[Reporter’s Notebook] Erase the Ruling and Opposition Parties in Front of 'Small Business Owners'

Small Business Owners on the Brink Amid Consumption Slump
Political Power Struggle Continues Over Control of State Affairs

"We're on the verge of being out on the streets, so is it really the time to argue about the ruling and opposition parties?"

He, who led a small business association until recently, said, "Looking at the recent political scene, to put it bluntly, it makes me furious," as he downed half a bottle of mineral water in one gulp. When the reporter asked what policy small business owners need most during the impeachment situation, he struck his chest with his fist in frustration and pleaded, "First of all, please put the livelihood economy on the political table." Although he raised his voice, he seemed cautious about revealing his name, apparently concerned about the political circles.

Amid the recession and the aftermath of martial law causing distress in the self-employed sector, the scene in the Jongno area of Seoul on the afternoon of the 15th. Photo by Yonhap News

On the 15th, Lee Jae-myung, leader of the Democratic Party of Korea, proposed the formation of a 'National Stability Consultative Body' involving both ruling and opposition parties and the government, signaling the start of efforts to revive the economy. This was to seize control of state affairs under the pretext of normalizing government and overcoming turmoil following President Yoon Suk-yeol's impeachment motion. In response, Kwon Seong-dong, acting leader and floor leader of the People Power Party, rejected the proposal, saying, "It is inappropriate for the Democratic Party to act as if it were the ruling party," and added, "We will continue responsible politics as the ruling party through party-government consultations as we have done so far."

Amid the power struggle between the ruling and opposition parties, the sighs of 7.66 million small business owners deepen. A seafood stew restaurant owner in his mid-50s in the Seoul metropolitan area said, "Normally, December is when year-end party inquiries keep coming in, but this year they have drastically decreased, and even the reservations we had were canceled," trailing off with, "The political circles should be uniting their strength, but..." This atmosphere is also reflected in the numbers. According to the 'Emergency Survey on Small Business Economic Outlook after the December 3 Martial Law Incident' released by the Small Business Federation, 88.4% reported 'a decrease in sales.' Regarding the economic outlook for the upcoming year-end, 90.1% responded 'negatively.'

Political instability acts as a direct cause of consumption stagnation. During the impeachment of former President Park Geun-hye in 2016, the Consumer Confidence Index (CCSI) sharply dropped from 101.9 in October to 95.8 in November and further down to 93.3 in January 2017. A CCSI below 100 indicates pessimism, and it took five months for the index to rise above 100 again. A similar situation is expected this year.

Livelihood bills supporting small business owners are also being delayed one after another. The government had planned to revise the Restriction of Special Taxation Act to increase the year-end tax deduction rate for traditional markets from the existing 40% to 80% starting this year, but the bill failed to pass. Amendments to the Commercial Building Lease Protection Act to protect small business owners and the Electronic Financial Transactions Act to establish safeguards for settlement funds from electronic financial operators are also stalled in the National Assembly. Amid this situation, the martial law and impeachment incidents occurred.

The People Power Party (acting leader Kwon) and the Democratic Party (leader Lee) will meet on the 18th. The two must erase the lines between ruling and opposition parties and demonstrate livelihood politics that listen to the desperate cries of small business owners.

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