Special Report

Major Supermarkets' Compulsory Closing


Since December 30 last year, the operation time of major supermarkets and super supermarkets has been limited because of the revised Distribution Industry Development Act. Since the act has been in force, major supermarkets and super supermarkets have closed on Sundays twice a month. Their operation time has been limited as well.


Pro


Recently, many people who drop by major supermarkets might have seen the announcement “Regular closing day.” Under the Distribution Industry Development Act, the government is trying to prevent major supermarkets and super supermarkets from monopolizing the market. Nowadays, major supermarkets and super supermarkets’ closing days are controversial in Korea. I think major supermarkets and super supermarkets’ closing days should continue.

First, major supermarkets and super supermarkets’ closing days revitalize traditional markets. Traditional markets’ sales are low these days. However, because of the Distribution Industry Development Act, people drop by traditional markets again. In Daejeon, traditional markets’ sales grew up to 14.5% owing to the major supermarkets and super supermarkets’ obligatory closing, according to the online newspaper Kyunghyang Daily News. Furthermore, major supermarkets and super supermarkets’ closing days revitalize the local economy as well.

Second, it gives an equal opportunity to small shopkeepers. Small shopkeepers lack competitiveness because of major supermarkets. As large companies monopolize the market, the market is not equal. Competing with large companies that have powerful capital and strength is beyond small shopkeepers’ ability. Therefore, small shopkeepers go bankrupt. On the contrary, large companies are on the up and up. It causes the rich to get richer. Thus, it is necessary for the government to take action to make small shopkeepers’ place safe by enforcing a law like the obligatory closing of major supermarkets.

Third, the cost of energy will be reduced owing to the Distribution Industry Development Act. Major supermarkets use lots of energy because major supermarkets have wide space and many lights. Usually, it costs thousands of dollars. The reduction of energy resources by major supermarkets’ compulsory closing will be an effective way of saving energy. If you decrease the use of air conditioners for only an hour per day, you can save 8400 won per air conditioner a month. In the case of major supermarkets, we can save lots of money.

As mentioned above, there are various advantages of major supermarkets’ compulsory closing like the revival of traditional markets, giving an equal opportunity to small shopkeepers, and the reduction of energy costs. Therefore, major supermarkets’ compulsory closing should continue.


By Lee Seon-nam
KMG Junior Repoter
naming187@kmu.ac.kr


Con


Recently, major supermarkets’ compulsory closing has been implemented. It is becoming a big issue. Major supermarkets’ compulsory closing has an advantage in invigorating traditional markets, but it has also made our lives inconvenient and causes many problems.

First, major supermarkets’ compulsory closing causes inconvenience to consumers who usually do shopping on weekends. In Korea, lots of people spend weekends with family shopping for groceries. Therefore, major supermarkets’ compulsory closing infringes on consumers’ rights to do shopping freely. People can’t shop on Sunday, so they have to use the supermarkets around their houses. However, consumers are damaged again because neighborhood supermarkets sell goods at high prices, using major supermarkets’ compulsory closing for their profit. According to a survey from the Small and Medium Business Administration, local supermarkets are selling goods at 50% more than major supermarkets.

Second, the economy will stagnate because of major supermarkets’ compulsory closing. According to Korean Economy TV, the losses of major supermarkets because of compulsory closing have reached 300 billion won. Farmers and fishermen’s sales and medium and small enterprises’ sales will decrease because they supply goods to major supermarkets. If major supermarkets’ sales gradually decrease, major supermarkets will decrease jobs. As the losses of major supermarkets increase, major supermarkets will cut employees’ wages or dismiss them. Therefore, major supermarkets’ compulsory closing causes great damage to the local economy.

Third, implementing major supermarkets’ compulsory closing is unreasonable because it intervenes in free market competition. The capitalist system is a system of free market competition without excessive state intervention. Compulsory closing infringes on major supermarkets’ right to freely compete. In Korea, large companies and medium and small enterprises already have shaped the market. Therefore, major supermarkets’ compulsory closing has to be stopped because the state’s intervention is improper to the flow of current market competition.

There are many problems caused by major supermarkets’ compulsory closing such as consumer rights violations, concern about economic depression, decrease of jobs, and improper policy. Therefore, major supermarkets’ compulsory closing should be stopped.


By Ji Kyung-eun
KMG Junior Repoter
dodoji93@kmu.ac.kr