"Please Let Me Win the Lotto" Deepening Sighs Ahead of Chuseok [Han Reporter Goes]

"Lotto Purchase, Not for Fun but Out of Desperation" Economic Recession Due to COVID-19... Deep Sighs from Ordinary People
First Half of the Year Sees Largest Lottery Sales Since 2005
Self-Employed and Small Business Owners Deeply Concerned, Worries Deepen Ahead of Chuseok

A lottery ticket sales counter at a convenience store in Jung-gu, Seoul. The photo is unrelated to specific expressions in the article. Photo by Han Seung-gon hsg@asiae.co.kr.

[Asia Economy Reporter Han Seung-gon] "I used to play for fun, but these days it's really desperate. Winning the lotto..."

On the afternoon of the 25th, Kim, a man in his 40s who purchased a lotto ticket at a convenience store in a busy area of Jung-gu, Seoul, said, "Because of COVID-19, no one can predict the future." As Kim lamented, the everyday life of the common people has become harsh since the COVID-19 pandemic.

The tourism, dining, aviation, performance, and fashion sectors are said to be on the brink of starvation. Both small and medium-sized enterprises and large corporations are desperately trying to survive the COVID-19 era by cutting staff, implementing unpaid leave, and reducing production. This is why the upcoming Chuseok holiday is not entirely welcome.

Another man in his 50s, Lee, whom we met at a different lotto sales point that day, shared a similar situation. He said he was not just hoping for a win after buying a lotto ticket but truly wished to win. He complained, "Everyone is struggling because of COVID-19. I hope winning the lotto would ease some worries about making ends meet."

Despite the ongoing economic recession due to the impact of COVID-19, lottery sales in the first half of this year reached 2.6 trillion won, marking the largest sales volume since 2005.

According to the Ministry of Strategy and Finance's Lottery Commission on the 16th, total lottery sales in the first half of this year amounted to 2.6208 trillion won, an 11.1% increase compared to the same period last year.

The growth rate for the first half was the highest since 2012 (17.7%). By product, lotto sales accounted for the largest share at approximately 2.3082 trillion won. Printed lottery tickets accounted for 186.3 billion won, combined pension lottery tickets 85.5 billion won, and electronic lottery tickets 40.8 billion won.

In particular, sales of pension lottery tickets surged by 68.2% compared to 50.8 billion won in the same period last year, reaching the highest level in eight years since 2012 (131.3 billion won). Last year, pension lottery sales in the first half amounted to only 50.8 billion won.

A lottery ticket booth located in Jongno, Seoul. The photo is unrelated to specific expressions in the article. Photo by Seunggon Han hsg@asiae.co.kr.

The economic recession is also leading to depression. According to a survey conducted three times in April, June, and September by the job portal Incruit and AlbaCall on the 'COVID-19 depression trend,' the proportion of people experiencing depression due to COVID-19 was 54.7% in April, 69.2% in June, and 71.6% in September. This is an increase of 16.9 percentage points compared to April.

The ongoing uncertainty about how much worse things might get as COVID-19 has not fully subsided is believed to have deepened feelings of depression.

Kim, a man in his 40s working at a small and medium-sized enterprise in the Seoul metropolitan area, said, "Our company increases sales through business activities, but customers' expressions are gloomy, probably because of COVID-19," adding, "This situation leads to poor sales and a decline in revenue." He continued, "I hope COVID-19 ends soon."

Meanwhile, Lee, a self-employed man in his 30s who said he is experiencing the economic recession firsthand, said, "Although the government provides various supports, for self-employed people like me who have to prepare and make a living, every day is truly a battle. You need money even to close a business." He added, "In the future, policies should not only provide subsidies but also show 'hope' to self-employed people like us."

On the 24th of last month, citizens wearing masks were walking at Sindorim Station in Seoul. Photo by Hyunmin Kim kimhyun81@

On the 22nd, the Federation of Korean Industries conducted a survey of 50 small and medium-sized enterprises, revealing that 34.0% of them believe it will be difficult to maintain their businesses for more than a year if the current economic crisis continues.

Among the respondents, 12.0% said they could maintain their business for six months, and 22.0% said one year. Others responded with 1.5 years (12.0%), 2 years (8.0%), 3 years (10.0%), and more than 3 years (36.0%).

Regarding emergency management measures planned in response to the prolonged COVID-19 pandemic, the highest response was "reduction of daily expense budgets" (26.9%), followed by workforce reduction (21.5%), business restructuring (20.4%), wage cuts (7.5%), temporary closure (7.5%), and asset sales (6.5%).

Closures among self-employed and small business owners are also rapidly increasing. According to data from the Small Enterprise and Market Service, the number of stores nationwide in the second quarter was 2,569,824, a decrease of 103,943 compared to the first quarter. Nearly 55,000 stores closed in the Seoul metropolitan area alone, including 21,178 in Seoul.

The number of self-employed people in July decreased by 127,000 compared to the same month last year, which is about five times the decrease in July last year. The number of self-employed people with employees decreased by 175,000. This is practically a level of mass closures.

As a result, citizens' worries continue. A man in his 50s who wished to remain anonymous said, "This year's Chuseok really doesn't feel like a holiday. I even reduced the allowance for my parents and children," adding, "Still, I hope everyone stays strong with the thought that we are 'holding on well.'"