Daegu Small Business Sales Recover to Pre-COVID-19 Levels

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[Asia Economy Reporter Ki Ha-young] The sales of small business owners in Daegu Metropolitan City, which experienced the first large-scale local infection of the novel coronavirus disease (COVID-19) in Korea, have recovered to pre-COVID-19 levels.

On the 14th, Korea Credit Data announced that the sales at small business establishments in Daegu Metropolitan City during the first week of May (4th to 10th) reached 95% compared to the first week of May last year (6th to 12th).

According to Korea Credit Data, a recovery trend appeared in many industries in Daegu Metropolitan City during the first week of May. This is attributed to the sharp decline in new confirmed cases in the Daegu area and the shift to “distancing in daily life” quarantine measures from the 6th, which increased economic activities among Daegu citizens.

In particular, academies recorded sales 15% higher than the same period last year. This is the first time in 12 weeks since the large-scale local infection occurred on February 18. During this period, academies in Daegu consistently recorded sales below 80% of the previous year. Flower shops also showed a 22% growth rate, surpassing the same period last year for the first time in 12 weeks. Hair salons also slightly exceeded last year with a 1% increase.

Restaurants showed varied recovery depending on the menu offered. Overall, sales reached 84% compared to the same period last year, showing significant recovery compared to 73% in the previous week (last week of April). However, restaurants serving Chinese food (92% compared to last year), Western food (89%), and Korean food (87%) showed relatively favorable sales. On the other hand, cafes (79%) and bars (70%) classified as restaurants showed poor sales performance.

Nationwide, small business sales showed a clear recovery trend, rising to 88% or more compared to the same period last year in all metropolitan local governments. In particular, the sales recovery of small businesses in Gyeonggi-do and Gwangju Metropolitan City stood out. Gyeonggi-do recorded a 5% increase and Gwangju Metropolitan City a 1% increase compared to the same period last year.

Kim Dong-ho, CEO of Korea Credit Data, said, “Although sales recovered in most regions last week, sales conditions can change at any time depending on changes in social distancing measures,” adding, “Since the situation of small business owners changes in real time, policy decisions should also be made based on data as close to real time as possible.”