Restaurants and shops near the Yeosu industrial complex in South Jeolla Province are facing widespread vacancies and a collapse in sales [1].

This economic downturn highlights the vulnerability of local service economies that depend entirely on the operational stability of nearby heavy industries. When global supply chains fail, the impact extends beyond the factory gates to the small business owners who feed the workforce.

A disruption in oil supply has cut naphtha deliveries, forcing petrochemical plants in Yeosu, Ulsan, Chungnam, and Seosan to lower output or shut down completely [1]. This industrial slowdown has reduced the number of workers visiting the nearby food-service district [1].

Local business owners describe a dire financial situation. One restaurant owner said sales are not just halved but have fallen to about 10% of previous levels [1]. Another restaurant representative said initial sales upon opening were approximately 150 million to 160 million won [1]. Current sales have plummeted to between 20 million and 30 million won, with some periods dropping as low as eight million won [1].

The physical landscape of the district now reflects this decline, with numerous storefronts displaying lease signs. Choi Seon-ju, an employee at a Chinese restaurant, said foot traffic of workers has dropped by roughly half [1].

Small business owners in the area are struggling to maintain operations as the primary customer base—industrial employees—disappears during plant shutdowns. The resulting vacancies have created a cycle of economic instability for the surrounding community [1].

“Sales are not just halved but have fallen to about 10% of previous levels.”

The crisis in Yeosu demonstrates the 'multiplier effect' in reverse, where a disruption in the primary industrial sector triggers a secondary collapse in the local service economy. Because these businesses rely on a captive audience of industrial workers, they lack the diversified customer base needed to survive prolonged plant shutdowns caused by raw material shortages.