"Sales Slashed in Half, It's Deeply Unfair" — Gwangjang Market Shop Owners File 300 Million Won Lawsuit Against Street Vendors

[The Financial News] Amid ongoing price-gouging controversies, regular shops in Gwangjang Market are seeking damages from street vendors.

According to Yonhap News Agency on the 23rd, the Gwangjang Market Merchants Association, representing regular shops, has decided to file a lawsuit seeking approximately 300 million won in damages against the Gwangjang Traditional Market Merchants Association, which mainly consists of street vendors. The association argues that the recent price-gouging scandals involving some vendors have driven away customers, resulting in significant losses that warrant compensation.
The 300 million won claim reflects the estimated financial losses suffered by regular shop owners. Over 200 members signed the petition, and on the 13th, a certified letter was sent to the Street Vendors Association. No response has been received so far.
Gwangjang Market refers to the area stretching from the three-story THE EAST-GATE MARKET building, built in 1956, to the West Gate. The market is divided into two zones: 'Gwangjang Market' and 'Gwangjang Traditional Market,' each with its own merchants association. More than 200 regular shops, including restaurants, clothing, bedding, and traditional crafts, belong to the Gwangjang Market Merchants Association.
The Street Vendors Association comprises about 250 stalls located in the Gwangjang Traditional Market, stretching from the food alley to the East Gate.

The price-gouging controversy, which mainly involves street vendors in Gwangjang Traditional Market, has reportedly driven away both local and foreign customers, resulting in severe losses for regular shops.
A representative of a raw beef restaurant explained, "On weekends, all 200 seats used to be filled with waiting customers, but since the controversy, there are empty seats and no year-end party reservations. Sales have dropped to less than 60 percent of previous levels." He added, "Once a controversy arises, the impact lasts for over two months."
Many merchants echoed that "when Korean customers decrease, word spreads and foreign customers also stop coming." An owner of a traditional snack shop told Yonhap News Agency, "The number of Korean customers has dropped by more than half. Saturday sales used to reach 3 million won, but now it’s only about 1 million won since the controversy."
A representative of the Gwangjang Market Merchants Association also stated, "Because the names are similar, our office is flooded with complaint calls, which is very unfair." However, a representative of the Street Vendors Association responded, "If a lawsuit is filed, we will respond accordingly," showing no intention to back down.
Meanwhile, an official from Jongno District commented, "On the 20th, we met with the heads of both associations to discuss the matter," but added, "Since no lawsuit has actually been filed yet, it is not the right time for us to intervene."
bng@fnnews.com Kim Hee-sun Reporter