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🇰🇷 South Korea /Disasters & Emergencies

South Korean merchants suffer as heatwave deters customers and raises costs

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • South Korean merchants and self-employed individuals are struggling as a severe heatwave deters customers and increases operating costs.
  • Many businesses, particularly traditional markets and restaurants, report significant drops in customer numbers and revenue, with some seeing sales plummet by over 90%.
  • Rising ingredient prices and high cooling costs exacerbate the financial strain, pushing small business owners to the brink.

A relentless heatwave is taking a heavy toll on small business owners and merchants across South Korea, compounding existing economic challenges. The extreme temperatures are deterring customers from visiting traditional markets and outdoor establishments, leading to sharp declines in sales and revenue.

People aren't coming out of their homes because it's so hot and the heatwave warning messages keep coming.

— Mr. Kang, a butcherDescribing the impact of the heatwave on customer traffic in Dongdaemun Market.

In Seoul's Dongdaemun Market, a butcher lamented the near absence of customers during daytime hours, attributing it to the oppressive heat and constant heatwave alerts. Similarly, a seafood vendor in Mangwon Market reported a more than 50% drop in customers compared to the previous year, struggling to preserve his stock as the heat intensifies. Consumers are increasingly opting for online grocery delivery services rather than braving the sweltering conditions to visit markets.

The impact is particularly severe for restaurants and cafes reliant on foot traffic. One barbecue restaurant owner in Eunpyeong-gu, Seoul, reported a drastic drop in weekend revenue, from an average of 3 million won to just 200,000 won on a recent Saturday. Maintaining a comfortable indoor temperature has also become a challenge, with air conditioners struggling to keep the space below 27 degrees Celsius.

Compared to this time last year, customers have decreased by more than half.

— Mr. Kim, a seafood vendorExplaining the significant drop in business at Mangwon Market.

Beyond lost sales, business owners face rising operational costs. Cooling expenses have surged, and the heatwave is driving up the prices of fresh ingredients like vegetables and fish. A jokbal (pig's trotters) restaurant owner noted that vegetable prices are significantly higher than last year, making it costly to provide side dishes. A raw fish restaurant owner explained that increased costs at the source are inflating wholesale fish prices, as suppliers incur extra expenses to maintain freshness during transport.

On Saturday, revenue was only 200,000 won, when it's usually 1.5 to 2 million won even in summer.

— Mr. Lee, a barbecue restaurant ownerDetailing the dramatic decrease in sales due to the heat.

While some businesses, like delivery-focused cafes, have seen an increase in orders, those dependent on in-person customers, such as restaurants and hair salons, are facing significant difficulties. Many small business owners fear they may not be able to withstand a prolonged period of extreme heat, pushing them into an increasingly precarious financial situation.

The cost of vegetables seems even higher than last year.

— Mr. Hwang, a jokbal restaurant ownerHighlighting the increase in ingredient costs due to the heatwave.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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