To promote balanced development in the distribution industry, the current Act allows the Special Self-governing City Mayor or head of Si/Gun/Gu to limit the registration of superstores or add conditions in traditional commerce preservation areas and restrict business hours or days for discount stores and quasi-superstores.

However, it is not allowed to designate places other than traditional markets or store streets as traditional commerce preservation areas, there is a limitation to protect small merchants as a review on opening is conducted at the registration stage after locating and building superstores, and large distribution enterprises’ expansion into multi-complex shopping malls accelerates the breakdown of local commercial areas and deepens conflicts.

In this regard, this Act aims to allow for limiting the registration of superstores after reviewing their location in advance, subject multi-complex shopping malls to business restrictions, and reasonably improve the registration system for superstores to increase its practical effectiveness.

Details

A. Expand traditional commerce preservation areas where the registration of superstores can be restricted into commerce protection areas where existing commercial areas such as traditional markets or store streets have been established, and create commerce promotion areas (Articles 13-3, 13-4, and 13-5)

B. Allow the head of a local government to order business hour limits, designate compulsory closure dates, and order compulsory closure of multi-complex shopping malls operated by the affiliates of any corporate group subject to mutual investment restriction or exceeding a certain floor area (Article 12-2)

C. Expand the scope of business types subject to the impact assessment report on commercial district, require the impact assessment agency to prepare the report by proxy, allow for disclosing the performance of a regional cooperation plan, and ban superstores from operating in places other than registered buildings (Articles 8, 8-2, 8-4, and 12-7)

D. Abolish the effective period of regulation related to restricting the registration of superstores and quasi-superstores (Article 48-2 deleted)

Conduct an impact assessment report on commercial district by proxy (Article 8-4), state items to comply with for the opening or change registration of superstores (Article 8-5), define the registration agenda of superstores (Article 8-6), specify a fact-finding investigation and ex officio action for superstores (Article 8-7), restrict operation locations for superstores (Article 12-7), set forth disaster prevention measures for superstores (Article 12-8), require that a safety officer be appointed for superstores (Article 12-9), restrict registration in commerce protection areas (Article 13-4), and impose business suspension (Article 13-6)