Ruling party seeks to revive push to allow early-morning deliveries by big-box retailers

[Financial News] The Institute for Democracy, the think tank of the Democratic Party of Korea (DPK), argued on the 9th that large discount stores should be allowed to offer early-morning delivery so they can compete with online platforms such as Coupang. This effectively revives the debate over early-morning deliveries by big-box retailers, which had subsided amid opposition from small-business groups. The institute also called for a redesign of mandatory closure rules and other regulations on large retailers.
In a policy briefing released the same day, the Institute for Democracy stated, "To ease the deepening monopoly of online market platforms, especially Coupang, it is essential to have system-level competition that offers comparable 'convenience, speed, trust, and after-sales service.'" It added, "Under the current distribution structure, where offline channels remain regulated while online channels face virtually no regulation, the continuation of these preferential conditions makes a further concentration of Coupang's monopoly inevitable."
Against this backdrop, the Institute for Democracy pointed to the case of Walmart in the United States, noting that offline big-box retailers there have not fallen behind online platforms thanks to innovation and competition. It called for a regulatory overhaul to foster the emergence of a so-called "K-Walmart."
The institute first highlighted how Walmart integrated its offline stores with its online system to build a massive logistics network. It argued that Korean offline big-box retailers also operate nationwide store networks and, if they combine these with online sales systems, they could compete in the market with online platforms like Coupang, paving the way for a "K-Walmart."
To achieve this, the Institute for Democracy contends that large discount stores should be allowed to handle pickup, returns, refunds, and shipments even when they are officially closed. The implication is that, for these retailers to compete with online platforms such as Coupang, which are effectively open around the clock, restrictions in this area must first be eased. This, in turn, is directly linked to the call to allow early-morning deliveries by big-box retailers.
The institute also argued that mandatory closures on public holidays should be reconsidered. It claimed that these rules have not actually revitalized neighborhood shopping districts, but instead have accelerated the shift of consumers to online channels such as Coupang.
In addition, it noted research findings suggesting that restricting new large discount stores in traditional market and neighborhood commercial areas may be counterproductive, as big-box retailers can actually help stimulate surrounding business districts. The institute added that it would be more appropriate to seek ways for large retailers, traditional markets, and neighborhood shops to coexist.
Previously, the Lee Jae-myung administration and the Democratic Party of Korea had announced plans to allow early-morning deliveries by large discount stores as a way to curb Coupang's market dominance. However, groups including the National Merchants Federation strongly protested, and as the government began searching for coexistence measures, the issue entered a lull. Many observers expect full-fledged discussions to resume after the June local elections.

gowell@fnnews.com Kim Hyeong-gu Reporter