[COVID-19 Transformation] 'Temporary Closure' Sign Changes to 'Closed Permanently' in One Month
Self-Employed Street Vendors Cry Out on Every Street
Hongdae Commercial District Loses Foreign Tourists
Restaurants Closed Even During Lunch Hours
[Asia Economy Reporters Jo Yujin, Choi Saenhye] After the novel coronavirus disease (COVID-19) caused a major upheaval, it has somewhat retreated to the sidelines. In major commercial districts, it is easy to find places where the 'Temporary Closure' signs posted a month ago have been replaced with permanent closure notices, showing the severe blow self-employed business owners have suffered. Although the government has introduced various support measures for small business owners, these have not reached the actual sites effectively. Between ideals and reality, active policy implementation and direct support for the recipients are more necessary than ever to sustain the self-employed ecosystem that should firmly support the backbone of our economy.
On the 28th of last month, I visited Eoulmadang-ro in Hongdae, Seoul. Since the outbreak of COVID-19, the area has been quiet due to the absence of foreign tourists.
View original imageAt noon on the 28th of last month, I visited Eoulmadang-ro in Hongdae. At every closed store entrance, signs read, "Due to COVID-19, business hours start at 12:30 PM." Even the stores that were open were not doing well. Inside the only clothing store open on the street, there was not a single customer; it was completely empty.
The owner, Kwon Soon-woo (pseudonym, 40), said, "Since COVID-19, customer visits have decreased so much that there are many days with no sales at all," adding, "Today, I still haven't had my first customer." He said, "Although there are many idle days, I come out and sit here hoping to earn even a little money to pay the rent." Another nearby clothing store has been displaying a "1+1 for 10,000 won" opening sale sign for several months, but on the deserted street, it had little effect. The Hongdae commercial district has been virtually wiped out as foreign tourists, who accounted for a large portion of sales, have completely stopped coming. Demand has shifted to large shopping malls or major franchise delivery food services, where concerns about quarantine are relatively lower, delivering a direct blow to local merchants who rely on neighborhood business.
Hongdae merchants unanimously said, "Normally, this time would be crowded with foreign tourists, but since COVID-19, it has been quiet." Yoo In-ae (pseudonym, 42), who runs a cosmetics single-brand shop nearby, said, "Before COVID-19, we had about 70 to 80 foreign customers a day, but now it's hard to get even one." She lamented, "The Hongdae commercial district, which lived almost entirely off foreign tourists, has completely collapsed due to COVID-19."
Cosmetics single-brand shops have also suffered significant damage. Due to the impact of COVID-19, empty stores with 'Temporary Closure' signs or permanent closures were noticeable. The Etude store in Seogyo-dong, run by an individual, posted a temporary closure notice and suspended operations. The Innisfree store, also individually operated, put some employees on unpaid leave to reduce fixed costs as customers decreased. Inside this store, only a part-time worker was guarding the shop. After COVID-19, disposable sponges and makeup tools were individually packaged in plastic bags for hygiene management, but few customers visited the store.
Around 1 p.m. on the 28th of last month, the restaurant area near Yeongdeungpo Station appeared quiet. Many building exteriors displayed notices about adjusted business hours or quarantine measures due to COVID-19.
View original imageAt around 1 PM on the same day, the commercial district near Yeongdeungpo Station was also deserted. Despite it being lunchtime, many restaurants were closed, and those open had only a few employees chatting or one or two tables occupied. Kim Jong-hwa (pseudonym, 58), an employee at a traditional folk restaurant A, said, "Since COVID-19 intensified in February, sales have steadily declined with no signs of recovery," adding, "Although the situation has recently eased, the environment remains harsh."
Park Gye-ik (pseudonym, 62), who runs a squid specialty restaurant B nearby, sighed, "Since COVID-19, customers have decreased by more than one-third." The C sashimi restaurant has long put its annex building up for lease. Although a sign on the main building's exterior reads, "COVID-19, go away! Everyone, stay strong," the inside of the store was quiet. Kim Jeom-sook (pseudonym, 79), who runs a set meal restaurant D with her family, said, "Sales have dropped by more than 60% over three months," adding, "I had to close temporarily because it was impossible to continue business, but I reluctantly reopened because I have to make a living."
The situation at coffee specialty shops was also dire. Jo Hana (pseudonym, 40), who runs a coffee franchise E, said, "Being in a busy area, we used to have quite a few customers, but since COVID-19 spread, customers have dropped by more than half," adding, "The remaining customers seem to be flocking to coffee shops in the nearby large shopping mall Times Square, probably due to concerns about quarantine." Lee Young-eun (pseudonym, 44), owner of a traditional herbal tea specialty shop F, also complained, "Sales have dropped by more than 70% since COVID-19."
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Although the government has taken measures such as providing some funds to small self-employed business owners and reducing value-added tax, many self-employed people said they have not received any significant government support. Kim Jeom-sook said, "I don't even know if the government is helping self-employed people," shaking her head. Lee Young-eun also said, "I've never heard of any government support measures."
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