As a bill to revise the Distribution Industry Development Act to allow large discount stores to offer online delivery without time limits has been introduced, related discussions in and outside politics have been slow to gain traction. In particular, conflicts of interest have intensified over whether to allow online delivery of fresh food, stalling talks on revising the law.
According to the retail industry and political circles on the 30th, the bill to revise the Distribution Industry Development Act to allow large discount stores and corporate supermarkets (SSMs) to offer online delivery without time limits has seen no progress since it was introduced. Although the intent was to ease regulatory imbalances with online platforms through deregulation, the talks themselves have reached an impasse as no agreement has been reached on the key points of contention.
Kim Dong-a of the Democratic Party of Korea introduced a bill on the 5th of last month to allow online delivery by large discount stores and SSMs. The core of the bill is to maintain offline business regulations for large discount stores and others while allowing online delivery without restriction even on mandatory closing days and during late-night operating hour limits.
This reflects the recognition that regulatory imbalances among distribution channels must be addressed. Large discount stores and SSMs have been constrained in shifting online by mandatory closures and operating hour limits, while online platforms have expanded delivery services without time restrictions. According to sales trends of major retailers from the Ministry of Trade, Industry and Resources, the share of online distribution grew from 48.2% in 2020 to 59% in 2025 over the past five years.
The biggest reason full-fledged discussions have stalled is a clash of interests over whether to include "fresh food" among items eligible for online delivery. The retail industry argues that because fresh food is a key category for online grocery shopping, excluding it would blunt the effects of deregulation. A large discount store official said, "Fresh food is a key category for online grocery shopping. If you remove it, deregulation through online delivery is ineffective," adding, "If the goal is to ensure a minimal competitive environment in a distribution market tilted toward online, there should be no item restrictions."
Small-business groups, on the other hand, oppose the move, saying fresh food is an area that competes directly with traditional markets. A Korea Federation of Micro Enterprise (KFME) official said, "If large discount stores are allowed to deliver fresh food through dawn delivery, neighborhood commercial districts and traditional markets could be directly hit," adding, "If a distribution structure centered on large corporations becomes even more entrenched, it will inevitably face an existential crisis." With opposing interpretations of the same items—as a "means of restoring competitiveness" versus a "threat to livelihoods"—a structure has formed in which the gap cannot be narrowed.
Online distribution through platforms such as Coupang and Naver has grown rapidly. With consumption patterns already shifting to online, conflicts of interest over large discount stores' dawn delivery have pushed policy discussions into a zero-sum framework. A retail industry official said, "Neither side seems willing to back down—the position of large discount stores seeking deregulation-based responses and that of neighborhood commercial districts saying they cannot hold out if even existing offline demand is eroded," adding, "Both sides are at a crossroads of survival."
Political variables are cited as another reason. Small-business groups have raised the level of their protests by holding large rallies demanding a halt to discussions on revising the Distribution Industry Development Act. With figures from related groups—such as former People Power Party lawmaker Choi Seung-jae and Democratic Party lawmaker Oh Se-hee—positioned to exert influence in the legislative process, the traditional market merchants' votes have become a burden ahead of the June local elections, weakening the momentum for policy implementation. Although there is a consensus on the need to improve the system, the prevailing view in political circles is that it is not easy to push through a contentious issue with major conflicts of interest before an election. The government is said to be planning to restart discussions by coordinating stakeholders' views in April to craft a win-win plan and set a timeline for revising the law.
Lee Eun-hee, a professor in the Department of Consumer Science at Inha University, said, "It may be hasty to set deregulation in the direction of expanding online delivery simply because the share of online consumption has exceeded half," adding, "Before discussing a legal revision, there needs to be sufficient public debate and adjustment of interests, followed by a balanced policy design that considers both online and offline."
Park Sang-byeong, a professor at the Graduate School of Policy Studies at Inha University, said, "With the June local elections ahead, it will be difficult for political circles, mindful of small-business backlash, to speed up discussions on revising the law right away," but added, "Given that the distribution structure has already shifted to online, the need to tweak related systems is clear. It is highly likely that discussions on the law will continue after the elections through measures such as preparing supplementary plans."