[Report] "How Much They Must Have Suffered" Self-Employed People Driven to the Brink Express 'Anguish'

"Heaven, live without money worries"... Memorials continue
Series of extreme choices by self-employed
Nearby self-employed say "Not someone else's problem", "Harder than during IMF"
Self-employed driven to 'closure' and 'second jobs' due to high rent

The store operated by Mr. A (57), who ran a small business in Mapo-gu, Seoul, and took an extreme measure due to financial hardship. Notes and chrysanthemum flowers commemorating Mr. A are placed there. Photo by So-Young Kim sozero815@asiae.co.kr

[Asia Economy Reporter Kim Soyoung] "We followed all the government's orders, didn't we? So what is the result now?"

Recently, there have been consecutive tragic cases of self-employed business owners taking extreme measures due to financial difficulties caused by COVID-19, causing deep sorrow. On the 14th, self-employed individuals met at the scene all agreed that the situation did not feel like someone else's problem.

As strengthened social distancing measures continue, self-employed business owners have taken to the streets with late-night vehicle protests, 'One Heart One Step Walk for the Self-Employed,' and 'One-Person Protests by the Self-Employed,' but there has been little change.

The government extended the current Level 4 social distancing in the metropolitan area until October 3, while recently easing some restrictions by extending restaurant and cafe operating hours to 10 p.m. and adjusting the gathering limit to six people, including those fully vaccinated. However, self-employed business owners lament that these measures have not produced positive effects.

On the 7th, Mr. A (57), who had operated a Japanese-style pub in Mapo-gu, Seoul for 23 years, was found dead in the basement of his store. It was reported that he used his one-room deposit to pay his employees' salaries, adding to the tragedy. On social media platforms like Twitter, public opinion is forming to listen to the hardships of self-employed individuals like Mr. A following this incident.

On the 14th, the street in Mapo-gu where Mr. A's store was located was not crowded even during lunchtime. Except for a few stores, many had no customers at all.

Upon hearing the sad story of a nearby self-employed person, local merchants were visibly shocked. A couple, Mr. and Mrs. Lee (in their 40s and 50s), who have run a beer pub in Mapo-gu for over three years, said, "We were very surprised to hear the news. Although we weren't close because Mr. A had been in business for a long time, we knew each other. He was one of the decent owners," they recalled.

They emphasized the need for flexible regulations tailored to each industry instead of the current blanket restrictions. Mr. Lee said, "In fact, self-employed people bear the brunt of COVID-19 responsibility. Not all self-employed are the same. Places like pubs that operate in the evening. But support and regulations are applied uniformly. That's why some people end up making such extreme choices," he said with regret.

High rent in the Mapo-gu area due to surrounding commercial districts was also cited as a problem. They said, "The rent here is high, so many nearby shops have closed. Everyone is mentally exhausted right now. We hope for a swift transition to With COVID," they added.

A pub in Mapo-gu, Seoul. The couple running this place, Mr. and Mrs. Lee, said, "We have even started lunch service, which we didn't do before, but it's not easy." Photo by So-Young Kim sozero815@asiae.co.kr

Mr. Lee Heonmo (65), who has operated a laundry business in Mapo-gu for over 40 years, expressed sorrow over Mr. A's news, saying, "It's so tragic. How much pain must one be in to want to die? Words cannot describe it."

He said, "For us, it's not about time or number of people, but as people's outdoor activities decrease, there is no work at all. It feels harder than during the IMF crisis. It's not just difficult; it's extremely tough." Due to the high rent here, Mr. Lee also said he is behind on rent payments by more than two months.

Mr. Kim, in his 60s, who started his business during the calming COVID situation, is considering closing his store less than three months after opening. He said, "I wish I could hire part-time workers, but I simply can't afford it. There are no customers, and being tied to the store 365 days a year is very hard." He added, "Regulations are necessary, but the current measures are strange and not logically acceptable."

Mr. Kim showed clear shock over the recent death of self-employed Mr. A. He shared a story about a friend who runs a pub nearby, saying, "His store is much bigger than ours, but he does everything alone because he can't hire anyone. You can say he's almost bankrupt now. Most of us rely on acquaintances' businesses," he said with regret.

Mr. Baek (40), who has run a restaurant for four years, said, "This is not someone else's story. When a person dies, they die, and the country can't do anything about it. What can they do when a self-employed person dies? This is how our country is now. We are not handling this wisely," he vented.

He expressed anger, saying, "This is a completely communist country. We have to follow what the government says. We have followed for over a year and a half, and now the result is the worst possible situation."

He continued, "They block all customers from coming and give small amounts of support occasionally, so it's impossible to sustain. The timing of the support coincides with Chuseok, so will people go out and spend? Everyone is preparing for Chuseok. The current support measures have nothing to do with self-employed people," he criticized.

Regarding the eased social distancing policy, he said, "It's only the self-employed who bear the burden. Those who have received the second vaccine dose are mostly older people, so there is little change in evening business. In fact, business was better when they allowed two people in the evening," he said.

The store operated by Mr. A (57), who ran a small business in Mapo-gu, Seoul, and took an extreme step due to financial difficulties. A note commemorating Mr. A is attached. Photo by So Young Kim sozero815@asiae.co.kr

Mr. Park, a self-employed person in his early 30s who runs a cafe, said, "I think the government is doing its best, and we have to endure a lot, but the support money only covers rent at best," and "I don't think these policies are for self-employed people. This is a problem felt by many self-employed, not just me," he said. He added, "Small business owners face more difficulties than department stores or large supermarkets," pointing out issues of fairness.

He said, "These days, there is no self-employed person who doesn't have a side job. This is because self-employed people have almost given up on evening business." In fact, many posts in self-employed communities recently have reported that self-employed people feeling limits in running their stores have taken on side jobs to make a living. According to an analysis of Statistics Korea microdata by the office of People Power Party lawmaker Choo Kyung-ho on the 22nd of last month, among small self-employed without employees, 155,000 people have taken on side jobs. This is the highest number recorded as of July since related statistics began in 2003.

In July, a 30-something self-employed karaoke bar owner, Mr. B, was found dead in Pyeongtaek, Gyeonggi Province, continuing the sad news of self-employed people regardless of industry.

On the 14th, the Korea Federation of Small and Medium Business (KSMBA) and the National Emergency Committee for the Self-Employed held a press conference at the KSMBA office in Yeouido, Seoul, demanding the removal of business restrictions and full compensation for losses, among five key demands.

O Se-hee, president of KSMBA, said, "Over the past year and a half, self-employed people have taken on more than 66 trillion won in debt, and 453,000 stores have closed, averaging about 1,000 closures per day. Due to business restrictions lasting over a year and a half, small business owners who can no longer endure are being driven to extreme choices," he appealed.

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