[Report] "If the Streets Were Packed with People" Social Distancing Lifted... Myeongdong Merchants Anticipate Revitalization of Business District

Full Lift of Business Hours and Capacity Limits from the 18th
Mask Wearing Guidelines to Be Decided in Two Weeks
Hope for Myeongdong Street Hit Hard by COVID-19
Reopening Starts... "Tourist Issues Are Key"

Around 2 p.m. on the 15th, Myeongdong Street in Jung-gu, Seoul, was bustling with the footsteps of people, regaining its vitality.
Photo by Kim Jeongwan kjw106@

[Asia Economy Reporter Kim Jung-wan] "Social distancing is finally being lifted," "I hope COVID-19 disappears soon."

With the full lifting of social distancing measures starting on the 18th, Myeongdong in Jung-gu, Seoul, which had been hit hard by decreased sales due to COVID-19, was bustling with citizens out for spring outings. Among self-employed and small business owners, there was also a sense of optimism about the revitalization of commercial districts.

Prime Minister Kim Boo-kyum held a meeting of the Central Disaster and Safety Countermeasure Headquarters at the Government Seoul Office on the 15th and announced, "The current restrictions on operating hours for multi-use facilities until midnight and the limit of up to 10 people for private gatherings will be fully lifted starting next Monday (the 18th)." This marks 2 years and 1 month since social distancing was introduced in March 2020.

Restrictions on events and gatherings limited to 299 people and religious facility capacity limited to 70% will also be removed simultaneously. Starting from the 25th, the ban on eating and drinking in multi-use facilities such as movie theaters, indoor sports facilities, and religious facilities will also be lifted.

However, mask-wearing guidelines will remain as they are, with a review of the quarantine situation planned in two weeks to decide on mask-wearing guidelines outdoors, which are considered relatively lower risk.

In the alleys off the main street of Myeongdong, shops with rental inquiry stickers are scattered here and there.
Photo by Kim Jeongwan kjw106@

Due to the impact of COVID-19, the number of foreign tourists in Myeongdong decreased, and a year ago, the vacancy rate of commercial properties in Myeongdong ranked the highest nationwide. According to the Korea Real Estate Board, in the first quarter of last year, the vacancy rate for medium to large commercial properties in Myeongdong was 38.4%, and for small properties, 38.3%. By the fourth quarter of the same year, the vacancy rates increased to 50.1% for medium to large and 50.3% for small properties.

The situation remains similar today. On the day of the visit, stepping away from the center of Myeongdong street, there were empty stores with rental inquiry signs posted here and there. However, with the news of the full lifting of social distancing, the street showed signs of slowly coming back to life. Occasional footsteps of foreigners could also be seen. Since last month, self-quarantine has been exempted for overseas arrivals who have been vaccinated, which seems to have increased tourist foot traffic.

There was a sense of expectation among Myeongdong street merchants that the easing of social distancing would revive the commercial district. Mr. Shim (70), who said he has been running a street stall in Myeongdong for over 20 years, said, "During the height of COVID-19, I sometimes made only 20,000 won a day. These days, definitely more people are coming than before," adding, "Now that social distancing has been eased, of course, the Myeongdong commercial district will come back to life. If there is an uphill, there will be a downhill too, so hope will surely come."

In various places around Myeongdong, there were also sites under construction ahead of their opening.
Photo by Kim Jeongwan kjw106@

A Mr. A, who runs a small caf?, said, "It's true that I have hopes for the recovery of the commercial district as social distancing is eased," but added, "Considering the social atmosphere and the fact that we mainly serve foreigners here, it might take some time before sales show a recovery trend."

Meanwhile, Mr. Kim, in his 40s and working during business hours, said, "If Myeongdong comes back to life, it’s not just the commercial district recovering, but it has symbolic significance." He continued, "When Myeongdong’s sales dropped, there was a lot of news coverage, wasn’t there?" and emphasized, "I want to hear news that Myeongdong is filled with people."

In the case of Myeongdong, attention is focused on changes in the commercial district as it is starting its reopening (resumption of economic activities). A real estate agent met on the day said, "The number of businesses actually moving in hasn’t increased significantly," but added, "Inquiries about commercial rent have increased compared to before. The issue of tourists is the most important. Depending on economic changes and tourism issues, we might see recovery."

Meanwhile, self-employed business owners urged swift compensation for losses following the full lifting of social distancing. The Korea Federation of Small and Medium Business (KSMB) welcomed the lifting of business restrictions, which was the greatest wish of small business owners, representing 7 million small business owners, and emphasized that "business restriction measures that pushed small business owners and self-employed into a dead end should never exist again in this land."

KSMB added, "Although the 'Small Business Loss Compensation Act' was enacted in July 2021, it is not retroactive, and fixed costs such as rent and labor costs are not compensated, so small business owners have yet to receive proper compensation for losses caused by business restrictions."

The 'COVID-19 Damage Self-Employed General Federation (Coja Federation),' consisting of 14 organizations including the Korea Foodservice Industry Association, also emphasized the prompt execution of loss compensation in a statement on the same day. Coja Federation welcomed the government’s full lifting of social distancing policies and urged, "The next government should prepare focused loss compensation support measures for businesses subject to gathering bans and restrictions such as restaurants and cafes."

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