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Purpose - The purpose of this research paper is twofold. First, this paper attempts to grasp the damage caused to small and medium-size retail traders from online wholesalers in the field. Second, this paper engages in a psychological characterization of the enterprise spirit and the management of small and medium-size entrepreneurs in the retail trade business that are harmed by online wholesalers. Research design, data, and methodology - Data on three large Korean wholesalers engaged in ongoing litigation during the first half of 2014, including E-Mart Traders E-Club, and regarding applications for business adjustments from three large wholesalers were used. Results - The results show that small and medium-size distribution merchants seek political support for facility modernization, policy-specific funds, development of the distribution of PB products, advanced distribution techniques, joint logistics systems, establishment of distribution and logistics centers, sharing of parking facilities, and joint ordering systems. Conclusions - This study examined the damage to, and the government's support of policy demands from, small retail traders.