[NEWS IN FOCUS] Supermarkets move contentious mandatory closure days to weekdays

Industry

Published: 15 Jan. 2024, 07:00 Updated: 15 Jan. 2024, 19:23

[NEWS IN FOCUS] Supermarkets move contentious mandatory closure days to weekdays

People shop for groceries at a large supermarket in Seoul. [YONHAP]

More supermarkets in Korea are opting to close on a weekday to avoid mandatory closure on Sundays.

Large supermarkets, including hypermarkets and corporate-run supermarket chains, traditionally adhered to the Distribution Industry Development Act since 2012, which mandated closure on the second and fourth Sundays in a bid to safeguard traditional markets and local businesses and guarantee the health and the right to rest of workers. Although local governments possess the authority to determine closure days through ordinances, the early enforcement of Sunday closures in Seoul influenced widespread adoption across the country.

A decade later, the Yoon Suk Yeol administration proposed the abolition of the mandatory closure system, highlighting it as the primary focus of regulatory reform — and reignited a debate on regulatory changes for large supermarkets.

The southeastern city Daegu led the shift by designating closure on the second and fourth Mondays since February 2023. Following suit, the central city of Cheongju opted for closure on the second and fourth Wednesdays — both led by heads affiliated with the ruling party. This prompted other regions, including the capital Seoul, to consider similar adjustments.

Most recently, Dongdaemun District in eastern Seoul, home to some ten traditional markets, agreed to transition from Sunday to weekday closures in an agreement on Dec. 28. This follows Seocho District, which was the first district in Seoul to make such a decision.

Retail operators have questioned the effectiveness of the mandatory shutdown rule in safeguarding local businesses.

"Concerns have been raised about the impact on local business areas, with residents seeking supermarkets in other areas instead when local supermarkets close on Sundays," an official from Dongdaemun District said.

A four-year study by the Seoul Credit Guarantee Foundation on card transactions near large Seoul supermarkets reveals a 1.7 percent decrease in sales on closed Sundays compared to open ones.

Retail operators also contend that the shutdown rule is favorable to online platforms like Coupang and Market Kurly, given the evolving retail landscape since the 2012 revision of the Distribution Industry Development Act.

The store count for the three biggest hypermarket chains, including Emart, Lotte Mart, and Homeplus, has dropped from 410 in 2017 to 375 recently, aligning with 2012 levels due to factors such as the rapid expansion of e-commerce platforms and the Covid-19 pandemic.

"Now, Korea's distribution environment paradigm has shifted from large supermarkets versus traditional markets to online market versus offline market," said Prof. Jung Yeon-sung from the Department of Business Administration at Dankook University. "With the swift growth of online shopping and the restructuring of large offline establishments, it's clear that a change in regulatory strategies is needed at this time."

Despite potential economic benefits, small business owners and supermarket workers worry that changing mandatory closure days may favor large supermarkets and jeopardize local businesses.

Members of the Korean Mart Labor Union demand the retention of mandatory closure days for large supermarkets, insisting that Sundays should be explicitly designated. This demand, emphasizing health and rest rights, was voiced during a press conference held on March 20 in Pohang, North Gyeongsang.

The debate also extends to the labor rights of supermarket workers and the potential infringement of their weekend rest rights.

"As supermarket workers could rest at least twice a month on Sundays, this gave them the chance to join family gatherings or even plan a trip," an official from the Korean Mart Labor Union said. "However, those whose mandatory rest days have shifted to weekdays are voicing concerns about a diminishing quality of life, pointing to reduced leisure time, less family engagement, and a drop in social participation, all contributing to heightened stress and both physical and mental fatigue.

"Rather paradoxically, the central government and Seoul city seem to be scaling back workers' health and rest rights, even though they are supposed to be responsible for people's health and safety," the union said.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]