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“Customers Vanish After Emergency Martial Law”

Tears of Seoul’s Underground Shopping Malls

Seoul’s underground shopping malls face their biggest crisis due to the worsening economic downturn following the December 3rd emergency martial law last year. Merchants lament that the current situation is more difficult than during the COVID-19 pandemic in 2020.
According to the Seoul Facilities Corporation and the National Association of Underground Shopping Mall Merchants on the 29th, overdue rental fees for 349 stores directly managed by the corporation in underground shopping malls amounted to 279 million KRW from January to April, more than double last year’s total overdue amount of 120 million KRW. As of the end of April, vacancies nearly doubled to 30 stores from 17 at the end of last year.
Seoul’s underground shopping malls are facing their worst crisis due to the deepening recession triggered by emergency martial law. On the 26th, Gangnam Station underground shopping mall was deserted, with many stores closed.
The scale of overdue payments and vacancies in underground shopping malls managed by entrusted corporations, not directly by the Seoul Facilities Corporation, is reportedly much larger than in directly managed malls. Stores managed by entrusted corporations account for 92.9% of Seoul’s 2,788 underground shopping mall stores. Merchants have begun collective action, saying, “They cannot endure it anymore.” Today, the association held a rally in front of Seoul City Hall, with about 350 merchants participating, urging the Seoul Metropolitan Government to prepare countermeasures.
Daily Revenue Plunges 80% After Martial Law… “Working Two or Three Jobs to Pay Rent” 2,788 Underground Shopping Malls on the Brink of Collapse
On the evening of the 28th, at 7 PM, the Yeongdeungpo Station underground shopping mall in Seoul, where about 80 small shops selling clothes and accessories are concentrated, most stores began to close, even though it was early evening. Lee Hye-young (66), who has run a clothing store here for 30 years, sighed, “Before the emergency martial law on December 3rd last year, daily sales were 400,000 to 500,000 KRW, but now it is barely one-fifth of that.” On this day, Ms. Lee sold three pieces of clothing (82,000 KRW). She also defaulted on her monthly rent of 3.13 million KRW to the Seoul Facilities Corporation and recently received a contract termination notice.
Merchants in Seoul’s underground shopping malls are on the verge of collapse due to the economic downturn triggered by last year’s December 3rd emergency martial law. This is because consumer sentiment has shrunk and the floating population has drastically decreased, from the emergency martial law to the presidential impeachment and election period. These merchants collectively state that support measures from the Seoul Metropolitan Government, such as rent reduction, are desperately needed, just like during the COVID-19 pandemic.

Revenue Down, Rent Stays the Same
Merchants, unable to endure the deepening recession after emergency martial law, took to the streets. On the morning of the 29th, about 350 underground shopping mall merchants (police estimate) gathered in front of Seoul City Hall, holding placards that read ‘Guarantee Right to Survival’ and urging support from the Seoul Metropolitan Government.
Park Jung-hoon (42), who attended today’s rally, said, “After running a contact lens store in Jamsil Station underground shopping mall for 8 years, customers decreased by over 20% in just one month after the December 3rd emergency martial law.” He expressed frustration, saying, “There is not a single support measure from the Seoul Metropolitan Government that considers this situation.”
Lee Min-woo (49), who operates an underwear specialty store in Gangnam Station underground shopping mall, said, “I have been in business for 15 years, but this is the worst.” Mr. Lee said, “The underwear sales business has its peak season from December to March, including Valentine’s Day and White Day.” He added, “After the emergency martial law, large-scale rallies continued in Seocho-dong, so the first quarter was virtually like opening for business and then closing.”
Merchants struggling to pay rent are firing employees and becoming “solo owners” or entering the side job market. Shin Sung-hee, head of the Yeongdeungpo Station underground shopping mall merchants’ association, said, “The rental burden is heavy, but monthly sales are not coming in, so the number of merchants looking for part-time work such as delivery and cleaning has increased sharply.” She also relayed, “At a nearby shoe store, the owner’s son works part-time for a few hours a day, and his elderly mother just sits outside, making sure the goods don’t get damaged.” Cases of completely returning stores are also rampant. According to the Seoul Facilities Corporation, the number of returned stores in directly managed underground shopping malls this year is 13, significantly exceeding last year’s 12.

“Rent Reduction is a Necessity, Not an Option”
Merchants emphasize that rent reduction is not an option but a necessity in the current situation. Merchants at Gangnam Station underground shopping mall held a rally demanding rent reduction in December last year, about a week after declaring emergency martial law. Kim Jin-won, head of the Gangnam Station Underground Shopping Mall Merchants Association, said, “Gangnam Station has the highest rent among Seoul’s underground shopping malls.” He added, “Sales have plummeted, but everyone is struggling to earn the same rent.”
These merchants already submitted a petition to Seoul Mayor Oh Se-hoon in the name of the National Association of Underground Shopping Mall Merchants last January. In the petition, the association appealed, “The sudden emergency martial law and impeachment situation that occurred in the underground shopping malls, which were waiting for commercial area recovery after the COVID-19 disaster, are freezing the commercial area again and causing great damage.” They pleaded, “Measures are needed to reduce rent until the end of this year.”
In this situation, merchants were strongly protesting when news broke that the Seoul Metropolitan Government was promoting a plan to change the bidding method to individual store units starting this year. Merchants criticized the Seoul Metropolitan Government, questioning whether it properly understands the reality of underground shopping malls, as it seems to be raising prices through competitive bidding instead of reducing rent.

Source: 계엄 후 매출 80% 급감…”30년 일 접을 판” 비명 쏟아진 곳 (Korea Economic Times)