Effects of the Sunday Shopping Restriction in Korea

13 Pages Posted: 18 Jan 2016

Date Written: January 2016


We examine the effectiveness of Korea's Sunday superstore shopping regulation, whose purpose is to protect small‐ and medium‐sized retailers as well as traditional markets. Applying a two‐way random‐effects regression model to the daily sales data of four megastores and four super supermarkets, we find the net sales decrease of superstores is on average 5.61% of daily sales after taking into account sales increases due to consumers' switching to weekdays. Only about 17%–19% of the reduced superstore sales are transferred to traditional markets. Based on these estimates, the compensating variation per year is predicted to be 2.4–2.5 trillion Korean won (around US $2.1–2.2 billion).

JEL Classification: L51, L88

Suggested Citation

Choi, Yun Jeong and Jeong, Jinook, Effects of the Sunday Shopping Restriction in Korea (January 2016). Contemporary Economic Policy, Vol. 34, Issue 1, pp. 203-215, 2016, Available at SSRN: https://ssrn.com/abstract=2716482 or http://dx.doi.org/10.1111/coep.12127

Yun Jeong Choi (Contact Author)

Yonsei University ( email )

Korea, Republic of (South Korea)

Jinook Jeong

Yonsei University

Korea, Republic of (South Korea)

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