The Collapse of Self-Employed Businesses Proven by MERS... Chinese Massage Shops and Restaurants with Chinese Staff Also Avoided

Self-Employed in Areas Crowded with Chinese Tourists Say "Sales Dropped 30%"
Myeongdong, Gwanghwamun, Jamsil, Duty-Free Shops and Hotels Concentrated Areas Become 'Avoided Gathering Spots'
China Phobia Detected Everywhere... Hotel and Restaurant Group Reservations Flooding with Cancellations

A quiet street in Myeongdong, Seoul. Photo by Honam Moon munonam@

[Asia Economy Reporter Lee Seon-ae] "The manager at the massage shop I often visit was Chinese, so I’m thinking of stopping my visits for a while. I’m also avoiding restaurants that use Chinese ingredients. In Myeongdong, where there are many Chinese tourists, I’m trying not to schedule lunch or dinner appointments. People around me say there’s a 'China phobia' spreading, but I’m not sure about that; I just feel uneasy. It’s better to be cautious." - Office worker A

As fear and anxiety spread due to the novel coronavirus infection (Wuhan pneumonia), signs of China phobia are being detected everywhere, and small business owners are taking the direct hit. Especially in Seoul’s three major Chinese-dense areas?Daerim-dong in Yeongdeungpo-gu, Myeongdong in Jung-gu, and Jayang-dong in Gwangjin-gu?domestic small business owners are unanimously reporting that their sales have already dropped by about 30%.

On the afternoon of January 31, Daerim Central Market, which was visited, appeared relatively quiet compared to usual. Kang Ji-min (alias), who runs a shoe store there, said, "It’s very hard to even see customers at Daerim Central Market these days, and I can’t even sell five pairs of shoes a day." He raised his voice, saying, "If this situation prolongs, shouldn’t the government or local authorities come up with practical measures for merchants?"

A massage shop in Myeongdong, which used to be crowded with office workers who skipped lunch and visited, has recently seen a sharp decline in customers. The owner, Kim Soo-chul (alias), said tearfully, "Most of the massage therapists are ethnic Koreans from China, so customer visits have completely stopped. Reservations that were made are being canceled, and I’m at a loss about what to do."

The Korean Air charter flight carrying Korean residents from Wuhan, Hubei Province, China, where the novel coronavirus infection occurred, arrived at Gimpo International Airport in Gangseo-gu, Seoul on January 31. After completing departure procedures, the residents are boarding buses to leave the airport. Photo by Kim Hyun-min kimhyun81@

Small business owners in the dining industry unanimously say that group reservations have drastically decreased. Lee Sun-hee (alias), who runs a meat restaurant in Sinchon, sighed, "Who would go out late at night to eat and drink in times like these? Dinner reservations are hardly coming in, and reunions and club meetings that were scheduled are being canceled one after another."

Lee Ji-soo (alias), who runs a Korean restaurant in Myeongdong, also complained, "There used to be lines of foreign customers waiting to eat at lunch, but now we don’t even need to give out waiting numbers. People don’t want to gather and eat together, so lunch and dinner business is bound to keep failing."

Kim Min-seon (alias), who runs a Korean restaurant in Gasan-dong, said, "Our restaurant isn’t even a Chinese restaurant, but sales have sharply declined." She expressed frustration, "Actually, we hired Chinese employees, and maybe because of that, customers who came in and sat down just leave saying they won’t come back."

Office worker Kim Hee-young (43) said, "I don’t make meeting appointments these days in Euljiro, Gwanghwamun, Jamsil, Myeongdong, and Dongdaemun, where Chinese tourists flock." She emphasized, "I avoid places with many duty-free shops, department stores, and hotels, and just leave work early to go home, which feels a bit less unsettling."

On internet communities, posts frequently appear advising people not to visit restaurants, large supermarkets, and department stores. One netizen said, "I had booked a hotel buffet for a family gathering but canceled it," adding, "For now, it’s best not to even sleep at hotels or travel, just stay home."

As the situation unfolds this way, anxiety is spreading among small business owners that the domestic economy will inevitably be hit. They especially recall the 2015 Middle East Respiratory Syndrome (MERS) outbreak. Kim Seo-hyung (alias), who sells clothing at Dongdaemun Market in Seoul, said, "During MERS, sales really dropped by half without exaggeration, and it took about six months to recover." She lamented, "The current situation is unfolding similarly, and when a large-scale infectious disease spreads, merchants are the first to be hit, so it’s natural to feel anxious."

The impact on small business owners was clearly proven during the MERS outbreak. In 2015, the number of small business owners decreased by 98,000 compared to the previous year, the largest drop since after the global financial crisis in 2009 (-256,000) and 2010 (-107,000). The consumer price inflation rate in 2015 was 0.7%, the lowest since after the foreign exchange crisis in 1998 (0.8%). A low consumer price inflation rate means consumption has contracted.

This content was produced with the assistance of AI translation services.