Major supermarkets gain weekend trading freedom in gov't overhaul

Industry

Published: 22 Jan. 2024, 15:06 Updated: 22 Jan. 2024, 21:27

Major supermarkets gain weekend trading freedom in gov't overhaul

A mart is closed on a Monday in Daegu where the city changed its mandatory closure day from Sundays to Mondays. [NEWS1]

The government will scrap the mandatory closure days imposed on large supermarket chains on public holidays and do away with the regulation limiting the amount of subsidies on the purchase of smartphones.

The decision, following a government-public debate on Monday, entails allowing large marts to operate on weekends and facilitate online deliveries during restricted hours.

In Korea, big-box retailers like Emart, Lotte Mart and Homeplus are legally obligated to close twice a month on public holidays, often aligning with the second and fourth Sundays. They were also required to shut down from midnight to 10 a.m., preventing them from delivering online orders on days when the outlets were closed.

The law, enacted in 2012, was aimed at safeguarding traditional markets and local businesses as well as guaranteeing the health and right to rest of workers. Yet it has faced criticism for inconveniencing customers and hampering weekend sales, particularly in the face of surging e-commerce growth during the Covid-19 pandemic. Lately, cities like Daegu and Seoul's Seocho and Dongdaemun districts have transitioned, or are considering transitioning, from weekend closures to weekdays, signaling a move toward abolishing this law.

Mart workers in Daegu protest day off shift to Mondays

The government will also abolish the Mobile Device Distribution Improvement Act that came into effect a decade ago. The law’s motive was to prevent mobile carriers from giving out excessive rebates and discounts on phone prices to lure customers to subscribe to their networks.

However, the law received criticism that it eliminated options for consumers to enable them to buy smartphones at cheaper prices amid rising telecommunication costs.

In November, Korea's telecommunications regulator held a meeting with the two dominant smartphone makers, Samsung Electronics and Apple, to discuss ways to expand the number of device choices or stimulate the distribution of secondhand devices to ease the burden on consumers.

The regulator stated that people are weighed down by increasing telecommunication fees due to rising factory prices for smartphones and expensive repairs.

The government has been working with mobile carriers to cut down costs, such as coming up with a wider variety of options and cheaper handles to utilize the 5G network.

Under the soon-to-be-abolished law, users who did not receive economic benefits when buying smartphones were offered other discounts on telecommunication charges. The legal jurisdiction for this clause will shift to the Telecommunications Business Act.

President Yoon Suk Yeol also pressed related regulators to "come up with practical ways to lower smartphone costs through stimulating marketing competition among mobile operators" before the law is revoked.

In another move, the government is getting rid of fixed book pricing for emerging industries like webtoons and web novels. Plans are also under way to enhance book discounts for smaller bookstores.

These changes, however, are contingent on legal amendments — posing implementation challenges in a parliament predominantly controlled by the opposition party.

"We'll put in our best efforts for the public to experience the impact of these improvements as soon as possible," according to the Office for Government Policy Coordination on Monday. "The proposed measures require legislative changes, and we will closely collaborate with the parliament to alleviate public inconveniences."

The public debate on Monday, led by the minister of government policy coordination Bang Ki-sun, due to President Yoon Suk Yeol's absence, involved participation from industry representatives, the public and various ministry officials.

BY SEO JI-EUN,LEE JAE-LIM [seo.jieun1@joongang.co.kr]