Restructuring Distribution Service Market: Focus on Korean Retail Market

Abstract

The paper aims at understanding the regulations that have been implemented by South Korean government on large scale retailers that aims at protecting small scale retailers in South Korea. In particular, the paper gives an insight on how the traditional retailers also known as Shi-jang have been over protected by the government because it is assumed that the Shi-jang conserves national heritage. The regulations have led to shutdowns of large scale retailers mainly on Sunday to improve employees welfare and to reduce competition among the traditional retailers. The paper further outlines the reasons why distribution services are important to the South Korean economy. The Korean economy have in the past relied on manufacturing sector, however, as it stands, the manufacturing industry has been exhausted hence the need to diversify the economy. Distribution services have all along provided customized goods and services to consumers within the South Korean economy. It further analyses the important roles that distribution services will offer to the economy should it be given more attention just like manufacturing industry. In addition, it offers an overview of the South Koreans retail industry and its development. The first large retail industry was established in 1993 with inception of E-mart. The regulations of the retail sector are also highlighted within the paper. It further compares South Korean case with selected countries like France, Germany, and Japan. Just like South Korean, the paper found out that retail shutdowns began long ago though most of the countries have fully liberalized the operations unlike South Korea. Possible solutions to the problems that are witnessed within the Republic of South Korea have also been outlined. In particular the paper suggested that it would be necessary for the economy to operate freely with little or without government interference.