Third Virus Wave Puts Damper on Consumption

As of December 6, consumer spending in South Korea was depressed due to the third wave of coronavirus which is currently causing restrictions to public life in the country.

According to card payment data from small businesses published in Pulse by Maeil Business Newspaper, dining and travel were most affected this time around with payments down 37 percent each. Different to a short second wave of infections which occurred in August and September, sports and leisure businesses weren’t disproportionally affected by the current restrictions.

Due to the severity of the third wave – daily new infection numbers have surpassed those of the initial wave in March – transport is also more affected.

Yet, losses to businesses could become even more severe as many believe the country will have to implement the highest tier of its lockdown system soon.