[Report] Good Business Owners Give Up "I Just Want to Hold Even 50,000 Won"... Bowed Heads of Owners and Weary Customers

Despite the 19-Day Extension of Social Distancing, Businesses Gradually Reopen
Enduring Unfavorable Views...Zero Income if Closure Extended, "No Choice"
Weary Consumers "Understand"...Criticism Also "Must Actively Participate in Distancing"

During the two-week extension of the high-intensity social distancing period to prevent the spread of the novel coronavirus infection (COVID-19), commuters are hurrying near Seoul City Hall on their way to work. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporters Seon-ae Lee, Yoo-jin Jo, Chae-sin Hye, Seung-jin Lee] "We closed our store for two weeks to cooperate with social distancing, but now we opened it because if we don't, we feel like we'll starve to death. We want to be good business owners, but the gym next door is open, the cafe next door is open, so we can't be the only ones to die..." - Owner of a restaurant in Daebang-dong

"We couldn't hold on any longer, so we launched a special discount event, but customers still don't come into the store. I know we have to follow social distancing, but I wish even one customer wearing a mask would come in." - Owner of a cosmetics brand shop in Seocho-dong

Although the government extended social distancing measures until the 19th to prevent the spread of the novel coronavirus (COVID-19), self-employed business owners facing threats to their livelihoods are gradually reopening their businesses. This decision comes despite the government's appeals to participate in social distancing and the unfavorable views toward reopening. They agree that even though customer numbers have drastically decreased after reopening, making their livelihood difficult, it is better than extending the closure. They are doing their best to hold on to customers who are tired of social distancing.

A restaurant located in Sindorim-dong. It is open for business, but it looks quiet due to the lack of customers.

◆Giving up being a good business owner to hold onto just 50,000 won= On the evening of the 9th, a duck meat restaurant in Suwon was visited. A sign saying "We are open" was posted on the door that had been firmly closed for two weeks. The owner, Kwon Sun-young (pseudonym, 51), said, "Due to concerns about COVID-19 infection, customer visits decreased, and weekend sales dropped by about 80%. We closed the store to participate in social distancing," adding, "The landlord was worried that keeping the store closed would damage its image, and I couldn't endure having zero income anymore, so I opened the door this week," expressing caution. She appealed, "I am still struggling to operate the store, and reopening is uncomfortable, but it's better to open the store."

Kim Mi-ja (pseudonym, 48), who runs a karaoke room in Guro-gu, voluntarily closed for two weeks and reopened on the 6th. She said, "I closed to support the government's intention, but I had no choice because of my livelihood," lowering her head, "I may not be a good business owner participating in the closure, but at least I can hold onto 50,000 won, so it's better."

Some local governments promised subsidies for self-employed business owners participating in voluntary closures, but these owners agreed that operating the business is better than receiving subsidies. Kang Woo-hyuk (pseudonym, 40), who runs a cafe in Dongjak-gu, said, "I reopened after two weeks of voluntary closure, but I feel conflicted because it doesn't seem right," adding, "Department stores are having sales, and other stores are reopening one after another, so we can't be the only ones not to."

More franchise restaurant branches are also reopening. Ediya Coffee had about 70 stores closed daily at the end of February, but as of the second week of this month, the number decreased to 30. Mom's Touch, with about 30% of its stores concentrated in Daegu and Gyeongbuk regions, had many stores stop hall orders or close voluntarily, but many have recently started reopening. A Mom's Touch representative explained, "Stores are reopening after discussions with supervisors."

Consumers' expressions toward this situation are as complicated as those of business owners. While some voices call for active participation in relaxed social distancing, others nod in understanding. Office worker Choi Yong-hoon (35) said, "I was so frustrated and tired of eating home-cooked meals that I recently had a private gathering and visited my regular restaurant," adding, "We are frustrated and tired, so I can understand the feelings of those running businesses reopening."

An Innisfree store in Gangnam. Despite hosting various events to welcome customers, the store is empty.

◆Cosmetics brand shops, empty stores despite bold promotions= Cosmetics and fashion stores are launching new products and offering bold discounts to attract customers, but they are having a hard time as almost no customers visit due to social distancing. On the afternoon of the 8th, the Innisfree store located on Gangnam Boulevard was quiet despite signs announcing spring new product launches such as the "Jeju King Cherry Blossom Line" and discount events. Outside the usually crowded store, only a few pedestrians hurriedly passed by. Whenever a rare customer entered, employee Kang Soo-yeon explained, "We are running a My Shop event with a 5,000 won discount on purchases over 10,000 won."

Innisfree expanded event benefits and actively promoted sales to attract customers, but consumer responses remained cold. When asked if she came to shop, a customer lingering in front of the store said, "I'm waiting to meet a friend," adding, "I hesitate to visit offline stores because employees closely attend to customers."

The nearby LG Household & Health Care cosmetics select shop Nature Collection had a similar situation. Although a membership day event was ongoing, only two employees wearing masks were inside the store with no customers. Nature Collection was running sales on some items with increased demand due to COVID-19. The buy-one-get-one (1+1) event on cleansing creams and mask sheets was an unprecedented discount for a prime location store in Gangnam.

Descente store in Gangnam.

Employee Yang Bo-ra said, "Customer visits have decreased significantly due to COVID-19," emphasizing, "This is the first time our store has held a 50% discount event." Jeon Ye-rang, an employee at the Descente store across the street, said, "The number of people passing through Gangnam Station street is still not increasing," adding, "New products keep coming out, but customer visits remain sparse."

There was also a store advertising prices "cheaper than online." On the same day, the Beyond store inside Emart Mapo Gongdeok branch held a special event selling foam cleansing products at prices lower than the lowest online prices to attract customers. Employee Kim Soo-yeon said, "Since COVID-19, customer numbers have continuously decreased, so we hold events regularly."

A customer is looking at spring clothes at the clothing store in the Lotte Department Store Main Branch in Jung-gu, Seoul.

◆The department stores' reasons for pushing sales... mixed consumer reactions= The department store industry began spring regular sales simultaneously from the 3rd. Before starting sales, there was deep internal concern. There was external criticism for holding sales that could gather unspecified crowds and the risk of a confirmed COVID-19 case among visitors leading to store closures. However, the common industry voice was that sales could no longer be delayed due to partner companies' inventory clearance issues. Especially, the sharp decline in performance forcing all companies to consider losses was also cited as a reason.

An industry insider explained, "Most of the products in department stores are clothing, which must be consumed according to the season," adding, "If the season is missed, items are sold at rock-bottom prices or discarded." He continued, "When products sell, companies use the profits to operate factories to produce next season's products, but this virtuous cycle has collapsed."

Lotte Department Store Main Branch Sale.

Consumer reactions are mixed. Office worker Sung Joo-young (31) said, "Not buying clothes immediately doesn't mean you can't live, so I don't plan to go to department stores during times like these just because of sales, and I wonder if companies that should actively participate in social distancing had to start sales first," criticizing. In fact, Lotte Department Store's sales from the 3rd to the 7th fell 15.4% compared to last year's spring regular sales, with women's fashion sales dropping 34.6% during the same period. However, there are positive reactions. Housewife Lee Sun-hee (32) said, "Citizens seem to be exhausted now," emphasizing, "If we wear masks and are careful, such events increasing gradually will help stimulate consumption."

The atmosphere in large supermarkets is quite different. Since daily necessities dominate, consumer responses to sales in large supermarkets are mostly positive. Housewife Kim Ga-hyun (43) said, "At the beginning of the COVID-19 outbreak, I was worried about infection and shopped online a lot," adding, "But there are limits to shopping only online, and recently, sales in supermarkets have increased to promote consumption, so I am using supermarkets like before."

However, large supermarkets also have concerns about holding sales. An industry insider said, "We actively promote sales related to food ingredients," adding, "But clothing stores and others in supermarkets, excluding daily necessities, are severely affected in sales, and planning and promoting sales related to these are currently challenging due to COVID-19."

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