By Kim Hyun-cheol
Staff Reporter
Normally, this is one of the busiest periods of the year, two weeks ahead of the big Chuseok holiday. This year, however, signs of lean times are unmistakable, affecting market vendors, discount outlets and travel agencies, and the size of bonuses handed out to workers.
Traditional markets have been severely hit by the slump, a bank manager said.
``Merchants in Namdaemun Market usually take out loans to secure money for massive purchase before Chuseok, but not a single one has been taken this year so far,'' said Park Chan-wook, the manager of the Korea Exchange Bank's Namdaemun branch.
Frozen consumer sentiment has led to the downsizing of gift sets released by local retailers, with the economic downturn lowering expectations of shopping sprees for the holiday.
Discount stores started selling gift packages from Friday, but prices have notably dropped from previous years. In most discount stores, budget gifts of small food and household care goods make up the majority of items, while pricey delicatessen sets are less popular.
Low budget gift sets account for one third of the items released by Shinsegae E-Mart, the nation's biggest retailer. Its rival Homeplus also increased products under 30,000 won, accounting for over 60 percent of its seasonal gift items.
``Considering depressed overall consumption, we are displaying most low-price items in the front of stores to better appeal to money-sensitive customers,'' an E-mart spokesperson said.
Bonus money for the holiday averaged 888,000 won ($799) per person, down 69,000 won from a year earlier, the Korea Employers Federation (KEF) said Sunday. Companies giving out extra money also shrank 2.2 percent to 65.9 percent.
``The slumping economy hit companies and the prevailing annual salary system also contributed to lower bonuses,'' KEF said.
To small business owners, this year's Chuseok is also far from a family reunion and it's not just because the holiday is shorter than usual this time.
About 62 percent said they were not planning to visit their hometown during the holiday in a recent survey by the Korean Telephone Directory. Of these, 41 percent said the homecoming expense was burdensome, outnumbering 36 percent of those naming the short period as the reason.
Another victim of the stagnation are travel agencies specializing in overseas trips, for which Chuseok is very popular. The shorter holiday period this year is also attributable.
Customers booking overseas programs during the holiday more than halved from last year to 9,500, said Hanatour, one of the biggest agencies. Reservations for the whole of September also dipped 15 percent year-on-year.
The company last year had 29,000 Chuseok travelers, taking up over 30 percent of those for September.
``We still expect reservations to rise until right before the holidays, because travelers these days tend to make late bookings,'' Hanatour said. ``But the number will be less than half of last year due to the bad economy.''
Still, some businesses are enjoying success amid a generally inactive market atmosphere.
Overall shortcomings are forcing travelers' sights to within the country. Hanwha Resort, which owns 12 condominium resorts nationwide, had 15 percent more reservations than last year for the Chuseok period.
Some department stores expect to maintain their usual level of sales thanks to demand from lucrative customers such as conglomerates.
Lotte Department Store expects its sales to grow 5 to 10 percent for the weekend. ``Fortunately, better off consumers seem to be still in a spending mood,'' it said.