IKEA Not Subject to Mandatory Holidays
Controversies surrounding reverse discrimination are rising in relation to IKEA. The multinational furniture retail company is not subject to mandatory holidays unlike local major supermarkets despite the fact that it is actually a supermarket rather than a furniture store.
The Korea Furniture Association and the Korea Federation of Furniture Industry Cooperative are planning to take action so that the same regulation can be applied to IKEA through law revision. At present, a large number of furniture stores are found around IKEA Gwangmyeong and they are being increasingly affected by the lack of regulation.
In entering the South Korean market, IKEA circumvented the regulation stipulated in the Distribution Industry Development Act by publicizing itself as a furniture store. Currently, however, the areas of its stores exceed those of local supermarkets and its furniture sales ratio, approximately 40 percent, is much lower than its food and daily necessities sales ratio. The ratios are currently subject to no regulation unlike those of local supermarkets, which means IKEA can freely focus more on daily necessities, restaurants, and so on for more profits.
Under the circumstances, the furniture stores in Gwangmyeong are dwindling. Back in the 1980s, more than 40 used to be found around the current site of IKEA Gwangmyeong, the first IKEA store in South Korea. However, the number is about 20 now.