{"id":2204119,"date":"2024-03-07T17:12:56","date_gmt":"2024-03-07T08:12:56","guid":{"rendered":"https:\/\/koreapro.org\/?p=2204119"},"modified":"2024-03-08T01:36:22","modified_gmt":"2024-03-07T16:36:22","slug":"south-koreas-retail-war-pits-consumer-convenience-against-worker-welfare","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/03\/south-koreas-retail-war-pits-consumer-convenience-against-worker-welfare\/","title":{"rendered":"South Korea’s retail war pits consumer convenience against worker welfare"},"content":{"rendered":"

The South Korean government\u2019s proposed revision to the <\/span>Distribution Industry Development Act<\/span><\/a> has sparked a heated debate between advocates for consumer convenience and those concerned about the well-being of large-scale supermarket workers.<\/span><\/p>\n

The <\/span>proposed changes<\/span><\/a> would allow large supermarkets to operate on Sundays and public holidays while mandating closures on two weekdays each month, aiming to accommodate the needs of dual-income families and individuals living alone who face challenges with restricted shopping hours during the workweek.<\/span><\/p>\n

However, critics argue that the government\u2019s focus on consumer convenience fails to adequately address the potential negative impacts on supermarket workers and small businesses, ultimately prioritizing the interests of large retail conglomerates over the welfare of employees and local communities.<\/span><\/p>\n

ARGUMENTS FOR REFORM<\/b><\/p>\n

\u201cIn order to alleviate the inconvenience to the public caused by large supermarkets\u2019 weekend closures, the mandatory rest days must be swiftly switched to weekdays,\u201d vice trade minister Kang Kyung-sung <\/span>stated<\/span><\/a> during a press conference last month.<\/span><\/p>\n

Under the current measure, aimed at fostering small businesses and traditional markets, large supermarkets like E-mart, Homeplus and Lotte Mart must close for two designated days each month, typically the second and fourth Sundays, a practice in place since 2012.<\/span><\/p>\n

These supermarkets must also cease all operations, including online deliveries, from midnight until 10 a.m. each day, in addition to their mandated closure days.<\/span><\/p>\n

The government\u2019s new plan seeks to mitigate the disruptions faced by the public due to the existing weekend closure policy.<\/span><\/p>\n

Vice minister Kang emphasized during the press conference the need to transition mandatory closures to weekdays to alleviate inconveniences caused by weekend closures and called for regulatory improvements to expand early morning deliveries nationwide.<\/span><\/p>\n

While no representative from the Korean Mart Labor Union was present at the government forum, Lee Su-won, the head of the Dongdaemun-gu Market Activation Team, reflected upon the concerns raised by supermarket workers and called for \u201clarge companies to proactively adopt policies that prioritize the welfare of their employees.\u201d\u00a0<\/span><\/p>\n

\"\"

Three hundred supermarket workers gather to hold a press conference declaring their commitment to preserving mandatory Sunday closures (March 5, 2024) | Image: The Korean Mart Labor Union<\/a><\/em><\/p><\/div>\n

THE OPPOSING SIDE<\/b><\/p>\n

The Korean Mart Labor Union, representing workers in the retail sector, has been at the forefront of the opposition to the proposed changes to the Distribution Industry Development Act. They argue that the changes endanger the health and overall quality of life for workers, especially women in their 40s and 50s, who comprise a significant portion of the supermarket workforce.<\/span><\/p>\n

The union believes that eliminating mandatory Sunday closures will increase workloads and hinder workers\u2019 ability to engage in family and social activities due to unpredictable weekend schedules.<\/span><\/p>\n

\u201cThere is a shortage of workers as it is, and supermarkets aren\u2019t hiring workers to replace those who quit or retire. While this approach might benefit businesses, workers are exhausted and overburdened,\u201d Bae Jun-kyung, the Korean Mart Labor Union\u2019s policy director, told <\/span>Korea Pro<\/span><\/i>.<\/span><\/p>\n

Bae also explained that working on weekends leads to higher levels of depression and affects the speed of physical recovery for workers.<\/span><\/p>\n

During a <\/span>press conference<\/span><\/a> earlier this week, attended by over 300 supermarket workers from across the country and members of various political parties and civic organizations, the union expressed concerns that the Yoon administration\u2019s policies prioritize the interests of large retail stores over workers\u2019 rights and small businesses.<\/span><\/p>\n

Others also highlighted the broader societal issue of undervaluing service workers\u2019 right to rest, emphasizing the impact of weekend work on their social relationships, job satisfaction and overall quality of life.<\/span><\/p>\n

Political representatives from the main opposition Democratic Party also raised concerns about the unilateral nature of the government\u2019s proposals and the potential negative impact on small businesses and market dynamics, arguing that the mandatory closure system that was introduced in 2012 was the result of lengthy debates and discussions that lasted for years.<\/span><\/p>\n

\"\"

South Korean President Yoon Suk-yeol visits the Seomun Market in Daegu and greets merchants (Aug. 26, 2022) | Image: ROK Presidential Office<\/a><\/p><\/div>\n

SMALL BUSINESS CONCERNS<\/b><\/p>\n

The 2012 regulation mandating large retail stores to close on Sundays was initially part of a broader strategy to <\/span>level the playing field<\/span><\/a> for smaller, traditional marketplaces by curtailing the operational hours of their larger counterparts, thereby offering a competitive edge to small businesses.<\/span><\/p>\n

Daegu City\u2019s <\/span>decision<\/span><\/a> to alter the days that large retail stores had to close sparked significant attention and debate. While the city <\/span>initially reported<\/span><\/a> a notable increase in traditional market sales and consumer satisfaction after pioneering the shift from weekend to weekday closures, later research by Incheon University revealed flaws in the city\u2019s report.<\/span><\/p>\n

Incheon University\u2019s <\/span>research<\/span><\/a> revealed that Daegu\u2019s research only utilized credit card big data, which showed discrepancies compared to Statistics Korea\u2019s retail sales index. When taking this into account, traditional markets\u2019 consumer retention rate fell from 86% to 20% when large retailers shifted from weekend to weekday closures.<\/span><\/p>\n

POLITICAL BACKLASH<\/b><\/p>\n

The findings underscore the significant impact that changing mandatory closure days can have on small business operators, including those running traditional markets. The policy shift has not only increased the existential threat to these small enterprises but also led to greater operational challenges and mental stress among employees of affected supermarkets.<\/span><\/p>\n

The initiative to move mandatory closure days for large-scale retailers from weekends to weekdays has gained traction across various municipalities, primarily <\/span>supported<\/span><\/a> by local officials affiliated with the People Power Party (PPP) and endorsed by the Yoon administration as part of their effort to ease regulations.<\/span><\/p>\n

Several National Assembly members at the press conference earlier this week criticized the government\u2019s lack of consideration for the adverse effects on workers and small business owners.<\/span><\/p>\n

Yoon Hee-sook, the leader of the Progressive Party, accused the government of disseminating \u201cfake news\u201d by ignoring the detrimental impacts on local markets, stating that street vendors have been \u201cdevastated\u201d and went out of business within just one year of changing mandatory closure days.<\/span><\/p>\n

Bae Jin-gyo, a lawmaker from the Green Party, warned that further relaxing regulations on large-scale distribution companies would exacerbate the erosion of traditional markets and small business owners, given the already serious dominance of online platform companies in commercial areas.<\/span><\/p>\n

\"\"

President Yoon Suk-yeol (right) hosts the tenth \u201cNational Livelihood Discussion with the People\u201d to discuss SMEs and their interests, Feb. 8, 2024 | Image: ROK Presidential Office<\/a><\/em><\/p><\/div>\n

GENERAL ELECTIONS<\/b><\/p>\n

As the debate surrounding the proposed changes to the Distribution Industry Development Act continues, the upcoming parliamentary elections in April 2024 will likely play a significant role in determining the future of this policy. With the ruling party\u2019s <\/span>favorable prospects<\/span><\/a> in the polls, the proposed changes may gain momentum if the PPP secures a majority in the National Assembly.<\/span><\/p>\n

However, the election outcome alone will not diminish the underlying concerns raised by supermarket workers, unions and small business owners. The potential risks of altering mandatory closure days, such as the negative impact on workers\u2019 well-being and the economic vulnerability of traditional markets and small enterprises, will persist regardless of the political landscape.<\/span><\/p>\n

If the PPP successfully advances the proposed changes following the elections, policymakers will likely have to consider complementary measures to mitigate potential adverse effects, such as providing targeted support for small businesses or implementing worker protection policies.<\/span><\/p>\n

The outcome of the upcoming parliamentary elections and the subsequent policy decisions will have lasting implications for the nation\u2019s retail sector and the communities it serves.<\/span><\/p>\n

Edited by John Lee<\/span><\/i><\/p>\n

Business & Economy<\/span><\/a>Culture & Society<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"

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