[Correspondent Column] Korea Overlooked in Compassion for Healing COVID-19 Wounds

[Asia Economy Beijing=Correspondent Park Sun-mi] "If possible, let's eat Korean food instead of Chinese food."

At the crossroads of choosing between Chinese food and Korean food, these days, Korean residents in Beijing choose Korean food without much hesitation. Here, Korean food refers to meals served at restaurants operated by Koreans.

In Beijing's Koreatown, Korean-run restaurants are closing one by one. Many disappear overnight without warning. Some have closed after being pushed to the brink due to crimes such as currency exchange fraud, while others have shut down because they could not afford the unreasonable rent increases imposed by Chinese landlords. Given the Chinese-style "ppanka" (prepaid card purchase) business model, where buying a prepaid card over 1000 yuan (about 170,000 KRW) usually comes with a discount, if the owner suddenly closes the business and disappears, the losses are directly passed on to the Korean community.

Recently, a Korean owner who was running a business in Wangjing closed the store after leaving an apology saying "Sorry." The store, which was temporarily closed after the Lunar New Year holiday at the end of January, could not reopen due to the spread of the novel coronavirus infection (COVID-19). Many places have yet to resume operations since the Lunar New Year holiday, and even those that reopened are facing a crisis as the number of Korean residents has sharply declined after COVID-19, and even Chinese customers have stopped visiting because the restaurants are foreign-owned, leading many to consider closing down. This is why the phrase "If possible, Korean food" is circulating among the Korean community.

Korean companies that entered China, attracted by the massive consumer market created by 1.4 billion people and the exceptional investment benefits for foreign companies, are also struggling these days. Korean companies in China, which had once faltered after the THAAD (Terminal High Altitude Area Defense) incident, were hopeful for a leap forward amid improving Korea-China relations until last year. However, they fell into despair again due to the rapid spread of COVID-19. A government official familiar with the situation of Korean companies in China classified the difficulties faced by Korean companies due to COVID-19 into three stages and diagnosed that we are currently in the middle of the third stage of crisis.

The first stage was in late January, the early outbreak period of COVID-19, when the Chinese government extended the Lunar New Year holiday to respond, restricted population movement, and ordered the suspension of operations at companies and factories. After the first stage crisis passed and companies were able to resume operations, an unexpected second stage crisis occurred. Last month, the Chinese government implemented a mandatory 14-day quarantine for incoming travelers to block overseas re-importation of COVID-19, and eventually banned foreign entries and reduced flights, preventing Korean employees from entering China. The third stage is the current situation where the spread of COVID-19 within China has calmed down, but global spread is accelerating. Although factory operations have resumed, global demand has sharply contracted, leading to reduced orders and lower operating rates. Some Korean companies have seen their operating rates drop by an average of 20%, and in some cases up to 50%, compared to before the COVID-19 outbreak.

However, the biggest problem now is that there is no clear solution. The Chinese government has prepared measures to support domestic companies affected by the COVID-19 outbreak and is considering additional measures. On the other hand, support does not reach Korean small business owners and Korean companies. For example, the Chinese government is increasing liquidity and providing low-interest funds to help banks assist companies facing financial difficulties, but foreign bank branches in China bear their own costs to support domestic companies and small businesses. As the Chinese economy slowed due to the US-China trade war, the Chinese government's voice, which once loudly proclaimed "foreign companies investing in China will be treated the same as Chinese companies" to actively attract foreign investment, is losing strength.

The lockdown lift date (April 8) for Wuhan City, Hubei Province, the origin of COVID-19, is approaching. At this moment of celebration in China, it is time for the Chinese authorities to show interest and consideration so that foreign companies and small business owners who have contributed to China's economic development can also participate.

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