Online retail growth and reforming Korea's retail policy

Gong Lee

No 154, KDI Focus from Korea Development Institute (KDI)

Abstract: Amid the robust expansion of online retail, the retail sector has shown a conspicuous divergence: hypermarket sales have decreased due to competition from online channels, whereas smaller formats like SSMs and convenience stores have expanded by capturing distinct, proximity-based demand. This asymmetrical outcome underscores the need to reform the Distribution Industry Development Act, shifting away from current hypermarket restrictions toward a framework that bolsters the competitiveness of brick-and-mortar retailers and addresses the regulatory imbalances between online and offline channels.

Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:kdifoc:343139

DOI: 10.22740/kdi.focus.e.2026.154

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