Gangnam's economic slump impacts small businesses

[Anchor]

Even without the political instability, our economy, especially the domestic sector, is suffering from prolonged sluggishness.

Famous shopping districts and well-known establishments are also unable to hold on, leading to an increase in vacant commercial spaces and significant damage to surrounding small businesses.

Reporter Hwang Hyun-kyu has covered the situation on-site.

[Report]

This is Gangnam-daero, located between the symbolic bustling areas of Seoul's Gangnam Station and Sinnonhyeon Station.

A multiplex cinema has taken down its sign, and a franchise cafe has closed its doors.

[Lee Min-joo/Nowon District, Seoul: "In the past, when you came to Gangnam, there were big brand pubs that you couldn't find in the neighborhood, so it seemed like more people gathered in Gangnam, but these days, the commercial area has really died down...."]

Another cafe that has closed has been vacant for over six months.

[Kang ○○/Nearby office worker: "I heard that they couldn't hold on because the losses were severe and the rent was too high."]

Even large franchises have stopped operations, and the vacancy rate for medium to large commercial spaces near Gangnam Station has exceeded 10%.

The vacancy rates in other areas of Gangnam, such as Nonhyeon Station, Sinsa Station, and Cheongdam Station, have also risen to double digits.

The weight of the domestic sluggishness, which even bustling areas and large stores cannot withstand, has shifted directly to small business owners who rely on foot traffic for their sales.

[Han Sang-ki/Gopchang restaurant owner: "(In the area) there used to be 8 stores. Now only 2 are left. As the larger stores disappear, small-scale commercial areas like ours die off."]

Even before the political instability hit, there were complaints everywhere that the shadow of recession was already looming over the economy.

[An Kwang-mo/Meat restaurant owner: "I experienced the IMF (financial crisis) before, and it feels like that atmosphere is back. It's been severe for about the last six months, and I wondered why it was only me, but the media reports say everyone is struggling and having a hard time."]

There is an urgent need for measures to support small businesses in crisis and to increase youth employment to bolster the domestic economy, but the government is almost paralyzed.

Emergency economic inspection meetings and plans for supplementary budgets early next year are not providing comfort to those who can barely hold on for a day.

This is KBS News Hwang Hyun-kyu.