Despite Peak Season and Soaring Exchange Rates, Tourist Numbers Plummet... Myeongdong Currency Exchange Shops Quiet Due to Gyeom Aftermath

Amid soaring exchange rates and the year-end peak season, private currency exchange booths in Myeongdong, which should be enjoying a boom, are facing difficulties due to the aftermath of the martial law situation. The number of foreign tourists visiting Korea has sharply declined amid domestic political turmoil, causing foot traffic to the exchange booths to come to a halt.

According to the Seoul foreign exchange market industry on the 12th, the Korean won was trading at 1,432.85 won per US dollar as of 2:30 PM. On the 9th, the won-dollar exchange rate surpassed the 1,437 won mark, reaching its highest level in 2 years and 1 month.

The area in front of a private currency exchange office in Myeongdong, Jung-gu, Seoul, is quiet on the morning of the 12th. Photo by Lee Ji-eun

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However, the front of a private currency exchange booth in Jung-gu, Myeongdong, visited that day was quiet. Passersby in small groups glanced at the electronic board displaying the exchange rate and soon left. The owner, sitting inside the exchange booth waiting for customers, sighed as he looked at the empty street.

The owners unanimously said that it was unusual for customers to decrease during the peak tourist season combined with high exchange rates. December is a period when foreign tourists surge, and Myeongdong exchange booths are usually crowded with customers around this time.

A (45-year-old) owner operating a private exchange booth here said, "Myeongdong should be bustling with crowds in December, but the streets are empty," adding, "Compared to the same period last year, it seems that customers have decreased by about 70%."

The main cause is analyzed to be the decrease in foreign tourists. Since the declaration of martial law on the 3rd, some overseas countries, including the UK, have issued travel advisories for Korea. Exchange booth owners expressed their distress, saying that the number of visitors to Korea has noticeably decreased due to this situation.

On the morning of the 12th, tourists are exchanging currency in front of a private exchange office in Myeongdong, Jung-gu, Seoul. Photo by Lee Ji-eun

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Exchange booth owner B (48) said, "Since the martial law situation, the number of customers has visibly decreased day by day," adding, "Starting precisely from the 3rd, tourists have disappeared by half."

As forecasts predict further rises in the exchange rate due to domestic political turmoil, even domestic customers have stopped visiting. Exchange booth owner C (45) said, "Usually, when the exchange rate rises to the 1,400 won range, domestic customers flock to exchange dollars," but added, "However, even long-time customers say they will observe the market for the time being and try to stockpile dollars."

Experts predict that if the impeachment political situation continues for a long time, the cautious stance in the exchange rate market will persist. Professor Kim Jin-il of Korea University’s Department of Economics explained, "If the chaotic political situation continues, the exchange rate is likely to maintain its current level (around 1,400 won). Foreign tourists are expected to decrease as a result, and domestic customers will continue to watch the market rather than trade."

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