On the afternoon of the 9th, the restaurant street in Jongno District, Seoul, was unusually quiet. The 'year-end special' atmosphere was absent. Instead, most restaurants were dark and devoid of any signs of life. As the clock passed 9 p.m., the alley felt so desolate that it was chilling. By around 10:30 p.m., some restaurants had only one table left occupied.
Since the declaration of a state of emergency by President Yoon Suk Yeol on the 3rd, numerous gatherings and year-end parties have been canceled one after another, causing the year-end special that small business owners had hoped for to vanish. As news spread on social media that the impeachment situation might last longer than expected, the bustling and lively year-end atmosphere disappeared. Not only in areas densely populated by office workers such as Gwanghwamun, Jongno, and Gangnam, but also in restaurants near the Presidential Office in Yongsan, customer visits significantly dropped after the state of emergency was declared.
According to a report by Chosun Biz on the 10th, the owner of an H beef specialty restaurant frequently visited by Ministry of National Defense employees near the Presidential Office in Yongsan lamented, 'All year-end reservations have been canceled due to the impeachment situation.'
On the 2nd, during a livelihood forum held in Gongju City, South Chungcheong Province, President Yoon said, 'The damage from no-shows amounts to 4.5 trillion won annually,' expressing his intention to come up with measures to eliminate no-shows. It was just the day before the declaration of the state of emergency.
However, as President Yoon himself became embroiled in the impeachment situation, it instead resulted in encouraging no-shows. Although the state of emergency was lifted quickly, many businesses in key commercial areas such as Gwanghwamun, Jongno, and Yongsan were hit hard from the 4th to the 9th.
In particular, customer numbers noticeably decreased around public institutions. This was due to warnings from each public institution urging not to engage in second gatherings or drunk driving during year-end parties. With the occurrence of the emergency situation, public institutions have even taken it upon themselves to cancel departmental gatherings.
A representative from the Mapo District branch of the Korean Food Service Industry Association said, 'The number of dinner guests from the 4th until last weekend has fallen short of a normal daily count, leading us to close an hour early each day,' adding, 'During COVID, while there were time and personnel restrictions, customers consistently came in, and at least government subsidies were provided.'
In particular, customer numbers noticeably decreased around public institutions. This was due to warnings from each public institution urging not to engage in second gatherings or drunk driving during year-end parties. With the occurrence of the emergency situation, public institutions have even taken it upon themselves to cancel departmental gatherings.
Experts agree that when politics enters an extremely unstable phase, consumption and investment naturally decline.
The Korea Development Institute (KDI) stated in its economic trends report for December, released on the 9th, 'Recently, our economy shows signs of a slowdown centered around the construction industry, with increasing uncertainty.'
According to the report, particularly in consumer goods, a downward trend continues, which could be an obstacle to domestic recovery. This assessment of sluggish domestic demand has persisted since December of last year.
According to the 'Monetary Credit Policy Report' released by the Bank of Korea in January 2017, during the impeachment crisis of former President Park Geun-hye, it analyzed that 'by looking at the impeachment of former Presidents Roh Moo-hyun and Park Geun-hye, the expansion of political uncertainty negatively affects the service sector, equipment investment, and private consumption,' adding, 'The impact gradually diminishes after the third quarter.'
Previous cases suggest that the fear of cancellations hitting small business owners will not subside until the second half of next year.
However, Bank of Korea Governor Lee Chang-yong noted during a briefing on the 5th, 'The impact of the presidential impeachment on our economy will be limited in the medium to long term.' He assessed, 'Based on past experiences, even if this political situation lasts long, the political and economic processes can be separated.'
Earlier, on the 2nd, President Yoon announced support measures for small business owners and micro-business owners, including lowering delivery fees as part of anti-no-show measures. He also added that a dedicated budget equivalent to 5.9 trillion won, the largest ever, would be allocated to support small business owners and micro-business owners suffering from the economic downturn.
Earlier, on the 2nd, President Yoon announced support measures for small business owners and micro-business owners, including lowering delivery fees as part of anti-no-show measures. He also added that a dedicated budget equivalent to 5.9 trillion won, the largest ever, would be allocated to support small business owners and micro-business owners suffering from the economic downturn.
A small business owner operating multiple restaurants in downtown Gwanghwamun said, 'I don't understand how civil servants, who can't even freely hold gatherings, can plan the largest budget ever and implement policies properly,' adding, 'An atmosphere is being created that makes people feel guilty for enjoying their daily lives with laughter and drinks.'