Editor’s Note
This report highlights the tangible economic impact of global market fluctuations on local businesses, as Daegu’s historic jewelry district grapples with soaring gold prices. The direct testimony from a shop owner underscores how international trade policies can resonate deeply within community storefronts.
The jewelry district in Gyodong, Jung-gu, Daegu, is suffering a blow due to rising gold prices. The photo shows jewelry stores with closed doors or rental signs posted. Reporter Kwon Young-jin
Kwon Bong-jae (52), who has been running a gold and silver shop in the Gyodong jewelry district of Jung-gu, Daegu for 18 years, lamented in this way.
On the afternoon of the 16th, one out of three gold and silver shops along a 200-meter section of the jewelry district was closed, with signs announcing a temporary shutdown or rental notices posted, creating a desolate atmosphere. Moreover, even inside the open gold and silver shops, it was hard to find any customers.
Recently, due to economic uncertainty stemming from US tariff policies, gold prices have surged sharply, compounded by the trend of simplified wedding culture. This has led to a severe blow to the jewelry district, to the extent that the flow of general consumers has been abruptly cut off. This contrasts with the increasing proportion of gold investment among the wealthy, who classify it as a stable asset.
According to the ‘2025 Korea Wealth Report’ published by Hana Bank’s Hana Financial Research Institute on the 16th, the wealthy cited deposits (40.4%) most as the asset they intend to invest in this year, while gold (32.2%), a representative safe asset, ranked second. This is a phenomenon where stability is weighted more than profitability.
Because of this, despite soaring gold prices, gold consumption among the economically affluent wealthy is increasing. The reason the wealthy prefer gold as an investment target is that gold prices, classified as a safe asset, are fluctuating due to the recent impact of US tariff policies.
On the other hand, due to the effects of simplified wedding gifts and first birthday celebrations, the number of customers coming to the jewelry district to buy gold has sharply decreased. Consequently, the burden on merchants in the jewelry district, who must bear monthly rents of 3 to 5 million won, is growing.
The number of closed gold and silver shops is also increasing. According to the Daegu Fashion Jewelry Cooperative, after the jewelry district was designated as a Fashion Jewelry Special Zone in 2005, gold and silver shops and wedding gift specialty stores steadily flocked here. However, the number of gold and silver shops, which was about 350 during the COVID-19 outbreak in 2020, has now decreased to about 300.
Meanwhile, as economic uncertainty grows due to the economic downturn caused by US tariff policies, gold prices are soaring day by day. The dollar index was at 99.617 as of 2:49 PM on the 16th, down 0.598 points from the previous close, falling below 100. The dollar index has fallen more than 4% this month.
Due to the weak dollar, the spot gold price hit a new all-time high of $3,291.81 per ounce at one point during the day and was trading at $3,289.65 as of around 2:59 PM, up 1.82% from the previous close.
He further argued,