[전문가 진단] Starfield also shuts down on Sunday… “Unrealistic regulation”

Input 2021.01.07 10:00

Distribution law enforcement 與…”Everland baseball field is called to rest”
“It’s very difficult because of the corona”…inevitable damage to businesses
Industry “If regulations are implemented, sales will decrease by more than 30%”

In addition, the distribution industry is tense as the Democratic Party decided to deal with an amendment to the Distribution Industry Development Act that applies mandatory closure regulations such as’restriction of business twice a month’ to complex shopping malls such as Starfield and Lotte Mall at an extraordinary assembly in February .

Experts made a voice saying that it should not be implemented, saying that it is “a bill that does not know the distribution market well.” It is pointed out that online shopping has already taken over, but it is unreasonable to see the market with the dichotomy of large shopping malls and traditional markets. They feared that if the regulations were implemented, the small businesses entering the store would be hurt.

Seo Yong-gu, a professor of business administration at Sookmyung Women’s University, said, “Everland and Jamsil baseball stadiums are called to take a break on Sundays.” “Complex shopping malls are facilities on a different level from hypermarkets and serve as weekend amusement parks for urbanites. Commercial facilities are only half of them. It is irrational to apply the same regulations as hypermarkets in such facilities.”

He said, “Large marts can be viewed as distribution channels for large corporations operated by 100% direct purchase, but complex shopping malls are real estate leasing businesses, which can lead to damage to self-employed people.”

◇It’s not related to the alley commercial area… The ruling party to introduce mandatory Starfield holidays

They also interpreted the use of distribution law politically. Professor Seo said, “It is stupid to regulate offline stores because they are operated by a chaebol.” “In a situation where the market is so difficult that the end of the retail business is said to be said, closing a store is like slapping a dying person on the cheek. Promoting legislation in the coronavirus crisis can only be interpreted for political purposes,” he wrote.

It is pointed out that the purpose of the law to save traditional markets and alleys will not be effective. For the same reason, although hypermarkets have been shutting down mandatory since 2012, they have not achieved clear results. According to a survey by the Korea Distribution Association, only 5.8% of consumers visited the traditional market on holidays, and 20% said they did not shop at all.

Chung-Hee Lee, professor of economics at Chung-Ang University, said, “It is difficult to see that large marts and traditional markets are in conflict.” “With the rise of online shopping, consumers do not consume offline at all. I said.

Cho Dong-geun, an emeritus professor of economics at Myongji University, also viewed it as a regulation that deprives the common people of economic opportunities. In the case of the Yeoju and Icheon shopping malls, the local economy is revitalized by Seoul people going to the suburbs and spending money, and they are trying to stop it with regulations.

Professor Cho said, “When Wal-Mart first appeared, it focused on what benefits the United States gave to low-income people, and it was diagnosed that it was effective in reducing living costs for low-income people. If it were in Korea, it would have been regulated before Wal-Mart even entered.” They say they are strong, but they are not. Small and medium-sized companies that supply shopping malls and part-time workers working there can also be subject to regulation.

Lee Han-sang, a professor at the Korea University Business School, said, “I am in a situation where it is possible to release all the regulations in a situation where the economy is difficult due to Corona 19, but it is frustrating to come up with a policy that reduces business activities. It seems that there is no consideration for the many small business owners who have entered the shopping mall.

Complex shopping malls are expected to be hit directly by mandatory closure. This is because most shopping malls are located in the suburbs, and visitors are crowded on weekends. An official at a shopping complex said, “Weekend sales are 4 to 5 times more than weekdays, and if mandatory weekend holidays are implemented twice a month, sales will shrink to the current level of two-thirds.”

◇Starfield’s collapse of local commercial district?…Experts “The damage to merchants in corona damage will be big”

Unlike hypermarkets, most stores are rented, so there is a high possibility that small business owners will suffer the loss of sales. The Korea Economic Research Institute analyzed that if a large shopping mall closes twice a month, the average sales of small business owners will decrease by 5.1% and employment by 4%.
Some point out that it is a regulation that lacks understanding of business conditions. The complex shopping mall is a complex cultural space that combines shopping, leisure, and entertainment, and has few commercial spaces. They say that they enjoy shopping and leisure together, so going to a complex shopping mall is sometimes referred to as’Malling’.

Korea is the only country in the world that restricts the weekend operation of shopping malls by law. There are no related regulations in China, and there are differences by state in the United States, but there is a trend of easing of regulations that existed in the past.

Peter Sharp, CEO of Toughman Asia, who designed Hanam Starfield, said, “It’s a regulation I’ve never seen to close on certain days. A complex shopping mall is a kind of’house’ that gathers various retailers under one roof. Hanam Starfield alone There are more than 600 brands, and this includes small shops (self-employed). In order to discuss regulations, consumers should also reflect their position.”