As the Democratic Party of Korea won 12 of 16 metropolitan mayor and governor posts in the June 3 local elections, the retail, food, and liquor industries are closely watching shifts in local governments' household economy policies. Pledges that could affect retail and food companies in this election centered on candidates in the Seoul metropolitan area and major metropolitan races. Weekday shifts for mandatory closing days at big-box stores, allowing dawn delivery, expanding local currency programs, public delivery apps, traditional market support, and boosting the nighttime economy are seen as variables that will determine winners and losers across retail channels over the next four years.
◇ Big-box store dawn delivery likely to open up
On the 4th, the retail industry focused first on whether dawn delivery by big-box stores would be allowed and whether mandatory closing days would shift to weekdays. Rather than being a front-and-center campaign pledge by specific candidates, this issue sits at the intersection of institutional changes in the National Assembly and local governments. Recently, the National Assembly has been discussing amending the Distribution Industry Development Act to exclude e-commerce business activities from operating-hour restrictions applied to big-box stores and SSMs. If the law changes, big-box stores could use their outlets as logistics hubs to pack, release, and deliver orders late at night, enabling dawn delivery.
To shift big-box stores' mandatory closing day from Sunday to a weekday, stakeholder consultations within the region and adjustments to the local government ordinance are required. This is because mandatory closing regulations for big-box stores were introduced under the pretext of protecting traditional markets and neighborhood commercial districts.
A retail industry official said, "Adjusting dawn delivery or mandatory closing days is a long-held wish in the big-box sector, but from a local government perspective, it has to consider pushback from traditional markets and small merchants," adding, "Even if regulations are eased, they will likely be tied to measures supporting neighborhood commercial districts."
If big-box stores can offer dawn delivery, companies in fresh food, refrigerated and frozen foods, home meal replacements (HMR), and daily necessities could expect to expand sales through big-box online channels. If offline retailers such as E-MART, Lotte Mart, and Homeplus Co. can use urban store networks as logistics hubs, competition in dawn delivery is expected to intensify again with existing e-commerce players like Coupang, Kurly, and SSG.com.
In Seoul, Mayor-elect Oh Se-hoon (People Power Party) made pledges for small merchants and the nighttime economy that intersect with the retail and dining industries. During the campaign, Oh pledged to expand the total loan volume of small merchant policy funds from 2.42 trillion won to 3 trillion won and lower the effective interest rate from the current 1.9%–3.1% to 1.7%–2.9%. He also said he would raise the limit on the "Small Business Owner Safety Account," a revolving line of credit for the self-employed, and support digital transition expense for middle-aged and older small merchants.
A pledge directly connected to the liquor and dining industries is easing rules on "outdoor seating." Oh said, "We will designate a 'Seoul nighttime economy coexistence special zone' to temporarily and gradually ease road occupancy and outdoor business regulations within the zone, and stipulate the areas and hours for outdoor operations by local government ordinance."
An industry official said, "If outdoor table service in major districts like Hongdae and Euljiro is brought into the formal system, dwell times at restaurants could increase and liquor orders could rise along with it," adding, "It would likely be a positive factor for recovering on-premise consumption of beer, highballs, wine, and traditional liquor."
◇ Expansion of local currency and public delivery apps… expectations for boosting neighborhood spending
There is strong interest in expanding local currency programs. In this election, Democratic Party of Korea candidates foregrounded local currency, neighborhood commercial district support, and traditional market revitalization as key pledges for restoring local economies and stabilizing livelihoods. Local gift certificates are mainly usable at affiliated self-employed and small merchant stores within the jurisdiction, excluding big-box stores and department stores, and local governments can independently offer up to a 10% purchase discount or point accrual benefits.
In Gyeonggi Province, Governor-elect Choo Mi-ae (Democratic Party of Korea) has emphasized expanding the Gyeonggi local currency and supporting neighborhood commercial districts.
During the campaign, Choo proposed strengthening AI-based services for traditional markets, supporting online and offline sales channels for small merchants, expanding tailored policy finance, and bolstering the foundation for local startups and venture and startup growth as pledges for small merchants and ventures.
If Gyeonggi Province strengthens both local currency and public delivery apps, consumers could use discounts for delivery orders, and the self-employed could attract orders by touting lower fees than private delivery apps. This would be positive for neighborhood restaurants and small franchises, but could exert competitive pressure in some regions on private platforms such as Baemin and Coupang Eats.
Some regions also put forward pledges to foster the food industry. Governor-elect Lee Cheol-woo of North Gyeongsang Province (People Power Party) announced 10 major pledges for agriculture, livestock, and the food industry during the campaign and said he would make the province a K-food hub. The plan centers on attracting food companies, expanding contract farming, and building a system that links production, processing, distribution, and exports. Governor-elect Lee Won-taeg of North Jeolla Province (Democratic Party of Korea) proposed a regional growth strategy connecting the Iksan National Food Cluster with Saemangeum.
What matters is how the pledges are reflected in actual policy and budgets. The retail and food industries are watching for supplementary budget drafting by local governments in the second half and moves to amend local government ordinances. The impact of this local election is expected to materialize in earnest once pledges take concrete shape as actual policies.
A food industry official said, "Campaign pledges do not immediately translate into industry changes, but if they are reflected in local government budgets and ordinances, we may need to rework strategies by sales channel," adding, "Which side—big-box online channels, local commercial districts, or public delivery apps—receives policy support will be the key point to watch in the second half."