Ineffective Business-Hour Limits on Super Supermarkets Should Be Fully Abolished

The retail market has undergone major changes over the past decade or so. As online shopping has become part of everyday life, consumer purchasing patterns have changed as well, while offline stores are being restructured to serve local everyday convenience needs.

However, critics point out that regulations still remain stuck in outdated standards. In the early 2010s, regulations on super supermarts (SSMs) began under the stated goal of protecting traditional markets, including restrictions on new store openings, limits on business hours, and mandatory closures twice a month. Yet consumer activity has shifted significantly online, and offline stores are now facing growing pressure from labor costs and inventory burdens.

A system that does not fit a changing market environment can instead sap market vitality. In reality, demand for offline stores is highest during the evening hours, when office workers and dual-income households return home from work. There are also many accounts that mandatory Sunday closures actually increase inconvenience in daily life. Recently, as the possibility of restrictions on dawn delivery has been raised, complaints have emerged from households with children and dual-income families. When regulation runs counter to the times, consumer inconvenience and social costs inevitably grow.

A large share of SSMs operate in the form of franchise stores. This is a structure in which local small business owners directly manage the stores. Time and again, regulations designed to protect traditional markets end up imposing burdens on local franchise owners instead. Furthermore, recent research shows that the very premises underlying the policy have already changed.

According to an analysis by the Korea Economic Research Institute (KERI), in 26 out of 32 product categories, there was no price response at all between hypermarkets and small- and medium-sized supermarkets. This is because hypermarkets focus on bulk, regular purchases, while smaller supermarkets serve a different market centered on small-quantity, frequent purchases. In other words, the approach of “regulating large stores → protecting small merchants,” based on the assumption that the two retail formats are in direct competition, does not accurately reflect the actual market structure. The findings show that uniformly restricting the business operations of offline stores does not produce a clear effect in revitalizing surrounding commercial districts.

Major countries around the world are also moving toward easing or abolishing regulations on large retailers. This has been credited with leading to higher sales, expanded employment, and greater consumer welfare. Few countries, like Korea, strongly restrict the operations of hypermarkets and SSMs on the grounds of protecting traditional markets, and there is growing recognition that directly supporting traditional markets and small retailers is a more effective approach.

Given these trends, SSM regulations should not simply be maintained and extended over and over again. A blanket approach that ties up even neighborhood stores closely connected to people’s daily lives has clear limitations. What is needed is a more sophisticated approach that reflects local conditions, product characteristics, and consumer patterns. If regulations are too strong, consumer convenience declines and price competitiveness weakens. On the other hand, if regulations are too weak, fair competition may be undermined. The key is finding the right balance.

Ultimately, the development of the retail industry comes from expanding consumer choice. It comes from a structure in which diverse types of stores compete. It also comes from a structure in which local retail and online commerce grow together. The market is already moving in that direction. Institutions and regulations must keep pace with that shift. We cannot simply preserve a framework created 10 years ago. Flexible regulation that reflects changed conditions is needed. Only then can we prepare for the retail ecosystem of the future.

Ho-gyeong Lee

Researcher, Center for Free Enterprise (CFE)

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Original title: 효과없는 기업형슈퍼마켓 영업시간 규제, 완전폐지해야

Author: Ho-gyeong Lee

Date: 2025-11-18

Source: https://www.cfe.org/bbs/bbsDetail.php?cid=press&idx=28265