Self-Employed Face Social Distancing Level 3... "Already a Ghost Town, Livelihood in Darkness" "If COVID-19 Is Controlled, Implement Quickly"

Stage 3 Upgrade Divides Self-Employed
Closure Fears Amid Prolonged COVID-19
Hope for Quick End Despite Falling Sales

On the morning of the 27th near Wangsimni Station in Seongdong-gu, Seoul. The streets are quiet as the footsteps of people decrease.

[Asia Economy Reporter Lee Jung-yoon] Kim Isu (59, female), who runs a buffet in Incheon, sent her employees home on the morning of the 19th. Although the metropolitan area’s social distancing Level 2 measures were implemented from that day due to the resurgence of COVID-19, the employees came to work unaware of this because the previous day was a substitute holiday for Liberation Day. Recently, group reservations over the weekend had barely recovered to around 16 teams, close to pre-COVID-19 levels. However, after the upgrade to Level 2, business was completely suspended, making it difficult to even pay the salaries of her five employees. Kim said, "The sudden upgrade to Level 2 ruined weekend sales," adding, "We barely survived with the government’s employment retention subsidies, but if the business suspension continues, we might have to close down."

With the all-out spread of COVID-19, the government is considering raising social distancing to Level 3, pushing self-employed business owners to the brink of collapse. Self-employed individuals, who had been enduring by reducing staff due to the prolonged pandemic, are increasingly fearful of closure ahead of the so-called 'lockdown,' which restricts movement under Level 3 measures. According to Statistics Korea on the 27th, as of the end of July, there were a total of 5,548,000 self-employed persons in South Korea. This is a decrease of 127,000 (2.2%) from July last year (5,675,000). Among them, 'self-employed with employees' (1,345,000) decreased by 175,000 (-11.5%) compared to July last year (1,520,000), showing a larger decline.

Among the eight self-employed individuals interviewed by this publication, seven agreed that closure would be inevitable if the government raises the social distancing to Level 3. Kim Gyewon (64), who runs a restaurant near Wangsimni Station in Seongdong-gu, Seoul, expressed frustration, saying, "Raising social distancing to Level 3 means telling all self-employed people to die." He said that since Level 2 was implemented, customer numbers had dropped by about half, and there were days with no sales at all. He added, "Prime ministers or government officials don’t care whether it’s Level 3, 4, or 5, but for those who make a living, the higher the level, the darker the future looks," and recalled, "I keep thinking about the slumped shoulders of the PC room owner who locked his doors after Level 2 measures."

Currently, 12 industries designated as high-risk facilities, such as clubs and PC rooms, have closed. Indoor gatherings of more than 50 people and outdoor gatherings of more than 100 people are prohibited. If Level 3 social distancing is implemented, all activities except essential socio-economic activities will be prohibited in principle. Gatherings of 10 or more people, indoors or outdoors, will be banned. Medium-risk facilities such as cafes, indoor sports facilities, and academies with fewer than 300 people will effectively be unable to operate, and multi-use facilities such as restaurants, shopping malls, and retail stores will have to close after 9 p.m.

As a result, anxiety is spreading across the entire self-employed sector, not just restaurants. Jo Hyunil (42, pseudonym), who runs a personal training shop, closed his store earlier this year due to a sharp drop in customers but reopened at the beginning of this month. However, members registered at the time of reopening are now demanding refunds. Kang Hyungsook (60), who runs a hair salon, said, "Sales have halved since Liberation Day," adding, "The neighborhood feels like a ghost town, and the phrase ‘silent as a graveyard’ fits perfectly." She stated, "There are hardly any people on the streets now, and if Level 3 is implemented, I plan to voluntarily suspend business."

Restaurants that also offer delivery services seem to be less affected. Park (43), who runs a franchise chicken restaurant, said, "Delivery sales, which account for about 70% of total sales, have actually increased by more than 10%, so the situation is not as difficult as for other self-employed people." Lee (60), who operates a lunchbox delivery specialty store, explained, "While general restaurants have seen sales drop by more than 50%, mine only decreased by about 10%."

Among some self-employed individuals, there is also a lament hoping that the government will promptly implement Level 3 social distancing so that COVID-19 can end as soon as possible. They believe it is better to temporarily lose sales than to have the COVID-19 situation prolonged. Lee (55), who runs a cold noodle restaurant in Mapo-gu, said, "I thought things were finally calming down, but this mess happened because of churches," adding, "It’s obvious that business will hardly be possible, but I hope they quickly implement Level 3 to end COVID-19."

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