Superstore Case Study

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Restriction on Business Hours and compulsory closedown in Superstores based on Distribution Industry Development Act Article 12(2) Legitimacy at Distribution Industry Development Act Article 12(2) that regulates superstores to protect traditional market and small distributors. 201005162 Lim Ki Soo Introduction In 1990s, Superstores were emerged in South Korea. Since the first E mart that is the biggest superstore chain in South Korea opened in 1993, many superstores such as Homeplus, Lotte Mart and Costco have appeared. The superstores have grown rapidly. Otherwise, The traditional market and small distributors were collapsed because the consumer prefer the superstore for its convenience. Furthermore, some economy crisis like IMF has attacked…show more content…
However, Seoul Administrative court dismissed case. Compulsory closedown did not affect their profit significantly and common interest through this regulation is much significant. Superstores also filed a constitutional appeal in 2013. Constitutional court also dismissed case. Restriction on business hour and compulsory closedown is enforced through the ordinance, when the head of local governments that is charge of permitting superstores stipulate ordinance. Therefore, Article12(2) itself does not violate rights of choice. Superstores lodged an appeal in June 2012. Seoul Administrative Court judged that Ordinance restricting on Business hour and designating compulsory closedown is not legality. It violates purpose of “DISTRIBUTION INDUSTRY DEVELOPMENT ACT” and it is not moderate administrative process. In December 2014, Seoul high court also accept illegality of the regulation In November 19th 2015, The Supreme Court returned to a lower court for reconsideration of ruling that was in favor of the six plaintiffs, including E-mart, Homeplus and Lotte Mart, seeking nullification of local governments’ order to restrict their business hours and designate compulsory close down. The Supreme Court said Regulation is legitimate and is necessary to protect public
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