On Nov. 26, the Sungnyemun Import Market in Namdaemun, central Seoul, appears unusually quiet. (Yonhap)
SEOUL, Nov. 28 (Korea Bizwire) — Merchants in Seoul’s historic Namdaemun import market say the sharp fall of the Korean won has pushed them to the brink, driving up wholesale prices and dampening consumer demand as the currency sinks to its weakest level since the 2009 global financial crisis.
On Tuesday, the won briefly touched 1,467.7 per dollar before closing at 1,465.6, while the Chinese yuan approached 210 won — a surge that traders say is squeezing their margins and forcing steep price hikes on imported goods.
At the Sungnyemun Import Market, shop owners described a rapid succession of price jumps. One vendor, who sells foreign health supplements, said the wholesale price of a popular multivitamin brand soared from 34,000 won to 37,000 won “in just a few days.”
“We buy small quantities of many different items, so we feel the exchange rate shock more than anyone,” the merchant said. “If I raise the price from 37,000 won to 40,000 won, who will buy it?”
Vendors selling household goods reported similar strains. A retailer who sells slippers said prices that once hovered around 7,000 won per pair have climbed to 8,000 won, adding tens of thousands of won to bulk orders. “These days the thing I hear most from middlemen is, ‘Prices went up again,’” she said.
Sungnyemun Import Market in Namdaemun (Yonhap)
The impact of higher logistics costs and a surging yuan has been especially punishing for clothing sellers who rely on Chinese suppliers. “Something you could buy for 100,000 won in China costs 200,000 won by the time it reaches Korea,” one merchant said.
Even companies that manufacture goods domestically said they were struggling because imported materials have become more expensive.
Shoppers, too, are pulling back. Several visitors who came expecting bargains left empty-handed after learning that imported goods cost more than anticipated. “We thought it would be cheaper because it’s wholesale,” one customer said. “But nothing is cheap anymore.”
Market representatives described conditions as worse than during the Asian financial crisis or the pandemic. “The shops are dying,” said Ahn Kyu-hyun, head of the market’s merchants’ association.
Another official gestured toward the bustling streets outside the building, noting the stark contrast inside: “Out there it’s crowded, but in here it’s quiet. At Namdaemun these days, you’re better off selling hotteok.”
Ashley Song (ashley@koreabizwire.com)
