[Report] "Daily Sales Barely 50,000 Won..." Traditional Market Fails to Shine During Holiday Peak... Merchants Sigh

Merchants "Sales Down 90%", "It's Very Difficult"
Prolonged Social Distancing and Simplified Ancestral Rites Impact
Aftermath of Cluster Infections in Some Traditional Markets
Small Business Blind Spots Excluded from Both National Support Funds and Hope Recovery Funds

On the afternoon of the 16th, Seoul Jungbu Market appears quiet with no customers. Photo by Seohyun Kim ssn3592@asiae.co.kr

[Asia Economy Reporter Kim Seohyun] "I wonder what meaning the holidays even have. No one comes to visit..."

Traditional markets marking their second Chuseok since the spread of COVID-19 showed a quiet scene again this year as foot traffic remained sparse. On the afternoon of the 16th, merchants met at Jungbu Market in Euljiro, Jung-gu, Seoul, sighed repeatedly over the stagnant market atmosphere.

The situation was similar at Gwangjang Market in nearby Jongno. Mr. A (72), who said he has been selling street food at the market for 30 years, lamented, "Sales have dropped by 90%. It's incomparable to before COVID. Usually, the alley next to the store should be bustling with people, but even right before the holiday, you can't feel that at all. It seems there is no holiday boom."

The loss of vitality in the markets is known to be greatly influenced by the social atmosphere accustomed to non-face-to-face interactions due to two years of social distancing, simplified ancestral rites, and recent cluster infections occurring in some traditional markets.

Inside the alley of Jungbu Market, the store is filled with stacked inventory
Photo by Seohyun Kim ssn3592@asiae.co.kr

According to health authorities, since the first confirmed case at Garak Market in Seoul on the 2nd, the number of market-related confirmed cases has increased to 185 as of the 16th. As a result, Garak Market was closed except for some stores. At Cheongnyangni Market in Dongdaemun-gu, Seoul, after a confirmed case on the 30th of last month, the number of related confirmed cases rose to about 50.

Because of this, merchants are pinning their hopes on the government-issued 'disaster relief funds.' They hope that if consumption is stimulated by the support funds, the situation might improve compared to now.

The government has been distributing the COVID-19 coexistence national support fund of 250,000 won each to 88% of the entire population since the 6th. Among them, to support small business owners on the brink of closure, the usage was restricted.

Use is allowed at traditional markets, neighborhood supermarkets, restaurants, and franchise stores (convenience stores, bakeries, cafes, chicken shops), while usage is restricted at department stores, large marts, online shopping malls, entertainment businesses, and foreign-affiliated large corporations. However, situations contrary to the original intent occurred, such as Samsung's 'Galaxy Watch4,' which cannot be purchased at large marts, selling out at GS25 and Emart24.

Inside Gwangjang Market, long rows of fabric hang along narrow corridors. It is hard to find customers browsing the fabrics. Photo by Kim Seohyun ssn3592@asiae.co.kr

Some merchants were left out of both the disaster relief funds and the Hope Recovery Fund. Mr. C (59), who runs a rice cake shop at Jungbu Market, lamented, "I don't even earn 50,000 won a day, and I haven't received any proper support. I'm continuing my business while taking on debt."

From the 30th of last month, the 5th Hope Recovery Fund payment began for small business owners affected by the spread of COVID-19. This Hope Recovery Fund targets small enterprises (including small business owners) that received at least one order of gathering ban or business restriction between August 16 last year and July 6 this year or belong to management crisis industries. There are a total of 277 management crisis industries, including cafes, lodging businesses, and laundries.

However, rice cake shops are classified as food processing businesses and are excluded from support. Due to the nature of the items handled, they also cannot benefit from the disaster relief funds. Mr. C said, "Even if money is given, if no one visits, it’s meaningless. I don’t know what the national support fund means. A few days ago, two customers came and bought 3,000 won worth of rice cakes with the disaster relief fund card?that’s all."

Mr. D, who has sold fabrics here for nearly 20 years, sighed, "Our sales depend on regular and provincial customers, but since COVID-19, the provincial customers, who made up a large portion, have stopped coming." He added, "Many stores have closed because they can't even cover rent due to lack of customers. The first floor of the market, not even the second floor, is intermittently empty."

He also appealed, "(Hope Recovery Fund) support was excluded. What can I do if they say they won’t give it? The national support fund is only used for food; who comes to buy fabric?" Mr. D expressed discomfort, saying, "I might as well remove the disaster relief fund sticker that doesn’t help."

Customers browsing dried seafood at Mr. E's store. Photo by Seohyun Kim ssn3592@asiae.co.kr

Meanwhile, there were also responses that the disaster relief funds helped ease the depressed atmosphere of the market. Mr. E (48), who has sold dried seafood and side dishes in an alley of Jungbu Market, said, "Still, last week, I saw customers lining up to buy goods for the first time in a long while," but added, "It’s still tight just to pay rent."

Mr. F, who sells barley dried yellow corvina fish across from Mr. E, said, "Since COVID-19 occurred, sales have dropped by nearly 80%. The food piled up next to me is all still there," but also said, "The disaster relief fund opened up a blocked lifeline."