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wylies99
Joined: 13 May 2006
Location: I'm one cool cat!
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 Posted: Sat Oct 09, 2010 7:44 pm Post subject: Korea looking to ban new supermarkets |
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This is a very stupid move. Why punish supermarkets for being successful and offering consumers better goods at lower prices?
http://www.ft.com/cms/s/0/8f161528-d165-11df-96d1-00144feabdc0.html
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Seoul looks to curb super-supermarkets
By Christian Oliver and Kang Buseong in Seoul
Published: October 6 2010 17:29 | Last updated: October 6 2010 17:29
South Korean lawmakers are finalising legislation that would restrict the opening and operation of large urban supermarkets � a potential blow to Tesco, which counts the country as its biggest overseas market.
The potential impact of such stores on small grocers and neighbourhood traffic has drawn protest in cities ranging from Chicago to Mumbai. Tesco�s expansion in Thailand has been dogged by such opposition and demonstrators forced Reliance Industries� retail arm to shut some newly opened stores in the Indian state of Uttar Pradesh.
Leftwing South Korean politicians began targeting Tesco early this year when it opened a �super-supermarket� in the port of Incheon, near Seoul. Tesco is suing protesters for about Won300m ($268,000) in damages to its business. The clash spurred opposition legislators to propose restrictions that recently gained support from the ruling conservative party.
Lee Myung-bak, president, is trying to win political favour by a campaign of national �fairness� to protect small businesses from corporate predators.
One bill that is moving through the South Korean parliament would require retail chains to seek special permission from local government before opening a super-supermarket, meaning a store of 1,000-3,000 sq metres, within 500 metres of a �traditional market� � a term that is very broadly defined in order to include the ubiquitous corner shop.
Another bill, opposed by some conservatives because they fear it runs counter to World Trade Organisation rules, would enable small shopkeepers to demand the temporary closure of a super-supermarket if they were able to prove it was eroding their business. Parliamentarians hope to vote on the bills by October 25.
Tesco � which operates more than 300 stores under the Homeplus brand in South Korea � argues that both bills would conflict with WTO rules and would also unfairly target super-supermarkets while placing no restrictions on convenience store chains.
�Rather than inflicting damage, reports show the entry of a large retailer can revive market areas by increasing the floating population� visiting an urban neighbourhood for shopping, said Jeong Seon-hui, a company spokeswoman.
Tesco and Lotte � a South Korean conglomerate that is also opening super-supermarkets � say they can support local retailers by selling them franchises.
�Lotte will generally avoid entering areas where there are small and medium-sized merchants. But if we do come into conflict, there are ways we can hire them as owners of a franchise,� said Lee Chul-woo, Lotte Shopping president.
The proposed legislation will revive long disputes on whether South Korea�s inefficient small and medium-sized businesses can prosper while they are protected by preferential laws and cheap loans from banks that are pressured to lend by the government. Many economists and bankers argue the sector will only flourish if the government allows inefficient businesses to fail.
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carleverson
Joined: 04 Dec 2009
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| Posted: Sat Oct 09, 2010 8:55 pm Post subject: |
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Jeez, Korean politicians need to get a backbone....These small stores don't offer the selection of fresh quality produce and goods the big chain store offer. Nor do they offer the same level of service or competitive prices the big chain stores offer.
If these small stores want to stay in business, they should improve their selection and service. They shouldn't cry about the game being unfair to their politicians. |
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The Grumpy Senator
Joined: 13 Jan 2008
Location: Up and down the 6 line
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| Posted: Sat Oct 09, 2010 9:57 pm Post subject: |
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| WalMart and the like have eliminated the Mom & Pop shops in the States. Free Market is taken over by select mega-corps and it is no longer Free Market. If government does not protect its small businesses from extinction (whether from foreign or domestic threat), what is the point of government? |
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charliebrown84
Joined: 29 Jul 2009
Location: Daegu, South Korea
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| Posted: Sat Oct 09, 2010 9:59 pm Post subject: |
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| If it keeps from another Wal-Mart overrun, then I'm all for it. Just say no to monopolies. |
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atwood
Joined: 26 Dec 2009
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| Posted: Sat Oct 09, 2010 10:13 pm Post subject: |
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HomePlus has done a lot to improve life in Korea. Those Mom and Pop stores used to be grungy little affairs with no service and little to no selection at high prices. They were/are also home to the grumpiest people in Korea. At least they're a lot cleaner than they used to be.
Plus, why no mention of E-mart?
If they want to protect somebody, they should curb the development that's eating up all the farmland.
Funnily enough, I think this hurts the middle class as much as anything. The rich will continue to shop at the department stores. |
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crossmr
Joined: 22 Nov 2008
Location: Hwayangdong, Seoul
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| Posted: Sat Oct 09, 2010 10:30 pm Post subject: |
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| Quote: |
| If these small stores want to stay in business, they should improve their selection and service. They shouldn't cry about the game being unfair to their politicians. |
They cannot.
They can't compete that is why they go out of business. A tiny corner store does not have the buying power that E-mart, homeplus, Tesco, or any of the other big guys have, so it is impossible for them to compete on price.
Due to limited space it is also impossible for them to compete on selection.
Service is about the only thing they can compete on, but how many people are really going to trade a smile for money and availability? |
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sojusucks
Joined: 31 May 2008
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| Posted: Sat Oct 09, 2010 10:34 pm Post subject: |
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| Are they talking about Costco, too? This is just ridiculous. Why bail out smaller stores that don't even try to compete. The bigger stores offer more to customers than those rotten corner stores that treat everyone like crap. Do you really think Koreans will go back to shopping at overpriced smaller stores just because the government says so? |
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atwood
Joined: 26 Dec 2009
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| Posted: Sat Oct 09, 2010 10:39 pm Post subject: |
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| crossmr wrote: |
| Quote: |
| If these small stores want to stay in business, they should improve their selection and service. They shouldn't cry about the game being unfair to their politicians. |
They cannot.
They can't compete that is why they go out of business. A tiny corner store does not have the buying power that E-mart, homeplus, Tesco, or any of the other big guys have, so it is impossible for them to compete on price.
Due to limited space it is also impossible for them to compete on selection.
Service is about the only thing they can compete on, but how many people are really going to trade a smile for money and availability? |
The small shops do have convenience and service to offer. A place near me sells the sh(* out of ice cream because it's always 50% off. They can form cooperatives for buying power. They can keep the shelves stocked and the place clean.
Another place has high prices but stays in business due to location and a pretty good selection of fruit and lots and lots of beer and soju. I used to avoid it because the man and woman running it were so surly, but they must have sold out and the guys working there now are quite friendly, which takes a lot of the sting out of the high beer prices.
There's lots of times people don't want to make a trip to HomePlus--they're not exactly next door--and a well-run convenience store can make money. |
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northway
Joined: 05 Jul 2010
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| Posted: Sat Oct 09, 2010 10:43 pm Post subject: |
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| I've found the small grocers have inferior products for higher prices when it comes to fresh produce. |
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Ruthdes
Joined: 16 Oct 2008
Location: Seoul
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| Posted: Sat Oct 09, 2010 11:07 pm Post subject: |
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| atwood wrote: |
The small shops do have convenience and service to offer. A place near me sells the sh(* out of ice cream because it's always 50% off. They can form cooperatives for buying power. They can keep the shelves stocked and the place clean.
Another place has high prices but stays in business due to location and a pretty good selection of fruit and lots and lots of beer and soju. I used to avoid it because the man and woman running it were so surly, but they must have sold out and the guys working there now are quite friendly, which takes a lot of the sting out of the high beer prices.
There's lots of times people don't want to make a trip to HomePlus--they're not exactly next door--and a well-run convenience store can make money. |
I agree with this. I go to my local mart for the convenience of it being 1 minute's walk away, rather than the 15 minutes to Emart. Plus, it's quick to get in and out. I wish a big Homeplus would open near here. My local Emart is not a big one, so its range is lacking. I have to get the subway to Jamsil to get a decent supermarket, which is a pain in the arse, so I just put up with Emart most of the time.
But even if Homeplus opened a 5 minute walk away, I'd still do most of my day-to-day shopping at my local mart, b/c I just drop in on the way home from work and I'm in and out in 2 minutes. Plus the couple who own it are really nice and I want to support them.
These proposed laws are stupid. I do feel sorry for the small stores, but they need to adapt to fill a different niche in order to survive. I want them there for my day-to-day convenience, but I want a big supermarket for the stuff that physically doesn't fit into my small local store. |
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redaxe
Joined: 01 Dec 2008
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| Posted: Sun Oct 10, 2010 12:17 am Post subject: |
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| This is essentially why cabbage (not finished kimchi, but fresh cabbage) costs 11,900 won a head. I hope Koreans like it that way, because that's how it's going to be. |
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fermentation
Joined: 22 Jun 2009
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| Posted: Sun Oct 10, 2010 12:45 am Post subject: |
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| The Grumpy Senator wrote: |
| WalMart and the like have eliminated the Mom & Pop shops in the States. Free Market is taken over by select mega-corps and it is no longer Free Market. If government does not protect its small businesses from extinction (whether from foreign or domestic threat), what is the point of government? |
Why is it the government the one responsible for successful businesses and monopolies? Instead of crying about every little problem and looking to the government the people should take matters into their own hands. If you really hate big business running out local business, then stop shopping at Walmart or Emart. You have a choice. Government intervention always ends up making things worse. If you want government to fix all your problems, then why live in a capitalist republic? |
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Epik_Teacher
Joined: 28 Apr 2010
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| Posted: Sun Oct 10, 2010 1:08 am Post subject: |
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| The little town I live in has some very grungy stores with very little selection. They wanted to bring an EMart in, but the owners fought it tooth and nail. It's a case of the rich imposing their will on everyone else. They may finally get one here next year, but in the meantime, I do most of my shopping in Seoul because of the crappy selection. |
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alistaircandlin
Joined: 24 Sep 2004
Location: Seoul
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| Posted: Sun Oct 10, 2010 1:31 am Post subject: |
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You've gotta love this country! I only wish David Cameron had the balls to do this in the UK too. Supermarkets have completely destroyed local culture and businesses in many English towns and cities.
Peterborough, where I last lived in England, had been a thriving market town for over a thousand years before Tesco, Asda and Sainsburys turned up and ruined it. When I lived there, there was no greengrocer, butcher, fishmonger or local bakery; instead there were just these faceless branches of chain stores with no connection to the local community.
I always thought that one of the good things about Seoul is that it's easier for small businesses to start up and make a decent living. I'd much rather give my money to a local guy than increase the profits for shareholders of Tesco, Homeplus, Walmart or even Lotte.
This is not just a rant - the character of British towns has been systematically destroyed by these big supermarkets. It really cheers me up to see that Asian countries are standing up to this kind of aggressive consumer capitalism |
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GoldMember
Joined: 24 Oct 2006
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| Posted: Sun Oct 10, 2010 3:22 am Post subject: |
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Yea, how about bringing back the horse and buggy. Bunch of Obama loving, Gen Y, Michael Moore wannabee, hypocritical wankers. It's called a FREE! Market. (Free as in FREEDOM!) The big bad nasty supermarket is destroying the fabric of society. What a load of wank. Guess its true that Universities these days are dumbed down and any latte drinking, social worker without any critical thinking skills can get a degree these days. Now go get yourself a useless government job, and sponge off the the hardworking taxpayer in the private sector.
What's the bet if one if these hypocritical wankers had the choice of buying a bag of groceries for $10 less at a major supermarket v's the mom and pop store, they'd choose the supermarket. |
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