The government tells me to put alcohol signs in a single bar… Self-employed people

Controversy is arising as the government promotes a plan to completely ban outdoor advertisements containing alcohol brands from June 30th. Not only outdoor advertisements on the rooftops of buildings, but also sales and transportation vehicles operated by local restaurants, pubs, and liquor companies will not be able to display a picture of a bottle, an advertisement picture or a sign with the name of the alcohol brand. Self-employed and liquor companies are strongly opposing it, saying that it is excessive regulation that ignores the reality.

According to the’Public Hearing Document on the Enforcement Decree of the National Health Promotion Act and the Amendment to the Enforcement Regulations’, obtained exclusively from the liquor industry by the Korea Economic Daily on the 25th, the Ministry of Health and Welfare does not limit the standards for outdoor advertising in which alcohol advertising is prohibited to exterior walls or multimedia advertising. The policy was set to apply to signboards and external promotional materials used by more than 10,000 self-employed restaurants. Until the Ministry of Health and Welfare announced the revised bill last month, the ban on alcohol advertising was only marked as’outdoor advertisements in general’. In the process of a recent public hearing, he informed specific regulations that’regular restaurants and entertainment bars are not allowed to attach any advertisements to sell alcohol on signs, banners, and posters.’ The public hearing will be held until the 5th of the following month.

When the detailed implementation plan was released, the liquor industry, the advertising industry, and the self-employed are all protesting. It is pointed out that the purpose of’promoting public health and protecting youth’s health’ is good, but it has a fatal problem in terms of regulatory timing, equity, and effectiveness.

Self-employed people are complaining, saying, “I don’t know too much about the difficult situation,” saying that in a situation where sales are suffering from a sudden drop in sales due to the novel coronavirus infection (Corona 19), the cost of replacing or fixing advertising signs will be additionally incurred. The liquor industry is raising the issue of effectiveness, saying, “Although the frequency of contact with the drinking culture through online platforms such as Netflix and YouTube is far higher than that of street advertisements, there is no legal basis or personnel to crack down on such media.”

Hong-geun Jin, a professor at the Department of Advertising and Public Relations at Kookmin University, said, “Outdoor advertising in public means such as subways can be regulated by the government, but the regulation of even the private sector is no different from that of the whole country.”

Restaurant and bar “It tastes like dying from corona…
Outdoor alcohol advertising banned from the end of June to prevent alcohol damage

Complaints of self-employed people are exploding as news of the government’s promotion of a full ban on outdoor alcohol advertising. When the subject of alcohol advertisement regulation decided to include not only outdoor large multimedia advertisements but also signs of all general restaurants and entertainment bars nationwide, he complained, “Is it necessary to fix or remove the signboard in a difficult time with Corona 19 and walk again?” Some even argue that “the government should pay for the signboard to enforce regulations.”

○ Half-segmented sales merchants “Pour oil into a house in fire”

On December 29 of last year, the Ministry of Health and Welfare promulgated a new and expanded amendment to ban alcohol advertising. This is the time when the social distancing was raised to 2.5 steps due to the spread of the novel coronavirus infection (Corona 19). It was decided to take effect on June 30, six months after the promulgation, and the legislation was announced on the 22nd of last month. In the meantime, no specific regulatory content has been known. Details came out during the industry public hearing held until the 5th of next month.

The most problematic part for self-employed people is the timing of regulation. According to the Seoul Business District Analysis System, the average sales of restaurants in Seoul in 2019 were KRW 191,33 million per year. After the outbreak of Corona 19 in 2020, it decreased by 16.7% to 159.4 million won. Quarterly, it’s more serious. Quarterly sales for the first and second quarters of 2020 remained in the low 40 million won, but quarterly sales in the third and fourth quarters, when the restrictions on operating hours in the metropolitan area were strengthened, decreased to 39.69 million won and 36.91 million won, respectively. It is the first time in 10 years that the quarterly average sales of restaurants in Seoul have fallen below 40 million won.

○Convenience stores and YouTube are not subject to regulation.

In this situation, the government has to replace even the signboards, which means that the government is “pouring oil into a burnt house.” Mr. Han, who runs a bar in Jongno-gu, Seoul, said, “The rent alone is 10 million won per month, and the combined monthly salary for part-time workers is 20 million won.” It’s only a percentage, but the law to replace the signboard is ridiculous.” The cost of replacement and repair of signboards was found to range from a minimum of 200,000 won to a maximum of 3 million won.

Some point out that this regulation is anachronistic and less effective, contrary to the purpose of legislation. If the goal is to promote national health and protect youth, it is argued that media such as Netflix and YouTube that have more exposure time due to Corona 19 should first be regulated. An official from the Ministry of Health and Welfare said, “It is practically difficult to regulate individual YouTubers or global media platforms,” and “We will crack down on internet bloggers based on advertisements by mainstream companies.”

It is also a problem that convenience stores frequently visited by adolescents are not subject to this regulation. According to Open Survey’s’Convenience Store Trend Report 2020,’ the number of use of 10 convenience stores is 4.1 times per week, and those in their 20s and 30s are 2.9 times per week. About 50,000 convenience stores have been excluded from this regulation.

○ Crisis of existence of national beer festivals

Controversy over corporate goodwill infringement is also rising. It is argued that there is no case in the world for the government to suspend normal business activities through business and logistics vehicles, which are private property of companies, alcoholic beverages transported by wholesalers, and sales personnel. An official from the liquor industry said, “Advanced countries view the liquor industry as a regulatory target and a cultural industry that grows along with gastronomy,” and said, “Allowing to sell but not to do business is an excessive regulation that hinders business activities.”

During the peak summer season, craft beer festivals and various cultural events held at tourist sites across the country are also on the verge of extinction. As the government banned outdoor advertising, alcohol-related advertisements could not be displayed at all events sponsored by companies.

“Even if liquor companies sponsor local governments, the regulation not to expose liquor product brands is valid,” said Lee Yun-shin, head of the Health Promotion Department of the Ministry of Health and Welfare.

Reporters Bora Kim/Yoojung No/Jongpil Park [email protected]