Deregulation of hypermarkets, support for traditional markets not mutually exclusive, official says
Park Yong-jin, vice chairman of the Presidential Committee on Regulatory Reform, has called for a broad review of the mandatory closure regime for hypermarkets, saying the system has failed to keep pace with a rapidly changing retail environment and is falling short of its original intent. He also raised concerns that existing regulations have done more to fuel the growth of platform companies than to protect traditional markets.
In a social media post on Wednesday, Park said the mandatory hypermarket closure system should be judged by its outcomes, not its intentions. "The results of a policy speak louder than its good intentions," he said. "It is time to revisit regulations designed for a market environment of more than a decade ago and bring them in line with today's consumer reality."
Park pointed to a growing chorus of criticism that hypermarket regulations have effectively benefited Coupang Inc rather than traditional markets and neighborhood merchants, and said that concern warranted a fresh look at the policy.
He said the system, despite its well-meaning origins, has not adequately reflected shifts in the market or changes in consumer behavior. Dual-income households in particular rely on weekends as their only practical time to shop, he said, and when hypermarkets are closed, spending flows to online retailers rather than to traditional markets.
Park also said hypermarkets face weekend operating restrictions while early-morning delivery platforms operate without equivalent regulation — running 24 hours a day, 365 days a year, while hypermarkets are required to close twice a month. He called that an uneven playing field, and said the regulations have in effect helped online platforms and early-morning delivery services grow rather than reviving traditional markets.
Park said deregulating hypermarkets and supporting traditional markets and neighborhood commercial districts are not opposing goals. What is needed, he said, is not the blanket preservation or wholesale removal of regulations, but a rational recalibration grounded in current realities, paired with meaningful support for coexistence.
He said policy should actively pursue the digital transformation of traditional markets, improvements to payment systems, marketing tied to locally sourced products, and joint promotional events — all designed to boost the vitality of local commercial districts in step with evolving consumer trends.
"I will examine this responsibly, based on voices from the field and on data," Park said. "Regulations out of step with reality will be revised, and necessary support will be strengthened."
rimsclub@heraldcorp.com
