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Revised bill to affect supermarkets’ suits against ward offices
By Korea HeraldPublished : Jan. 3, 2013 - 20:08
The revised Retail Industry Development bill, which the National Assembly passed on Tuesday, is expected to affect large discount store chains’ legal actions against ward offices’ rules on business hours and closing days of major retailers.
Seven retail chains, including E-mart and Homeplus, have filed suits against 11 district offices in Seoul so far over their latest regulations aimed at protecting mom-and-pop stores from the retail giants’ dominance.
This week’s revision of the Retail Industry Development law, however, has prompted them to consider withdrawing the suits.
The revised bill requires large discount retailers to close between midnight and 10 a.m., and two days a month including Sundays.
“It is the law, so we must follow it. We would have to either drop the suits or file new suits against the ward offices and local governments,” said an official at E-mart.
“But we have not yet decided on what do with each of the suits. Under the new law, we can close on weekdays instead of Sundays depending on agreements with the local administrations.”
The district offices are mulling amending their ordinances once again based on the revised bill. Officials from different ward offices plan to hold a meeting next week to discuss their next steps.
Discount chains won the first round of suits against ward offices last year.
An ordinance in Seoul’s western district of Gangseo-gu, for example, that called on discount chains to close between midnight and 8 a.m. as well as on the second and fourth Sundays was suspended last July due to “procedural flaws,” such as not informing the retailers in advance or asking for their opinions.
The ward offices including Gangseo-gu took the necessary procedures including hearings and giving prior notice, and reenacted the ordinances with slightly revised wording.
The discount chains filed suits again with the Seoul Administrative Court for their cancellation.
In addition to demanding cancellation of the rules, the retailers filed for suspension of their execution, which was rejected by the Seoul Administrative Court and the Seoul High Court, as well as various local courts across the country.
The retailers sued 11 district offices in just Seoul ― Yongsan-gu, Gangdong-gu, Dongjak-gu, Seodaemun-gu, Yeongdeungpo-gu, Dongdaemun-gu, Seongdong-gu, Seongbuk-gu, Jongno-gu, Jungnang-gu and Gangseo-gu.
By Kim So-hyun (sophie@heraldcorp.com)
Seven retail chains, including E-mart and Homeplus, have filed suits against 11 district offices in Seoul so far over their latest regulations aimed at protecting mom-and-pop stores from the retail giants’ dominance.
This week’s revision of the Retail Industry Development law, however, has prompted them to consider withdrawing the suits.
The revised bill requires large discount retailers to close between midnight and 10 a.m., and two days a month including Sundays.
“It is the law, so we must follow it. We would have to either drop the suits or file new suits against the ward offices and local governments,” said an official at E-mart.
“But we have not yet decided on what do with each of the suits. Under the new law, we can close on weekdays instead of Sundays depending on agreements with the local administrations.”
The district offices are mulling amending their ordinances once again based on the revised bill. Officials from different ward offices plan to hold a meeting next week to discuss their next steps.
Discount chains won the first round of suits against ward offices last year.
An ordinance in Seoul’s western district of Gangseo-gu, for example, that called on discount chains to close between midnight and 8 a.m. as well as on the second and fourth Sundays was suspended last July due to “procedural flaws,” such as not informing the retailers in advance or asking for their opinions.
The ward offices including Gangseo-gu took the necessary procedures including hearings and giving prior notice, and reenacted the ordinances with slightly revised wording.
The discount chains filed suits again with the Seoul Administrative Court for their cancellation.
In addition to demanding cancellation of the rules, the retailers filed for suspension of their execution, which was rejected by the Seoul Administrative Court and the Seoul High Court, as well as various local courts across the country.
The retailers sued 11 district offices in just Seoul ― Yongsan-gu, Gangdong-gu, Dongjak-gu, Seodaemun-gu, Yeongdeungpo-gu, Dongdaemun-gu, Seongdong-gu, Seongbuk-gu, Jongno-gu, Jungnang-gu and Gangseo-gu.
By Kim So-hyun (sophie@heraldcorp.com)
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Articles by Korea Herald
