.
Under the Distribution Industry Development Act, revised in 2012 to revitalize traditional markets and small businesses, large supermarkets are prohibited from operating during early morning hours (midnight to 10 a.m.) and must close for business two days a month. The current push to ease regulations centers on allowing 'delivery' during early morning hours, even if stores are not open.
However, the related amendment to the Distribution Industry Development Act has been pending since it was submitted to the National Assembly's subcommittee on industry, trade, and small and medium enterprises on May 19. Notable proposals include one from Democratic Party lawmaker Kim Dong-a, which maintains the restrictions on operating hours and mandatory closure days for large supermarkets but allows exceptions for 'online delivery.' In contrast, a proposal from People Power Party lawmaker Kim Seong-won seeks to completely abolish the regulations on mandatory closures and operating hours for large supermarkets.
The delay in processing the bill stems from deep-seated conflicts between large and small retailers. In 2022, the government launched a cooperative council for large and small retailers and signed cooperation agreements with organizations such as the National Association of Merchants, the Korean Supermarket Cooperative Federation, and the Korean Chain Store Association. At that time, they agreed to work together to allow online deliveries during the restricted hours and assist small retailers in their digital transformation. However, despite nearly nine rounds of discussions, they have failed to reach a consensus on cooperative measures.
As the government's adjustment plan becomes clearer, there are expectations for expedited processing of the bill before the National Assembly's audit in October. However, with the upcoming Chuseok holiday, lawmakers are exercising caution due to potential backlash from small business owners and labor groups, making it unlikely that the bill will be processed before the holiday.
On the other hand, small business owners and traditional market representatives are firmly opposing the amendment itself, despite the government's cooperative adjustment plan. They argue that restrictions on the sale of agricultural, livestock, and fishery products priced below 10,000 won during early morning hours and the establishment of a cooperative fund will not be sufficient to prevent large supermarkets from encroaching on late-night neighborhood markets.
A representative from the Ministry of SMEs stated, 'We are carefully coordinating a compromise plan that is acceptable to the Ministry of Trade and large retailers based on feedback from small business owners.'
* This article has been translated by AI.
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