Korea Proposes Excluding Fresh Food From Hypermarket Dawn Delivery

The Korean government has proposed excluding fresh food from hypermarket dawn delivery services in an effort to ease opposition from small business owners, sources confirmed. The move comes as the government seeks to lift a 14-year ban on early morning deliveries by large retailers.

The proposal emerged after strong pushback from traditional market vendors who primarily sell food products and fear significant losses if hypermarkets begin dawn deliveries. Despite the government's offer, small business groups continue to demand direct compensation for losses, making negotiations difficult.

According to ruling party sources on the 24th, the Ministry of SMEs and Startups reportedly presented the fresh food exclusion as a coexistence measure between hypermarkets and small businesses to the Democratic Party of Korea.

"The Democratic Party's Euljiro Committee held a meeting with small business groups at the National Assembly on the 23rd regarding hypermarket dawn delivery plans," a ruling party official said. "This proposal was reported to Democratic Party lawmakers during the meeting."

The government's proposal reflects efforts to actively persuade small business groups. Many had raised concerns that fresh food vendors, who account for the largest share of sales at traditional markets, would suffer significant revenue losses once hypermarkets launch dawn deliveries.

Lee Chung-hwan, chairman of the Korea National Traders Association, previously stated: "The moment dawn delivery is allowed for hypermarkets, our last survival rights in fresh food and daily necessities will be taken away by large corporations."

The retail industry expressed disappointment at the potential exclusion. Companies had expected dawn delivery approval would improve inventory management of fresh food, which directly affects profitability.

"We expected to absorb online demand for fresh food during late-night and early morning hours," an industry official said. "If fresh food is excluded, the significance of allowing dawn delivery is greatly diminished."

Small business groups remain opposed despite the proposal. They argue revenue losses are inevitable while the government's coexistence measures fall far short.

"If hypermarket dawn delivery is allowed, small businesses will immediately see declining sales," said Democratic Party lawmaker Oh Se-hee. "A commitment to compensate for lost revenue must come first."

Small business groups also criticized the government's proposed expansion of coexistence funds as inadequate. The government had previously suggested hypermarkets contribute 0.5-1% of increased operating profits from dawn deliveries to a coexistence fund.

"Building parking lots and repairing old buildings with expanded funds won't revive dying markets," a small business group official said. "The coexistence fund currently under discussion is woefully insufficient."

With negotiations at an impasse, the ruling party is considering broadening its outreach to small business stakeholders.

"We are also preparing measures such as selling small business products through hypermarket logistics networks, which some small business owners would support," a Democratic Party official said. "There are internal calls to hear from various small business voices, including non-statutory organizations."