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Vouchers leave supermarket franchise owners in the cold again

Published: 07 Jul. 2025, 19:15

Customers pick out vegetables at a supermarket in Seoul on July 6. [YONHAP]

As the government prepares to distribute up to 550,000 won ($400) per person in consumer vouchers starting July 21 to spur spending and aid small businesses, supermarket franchise owners find themselves left out — again.

While mom-and-pop stores and convenience store franchises will accept the vouchers, large corporate supermarkets known as Super Supermarkets (SSMs) have been excluded, a decision fueling anger among hundreds of small business owners who run these stores under big-name banners.

'We’re small business owners too'

Owners argue the policy is unfair. Unlike big-box supermarkets or company-run outlets, nearly half of all SSM branches nationwide are individually owned franchises.

The four major SSM chains in Korea — GS The Fresh, Lotte Super, Homeplus Express and Emart Everyday — operate 1,434 stores, according to data provided by each company. About 48 percent, or 689 stores, are franchise outlets.

GS The Fresh, for instance, has 550 locations across Korea, of which roughly 440, or 80 percent, are franchises.

The Grand Grocery Dogok branch, Lotte Super’s first grocery-specialized store [LOTTE SHOPPING]

"Our shop is just like any neighborhood store run by a self-employed person," said an owner in their 50s who operates a Lotte Super franchise in a provincial metropolis.

"People in this area typically choose between three large supermarkets nearby. Now, if they want to use the vouchers, they’ll be forced to shop elsewhere."

Industry insiders point out that this is unfair, since franchise brands like Daiso, Olive Young, and bb.q, as well as convenience store chains such as GS25, CU, 7-Eleven and Emart24, all accept the vouchers at outlets operated by franchisees — only company-run locations are excluded.

Policy requests fall on deaf ears

This is not the first time SSMs have been excluded from government stimulus measures. During the Covid-19 pandemic, emergency relief funds in 2020 and grants in 2021 similarly excluded SSM franchises. Although a handful of stores in the greater Seoul area accepted the payments at the time, these cases resulted from administrative slip-ups or special agreements with local governments.

Figures from the Ministry of Trade, Industry and Energy show the impact. In May 2020, after Covid-19 relief payouts, convenience store sales rose 0.8 percent from a year earlier, while SSM revenues fell 12.4 percent. The ministry cited the exclusion of SSMs from the spending program as a key reason for the slump.

The Korea Chain Store Association (KOCA), which represents retailers including supermarkets and hypermarkets, submitted a formal request to the Ministry of the Interior and Safety in 2021, urging it to include SSM franchises in future relief programs. Nothing changed.

"Other franchises are also extensions of big corporations, yet small business owners running local supermarkets under franchise agreements are being left out, which is unfair," said a KOCA official. "Many owners fear they’ll lose customers over the next four months while these vouchers are in circulation."

Customers mill around a supermarket in Seoul on June 29. [YONHAP]

Calls for realistic policies

Industry insiders are urging the government to reconsider its definition of eligible small businesses, highlighting that nearly half of all SSM outlets are owned by franchisees.

"There’s a strong perception that SSMs are purely corporate stores, so their franchises keep getting excluded," said an official at a supermarket chain. "But the system could be improved by setting clearer rules based on business models or store operations."

Meanwhile, the government has allowed Nonghyup Hanaro Mart stores in rural township-level areas — where there are no local marts, supermarkets or convenience stores — to accept the vouchers. However, critics argue that the scope is far too narrow. Of the 1,307 Hanaro Mart locations in township areas, only 125, or 9.6 percent, qualified for this exception.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY NOH YU-RIM [[email protected]]