[Report] 'Hipjiro' Popular Among 20s and 30s... Foot Traffic Drops Due to COVID Impact

Impact of COVID-19: Crowds in Myeongdong and Euljiro, Jung-gu, Seoul Plummet
Cafe and Restaurant Streets Quiet... Selfie-Taking 2030s Disappear
Government Prepares Active Support Measures for Small Business Owners

On the 21st of last month, Euljiro Street in Jung-gu, Seoul, was filled with young people in their 20s and 30s (left), but just a week later, on the 28th of the same month (right photo), the street appeared so deserted that no people could be seen. Photo by Seunggon Han hsg@asiae.co.kr

[Asia Economy Reporter Han Seung-gon] "Certainly, foot traffic has decreased."

Due to the impact of the novel coronavirus infection (COVID-19), the streets in downtown Seoul are becoming deserted. Especially in Jung-gu Myeongdong, where crowds usually gather, as well as in Euljiro, which has recently become famous and nicknamed 'Hipjiro' because many young people visit, foot traffic has come to a halt.

'Hipjiro' is a compound word combining the English word 'hip,' which expresses uniqueness and freshness, and 'Euljiro.' Filled with printing shops and distinctive cafes, it shows a peculiar charm that attracts many young people in their 20s and 30s.

However, due to the impact of COVID-19, even the 'Hipjiro' alleys have seen a sharp decline in visits from young people. On the afternoon of Friday, the 28th of last month, one alley in 'Hipjiro' that usually attracts the most young people was completely empty. Just a week earlier (on the 21st), this alley was bustling with crowds.

On that day, Asia Economy met Mr. A, a mid-30s office worker, in one alley, who said, "Compared to usual, there definitely seem to be fewer young people," adding, "It's nice that you can enter restaurants without waiting in line, but the alley doesn't feel lively."

Another office worker in his 30s, Mr. B, also said, "I searched with a friend to find this alley, but it looks different from the photos we found online. There are no people," and added, "I think it's because people are reluctant to go out due to COVID-19." He continued, "Still, once COVID-19 ends, I think the alley will be filled with people again."

Famous restaurants popular on social networks (SNS) such as Facebook and Twitter were also empty of customers. Normally, restaurants where people would have to wait in line for more than 30 minutes had the same situation. There were no customers waiting at all.

Meanwhile, young people in their 20s who used to continuously take selfies in front of unique cafes have also disappeared. Additionally, there was no sign of young people wandering around looking for popular restaurants.

On the afternoon of the 21st of last month, Myeongdong Street in Jung-gu, Seoul. The usually crowded Myeongdong Street appears quiet due to the impact of COVID-19. Photo by Seunggon Han hsg@asiae.co.kr

The situation is the same on the streets of Myeongdong. Since January 20, the date of the first confirmed COVID-19 case in Korea, foot traffic in Myeongdong has gradually decreased. Especially after it was revealed that the epicenter of COVID-19 was Wuhan, Hubei Province, China, Myeongdong, which attracts many Chinese tourists, was hit hard.

When Asia Economy visited Myeongdong on the 21st of last month, due to concerns about COVID-19 infection through droplets, there were no people even looking for street food. The alleys that used to be crowded showed a deserted appearance.

Meanwhile, as small business owners and self-employed people continue to suffer from the impact of COVID-19, the government has stepped up active support.

On the 28th of last month, the Ministry of SMEs and Startups and others announced the 'Measures to Minimize the Impact of COVID-19 and Early Economic Recovery' at the Government Seoul Office, which includes rent reductions for small business tenants.

First, if landlords voluntarily reduce rent, 50% of the reduction amount for the first half of the year will be credited as a tax deduction against the landlord's income tax or corporate tax. This is applied temporarily only for this year.

In particular, bold tax benefits are provided to private building owners who reduce rent. If landlords voluntarily reduce rent, half of the reduction amount for the first half of the year will be credited as a tax deduction against the landlord's income or corporate tax.

Additionally, to ease the burden on franchise store owners, incentives have been prepared to support policy funds under preferential conditions depending on the company's situation and program if advertising and promotional expenses for small business owners are reduced or unavoidable business suspension losses are mitigated.

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