Bitter Revival of Yongsan Amid PC Bang Closures...

Increased Used Goods Buying and Selling Brings Secondary Benefits
"Not a COVID-19 Boom, but Sales Have Actually Increased"

Sales on Online Platforms Like Steam Rise
Game Specialty Store Sales Significantly Decline

On the afternoon of the 21st, used PCs piled up in a corner of Seonin Shopping Center in Yongsan Electronics Market, Yongsan-gu, Seoul.

[Asia Economy reporters Donghoon Jeong and Jeongyun Lee] On the afternoon of the 21st, Seonin Market, located within Yongsan Electronics Market in Yongsan-gu, Seoul, a hub for buying and selling used computers (PCs), was bustling. Since the outbreak of the novel coronavirus disease (COVID-19), restaurants, cafes, pubs, and PC rooms have seen a sharp decline in customers, and the entire city has been quiet as if in hibernation, but Yongsan Electronics Market was extremely busy. Handcarts carrying air bubble wrap (commonly called 'bbokbbok-i'), cardboard, and PC parts roamed every corner of the market. In the narrow aisles, handcarts and customers sometimes got tangled, causing congestion.

Yongsan Electronics Market gained a 'spillover benefit' as PC rooms repeatedly closed and reopened due to strengthened social distancing measures, leading to a series of closures. According to data analyzed and released by Real Estate 114 based on the Small Enterprise and Market Service's commercial data, the tourism, leisure, and entertainment sector, which includes PC rooms, decreased from 1,714 businesses in the first quarter to 1,045 in the second quarter, resulting in a closure rate of 10.8%. Used PCs, which flooded the market from closing PC rooms, are reassembled by parts here and then sold to consumers.

A used PC dealer explained that since the closure of PC rooms after COVID-19, the volume of purchases has increased by about 10%. He said, "It is true that the increase in purchases due to COVID-19 has had a positive effect," adding, "The PCs we buy are disassembled and sold by parts." He continued, "Even if purchases increase, high-performance parts are immediately bought by domestic consumers, and those with slightly lower performance are exported overseas, so there is no worry about sales channels," and added, "About 7% of the PC purchase price remains as profit." Kim Seong-ho (37), who handles PC parts here, said, "Popular parts like the latest graphics cards sell out as soon as they arrive," and added, "Although it is not a COVID-19 boom, it is true that sales are increasing during these difficult and challenging times." Han Mo (31), an employee at a PC assembly company, said, "Used PCs are not sold as-is but are reassembled according to customer requests," and added, "Recently, with telecommuting becoming common and increased demand for gaming at home, the volume of assembly orders has increased, so we are busy."

On the afternoon of the 21st, the game specialty stores inside Yongsan Electronics Market appeared deserted due to a lack of customers.

Yongsan Electronics Market is like a sacred place for people looking to purchase PC parts, game software, cameras, and other electronic products. Established in 1987 as a kind of planned market to relocate electronics merchants from Daerim and Sewoon Markets in Cheonggyecheon during the 1980s, Yongsan Electronics Market has been standing in the heart of Yongsan for 34 years this year. Although it has gained a negative image among consumers due to its complex, cave-like structure called 'Yongdon (Yongsan Dungeon)' and the term 'Yongpal-i' referring to unscrupulous electronics sellers, it is currently experiencing an unexpected boom due to COVID-19. However, the game-related product stores within the same Yongsan Electronics Market have been hit hard by the COVID-19 crisis. As platforms like Steam and other online stores have become the mainstream for purchasing games, foot traffic to offline stores has sharply declined. COVID-19 accelerated this change.

Najin Market, which is virtually the last specialized game market within Yongsan Electronics Market, appeared deserted. Cold wind blew through the empty stores. Kim (50), who sells console game consoles and game packs at Najin Market, lamented, "Sales have dropped by more than 50% since COVID-19," adding, "Although game packs are our main product, there are many days when we only sell 2 to 3 units a day." Choi (61), who handles consoles like PlayStation, said, "Most of the latest PlayStation 5 units are sold online or through official stores, so retailers like us hardly get to handle them," and added, "Sales after COVID-19 are incomparable. They have dropped to about one-tenth of what they used to be."