Small-scale 'Home Parties' at Home... Year-end Party Boom Disappears

Self-Employed "Zero Year-End Boost Due to Price Increases" in Tears
Restaurants and Bars Less Preferred Than 'Home Parties' and 'Camping'

[Asia Economy Reporter Kang Juhee] #Park (29), who works at an advertising-related company in Seoul, has ended remote work but still refrains from company dinners even after returning to the office. Normally, he would be busy with various year-end parties, but the impact of COVID-19 has not yet disappeared.

Park said, "Last year, I worked from home, so I naturally didn't have company dinners. I started going to the office this year, but I haven't had any team dinners after work. If I have to have a company dinner, I use lunchtime," he said.

He explained, "I meet separately with colleagues and seniors I am close to at work. Still, it's just about having a meal with a drink for 1 to 2 hours, and it doesn't continue to a second round. There are hardly any gatherings that last until public transportation stops like in the past."

#A (34), an employee at a restaurant selling alcoholic beverages and pasta in Incheon, said, "Sales have increased slightly compared to last year, but there is no year-end boom. I heard similar stories from acquaintances running chicken and jokbal (pig's trotters) restaurants nearby. Considering the rise in prices and labor costs, sales have actually decreased."

A said, "With prices soaring and people's wallets tightening, there is definitely more reluctance to dine out than before. We recently raised prices due to increased ingredient costs and changed our menu. We feel sorry for customers, but business owners have no choice."

Citizens visiting Myeongdong Street in Seoul are enjoying the year-end atmosphere. [Image source=Yonhap News]

Bars and restaurants that expected a year-end boom during the year-end party season are also struggling. According to a survey conducted by the Federation of Korean Industries (FKI) through Monoresearch targeting 500 self-employed people, more than half, 68.6%, reported a decrease in sales this year compared to last year.

Responses indicating a decrease in net profit were 69.6%. The average decrease rate compared to last year was 12.5% for sales and 12.4% for net profit. Although social distancing measures have been lifted, the dining industry’s situation has not improved.

In particular, a significant number of self-employed people expect the economic recession to continue into next year. Some are considering closing their businesses within the next three years. Reasons for considering closure include ▲continued deterioration of business performance (26.4%) ▲uncertain economic recovery prospects (16.1%) ▲worsening financial conditions and loan repayment burdens (15.1%).

Gatherings and company dinners, which disappeared during the COVID-19 outbreaks in 2020 and 2021, have gradually increased since the implementation of With COVID-19 (gradual return to daily life) in April, but due to the overlapping economic recession, the atmosphere is that recovery is not like before COVID-19.

As group dinners decrease and small gatherings with close acquaintances increase, many citizens prefer 'home parties' or 'camping' over dining out. Kim (30s), a public servant, said, "Nowadays, if two adults go out to eat, it usually costs 80,000 to 100,000 won. When meeting friends, it’s much more advantageous to invite them home and order delivery food each person likes."

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