[Report] "We Might Smile When the Vaccine Comes" Myeongdong Merchants' Small Hope Amid COVID Despair

One Year into the COVID-19 Crisis, Self-Employed Lose Smiles but Pin Hopes on 'Vaccine'
Merchants Say "Situation Will Change Once Vaccine Arrives," "There Will Be an End to COVID"
Sales Down and Customers Gone, Yet Living Positively

One year after the COVID-19 crisis, the streets of Myeongdong, Jung-gu, Seoul remain devoid of visitors. Photo by So-Young Kim, Intern Reporter sozero815@asiae.co.kr

[Asia Economy reporters Seunggon Han and intern Soyoung Kim] "The COVID-19 pandemic will end someday. It can't last forever, right? There are vaccines..."

One year after the COVID-19 crisis began, small business owners and self-employed individuals are still struggling through the 'COVID recession.' Especially, Myeongdong Street in Jung-gu, Seoul, which used to have many foreign tourists, has been hit hard as international travel has been suspended worldwide. Nevertheless, merchants recently expressed a small hope that the situation might improve with the news of COVID-19 vaccines.

On the afternoon of the 15th, Myeongdong Street was completely devoid of visitors, even considering it was a weekday. In famous brand stores selling sneakers and other shoes, only employees were seen, and shops selling various souvenirs to tourists were in the same situation.

The sighs of street vendors selling goods on the street continued. An 80-year-old woman, Ms. Park, who has been selling dolls and toys in Myeongdong for 40 years, lamented, "I came out at 10 a.m. and haven't sold a single item yet."

Ms. Park said, "Since sales have dropped sharply, I haven't brought in new goods this year and am selling leftover items from last year," adding, "I really hope the vaccine comes out soon so things can be resolved somehow. I'm really struggling."

Another merchant who sees the COVID-19 vaccine as the only hope predicted that Myeongdong Street would change somewhat this year because of the vaccine. Mr. Kim (65), who has operated a newspaper and lottery stand in Myeongdong for 30 years, said, "Sales will get better someday; COVID can't last forever," but also expressed frustration, saying, "At the beginning of the year, many people came looking for lottery tickets, but now even those customers are gone."

He said, "Even without customers, I go to work and leave on time every day," adding, "I have to stay strong; things will get better," showing a positive mindset to endure day by day. He continued, "These days, they say the COVID vaccine is coming out. Merchants here have pinned all their hopes on that vaccine. Once the vaccine is out and the situation improves a bit, it won't be like before COVID, but sales and the situation will be better than now."

A fire broke out at a cosmetics store in Myeongdong, Jung-gu, Seoul, at 4:57 a.m. on the last day of the Lunar New Year holiday, the 14th, and was extinguished after about three hours. According to the fire department, there were no casualties as no one was inside the building at the time of the fire. Photo by So-Young Kim, intern reporter sozero815@asiae.co.kr

While merchants continue to sigh, some have faced severe hardships such as fires or store closures. At 4:55 a.m. on the last day of the Lunar New Year holiday, a fire broke out at a cosmetics store. The fire was extinguished after three hours, but the store could no longer operate.

A total of five stores were damaged. The entrance of one store, presumed to have suffered the most damage, was covered with fire debris. Bricks and concrete were scattered chaotically. The second floor of the building had a hole, revealing an empty interior. Some steel reinforcements supporting the second floor hung down toward the first floor.

At one of these locations, five headquarters employees were on-site checking the interior and working on damage recovery. One employee, while assessing the situation, briefly said, "It's already tough because of COVID, and now it seems even harder."

Citizens watching the scene also expressed their sympathy. Three men in their 60s observing the site clicked their tongues, saying, "All these shops burned down. Really," and "How can they do business like this?"

Although it is an intersection in Myeongdong where the largest crowds gather, there are no people to be seen due to the COVID-19 pandemic and other factors. Photo by Seunggon Han hsg@asiae.co.kr

Adding to the COVID-19 crisis, the fire at the store has deepened the despair of Myeongdong merchants. According to a survey, Myeongdong, which relies heavily on foreign tourists for sales, experienced a significant drop in sales as tourists stopped coming.

According to tourism statistics from the Korea Tourism Organization, the number of foreign tourists visiting Korea from January to December last year was 2,519,118, a decrease of 85.6% compared to the same period the previous year. In December 2020, the number of foreign tourists visiting Korea was 62,344, down 95.7% from the same month the previous year.

The disappearance of tourists led to a drop in sales. The Seoul Metropolitan Government announced that, based on big data analysis involving eight organizations including Shinhan Card, Korea Credit Bureau (KCB), and Seoul Institute, last year, sales at Seoul stores decreased by 9% (about 9 trillion won). The average sales in major tourist districts such as Myeongdong, Itaewon, and Jamsil Lotte were only 71% of the previous year.

Not only tourists but also locals are avoiding Myeongdong. According to the Seoul Transportation Corporation's '2020 Passenger Transport Analysis,' the total number of passengers last year was 1,979.12 million, a decrease of 747.12 million (27.4%) compared to the previous year (2,726.25 million). On a daily average basis, the number dropped from 7,469,180 in 2019 to 5,419,368 last year.

The line with the largest decrease was Line 1, with a passenger decrease rate of 33.1%. Among stations, Myeongdong Station on Line 4 saw the largest drop in passengers, decreasing by 58.4% compared to the previous year.

The corporation explained, "Due to social distancing policies, citizens refrained from going out and implemented work-from-home measures, significantly reducing demand for public transportation."

A street vendor selling toys and other items is waiting for customers who may come at any time. Photo by Han Seung-gon hsg@asiae.co.kr

Meanwhile, discussions on restoring damages to small business owners caused by COVID-19 are underway both within the government and political circles. On the 16th, Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki stated during a briefing to the National Assembly's Planning and Finance Committee that they are considering providing the 4th round of support funds to all small business owners whose sales have declined.

During a Q&A session with Democratic Party lawmaker Go Yong-jin, Deputy Prime Minister Hong said, "The definition of small business owners refers to those with sales under 1 billion won, but in reality, most have sales under 400 million won," adding, "Although not finalized, we are considering raising the threshold to 1 billion won." In response to a question from the same party's lawmaker Jeong Il-young, Hong said, "So far, support funds have been provided to those with sales under 400 million won, but we are considering including those suffering even if their sales exceed 400 million won."

The Democratic Party stated at the Supreme Council meeting on the 15th that they plan to selectively provide the 4th disaster relief fund to affected and vulnerable groups after mid-March.

The People Power Party plans to push for emergency survival funds for self-employed and small business owners threatened by government restrictions, in addition to loss compensation and disaster relief funds. They also announced plans to negotiate for a three-month exemption on various utility bills such as electricity and to inject so-called 'Hometown Revitalization Emergency Funds' into rural farming and fishing villages nationwide.

On the 16th, the Seoul Metropolitan Government announced that it will actively promote the '2021 Comprehensive Support Project for Small Business Owners' for 690,000 small business owners and self-employed individuals in Seoul.

Seongman Seo, Director of Labor and Livelihood Policy at Seoul City, said, "Through dedicated comprehensive support platforms for small business owners in each autonomous district, we will provide close support reflecting local characteristics and consumption trends to enhance competitiveness. We will also continuously expand systematic educational curricula so that small business owners can develop self-sustainability."

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