Local supermarket owners are urging the government to halt discussions on allowing early morning deliveries by large retailers and to quickly implement support measures for local economies. They express growing concern as the influence of online platforms and large distribution companies continues to rise, despite indicators of economic recovery.
On August 12, the Korea Supermarket Cooperative Federation and the People's Solidarity for Participatory Democracy held a press conference in front of the Cheong Wa Dae fountain, stating, "While government statistics may suggest economic recovery, local supermarkets are contemplating closure due to the ongoing crisis in the local economy." They called for urgent measures to address the challenges faced by local businesses.
According to the Small Enterprise and Market Service, the Business Sentiment Index (BSI) for small businesses was 55.6 in July, a drop of 8.0 points from the previous month, with an outlook BSI of 71.0 for August, down 6.3 points in a month. A BSI below 100 indicates worsening economic conditions, while above 100 suggests improvement.
The number of supermarkets has also significantly decreased. The National Tax Service reported that the number of supermarkets, which exceeded 28,000 during the height of the COVID-19 pandemic in 2022, fell to 26,588 as of June this year.
While the government has announced budgets and policy funds for small businesses, critics argue that there are no structural measures in place to help small business owners increase sales and enhance competitiveness. They have raised concerns that the expansion of businesses like Coupang, Daiso, and Baedal Minjok B Mart is exacerbating their difficulties, particularly with discussions around allowing early morning and late-night deliveries by large retailers.
The federation stated, "There are moves to allow late-night deliveries by large retailers under the pretext of countering Coupang, which raises significant concerns." They called for stricter regulations on online platforms and large retail companies and urged the government to withdraw the policy allowing late-night deliveries. Additionally, they proposed expanding support for AI-based shared logistics centers and easing regulations for small business owners.
They also demanded a meeting with the President. Jeong Yeon-hee, president of the Korea Supermarket Cooperative Federation, pointed out, "While the President has met with large business leaders to hear their difficulties and discuss necessary support, there has been no such dialogue with small business owners. Meeting in person and discussing policies is an entirely different matter," emphasizing the need for a prompt meeting.
* This article has been translated by AI.
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