Home > National > Social Affairs

Small business owners face tough decisions during extended Chuseok holiday

Published: 23 Sep. 2025, 12:30

Gift boxes for Chuseok pile up at Cheongnyangni traditional market in eastern Seoul on Sept. 21. [YONHAP]

Kim Min-ji, who has been running a small accessories shop in Mapo District, western Seoul, for three years, plans to open her store for just a day or two at the beginning of the Chuseok holidays and shut down for the rest of the extended break.

While Kim usually keeps the shop open during national holidays, she expects business to slump this time due to an anticipated surge in outbound travel during the unusually long break.

“Business tends to pick up in the Hongdae and Sangsu area on holidays, but when the holidays drag on, the streets get quiet and sales drop,” Kim said.

With the upcoming Chuseok holiday stretching up to 10 days from Oct. 3 to 12, small business owners across the country are facing a dilemma. The long break is expected to prompt a spike in overseas travel, potentially weakening domestic consumption.

Although the government is trying to boost local spending with its second round of consumer coupons and by expanding local currency voucher programs, concerns are rising that more people will spend money abroad than at home.

Long holidays traditionally lead to a jump in outbound travel. Around 1.2 million people departed through the airport during last year’s Chuseok holiday period from Sept. 13 to 18 — the highest Chuseok traffic recorded at the time, according to the Incheon International Airport Corporation. During the Lunar New Year Seollal holiday this year, from Jan. 24 to Feb. 2, 2.18 million people used Incheon’s international flights, accounting for 99.3 percent of total passengers during that period.

Members of multicultural families prepare traditional Korean Chuseok dishes during an event held at the Western Volunteer Center of the Korean Red Cross Seoul Chapter in Yangcheon District, western Seoul, on Sept. 9, 2024. [YONHAP]

A June report by the National Assembly Research Service on designated holidays also downplayed the impact of long holidays on boosting domestic consumption.

Researcher Ahn Joong-ki pointed out in the report that the government’s decision to declare Jan. 27 as a temporary holiday effectively extended the Lunar New Year break from three to six days.

“As a result, the number of outbound travelers hit a record high that month, while domestic tourism which the government hoped to stimulate saw little growth,” Ahn wrote.

Around 2.97 million people traveled overseas in January, a 9.5 percent increase from the previous month and a 7.3 percent increase year-on-year — the highest-ever monthly figure, according to the Korea Tourism Organization.

By contrast, data from BC Card and Shinhan Card show domestic travel spending by Korean nationals in January totaled around 3 trillion won ($2.15 billion), down 7.4 percent from December and 1.8 percent from January 2024.

Because the Chuseok holiday is even longer than this year’s Lunar New Year break, small business owners fear local spending will slump even more.

People returning from the Chuseok holiday arrive at the Seoul Express Bus Terminal in Seocho District, southern Seoul, on Wednesday. [YONHAP]

“In tough economic times, even family diners have been on the decline during the holidays,” said Kim Ji-won, who runs a restaurant in Daejeon’s Daedeok District. “I doubt opening during Chuseok will help business at all.”

Yet closing up shop entirely isn’t easy either, given fixed costs like rent. Jeong, who runs a cafe in Seoul’s Gwangjin District, said he plans to stay open during the holiday but doesn’t expect much.

“Rent and utilities alone come to about 2.5 million won a month,” they said. “We’ll mainly rely on delivery orders, but I’m worried that extra fees for holiday deliveries will add to the burden.”

To support small merchants and SMEs, the government plans to inject 43.2 trillion won in special Chuseok funds. Officials also intend to revitalize domestic spending with various incentives, including consumption coupons and expanded regional gift vouchers.

“We are currently reviewing additional support measures for small businesses,” a government official said.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY NOH YU-RIM [[email protected]]