By Nam Hyun-woo
The South Korean Olympians are sending their passion and grit from Rio de Janeiro to their home, but the 2016 Games’ economic effect here is not as vital as the athletes are.
According to fried chicken franchises, Friday, one of the sectors that enjoy the greatest benefits from the Olympics and other international sporting events, sales did not grow as much as they expected they would before the Rio Games began.
The sales of BBQ Chicken have increased some 15 percent during last weekend from a week earlier. The number is slight compared to its sales increases during the 2012 Games, a 35 percent year-on-year hike, and during the 2010 World Cup, a whopping 90 percent hike.
“Not only the Olympics but also the extraordinary heat wave these days affect sales,” an official at the company said.
Other chicken franchises also posted plain increases. Last weekend, Goobne Chicken’s sales increased 5 to 10 percent from the previous week, Kyochon Chicken also saw 5 percent growth in its sales.
Naturally, the stocks of raw chicken suppliers and companies selling beer, which is considered an unbeatable combo with fried chicken here, remained flat.
From Aug. 1 to 8, the stocks of Harim, a raw chicken supplier, dropped from 4,615 won to 4,420 won. Another supplier, Maniker, also saw a drop from 1,195 won to 1,110 won during the same period. Hite Jinro, South Korea’s leading alcoholic beverage seller, also showed a slow increase from 22,450 won to 22,600 won. Lotte Chilsung stock plunged from 1,617,000 won to 1,601,000 won during the cited period.
Instead, around-the-clock convenience stores are enjoying sharp increases in their stock prices. BGF Retail, which owns CU, which was at 194,000 won on Aug. 1, soared to 200,500 won by Aug. 8. As of Friday morning, the price had risen to 217,000 won.
This tendency has been attributed to the 12-hour time difference between South Korea and Rio de Janeiro.
According to KB Kookmin Card, the frequency of card use at convenient stores increased most sharply among the 2012 London Olympics and the 2014 Brazil World Cup among 12 food and retail businesses. There is an eight-hour time difference between South Korea and London.
For broadcasters, the time difference comes as an adverse impact. According to advertising industry sources, the three major broadcasters here -- KBS, MBC and SBS -- have been paid some 6 billion won for commercials during their Olympic programming as of Aug. 9. Though they are still selling time slots for advertising, their combined commercial revenue stand at some 18 billion won, accounting for some 30 percent of the 59 billion won they earned from commercials during the 2012 Games.
Given that they paid some 44 billion won for the broadcasting rights to the Rio Games, the small revenue from the commercials will likely incur huge losses for them.
Viewers say not only the time difference but also the fact that the 2016 Games has fewer magnets to attract South Korean viewers, as well as the Olympics itself is not as popular as it was in previous years.
The country’s star Olympian, swimmer Park Tae-hwan, suffered an early exit in his competitions and other medal favorites in judo also ended their outings in disappointment. Budding stars have remained unseen in South Korea’s 2016 campaign because of scheduling. The archery competitions, in which the country has so far claimed most of its medals, were broadcast at 3 a.m. to 5 a.m.