Lawmakers now want to open overnight delivery to more players. Under a proposed revision led by the ruling Democratic Party (DP), large discount retailers would be allowed to offer the service, with supporters saying the move would help curb the dominance of online platform giant Coupang while also giving consumers more options and greater convenience.
Under the law introduced in 2012, large discount stores have been barred from operating between midnight and 10 a.m. That restriction helped create conditions in which Coupang effectively dominates the overnight delivery market. The revision would exempt online deliveries from those restricted hours to prevent any one company from monopolizing the service.
A related bill has been submitted to the National Assembly by DP lawmaker Kim Dong-ah. It would keep the current closure and operating-hour limits mandatory for large discount stores and supermarket chains but allow online deliveries without such restrictions.
But small-business owners have strongly opposed the move, warning that it would deal a severe blow to them. They argue that it would hurt them both directly and indirectly and are calling for the proposal to be scrapped. Protesters even rallied outside his office, demanding that he withdraw the proposal.
The Korea Federation of Micro Enterprise called it the removal of their last safety net. Having already lost ground to large online platforms, they argue that granting the same delivery rights to major retailers with deep pockets and extensive logistics networks would not create fair competition but would instead put even more pressure on small merchants.
Small businesses and local stores have voiced particular concern, criticizing the easing of regulations intended to curb Coupang's market dominance as a case of "burning down the house to catch a flea," arguing that small and midsize merchants should not be sacrificed in a fight among retail giants.
They also fear it could loosen the current restrictions on major retailers' business hours, which have been in place since the Constitutional Court upheld them in 2018 to promote coexistence.
Changes in the retail industry are inevitable, and regulations can be adjusted to reflect the times. But if the burden falls primarily on the most vulnerable, that deserves a second look. South Korea's 7.9 million small-business owners are a cornerstone of the economy.
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