Is Homeplus open? That tough question getting more so.

Social Affairs

Published: 28 Dec. 2022, 18:54 Updated: 28 Dec. 2022, 19:10

Is Homeplus open? That tough question getting more so.

Customers shop at Emart in Seoul. The government has reached an agreement with small shop owners to allow major retailers to provide online delivery services on their day off. [YONHAP]

Large retailers will be able to make online deliveries on the two days a month they are required to shut their stores.

They are still required to close their physical locations twice a month. The exact day will be up to local governments.

Mandatory breaks were first implemented in 2012 in an effort to help small retailers and traditional markets.

The Office for Government Policy Coordination on Wednesday said the government and small business advocates, including the Korea Merchant Association, Korea Supermarkets Alliance and the Korea Chainstores Association, have agreed to allow the online delivery by large retails even on its mandatory day offs.

Local governments will be given more autonomy on setting the days major retailers will be forced to close.

Earlier this month, Daegu city government was able to reached an agreement to allow major retailers to move mandatory day offs to weekdays instead of Sunday starting next year.

While under law, retailers and the local governments could move the required off days to during the week, most still take break on Sundays every two weeks.

“It’s been 10 years since the business restriction regulation has been implemented,” said Lee Jung-won, second vice minister of the Office for Government Policy Coordination. “During that time the retail environment has seen a significant change including strengthening of the online market.

“Also there have been demands for diversification by consumers.”

The changes announced on Wednesday still needs the approval of the Democratic Party, which holds the majority of seats at the National Assembly, and is currently at odds with the Yoon government.

“Although the reform on the regulation is out of our rights, we expect the National Assembly to fully understand what we are trying to achieve,” said Lee.

The decision is the first made by a regulation review tribunal of experts from the private sector, including economics and business professors and legal experts, that was created by the Yoon Suk-yeol government.

The result came after in-depth discussion with key industry players, including the business advocacy groups, such as the Federation of Korean Industries, and those representing small businesses and shop owners, since the regulation review tribunal’s first meeting in August.

Major retailer business hour restriction was the top priority of the regulation review board as it was a campaign promise by President Yoon.

The regulations required so-called super supermarkets, such as Emart and Lotte Mart, to close their stores on the second and fourth Sunday of every month to support traditional markets.

These retailers are also restricted from operating their stores from 12 a.m. to 10 a.m., including deliveries during this time, under the Distribution Industry Development Act.

Although the regulation was made to protect small and traditional markets, many customers complained of the inconvenience and did not seek out traditional markets as an alternative.

Instead online shopping significantly benefited from the restrictions.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]