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ISSN : 1738-3110
A Study on the Korea Distribution Promotion Policy and Adjustment Policy
Kwon, Sung-Ku
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Abstract
Purpose - The purpose of this study is to systematically review the background of the Korean distribution promotion policy and distribution adjustment policies along with related regulations and policies. Research design, data, and methodology - Domestic distribution policy and relevant laws were examined through a review of existing research literature. The results of the development process of the domestic distribution policy, promotion policies, and adjustment policies are summarized below. Results - The results are summarized as follows. First, the purpose of the development of the domestic distribution promotion policy was to strengthen the competitiveness of the small and medium business industry through structural advancement of the small and medium industry. By expanding the managerial base for the small and medium industry, a new balance could be created in the national economy. There was a requirement for an early assistance policy for small and medium businesses as a base of these businesses in the distribution industry developed from their original model of catering to a traditional market of retail shops. Since 1996, there was a need for this early assistance policy due to the expansion and rapid growth of large scale stores causing a change in the consumption pattern for distribution markets and the decline of large enterprises. Second, the government supports small and medium business distribution through distribution promotion policies by supporting an organization promoting small business and supporting innovation in the distribution system. Third, in 1961 a business mediation system was established to protect small and medium industries. The Small and Medium Business Administration advises conglomerates to postpone acquisitions, restrain expansion of the business, or to reduce business scale if small businesses undergo an adverse effect such as decreasing demand because large companies are expanding into their areas. Fourth, the Distribution Adjustment Policy managed large-scale store regulation as follows: ① limitation on construction by urban planning ordinance, ② limitation on location based on traffic impact assessments, ③ regulation based on business guidelines by chiefs of autonomous bodies, ④ regulation on mandatory holidays and limitation of business hours. This large-scale store regulation is a policy introduced by authority to increase competitiveness of small and medium business distribution by the government. Conclusions - As discussed in this study, the distribution promotion policy and distribution adjustment policy are government distribution policies focused on the protection of the small and medium distribution businesses. This study is timely, since it was planned when the strengthening of the revisions of the Distribution Industry Development Act, aimed to protect small and medium retailers and merchants, was under discussion. The significance of this study is that it offers insights for the development of new policies in the future and an opportunity to consider the background of the distribution policy by the government.
- keywords
- Large retail stores, SSM, Distribution Promotion Policy, Adjustment Policy, Distribution Industry Development Act
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