By Kim Rahn
Discount stores in Seoul may have to shut down twice per month again, because district offices are amending ordinances about forcible closures which a local court ruled contained procedural errors.
Seoul Mayor Park Won-soon said Monday that the Sunday closures are likely to resume in November following the revision.
The central government-driven policy, which made large-sized discount chains and “super supermarkets (SSMs),” or scaled-down version of their outlets, close two Sundays a month, was designed to help mom-and-pop stores and traditional markets regain customers lost to retail giants. But gradually it was scrapped starting in June following the court verdict.
“Each of 25 district offices in the capital is rewriting related ordinances. They may announce the revised rule in September so mandatory closures will resume in November,” Park said in a radio program.
He said the measure was effective as traditional markets saw revived sales.
“The court ruled against the closure not because of the purpose of the policy but because of procedural errors,” the mayor said.
“I believe the measure will not result in a zero-sum game but rather lead to a way in which both small-sized stores and large-sized ones can prosper and consumers can be happy,” he said.
On June 22, the Seoul Administrative Court ruled the ordinances were illegal and violated the Distribution Industry Development Act because they obliged each local authority leader to order the shutdown without giving the leader a chance to decide whether the closure was necessary.
But the court acknowledged the need and purpose of the regulation, adding the procedural illegality cannot be ignored.
Park also said he plans to recommend the central government ban discount chains and SSMs from selling about 50 items that account for a huge portion of sales at mom-and-pop stores.
On the list are mainly daily items, including cigarettes, ramen, soju, makgeolli, plastic garbage bags, tofu and batteries.
But the idea has already faced opposition from discount store operators who claim the measure is autocratic.
Park said the plan is in line with the social trend of “coexistence,” adding many foreign nations limit the location or size of large discount stores.
“The number of people engaged in small-sized trade and traditional markets is huge. If they go out of business, it will result in social problems such as discord between classes, social unrest and a higher unemployment rate. To prevent these issues, large-sized distribution companies need to cooperate.”