Reasons for Proposal
The current Act introduces regulations to protect small and medium-sized merchants such as restricting the registration of superstores and the operation of discount stores. In 2010, a regulation was created to restrict the registration of such stores within 1 km of traditional markets, and another regulation was created for the mandatory closure of these stores twice a week. However, hypermarkets including shopping malls have recently expanded more, which accelerates the crisis of street stores and small merchants. To protect small and medium-sized merchants and promote shared growth among large, medium, and small stores, it is necessary to prepare a reasonable scheme that restricts the location and operation of not only discount stores, but also hypermarkets including shopping malls.
Furthermore, even though regulations to restrict the operation of large stores and compulsorily close such stores are intended to ensure the health rights of retail workers, these regulations do not apply to large retail stores such as department stores or duty-free shops (bonded stores), which leads to a serious situation such as the expansion of working hours and night shifts and infringes on workers’ health rights. In this regard, it is necessary to include department stores or duty-free shops in regulations to restrict operating hours and compulsorily close them, and designate Chuseok and Korean New Year as mandatory closed days.
In addition, it is needed to include product supply stores that receive products from large distribution companies or stores directly operated by businesses whose revenue or total assets are equivalent to a superstore or quasi-superstore or operated in the form of a directly operated chain or franchise business into quasi-superstores and subject them to legal regulations such as operating hour restrictions to protect street and small stores in surrounding areas.
Details
A. Allow the head of a local government to order business hour limits, designate compulsory closure dates, and order compulsory closure of shopping malls, department stores, duty-free shops, and specialty stores operated by the affiliates of any corporate group subject to mutual investment restriction or exceeding a certain area (Article 12-2).
B. Include stores directly operated by any business exceeding the revenue or total assets prescribed by Presidential Decree or in the form of a franchise business and product supply stores that receive products from large distribution companies into quasi-superstores (Article 2 (4) (d) and (e) newly inserted).
C. Include matters prescribed by Presidential Decree such as cooperating with local small and medium-sized distribution companies and boosting employment in a regional cooperation plan, and allow the head of a local government to publish implementation progress, recommend improvements, and issue an implementation order consecutively if the head checks the implementation of the plan and finds it insufficient (Articles 8, 8-2, 8-2 (3), and 8-2 (4) newly inserted).
D. Allow for ordering business suspension by designating no longer than 1 month if the order by the head of a local government to implement a regional cooperation plan is not followed (Article 13-4 (3)).
E. Abolish the effective period of regulation related to restricting the registration of superstores and quasi-superstores (Article 48-2 deleted).
