Court supports restrictions on operation by large shopping malls

By Lim Chang-won Posted : June 28, 2018, 18:04 Updated : June 28, 2018, 18:04

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SEOUL -- South Korea's constitutional court rejected a petition filed by seven giant shopping mall chains against the mandatory closing of operations after midnight and twice a month, saying it is not against public interests.

The court's nine-judge panel delivered its decision by eight to one Thursday to support regulations. Local governments are allowed to limit the hours of operation by major marts from midnight to 10:00 a.m. and order their closure twice a month.

The mandatory move was introduced in January 2013 to help small businesses and relieve the strain of workers. However, E-mart, the hypermarket wing of South Korea's retail conglomerate Shinsegae, and six other large retail chains filed a joint appeal to protect their interests.

"The purpose of this legislation is to prevent distorted distribution market transactions caused by the monopoly of a few large retailers with strong capital and to establish a healthy distribution system," the court said in its decision.

Restrictions were introduced to protect traditional markets and small merchants despite losses at major shopping malls and consumer inconveniences, it said. "It is also a public benefit to secure the health rights of workers engaged in large distribution companies."

Mandatory closures have been adopted selectively in some cities because South Korea has a 24-hour lifestyle with trendy shopping destinations open overnight. There have been complaints among some consumers, but President Moon Jae-in favors tightened control on big market operators.

Specialty shops like IKEA, a Sweden-based ready-to-assemble furniture giant, were exempted, but small mall operators have conducted a study to see if they should be restricted like retail outlets. IKEA has expanded its business rapidly since it opened its first outlet in South Korea in 2014.
 
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