Extension of 'Social Distancing' Weighed... "Local Businesses Are All Dying"

On the 2nd, the cherry blossom path behind the National Assembly in Yeouido, Seoul, is closed to pedestrians and vehicles to prevent the spread of the novel coronavirus infection. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Kwangho Lee] The government is expected to extend the 'social distancing' measures, which are currently in effect until the 5th, to prevent the spread of the novel coronavirus infection (COVID-19). This is because lifting social distancing amid many ongoing risk factors could significantly increase the likelihood of cluster infections.

According to the Prime Minister's Office on the 3rd, Prime Minister Chung Sye-kyun plans to announce specific measures after holding consecutive meetings with religious groups and social distancing experts to gather opinions.

Initially, the government intended to implement strong social distancing until the 5th to curb the rise in confirmed cases and then transition to a 'daily quarantine system' for infection control in everyday life.

However, as of midnight on the 2nd, the total number of confirmed COVID-19 cases in the country rose by 89 from the previous day to 9,976, nearing the 10,000 mark. The increase in confirmed cases shows no signs of slowing down.

For this reason, experts also argue that the measures should be extended. If social distancing is lifted while the number of daily confirmed cases remains around 20 to 30, cluster infections could rise again.

Earlier, Prime Minister Chung also hinted at the possibility of extension, stating, "Easing social distancing carries the risk of spreading the infection again."

He acknowledged, "We cannot postpone the return to normal life indefinitely, and we understand that the public is experiencing considerable fatigue," but pointed out, "Given the unprecedented rapid global spread and ongoing overseas inflows and cluster infections, easing social distancing could lead to a resurgence of infections."

He added, "We will gather opinions and conduct internal government discussions promptly, then inform the public about how social distancing will be sustained."

Kim Kang-lip, the 1st General Coordinator of the Central Disaster and Safety Countermeasures Headquarters (Vice Minister of Health and Welfare), also stated, "It is necessary to maintain social distancing for the time being."

However, as social distancing continues, the collapse of self-employed businesses, which began in the food and lodging sectors, is spreading to all industries.

According to a survey conducted by the Korea Economic Research Institute targeting 24 associations and cooperatives related to major neighborhood commercial sectors such as furniture, real estate, and dining, their average sales in February and March (estimated) decreased by 42.8% compared to the previous year. Average net profits fell by 44.8%.

In particular, sales declines were severe in clothing stores (-85.0%), furniture stores (-80.0%), and jewelry shops (-70.0%). Distribution (-67.5%) and floriculture (-62.5%) also saw sales drop by more than half.

According to Statistics Korea, as of last year, there were 5.61 million self-employed individuals, accounting for 21% of total employed persons and serving as the backbone of the local economy. Although the government plans to provide emergency disaster relief funds as local gift certificates in May, if neighborhood commercial districts collapse before then, the already insufficient government measures will be further undermined.

In other words, maintaining social distancing requires not only ultra-strong fiscal support from the government but also additional support measures.

A restaurant owner, Mr. A, operating near the Government Sejong Complex, lamented, "With social distancing, foot traffic has stopped, and each day is becoming harder to endure."

He continued, "The government plans to supply liquidity through emergency disaster relief funds, but considering this will only be possible after the general election, no restaurant will be able to hold on. This is why there are calls to inject vitality into local commercial districts, even if it means preemptively settling government officials' corporate card expenses in the commercial areas."