Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Lotte World Tower will close twice a month
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Lotte World Tower in Jamsil, southeastern Seoul / Courtesy of Lotte Corp.
By Park Jae-hyuk
By Park Jae-hyuk
Lotte World Tower, Shinsegae Starfield and other mega-size shopping malls will be ordered to close twice a month from next year, in line with the Moon Jae-in administration’s five-year policy roadmap announced this week.
According to the roadmap, the multipurpose shopping malls will face the same regulations as large discount chains such as E-mart, Home plus and Lotte Mart.
The chains have been forced to close twice a month since 2012. Most local governments demanded the discount chains close their stores biweekly on Sundays. They also cannot open from midnight to 10:00 a.m.
The all-in-one shopping malls have avoided the restrictions so far, because the malls are in suburban areas, far from small shops in traditional markets.
However, President Moon has pledged to regulate the shopping malls for the sake of small retailers, claiming the malls reduce their sales.
The upcoming regulations are feared to deal severe blows not only to the retail giants, but also to their tenants and customers who regard the malls as family-friendly amenities.
Most mega-size shopping malls just lease space to their tenants, while discount chains sell their products to customers directly.
It is uncertain whether the shopping malls will close their other amenities, such as theaters, aquariums and observation decks.
Critics point out that the government policy is expected to hurt the self-employed tenants and thousands of low-income workers in the malls, rather than the conglomerates.
Starfield Hanam in Gyeonggi Province, southeast of Seoul / Courtesy of Shinsegae Group
The government has also been criticized for being ignorant about the specific concept of a multipurpose shopping complex.
“We find it difficult to come up with any countermeasures because the roadmap is too ambiguous,” a retail industry official said.
Those who will suffer most, however, seem to be the customers who visit the malls with their families on weekends.
Lotte World Tower attracts an average of 100,000 visitors a day on weekdays and 170,000 on weekends. The landmark in southeastern Seoul has become a popular tourist attraction.
Shinsegae Starfield Hanam also attracts 50,000 people on weekdays and 100,000 on weekends. The mega-size shopping mall in Gyeonggi Province aims to be a shopping theme park to please everyone, regardless of age or gender.
Most customers complain that the government is trying to deprive them of their right to choose.
“Small retailers may temporarily benefit from the regulations,” a civic group Consumer Watch said in a statement. “However, unless the small retailers introduce some innovations, the regulations will depress the retail industry, aggravating the country’s economic problems.”