Small-business closures in South Korea have surged to historic levels, driving construction-related waste to an all-time high. The downturn, fueled by prolonged economic stagnation, is emptying restaurant alleys and leaving “For Lease” signs in once-busy commercial districts.

On Friday afternoon, the restaurant alley near the Yeongdeungpo District Office in Seoul was eerily quiet, even during the lunch hour. Only a few famous eateries drew crowds; many storefronts stood vacant with leasing notices in the windows.

Yoon, 55, who has run a snack shop for a decade, said he had expected business to improve after the pandemic.

“Even after COVID-19, however, high prices, political turmoil, and the impeachment crisis kept customers away,” he said. “Labor costs are so high, I am not sure how much longer I can hold on.”

Another restaurateur nearby noted that business had been better during the COVID-19 social distancing period.

According to data from the Korea Environment Corporation analyzed by Maeil Business Newspaper, construction-related household waste—debris from small-scale renovations or demolitions—reached 350,000 metric tons in 2023, nearly double the 180,000 tons recorded in 2020.

Industry officials believe last year’s total likely surpassed that figure, setting a new record.

The waste spike aligns with closure trends reported by the National Tax Service: after hovering in the 800,000 range from 2020 to 2022, small-business shutdowns jumped to 986,000 in 2023 and topped 1,008,000 last year.

While such closures have increased construction waste, they have sharply reduced the amount of food waste from commercial sites, down 15.9 percent in 2023 from the previous year.

Hong Soo-yeol, head of the Resource Recycling Society, said the drop in business food waste reflects the severe impact on the restaurant sector, which had the highest closure rate among all industries at 15.8 percent, roughly one in every six or seven restaurants shutting down.

Meanwhile, per-capita daily household waste fell to 1.17 kilograms in 2023 from 1.20 kilograms the year before, marking the first decline in a decade.

Hong said that household waste from homes remained steady, with the decrease driven largely by reduced output from business sites.

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