Reasons for Proposal and Major Provisions

The current Act requires a person who intends to open a superstore or a quasi-superstore in a traditional commerce preservation area to register with the Mayor of the Special Self-Governing City or head of the Si/Gun/Gu, appending an evaluation report on the impact on commercial districts and a regional cooperation plan. This is to comprehensively identify the impact on, and prevent damage to, micro enterprises and traditional markets located within the vicinity of the planned store site.

However, the evaluation report on the impact on commercial districts is prepared by the person who intends to open or modify a superstore, etc. and reviewed by the head of the primary local government, which makes it difficult to consider the impact on commercial districts in the wider area adjacent to the primary local government.

The impact of supermarkets, shopping malls, and other superstores on nearby commercial districts is not confined within administrative districts, which makes it necessary to ensure the soundness and orderliness of commercial transactions and protect micro enterprises and traditional markets by strengthening cooperation with adjacent local governments.

Accordingly, the Amendment requires opinions to be sought from the councils of adjacent Special Self-Governing Cities and Si/Gun/Gu areas located within a distance specified by the Ordinance of the Ministry of Trade, Industry and Energy from the location of a superstore, thereby aiming to ensure the fairness and impartiality of evaluations of the impact on nearby commercial districts (Article 8 (6) and (7)).