Confessions of Stars Closing Businesses: A Bitter Reality
Many celebrities who bravely ventured into entrepreneurship are now tearfully announcing their decision to shut down their businesses. The range of industries spans from cafes to burger joints and even talent agencies.
On the 29th, KBS2's entertainment show 'Boss's Ears are Donkey Ears' revealed through a press release that former baseball star Kim Byung-hyun will be closing his hamburger restaurant after three years in operation. Although the episode detailing the closure was set to air that day, it has been postponed to January 5th due to a tragic accident involving a Jeju Air passenger flight.
According to the materials, Kim Byung-hyun confessed, “I have lost 200 million won over the past three years,” adding, “It’s harder than during COVID. Prices have risen too much, and I can hardly manage the rent. Particularly, delivery fees are so high that sales have dropped to 70% compared to what they were during the pandemic.” Additionally, he shared the shocking news that the used equipment for dining and cooking, purchased for 30 million won, was now valued at just 1.1 million won.
The crisis of Kim Byung-hyun's burger joint had been a consistent topic of discussion. Last year, while visiting the restaurant, 'Business God' Eun Hyun-jung remarked on Kim's monthly rent of 12 million won, stating, “You must earn at least 40 million won a month. If you think you can't sell, it's better to close quickly. You risk creating debt while trying to break even.” In March, it was reported that he lost the lease on his university district burger shop.
Kim Byung-hyun is not the only celebrity facing closure. Singer Ko Yoo-jin announced on Christmas Eve, just a day before the 25th-anniversary concert of 'Flower,' that she had closed her café, which she had operated for ten years. She expressed her understanding of the difficulties of running a café and encouraged other small business owners.
Lee Sang-soon, husband of famed singer Lee Hyori, closed his music café in Jeju after two years in June due to the owner’s plans to repurpose the building. The café attracted a lot of attention at its opening, with Lee Sang-soon and Lee Hyori personally serving coffee and operating on reservations.
Jung Joon-ha, who has engaged in several food businesses, has also been unable to escape the economic downturn following COVID-19. Recently, it was reported that his luxury apartment worth 3.6 billion won is being auctioned due to unpaid debts related to beverages and merchandise. The Seoul Central District Court had previously issued an order for a forced auction in July but halted the execution on the 3rd of this month. Jung Joon-ha announced he would take legal action, expressing his grievances.
Earlier, he appeared on 'Genius Face Cha Eun-soo,' sharing his struggles in managing his fish restaurant while revealing that he had five eateries, one of which would close after eight years. Despite surviving the past three years during the pandemic, he had no choice but to shut down.
Famous chefs have also faced the harsh reality of business closures. Chef Jeong Ho-young announced the closure of his Yeonhee-dong restaurant last September, sharing that on days with no customers, they recorded zero revenue, resulting in a monthly loss of 10 million won due to rent and labor costs. Chef Song Hoon also exclaimed that he lost 700 million won and closed his hot dog shop just a year after its opening.
Kang Daniel, a victim of a 10 billion won fraud, had to shut down his established agency. In May, he filed criminal charges against A, the major shareholder of his agency Connect Entertainment, for forgery of private documents, embezzlement, breach of trust, and fraud related to communication and computer use. The fraud involved identity theft worth about 10 billion won, with minimal withdrawals of 2 billion won from his agency's account and 1.7 billion won from his personal account.
Later, Kang Daniel signed an exclusive contract with a new agency, Aira, and made a comeback after a 1 year and 3 month hiatus. He reflected, “I felt lost. It seemed like everything I had built over five years had crumbled into nothing, and I experienced a feeling of emptiness that was hard to express in words. I felt as if all the things and time I had accumulated vanished in an instant,” revealing that he lost 14 kg in just 5-6 months.
According to a report released by the Korea Employers Federation, nearly 1 million businesses closed last year, reaching an all-time high. This year, the monthly closure rate has approached 10,000 businesses, and the total amount of yellow umbrella business closure compensation provided by November has neared 1.3 trillion won. This reality reflects a concerning economic downturn, where even stars are struggling to keep their businesses afloat.