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Gov't moves to abolish restrictions on overnight online deliveries by large offline retailers

Published: 05 Feb. 2026, 17:45

The Coupang headquarters is seen in southern Seoul on Jan. 29. [YONHAP]

The Democratic Party (DP) and the government are moving to abolish restrictions on overnight online orders and deliveries at large retail stores, arguing that the current policy has allowed e-commerce platforms such as Coupang to benefit while offline retailers face tighter regulation.

The DP, government and Blue House officials held a meeting at the Export-Import Bank of Korea headquarters in Yeouido, western Seoul, on Thursday to discuss revising the law governing business-hour restrictions on large retail outlets.

The push targets regulations commonly known as the “ban on overnight delivery,” a clause in the Distribution Industry Development Act that prevents large retail stores from accepting online orders and carrying out delivery operations outside official business hours.

Critics say the rules, introduced to protect traditional markets, have instead created a regulatory imbalance. Under the current framework, large retail stores must suspend operations from midnight to 10 a.m. and designate two mandatory closure days each month; online-only platforms have operated without such constraints. The proposed amendment would stipulate that “business activities for e-commerce transactions shall not be subject to these restrictions.”

If passed by the National Assembly, large retail stores and corporate supermarket chains will be able to conduct packaging, shipment and delivery operations during overnight hours.

People shop at Emart in eastern Seoul on Jan. 18. [Emart]

DP lawmakers say the policy shift reflects growing recognition that the restrictions have failed to meet their original goal of protecting small merchants. Instead, they argue, the rules helped accelerate the rise of platform-based retailers by blocking offline competitors from responding to changes in consumer behavior.

Until last September, the DP took a different approach, as the National Assembly’s Trade, Industry, Energy, SMEs and Startups Committee on Sept. 9, 2025, approved an extension of business-hour restrictions on large retailers through November 2029.

“At minimum, this serves as a protective fence for small merchants against encroachment by large retail stores,” Rep. Kim Won-i of the DP said at the time.

The DP’s position shifted after the Coupang data leak incident, which failed to protect the personal data of around 33 million users last year — all while criticism mounted over the platform’s growing market power.

“To meaningfully regulate Coupang, the structure of the distribution market that generates its profits must change,” a DP lawmaker on the trade committee said. “While some consumers have begun distancing themselves from the platform, viable alternatives remain limited.”

Coupang trucks are parked in Seoul on Dec. 14, 2025. [YONHAP]

Large retailer business-hour restrictions took effect in 2013 to protect traditional markets, curb late-night operations and limit excessive late-night work for retail employees.

Since then, Coupang has expanded rapidly by launching Rocket Delivery in 2014 and dawn delivery in 2018, capturing demand during hours when offline retailers were legally barred from operating. Rocket Delivery and dawn delivery are services that allow customers to receive orders the same day or overnight, respectively.

Data from the Ministry of Data and Statistics show that Coupang’s annual revenue reached 41.3 trillion won ($28 billion) in 2024, surpassing combined retail sales at domestic large retail stores, which totaled 37.1 trillion won.

Some in the retail industry argue that the policy change comes too late.

“There is broad agreement that Coupang’s dominance will not be easily overturned by a single legal revision,” a retail industry representative said. “The environment that allowed [this to happen] in the e-commerce sector has already taken shape.”

The DP has moved comparatively slowly in advancing discussions on easing regulations that affect businesses.

People shop at a traditional market in Suwon, Gyeonggi, on Feb. 3. [NEWS1]

Against this backdrop, Rep. Kim Sung-won of the People Power Party introduced on Tuesday a separate amendment that would remove not only the overnight delivery restriction but also business-hour limits and mandatory closure days.

The DP and the government considered removing the mandatory closure provision but decided against it after small merchant groups voiced opposition.

The Korea Merchant Association warned on Monday that allowing overnight delivery at large retail stores would “concentrate consumer demand at major retailers and weaken local commercial districts.”

“We are preparing the bill to encourage fair competition among domestic retailers,” Rep. Kim Dong-ah of the DP said. “Discussions will take place at the standing committee level to gather views from both the ruling and opposition parties.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY OH SO-YEONG [[email protected]]