The Cabinet decided Tuesday to slap higher fines on large retailers for violating rules on reduced operating hours as part of efforts to protect struggling mom-and-pop stores.

Under the new Distribution Industry Development Act which came into effect in March, big-box discount chains including so-called super-supermarkets operated by giant retailers should close their shops twice a month on Sundays or public holidays, and limit their operations to between 10 a.m. and 12 a.m.

To better enforce the rule, the government will impose 30 million won ($26,700) in fines on retailers with annual sales of 10 billion won for their first violation. with the penalty rising to 70 million won for the second violation and 100 million won for the third offense.

Stores with annual revenue of less than 10 billion won will see the fine start from 10 million won for the first breach and rising to 30 million won for the second infringement and 50 million won for the third violation.

Currently, the authorities levy up to 30 million won for those who violate the rule three times regardless of their turnover. (Yonhap News)