Small Businesses hit Hard by Martial law: Sales and Customer Visits Plummet
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A recent survey conducted by the Small business Association reveals a stark reality for small business owners across the country: sales have taken a meaningful hit following the implementation of martial law on December 3. The findings show that nine out of ten small businesses experienced a decline in sales, with many reporting losses of over 50% compared to pre-martial law levels.
The online survey, which ran from December 10 to 12, polled 1,630 small business owners in the food and lodging, wholesale and retail, and personal service sectors.The results underscore the severe economic impact on these businesses, particularly in the hospitality and service industries.
Sales Decline Across Industries
According to the survey, 88.4% of respondents reported a decrease in sales as the martial law situation began. Of these, 36% saw their sales drop by more than half. The accommodation and food and beverage industries where among the hardest hit, with 54.4% and 40.3% of businesses in these sectors reporting losses exceeding 50%, respectively. Similarly, the hair and beauty industries, as well as arts, sports, and leisure-related services, saw 39.9% and 39.7% of businesses experiencing similar declines.
The financial toll was ample. Over a week after the incident,44.5% of businesses reported losses between 1 to 3 million won, while 29.1% lost 3 to 5 million won. A further 14.9% reported losses of 5 to 10 million won,with 11.5% losing even more.
Customer Visits Drop Sharply
The decline in customer visits mirrored the drop in sales. A staggering 89.2% of respondents said that foot traffic to their stores had decreased compared to before the martial law incident. Nearly 38% of small business owners reported a drop of over 50% in customer visits, with smaller declines reported by 25.3% and 20.2% of respondents.
The year-end economic outlook is equally bleak. A full 90.1% of respondents expressed a negative view of the economy, with 61.9% describing it as “very negative” and 28.2% as “somewhat negative.” Only 2.4% of business owners held a positive outlook, with 0.5% being “very positive” and 1.9% “somewhat positive.”
Experts Sound the Alarm
Ryu Pil-seon, an expert member of the Small Business Federation, highlighted the urgency of the situation.“Small business owners are bearing the brunt of the year-end ‘special’ disappearing act,” he said. “Reservation cancellations and decreased consumption are making the decline in sales due to political uncertainty a harsh reality.”
Ryu added, “With the year-end period disappearing, small business owners are being pushed into a position where they have to worry about their livelihood right away.” he emphasized the need for political efforts to resolve uncertainty and stimulate the domestic economy, such as expanding income support measures.
The survey underscores the critical need for support for small businesses, which are the backbone of the economy. As political uncertainty continues, the livelihoods of millions of small business owners hang in the balance.
For more updates on this developing story, stay tuned to World Today News.
South Korea Unveils Plans for Economic Stimulus Amid Global Challenges
In a bid to bolster its economy and support small businesses, South Korea has announced a series of targeted measures aimed at reducing the financial burden on consumers and businesses alike. the announcement comes as the nation navigates a complex global economic landscape, marked by inflationary pressures and supply chain disruptions.
The South Korean government, led by President Yoon Suk Yeol, is focusing on tax relief and special economic policies to stimulate domestic consumption and foster growth. “We need to prepare and implement special economic measures,” Yoon stated during a recent policy briefing, emphasizing the urgency of the situation.
One of the key components of the new strategy is a reduction in the deduction rate for consumption at small business establishments. This move is expected to encourage spending among consumers while providing much-needed relief to small and medium-sized enterprises (smes) that have been hit hard by rising costs and economic uncertainty.
“We need to prepare and implement special economic measures,” Yoon reiterated, highlighting the government’s commitment to supporting the backbone of the economy. The proposed tax adjustments are part of a broader effort to create a more favorable environment for businesses and consumers, with the ultimate goal of driving economic recovery and stability.
The announcement has been met with cautious optimism by economic analysts. Many view the measures as a necessary step to address the current challenges, though some caution that the impact will depend on the effectiveness of the implementation and the broader economic context.
For U.S. readers,the situation in South Korea serves as a reminder of the interconnected nature of global economies. As countries like South Korea implement stimulus measures,the ripple effects can be felt across the globe,influencing trade,investment,and economic policies in the United States and beyond.
As South Korea moves forward with its economic plan, all eyes will be on the outcomes. The success of these measures could provide valuable insights for other nations facing similar challenges,offering a roadmap for navigating the complexities of the modern economic landscape.
Stay tuned for updates on this developing story as South Korea continues to implement its economic stimulus plan and its impact on the global economy becomes clearer.
In the wake of South Korea’s proclamation of targeted measures to support small businesses and reduce financial burdens on consumers, we sat down with Dr. Kim Min-su, an expert in South Korean economic policy, to discuss the implications of these new strategies. As South Korea faces inflationary pressures and supply chain disruptions, Dr. Kim provides insights into how these measures might stimulate domestic consumption and foster economic growth.
The Urgency of Special Economic Measures
Senior Editor: dr. Kim,South Korea’s President Yoon Suk Yeol has emphasized the need for special economic measures. What is the urgency behind these measures, and how do they aim to address the current economic challenges?
Dr. Kim: The urgency stems from the fact that South Korea is navigating a complex global economic landscape, marked by inflationary pressures and supply chain disruptions. These challenges have disproportionately affected small and medium-sized enterprises (SMEs), which are the backbone of our economy. By implementing tax relief and special economic policies,the government aims to stimulate domestic consumption and provide much-needed relief to businesses struggling with rising costs and economic uncertainty.
Supporting Small Businesses: A Key Focus
Senior Editor: One of the key components of the new strategy is a reduction in the deduction rate for consumption at small business establishments. How do you think this will impact both consumers and businesses?
Dr. Kim: This is a strategic move that benefits both parties. For consumers, a lower deduction rate encourages spending, which can definitely help boost demand in the economy.For small businesses, this provides immediate financial relief, allowing them to manage their cash flow better and invest in growth opportunities. It’s a win-win situation that can definitely help stabilize the economy in the short term while fostering long-term growth.
The Broader Economic Context
Senior Editor: The announcement has been met with cautious optimism by economic analysts. What factors will determine the success of these measures, and how might they influence the broader economic context?
Dr.Kim: The success of these measures will largely depend on their effective implementation and the broader economic context. For instance, if global inflationary pressures ease, the impact of these measures could be more pronounced. Additionally, the government’s ability to communicate these policies clearly and ensure that businesses and consumers understand the benefits will be crucial. If prosperous, these measures could serve as a model for other nations facing similar challenges, highlighting the importance of targeted support for SMEs and domestic consumption.
Global Implications and Lessons for the U.S.
Senior Editor: For U.S. readers, how might the situation in South Korea serve as a reminder of the interconnected nature of global economies?
Dr. Kim: The interconnectedness of global economies means that stimulus measures in one country can have ripple effects across the globe.For the U.S., this could influence trade relationships, investment flows, and even domestic economic policies. As South Korea implements its economic plan, the outcomes could provide valuable insights for the U.S. and other nations facing similar challenges. It’s a reminder that economic stability in one country can contribute to global economic resilience.
Looking Ahead: The Road to Economic Recovery
Senior Editor: As South Korea moves forward with its economic plan, what outcomes should we be watching for, and how might they shape the future of the global economy?
Dr.Kim: Key outcomes to watch include the immediate impact on consumer spending and business investment, and also longer-term indicators such as job creation and GDP growth. If these measures succeed in driving economic recovery and stability, they could offer a roadmap for other nations. The success of South Korea’s approach could highlight the importance of targeted support for SMEs and domestic consumption in navigating the complexities of the modern economic landscape.
Stay tuned for updates on this developing story as South Korea continues to implement its economic stimulus plan and its impact on the global economy becomes clearer.
