"Summer is Scary"... Early Heatwave Leaves Small Business Owners 'Crying'

[Financial News] #. Mr. Choi (30), who has been running a dessert shop in Jongno-gu, Seoul for two months, is considering closing the store every Monday to Wednesday for the time being. Due to the heatwave exceeding 37 degrees, sales have dropped by about half, making it a loss to open the store. Mr. Choi lamented, "Even as the owner, I barely earn the minimum wage. The monthly cooling cost of 1 million won is also burdensome."
Small business owners are frowning due to the unusually early July heatwave. As citizens' outdoor activities decrease, the sales of stores that do not rely on delivery have also significantly decreased. As the early heatwave becomes the 'new normal', this trend is expected to continue. Experts advise that the government should actively prepare mid- to long-term measures to reduce the damage to small business owners.
According to the real-time urban data monthly commercial district status trend in Seoul on the 24th, as of 12 p.m. on the 22nd, the payment amount and number of transactions in the Bukchon Hanok Village commercial district decreased by 53.7% compared to the same time last week. Compared to the average of the same time over the past 28 days, it decreased by 49.5%.
On this day, during lunchtime, it was difficult to find a full store around Bukchon Hanok Village at noon. Among the 20 stores within 200m of Exit 2 of Anguk Station on Seoul Subway Line 3, only seven places, such as a sundubu-jjigae restaurant, a tonkatsu specialty store, and a famous cafe, were full. Three stores had no customers at all. The owner of a Korean set meal restaurant complained, "Dinner business is even worse."
The reason small business owners are struggling is analyzed to be because the heatwave exceeding 37 degrees has continued since July, and citizens are refraining from going out. The first heatwave warning issued in Seoul on the 7th was 18 days earlier than last year. On the 8th, the daytime temperature in Seoul rose to 37.7 degrees, recording the hottest day in early July (1st to 10th) in 117 years.
Small business owners unanimously said that the heatwave that arrived in early July was a direct hit to sales reduction. Mr. Kim (42), who runs a general store, said, "Usually, sales decrease by more than 50% around mid-August when it gets particularly hot, but this situation is already happening in July this year," and added, "I've been in business for 14 years, and this is the first time I've experienced this." He also said, "The monthly rent is about 3 million won, but there are so few customers that I can barely cover living expenses."
There are also cases where relatively cheaper ingredients are chosen as ingredient costs soar. Mr. Lee (in his 60s), who runs a barbecue restaurant, said, "Instead of lettuce, which has risen in price, I am serving perilla leaves or cabbage."
Experts advised that various measures should be prepared to minimize damage from climate risks. Professor Lee Hong-joo of the Department of Consumer Economics at Sookmyung Women's University analyzed, "In the short term, we can consider emergency support measures such as temporarily subsidizing rent," and added, "Ultimately, we need to prepare quick compensation methods such as creating a disaster safety fund."jyseo@fnnews.com Seo Ji-yun