[Report] No Tenants Despite Zero Key Money... Unable to Close Business Amid the Decline of 'Myeongdong Finance'

More Than Half of Il-dae Currency Exchange Shops Closed in One Year
Remaining Businesses Suspend or Consider Suspending Operations
Dozens of Gift Certificate Exchange Shops Also Shut Down
Economic Recovery Difficult Even After COVID-19 Ends
'Financial Hub' Myeongdong Completely Fades into History

A currency exchange office in the Myeongdong area of Jung-gu, Seoul, on the 12th. The door is firmly closed. Photo by Song Seungseop

Kang Suchan (58, pseudonym), who has operated a currency exchange office in the Jung-gu area of Seoul for 10 years, rented out two-thirds of his store space to a restaurant. This was to alleviate the burden of paying rent despite having no customers. A neighboring currency exchange office closed down and went out of business long ago. At this currency exchange, there was no separate space, resulting in the unusual scene of customers dining right next to the currency exchange counter.

Lee Daeyoon (63, pseudonym), who works as a currency exchanger nearby, has not had a single customer for a week. Contrary to expectations that the situation would improve somewhat with increased tourist demand due to the 'gradual recovery of daily life (With Corona),' Lee lamented that "nothing has changed." Closing the business is also difficult. Lee said, "I paid 100 million won per pyeong for the key money when I moved in, but now there are no tenants even if I only ask for rent," adding, "I'm just losing money."

On the 12th, the currency exchange street in Myeongdong, Jung-gu, Seoul is quiet. Photo by Song Seung-seop

The financial commercial district in Myeongdong, represented by currency exchange offices and gift certificate sales agencies, is collapsing. This is due to the prolonged impact of COVID-19 and the activation of non-face-to-face financial services, which have led financial consumers to stop visiting Myeongdong. This is why there are forecasts that even after the COVID-19 phase ends, it will be difficult for the financial commercial district to revive as it once was. The Myeongdong financial market, once called the 'No. 1 Korean tourist commercial district' and 'No. 1 financial district,' where major financial companies and loan businesses competed, is completely disappearing into history.

On the 12th, a survey of the central areas of Myeongdong 2-ga, Euljiro 2-ga, and Chungmuro 1-ga in Jung-gu, Seoul, found that only 12 currency exchange offices remained. Compared to a year ago, when about 30 places were operating despite the damage caused by COVID-19, the number has dropped by more than half.

Even the remaining businesses have either stopped operations or are seriously considering closure. Among the 12 currency exchange offices, three were closed and existed only on maps. Go Sejin (49, pseudonym), who operates a currency exchange office here, said, "Many people think currency exchange workers are billionaires, but most are people who borrowed money to run their businesses," revealing, "There were times when monthly income dropped below 100,000 won due to COVID-19."

Utility Bills Left Unpaid, Only Notices Remain

On the 12th, a gift certificate exchange business in the Myeongdong area of Jung-gu, Seoul. The metal shutter is down, indicating that the business appears to be closed. A utility bill that has not been paid for four months is placed at the counter. Photo by Song Seungseop

Most of the dozens of gift certificate companies that once proliferated have disappeared except for 6 to 7 near department stores. This is because the influx of foreign tourists, who were considered 'big spenders' for gift certificate sales agencies, stopped abruptly due to COVID-19. The gift certificate exchange office near Go’s place has been closed for several months, and the owner has been out of sight. At the entrance, there were only utility bills amounting to 180,000 won that had not been paid for four months.

Gift certificate sales typically operate on a low-margin, high-volume basis, earning about 1% of the exchanged amount. Oh Seokjin (48, pseudonym) said, "Department store gift certificates have very low discount rates, but with no customers, business is practically impossible," sighing, "I don't think this business will recover even after COVID-19 is over."

On the 12th, a currency exchange office in the Myeongdong area of Jung-gu, Seoul. Business operations have been suspended, leaving only various materials behind. Photo by Song Seungseop

The currency exchange offices and gift certificate sales businesses in the Myeongdong area boomed around 2015. For currency exchanges, the use of private currency exchange offices by locals was allowed, and gift certificate exchange offices with low fees were regarded as 'holy places' on internet communities, attracting many people. However, as major financial companies introduced various currency exchange services and the appeal of gift certificates diminished, the number of users gradually declined. The 2019 THAAD (Terminal High Altitude Area Defense) incident and the prolonged COVID-19 pandemic dealt a direct blow.

Experts believe that since the decline in currency exchange business stems from structural problems, it will be difficult for small offline stores to recover even after COVID-19 ends. Sung Tae-yoon, a professor of economics at Yonsei University, explained, "Since digital currency exchange demand was already increasing before COVID-19, it seems unlikely that the situation will improve now."

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