Struggling with Financial Hardship, Self-Employed Individuals Choose Extreme Measures
Small Business Association: "Self-Employed Have Accumulated Over 66 Trillion Won in Debt Since COVID-19"
Experts: "Need to Lift Business Restriction Measures"
A notice regarding closure is posted at a store in Euljiro, Seoul. The photo is unrelated to specific expressions in the article. [Image source=Yonhap News]
[Asia Economy Reporter Heo Midam] "Please save the self-employed people."
Due to the government's business restrictions amid the prolonged COVID-19 pandemic, there have been a series of tragic incidents recently where some self-employed individuals have taken extreme measures. Most of them reportedly ended their lives because they could not overcome financial hardships such as overdue rent and loans and management difficulties following the spread of COVID-19.
Given this situation, self-employed people are urging for an accelerated transition to the so-called 'With COVID' phased recovery of daily life. The government plans to consider changing quarantine measures around November once the nationwide second vaccination rate exceeds 70%, but self-employed people say they cannot hold on until then. Experts have pointed out the need to lift business restrictions.
Recently, extreme choices by self-employed people pushed to the brink due to business restrictions following the escalation of social distancing have continued.
On the 13th, Mr. A (52), who ran an entertainment establishment in Dan-gye-dong, Wonju, Gangwon Province, was found dead at his home. Mr. A, who had operated an entertainment business in Wonju for nearly five years, faced difficulties in business due to the impact of COVID-19 and was unable to pay rent for several months. It is known that he confided in acquaintances about his struggles, saying "It's hard."
Meanwhile, on the 7th, a self-employed man in his 50s who had run a pub in Mapo-gu, Seoul for 23 years withdrew the deposit from his one-room apartment to pay his employees' salaries and then took his own life. On the 12th, the owner of a chicken restaurant in Yeosu, Jeollanam-do, was also found dead with a note saying "It's hard."
A closed store near Hongik University in Mapo-gu, Seoul. The photo is unrelated to specific expressions in the article. Photo by Yonhap News
In this regard, the National Emergency Countermeasures Committee for the Self-Employed (Emergency Committee) identified at least 22 self-employed people who took their own lives due to business difficulties and financial hardship caused by the prolonged COVID-19 crisis, based on reports collected over two days from the 13th to 14th. These individuals had suffered from decreased sales or overdue rent due to the government's gathering ban measures.
The problem is that as the fourth wave of COVID-19 shows no signs of subsiding, the risk of such tragedies repeating is high. In online communities of self-employed people, posts expressing empathy and despair have continued, such as "They must have been in so much pain to make such a choice. I understand," "Even if we follow the government's quarantine guidelines well, all that remains is debt. It's futile," and "We are also drowning in debt because of COVID. What can we do?"
Among them, the Korea Federation of Micro Enterprise and the Emergency Committee claim that over the past year and a half, self-employed people have accumulated more than 66 trillion won in debt, and a total of 453,000 stores have closed. Ultimately, the government's quarantine guidelines controlling business hours and visitor numbers have caused enormous business losses to the self-employed.
Given this situation, self-employed people are urging a swift transition to With COVID quarantine measures. Kim Ki-hong, co-representative of the Emergency Committee, also held a press conference at the Korea Federation of Micro Enterprise in Yeouido, Seoul on the 14th, demanding the removal of business restrictions.
He said, "With the emergence of a new virus variant called Delta, it has been proven that the current quarantine policy is practically ineffective," adding, "The government must now switch to With COVID quarantine policies and guarantee full business freedom to small business owners."
He continued, "The current social distancing quarantine guidelines focusing on business hour and capacity restrictions must be immediately withdrawn," and added, "We need responsible quarantine focusing on managing severe and critical patients, while strengthening the autonomous quarantine responsibility of individuals and businesses."
A rental notice is posted on a building in downtown Seoul. The photo is unrelated to specific expressions in the article. [Image source=Yonhap News]
Discussions about With COVID are also emerging in the political sphere. The Democratic Party of Korea recently launched a With COVID Task Force (TF) to actively discuss the transition of the quarantine system.
Kim Seong-hwan, the senior deputy floor leader of the Democratic Party and head of the TF, said, "We have no choice but to transition to a system that manages COVID-19 like a severe cold," and added, "We need to create a roadmap by the end of October when 70% of the population completes vaccination, reflecting the opinions of the party, government, experts, and self-employed people as much as possible."
Experts have pointed out the need to reform the current quarantine system to prevent further sacrifices among self-employed people. Professor Kim Tae-gi of Dankook University's Department of Economics said, "Government financial support to the self-employed would help, but it is temporary. It is only enough to cover about one month's rent," adding, "Ultimately, to allow self-employed people to generate profits, business restrictions must be lifted."
※ If you have difficult feelings such as depression or know family or acquaintances going through such hardships, you can receive 24-hour expert counseling at suicide prevention hotlines ☎1577-0199, Hope Phone ☎129, Lifeline ☎1588-9191, and Youth Phone ☎1388.
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