Economics of hot weather

Moviegoers line up to buy tickets for “Thieves” at a cinema in southern Seoul on Aug. 3. Movie theaters have been benefiting from the extremely hot weather this summer as audiences fill seats to escape the heat. (Photo : Yonhap)

Scorching summer benefits some firms, burns others

Koreans are experiencing one of the hottest summers in history with the mercury rising above 35 degrees Celsius. Workers have suffered through a hot and sticky purgatory in recent weeks, putting their work ethics and social tolerance to the ultimate test.

It hasn’t helped that cooling systems at public facilities and major buildings weren’t running on all cylinders as policymakers couldn’t risk a potential electricity crisis. Organizations were pressed to cut down on power usage. The hours after sunset have provided no relief. Through Thursday last week, Seoul endured 13 straight “tropical nights,’’ where overnight temperatures remained at over 25 degrees Celsius.

Meteorologists say this is the hottest summer since 1994, when schools shut early and a number of deaths and sicknesses were reported due to the soaring termperatures.

But one man’s suffering is another man’s business opportunity. Companies, particularly in the service industry, have been able to capitalize on the abnormally hot weather, not least because people are flocking to shops that double as air conditioning havens.

Consumer electronics makers are also beaming as demand for air conditioners and electric fans has rocketed.
E-mart, the country’s biggest discount retail chain, saw a 25 percent year-on-year jump in sales of air conditioners in July. When measured on a month-to-month basis, the increase was a staggering 240 percent.

Buyers were frustrated though as Samsung Electronics and LG Electronics have been unable to keep up with the steep rise in demand. It has taken an average 10 days to have an air conditioner delivered after purchase this month. It is a public relations black eye for firms that were once proud of their level of customer service.

“I just gave up buying an air conditioner. I mean, after 10 days, won’t it get a little cooler anyway?’’ said Kim Ja-young, a housewife in Goyang, Gyeonggi Province.

“I guess I will be taking my two-year-old to the shopping mall a little more frequently.’’

Movie theaters in past years have struggled to compete with Internet downloads and video-on-demand services but the scorching sun has brought cinemas back in vogue.

According to the Korean Film Council, the number of moviegoers neared 21 million last month to represent a 14 percent annual increase. It was the first time that moviegoers breached the 20 million mark in the month of July, according to the organization. Popular titles like the latest Batman film “The Dark Night Rises” and Korean movie, “Thieves,” helped. So did the air conditioners.

GS25, 7-Eleven and other 24-hour convenience stores have also been having a good summer as insomniacs visited them at night to buy cold drinks, ice cream and snacks. The London Olympics, with major games taking place late at night or even at dawn here due to the time difference, helped fill cash registers.

7-Eleven said the sales of ice cream increased more than 26 percent in June and July from a year ago. GS25 said its main summer items, such as ice cream, juice, sodas and beer, rose 28 percent year-on-year between July 20 and Aug. 2. Sales of beer saw a five-fold increase.

In-house company cafeterias have gained popularity as office workers do not want to leave their buildings at lunchtime. Delivery-food outlets have seen increased business thanks to people eating at their desks to avoid going outside.

Then there are the unhappy stories. For senior citizens and sick people, this summer was a legitimate health threat. Since June, 14 people have died in Korea for heat-related problems including dehydration and heat stroke, according to the Ministry of Health and Welfare. Nine of the victims were over 60. More than a million farm animals, mostly chickens and ducks, perished as well.

Construction companies are suffering because laborers can’t work normal hours under the steaming heat and humidity. They have to start work very early in the morning and take a break at midday.

The traffic in the Seoul metropolitan area has worsened as more and more commuters are driving instead of taking buses and the subway. Usually roads are less congested at this time due to vacationers flocking out of the city but it was not the case this year.

Without any way to escape the heat, traditional markets have lost customers as more people are flocking to air conditioned shopping malls and supermarkets. Government officials in particular have struggled to beat the heat during working hours as they are forced to keep the indoor temperature at their buildings at no less than 26 degrees Celsius.

Employees of the Korea Power Exchange work in even poorer conditions. They have to turn off electric fans and the lights during peak daytime usage hours to set an example of reducing power use.

And it seems that there is no respite on the horizon.
“The heat wave will last until next month and temperatures will be higher than previous years while there will be less rainfall,” said the Korea Meteorological Administration in a statement last week. <The Korea Times/Kim Jae-won>

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