Ruling Party and Government Weigh Allowing Early-Morning Delivery by Large Retailers: "We Will Take Small Businesses into Account"

[Financial News] The Democratic Party of Korea and the government are considering allowing early-morning delivery services by large discount stores and corporate supermarkets (SSMs) as a way to revitalize offline commercial districts, it was confirmed on the 5th. However, officials from the government and ruling camp explained that the plan has not yet been adopted as a formal party–government agenda and is still at the stage of an individual bill being prepared by Democratic Party lawmaker Kim Dong-ah.
A key official of the Democratic Party said in a phone call with Financial News, "At the working-level party–government meeting on the 4th, the government proposed several solutions in response to the rapid growth of online markets and the widening losses in offline retail," adding, "One of the ideas mentioned was allowing large discount stores to operate late at night, but it was discussed only to that extent."
The proposal to allow late-night operations at large discount stores is known to be a plan that lawmaker Kim Dong-ah has been preparing independently. Kim intends to soon introduce a bill to amend the Distribution Industry Development Act to that effect as the lead sponsor. However, according to participants in the working-level party–government meeting, the issue was not handled as an official party–government agenda item. Because the Ministry of SMEs and Startups stressed the need to consider the impact on traditional markets and small business owners, the two sides agreed to draw up a comprehensive co-prosperity plan instead. It is understood that the Ministry of Trade, Industry and Energy and the Ministry of SMEs and Startups will first draft a proposal and then work it out in more detail.
A Democratic Party lawmaker on the National Assembly’s Trade, Industry, Energy, SMEs, and Startups Committee said, "The Ministry of Trade, Industry and Energy suggested several possible solutions, but the Ministry of SMEs and Startups said it would have to prepare a co-prosperity plan because the issue is linked to traditional markets and small merchants, so no conclusion was reached," adding, "The matter of late-night operations at large discount stores was not the main topic of discussion, and for now it remains an individual legislative initiative by lawmaker Kim Dong-ah, not something the party and government are coordinating or considering as the party line."
Even so, many in political circles expect that regulations on early-morning delivery will be eased in some form to rein in platform companies such as Coupang. They note that even without overhauling regulations on large discount stores right away, simply adding a clause that exempts e-commerce business activities from the rules could effectively lift restrictions on early-morning delivery.
uknow@fnnews.com Reporter Kim Yun-ho Reporter