The commercial area near Hongik University in Seoul on the 11th. (Image courtesy of Yonhap)
SEOUL, April 5 (Korea Bizwire) — In the aftermath of the Constitutional Court’s historic ruling to remove President Yoon Suk Yeol from office, small business owners across South Korea expressed cautious optimism that the political turmoil that gripped the country for the past four months might finally ease—though few expect an immediate turnaround in the economy.
Since the declaration of emergency martial law in December 2024, local merchants, real estate agents, and small manufacturers have endured plummeting demand, delayed orders, and widespread consumer hesitancy. The court’s decision brought a measure of relief, if only by ending the prolonged uncertainty.
“It’s been exhausting,” said a florist in central Seoul. “Hopefully now people will stop fighting, and the mood will improve. Flowers sell best when there’s something to celebrate.”
An independent real estate agent in Eunpyeong District noted a sharp drop in home-buying activity. “People were too uncertain about the future to make big decisions,” she said. “Now we need stability, fast.”
The sentiment was echoed in official statements from business associations. The Korea Federation of Micro Enterprises urged the public and political leaders to turn heightened political energy toward economic recovery. “It’s time to come together and remove the cloud of uncertainty, so people can return to their livelihoods with confidence,” the group said in a statement.
Small and medium-sized enterprises (SMEs) also welcomed the ruling, particularly after months of export disruptions and contracting overseas demand. A December 2024 survey by the Korea Federation of SMEs found that nearly 30% of exporting companies had experienced canceled contracts or order delays due to political instability.
“The impeachment ruling should serve as a turning point,” the SME federation said Friday. “Now is the time to move past division and focus on overcoming economic challenges.”
Still, most small business owners say they are bracing for a slow and uncertain recovery. With a presidential election looming, political rallies and demonstrations are expected to persist—further dampening consumer confidence.
A bar owner in Gwanghwamun reported unusually quiet weekday evenings. “This week’s been especially slow,” he said. “The country feels unstable, and that affects everything.”
In Seoul’s Gangnam district, a café owner noted that even in an office-heavy area, the nationwide atmosphere had become a drag. “Our neighborhood isn’t affected by protests directly,” she said, “but ever since the emergency measures, the mood’s been grim. I just hope the election ends quickly.”
A wholesale beverage distributor said, “It’s a relief the verdict finally came, but we don’t expect orders to spike overnight.”
Even if political calm returns, the structural economic challenges facing small businesses remain formidable. Business closures are on the rise. According to government data, over 98,600 businesses filed for closure in 2023—a record high. In the first two months of 2025, over 23,000 payments were made through the “Yellow Umbrella” mutual aid system, a fund designed to support shuttered small businesses.
In some cases, owners are forced to shut down without recovering the “key money” premiums once common in popular commercial spaces. One former restaurateur in western Seoul said she had been offered 100 million won for her lease spot during better times. After closing her doors last month, she left without compensation. The space remains vacant.
“It’s not just the politics,” said Cha Nam-soo, policy director of the Korea Federation of Micro Enterprises. “It’s the economy—weak domestic demand, trade pressures, currency volatility—all of it combines to strain small business owners. A presidential election adds another layer of uncertainty. Real recovery requires improvement across the board.”
While the court’s decision marks the end of one chapter, for South Korea’s entrepreneurs, the path to stability and growth still appears long and uncertain.
M. H. Lee (mhlee@koreabizwire.com)
