The ruling Democratic Party of Korea proposed a bill mandating that large supermarkets observe holidays as mandatory closing days, resulting in a sharp drop in the stock price of Lotte Shopping, which owns Emart and Lotte Mart.
Emart shares were traded at 83,500 won at 9:33 a.m. on the 10th on the KOSPI market. The stock price fell by 7.84% (7,100 won) compared to the previous day. At the same time, Lotte Shopping’s stock price recorded a drop of 7.7% (6,400 won), reaching 76,700 won.
Just the day before, both Emart and Lotte Shopping showed an upward trend in their stock prices. This was due to expectations that they could benefit from reviving domestic demand through the government’s second supplementary budget after the establishment of the new administration.
However, concerns grew that regulations in the retail industry could intensify centered around the ruling party, leading investors to start selling.
Immediately, lawmaker Oh Se-hee of the Democratic Party of Korea introduced a bill titled ‘Partial amendment to the Distribution Industry Development Act.’ Currently, local governments can autonomously adjust closing days. However, if this bill passes through the National Assembly, large supermarkets will have to close twice a month on public holidays.