This paper compares the legislative frameworks of chain store locations in Korea and the United States. Korea has been regulating private store locations based on business scale or market power by designating Traditional Commercial Activity Protection...
This paper compares the legislative frameworks of chain store locations in Korea and the United States. Korea has been regulating private store locations based on business scale or market power by designating Traditional Commercial Activity Protection Zones. Due to the vagueness of this definition and its tendency to favor small-scale businesses, this term may lead to a claim of violation of WTO GATS agreements, thus potentially causing a trade conflict. Meanwhile, the United States has been adopting local zoning ordinances called Formula Business Restrictions (FBR) to protect communities from encroachment by nationwide standardized formula businesses. Since FBR aims to foster the characteristics of a unique community rather than deliberately protect small businesses from chain stores, the regulation has been declared as serving a legitimate public interest. It is suggested from the comparison that chain store location restrictions should be firmly grounded in a long-term municipal vision and be articulated in detailed spatial planning strategies from an urban planning perspective. Furthermore, implementation by local governments will open up possibilities to take into account the unique physical and social settings of different localities.