The Federation of Small Businesses on Tuesday expressed strong support for a proposed legislative measure to reinstate mandatory holiday closures for large retailers, a policy aimed at protecting small and local businesses.
In a statement released on June 11, the Federation said, “Mandatory closures for large supermarkets on public holidays serve as a basic safeguard for small business owners,” and welcomed efforts in the National Assembly to re-establish the system through formal legislation.
The holiday closure policy, originally implemented in December 2011, was officially scrapped in January 2024. Since then, local governments have been left to negotiate voluntary agreements on store closures with large retailers, resulting in a patchwork of practices across the country.
The issue gained renewed attention after the Democratic Party of Korea included mandatory public holiday closures for large supermarkets in its “20 Livelihood Agenda” announced in March. In September 2024, Democratic Party lawmaker Oh Se-hee introduced a bill to revise the Distribution Industry Development Act, which would require local authorities to designate two Sundays per month as closure days for large retail chains.
The Federation echoed that sentiment, urging lawmakers to ensure the revised legislation adheres to the law’s original intent. “To support traditional markets and local supermarkets, large retailers should close on the second and fourth Sundays of each month,” the Federation said.
The group also raised concerns about large and mid-sized ingredient supermarkets, accusing them of undermining the retail ecosystem by exploiting regulatory loopholes. “These entities are evolving into omnivorous giants, damaging fair competition in the distribution sector,” it stated, calling for these businesses to also be included in any amended regulations under the Distribution Industry Development Act.
