[Report] "I Really Don't Know Anymore" Myeongdong Now a Rental Street... Merchants 'Resigned'

Building at Myeongdong Entrance, All Floors from Basement 2 to 7th Floor Vacant
9 out of 10 Small Business Owners Report Sales Decline
If Social Distancing Continues, More Than 6 Out of 10 May Consider Temporary Closure or Shutdown

Lee Jae-myung, the Democratic Party presidential candidate, is giving a speech on the morning of the 14th at Myeongdong, Seoul. Photo by Kang Woo-seok, intern reporter beedolll97@asiae.co.kr

[Asia Economy Intern Reporter Kang Wooseok] "I feel utterly hopeless." , "It's all just rental after rental..."

On the 14th, when Lee Jae-myung, the Democratic Party of Korea's presidential candidate, visited Myeongdong in Jung-gu, Seoul, he shouted for 'political change' and 'world change.' Around him, white and blue balloons symbolizing the Democratic Party and Lee's campaign fluttered densely.

A merchant in his 50s running a street stall near the Myeongdong Arts Theater intersection listened attentively to Lee's speech, saying, "Regardless of party lines, it's still something to be thankful for that they care about us (small business owners)."

However, among some self-employed business owners, there were weary complaints. These were not criticisms aimed at the candidate but grumblings about the Myeongdong commercial district itself being so dead that it is now called the 'rental street' rather than Myeongdong street. Disappointment was also expressed over political promises to revive commercial districts devastated by the COVID-19 pandemic.

Rental stickers are attached to a building located in Myeongdong. Photo by Kang Wooseok, intern reporter beedolll97@asiae.co.kr

As the merchants complained, the Myeongdong street was quiet. There were about ten people walking along the street. One of them frowned while looking at buildings overflowing with vacancies.

A building located at the entrance of Myeongdong was vacant from the basement level 2 up to the 7th floor above ground. Other buildings also had all first floors vacant. Before COVID-19, these places were highly accessible and rarely available.

The situation was similar in another alley. Rental notices were easily found on the glass windows in front of buildings. It was quicker to find vacancies than people.

The building located at the entrance of Myeongdong is completely vacant from the basement level 2 to the 7th floor above ground. Photo by Kang Wooseok, intern reporter beedolll97@asiae.co.kr

Another building was vacant from basement level 2 to the 7th floor above ground. On the floor guide inside the building, only 'Coming Soon' signs indicating vacancy were visible. Another nearby building also had all first floors vacant. Before COVID-19, these locations were highly accessible and rarely available.

The overflowing vacancy situation can be confirmed by statistics. According to the '2021 Q4 and Annual Commercial Real Estate Rental Trend Survey' by the Korea Real Estate Board, the nationwide average vacancy rates in Q4 2021 were 10.9% for offices, 13.5% for medium-to-large commercial spaces, and 6.8% for small commercial spaces.

Due to the spread of COVID-19 variants such as Delta and Omicron, closures increased, and the vacancy rate for medium-to-large commercial spaces rose by 1.8 percentage points compared to early 2020 (11.7%), while small commercial spaces increased by 0.4 percentage points from 6.4% at the beginning of the year.

Especially in Myeongdong, which heavily depends on foreign tourists, the vacancy rates for medium-to-large and small commercial spaces were recorded at 50.1% and 50.3%, respectively. More than half of Myeongdong's commercial spaces are empty, a serious situation.

A quiet alley in Myeongdong. Vacant spaces are also visible. Photo by Kang Wooseok, intern reporter beedolll97@asiae.co.kr

Small business owners making a living in Myeongdong are practically in a state of giving up. Although the political sphere and government continuously propose solutions, the impact of COVID-19 is still ongoing. Mr. Kim, in his 60s, who runs a convenience store, said, "(Politicians or the government) won't do well just because we make a fuss," adding, "Now, if they make a pledge, I am satisfied if they just keep that pledge. That's all I expect from politics."

There were also small business owners who lost interest in politics. A couple selling fish-shaped bread and chrysanthemum bread near Myeongdong said calmly, "We have no strength or will to speak, (we) have little interest in politics, and don't particularly expect anything from politics anymore."

Meanwhile, the government and local authorities continue to promote policies to 'save the self-employed.' On the 11th, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, stated at the expanded macroeconomic and financial meeting held at the Bankers Hall in Jung-gu, Seoul, "We will focus on discussing ways to ease loan and repayment burdens for small business owners and help them land smoothly."

Additionally, on the 14th, the Ministry of the Interior and Safety announced through the 'Local Tax Item Support Plan' that it would ease local tax burdens for self-employed and small business owners affected by government-ordered business suspension and restrictions, as well as individuals confirmed with COVID-19 or under self-quarantine. The Ministry of SMEs and Startups announced that through the ultra-low interest policy fund 'Hope Plus Special Guarantee,' it would provide ultra-low interest loans up to 10 million KRW to medium-credit small business owners who received 'quarantine support funds.'

The political sphere is also focusing on winning the small business vote. Both the Democratic Party and the People Power Party signed policy agreements with the Small Business Federation on the 7th and 10th, respectively. On the 11th, candidate Lee Jae-myung announced a pledge including full compensation and sales recovery support for small business owners affected by COVID-19, and candidate Yoon Seok-youl announced on the 9th a pledge to minimize simple payment fees for small business owners.

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