Old law protecting street vendors holds back retail giants as e-commerce booms

Korea’s 15-year-old law, designed to protect small, self-employed vendors in traditional street markets from large superstore chains, is now stifling offline distributors. As retailers struggle to keep up with fast-growing e-commerce platforms, calls are growing to modernize the outdated law. Under the Distribution Industry Development Act, mandatory closures, limits on operating hours, and other regulations on big-box retailers were scheduled to expire automatically after a set date unless renewed in November last year, but the National Assembly pushed the expiration date back to 2029. Introduced in 2010 and extended in 2015, 2020, and again last year, the measure will now stay in force for almost 20 years. While some support the law for its original intent, others argue that it has undermined the competitiveness of major offline supermarkets like Emart and Homeplus, while simultaneously driving up consumer demand for online platforms such as Coupang. Experts say the restrictions on offline distributors should be eased to create a fairer market environment for both offline retailers