COVID-19 Recession Hits Even Popular Blog Restaurants

On the 3rd, Songhwa Mural Market in Gangseo-gu, Seoul, appeared quiet due to the spread of COVID-19. Photo by Moon Hyewon

[Asia Economy Reporters Kim Cheol-hyun and Moon Hye-won] #. "Usually, only about half of the usual customers come. Mostly, it's just local residents who briefly come out to buy side dishes or basic daily necessities." A merchant met at the market sighed deeply. Due to the spread of the novel coronavirus infection (COVID-19), the number of people visiting traditional markets where crowds gather has sharply declined.

#. "There are so few customers that I am not opening my store. If I open and purchase goods for transactions, I will only incur losses." This merchant, who decided to close the store temporarily due to the lack of customers caused by COVID-19, said he started working part-time in delivery a few days ago. While the number of visitors to the market decreased, orders for daily necessities and food delivery greatly increased, leading him to find a livelihood measure due to labor shortages.

The damage to small business owners, who have been directly hit by the spread of COVID-19, is growing. The 'social distancing' measures to prevent infection spread have created a difficult 'bitter season' for them. Although the government has stepped in with various support measures, the situation on the ground is such that they have not yet fully felt the effects.

On the afternoon of the 3rd, Songhwa Mural Market in Gangseo-gu vividly showed the bitter season small business owners are experiencing. Opened in 1974, this market is famous as a cozy yet well-maintained traditional market. It gained popularity among younger generations through various TV broadcasts, and was always bustling day and night, weekdays and weekends alike. However, on this day, the usually noisy market was enveloped in silence as if it had closed down.

The market’s representative restaurant, 'Gyeongsangdo Jip,' was also unusually quiet. This restaurant, which is always fully occupied with local residents, office workers, and tourists flooding in, had most of its tables empty that day. Known for its pork ribs (mulgalbi) as the signature and only menu item, the restaurant had gained fame through TV appearances. However, it too could not escape the direct impact of COVID-19.

A young part-time worker at a fruit shop, who used to loudly call out to customers in the lively market atmosphere, said, "These days, there are so few passersby that it feels embarrassing to shout loudly. Seeing customers cautiously passing by with masks on and hunched over makes it difficult to actively engage them."

The owner of a snack bar at the market alley entrance said, "This market was quite famous due to promotions on TV broadcasts and blogs, but these days, hardly any outsiders come to visit." He added, "Most customers of the restaurants inside the market are merchants, and the clients of those merchants are mostly nearby restaurants that come to purchase agricultural and marine products wholesale and retail."

According to the Small Enterprise and Market Service Corporation, as the COVID-19 situation spreads, inquiries related to loans received through the Small Business Federation have reached 4,929 cases as of the 3rd of this month. This is nearly 2.5 times the 1,820 cases recorded on the 13th of last month when inquiries began.

The government is also rolling out various measures to support small business owners who are bearing the economic damage caused by the COVID-19 crisis. Among the supplementary budget announced that day, 1.6858 trillion won will be allocated to support small business owners and small and medium enterprises struggling due to the spread of COVID-19. Of this, 920 billion won is designated as management stabilization funds for small business owners. Experts advise that rapid execution that can be felt on the urgent front lines is most necessary. The need for measures to stimulate consumption is also emphasized. Professor Shin Chang-rak of the Department of Distribution Management at Sangji Youngseo University said, "If we do not quickly provide support now, they will inevitably perish. Whatever the policy, it needs to be implemented swiftly." He added, "It is also important to simplify procedures to increase and promptly deploy support funds. At the same time, tax reductions, payment deferrals for small business owners, and measures to stimulate consumption should be devised."

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