Competition Concerns To Frustrate Large-Scale Retailers' Expansion Plans

The high-value format of hypermarkets and large-scale supermarkets has resulted in leading South Korean retailers focusing their expansion efforts on this sector in recent years. However, while the South Korean retail sector has room for further expansion, it is beginning to realistically reach saturation point in attractive retail locations and the massive buying power of large-scale retailers means that smaller retailers are finding it increasingly difficult to compete aggressively on price. Indeed, the problem of overcrowding in the South Korean retail sector is now firmly in the political arena: South Korean lawmakers are currently finalising legislation that would restrict the opening and operation of large urban supermarkets and hypermarkets.

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