A 경기 Frozen Further in Sorrow... Business Community Wrapped in Mourning and Silence

Reduction of Year-End and New Year Events in the Economic Sector
Retailers Restrain Excessive Promotions
Decrease in Overseas Travel and Flight Cancellations

Amid the aftermath of the martial law situation, high exchange rates, high inflation, and low growth have converged at the end of the year, compounded by the Jeju Air disaster, severely impacting the grassroots economy. With scheduled events and company dinners being canceled, not only are self-employed individuals and small business owners immediately affected, but the travel industry is also hit hard as overseas trips planned during the holiday period are being canceled one after another. Efforts to stimulate domestic consumption during the year-end and New Year holidays appear to be coming to a halt.

According to the business community on the 31st, major economic organizations and companies have decided to temporarily postpone or scale down year-end and New Year events, internal meetings, and consumption promotion campaigns that were planned to boost domestic demand.

Yonhap News

Major groups such as Samsung, SK, and LG wrapped up the year quietly without any special year-end ceremonies. Taking into account the national mourning period until January 4 next year, flags are being flown at half-mast, and some departments are preparing support measures for the bereaved families. Since the world’s largest home appliance and IT exhibition, CES 2025, will be held in the United States early next year, related departments are reportedly focusing on their work according to the schedule.

A wave of mourning continues at Hyundai Motor Group, where victims of the Jeju Air passenger plane disaster were from. Hyundai Motor Group postponed the New Year gathering that Chairman Chung Eui-sun was to attend and flew flags at half-mast across all Hyundai Motor and Kia workplaces. The Kia labor union also joined the mourning by canceling the New Year sunrise event, creating an atmosphere of minimizing external activities as much as possible.

The reason Hyundai Motor Group postponed external events is that among the victims of the passenger plane disaster were two employees from Kia’s Gwangju plant and one employee from the Kia Tigers publicity team. Most of them boarded the plane for family travel, and it is known that their entire families were involved in the tragedy. In particular, the three-year-old son of the Kia Tigers publicity team employee was the youngest passenger on this flight, adding to the sorrow.

Especially in the distribution sector, there is a continuing atmosphere to refrain from excessive promotional activities that were being prepared for the year-end and New Year. Marketing plans are being canceled or postponed in line with the national mourning period, and travel product sales broadcasts are being suspended.

Shinsegae Department Store decided not to carry out promotional activities such as advertising boards and banners on store exteriors related to the New Year sale event until the 4th of next month. The Christmas video broadcast on the main store’s digital signage, ‘Shinsegae Square,’ will also be stopped. Large supermarkets and convenience stores are also scaling back various promotions.

Overseas travel and flight ticket reservations are being canceled en masse. Since the Jeju Air accident occurred, the travel industry has been flooded with inquiries about canceling or changing trips. According to Jeju Air, from midnight on the 29th to 1 p.m. on the 30th, the number of canceled tickets was approximately 33,000 for domestic flights and 34,000 for international flights, totaling about 68,000 cancellations.

The ‘year-end boom’ has also disappeared. A representative from a group said, "Although the company has not issued a ban on company dinners, appointments are being postponed or canceled," adding, "The atmosphere is to work as usual without getting excited just because it is the year-end and New Year." The Korea International Trade Association canceled its executive year-end party scheduled for the previous day.

The New Year gathering hosted by the Korea Chamber of Commerce and Industry, an economic community event to welcome the new year, is also expected to proceed in a mourning atmosphere. The ‘2025 New Year Gathering’ will be held on January 3 at the Korea Chamber of Commerce and Industry building in Jung-gu, Seoul, with about 500 guests originally invited, including group chairpersons, heads of economic organizations, and political figures. A business community official said, "Most of the chairpersons who said they would attend had expressed their intentions before the disaster, so there is a possibility of changes until the day before the event."