With Hopes for an End to the War, Spring Brings a Boost to 'Cherry Blossom Business Districts'

Consumer sentiment, which had been dampened by domestic and international instability such as the Middle East war, is showing signs of partial recovery with growing expectations for an end to the conflict. In particular, as spring has fully arrived, spending has surged-sometimes more than doubled-centered around popular outdoor destinations, bringing a positive effect to small business owners.

According to PayHere, an integrated store management platform, as of April, total sales at affiliated stores across Seoul increased by 16.2% compared to the previous month. This figure is based on an analysis of sales data from April 3 to April 12 at food and beverage, retail, beauty, education, sports, and medical stores using the PayHere POS system. As of this month, PayHere’s solution is being used at more than 85,000 stores nationwide.

This survey period coincided with the start of the cherry blossom season in Seoul, when demand for spring outings began in earnest. In addition, on April 8, the United States and Iran agreed to a ceasefire, easing the Middle East-driven geopolitical risks that had been weighing on the domestic economy. Analysts say that the combination of warmer weather and expectations for reduced external instability has driven increased consumer spending.

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By commercial district, the demand for spring outings has been converted into spending, resulting in a clear "cherry blossom effect" in major business areas. The area that saw the most remarkable growth was the Seokchon Lake district in Jamsil. Sales at affiliated stores in this district recorded a growth rate of more than double (113.7%) compared to the same period of the previous month. Large crowds drawn by the cherry blossom festival appear to have boosted spending in the area.

The increase in sales was led by the restaurant industry. Total sales at restaurants near Seokchon Lake rose by about three times compared to the previous month, with Japanese cuisine and seafood showing the highest increase at about 5.4 times. This was followed by pubs (about 3.7 times) and Western cuisine (about 2.8 times). Sales at coffee shops and cafes also increased by 23% compared to the previous month. This suggests that dining out consumption is expanding across the board.

The Changgyeonggung district in Jongno also saw a 33.5% increase in sales compared to the previous month. With large numbers of domestic and international visitors flocking to the Changgyeonggung cherry blossom road, sales at coffee shops and cafes rose 26.5%, apparel by 47%, and gifts, fancy goods, and souvenirs by 61%. The spending of foreign tourists enjoying hanbok experiences and souvenir shopping is believed to have further boosted overall sales in the district. In addition, major outdoor destination districts across Seoul-including Seoul Forest and Ttukseom (up 27.9% compared to the previous month) and Yangjaecheon in Seocho (up 10.2%)-enjoyed uniformly strong spending during this period.

Junki Park, CEO of PayHere, said, "As we enter the peak outing season, vibrancy is returning to offline commercial districts overall," adding, "We will continue to strengthen our payment-related features so that franchise owners can take advantage of changing commercial trends and maximize their sales going forward."

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