Aftermath of Martial Law and Impeachment, Self-Employed and Small Business Owners Targeting Year-End Sales 'In Distress'

46.9% of Self-Employed Experienced Reservation Cancellations After Martial Law
National Assembly Speaker Urges "Difficulties for Self-Employed, Resume Year-End Parties"

Amid growing concerns over domestic demand contraction following the declaration of emergency martial law on December 3, dissatisfaction is rising among small business owners and self-employed individuals who had been counting on the year-end peak season. On the 18th, a post titled "December sales, the country is going crazy" was uploaded on the self-employed community 'Apeunikka Sajangida' (Because It Hurts, I'm a Boss). The author, Mr. A, who works in the education sector, lamented, "December is usually the peak season with the highest sales," adding, "The country is going crazy, and we can't even hit the average. I've been in education for 10 years, and this is the worst December ever."

Since the declaration of emergency martial law on December 3, concerns about domestic demand contraction have materialized, and dissatisfaction is growing among small business owners and self-employed individuals who were counting on the year-end peak season. Asia Economy

He continued, "Since the education is targeted at adults rather than children, the impact of economic difficulties is immediately noticeable," and lamented, "After the martial law, the advertising CPC (cost per click) rate doubled. People aren't even clicking on ads." He added that other self-employed people in the education sector are experiencing similar situations, saying, "Many are in a dire state. I had dinner with a gym manager today, and he said it's the worst ever. It seems everything has come to a complete stop."

Another self-employed person who saw the post pointed out, "The aftermath since the December martial law is huge. It's not just me; those around me are the same," and added, "It's not just about money, but a society that lacks the leisure to consume." Yet another self-employed individual said, "The main cause of psychological contraction seems to be the possibility of martial law being declared again," and described the atmosphere, "People feel uneasy, so they neither gather nor go out."

In fact, according to the 'Emergency Status Survey of Small Business Owners and Self-Employed' released by the Korea Federation of SMEs on the 16th, out of 505 respondents in the food service and lodging industries, 237 (46.9%) reported direct or indirect damages such as group reservation cancellations following the emergency martial law situation. Major damage cases included cancellations of year-end group dinners in the food service sector and cancellations of guest stays and safety inquiries in the lodging sector.

As difficulties for the self-employed have continued amid economic slowdown and the martial law situation followed by impeachment proceedings, the National Assembly has urged that year-end events proceed as planned to stimulate domestic demand. Even the Speaker of the National Assembly has stepped forward acknowledging the harsh reality faced by small businesses, self-employed individuals, and the local economy. Right after the impeachment motion against President Yoon Seok-yeol was passed on the 14th, Speaker Woo Won-shik appealed, "I hope the year-end for the people will be a little happier. I urge you to resume the canceled year-end parties," adding, "Small businesses, self-employed individuals, and the local economy are in great difficulty."

According to the "Emergency Survey on Small Business Owners and Self-Employed" announced by the Korea Federation of Small and Medium Business on the 16th, 237 out of 505 restaurant and accommodation business owners (46.9%) reported experiencing direct or indirect damage such as group reservation cancellations following the martial law situation. Major cases of damage included cancellations of year-end group dinners such as year-end parties for the restaurant industry, and cancellations of guest stays and safety inquiries for the accommodation industry. Asia Economy

Some economic organizations, including the Korea Economic Association (HanKyungHyup), also sent cooperation letters to their member companies on the 19th, requesting that scheduled year-end and New Year events and gatherings proceed as planned to boost domestic demand and help overcome the difficulties faced by small business owners. HanKyungHyup requested its members to ▲ proceed with year-end and New Year events and gatherings as scheduled ▲ encourage employees to use remaining annual leave ▲ pre-purchase supplies and consumables ▲ sign contracts early and pay deposits in advance for events ▲ make early payments for deliveries to partner companies. Lee Sang-ho, head of the Economic and Industrial Division at HanKyungHyup, said, "Recent domestic and international political uncertainties and cancellations of scheduled events and gatherings have exacerbated the difficulties of small business owners," adding, "It is a time when active cooperation from companies is needed to overcome domestic demand stagnation and the management difficulties of small business owners."