How Coronavirus Affects Commercial Districts

Commercial districts in the capital are knowledgeable contrasting fates as more and more people telecommute as a result of coronavirus epidemic.

In the once-well-liked shopping and entertainment roads of Itaewon, Gangnam and Hongik University area, visitor traffic has halved, and tourist hotspots like Myeong-dong, Insa-dong and Samcheong-dong are deserted. But convenience retailers in dormitory towns will be booming.

Shinhan Lender compared credit and debit card use in eating places and convenience stores through the fourth one fourth of last year with the same period of 2019. It divided Seoul's professional districts into four large regions -- the ones that depend on tourists (Myeong-dong, Insa-dong and Samcheong-dong), commercial districts famous among young persons (Itaewon, Gangnam subway station spot and Hongik University area), areas that depend on local residents for organization (Sanggye-dong, Yonhui-dong, Sorae Village in Bangbae-dong) and hip allies with characterful outlets and eating places (Haebangchon near Itaewon, and Mangwon Industry near Hongik University). 

Commercial districts which used to see hefty traffic from visitors from other areas of metropolis were hit hard. In eating places in the get together district of Itaewon, the coronavirus hotbed in May, credit card work with plummeted 63 percent, and at convenience stores there 34 percent.

Restaurants found in Hongik University area (straight down 58 percent) and Gangnam subway station area (straight down 43 percent) suffered similar fates. In convenience stores there, credit card employ fell 46 percent and 32 percent.

One shopkeeper found in the trendy place around Hongik University said, "Universities shifted to online classes, so not only Hongik students but those from other institutions stopped coming here."

But convenience stores in the northeastern suburbs of Nowon and Sanggye saw credit rating card use rise 8.6 percent this past year. One owner of a ease store within an apartment sophisticated north of Seoul said, "After restaurants and pubs were purchased to close at 9 p.m., there's been an increase in customers investing in alcohol and food. It's problematic for me to feel great about my booming business, but I'm relived that I opened the retail store in a residential neighborhood and not downtown."

Shops and restaurants that made their funds during the night suffered bitterly. Credit rating cards use in Itaewon restaurants plummeted 63 percent, however in nearby Haebangchon it just fell four percent. And while Itaewon shops observed credit rating card use sink 34 percent, in Haebangchgon it simply fell 0.8 percent.

"Places like Itaewon which used to draw a lot of clients from other areas of city fared poorly, but areas like Haebangchon did better because locals held them afloat."

The trend of men and women spending more money within their own neighborhood is likely to continue, Shinhan Lender said.