SHOPPING IN THE REPUBLIC OF KOREA

Abstract

Large modern shopping malls are replacing smaller, traditional groceries in the Republic of Korea. The present paper analyzes this phenomenon and recommends a laissez-faire public policy response. Alterations in selling format to consumers are only the tip of the iceberg in terms of changes in the economy. They are always occurring, at least in healthy economies, and, always, roadblocks are placed in their way. For example, Wal-Mart is prohibited from opening stores in a few communities. Uber and Lyft have been met with great hostility from established taxicab services. Economists even offer a generic term for this phenomenon: “restrictions on entry.” The present paper is a case study of this occurrence. It focuses on the Republic of Korea, and mainly considers grocery stores. But this small story is emblematic of what takes place in numerous countries all around the world, and many industries. We recommend a laissez-faire public policy approach to this phenomenon. If the new ways of doing things do not violate anyone’s rights, now laws should be passed interfering with the new ways of engaging in commerce. But is this not unfair to the people engaged in the old industries that are withering away? Not a bit of it. The horse and buggy industry, for example, was populated by entrepreneurs who earned a good living before the advent of the “horseless carriage.” Why should they be guaranteed profits when their offerings are no longer accepted by the public? And the same applies to automobile manufacturers, should their products ever be supplanted by even better means of transportation.