[2020 Nightmare of Self-Employment] "Hundred-Million Won Key Money Is a Thing of the Past... 200 Million Won Bank Debt Only"

The Underground Shopping Mall at Express Bus Terminal Once Packed... Now Empty After One Year

[Asia Economy Reporter Yujin Cho] On the afternoon of the 21st at 2 PM, in the underground shopping mall of Gangnam Express Bus Terminal in Seoul (Gotumall), two middle-aged women, who appeared to be merchants in front of a women's clothing store, exchanged harsh insults and loud voices. "Is it because you stole customers?" "I heard they opened and operated the store even after testing positive for (COVID-19)," the nearby merchants whispered about the cause of the fight. The commotion only settled after two police officers who had been called arrived on the scene.

The Gotumall commercial district, where 620 stores are gathered, was once a place where shoppers had to be pushed along by crowds so dense that only the heads of the people in front could be seen, but the situation changed due to the novel coronavirus infection (COVID-19). With customer visits stopping and livelihoods becoming harsh, conflicts among merchants also increased. At the entrances of stores that had closed, signs saying 'Temporary Closure' were posted, and empty stores that had shut down and left were noticeable. Despite signs advertising 'Clearance Sale' and 'Discount Event,' each store looked deserted without a single customer.

Gotumall merchants said in unison, "This is usually the time when foreign tourists would flood in, but since COVID-19, customers have completely stopped coming," and "The year-end and New Year peak season was lost." The commercial district, which had been almost entirely dependent on foreign tourists, has completely collapsed after COVID-19. Foreign customers, who used to make up about one in three visitors, are now nowhere to be seen.

The underground shopping mall at the Express Bus Terminal visited on the 21st. Each store is deserted as customers have completely stopped coming, creating a quiet atmosphere.

After the COVID-19 pandemic caused a drop in customers, more stores in the underground shopping mall at Seoul Express Bus Terminal have temporarily closed or started clearance sales.

Lee Man-ho (pseudonym), who runs a 12-pyeong (approximately 39.7 square meters) women's clothing store, has suffered losses exceeding 200 million KRW due to COVID-19. With customer visits sharply dropping, there are many days when the store remains idle. Daily sales are around 100,000 to 200,000 KRW. The rent, which amounts to 4 million KRW per month, is difficult to afford, not to mention the monthly maintenance fee (450,000 to 500,000 KRW). Lee said, "The store's sales revenue is not enough to cover expenses, so I am barely surviving by taking out bank loans." Fixed costs such as rent, maintenance fees, and employee salaries accumulate losses of over 5 million KRW per month, and bank debt exceeds 200 million KRW.

Some merchants cannot sleep without sleeping pills due to the pressure of debts accumulated over nearly a year. Park Hye-young (pseudonym) said, "I have been selling clothes in this underground shopping mall for over 20 years, but I have never experienced such a recession," and added, "Many wholesale suppliers have closed or suspended operations, so supply is not smooth." Unable to continue business, she put her leased store up for sale, but no one is willing to buy it. There was a time when the key money for small-sized stores (6 to 7 pyeong) was worth several hundred million KRW, but now that is a thing of the past.

Most store owners work alone to reduce labor costs. Na Eun-chae (pseudonym) said, "There are many days when the store is open but no business is conducted." Born in 1972, Na helps her daughter who runs a clothing store by working part-time without pay. She said, "I let go of the part-time worker to reduce labor costs, but since my daughter cannot manage the store alone during the 11-hour business hours, I help with opening the store."

Merchants pushed to the brink are demanding a full waiver of next year's rent. Jang Sung-woo (pseudonym), who runs a miscellaneous goods store, said, "Just thinking about prepaying next year's rent is like hell," and lamented, "The commercial district has completely collapsed due to COVID-19, but rent will increase this year and next year." Merchants have requested rent exemption from the Seoul Metropolitan Government but have only received a response that it is "under review." They appealed, "We are about to die from rent before dying from COVID-19," and "Until the air routes reopen, the number of inbound tourists recovers, and the spread of COVID-19 calms down, rent exemption measures must be implemented."