South Korea cancels festivals, concerts, gatherings, sales in wake of deadly Halloween crush
- Asia’s fourth-largest economy has entered a week-long period of national mourning following the deadly crowd crush in Seoul on Saturday night
- But analysts fear the slump in sentiment caused by the outpouring of grief may bring a lasting impact at a time when growth was already slowing
A major K-pop concert called Busan One Asia Festival, set for Sunday and expected to attract around 40,000 people, was cancelled, while dozens of regional councils across the country have called off local festivals planned alongside the autumn foliage season and Halloween.
Universities have cancelled weekend retreats known as MTs, and the opening event of the two-week Korea Sale Festa, the Korean version of Black Friday, was called off.
“This has come when the consumer sentiment was just turning for the worse, just as when everyone was expecting the rising interest rates will hit consumption further,” said Park Sang-hyun, an economist at HI Investment & Securities. “The impact on sentiment depends on how long the process of the recovery and fix-up of the situation takes.”
In South Korea’s second-largest city, Busan, a major fireworks display planned for November 5 was postponed indefinitely, while the three major retailers Shinsegae, Lotte Shopping and Hyundai Department Store cancelled Halloween promotion events. South Korea’s southern resort island of Jeju called off the Jeju Olle Walking Festival, scheduled from November 3 to 5.
The Korea Baseball Organisation and Korea Volleyball Federation both said there won’t be cheerleaders during its championship series.
Ministries have called off media lunch briefings, corporate events are scrapped, and day trips at schools have been put off. The finance ministry on Monday advised officials to cancel “unnecessary private gatherings” in a written notice.
South Korea’s economic growth already decelerated last quarter in response to slowing exports and a weakening currency.
Even as higher rates have strained the country’s short-term money markets, the Bank of Korea signalled it remains committed to boosting borrowing costs, putting consumers in a challenging environment.
Statistics Korea data released on Monday showed the economy was heading into a deepening slump, with the cyclically adjusted leading indicator falling for a third consecutive month in September to 99.2, the lowest since August 2020.
Back in 2014, consumer sentiment declined sharply in May following the sinking of the Sewol ferry, while sales at department stores, the number of cinema-goers, and theme park attendance all dropped.
“I was going to take parents and kids to Naejangsan National Park for the fall foliage few days but not any more. It doesn’t feel right to have fun when so many kids have died and that’s all we see on TV,” said Kim Sun-young, 37, a housewife in Seoul.