The number of eatery and drinking spots in key Seoul areas that went out of business in the first six months of this year jumped nearly 20 percent from a year ago, underscoring the severely adverse impact of COVID-19 on the food industry.

According to data compiled by Seoul Metropolitan Government on Wednesday, 4,219 restaurants, bars, cafes, and convenience stores in the key business districts of Gangnam, Jongno, and Jung went out of business from January to June this year, up 19.8 percent from 3,522 in the same period a year ago.

In the first half of 2019, the number of eatery and drinking locations that shut down grew 9.6 percent on year but it doubled this year, suggesting the coronavirus outbreak was largely blamed for their business fallout this year.

To slow the spread of virus infections, people have stayed out of public space and crowded places. The government also categorized bars and noraebang or singing rooms as high-risk facilities that can accelerate the spread of COVID-19 and advised operational restraint. Such strict social distancing and restriction orders have forced many restaurant and bar owners to shutter business.

The shutdown of such facilities has also led to an increase in vacancies in buildings in the capital city of Korea.

According to Korea Appraisal Board, 9.93 percent of small- and mid-size commercial arcades in Gangnam District were empty in the first quarter ended March, the highest rate since the agency began compiling related data in 2013. It was the case in the past that when a restaurant shuttered, another diner soon filled the space and open business but the location is being left empty for long term these days.

By Pulse

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