Title: Business hours and mandatory holiday restrictions are unnecessary in Korea.
Class Number: 20221 Student Name : Suho Choe (최수호)
Every day we buy something and use it. In order to meet all the food and beverages needed for living, it is necessary to purchase. Purchase clothes to protect your body, purchase food ingredients to cook for energy-intensive activities, and buy safe house from disasters and dangerous animals. If we restrict our purchasing activity, it will definitely make us uncomfortable. In addition to simply restricting purchases, limiting the space available for purchase also removes our comfort. But now there are factors that interfere with our purchase. Right Business hours and mandatory holiday restriction. This is a policy for small-scale small businesses, which means that they do not open their stores every two weeks for stores that have a large share of the industrial market, such as large marts. The purpose of this regulation is to protect the market of small-scale small businesses. However, this regulation did not achieve the original goal sufficiently. Business hours and mandatory holiday restrictions are not necessary in Korea.
On January 17, 2012, the National Assembly promulgated an amendment for the distribution industry development law, which stipulates the restriction of business hours and the designation of holiday days for large-sized marts on the basis of raising the competitiveness of small-sized stores and seeking balanced development of local economy. To date, the study of the effects of the amendment has been focused on a specific region or a specific time, and there is little quantitative approach to the actual effects of the policy.
Professor Young-sun Kwon, of the Korean Advanced Institute of Science and Technology (KAIST) said that sales of regular-type supermarkets and specialty retailers, which were trying to increase sales through regulation of large-sized marts, did not increase due to regulatory policies. It is difficult to generalize, but it can be said that the intended effect of this policy is hard to find. However, it was argued that it would be necessary to reconsider whether the policy is sustainable, as consumers' inconvenience increases and consumer welfare is lowered.
Eun-Joo Lee, of the Department of Mathematical Sciences, Korean Advanced Institute of Science and Technology (KAIST) who participated in the thesis and research analyzed the effect of business hours and business day regulation on the sales of department stores, large marts, regular supermarkets, convenience stores, specialty retail stores and internet shopping across the country. Although the sales of large-sized marts have decreased due to regulations, the sales of general-purpose supermarkets and specialty retailers, which are expected to be the main beneficiary of the policy, have not increased. As a result, it did not increase sales in markets or small households. Rather, the sales of specialized retailers including traditional markets maintained a downward trend. Finally, the competitiveness of specialized retail stores in the distribution market has been continuously declining despite the regulations on large-sized marts. For example, even if today is a Sunday that regulates the operation of large-scale marts, the income of small-scale businesses today does not increase on average. Rather, it will lead to contraction of the market industry by restricting the purchases of people who were originally intended to be buyers of existing large-scale marts. In addition, researcher Bum-shik Kim, of Seoul National University analyzed that it is difficult to realize market protection by small-scale small-sized traders, Small-scale small businesses, which had been expected to benefit from the policy since the inception of this policy for the first time in 2013, have been living with business regulatory policies for the past five years, but their real appreciation for income growth .There was no noticeable change.
It is true that the large market share of large retailers in the distribution industry market is decreasing the area that small-scale small-scale companies can occupy in the market. However, the policy of regulating the operation of large-sized marts, which is defined as the continuous operation of large-scale marts, rather than the original intention of the policy of guaranteeing the income of small-scale small-scale traders, It will have an adverse effect on you.
Large-mart business regulations hamper economic growth by reducing consumer spending. According to a study written by the best-selling author of the Public Law Journal, consumers are less motivated when they can not use the place they were originally intended to consume when they try to consume something originally. The Korean Economy has also conducted a consumer survey on the regulation of large-format mart business conducted in February 2017, according to the Korea Economy. In the survey, 23.6% of respondents answered that they do not purchase any substitute spending on the days when large-scale marts are not available due to the sales regulation policy. It does not consume on the day when the business day of the large-sized mart is regulated. In other words, it is not uncommon for people who plan to spend at large marts to consume at small retailers' stores. As a result of this phenomenon, regulations on the sale of large-sized marts can cause consumption contraction. This hinders economic growth.
There are paradoxes in the protection of large-scale small business, that is, for the common people, which is the original purpose of the policy. The purpose of large-scale mart business regulation is market protection of small-scale small-scale traders. It will limit the profits of large corporations and guarantee the interests of ordinary people. But this purpose was completely wrong. Restricting the profits of large corporations will limit the profit of the ordinary people who earn income from the profits of large corporations. For example, if a large mart fails to open twice a month, the jobs of the workers who originally worked on that day will disappear. This can lead to restructuring of large companies operating large marts. There are E-Mart, Homeplus, and Lotte Mart in representative large-scale marts that occupy a large share in the Republic of Korea. These are the services operated by Samsung and LG. Workers working in the company receive bonuses in relation to the level of profit growth of the company. In some cases, they are dismissed in relation to the level of profit reduction of the company. According to the official announcement of the President of the Korean Retailer Association in January 2016, the net profit of large-sized marts has decreased due to this policy, which is an unavoidable increase in sales in the traditional market, resulting in a total social loss of more than 2 trillion won every year. This loss will be the cause of the restructuring of the workers. Also, it was revealed that the mandatory holiday for the protection of the minors caused more damage to other small enterprises such as small suppliers and farmers. Therefore, regulation of the business of large-scale mart is to hinder the income generation of the ordinary people.
Park Han-hyuk, a Korean distribution association researcher, has studied consumer behavior patterns since the implementation of business regulatory policies in 2013. The results of the study are very positive for policy. On the day when the large marts are closed, the income of the stores operated by the small scale small businesses has increased. This can lead to the conclusion that the restrictions on the sale of large marts have increased the economic income of ordinary people.
The reason for the increase in the income of the small-scale small-sized traders is that the consumers who planned to spend in the large-sized marts moved to the stores of the small-sized small-sized merchants due to the restriction of the large- However, the loss of large-scale marts caused by this phenomenon is more than the amount of income accumulated in small-scale small businesses. This is a decline in consumption as a whole, and it can not be said that disruption of economic growth to increase the incomes of small-scale small businesses is justified.
In the case of large-scale mart business regulations, large firms should become an integral part of the market economy and become an indispensable element in the situation where small-scale small-scale contractors are becoming increasingly shrinking. Policy. In a society where a system to protect the business of small-scale small businesses is established, we can not only reduce the gap between the rich and the poor, but also can make a social check against the expansion and expansion of the multifarious industries.
Establishing a large mart sales regulatory policy to build a system to protect the business of small-scale small businesses may have adverse effects. It is the largest company that is hit hardest by this regulation because if the big corporation is damaged, the damage is also transmitted to the workers who work in the big corporation. Therefore, the regulations of large-mart business regulations hinders large-scale industry expansion and, consequently, affects the people of large corporations.
We live in a society. We are influenced by each other and our actions have a positive or negative effect on others. Also, the stimulus to someone is communicated to the people around him(or she). The policy to protect the income of small-scale small businesses, that is, the policy to protect the ordinary people, regulated the operation of large-sized marts, saying that large-scale marts operated by large corporations hinder their income generation. However, as we are related to each other, the damage caused by the business regulations of the large marts is transmitted to the workers of the companies operating the large marts. From a long-term perspective, workers in large companies may have to face restructuring. In addition, the distribution industry, which is dominated by large-scale marts operated by large corporations, will also decline, leading to an overall economic downturn. Is it possible to say that the large-scale mart business regulation policy for the common people protects the ordinary people? Rather, are not they attacking the common people who work in large companies? We have to think carefully. We are also citizens.
