Torrential rain raising food prices, hurting construction work

The powerful three-day heavy rainfall in the Seoul metropolitan area, the economic center of Korea, has dealt a blow to the national economy covering manufacturing, logistics, finance, construction and retail.

Fears are growing that the disruption in industrial production and economic activities could adversely affect economic indicators. The price of vegetables and fruit soared 90 percent in one day, leading to a red alert on inflationary pressure.

Builders are growing anxious over delays in construction periods as work cannot be resumed at building sites due to the rain. Certain sites have stopped construction for almost a month.

The housing market, which has been in a prolonged slump, was dampened further. “People keep postponing looking at homes because of the rain,” said Hwang Eun-jeong, a real estate agent in Seoul`s Seocho district. “It’s a recession and also a vacation period so there are few transactions. Now even our phones have stopped ringing due to the rain.”

Delivery services were hurt in the most affected areas because they use the road network. Korea Express and CJ GLS said deliveries were delayed in the Gangnam and Sadang areas of Seoul.

Korean Air canceled five domestic flights including the routes of Wonju-Jeju and Gimpo-Ulsan Wednesday, with 10 domestic flights being canceled overall.

Food prices were hit hardest by the heavy rain. The Food, Agriculture, and Fisheries Ministry said Thursday that the price of major produce such as radish, spinach and pears significantly rose in one day at the agricultural product auction in Garak Wholesale Market.

Retailers in the Gangnam area, the most affected region, saw a substantial drop in revenue. The Korea World Trade Center branch of Hyundai Department Store recorded its first negative growth this year on Wednesday with a 9-percent decline in sales from Wednesday in the fourth week of July.

Revenue at branches of Shinsegae Department Store fell 7.8 percent across the country but that of the Gangnam branch plummeted 12.5 percent.