A shop remains closed in the Myeongdong shopping district in downtown Seoul, Dec. 29. Yonhap

Sales at eateries and entertainment spending dropped 4 percent in the first 20 days of this month, compared to the same period of November, eroded by a short-lived imposition of martial law and subsequent impeachment proceedings, according to market watchers.

Further clouding the outlook for the coming month is the reluctance of many to participate in year-end and New Year gatherings ㅡ a source of short-term profit for small businesses and the self-employed.

A plane crash in Muan, South Jeolla Province, on Sunday further weakens private consumption, already at a two-year low with the month-on-month decline in indicators resembling the early-pandemic months of consumer confidence tightening. Major tragedies of this sort deepen feelings of uncertainty and insecurity among the public, impacting their willingness to spend.

"I don't expect any business from year-end gatherings, or even early next year," said Kim, who owns an eatery in Seoul.

An increasing number of consumers have canceled their reservations. The cost of everything has surged and remains elevated. The prices of ingredients have gone up and there aren't enough customers coming in for lunch or dinner.

"Many seem to believe having festivities is not appropriate given the martial law fiasco. Fewer are willing to spend. Self-employed small businesses are losing hope."

An office worker surnamed Lee said her friends are not as excited about year-end gatherings this year.

"My friends say they would rather stay home than go out for a drink," she said.

"They are not in the mood, understandably because of the ongoing political developments. I feel the same way. What's the point of meeting up when all of us don't feel like it?"

An owner of a pub in central Seoul said he received calls canceling reservations for Monday and Tuesday.

"The martial law fiasco led to a number of cancellations over the past few weeks and the plane crash happened," he said.

"The slew of events unfolding are dampening overall sentiment further. People seem to think seeking joy and happiness can wait and understandably so. Many said they can meet and greet later when things get back to normal. I hope I can hang in there until then – whenever that may be."

This sentiment is spreading, as illustrated by a Bank of Korea survey on the Consumer Sentiment Index (CCSI) for this month.

The index fell to 88.4, down 12.3 points from a month earlier. This was the sharpest decline since the onset of the COVID-19 pandemic in March 2020.

A reading above 100 indicates that optimists outnumber pessimists, while a figure below 100 suggests the opposite.

Many said they plan to cut back on spending for trips, clothing, leisure activities and dining out.

According to data cited by Rep. Kim Hyun-jung of the main opposition Democratic Party of Korea, combined sales at four major credit card firms — Shinhan, KB Kookmin, Samsung, and Hyundai — totaled 28.2 trillion won ($19.1 billion) in the first 20 days of this month, a 2 percent decrease from the same period of November.

KB Kookmin data showed food sellers and eateries registered a sale of 711 billion won, down 4 percent from a month earlier.

Samsung's data showed that sales at eateries declined to 576.3 billion won, a 4.1 percent drop from the previous month.

The most pronounced declines were seen in the entertainment industries, including singing rooms, nightclubs, and pubs. Their combined sales totaled 20 billion won, marking a 13.8 percent drop from a year earlier.