Karaoke is crying… The highest level in 13 years since 2137 businesses closed last year

Last year, the number of closing of the singing practice center (karaoke room) hit by a group ban order exceeded 2,000, reaching the highest level in 13 years. While half of the business closures were concentrated in the metropolitan area, the opening of business fell to the lowest level since statistics related to karaoke were compiled.

As a result of an analysis of statistics from the Ministry of Public Administration and Security by the Commercial Information Research Institute, a profitable real estate research and development company, on the 19th, there were only 389 singing practice fields that opened last year across the country. Since statistics began in 1987, the record was the lowest. Since 1424 in 2016, the number of opening of singing practice centers has declined for 4 consecutive years, from △1295 in 2017 △774 in 2018 to 755 in 2019.

Business closures increased, reaching the level of the financial crisis. Last year, the number of singing practice centers closed was 2137. It was the highest in 13 years after 2,460 businesses closed in 2007.

Gyeonggi-do was the region with the most business closures last year, with 524 closed. Next, △ 369 in Seoul △ 163 in Busan △ 141 in Daegu △ 113 in Incheon △ 81 in Gwangju △ 54 in Ulsan △ 46 in Daejeon. If all the metropolitan areas such as Seoul, Gyeonggi, and Incheon are combined, it is 1006, accounting for about half of the total closure, 47%.

Hyun-taek Cho, a researcher at the Commercial Information Research Institute, said, “Although the ban on grouping has been eased since the 18th, business sectors such as karaoke, gym, and café suffered a serious blow to sales.” It was great, and due to this effect, the opening of the singing practice center decreased and the closing of business increased.”

Researcher Cho continued, “The situation in which you can do business is better than before, but it is unlikely that sales will increase noticeably due to the nature of a singing practice that many people visit together.”

The government reported that the momentum of the’third pandemic’ of the coronavirus infection (Corona 19) had been weakened, and it released the quarantine measures for multi-use facilities and allowed the operation of the singing practice range as well. Karaoke rooms can be operated, but rooms used by guests can be reused 30 minutes after disinfection. Coin karaoke rooms, etc., where it is difficult to meet the number of people per area due to the narrow space should be used by only one person per room.

Earlier, on the 11th, the third subsidy was paid to small business owners and vulnerable employment groups who were affected by the spread of Corona 19. In the case of karaoke, up to 3 million won was applied.

However, as the number of business days decreased last year, the backlash is intensifying in the industry where the business was closed one after another. The Korea Coin Singing Training Center Association decided to file a lawsuit against the Seoul city for damages from the corona 19 collective ban. The association announced that 47 stores of coin-singing practice centers in Seoul filed a civil suit requesting compensation for losses of about 2.5 billion won against the city, and that they would then recruit lawsuits from across the country.

The association held a press conference in front of the Seoul Central District Court the day before and said, “The owners of coin singing practice centers have been victimized under the name of quarantine for the past year. In the 100 days of operation since June of last year, it recorded 0 confirmed cases, but it was designated as a high-risk facility and was banned unfairly for a total of 146 days in Seoul.”

Hankyung.com reporter Kim Hana [email protected]