베이징, 상하이, 광동성, 계림, 고성 산업 등등…
Everyone, welcome. Everyone, these days, if you look at the news , there are a lot of articles about how China’s real estate, economy, and consumption are really bad. Right? But it’s hard for you to access specifics about how things are bad, how people are actually living, and other examples . I’ve brought up some detailed examples. First, the Chinese coronavirus pandemic was severely restricted from 2020 to 2022. As those of you who watched my videos at the time know, the lockdown wasn’t so much a lockdown as it was a confinement. People weren’t allowed on the roads, and they weren’t allowed to leave their apartment complexes. They were n’t even allowed to leave their homes. In China, there were people wearing red armbands and cheerleading uniforms who would deliver food to every door , right? And that lockdown lasted for three years, but then, around the end of 2022, restrictions began to lift, and by 2023, they were completely lifted. What happened in China back then? It’s not easy for an overseas rush to occur in China. There are certain requirements you need to meet to get a visa. But those requirements are extremely strict. You need to prove things like a job or assets to go abroad. Those with less than a certain level of assets can’t go abroad. And overseas. Oh, right. Revenge spending happened. Do you remember? Back then, there was a huge shopping spree on Alibaba, Temura, and other Chinese platforms. People were shopping not only online but also offline. There was a lot of domestic travel. It was a huge frenzy. Revenge spending. People would say, “Hey, I’ve been patient for three years,” and then come out and indulge themselves, spend money, have company dinners, and it wasn’t a total mess. But people were spending, and their spending power was good, and the economy was booming, and now it’s in decline. Why did it decline so much? There are many reasons, but Odd will focus on the real estate situation in China. I’ll share with you the actual situation, the actual cases, and how people are living . First, compared to the COVID-19 pandemic, real estate development has fallen by less than 60%. So, compared to the past, real estate development and housing construction have fallen by more than 60%. When people hear this, they might think, ” Wow, they’re really stopping development. It must have dropped significantly, ” but they’re wrong. Everyone, there are hundreds of millions of vacant homes in China right now, and they haven’t filled them all, yet 30-40% of them are still under development. This is astonishing. I don’t understand why they’re doing this. Of course, prime land, prime real estate, is still being developed. Compared to Seoul, you can see that apartments are constantly being built in Gamnam, Gangnam, and Seoul. There’s also a one-floor apartment complex in Gangnam, and they’re going to sell those soon, but they’re still building apartments . But in Korea, housing prices are holding up, especially in Seoul, but they’ve fallen a lot in the provinces. Compared to the current situation, Korea’s prices have plummeted like crazy. It’s like, “Oh my goodness,” and it’s still that low. Just how much has China fallen? I was surprised while researching this, but it’s so low that people are saying, ” Wow, it’s fallen this much.” At some point, China had a real estate rush from the 2000s until 2020. Do you know how much real estate prices have risen in places where they’ve risen a lot? Places where real estate prices have risen 40-50 times are truly incredible. Think about it, people. Real estate prices have risen 40-50 times. Apartments bought for 100 million won are now worth 40-50 billion won. But that’s a huge deal. On average, they’ve risen 20-30 times, and even if they don’t rise much, they’re still worth 10 times. Beijing has seen a lot of that. And not just Beijing, but other cities, even second-tier cities, have areas where real estate is really expensive. For example, let’s take Daegu. Right now, real estate prices aren’t that inflated. There are even areas where prices are negative. But even in Daegu, in the heart of the city, in Beomeo-dong, for example, housing prices are almost on par with Seoul’s. One apartment costs 1 billion won, 2 billion won, and even in Daegu, they’re there. China is the same. Even in small cities or provincial cities, there are some really expensive areas in the city center . So, with the real estate rush in China, people who live in China have probably seen it all. “Oh, someone bought a house and it went up by a lot.” They kept hearing about it for years, thinking, “Should I buy now?” and kept buying, buying, buying, buying, and that continued until 2020. And after 2020 ended, the coronavirus broke out in 2020. Right? And then, Chinese people also had a high percentage of their assets in real estate. Korea is also a country with a fairly high percentage of its assets. Looking at the world, China is the same. In China, real estate accounts for about 70% of their assets. Let me give you an example. Today, I’ll explain it using a map. There’s a house like this. You all know Beijing, China, right? Do you know Beijing and TNG? Some of you may know, some don’t, but think of it this way. Beijing is like Incheon, Seoul, in Korean terms. And Beijing and TNG are about two hours apart. The distance between them is less than 200km. But what’s in between is Hebei Province. Hebei Province is similar to Gyeonggi Province in Korean terms. Hebei Province surrounds Seoul, which surrounds Beijing . Let me give you an example. If you look at the map, this is a real case. Okay, since we’re talking about Chinese real estate today, let’s talk about Baidu Map. Everyone, this is Beijing. Oh, this is Beijing, and this is Tianjin . Beijing to Tianjin. Can you see Tianjin? So, in Korean terms, this would be Seoul, and this would be a bit like Incheon. In Korea, those who say Seoul’s housing prices are high have bought a lot of houses in Gyeonggi Province. So, Hubei, which surrounds Beijing, has bought a lot of houses here. China is the same. Beijing has bought a lot of houses in Hebei, and this person is a real-life example. It’s about 80km from Beijing and 70km from Tianjin, so in a way, this place could be considered the middle ground . Langfang is a city that is now somewhat organized, and you can see that the roads are well-paved, and there are many hospitals in the city, and it seems like a pretty decent city with a lot of people living there. I bought a house here. It’s close by, and it’s about halfway between Beijing and Tienjin. It’s about 80km to Beijing, so if you drive, it’s a little over an hour, and if there’s no traffic, it’s less than an hour. It’s not that far. It’s not bad. The location seems good. So, in 2020, when everyone else was buying houses, this couple also bought a house here. They bought it for 23,000 won per pyeong (approximately $23 USD) in 2020. But “pyeong” in China is different from “pyeong” in Korea. “pyeong” in Korea is 3.3 square meters (M). That’s one pyeong. Well, in Korean terms, there’s no such thing as “pyeong” in China. In China, “bingfangmi” is simply one pyeong. How much is one pyeong? So, you divide by 3.3. It’s one square meter. One pyeong in Korea is 3.3 square meters. So, when you say “pyeong” in China, they’re just talking about one square meter. They gave 23,000 won per square meter and bought it. So, if you buy about 30 pyeong (approximately $30 USD) in Korean terms, it should be about 100 pyeong (approximately $30 USD). It’s a little over 100 pyeong. So, how much would it cost to buy 23, one square meter of UN, or 100 square meters? They spent 2.3 million UN. 2.3 million UN. In Korean terms, that would be about 450 million won. They bought a house worth 450 million won, and the current actual transaction price is 8,000 won per 1M. Now, going back to this example, when this person buys this house, to you Chinese people, hundreds of millions of won isn’t a small amount. It’s the same for Koreans, but these days, Koreans often offer 100 million won mortgages. If you look online, they start with 100 million won as seed money. There’s a lot of talk about how to save 100 million won in a few years. But for Chinese people, saving 100 million won isn’t easy. Well, for example, if a couple’s combined salary is less than 1 million won, in a typical household, the husband earns about 700,000 to 800,000 won, and the wife earns about 700,000 to 800,000 won, their monthly salary isn’t even 2 million won. Two people combined, but their combined monthly salary isn’t even 2 million won, so how can they save 100 million won? It’s not easy. So, this house was built by three generations. They pooled all their savings, including their parents’, and invested all of it to buy a 130-pyeong house . A 130-pyeong house costs about 2.99 million won, which these people paid for it. So, how much is 3 million won in Korean currency? It’s about 600 million won. They took out a 90% loan to buy a 600 million won house. Since they don’t have the money. Why take out a 90% loan? 10% is a down payment. Ah, a deposit. A contract deposit. Right, right. Uh. Uh. A deposit. In China, they call it “showhu.” The first payment. You can move in as soon as you pay this showhu. So, since these people took out a 90% loan, how much did they save? They probably saved around 300,000 won. That’s about 60 million won in Korean currency. 60 million won, oh, it’s not easy to save 60 million won. With two salaries combined, it’s less than 2 million won, so how hard can you possibly save? And now, I’ve borrowed money from my parents, and my children, who are working, have also borrowed their own money, and I’ve barely managed to buy a house worth 600 million won. How much has it dropped now? I bought a house worth 600 million won, and now it’s down to 80,000 won . That’s a huge drop. What I bought for 600 million won has become 200 million won . Does that mean that their loans will decrease just because their house prices have fallen ? No. These people still have loans worth over 500 million won. The house is worth 200 million won now, but the loan is over 500 million won. That down payment is gone. What can I do? I’ll just be a slave to my house for the rest of my life. Even if I sell my house now, oh, it ‘s already being talked about. The actual transaction price is 800 million won per pyeong, but there are a lot of properties for sale there right now because no one is buying. So, someone is currently offering 6,000,000 won per square foot. 6, 6, is a quarter. They say a house worth 600 million won is listed for 150 million won, but no one is buying it right now. If it were to sell, it would be 1/3rd of the price. Even though the property is listed at 1/3rd, no one is buying it. This is the reality of Chinese provincial cities right now. If house prices in South Korea fell 20% right now, wouldn’t it be a mess? But think about it. House prices fell 70%. Langfang is in an awkward position. Okay, let’s look at the city again. If you look at the map again, when house prices were skyrocketing in the 2020s, rising like crazy, look. Beijing. Beijing is so expensive that people from the provinces can’t even think about it. They can’t go there. Beijing is at the top of the sky. House prices. Even a 600 million won house here is a teacher, but in Beijing, it’s 23 billion won. It’s just not worth it. In a way, it was a good choice. They really gave in and gave out, pushed outward, pushed, pushed, and pushed . It’s 70km to Tianjin, 80km to Beijing. It was a good choice. But people didn’t know it would fall this far. Why? The economic outlook China is currently projecting is consistently good. The economic outlook for 2023 and 2024 is good. So, everyone thought, ” Okay, COVID is over, right? Okay, shall we see the relay again?” The Chinese people remember the speed at which housing prices rose before COVID. So, now that COVID is over, they’re finally over. Hey, let’s see our housing prices again. They’ll just double. Hey, but this has been falling steadily. This is the current situation in China’s provinces. All provinces are like this. Even this one, you guys, is between Beijing and the T-Engine, but the location is still good. But, for example, what do you think will happen in places like this, which are all the way down? Oh, what’s this place like? There aren’t any major cities nearby. What do you think it’s like? So, I brought an example there. Where is this place? Let’s go to Jajo. Where is Houzhou? Oh, Houzhou is here. Another example came up here. There are a ton of examples, but I just brought a few. Houzhou is here. Taiwan is here. Right above it, it ‘s kind of like a Han-gu city, right? Shanghai is here, and it’s quite far from Shanghai. Houzhou. Houzhou isn’t exactly a first-tier city. It could even be second or third-tier . So, it’s more like a Bujo city. What’s the situation here now? It ‘s not Busan. It’s not Busan. It’s a bit more than Busan. Oh, this is not meant to be derogatory, but if I had to compare it, it’s a bit like Yeosu, or Tongyeong. Structure-wise, if I had to compare it to Korea, it’s a bit like Yeosu Tongyong. But here’s an example of the situation. Even the location is called Baolong Jeongshil Guangchang. Okay, let’s search. Okay, if you search right here, it’s right here. This is the center of Houzhou, the Gangnam of this city. Here, you can see everything from large shopping malls to luxury apartments. Uh, even if you look at the map, this is right here. Uh, Baolong Guangchang. This area also seems to be a mixed-use residential area . The shopping mall is right here, and even at a glance, there are a lot of restaurants behind and next to it . It’s a really busy area. This was the most expensive area in Houzhou. The price here was 40,000 won per pyeong, you guys. 40,000 won per square meter. If you multiply that by 3.3, it’s about 130,000 won in Korea. 130,000 won is about 25 million won in Korean currency. 25 million won per pyeong in Korean currency. It was more expensive than that. It was even more expensive than Langfang just now. Right? But how much has the price dropped here? 7, UN. 8, UN. 80% down. It’s been torn apart in a minute. Okay, if you look right here, here, here, when we looked at the satellite photos, anyone can see, oh, this place is enormous. They’ve built this building. Oh, do you have a street view? Oh, there’s a photo. Oh, there’s a street photo. Okay. Oh, yeah. Oh, yeah, the Baiji is nice. Oh. Okay, yeah. Yeah, anyone can see it’s a downtown area. You’re talking about the apartments in front of the most expensive place in Houzhou , right? Right? Anyone can see the most expensive place here is this apartment, right? Apartments like this. This is the most expensive and most visible part of Houzhou. Oh, anyone can see this place, oh, these things are all going up. Anyone can see the downtown area right now. In this city, in these second- and third-tier cities, this is the best place, and they’re telling us to go and look the best. But this is where everyone is torn apart in a minute. And if, for example, someone bought it for 500 million won, If you bought it for 500 million won, it’s now worth 100 million won. You haven’t heard of that, have you? It’s just plummeting right now. Chinese housing prices are falling so much right now. It’s serious. It’s serious, you know. If housing prices in Seoul fell 10% in Korea, imagine that. That’s seriously serious. Do you agree? If housing prices in Seoul fell 10%, 20%, that’s seriously serious. People would be going crazy right now. But here, they’re down 80%. Can you imagine? It’s really, really falling to the prices before COVID-19, even before the surge, back in the 2010s . The situation here is the same. When you buy a house, you borrow money, and here, you borrow 80% of the loan. You borrowed 80% of the loan, and your parents’ money too. Now, with housing prices plummeting like this, if you had borrowed money, you would have invested almost all of it in the house . An 80% drop means your assets have been wiped out. You can imagine. There’s a saying in China: “Xiong Zhan’s heart breaks.” Then this would have fallen by about 20-30%. Xiong Zhan. Then there’s Yao Zhan. It’s broken at the waist. Yao Zhan, this is half. But do you know what we’re talking about now? Chi Zhan is broken at the knees. This is a 70-80% fall. When Chi hits the knees, Chi Ja Ye. Chi Zhan. The Zhan is cut off. You guys, this real estate thing is serious. Earlier this year, around the end of last year, early this year, Seoul housing prices fell slightly, right? Back then, a lot of people were saying, “Seoul land prices are falling, falling, falling.” It wasn’t even a drop. What was the drop? Oh, how much was it before? Seoul real estate prices rose a lot before, but they tripled, didn’t they? They tripled, and now they’re saying, ” It’s falling, falling,” and what? It’s falling by 10%, and now it’s falling by 5%, 10%, what do you do? It has to fall by about 80%. So, that’s what we call a drop. Why are Chinese housing prices falling? There’s an oversupply, and there are so many factors. On top of oversupply , the consumer market is now stagnant. That’s because before, when people were buying a lot of houses, prices would skyrocket. But with the lockdown in China, all the foreigners living there at the time have left. There were a ton of Chinese people back then . There were a ton of foreigners living in China. A lot of foreign companies were moving in, so how many foreign workers would be working there? Those foreigners are scared after the lockdown, so they’re leaving now. Foreign companies are all leaving. Why? How can you do business in China again after a lockdown? It makes no sense. What happens when everyone leaves? Consumers are shrinking. Those people who spend a lot of money, those who spend a lot of money, are gone . When those companies leave, the local business community dies. When everyone dies, those Chinese people can’t make money. Businesses, restaurant owners , retailers, clothing stores—they have no money to spend. That stops domestic demand. No one used to eat out, buy things, or buy necessities. Now, people don’t have money. Why did those people buy houses? They bought everything. But house prices are falling. And the loan keeps coming out of my paycheck. There’s no hope for house prices to rise. Hey, you guys, if this thing drops 80%, when do you think it’ll recover to its original value? I think it can, guys. Even with stocks, if they drop more than 20%, you should cut your losses then. Then it drops 30%, 40%, 50%, and so on. But do you think house prices will rise faster than stocks? Hey, a house worth 500 million won lost 100 million won and became 100 million won . For this 100 million won to return to 500 million won, the house price has to rise fivefold . How much of a positive factor is this fivefold increase in house prices? Will house prices rise again? You guys, do you think people will be able to sell their houses? They can’t. If I sell, I’ll have nowhere to live. Now look. A house worth 500 million won has become 100 million won. Hey, let’s say that 500 million won house lost 60% earlier. A house worth 600 million won is now worth about 200 million won. Sell it for 200 million won. What are you going to do if you sell it for 200 million won? You have 400 million won in debt now, so sell it for 200 million won, secure 200 million won in cash, and pay off the debt with that 200 million won. Then, you’ll only have 200 million won in debt. But where are these people who bought the house going to live? The whole family has saved up all their money and is living here, a family of five, mother and father. A couple, father, mother, and children all live here. Where are these families going to live? They have nowhere to live, right? If they can’t pay back the loan, it’ll go to auction again. They ‘ll get kicked out too. So these families have to work incredibly hard and keep paying off this loan. Until they die. Do you think those people will spend money? Or not? The domestic market will die. This is the tail end of it all. It’s falling together. Housing prices are falling. Everything is falling. If I talk about it up to this point, hey, seriously, do you want to see Beijing? Beijing is definitely, oh, where is Beijing? It’s Seoul. No matter how much housing prices fall, Seoul hasn’t . Have housing prices in Seoul fallen? Housing prices haven’t fallen anywhere inside Seoul Subway Line 2. There’s no drop anywhere. You can think of it as barely falling. But Beijing, oh, guys, I’m really going to explain it to you all today so you all understand. Okay, let’s take a look at Beijing. Let’s go back to Beijing. Okay, Beijing and Seoul both have Gangnam, the Gangnam 3-3-gu, then Mayongseong, and then , uh, Gangseo, Gangdong, it’s all divided like this. Housing prices are the most expensive, and it’s divided up to Ssangguo. And then it goes down to Gyeonggi- do, that kind of feeling. Beijing. I’ll explain it to you guys. Okay, this is Beijing, right? This is all Beijing. You see it marked on the map right here? This is all Beijing. But Beijing, where are the Gangnam 3-gu in Beijing? Beijing is so big, but the three Gangnam districts of Beijing are square, right? The three Gangnam districts. Okay, I’ll explain these two, three, and four in the middle for you. The three Gangnam districts of Beijing are 2, 3, and this is the three Gangnam districts. I used to include the four-ring, but now it’s not included. When the economy was good, even the five-ring was like, “Oh, this is all Beijing.” The price went up like crazy, but now that the price is falling, Beijing defended and defended, but it collapsed here. The largest circle on the outside, the five-ring, collapsed, and now the inside of the three-ring is centered around the three-ring. Gangnam District 3. Only here, housing prices are holding steady. The decline is about 4%, 4, 5%, or even 10%. I’ll tell you exactly where I lived . When I lived in Beijing, I moved to Beijing in 2000. Oh, I moved to Beijing in 2000. 2000, no, no. I went to Beijing in 1997 or 1998. I went to China in 1993. At the time, I was in Shenyang or something, and I was in Leoning at the time, and I moved to Beijing in 1998. Back then, you see the Shanhuan here? Shanhuan. This is Shanhuan. I lived here, near Shanhuan. And Jehak, do you know where I lived when I was in college? Do you see this ring here? Where did Mr. Yi Yeok go? Hey, everyone, this is Beijing Normal University. Can you tell where Beijing Normal University is located? The school I went to, Beijing Normal University, is located within the Third Ring Road and right next to the Second Ring Road. In Korean terms, it’s like a university in Gangnam, near Gangnam Station. It’s Nonhyeon- dong, right here. The university district in Nonhyeon-dong is huge. It could fit three or four apartment complexes. And my house was even more centrally located here. I still remember this place . This is my house. It’s in Sinji-dong, Dajisan-siha, right here. I still remember how much I paid rent here. If Nonhyeon-dong is over there, doesn’t this place feel like Akbujeong? That’s right. It’s right next to Ihwan. It’s Akgujeong. Cheongdam is here. Then how similar would the housing prices be? Wow, did Mr. Continental Man have that much money? Wow, how did you live there? Everyone, the monthly rent here was 300,000 to 400,000 won. Hey, I lived there, and the monthly rent was 300,000 won. 300,000 won in Korean currency. Hey, it was a 66-pyeong apartment. The monthly rent was 300,000 won. The selling price of that house was 5,000 Korean Won. Ah, so, ah, it’s not expensive. Ah, Sans. 300,000,000. In Korean currency, it was 70 million, 80 million, less than 100 million won. I still remember it clearly. When I came here, I asked the real estate agent, “Hey, how much does it cost to buy this house?” “Oh, this house is expensive.” “Hey, this one. You still need about 70 million won to buy this house.” “Wow, it’s expensive.” Back then, 70 million won for a house was considered extremely expensive. But do you know how much this house is worth now? I saw this while checking the content a while ago. It’s a small apartment complex in Shinjae-dong . It’s about 40 years old. It’s an old apartment. Do you know how much a unit here is worth now? 10 won per square meter. 100,000 won per square meter. This is where I used to live, and it was around 85 square meters. How much is it?” How much is the real estate price in Beijing without a real estate license? 1.6 billion won. 70 million won has become 1.6 billion won. This is downtown Beijing. Now you realize how much real estate prices in Beijing have risen? 70 million won has become 1.6 billion won. How much has it increased? 24 times. Do you know why Beijing kids are coming to Seoul these days and buying houses in the heart of Seoul? Korea is a developed country. Korea is a very developed country. But these kids aren’t going to study. They’re just saying, “Bring money and give me a house because I have a lot of money.” That’s not right. Kids should study too. Compared directly to Beijing, South Korea has developed this much, yet housing prices haven’t increased by this much. Housing prices in Seoul are undervalued. Hey, that’s what it is. Can you imagine? From Beijing’s perspective, Beijingers literally saw housing prices rise 20-30 times . But if you calculate housing prices in Seoul from the early 2000s to 2020, they haven’t increased by that much. So, even without that, Beijing’s assets are already at risk. People are pulling out all they can, and the most buying is in the US, Europe, Japan, and Korea. They’re paying for housing in Seoul, but foreigners are buying in bulk . They’re fully buying. This is the Beijing real estate market, inside the Sanhuan district, where housing prices are currently being defended . Sanhuan, remember this. Sanhuan Road, oh, oh, map. Alhuan. Alhuan, and this is Sanhuan. If you break it down into Han-gu, it’s Gangnam Sanhuan. This is now defended, and even if you come all the way to the Sseuhuan, even to this point , I’ve brought you an example . Okay, let me explain. This is near the Sseuhuan district. Where would you call this area in Korean terms? It would be around Mayongseong. But Yongsan is also very popular these days, so let’s just say it’s next to Gangnam 3-3-gu. Mayongseong could easily be there, or you could say Mok-dong. Oh, right. Mok-dong. Mok-dong is nice. There’s a place like this now, like Qingyelu. Come out here. Oh, I’ll tell you where this is. The places like Zuoyang and Wuyang are famous. Oh, they’re famous. Oh, this isn’t it. Oh, does that bring back old memories? This is Chayangbei, right where the 3rd and 4th rings change. Oh, it’s inside the right ring. This is where the ring changes slightly, and now it’s Gyeonggi-do. Beijing, you have to go inside the ring to get some credit. It’s Gyeonggi-do outside the ring. But when housing prices were skyrocketing, this was just Beijing. This was Gangnam’s Sang-gu. It was incredibly expensive. This Jeong-yeok is a pretty famous apartment. Oh, it’s a nice place. The monthly rent here is 1.3 million won. Oh, I paid about 6,000 to 7,000 won a month, right? Oh, for about 7,000 won, you can buy a 230-pyeong apartment here. Oh, I know exactly, right? Oh, I have all the Beijing-Beijing data in my head. It’s been 20 years since I’ve been in Beijing . This is a famous apartment complex. Even though it was built quite a while ago, back then, if you said it was a Chaoyang-style building, you could tell right away. Just looking at it, it’s a perfect square, low block of land. The apartment complex, and even the park here, are perfectly designed. Anyone can see that this is a luxury housing complex. But let me summarize it for you. Right now, housing prices are falling to a certain degree in the cheap inner areas. But between the cheap and the cheapest yuan, housing prices are dropping by about 5% to 10%. Let’s say 10%. Outside of that 10%, prices are down 20% to 30%. Here, they ‘re down at least 20%. I guarantee you, prices are down 20%, and in some places, even 30%. Direct transactions aren’t happening right now. You might be able to get it cheaper if you buy now . How can you, as someone who has lived here, find our information accurate? It’s so accurate, but now that housing prices are falling, Beijing won’t fall first, right? Shanghai won’t fall, right? Oh, they wo n’t fall . They won’t fall. Hey, what’s falling in Beijing? Yes. Outside of this Ohan, it’s similar to the provinces. They say it’s falling a lot outside of Ohan, right here. This is all Beijing, right? Hey, big girl, this is all Beijing. Ohan is this big. Outside of this, this place, what is this? Yaojia broke at the waist. Yes, it’s torn in half. Even though it’s Beijing, this is the place where you guys said Beijing was torn in half . However, the R3 ring is still somewhat damaged, but from the Shanhuan to the Sihuan ring, it’s gradually collapsing, and outside the Sihuan ring, it’s collapsing completely. Here, it’s about 20%, 30%, but no, ah. Why is Beijing falling? No, how is Beijing falling? This is a prime example. They bought a house worth 4 million won outside of Beijing. It’s 800 million won. 800 million won makes housing more expensive than the small cities we saw earlier, right? They bought it for 800 million won, but how much is it now? 600,000 won is gone, and 3.4 million won is being traded. How much is the 800 million won gone? The 800 million won has become 680 million won. But if all these people bought it in cash, it doesn’t matter. They can just keep living here. And if 600,000 won is gone from 400 million won, that’s a 15% drop. A 15% drop is still hopeful . Well, as time goes by and the economy develops , it will recover. Of course, the 15% will recover. Beijing will continue to develop as time goes by . But that’s not the situation for these people. They bought a house in 2022. Wow. I bought a house in September 2022, just as the COVID-19 pandemic was about to end. Hey, COVID-19 is over. There’s a delay . Hey, hurry up and just let’s combine all our assets and buy in Beijing . Hey, this housing price relay is continuing. I bought it in September 2022, and 80% of the people borrowed money. 4 million in unsecured loans, 800,000 in unsecured loans, and 3.2 million in unsecured loans. That’s over 600 million won in loans. But what’s missing now is all the advance payments people made. This is the situation in Beijing right now. But the place I’m talking about now is the city center. Only here are housing prices being protected. They’re being protected only by the cheap exchange rate. Outside of the yuan and the U.S. dollar exchange rate, it’s literally halved. But if you look at the news these days, the will of the upper and lower classes is unstable. Beijing is also falling. Beijing’s fall. The Beijing land price has plummeted. The plunge is outside of the 3 and 4 zones. It’s a real plunge there. A 50% drop is a crash. Honestly, even a 20% drop by Korean standards is a crash. Can you imagine? People go crazy seeing a 20% drop in Seoul’s land prices. But in Beijing, a 50% drop right now is a crash. Think about it, even if you break it down into percentages. Do you think there are a lot of people doing R3 exchanges in Beijing? Or, there’s this big area outside here, and this is all Beijing. Oh, can’t you mark Beijing a little more clearly? Oh, they’re not drawing a clear line here. Do you see this faint line here? This is all Beijing, folks. Do you see this faint gray line? It’s easier to see it this way. This is all Beijing. Wow, just looking at this, you can see how much Beijing has fallen. So, this is just a part. So, this is a part, and the people around here have all fallen. Beijing is now, on average, 50%. Even if they didn’t do Yaojia, it’s not a lie. But the real Beijingers, the real Beijingers, the real Beijingers, all the real Beijingers, live here in the city center. Housing prices here are still holding up. But then, aren’t people living in the middle of nowhere getting a huge payday? Housing prices going up 20-30 times ? Isn’t that amazing? Okay, let me tell you about my friend . My best friend. He’s my best friend. He’s one of my best friends. Where did he live? He lived in Anjeon. Anjeon, Jaewon, byeol. Okay, let’s see. This is Alhwan, 3sam, and my friend, Anjeon, is right here. It’s right next to Samhwan. Oh, the location is great. He lived right next to Samhwan. Oh, Angelina Showerchi, that’s right. I used to visit her house often. I used to visit her house often and even have lunch there. Because, uh, her school was here. It was close to school. My high school, my middle school, was close to her school, so I just walked home, ate, and stuff. Now that I’m her friend, I’d go to her house, eat, and come back. I have a friend who lived in this safe area. Back then, that house belonged to my friend ‘s parents, who were probably in their 60s. Back in their parents’ generation, if you worked at a Chinese company, you got a “bread and butter” deal. They gave you a house. Back then, China had welfare. If you worked at a certain company, your company’s welfare included giving you a house. So , the people who received a house back then are these people. The house wasn’t even heated. From what I saw, it was about 20 pyeong (approximately 66 square meters) in Korean terms. But who lived there? My friend, my friend’s mom and dad, and my friend’s mom and dad’s grandfather. But now that grandfather has passed away, and my friend, my friend’s mom and dad, and my friend’s father passed away too. Not long ago. Who lives there now? My friend, my friend’s wife, my friend’s mom, and my friend’s four children . It’s a small house with two bedrooms and a living room. How much do you think the rent has gone up? That house is an old house, no matter how old it is. It’s called an old house, Al R-sho-i. In China, houses are divided into two categories: new and R-sho-i. What is R-oi? Literally, an old house. So in Korea, there are new and old houses. It’s the same in China. New and old houses . But the house that this friend lives in is completely old. That house made of red bricks that must be about 50 years old. No matter how cheap it is, it costs well over 1 billion won. A free house worth 2 billion won. Oh, right, it’s a house that I got for free. Now it’s worth about 1.2 to 1.3 billion won in Korean currency. You guys, oh my gosh, I’m so jealous. Wow, those people, wow, they really got a house for free. Wow, 1.2 to 1.3 billion won. Think about it, you guys. I went to Beijing before Corona, and I met a lot of friends back then. When I met my friends back then, they were all older, adults now, and had families, so they all said, “Hey, where did my dad buy that house when he was young? Hey, back then, we bought it for 100 million won, and now it’s worth over 1 billion won.” I heard that so many times. Oh, and again, oh, where did my dad get that house from his company back then? Hey, they say it’s selling for 2 billion won now. All my friends are like this. They’re all friends in Beijing. But, oh, oh, oh, aren’t all those friends rich? Aren’t they all absolutely incredible? Isn’t it amazing? Think about it carefully. Their families all live in that house . If I sell that house, where will they live? They’ll have nowhere to live. That’s why people who own a house can’t sell it. It’s 2 billion won, and they can’t sell it. Where will they live if they sell their house? The whole family has nowhere to live. They sell the house, rent, and invest the money. That’s not easy in China, folks. If I were to live alone, I’d be a single-person household . But single-person households are rare in China. Where are single-person households these days? We should all live together. Oh, the fact that there are so many single-person households in Korea means they’re living well. Of course, there are people who live alone who struggle. But when you compare it to China, you can’t imagine a single-person household in China. Even if I were to go abroad and live alone, I’d never be able to live alone. Unless everyone else is in a similar situation, four or five people would get together and rent a house . That’s why I know this story so well because those friends. When people talk about how much the house prices have gone up, how much they’ve gone up, how much they’ve gone up , this is what I can say. Ah, [ __ ] I should’ve bought a house back when I was young . Oh, it was 50 million won, 70 million won back then. That’s all I can say. And one more thing. Hey, if it’s gone up that much, sell it. Hey, sell it and buy something cheap, and with the rest, invest it or buy another house. That won’t work. Do you guys know why? Okay, look. For example, this friend’s house is here. Oh, it’s right next to the fight. He’s selling this house for 1.3 billion won. But this house, you guys, all these houses I’m talking about right now are old houses. The old houses here are 1.2 billion won, 1.3 billion won. There’s a new house nearby. New houses are 3 or 4 billion won, guys. Even at the cheapest, they’re 2 or 3 billion won. So even if I sell this old house, I won’t have enough money to buy a new house. So what should I do ? I have to get out of here. I have to get over here. You have to go this far to be able to live comfortably. Riohuan. Riohuan. You have to go this far. You have to go that far to be able to live comfortably. But, as they say, “Lao Beijing.” Beijing natives are called “Lao Beijing” in Chinese. Lao Beijingers. They don’t want to leave Sihuan. You guys have lived in Beijing for decades. Now they’re selling their houses here and moving to the outskirts. These people don’t want to leave. They absolutely won’t. I won’t leave either. You say it doesn’t feel like a city? Ah, if you go to the outskirts, the city feeling gradually disappears. Of course, there are many new cities. But even in those new cities, it’s inconvenient to get around. I’ll explain it to you guys in detail. When I first went to Beijing, where I lived was Wangjing. Koreans who have been to China say Wangjing is a small town. I lived a little further in, here, in Yaoen, and I lived here. It’s pretty central. Xiaoying, here, I lived here. Oh, Xiao Shijishun, I lived here. Oh, this is the house I used to live in. The house doesn’t look that nice, does it? Oh, this is it. I used to live here. But if you look at this place, it’s completely central. The Alhuan fighting area, but even if you live here, it’s inconvenient to get around. That ‘s why I moved here later. The university is right next to the R-ring. In the past, Lao Beijingers who lived in Beijing for a really long time, no Beijingers , native Beijingers, wouldn’t treat you well even if you went outside the Sihuan. There’s a bit of that. China also has a bit of this: Beijingers slightly dislike people from Shanghai, and Shanghainese people also slightly dislike people from Beijing. The northeastern part of China doesn’t really like people from the south, and the southerners also look down on people from the northeast . China also has that kind of thing. If you look online, there’s a lot of regional discrimination. But even within Beijing, the real Beijingers, Lao Beijingers… Ah, Lao Beijingers, if you go outside the Sihuan, you live outside the Sihuan? Oh, there’s talk of rice fields and fields. That’s right. Rice fields and fields. Seriously, when I first went to Beijing, you all told me this is where I lived . Behind here, this place is now filled with this and that, this and that, this huge complex. In the past, this place was all rice paddies. Seriously, the apartment complex I lived in in this area was the newest one. It was a new complex, and there was nothing behind it. It was all rice paddies. Oh, and there were these unpaved roads in addition to the rice paddies. It was all unpaved roads. People would come out on these unpaved roads with carts and sell VCDs, fake VCDs, DVDs, and games. Now, here, you know, the Beijing conference center, all the high-end apartments are here. There wasn’t anything like that . Even in the early 2000s , when you talk like this , you immediately understand how Beijing housing prices are formed. If you think of Seoul, it’s divided into Gangnam-gu, Mayongseong, Daejang, and now Mok-dong, Gangdong-gu, and so on . Beijing is also a 3-ring R-ring. If you only know the ring, you’ll see how Beijing’s direct prices are formed . If Beijing itself were to be considered a single country, it would be this. This ring. You see the smallest square? Inside the smallest square, this is Gangnam Sang-gu. Next, the second smallest square, Ssam-hwan. Inside this is Mayongseong. Next, inside the S-ring, you’ll find Mok-dong and various other districts of Seoul. Outside the 4-ring, Gyeonggi-do. Outside the 5-ring, you see the provinces, cities, and 6-6. You see, outside the 6-ring, it’s rural. All the white space is rural. That’s right. The closer you get to Tiananmen, the more extreme it gets. So, even up to the S-ring, it ‘s down about 10-20%. What happens to the rest? It’s chaos. Beijing Airport is here. If you go to the Beijing River, you’ll get off at the airport here. If you get off at the Beijing Airport and go this way, you’ll see Wangjing, which is Wangjing. Wangjing has also developed incredibly. But I just came to Beijing and this really shocked me. Beijing Jiangchengdian, everyone. This Beijing Jiangchengdian is a huge hotel with a long history in China. This five-star hotel is closed. Where is it ? It’s right next to the Alhuan Mountain. The five-star hotel right next to the Mountain has closed. Haven’t we already talked about it? Who would go there and sleep? Even foreigners don’t come. Is this the first Five Star Hotel? I’m not sure, but it has a very long history. In the past, some kind of royal family came here. Guests from the Foreign Council came. They would all be taken here. This is the best, so if you ask them directly, they’d feel like they were being treated well. It was a symbolic hotel. It’s closed. I said earlier, Beijing is Beijing, but Beijing is Beijing. Where is Beijing going? Why is Beijing always crashing? How can Beijing fail? Wow, what I’m about to show you guys is called “Yen.” I can’t not tell you this, right ? Oh, if Seoul has the Apgujeong Galleria, Beijing has the Yienshau Central Store. You get the feeling, right? What do you think of the Galleria in Seoul ? It’s got expensive supermarkets, all the luxury brands, and it’s a huge place. This place was kind of like that. Anyone who’s lived in Seoul or Beijing knows this. It’s right next to the Yiensha Shingyeong Shopping Mall. All the luxury brands are here, and it’s a huge shopping mall with a large supermarket. But if I show you this video, it ‘s empty. You guys, I was shocked. This place used to be packed with people . It was a total mess. It was just a video , but there’s no one. Even on a weekday , there shouldn’t be this many people. All the luxury brands are here, and even on weekdays, it’s a mess. Rich people don’t necessarily have to commute. It was a bustling shopping paradise for the rich. This is it, this … The place where people just burst out is called CRC. The reason I prepared this in such detail is because , as the news continues, Beijing and Shanghai are collapsing. China. The economy is collapsing. People can’t feel it. They can’t go there and see it. But when you see this, you’ll immediately understand that it’s collapsing. That ‘s CRG Bay. The place I’m going to show you right now is CRG Bay. Where CRG is? This area, where the 2nd, 3rd, and 4th rings are almost fully developed . There’s nowhere left to develop. So now we’re going to go to Qinghe, which is famous. Next to Qinghe, there’s CR Zhan. This is a new city. This is a completely new city. It’s a new city. There are offices, buildings, residential areas, government officials, it’s a huge new city. This is right in Beijing, right next to Shihuang. The location is so great. If you go down here, you’ll find Tsinghua Province. Tsinghua University. Tsinghua is here, Beijing is here, and Zhongguancun is here. It’s the center of China’s IT, the center of IT. The location is amazing. Since this is a new city, let me show you a video. This is what the subway looked like back then. This is it. Oh, this is it. It used to be like this. This place used to be so bustling, but now it’s crowded. There aren’t many people there. Why? Because Beijing has seen a significant decline in the number of people . Foreigners have all left, and those who came to Beijing to work have all returned to their hometowns because there are no jobs. Migrant workers from out of town who barely managed to pay their rent. Then there are students who graduated from college. People who came with dreams. Now they can’t find jobs, housing prices are rising, and there’s no money. There’s no one to see. They’ve gone back to their hometowns. People from the countryside are returning to the steppes, and those who can’t hold out are moving to cheaper cities. Why did it suddenly become like this? It wasn’t all of a sudden. It’s been on a downward trend since COVID. Here’s this video. This is what the subway looked like just now. There aren’t many people now. This place used to be so bustling with people, but now there aren’t many people. Okay, and let me tell you another place. When I say Beijing, you probably think of Beijing’s Front Quarter, right? Oh, let’s look here. Have you heard of Wangfujing, Beijing’s Front Quarter? If you look here, Tiananmen is right here, right? Tiananmen, the center of Beijing, is the very center. Right next to Tiannanmen is Xidan. Now, if we compare it to China, this is Tiannanmen, and this is Wangfujing. Oh , this is Wangfujing, and next to it is Xidan. If we compare it to Seoul, where is Cheongdam-dong? Cheongdam-dong, the luxury shopping street? And inside the Front Quarter, there are many shopping malls and select shops . Think of it as Cheongdam-dong, an expensive area for luxury goods. Speaking of Xidan, when I was in college, look. Where is Xidan? I lived here. I lived here. Because I lived here, I often went to Xidan. You take a bus. If you pass Jisoo Street and Shinjae Call right past Shinjae Call, you’ll find Xidan. When I was in college, I’d go here to shop or hang out with friends. This is just like Gangnam, where we meet a lot. We go here to shop and eat delicious food. Xidan is really, you can think of it as Beijing’s best commercial district. Wangfujing Xidan. This place. It’s always bustling, whether it’s the weekend or the weekday . It’s really bustling. People buy clothes here, eat out here, and famous large franchise restaurants have restaurants here. Why? Because there’s so much transportation and money here. The subway is always jammed. Even on weekdays, it’s jammed, and on weekends, it’s packed. I never go there on weekends. That’s where you guys are. This is the video right now. This is the video of Wangfujing Xidan. Oh, this is Wangfujing. Ah, Xidan Xidan. Hey, this is a department store. Hey, wow, this is still there. There’s no one here, guys. There’s no one here. This makes no sense. Wow, guys, I was really shocked when I saw this. I was in a state of shock. Can you see this screen now of Xidan when I was in college? This is a really famous bridge. This bridge is really famous. If you go up this bridge, all these department stores are connected. All the shopping malls are connected this way. This is really famous. There are no people. It’s not like a main street, right? It’s just like, “Oh, isn’t this some provincial city?” This is Beijing Xidan, you guys. It used to be bustling with people 24 hours a day. You said it wasn’t there last year, right? The Chinese economy started to take a hit starting in 2023. This is a recent video. But this video was uploaded to a Chinese website. This video was uploaded to a Chinese website, and there were comments like, “Hey, isn’t that what you do on a weekday? ” The kids who left those comments are kids these days who don’t know what Xidan was like 20 years ago. When I was in college, from 2004 to 2008, I went here a lot. I also went here a lot in high school, from 2001 to 2004 . Why, even back in high school, we used to go here on the weekends to hang out. We bought clothes, ate delicious food, and ate street food. Back then, how much do you think Hongdae was like on weekends ? It was bustling with people on weekends, 24 hours a day. Day or night, shopping during the day, clubbing at night, drinking. That’s how it was. This was the place for young kids, for young people, for high school and college students. We went here on weekends. Back then, when hip-hop was really popular overseas, like in Sdog M, you had to go here to get hip-hop shirts and pants. It was the pinnacle of fashion. Whether it was the weekend or the weekday, this was the place you couldn’t go. And why are there so few people and not spending? Companies and Chinese companies are struggling these days, so they’re cutting wages, folks. They’re cutting wages. Because they’re cutting wages, they’re losing money in their pockets, so they’re not spending. And this just keeps happening. The bad news is freaking him out. It’s Xidan. Junta Baihu is here. Oh, it’s been a really long time. I used to come here a lot, high school and college students, but there are so few people. I went here and bought a lot of clothes. Where is this place for real fashion? Wanghujing, everyone. What was in Wanghujing? There were three really huge buildings called Shingwang TND. Whose building is that? It’s Li Zi’s election. The richest man in China. Uh, it’s Li Zi’s building, who was the richest man for a long time. And Li Zi’s building is up for sale right now, and he’s trying to sell it. This place isn’t this crowded with cars. Oh, it doesn’t make sense that there are so few cars here. Oh, there are really too few people. This is Xidan again. Xidan, oh, Xidan. Where was Junta Baihu ? Wait a minute. Oh, I’m a little confused. It’s similar to Wangshujing. Shopping malls, uh, Xidan. This is where you’re looking, everyone. This is where you’re looking right now . Where is Yoga? Cheonnam is right next door, which is equivalent to a gallery in Korea. Oh, it’s Cheongdam-dong, the luxury street. Oh, and one of the reasons it’s so small is because, well, then people won’t open their wallets. They won’t spend money . So what happens then? This is all offline stores. This is online. It’s not a store. It’s called DTDN in Chinese. Literally, it’s just stores, offline stores. But offline stores aren’t making money. The rent is ridiculously high, and they can’t make money. So they’re all leaving the stores. So they’re leaving the entire storefront, and all these stores are empty. People won’t come anymore, so there’s nothing to see. Why are they coming now? And yes, there’s a reason for that. Another big reason why there are so few people is that people have adapted to online shopping during the pandemic. And online shopping in China is more developed than in Korea. Let’s give it credit where it’s due. They’re really very advanced in online shopping. You know what? There’s so much stuff . There’s so many things like Temu, Alibaba, Tirit, Huxing, and Aww. So you don’t need to go in and do anything with a cell phone, a cell phone, or anything like that. Everything is done with a physical presence. With a physical presence, a single fingerprint is all it takes. Even if we have to survive, we have to do some authentication like this, and other stores have to do something else, and there’s no need for me to do anything else at these stores. It’s all connected here, just with the physical limitations . It’s all set up seamlessly. You don’t need a wallet or a card. People are so used to it because it’s so convenient . They don’t go offline. Oh, and another reason many brand stores are closing down is because people don’t have money. You know the gap between the rich and the poor in China is severe, right? I told you last time. It’s shocking. Oh, ha, in Korean currency, there are 1.2 billion people earning less than 1 million won a month , you guys. There are 600 million people earning less than 200,000 won a month. How do you live on 200,000 won a month? 600 million people earn less than 200,000 won a month in China. Now, it’s still like, uh, the streets of Beijing. It doesn’t make sense that there are only this many people right now . And there are department stores like Shidan and Wangfujing that have maintained their names for 100 years. They’re also disappearing. They’re also disappearing. You can consider China’s offline market dead right now. If Beijing is like this, what will the provinces do? You can imagine. Now, let’s talk about another region. Today, let’s talk about China, literally, and there’s another famous thing. Everyone who lives in China and has lived in Beijing will know this. Today, we’ll focus on Beijing. Have you heard of Guloudazhi? Haven’t you? Guloudazhi. I visited this place when I was broadcasting in China. Guloudazhi. Guloudazhi, everyone, this is it. Where is it? Tiannanmen is here, right? It’s above Tiannanmen. Guloudazhi, if I show you a picture, you can see it here. Oh, but which alley is that shopping street? This place is now a collection of old Chinese buildings, and Google Loader is famous for these little “yo-yo-yo” streets. They’ve preserved the feel of old Chinese houses, and they’re all here, like a shopping street. So, many people go here to see these old Chinese-style buildings, then go in and shop. It’s a unique alley. This kind of feeling. This kind of feeling. You get the feeling? These are all old Chinese restaurants, and instead of tearing them down, they’ve preserved their unique character . This is a place where you can see the Beijing Lao Beijing scene. It’s quiet here now. Of course, there are still a lot of people here. Look here. It’s this way, rolling hills. This is a famous tourist attraction in Beijing. There are still a lot of people here, but there are still crowds. Oh, yeah, yeah. But there used to be a lot more people than here. Isn’t this place crowded now? Still, there’s a lot more people here. Oh, and that’s right. Oh, it definitely feels a bit more organized than before. So , for a while, there was a movement to make the streets of Beijing prettier. To make the streets of Beijing cleaner, they cleared away all the clutter, paved the roads, and removed all the dirty, dirty things. And because of that, a lot of the original character was lost. Because these alleyway businesses should have a certain shabby charm. They should have a messy, street-level vibe, with all sorts of things out there, with tables set up to sell things , and all that. But all that was gone. So, some of the original character is gradually disappearing. The places I’m showing you one by one are all similar in context. To summarize, Wang Hujing is gone. Shidan is gone. And then there’s Zhongguancun. In the past, when you said PC, it was Zhongguancun. Well, computers, electronics, games, PC games—all those things. There’s no one in Zhongguancun now . Zhongguancun was even famous for something: young people dreaming of starting a business all lived there. Seven or eight people would live in a room, pay rent, start businesses together, brainstorm ideas, and call it a mecca for entrepreneurship. Where would it be in the US? Well, you know, like the US. Why? It’s like Silicon Valley. Zhongguancun is a bit like Silicon Valley in the US. There’s no one there now. Zhongguancun is dead. And I have to talk about this too. Wangjing, you know? Wangjing was Koreatown. Let me show you Wangjing. Right next to 2nd Ring, 3rd, 4th, and 4th, Wangjing was right here. This is Wangjing. It was so popular back then that it was literally Koreatown . All the Koreans who came in lived here. And back then , if you brought your salary to China, you were considered rich . Even now, you’re still considered rich. Hey, if you calculate it in terms of the People’s Republic of Korea, they’re making 20,000 or 30,000 UN per month, so they’d make at least 15,000 UN . If you make 300 in Korea, you’d be considered pretty well- off if you went to China. So, with all the Koreans gathered here, the market went crazy, and a huge commercial district sprang up, followed by a business center. Wow, it was huge. That’s Wangjing. I lived here for a while. I lived here when I was in college, and then moved here in my senior year . That’s because the broadcasting production company I was working for was here. Ah, Wangjing Soho. Okay, let’s go on the street again. Ah, let’s take a look at the street view. Wangjing Soho. Ah, this is it. You’ve probably seen it on the news a lot. This is Wangjing Soho. This is the famous building. Here and Wangjing, Wangjing Xiwen, and here, Daxiyang New Town, all Koreans lived there. I lived here too. Ah, there are a ton of apartment complexes here. Starting from here. If you go forward, there’s this apartment complex right here . Twenty years ago, it was all newly built. Now , it’s been built up a bit. These were all newly built. A lot of Koreans used to live here. And not only Koreans, but also many foreigners are moving in , so, you know, housing prices are bound to go up. But what’s happening here now? You know, the Wangjing Soho I just showed you? There are a lot of offices in Soho now. It’s empty. There’s a saying in China, “Chunfu Chunjin .” If you float this much land, it’s all gold. That’s the kind of place it was. Even this much land had to be bought with gold. So, land prices were high, rents were high, and things like that. It’s all empty now. It’s empty there, too. Oh, this is another famous place: Wudaokou. Anyone who studied in Beijing from the early 2000s to around 2020 couldn’t help but know Wudaokou . Where would it be in Korea? It’s like Hongdae. It’s literally a club district. International students would go there at night and party like crazy. Oh, and it’s open all night. Around Wudaokou, there were tons of people, and there were tons of small shopping streets. Have you heard of Jeongbongru? Oh, this is Wudaokou. This is Wudaokou, and where it’s located is in Tsinghua City, Beijing. There are many famous universities nearby. Hangtae Hangkong University of Technology and Aerospace is here, Bae Jingmin is here, Bae Jing is at the University of Engineering and Technology, and Bae Jing Yohan is at the University of Peking. It’s all very centrally located, but now this is a club district. Even if you look closely, this is a bustling area . If you look closely, you might be wondering, “Where are the clubs?” Oh, where are the clubs? It’s because you haven’t seen what it used to be like. Back in the day, if you look at the video, this is the center of Wudaokou, called Jeongbu Road. Back then, you see this side of town, right? These were all shops. They sold everything here, and if you went down to the basement, there were clubs, bars, and all these little shops . There were hair salons, and everything else. The government said, “It’s too crowded. They’re going to tear it all down and just reclaim the space. It doesn’t look good. It’s all gone. So, it’s lost its character, and the shops can’t even connect. The commercial district itself is dying. It’s just desolate now.” Ah, they still have a convenience store here. But this is a window. In the past, this wasn’t a window, this was the main gate. It was a gate, and you could come and go here, but now it’s blocked off and just a window has been made like this. Oh, what does it say here? Selling alcohol and cigarettes. I guess it’s that convenience store. But look at the convenience store too. It’s closed like this, so do you see the line here? If you want to buy something, pull the rope here. When the bell rings, someone here will come. “Hey, what do you want to buy?” “Hey, give me a cigarette.” Then you give the money this way. Do you see the line here? This is how business is done. They closed the main gate. Does that make sense? If this were Korea, this wouldn’t be chaos; it would be war. There’s a commercial district. The government would suddenly come and tear down all the commercial gates and replace them with windows. We’d build a wall. Hey, this is war. Hey, am I going to die because my livelihood is ruined? Or am I going to die fighting you ? We’re all going to die, right? But China can’t say a word . Hey, but they fenced it off and tore it all down. So originally, this was a mixed-use building. The first floor was all shops, but they just made it into an apartment complex. They tore down all the shops. That person’s government building became so deserted. This is Keuda Malu. Keuda University of Science and Technology, oh, and Beijing is the center, Central University, right? Okay, Beijing Keuda. If you go straight here from here, it’s this alley next door. Even if you say Beijing Keuda, this place was famous because there were a lot of college students. Next to this side, there’s Peking University. There are alleys like this, and they were all shops. There were a lot of small shops and restaurants and it was a mess. I used to go here a lot too. You know what it feels like, everyone near the university. Look at this place. The grass is this long right now. 20 years ago, 20 years ago, should I say 20 years ago, anyway, when I was in college, there were a lot of PC rooms, mukgeolli, lamb skewer restaurants , ah, lamb skewer restaurants. Oh, there’s a lamb skewer place and all that. Oh, there used to be a lot of things here. But now they say it’s bad for the city’s appearance, so they got rid of it, widened the road, and built a wall next to it, so it’s cleaner. It’s cleaner. And as it’s cleaner, people are gone now. We cleaned up during the Olympics, cleaned up during COVID, and continued to clean up. So, we cleaned a lot before the Olympics, and even after the Olympics, we thought, ” Beijing needs to be prettier. Beijing can’t be any messier. ” We kept cleaning. It’s really a shame there aren’t any old videos . If you compare them to the old ones, you can immediately see how much the city has become . Oh, but now that the old ones aren’t there. So now, Chinese people upload these kinds of videos and add these kinds of labels. Thumbnails like, “There are no duds in Beijing anymore.” They upload a lot of these kinds of thumbnails. So, there’s no place to walk in Beijing anymore. There’s nothing to see. Still, there are shops and a small atmosphere. Hongdae, Yeonnam-dong, Gangnam , they all have something to offer. From a distance, it’s a bit crowded. It looks really messy. But when you actually walk around there, there are a lot of people walking around, looking at each other, and that, in a way, is the atmosphere of human life. China right now is just concrete. All the commercial buildings have been removed, it’s just concrete. Concrete. This is a video from this year. This is a video from early winter this year. Those of you who have heard of Huilong will know, but this is famous for something that became famous later. If you look here, it’s the 3rd and 4th Huilong areas. It’s outside of Wuhan. But outside of Wuhan, as I joked earlier, there are almost no provincial cities . The good thing about this area is that it’s all new cities. Among them, Huilun is famous. This new city is built incredibly grandly. To see how grand it is, here ‘s a video. This is Huilong Koanshun. The apartments, anyone can tell it’s a new city. The commercial buildings are all in a nice, well-paved area, right? Oh, but look at the people. First of all, there are no people. It’s a huge new city. Do you see all those apartment complexes in the back? You’re in Beijing. It’s a little bit like Bundang in Korea . It’s a little bit far from Seoul, but it’s a new city built with such grandeur. It’s completely empty. I wonder if all these houses are occupied? One thing’s for sure: all the shops are empty. These are all shops. There are so many people in this new city . You can’t really say there are a lot of people; there are just residents . But look, all of you are shops. They’re all empty. Looking at this big thing with Uniqlo here, isn’t this a huge shopping mall? Wangke Guangchang is bustling with people. Inside, that huge shopping mall is deserted. Just walking around the streets of Beijing, even inside a shopping mall, you can see how economically difficult it is. For example, if you go to Beijing now, for the first time, you might think, “Oh, that’s how Beijing is,” but when you compare it to the Beijing of the past, you know Beijing now. Beijing is just so, so dead . Today, I’m going to focus on Beijing. I’m going to show you the real situation in Beijing. People on the streets of Beijing. Shops are closing, people aren’t moving around, and the real estate market is plummeting . Beijing is going through this. When you only watch the news, you only see stories like this: Beijing’s economy is down by a certain percentage, this certain percentage, this certain market indicator is doing poorly by a certain percentage, and so on. You haven’t actually seen any real-world examples of this. Doesn’t this make it a little more relatable? Doesn’t it make it a little easier to understand? Today , we covered Beijing. We’ll be heading to Shanghai soon. Everyone, after watching the Beijing video, many of you asked us to cover Shanghai. We wanted to cover Shanghai. We’ve been preparing materials related to Shanghai for a long time. What’s Shanghai like? Shanghai is the richest city in China. It’s the economic center. Even if Beijing is the capital, it’s not. It’s the economic center. It’s the wealthiest, developed, foreign capital, and just Shanghai is the ultimate international city. It’s that kind of city in China. So, what do you want to see in Shanghai? Ah, I brought some information about Shanghai today. Hey, isn’t this Shanghai? Hey , uh, uh, this is just flashy. Hey, this is culture and uh, the ancient and modern coexist, hey, this is what a trip is, travel, and the downtown area, what are the huge buildings, hey, where is this, here, uh, uh, wow, what is this, how long is the bridge? When talking about Shanghai, this is something you can’t miss, you can’t miss, the Oriental Pearl, hey, there’s a video too, uh, this is the proper Oriental Pearl , it’s cool, taken from the sky, uh, but Shanghai is cool, uh, really, uh , it’s a really cool city. It’s a really cool city, and really, really, what’s special about these videos? If you look at them from afar, from the sky, and from far away, taking the entire view like this, uh, how many cities in the world are this beautiful? It’s an incredible city. I don’t need to emphasize this , you all know. Okay, now let’s talk about Shanghai . Okay, so Shanghai looks great from afar, but if you look closely, the COVID-19 situation, COVID-19 regrets, and what’s happening in Shanghai now after the lockdown ends . Let’s take a look at the real estate in Shanghai. As I showed you Beijing housing prices last time, I’ll show you Shanghai housing prices. Okay, let’s start with the map. Let’s look at the map of China. Let’s go to Baidu Map . Where are you guys? This is Beijing. Oh, we stopped by Beijing that day. Where is Shanghai? Shanghai is here. Shanghai isn’t that far if you fly from Seoul to Korea. It’s close. Shanghai. Shanghai. Oh, Hankou City. Can you see the faint line? This is all Shanghai. From here to here, and from here to here, this is all Shanghai. And Shanghai. Where is the most central part of Shanghai ? Okay, the most central part is going in and going in and going in and going, oh, here, Oriental Pearl Tower. This is Oriental Pearl Tower. Just centered around the Oriental Pearl Tower, this area, ah, if you look here, it feels a bit like a quagmire. It’s slightly crooked like this, this side is the center, the very center. When I say “Budong, Budong,” I think everyone knows . This is the center. Budong, the Waitan. Right. Right. Oh , well, Shanghai is such a famous city, I believe you all know it well. Budong, the Waitan. The Waitan, in a way, is the most expensive place in terms of housing prices. Yes, there are houses worth tens of millions of won there, and even if you go out to the outskirts, there are villa villages and such. But even then, there are many houses worth tens of millions of won, hundreds of millions of won. First, there’s some data. It’s data on real estate in Shanghai. It’s the latest data. It’s as of the end of July, right? As of June 2024, the number of real estate transactions in Shanghai was 26,374. Is that a lot or a little? The number of real estate transactions in June was 26,374, a 10% increase from the previous month. Looking at the June transactions, homes priced between 2 million and 3 million yen accounted for approximately 30% of transactions, the largest number. That means homes priced between 400 million and 600 million Korean won (approximately 30%), with homes priced between 400 million and 600 million Korean won (approximately 30%). Homes priced below 2 million or 400 million Korean won ( approximately 28%) accounted for 28% of transactions. Homes priced between 3 million and 8 million yen, or between 600 million and 1.6 billion won, accounted for approximately 35% of transactions. Homes priced between 8 million and 10 million yen, or between 1.6 billion and 2 billion won, accounted for approximately 3%, with homes priced over 2 billion won accounting for approximately 4%. Ah, what this is, it’s just, uh, what this indicator tells us is that expensive houses aren’t being traded very often right now. Right now, houses priced under 3 million won, or 600 million won in Korean currency, account for almost 60% of the transactions. Cheap, expensive houses aren’t being traded right now. That’s what it’s all about. Next, uh, real estate in Shanghai and Xia. Oh, right. These days, if you look at the news, you’ve seen a lot about the fall of Beijing and the fall of Shanghai and Xia. There have been a lot of articles in Korean news about Shanghai and Xia no longer being able to do anything . I don’t think you all realize it, so I’ll give you a sense of how much house prices in Shanghai and Xia have fallen. I brought some data to see how much real estate in Shanghai and Xia has fallen . There’s this ranking. The top 5 real estate crashes of June. After seeing this, I thought, “Wow, isn’t this just missing the outskirts?” and searched each and every location . Seriously, where is this place in Shanghai? Why is it missing? I searched everywhere, and it’s not in the outskirts. There are even some in good locations. Okay, here’s number 5. Out of the top 5, where’s number 5? It’s called Gonghui Huayuan. Oh, it’s located here. Let’s see how close this is to the city. Okay, there’s a subway line right here. Next, let’s look . The Oriental Pearl Tower is here, and Shanghai is right here. It’s pretty much downtown. If you look here, the location is here . The Huayuan Garden is called Gonghui Huayuan, and then Shanghai is here. Even though it’s all Shanghai, you can see it from here. And even though it’s all Shanghai, you can see the big lake here, right? Right up to the lake, it’s all Shanghai. But the Oriental Pearl Tower is here, and it’s pretty central. If you look ahead, you’ll see Shanghai. But if you look here, the location is pretty good. If you look at the picture, it’s not new. It’s not new. It’s more of an existing building, right? Just looking at it, it looks like it’s over 30 years old. Inside, it’s all along the Dream Hill side. Anyway, the location is good. How much do you think this house will cost? This house. Another interesting thing about the price of houses is that the average actual transaction price is 45,000 U.S. dollars, or about 9 million won per square meter. In Korean pyeong, multiply that by 3.3. That’s about 30 million won per pyeong. That’s 30 million won per pyeong. In Korean currency. Okay, this is the current trading price. The current price was originally 57,000 yen at its peak, but it’s now 45,000 yen. It originally hit 57,000 yen and has fallen 37%. This is a relatively central area, but it’s down 37%. But it doesn’t end here. Among the properties currently listed, there are some that are actually being sold for 40,000 won . 45, the average price is currently being traded, but there are properties listed for more than 40,000 won . So, if we calculate it in Korean terms, that’s 30 pyeong (approximately 100 square meters) in Chinese terms, right? 100 square meters would be 5.7 million yen at its peak. A house that was traded for about 1.1 billion won in Korean currency has now fallen to 800 million won, a 37% drop. Oh, this is Gonghoe Huawei, but the area is called Butoyu. It’s called Butochu. Hearing it like this, it’s just, “Oh, right now, housing prices in Sangha are plummeting. Hearing actual transaction prices is more tangible than seeing it in person. That ‘s the kind of show I’m talking about. Experts don’t come out and talk about things like, ” What was the price per pyeong in which neighborhood, and how much has it fallen? ” Experts don’t talk about things like economic growth rates, real estate rates, or anything like that. They just look at indicators. This is fifth place, and then fourth. And what’s fourth? It’s called Liudiwan. Let’s see where it goes from Sangha to Sangha. Okay, if we just pick one, okay. This is a huge complex. You can tell just by looking at it, right? There’s a river running right next to it, and the subway is there. Subway power. Subway power. It’s not quite the subway station area. And compared to the city center, this is a bit far. Dongbang Mingju is here, and Y-tan is over there, so it’s still a bit far from Y. Compared to that place earlier, it’s quite out of the way. Right? It’s quite out of the way, but that doesn’t mean it’s completely out of the way. If you look here, it ‘s not completely out of the way, but it’s a bit further out, so of course it’s on the outskirts. Let’s take a look at the housing prices here. Let’s take a look here, Liu Diwan. Oh, this isn’t a new building. This is a semi-new building. You can tell just by looking at it. Wow, the interior is well-maintained. The interior is incredibly well-maintained. Oh, what’s the landscaping? This is a new building, but let’s take a look at the road viewer. Oh, it’s completely new. Oh , it’s just good. Why are the apartments pretty well-maintained? Oh, this is okay, right? It’s a bit far. From what I’ve seen here , it seems like you’d need a car. Now, it takes a bit of time to get into the city center. Let’s take a look here. This is in Ching. That’s right, Chingchui. It’s a district a little bit outside the city center. Chinggu. Here’s a place called Ryudi. The average real estate transaction price these days is 30,000 won per square meter. That’s a 41% drop. And the initial sale price here was 40,000 won. It’s currently being sold for 40,000 won, and among the properties currently listed, the best price is 27,000 won per pyeong. Let me explain this based on 100m, or 30 pyeong in Korea. Originally, the average real estate transaction price for a 30 pyeong apartment was 800 million won, but now it ‘s being sold for around 500 million won. It’s between 500 million and 550 million won, a 41% drop. And the lowest price is even lower, 27,000 won. It’s easy to understand, right? Cheap? I don’t think so . This area should be cheap. Looking at it, there’s no subway nearby, and even if you pull it up like this, there’s no commercial district. There’s only one hospital here . There’s a hospital, but is this a commercial district? Oh, there’s a bit of a commercial district here. Oh, there’s a commercial district here, but it doesn’t look like a busy area from my perspective. Oh, there’s a shopping center here. Shinsangseonghosang. But transportation here seems really inconvenient. I don’t see a subway station nearby. Oh, there’s a highway. So , the housing prices here are too expensive. I think they’re expensive. This place feels a bit like Shanghai, but it’s not Shanghai. In Korean terms, it’s not Seoul, it’s Gyeonggi-do. It’s Gyeonggi -do, but there’s no subway. So, isn’t it still a bit of a bubble? Oh, that’s just my personal opinion. Anyway, this is fourth place. Okay, let’s take a look at third place. Hey, this is even a villa. Okay, let’s see where we’re going next. It’s called Meilanhu Bieshu. Oh, Miranho Villa. Oh, it’s called a villa. And this is famous because, as far as I know, it’s a golf villa. Oh, isn’t this it? Anyway, it’s called Miranho Villa. Hey. Hey, this is the entrance. Oh. Ah, it’s literally a villa. How would you guys want a villa like this in Shangha? Oh, there’s a villa village like this in Jeju Island, right? Hey, this villa village is slightly on the outskirts of Shangha. Let’s take a look at its location . How far is it from the center? Oh, it’s not that far. This is the Oriental Pearl Tower, the Shanghai Huaihuai Temple. This is the Bund, and there’s even a subway here. There’s Line 7. It’s right next to Line 7. There’s a separate Meilan Hulan here. If you take Line 7, you can go straight into the city. It goes directly. The location is great. Hey, there’s a subway right in front of my house. There’s one here too. Um. Right in front of Yoyo. Below this, here too. How much do you think it costs, guys? How much would you pay? Okay, let me tell you the price per square meter in China . 27 per square meter in China. So if you multiply that by 3.3, this is a little over 80,000. 1,600 won per pyeong in Korea. 1,600 won per pyeong in Korea. Your villas are 1,600 won per pyeong . From what I’ve seen, it takes 30 to 40 minutes to get downtown by subway. If that villa is over 30 pyeong, right? Let’s say it’s around 70 pyeong. No, let’s just say it’s 100 pyeong. 100 pyeong in Korea. Then it’s 300 M, right? Let’s multiply 330 M by 300. What do you think? Oh, if it’s 1,600 won per pyeong, just multiply by 100 pyeong, that’s 1.6 billion won. Oh, that’s a high price. But what’s important to you is the current price, the price after 45%. Isn’t that even more surprising? Originally, it was 27,000 yuan per square meter . The average price being traded was originally over 50,000 won per square meter. Has it dropped significantly? This is now 45% off . Mail Hubaeshu, this is in third place. Hey, but here, ah, but because it’s a villa, these people can’t just approach it. So no matter how cheap the average price is, it’s a villa, so it’s going to be big. Oh, the price is quite high. Oh, this is a really expensive house. People don’t buy things like this now. Okay, next, let’s take a look at second place. Second place is, let’s take a look at the map again and go in . It’s called Wanjiayuan. Where should we go this time? The center is here. Where should we go? This time, Heo Ja. Oh, hey, this place is a bit far. It’s in Jinshan District, uh, at the edge of Shanghai. Oh, but it’s close to the sea. Right? In a way, that could be the appeal for some people. Right? Oh, there’s no subway. The subway is over here, but it ‘s not even close to the subway station. Oh, right here. There’s one here. It’s called Jinxian. There’s one here, but it’s a bit far. It ‘s not really close to the subway station. Let’s take a look here. It’s clean . It’s just a neat and tidy apartment complex. Oh. Hey. It’s okay. It’s a bit far away, but the complex itself is neat and tidy. It seems like a complex where you can live as much as you want, but transportation is a bit inconvenient. The average transaction price per square meter here is 12,000 won. That’s 2.4 million won. That’s really cheap. Then how much is 100 square meters? It’s 1.2 million won. 1.2 million won is 240 million won. A 30-pyeong apartment is 240 million won. You guys, it’s cheap. But it’s too far out. And this is a 46% drop from the original price. Among the properties currently listed, the one listed was 12,000 UN per square meter. So, even though it’s listed at 11,000 UN per square meter, it’s not selling. So, you can get a sense of how the housing prices in Sangha are dropping, from the downtown area to the outskirts. Right? And this price listed at 11 is the new low. The new low. And honestly, just looking at this location, it’s not going to be easy to live here. Even if you have a car, how long until you get to downtown? And if you look here, the subway is almost here. This is the center, but it’s too far. And someone here is saying that the sea in front of Sangha isn’t attractive . That’s true. The sea isn’t clean. If you go to the sea, you won’t get that “oh, the sea” feeling. You ‘ll get that “oh, the sea” feeling. Anyway, this is number two. Oh, this is number two. Next, the number one crash. Okay, the name of the complex is Hangsin. Oh, it’s a little closer than before. Oh, it’s a little closer than the one just now. It was right under the one just now. Oh, this one’s still a little far, okay? Okay, let’s take a look. It’s still a little far, but, oh, there’s a subway here. Hey, the subway is right there. The subway is right in front of the complex. It’s okay for places like this. Take the subway, it’s Line 5. If you take Line 5 and keep going, you can’t stop. How long do you have to go? If you keep going, you’re already in the city. Anyway, there’s a subway. The important thing is that there’s a subway right in front of your door. It’s very important. There’s a subway right in front of your door. Looking here, there’s a large shopping mall, and Gwangchang. The location seems great . This one looks a little off-kilter, but there’s a center here, and there are a lot of apartment complexes nearby. And then there’s this green space, right ? There’s a subway, right? Oh, there’s a large park right next to it. What about the school district? I don’t know about that . Is this a school? Ah, this is a vocational school. Shangxue. Uh, there are two schools here. There’s a kindergarten and a lot of elementary schools, so overall, it seems okay, but why did this place go down so much? How much? Here, it’s 24,000 won per 1M. 24,000 won, and in Korean pyeong, it’s about 1,000 won per pyeong, 1,400, 1,500 won per pyeong. So, for 30 pyeong, how much would it be? A 30 pyeong unit would probably be around 400,000,000,000 won, right? But the price has dropped by 61%. It’s down 61% from its peak. Wow, that’s more than half, right? Should I buy it? Oh, wait a minute. It’s near a subway station, and it seems okay. So, it went from 1 billion won to 400,000,000 won. Oh, is this an apartment complex? Looking at the photos, it doesn’t look like a savings apartment or a luxury apartment. It looks like a regular apartment for ordinary people . It doesn’t look that great. It feels a bit built-up. Oh, it’s an old apartment. I don’t think I’d buy it. Anyway, this is the apartment with the most price drops right now. These are the statistics for June 2024. But these really have dropped significantly. Based on the average price of Shanghai land, it’s said to have dropped by about 30 to 40 percent. Average. But how do you guys feel about buying after hearing these prices? Here, there’s a one-liner from an expert below. like this I wrote it down. The rule of the future is that it will not be changed, the price will be changed, and it is now. The study of the local area, the view of the local area, the life and life of the local area. According to the laws of the city, it is said that it is a matter of course.也只是暫時的,沒有經濟之撐,房價很難有大的氣色, It is not subject to change in the past, the market is subject to change, the current state of the world is large. It is said that it is necessary to study the local economy, to see the local area, to live in the area, and to live in the area.已經很大, in the upper part of the city, in the upper part of the city, in the lower part of the city. It is a historical, historical, economic, economic, and economic development. What this means is that current housing prices cannot stop falling unless the economic situation improves . Who would buy a house in this current slump? No one knows, but in Korea right now, let’s talk about Seoul . When Seoul fell towards the end of last year and the beginning of the year, it was picking up. People were picking up, and now apartment transactions are rising, and it’s slightly rising again. People were canceling their purchases, then dropping slightly, and now it ‘s rising again with a tail. People are saying, “Oh, Seoul housing prices are rising again,” and articles are coming out saying things like that. But we still have to wait and see if this is a real rebound or a dead-cap bounce . Many experts say it’s a dead-cap bounce, a slight upturn followed by a tail drop, but no one knows for sure, right? We have to wait and see. Right now, the market is just fluctuating. There hasn’t been a bounce yet. It’s a continuous market. It’s just falling. So, people without money can’t buy anymore. Those who bought before are desperately trying to pay off their loans, and those who didn’t buy yet still haven’t. Wow, I’m so glad I didn’t buy . There are so many people like that. Wow, if I had bought, I would have been screwed. And they keep calling their mothers-in-law and saying, “Oh my, son-in-law, you didn’t buy a house. You did a great job!” Those people are the ones who can afford to buy a house. But even they ‘re not giving it to the lower-level governments. They’re not giving it to the lower-level governments. Why? They should give it to them cheaper. Or they should just die for cheaper? Or they should die when these house prices hit rock bottom. And the economy is bad right now, and they’re taking out a loan after buying a house. Oh, that’s crazy too. Anyway, the one line from the experts is, ” Isn’t it still difficult for house prices to rise?” And these kinds of articles are pouring out right now. Right now, many areas in Sangha, you saw all of those places earlier? Well, whether they’re nearby or far away, many areas are returning to the 2014 housing prices. And right now , apartments under 1 million won are being built in Sangha, whether they’re small or old . Back in the day, when the price of apartments in the upper and lower classes continued to rise, a million won was equivalent to 200 million won in fixed income. Each apartment costing 200 million won was ridiculous. Hey, where can you find a 200 million won apartment in the upper and lower classes? There’s no such thing. It was a time like that, but now, even apartments worth 200 million won are being sold for less than 200 million won. So, what’s being traded and sold in the Shanghai real estate market right now? People who are offering their properties at low prices. If they’re desperate and offer their properties at a lower price than the current market price, the more they sell. So, right now, those sellers are competing with each other to lower their prices. But you know, those older houses I showed you earlier? Those houses aren’t affected by the people living there. Most of them have been there since the beginning, living there for decades. Whether prices rise or fall doesn’t matter to them. Why? They can’t sell their houses anyway. If they sell, they’ll have somewhere else to live. That ‘s the majority of people. But those who made money recently, in the 2020s or 2000s, and bought early, can still hold on. But those who bought near 2020 are in a state of absolute hell. You can assume all the down payment has been lost . The down payment is 10%. It’s gone down 30%. For example, here’s a couple trying to buy a house worth 1 billion won. A 1 billion won apartment. They’re buying a 1 billion won apartment. They put down 100 million won as a down payment. And they take out a 900 million won loan. They’re working hard every year to pay off the principal and interest, and then they hear, “Oh, the house just sold.” For 700 million won. How would the person who bought the house for 1 billion won feel? They’ve lost all their down payment. Even if the house value drops to 700 million won, the debt doesn’t change from 900 million won. That 900 million won debt just goes to them. Where does that money go? It goes to the government . Of course, it goes to the real estate developer, right? No. Most of it goes to the government. It’s the bank, it’s the government’s money, and it goes to the real estate. And the real estate side has to pay income tax, so it goes to the government. And many people told me, “Hey, even if China owns your house for 70 years, after 70 years, the Chinese government won’t take it away. They ‘ll extend it. They’ll extend it for free.” You know, China’s real estate is like a surplus. Property rights last for 70 years. After 70 years, it’ll belong to the government. Of course, the government will make an offer. “Hey, it’s ours now, so get out of here.” That’s not right . We can extend it, right? But will we extend it for free? Then where does the money go? It goes to the national treasury. It keeps nurturing the people’s new sprouts. So, the Chinese government won’t do anything. Why? Because they’re constantly supporting these sprouts from below. Oh, I told you earlier. There won’t be much of a chance of China’s downfall. The people will just get increasingly desperate. So, what impact will falling housing prices have? A huge article broke recently. It was a truly devastating article. After the article broke, it was taken down. Yes. China is another big story. Oh, this seems like it’s going to become a social issue, so take the article down. Okay, if housing prices are falling like this, man, this is real. Okay, let me cover this incident. Are people moving? No. This is just a real case. In China, there’s something called Zhong Jinshi. If you hear this story , people in the know will say, “Oh, that’s it.” Chinese people will know. It was a huge hit. There’s a company called Jinshi. It’s a top-tier investment bank in China. A certain employee worked at this company. A young woman named Zheng Yuelu, born in 1994, had a friend who worked at this company. Okay, this friend has incredible credentials. Born in 1994, she went to a university in China called “Yeonangdasi Bi.” It’s a top-ten university. And even within that university, she was incredibly elite. So, these are the projects that only top talent, top students, can get into . These guys were really successful in school and college. Elite. Absolutely elite. But these elites graduated. Next, they’re going to work for a mid-level company, a famous investment bank in Shanghai, China, international finance, or something like that. From now on, they’re going to work for a mid-level company. Do you know how much they’re going to make? I just got a job at this mid-level company, and my annual salary is 600,000 won. That’s about 120 million won in Korean currency. In China, 120 million won is like, “Wow, that’s even the starting salary.” Why is that starting salary? What was the average annual salary of this company’s employees ? Oh, the average annual salary is over 2 million won. The average annual salary at that company is, well, there are people who earn high salaries and people who earn low salaries. The average annual salary is 2 million won. That’s 400 million won. Even globally, that’s considered elite and high-paying. You can tell it’s a good company. Okay, so this guy gets in and earns a starting salary of 600,000 won. 120 million won. Then, oh, he probably met a colleague at this company. He met a male colleague and got married. But his husband’s salary is also around 600,000 won. They probably entered the company around the same time, or maybe they’re a year senior, or something like that. Right? So, their combined salary is about 1.2 million won. That’s about 240 million won in Korean currency. In China, this couple is considered very wealthy. Seriously. So, these two work hard and save money while married. So, how much did they save? They say they worked hard and saved about 4.8 million won. 4.8 million won is about 1 billion won in Korean currency. Right. Their combined salary is over 200 million won, so if they tighten their belts and save, they can save it in about 6, 7 , 8 years. Right? They saved up between 900 million and 1 billion won. Do you know what they’re doing with all that money ? Of course, this was before COVID, right? Okay, here, the Bund. Everyone, the most expensive place to live in Shanghai is called Shanghai Beiwai Tan. Now, everyone, when you say Bund, when you say Beiwai Tan, it’s here. Where is this, everyone? This is the Oriental Democratic Party of Shanghai. Right here, right in front, this is Beiwai Tan. They’re buying houses here. Wow. That’s it. If this is Apgujeong, they’re just buying houses in Yongsan right in front. You get the idea, right? They’re buying here. How much are they buying? They’re buying a house for 16 million won. 16 million won is 3.2 billion won in Korean currency. A house worth 3.2 billion won. Well, they have 1 million yen. With the money they’ve saved, they’re buying about 4.8 million won. We’ve raised about 5 million won, so we’ll use that to borrow about 11 million won. We’ll take out a 2 billion won loan. We’ll take out a 2 billion won loan, and then we’ll set a 30-year repayment period. If we set a 30-year repayment period, the monthly payment will be about 56,800 won. That means we’ll have to pay about 57,000 yen as a monthly deposit . That means just paying this off every month will cost 10 million won. Just paying this off every month. Now, before we go any further, I’ll show you this guy’s article as it is. Why is this article being published now? I didn’t show you. The article was huge. This guy, a mid-level employee, joined a mid-level company. And the photo is actually here, with his eyes covered . Despite his impressive specs, he’s also incredibly beautiful. Beyond his impressive specs, his beauty is incredible. Here’s another introduction about him, but to put it simply, he’s a true elite, literally, with everything. He’s got looks, a great body, a family, and a great husband . He’s got a good salary, and a good education. He’s a bit of a hexagonal person. He fits that description perfectly. The Chinese are also like that. Let’s talk about that. These people are all like that. But why did this get so big? Okay, let’s continue. There’s also a saying in China: there are a lot of beauties in the finance industry. But these beauties in the finance industry are really only the top elite in China, and they even have the looks to back them up. China’s ultra-high-tech industry … Anyway, these two friends set up a 30-year repayment plan, and the monthly payment is 56,000 yen. That’s 700,000 yen a year. That’s 700,000 yen just for interest and principal repayment. They have to pay this off for 30 years. How much is 700,000 yen? About 140 million won . But since a married couple earns 240 million won combined, they can afford to pay 140 million won a year for interest and the remaining 100 million won. And these people felt this way. It’s right in front of the Bund and the Oriental Pearl Tower, and everything. And once COVID-19 is over, this place will definitely rise. ” How can house prices here plummet?” “House prices here can’t fall.” That’s their mindset. So, if they maximize their loan, how much is this house worth? It’s 3.2 billion won. So, if it goes up by just 10%, it’ll be 3.5 billion won. So, the nicer the house, the more expensive it is, the bigger the increase in value. That’s what these people must have dreamed of. Okay, even if you pay interest on 140 million won and only have 100 million won left, you can still live comfortably with 100 million won. But what happens in 2024 ? That house you bought for 616 million won, 3.2 billion won, will lose 30%. 30% is 4.8 million won. That means all the money they paid down, all the money they paid in advance, is gone. It’s gone. So, if this husband and wife were to panic for 4 or 5 years and just save money, they would have saved exactly 4.8 million won. It’s exactly 4 years. But it’s gone. How much is 4.8 million won worth of savings? About 900 million won. About 900 million won. 900 million won is gone. Even if the house value drops, since both of us have high salaries, we can pay off all the debt and wait for the house value to rise again. We’re already living in the house. But you guys, this is a common phenomenon in China right now. In the midst of this, my wife’s salary has gone down. The company is struggling, the economy is bad, and the company is struggling, so her original salary was 10 million won. It was 20 million won. So, even though her original salary was huge, her salary has gone up tremendously. If you look here, her salary has dropped from 100,000 won to 30,000 won. Does that make sense? You can calculate the salary as 70%. Anyway, it’s down to 10 million won. So, this is how it happened. Someone who originally earned 10 million won suddenly earns 3 million won. But, well , the salary itself is high. But think about it carefully. Really, try to change your perspective. You bought a house worth 3.2 billion won. It’s gone down to 2 billion won. But everyone’s loan is now 2 billion won. Wouldn’t you be mentally shaken at that point? But during that mental turmoil, your salary went down. So your husband went down, and Jeongwolrui’s wife also went down . Her annual salary was 1.2 million won, but it dropped to 700,000 won. And Jeong Wonryu’s salary went down to 300,000 won. That’s 60 million won. Her annual salary dropped to around 60 million won, and her husband’s probably dropped to around the same amount. Right? So what happens is, after paying off the principal and interest, you’d have 100 million won left, but now that you’ve paid off the principal and interest, you have no money to spend. And you can’t avoid paying off your debt. But now, as soon as the money comes in, it’s gone. You have no food, and the house price has plummeted 30%. And you know, I haven’t been showing you this article properly. I’ve just been showing you pictures and skipping over it. The reason is because this person can’t hold out any longer. To put it another way, he chose to live. He chose to follow orders. As soon as this incident broke out, there was chaos. That’s because of the circumstances. People in the world. So, people were envious, saying, “Wow, that situation is so great, that situation is beyond me.” But because someone like this made that choice, society was thrown into chaos. As society became chaotic, people started saying, “Oh, that’s what they’re doing too.” So, this could have a negative impact on society. So , as soon as this article came out, they blocked it. The company hasn’t made any statement, and they’ve just covered it up. There are various speculations, but I won’t discuss them. That ‘s not the point right now. This is the real-life example. Even these wealthy , elite people, can’t handle the shock when faced with this economic situation . They ultimately collapse. Now, think about it this way. If these people, these elites, these people in this situation have experienced this, what about you, the ordinary people? Right now, people in China who haven’t bought a house are feeling much more at ease. Everyone is buying houses, thinking, “Wow, I’ll end up broke if I don’t buy one,” and then they buy one. Those people are going through hell right now , while those who didn’t buy a house are saying, “Wow, I’m so glad I didn’t buy one back then .” But look at you, you Chinese . Look carefully. Where did this woman work? Zhongjin Gong. China Gojirong Holdings Co., Ltd. It’s a huge Chinese investment bank. It’s an institution, in a way. It’s the smartest, fastest, and most reliable company when it comes to economic forecasts. But do you think someone at that company would have made such an investment so ignorantly? No. I’m saying these people would have made such investments based on a bright outlook. Isn’t that right? It’s China’s top investment institution. Would they have bought it without thinking? But what’s the problem here? Even these huge Chinese investment banks and investment companies can’t use economic forecasts carelessly. They can’t use economic forecasts carelessly. The market will crash in 2024. Housing prices plummeting. How much will the index fall? You can’t talk about things like that so carelessly. Why? Because the government is monitoring. You have to write positively, no matter what. When you write positively, the staff here literally say, “Oh , the economic outlook for 2023 and 2024 is good. Hey, let’s buy a house. Now that COVID is over, we’ll relay it again. We’ll run. Everyone, this is when you only write good articles.” These are the victims. Chinese people, don’t criticize me for only reporting negative news. You need to know this so you don’t fall victim to this. Yes. I’m doing this because I’m genuinely worried about you. In China, you have to write positive economic forecasts. If you write negatively, you get cut. Then, Chinese people invest based solely on the positive economic outlook, and end up in this mess. Are you pushing me? Oh, there’s a lot of talk about the Korean real estate bubble right now . There’s a lot of hype, and what happens when store debt bursts? Oh, there’s a lot. But we know all about that. Articles come out. And we think about it all . We can make our own decisions, like whether to buy a house or not, or whether to apply for a house. In Korea, there are articles, both positive and negative. There are those who say housing prices are rising and those who say prices are falling. We’re exposed to both. But in China , there’s no such thing. That’s the difference. We can prepare by hearing negative articles like, “Korean real estate is screwed.” But China blocks such articles altogether. Do you realize how big the difference is? That’s why it’s like this. Does it make sense that an employee of that enormous investment firm, that financial investment firm, is being treated like this? So, do you know what happened after this article broke? Do you know why it was taken down? When people see this, and people in similar situations see this, they think, “Hey, that investment firm is in that situation too. ” Whose fault is this? Whose fault is this? Ultimately, it’s the Chinese government’s fault. Why? Because they misled the government. They should have warned us in advance that the economy was in bad shape . Ultimately, it’s the government’s fault. And as public sentiment worsened and trust in the government eroded, that was detected, and then this article was taken down. Why? Because this article was enough to sway public sentiment. Now, this is a real-life example, and there are countless people experiencing this right now. So many. And do you know what else is happening in society? Wow, these are things everyone, above and below, could never have imagined. Do you want to hear about it? Do you know what else is happening in society? Okay, of course, you might think, “Oh, that seems right,” or you might not, but listen. First, let’s take a look at the various strange phenomena happening in Shanghai and Henan. These are circulating a lot on the Chinese internet these days. They’re also circulating a lot within China. There’s nothing particularly problematic about them. But these are the phenomena that make people think, “Wow, this is really strange. The Shanghai-Hanhai relationship has really fallen apart.” Let’s take a look. First, the number of foreigners in Shanghai is decreasing. It’s becoming harder and harder to see foreigners. Remember when I went to Shanghai on TV? Whether it was a restaurant, a bar, a nightclub, or anything else, foreigners were almost always in charge. That’s because Chinese people, even up until the early 2000s, weren’t the type to really enjoy counterculture. They’d just have a meal, have a cup of tea, or have a drink . They weren’t familiar with going out to dance, going to bars, going to parties, or going to parties. Those born in the 80s started enjoying it a little, and those born in the 90s really started enjoying it. Back then, people born in the 70s and 80s didn’t really know about it. It wasn’t because it was dangerous at night, but because the culture itself wasn’t really there. But since a lot of foreigners come to Shanghai from overseas, there’s a lot of demand for it. People who know about it are now creating that culture, with laws and regulations. So, foreigners make up almost 80-90% of the population there. But seeing that , the Chinese people would think, “Hey, foreigners are drinking and hanging out at bars like this at night. They’re dancing and watching live performances, and they’d think, “Hey, let’s go check it out too.” And that’s how that culture gradually took shape. And the Chinese government doesn’t really block counterculture, saying, “Oh, yeah, it’s counterculture,” because it has a negative impact on society. It ‘s just that when I went there, it was all foreigners. Remember that episode? When I first went to Shanghai for a broadcast, was it 2017? Or 2016? There was a scene back then where I got into a little fight with a Russian guy, and things like that . Are there any videos on YouTube ? Anyway, back then, everyone was foreign. Everyone was foreign, and there were a lot of foreigners in the restaurants. And where else? Oh, right. The Bund. And Nanjing West Road, all the bustling places in Shanghai. They say the number of foreigners there is decreasing. There aren’t as many as there used to be. But that’s similar to Hong Kong. I went to Hong Kong recently, right? Even L’Ang Fai in Hong Kong didn’t have as many foreigners as there used to. Honestly, compared to when I went before COVID-19. It was crazy back then. Of course, there are still a lot of people partying, but the crowds are much smaller compared to before . So, because business is bad, many stores and clubs are closing, and many bars are closing, so the commercial districts of the bars are dying. And these days, if you look at the photos that Chinese people post on social media, like Xiaoshu, there used to be a lot of photos of them hanging out with their foreign friends, and photos of them hanging out together like this, but these days, there are a lot of photos like this, like “farewell star photos,” “goodbye photos,” and “my last night in China with my friend today.” There are also a lot of photos of farewell parties and such on social media. And these numbers are like this. There are statistics. In 2012, there were 12,000 Chinese students studying in the US. But now, there are only 350. 350. Just looking at this data, you can get a sense of how much the number of international students has dropped. And there are people who have experienced lockdowns during the coronavirus pandemic and are scared to leave, and the reasons are varied. And now, with no more jobs in China, and the headquarters downsizing and closing the Chinese branch, many of the destroyed employees are leaving, and the number of foreigners has decreased significantly. Anyway, this is the first issue: the number of foreigners has decreased significantly. Then, the second issue: the number of empty houses in Shanghai is increasing. It’s not just empty houses, but even houses with owners are not paying rent. This is a direct result of the situation mentioned above. Many foreigners have also left. But were the people leaving Shanghai the only foreigners? That’s not the case. There are foreigners among those who have left. The poor have left Shanghai. The cost of living is so high. Some have left because they can’t afford to pay for toilet paper. Then there are migrant workers who have no jobs, college students who have no toilet paper, and the rich who are rich are leaving because they have to use their assets. So many people are leaving. That’s why there’s a huge vacancy in Shanghai right now. Whether it’s apartments or Where do they all go, whether they’re merchants or not? They go back to their hometowns. People flock to other cities to return to their hometowns, but no matter which city in China they go to right now, there’s no work. So what happens when they go home ? They either become part-time workers or part-time employees. What’s a “companion worker”? Even if your parents are still alive and you have some money, you work for them . You do their laundry, you clean, you drive them when they go golfing, you take them places, and you work for them. Eventually, you end up saying you’re just ripping them off, and sometimes that’s how it goes. And even in shopping malls, there aren’t any merchants. And even in large shopping malls and popular department stores, many of them are closing down. And even in the successful department stores, unless they’re exceptionally successful, if you go inside, there are often more employees than customers. And what’s driving so many of these stores to close? The economic downturn is one reason, but another is the collapse of offline businesses in China, and the continued rise of online businesses in China . AliExpress, Alibaba, Taimu, Pindoor, Pindoor is Taimu. Then there’s Jingdong, and these guys are now online. And what’s happening online is Naver. Why is Naver used in this situation? What’s that? What sells well online in China ? It’s all about the cheap. Online stores are also competing. Hey, they’re selling 20 bottles of water for 10,000 won. Oh, they’re selling 20 bottles for 10,000 won. Then they’re like, “Hey, we’re selling 22 bottles.” “Hey, we’re selling 23 bottles .” “Hey, we’re selling less than 25.” This price war is happening . Of course, that can be beneficial for ordinary people. But for those who run online businesses, whether it’s smart stores or online stores, it’s like everyone else is dying together. It’s just irrational internal competition, I think. So, Jingdong Pindo, Alibaba, and offline self-employed people hate them. All their successful stores are closing down. Also, there’s this phenomenon. People are getting a ton of loan phone calls from China these days. I saw some people posting on social media, and they say they’ve been getting several a day. These loan messages are from banks or other financial institutions. This isn’t voice phishing. They’re actually urging people to take out loans. Why? I told you before. It’s trending in China right now. Revenge savings. Not revenge spending, but revenge savings. The Chinese government is lowering interest rates and encouraging people to buy houses. Hey, originally, in Beijing, each person could buy one. Hey, we’ll lift that now. Buy if you want. So, the Chinese government is encouraging people to spend money, uh, a little bit . Spend money. Spend money. Even online businesses like these offer loans. They have loan services. Alibaba, Taimu, and other places in China offer loan services. They say they’re like, “Buy first, save later, buy a house.” So, the Chinese government is now saying, “Spend money, spend money.” “Ah, spend money. We need to revitalize the domestic market.” Spend money. But now, young Chinese people can’t go out and say, “We’re against it .” So, they’re rebelling silently. They’re saying, “I won’t spend money no matter what. I’ll save up for retaliation and collect my interest regularly.” “I won’t spend money. What does the domestic market have to do with me? You spend money, you brat.” This is the silent rebellion of China’s current MG generation. Then, savings will increase. If savings increase, what happens to the banks? The interest burden will increase. Then, the banks have to operate to make money to pay interest . Then, they have to use their savings to lend out money, right? That’s how the banks make money. But people who would lend money are already headed for hell, and those who see that don’t lend anymore. “Wow, this is what happens if you take out a loan like this. I told you about that incident earlier . Hey, this is how loans like this can lead to big trouble. You’ve taken a lesson . You’ve learned a lesson. You don’t take out loans. So now, with a lot of debt coming in, we have to pay interest. We have to lend a lot, and we also collect interest and use that to make more loans. So now, banks are starting to do business. ” Please take out a loan. Please take out a loan.” And now, Chinese people are starting to call us a lot for loans. This is another social phenomenon. Oh, and there’s another phenomenon. I won’t talk about Chinese people. Oh, I can’t just talk about Chinese people in general, but people in big cities like Beijing. This is a phenomenon of the upper and lower classes. For example, if you talk about people in the upper and lower classes, the wages are high and the annual salary is high. So, established office workers in Shanghai and Ha, Shanghai, are supposed to travel abroad at least twice a year . There’s a bit of that. These days, it’s a bit of a social media show-off thing. It’s not like we’re all showing off. So, Labor Day , National Day in October, and Labor Day in May were always the seasons for going abroad. Of course, people in China would travel around the country, but in Shanghai, there’s this pride in white-collar workers . It’s a bit like New Yorkers, but I’m a white-collar worker in Shanghai and Ha, so I have to go abroad. And now, when this long vacation season comes around, people start talking to each other, like, ” Hey, where are you going on your trip this time?” “Hey, where are you going this time? ” People chatter a lot, like, “Hey, I heard traveling is good these days. Let’s go on a trip abroad.” “Hey, is there anyone you’re going with this time? Which country are you going to?” They used to talk a lot in May and October, but now that talk has completely disappeared. They don’t travel abroad. Most of them were paid in advance. They must have had a lot of money back then, right? Hey, if such a large financial company had so many paid in advances, wouldn’t other companies have paid in advances? They must have been very lucky. If they were paid in advances, they’d have to tighten their belts . So, where’s the money to go abroad now? These days, we haven’t even mentioned overseas travel, but white-collar workers in the upper and lower classes travel abroad twice a year. But these days, social media—overseas travel, literally, is just social media for friends. Of course, the rich, the second-generation, the famous , they’ll go abroad. But really, among white-collar workers in the upper and lower classes, overseas travel has drastically decreased. This is the phenomenon. And as I mentioned earlier, real estate transactions are down, folks. Real estate transactions are down? I said there were 26,374 real estate transactions in June 2024, right ? This seems like a lot of transactions in the upper and lower classes . To compare this, we need data. That’ll do. Right? Well, in February 2023, there were 19,000 real estate transactions. This year, the lowest price was in February 2024, when there were 6,800 real estate transactions between the upper and lower regions. Compared to then, it’s gone up a lot, but when you compare the population and the number of houses, I don’t think it’s that much. But if you look at the current indicator, there were 6,800 transactions in February 2024, but there were 26,374 transactions in June 2024. That’s about four times the price increase . Four times. The transaction volume has doubled. What’s this signal? Are house prices going up? You should buy a house. Everyone, come down. Especially the Chinese, come down. An increase in house transaction volume isn’t a sign of a rebound unless it leads to rising house prices . But as house transaction volume increases, house prices continue to fall. Is this really being thrown out by people who can’t stand it anymore , or is it just a case of “let’s get rid of our current investments quickly before it falls any further ?” And in real estate right now, you have to sell it cheap to attract buyers. If you sell it for the exact same price, they won’t buy. It’s a falling knife. If it’s a falling knife, it’ll cut you down here, but it’ll cut you down a little further. So right now, the buyer has the upper hand. Real estate transactions aren’t happening. They’re not happening right now. But look in China. Chinese people, pay close attention. There are Chinese influencers, real estate influencers, in China. There are a lot of real estate YouTubers in Korea, too. I see them often. There are a lot of real estate YouTubers, and there must be a lot of real estate influencers in China too. Most of them say, “You guys, buy a house now. The best price in 2024. Now is the best price. Buy now.” Many people say this, and some even say, “You guys , did you know? House prices in China will fivefold by 2035. Buy now. ” There are so many people talking nonsense. Is this a tactic? People who only see this might think, “Wow, this has really fallen a lot. Should I buy now?” What do you guys think? Housing prices will fivefold. I think Shanghai land prices will rise fivefold. In 2035, it’s 2024 now, and in 10 years, Shanghai housing prices will rise fivefold. But of course, housing prices have increased, and with the increased volume, housing prices could rebound slightly. That’s because, whether it’s stocks or real estate, when a crash occurs, it often follows suit. But you have to carefully judge whether this is a true rebound or a dead-cap bounce. It starts slightly and then starts again . That’s why real estate experts always talk about buying on the knees. The reason they say “buy on the knees” is because when these things fall, hit a bottom, go up a bit, and solidify and continue to rise, they won’t fall any further, and that’s when it’s safe. That’s when you should buy on the knees. What if you buy here when it’s slightly up to your ankles and it falls back down again because it’s a dead cap bounce? Anyway, Chinese real estate investors are fanning the flames. And the government is continuing to implement real estate stimulus measures . They’re continuously releasing them, lowering interest rates. Originally, you could buy one per person. How many can you buy in Beijing? One per household in Shanghai. That was the rule. Now, they’ve lifted all that. Buy. We’ll stop restricting it. Hey, if you have the money, buy. They’re in a hurry, right? There are so many cases like this. I brought one real-life example, but I’ve talked about so many today, so I’ll keep this brief. During the COVID-19 pandemic, someone sold their home in their hometown and moved to Shanghai. Even people from other regions could buy houses in Shanghai for a while, so they sold their home in their hometown and moved to Shanghai. Because during the COVID-19 lockdown, the rural areas were more vulnerable to the lockdown and there were a lot of problems. I have a friend who was working in Shanghai during the COVID-19 pandemic . That friend was also under lockdown at the time. Of course, there were various problems in the upper and lower districts, but no major issues. He said that in the apartment complex he was in, the better the apartment complex, the better the delivery and food supply. But the further out you got into the countryside, the more chaotic and chaotic it became, and there were a lot of fights and people rebelling. We showed you a lot of those videos , right? So now, he was like, “Let’s move to the big city. Let’s improve our quality of life.” He sold his home in Shanghai and bought a 1.5 billion won house. Of course, he put down 150 million won and borrowed the rest. He borrowed money, and now he’s working hard to pay off the debt and work, and then suddenly his house was sold. How much did you sell it for? How much did you sell it for? Hey, isn’t that the same size as your house in front of you? It’s the same. How much did it sell for? They say it sold for 1.1 billion won, which is mind-boggling. He just sat there and blew the money he had to save for years, not eating, not wearing clothes, and tightening his belt . He just bought a house. So these days, people are saying things like, “Wow, those who didn’t buy a house are the winners.” “Hey, if you bought a house back then and had a mortgage, you’re going to be in hell right now.” People who didn’t buy a house before COVID were acting like fools. “Hey, if you buy a house now, prices are going up. What are you going to do? Hey, are you going to go broke? Don’t buy a house.” But those who didn’t buy then are the winners now. Those who got on the last train back then are going to hell right now. Now, there’s another phenomenon. Food delivery has gotten faster. In the past , delivery times were often longer than an hour, depending on the distance, but it used to take quite a while. Many people even ordered delivery. But now, it’s guaranteed to arrive within an hour. Sometimes it’s even within 20 minutes. Yes. Delivery speeds have increased. There are probably two reasons for this. One is that the economy is struggling, so people aren’t ordering food anymore , or there are just so many delivery drivers. Incidentally, there are about 6 million food delivery drivers in China right now . 6 million. And I’ll tell you about this phenomenon. Do you agree? Okay, this is the situation in Shanghai and Xia. This is happening in Shanghai and Xia. It’s incredibly easy to catch a taxi. Even luxury cars can be dispatched quickly. In the past, catching a taxi on the way to or from work in Shanghai was a breeze. In Korea, it’s like hailing a taxi with KakaoTalk. In China, there’s something called Tidi Chuxing. You use Tidi Chuxing to hail a car. In the past, you could hail a car with Tidi, but catching a car on the way to or from work was a breeze. And what’s the most impossible thing? Downtown. What, what, what, the streets of bars, clubs, these bustling areas, after partying all night on a Friday or Saturday, catching a taxi on the way home was like a dream come true. Even in Korea these days, catching a taxi in Gangnam or Itaewon on a weekend morning is like a dream come true. It’s the same in China. Shanghai, Shanghai, and Shanghai were similar, but now the traffic is incredibly fast. This can be divided into two categories, right? First, people don’t have money, so they’re saving on taxi fares. They don’t take taxis often. Second, there are many people who, as the name suggests, operate internet taxis or call taxis with their own cars . This is about the workplace. It’s happening at work. Another thing is that office workers have started bringing their own lunches to work. Normally, there are a lot of restaurants near the company, or on the company street, or near many companies. In those cases, there’s usually a line at lunchtime. Usually, you have to wait in line, and if you eat lunch, you usually get a meal. In Shanghai, it’s about 30 yen. 30 yen is really cheap. 30 yen per meal is 6,000 won in Korean currency. 6,000 won is not bad for a meal. But people don’t even eat that 6,000 won meal anymore, and everyone just packs their own lunch. An office worker said that in the past, everyone would go out for lunch and eat with friends, but these days, if you look at the company atmosphere, everyone brings their own lunch and gathers for lunch together. And people’s perceptions have changed. In the past, people didn’t pack lunch because it was too much trouble, but now they think it saves money and is healthy. So, since people can’t even do lunch, the restaurants are closing. And some people say, “I went over the weekend and there was a huge line. Oh, the restaurant was crowded. The restaurants that stayed open during the pandemic must be really good. A really good restaurant would have a line. But now, everyone’s losing out. Korea is the same, you know. The restaurants that survived the pandemic are pretty much guaranteed to be delicious.” The restaurants that were really okay, you know, the ones that weren’t tasty, they all got cleaned up in Korea during the coronavirus pandemic. But the really good restaurants are still there now. Anyway, this was another office worker’s story. And there’s also this story. Oh, this is also a company phenomenon these days. Oh, this is also something office workers feel, but employees above and below them no longer talk about changing jobs. In the past, whenever friends got together, they’d always talk about changing jobs. Hey, isn’t it time to change jobs? Hey, it’s time to double your salary. You know, things like that? Hey, because of Sung Jin-ae. Huh? Hey. These days, people say their salaries have gotten a lot of raises or something, or like, “Hey, you went to this company? You changed jobs?” And then there are people who haven’t yet, like, “Hey, I heard a lot of headhunters in Shanghai contacted me before the coronavirus pandemic . People with some experience and good work ethic, employees of large corporations.” But these days, headhunters aren’t contacting us at all, and employees don’t even talk about things like salary increases, job changes, or career changes anymore. So, I think it’s going to happen this year, 2024. This kind of thing has been happening a lot this year. In the past, if one person was laid off at a company, people would think, “Why are they laying them off?” and feel betrayed by the company and think, “Why did they really have to lay them off?” But these days, it’s not just one or two people being laid off; entire useless departments are disappearing. Even employees who would say, “Hey, I’m here,” when they came to work in the morning, are laid off in the afternoon. This kind of thing happens a lot. But in the past, if I saw something like this, I would think, “This company is going too far,” and “Hey, isn’t this a bit much?” You could complain about this, or you could criticize the company behind their backs, but these days, they don’t say anything. The remaining employees not only don’t accuse the company of being unkind, but they also take a proactive approach, saying, “Oh, I have to work hard this year. Oh, I have to work hard this year and achieve my goals. I have to contribute to the company. ” And so, people’s mindsets change. It’s hard to believe I have a job in these times. People have changed. Companies are struggling, finding a job is like a dream, and people are getting laid off. If you look at videos on Chinese internet platforms like Xiaoshu and Yuxi, you’ll see a lot of people just posting about their daily lives . “How old am I this year? Until last month, I was making 2 million won a month. I thought I’d find a job right after I got laid off. But no matter how hard I searched, no one wanted me. One place contacted me and said they’d only pay 400,000 won a month. There are so many videos like this. One guy said, “I’m 35 this year. And I just got laid off from work.” It’s been sorted out . But I was confident, with this experience and these skills. But I submitted my resume for a year, and I wasn’t getting promoted. You know what the biggest reason is? They say I’m too old. I’m 35, and there are tons of videos of people complaining like this. So, in this day and age, where can I find a job? “Short salary. Okay. The company is tough, so I understand.” “Short salary. Okay. I’ll work harder. I ‘ll work harder and be a help.” “Headhunter, job change. Oh, I’m not changing jobs. I ‘m going to work hard at the company. Oh, what a job change. Double the salary. Oh, I don’t need it. Promotion. It’s okay . It’s okay. Don’t fire me. Don’t. That’s the current atmosphere. Seriously, while preparing for this, I was so, so grateful for the life I’m living these days. Oh, I have something I can do. I’m so grateful. Seriously , these days, reading all kinds of articles about China, I’m taking the time to reflect on my life and be grateful for it. These are some of the really fresh and exciting things happening in Shanghai right now . How are you? That’s all for today’s discussion on the Shang and Ha . How did you enjoy it? So, everyone, the US and China recently began a 90-day truce in their tariff war. Right? Do you still remember? The reaction in China at the time was, “Oh, what a mess. Hey, the US did it. China finally won. Not finally, but China won so badly that they’re numb.” Remember that? Right? In reality, the US is still imposing tariffs of over 50% on Chinese products. At the time, there were a lot of videos on social media saying, “Oh, the US did it again, so now they’re running their factories again. Oh, they got a video conference call from the US, so now they’re restarting their factories .” They were saying, “Oh, now we can breathe again. Now we can run our factories .” But in reality, that wasn’t the case. Back then, they were just painting a rainbow -like picture. Ah, now that factories are restarting , people are earning money they couldn’t before, salaries are recovering, and jobs that were lost are coming back, that was all hopeful. In fact, China’s recovery is very promising. It’s a difficult situation. Despite the lower tariffs, China’s manufacturing sector hasn’t fully recovered. While some companies have resumed production, the overall recovery in demand remains minimal. American companies, in particular, continue to reduce production in China and relocate to countries like Vietnam and India. We don’t know when or how this will happen. Therefore, China’s manufacturing base is weakening. China is losing its manufacturing to other Southeast Asian countries, so now China is actively targeting the world, sending spies to steal technology and develop domestically in areas like semiconductors . Not only in India, but also in neighboring countries like Vietnam, many are now dispersed. So, what is Xi Jinping emphasizing? He recently visited a factory in Henan Province and emphasized the importance of industrial self-reliance. He stated that China must focus on core technology development and innovation to maintain its position as the world’s largest manufacturer . However, the Chinese domestic market is struggling to grow , and the Chinese people, uncertain about the future and eroding trust in their government, are reluctant to spend. People aren’t spending money, saving, and tightening their belts, so the domestic market isn’t functioning. And dumping all those cheap Chinese products overseas has reached a certain limit . Of course, there are differences between industries, but traditional manufacturing, such as textiles, furniture, and toys, has seen a significant drop in operating rates due to decreased orders. On the other hand, new industries like electric vehicle batteries and solar power are relatively active. So, we’re continuing to impose sanctions on Chinese batteries and solar power . Chinese electric vehicles. Oh, and Korea is currently on the offensive against Chinese electric vehicles, right? We need to continue to impose sanctions on these products. Is Korea imposing sanctions on them? Are they subject to tariffs? I heard Chinese electric vehicles are being imported at a 35% discount compared to their cost price? That’s it. I mentioned this before, for example, it costs 30 million won to make a Korean car. Then, China makes one for 25 million won. It’s cheaper than Korea. But to capture the Korean market, they take government subsidies and sell it for 20 million won, even lower than the original price of 25 million won. Or, even lower, 1,500 won. Until people use it. Because it’s cheap. It’s cheap. And with some level of technological advancement, it’s worth it. They make people think it’s worth it. They keep using it. And then they force other factories to close. This is the most common game of chicken China plays. But China’s traditional manufacturing industry is on the verge of collapse, and there’s an indicator of this. What is it? Factories have relocated to many countries, including India and Vietnam. Among them, China used to be called the world’s factory. And among those, which city in China was the most representative of the world’s factories ? That city is Dongguan, as I mentioned earlier. Dongguan. Anyone who has done business in China or been on a business trip to China will know Dongguan. Of course, it was a city most famous for manufacturing, but what made it even more famous, and it was well-known even within China, was its entertainment. There were so many manufacturers and foreign companies there, so money flowed in and out, and people wanted to have fun, so they needed entertainment. The city’s entertainment scene was incredible. It was quite famous for its entertainment, not just in China, but all over the world . I’ve been to China. I know Dongguan, and I know it’s famous for its entertainment . Besides that, what was Dongguan really like ? It was a manufacturing hub in Guangdong Province. It was particularly famous for electronics, shipbuilding, toys, and furniture. Then, from 2000 to 2010, a large number of foreign OEM factories flocked there, acting as three factories . Foxconn was the most prominent one. Foxconn was huge. But now they’ve all moved out. Samsung, Philips, Sony—all those well-known companies had factories there. And then there was this one huge company that had three shoe factories producing about 200 million pairs of shoes a year. Nike, Puma, and other world-famous brands all made shoes there. Luxury brands were there, too, but that shoe factory has since closed. Because international companies had grown there, from parts production to assembly, it was practically a manufacturing base. It was the city of global manufacturing. But now, foreign capital has all left. When the city was booming and money was flowing, foreign capital accounted for 90% of the city’s capital. Now, that 90% has almost completely disappeared. The most significant indicator is the outflow of Japanese companies, with about 800 companies leaving. 800 Japanese companies. It really was a manufacturing city. Even by 2020, its annual GDP was 1 trillion yen. Oh, that’s 200 trillion won in Korean currency. 200 trillion. That’s one city. And it was a city with a floating population of over 10 million. But now, with all the foreign companies withdrawing, and with all the foreign companies and foreign capital leaving, what happens to the companies? They say that factories there are closing at the rate of ten a day . Factories are just falling apart. The biggest factor in the withdrawal of foreign capital is the escalating US-China conflict, which has led to companies from the US, Europe, and Japan relocating to Southeast Asia or their home countries. Next, a significant number of Apple component suppliers have moved to Vietnam and India, and Korean companies have also withdrawn or reduced production en masse in recent years . Samsung Electronics moved to Vietnam, right? Then, due to the global economic downturn and shrinking consumption, major production volumes plummeted . Dongguan’s toy, textile, and factory industries have barely recovered since the COVID-19 pandemic . At the time, when these foreign companies were leaving, especially Foxconn—Foxconn is a Taiwanese company—were all affected. When these companies were leaving, Chinese employees protested and knelt, demanding they stay. But what happens when all those companies leave? The factories become nothing more than ruins, and the employees who commuted there go home and disperse. Then, the various businesses where those employees used to spend their money—restaurants, entertainment venues, clothing stores, and other places—all go up for rent . And now, with fewer people, even houses can’t be rented. In the past , it was hard to even find a rental apartment. Just trying to find an apartment would drive up rent prices like crazy. But now, there are apartments everywhere, offering the first month or two months’ rent, waivers, and all that, and they still can’t rent. Because there are no people. What happens when that happens? When people leave and the commercial district collapses like this, what else could possibly collapse? Even real estate gets devastated. When a factory closes, the surrounding restaurants, convenience stores, and real estate go with it. In a city where the talk of ruin is becoming a reality, and those empty factories. Those factories are paying rent for a fraction of the original rent, but they’re still not paying rent . And it started with the “nine-person shortage” back in the day, and now, what’s this? There are no jobs. It used to be a labor shortage, but now it’s a city where workers can’t find work . And what else is disappearing? Counterculture. After work, people would all have nights out. Drinks, going out, company dinners— all that nightlife has vanished. The lights here go out at night, and the city becomes a ghost town. Everyone, this is the most prosperous manufacturing city in China . If Dongguan is like this, other cities are obvious. Dongguan is a prime example. Looking at the chatroom, I see a lot of our older brothers have been on business trips there. Oh, that flashy counterculture. Back then, I also had a lot of older brothers around me doing business in China, so we’ve all been to Dongguan at least once . So, when you go there, you’re going to be entertained or have fun. When you come back, you’re going to talk about business. When we come back, we’d chat about what kind of entertainment there is, what new things there are, and things like, “Oh, this is something I’ve never heard of in Korea .” But all that’s gone. It’s all gone. And one of the reasons this happened is because of the US-China trade war, but what else? China isn’t as poor as it used to be. Of course, there are still many poor people. Despite the high poverty rate, China is developing. To keep it down, China manipulates its currency and continues to do so, but it’s still going up. Labor costs are rising. Chinese labor costs aren’t as cheap as they used to be. They’re cheap again these days. The domestic demand is collapsing, so wages are falling. But compared to Vietnam and India, the wage advantage has definitely disappeared. And thanks to the strict zero-corona policy, China imposed lockdowns and lockdowns to achieve zero-coronavirus measures during the coronavirus pandemic. That caused a plummet in global trust. Later, they’d go back there to work, only to find themselves in a situation where they’d be left behind. And then there’s this: the exodus of young people. Young people used to go and work, but when you actually go into the factories, some were even considered paradises for female workers. For example, there were companies specializing in hiring women in shoe manufacturing and other manufacturing industries . It was a paradise for finding work. There were always jobs available. It was like Chinese people, thinking, “I need to find work. I need to make some money.” Dongguan was the place they went. Young Chinese people. But even today, thanks to various mass media like dramas, movies, and social media, young people have become more discerning and lazy. They don’t want to do those 3D jobs. “Oh, a factory? Why should I go and work in a factory?” It’s like that. Factories are factories in their own right. Even if you go to a factory and work, you think, “Oh, your future depends on what you do,” but these days, when kids say, “Oh, I don’t want to go to a factory,” they say, “Oh, I’ll still have to work in an office. Why would I go to a factory?” This perception has developed, and even if kids say they can’t make money, they won’t go to a factory. This is why people, young people, are leaving. And there’s a lack of technological competitiveness. Frankly, simple assembly-based manufacturing can be done in any country. So, with labor costs so high, why bother doing it in China? How many places in India or Vietnam could open factories with low labor costs? Those countries are just opening up to attract people to come and set up factories. They’re offering benefits, offering all sorts of things. China is getting a little arrogant and saying, “Oh, we’re the G2. If you want foreign companies to come and work, do it, and if you don’t, get out.” It’s a bit like that. With foreign companies already working there being forced out, who would want to go? What kind of repercussions will there be if Dongguan’s economy collapses like this? Dongguan is a symbolic city for Chinese manufacturing. And with Dongguan collapsing like this, the perception that China is no longer the world’s factory will grow. And that’s the current trend. China can no longer be the world’s factory . Of course, it manufactures various products. There are articles now saying China has developed memory chips, chips, and so on, and they’re making cell phones, electric cars, and batteries. Manufacturing is shifting toward technological and scientific products . Meanwhile, China’s overall import and export statistics are worsening, and the youth employment rate is also rising. You know, China’s college student employment rate. It’s not the youth employment rate, it’s the college student employment rate. Of course, these statistics aren’t released by China, but they’re based on overseas data, which puts the college student employment rate at 10%. For example, this year, 12 million college students in China are now employed. In May , for example, they’re all employed. Ah, now that all the college graduates have graduated, they’re just entering the job market. You’re looking for jobs right now, and out of a million college students, the employment rate is only 10%, 10%. So, if 1.2 million out of 2 million find jobs, what are the remaining 10 million going to do? Oh , the voices we’re hearing from the locals in Dongguan. Yes, there are people in the job market, but there are no factories. Delivery jobs are better than working as a village head. They’re losing that much of their jobs now. Vietnam, India, and Mexico have taken them all. That’s the kind of talk going around. In fact , the videos coming from there are incredible. Oh, should we show you some more footage ? Someone actually filmed these empty factories in Dongguan with a drone. Oh, there’s a video of an interview, but rather than an interview, it’s just footage of people living in Dongguan. Let me show you this. What’s the situation in Dongguan right now? It wasn’t good. Back then , when I came to Dongguan, it was like gold was everywhere. So, there were so many jobs. It was just chaos back then. But now, here in Dongguan, the data screen is showing. The factories are all empty like this. Wherever you go, people are everywhere. Pay attention. Why is Dongguan so empty now? Back in the day, it was a true job paradise. Why is it so empty now? These were all the employees’ dormitories. Even back then, there was a shoe factory in Dongguan, right? That shoe factory. I’ll show you later, but at one point, it had 150,000 employees. It was even more than Foxconn, folks. 150,000 employees. So, that factory. Do you know what’s inside? That factory just became a city. A small city. Literally a small city. Of course, there were restaurants inside. Everything from gyms to karaoke rooms and other things, like movie theaters and all that. They say there used to be a ton of welfare facilities. All that’s gone. Of course, there were convenience stores , but the inside of the factory was just a small city. After work, there were so many things to do inside that you didn’t even have to leave the factory . You could just hang out, eat, wander around, take walks, meet young men and women from the factory, chat, date, that kind of romanticism. The subway was empty, the streets were empty. Ten years ago, that city, with over 10 million people, bustled until 3 a.m. But now, even the streets, including the city center, are deserted. The stores are all sold out, and now there are empty stores. Back in the old days, even if you had money, you couldn’t find a place like this. People in Dongguan are asking, “Where did they go? ” “Oh, look at this. These are the factory buildings.” This place used to be packed. Look at it now. Oh, they’re doing a good job on the building. It’s practically ruined. So there’s a reason it’s called a ghost town . The streets here, the subway entrances, these places used to be bustling with people, but now they’re all empty . There’s a cafe called Luckin Cafe , the famous Chinese Starbucks, but there’s no one there. The famous restaurants are empty. Who would think it was CGI ? No, it’s real footage. This place used to be a famous market, but now it’s like this. It’s not even rented out. Back then, the mainlanders would just rent out these places. They probably own real estate here now. They just put them up for rent and lived there, collecting rent. Now, there’s no rent, so why rent them out? Everything’s empty, and all the stores are just like, ” Wasn’t this place at its peak 20 years ago? The world’s factory. There was even a time when Dongguan had the highest GDP in Guangdong Province.” Hey, there’s a car right there. Wow, what’s this guy doing driving here? There aren’t any factories, restaurants, or accommodations here. Most of the factories here used to be manufacturing factories, and tens of thousands of workers work there. Any factory you go to has tens of thousands of workers. People have no more money to make here, so they’ve all left. Everyone talks about, “Oh, what was it like 10 years ago? Oh, what was it like 20 years ago?” Look at this place now. It’s all deserted. Even 19 years ago, this street was just teeming with people. Driving here was unimaginable. But most of the major stores are gone now. They just have signs. Don’t underestimate these small stores. They used to be worth billions of won. That’s how successful they were. Hey, this guy’s talking about that. Back in the old days, when people talked about shitholes, they were talking about entertainment . You know, there were these women in nightclubs, room salons, backrooms, clubs, and all that kind of stuff . But when you go there, it’s really the main attraction. There were just so many beautiful women, like clouds upon clouds. There were so many beautiful women. But now they’re all gone. I think a lot of my friends are sad because it’s gone. Where on earth have all the people from Dongguan gone? Where have they gone? Oh, I have to check this out. This famous Walking Street in Dongguan is completely closed. This is where people used to flock, but now that all the stores are closed, you can tell it’s just Walking Street. Oh, and the biggest thing is this. This is a place that young people coming to Dongguan or looking for work absolutely had to pass through. This Dongguan train station. This was a must-visit place if you wanted to come to this city. But what’s shocking is that this train station is gone. This train station is gone, and now it’s just flat, like this . It’s become flat. Hey, if a train station just disappears, it means there aren’t enough people. Oh, this is Walking Street, which used to be crowded . Oh, and these are apartments in Dongguan. Yes. If you look up here, it says, “For rent.” They’re renting, but since the rent isn’t going up, they say the first month’s rent or the first two months’ rent is waived. ” This is Jang-an-ji, Jang-an-ga, in Dongguan. This is also a very crowded street, but there are hardly any people walking around right now. Right? They say there are a lot of places where people just live, and the apartments are empty . The apartments are empty and not renting, so there are no jobs . Foreign capital has all been kicked out, so there will be no jobs here. So no one is coming to work. Oh, this playground here is a place of jobs. An office within jobs. Every year, when job-seeking season comes, the students who graduated come here to look for jobs. How’s the street within jobs? Here, in front of this street, at every job opening, there was a long line, waiting to be hired. But so many people had jobs. They said they just found them all jobs. But now, in front of this job opening, there’s only the door open and no one . It’s no exaggeration to say that Dunwa is practically a ghost town right now. There are no people, no cars, it’s just a ghost town. At this point, it’s a ghost town. Hey, if the playground is like this, it means no one is using it. Oh, this is serious. Many of the factories here have all moved to Vietnam, Southeast Asia, India, Mexico, and places like that, so there are no jobs anymore. Wow, these are really goldmines. How can you look at this goldmine industry? Did Xi Jinping just get rid of it? Ha, really, if they had just stopped complaining and continued to develop China’s manufacturing industry like they always did, China would have been in more chaos. Why did they just ruin it with their own hands? I don’t understand. This is the shoe factory, right? Oh, it’s probably Foxconn . All the Taiwanese capital has left. This is the shoe factory. This shoe factory is called Liuzhou. What is it called in English ? Green Green? Anyway, it’s a famous factory. They made shoes for famous brands all over the world, including Nike, here. They produced 200 million pairs of shoes a year . Founded in 1998, they had 60,000 employees at their peak for 30 years . Do you know where Nike shoes were made before Mainland China? Nike shoes were originally made here, Nike. Before Mainland China, it was Mainland Taiwan. Taiwan made a lot of Nike shoes. Vietnam came later. Before that, it was Taiwan. Before China. But while they were making them in Thailand, China kept making them, uh, like that. “Oh, if you want to trade with us like this, you’d better cut off trade with Taiwan.” So what did they do? These Taiwanese factory merchants, these businessmen, invested capital, and Taiwanese businessmen went into China and set up shoe factories. They expanded and expanded these factories, not only manufacturing Nike, but also everything else . That’s when they became “Main China.” These days, there are a lot of “Main Vietnam,” right? There’s also “Main Mexico.” But you know, it was originally “Main Taiwan.” That’s right. There’s also “IDDAS.” Taiwan used to be “Main Taiwan.” Back in the day, Sony made all sorts of things, like the Super Slim tape recorder and the Walkman. Those were “Main Taiwan.” Taiwan used to make all sorts of things. Now, China has taken them all away. And then, Taiwan experienced a major economic downturn. You know what? Even in the 1990s, Taiwan’s economy was much better than Korea’s. Now, Taiwan and Korea are somewhat similar, but honestly, Taiwan’s TSMC is gone. That would mean Taiwan’s GDP would drop by 30%. So, if you take TSMC out of the equation, Taiwan isn’t that wealthy. Of course, Korea might be in a similar situation if you take out big companies like Samsung. But Taiwan used to be a true manufacturing powerhouse. But now China is putting pressure on the world. If you want to trade with us, cut off trade with Taiwan. If you’re going to use cheap factory labor in China, pull everything out of Taiwan. Stop diplomacy with Taiwan. So, countless people around the world cut off diplomatic relations with Taiwan, and all their business flowed to China. As a result, Taiwan entered a long-term recession. Remember those huge Hangu districts in Kaohsiung? Even now, they haven’t recovered, and they’ve been turned into parks. They were originally ruins, but the Taiwanese government, thinking, “What good is leaving them in ruins ?” turned them into parks. It’s a beautiful park, and many people use it as a tourist attraction. Back in the old days, Hangu was so busy that you couldn’t even find a moment to relax. That’s Taiwan . The shoes made here were sold all over the world, in the US, Europe, and everywhere else . Oh, this is the factory. Is this Greenland? Anyway, it’s a company called Liuzhou, and it also closed down. This one held out the longest, but even this one closed down. What happened to these 60,000 employees ? 60,000 jobs were lost, everyone. Oh, they went to Vietnam. They went to Vietnam. Then there will be this many more jobs in Vietnam. Oh, the Vietnamese economy will improve. All that’s left are the memories of the people who used to work here. Oh, there are a lot of videos like this coming up in Dongguan now. What this means is that I’m working in Dongguan, and hey, everyone, I came to Dongguan to look for a job, but there are no jobs. I can’t even eat. Can someone here buy me a meal? SNS is truly daring to trust. This is the largest cooperative in the world, just like people today leave. This is also a cooperative shoe factory. This is a shoe factory, but this is now the Eoyu City Chairman. What was famous about this place was that it only hired women. Oh, so they hired a lot of women. That’s why it was called a women’s paradise . They even had their own hospital within the company with only female employees. Among the factories representing the world and China, it was just one of the best factories . At its peak, it had 150,000 employees. Can you see it? Can you see how big it was? 150,000 when there were the most applicants. This also disappeared. Everyone, everyone, 150,000 people, 150,000 jobs disappeared. But everyone, look at those 150,000 jobs. Think about it. The shoe factory I mentioned earlier had 60,000 people. Here, 150,000 people. A total of 200,000 people lost their jobs. If 200,000 jobs are lost, will it only be your 200,000 jobs? No. These people and their families. The barbershops they go to for haircuts. The restaurants they go to for meals. The restaurants and supermarkets they shop at, all of those jobs are lost. So, while 200,000 people lost their jobs, it could actually be as many as a million. Do you know what I mean? Of course, all the subcontractors are gone, and the commercial districts here are just dying. It must have been so bad that the train station disappeared. Foxconn was the main factory here. But they say they had more employees than Foxconn. 150,000 people, everyone. They were the shoe kings of the world-famous brand Nakbeel Ma Dydal. They started taking them out little by little starting in 2009. You can’t do it all at once . They keep downsizing, cutting employees, shrinking factories, moving them overseas. This is Indonesia. A silent scene. A real person who hasn’t seen a doctor before. This is a Taiwanese company that came from China and moved to a Vietnamese factory. Tens of thousands of workers are riding on a cart. You know where this is? They just took the company out of that shithole and moved it to Vietnam. This is the scene in front of that company in Vietnam. The morning commute scene. These factories went to Vietnam and now they’re building factories there. So, this is the morning commute scene in front of that factory in Vietnam. They took Taiwanese funds and went to Vietnam to set up factories. Now, all those jobs have gone to Vietnam. Why did China do that? What on earth did Season Ping believe ? Just tens of thousands of workers going to work in the morning. Vietnam, too, riding motorcycles to work. In front of the factory. Everyone, this is the economic situation. Everyone, this is the economy working, everyone. This is money. You can see this money circulating. These lumps of money, these lumps of gold. Why did China do that? Can’t Korea’s manufacturing industry come back like this? For now, shipyards are coming back. They say shipyards are booming again these days . And when shipyards were booming, Geoje Island was huge, right? It’s America. In a way, the US can’t afford to use Chinese ships anymore, so it’s not like they’re using them anymore. Then, what about Korea? The shipbuilding industry has returned, and what else could Korea do with manufacturing? Shipyards employ foreign workers, right? They employ foreigners, but Koreans can work there too . They just don’t do it. They say it’s hard and demanding work, so they don’t do it. If Korean youth don’t have jobs, they can go to the shipyards and find work right away. They just don’t do it. Who’s to blame for that? You can’t blame foreign countries for that. That’s their own fault. It’s the wage differential. Labor costs. No matter how cheap you offer labor, daily wages at shipyards and construction sites are still high. They save money when they need it, but they can’t find it there. Right? They just don’t do it because it’s hard. So, if those factories leave, countless jobs will be lost to Vietnam. Right? We hear people saying the Vietnamese economy is booming, right ? Korea needs more factories like this. Uh, uh, ones with good actors and good wages. But that’s the reality for you. It’s the same in Korea these days, right? Did you see that article? In modern America, too. They built a factory. But is it Ulsan, Ulsan? There are far fewer people than the Ulsan factory, and it’s all run by robots. Oh, Hyundai, this is truly the future, in a way. Manufacturing is becoming increasingly automated, and I think that’s the real future. As factories become more automated and people become less necessary, robots will take over. Of course , I understand that labor costs in Korea and Vietnam are incomparable. They’re not comparable, but there will definitely be factories where Koreans can work, where wages match Koreans’, like shipyards or semiconductor factories . To do that, Korea needs to secure the technology, and industrial spies can’t sell Korea’s technology overseas. Only then can Korea manufacture it, establish Korean factories, and attract Koreans. Oh, you guys, we have to defend against China’s constant theft of technology. I told you, we don’t need to go to the trouble of arguing. We need to cooperate where we can, and we can earn from China’s money where we can. But why bother with anti-China and anti-China rhetoric? But you have to visit China. I always say that. You have to defend yourself. Money flowing into China, forces flowing into China, and spies flowing into China. You have to defend yourself. In the past, going to work in that Chinese shithole must have looked like this. Now, it’s moved to Vietnam and become like this. Wow. Hey, there are people walking to work. And these street vendors selling things to these commuters . How can this be? If you look at the current information on the business of the East Coast, it is possible to see the large number of people involved in the transportation of the East Coast. It’s not easy to get to the world, it’s not easy to get to know the road, it’s close to the east, it’s close to business, it’s a business, it’s a business, it’s a business for many people. The situation I’ve heard is that the elderly are struggling to support themselves, and the business model is already very strict, and the business I’ve finished in Dongguan has not been able to find work yet. This person is the harsh reality of Dongguan in 2025. Okay, what’s happening in Dongguan right now in 2025. College students, you can never find a job. And then there are the young people who come to find work, so there are a lot of people who are homeless on the streets. And you guys, this isn’t this woman’s real face. This is a filter. This filter will be erased. Don’t be so curious, you might actually get a heart attack . This isn’t a real person. Anyway, this is how the Chinese manufacturing industry is collapsing. The commercial districts are just like, wow . They’re all empty. This used to be a shopping mall with a lot of people , but now it’s all empty . It’s like they just threw away all their equipment. Hey, why is that store still standing? Hey, are any stores still standing? Is this business even doing well? They keep asking, “Oh, so many people used to come here, what on earth is going on in Donggu now?” What’s going on? What’s going on? You guys, uh, your big brother, uh, Xi Jinping, he’s chasing everyone away?” Oh, there’s a lot of videos on social media these days in China. It’s really serious these days. So, the economic recession, just the recession. You know Guangdong Province, right? Guangdong Province. What are the major cities in Guangdong Province ? Right now, in China, what’s really happening on the streets, and what the Chinese people are literally filming and uploading, the vivid atmosphere of their daily lives, right? Oh, the representative city of Guangdong Province is, well, the capital of Guangdong Province is called Shenghuhui, right? The capital is Guangdong, and then there’s Shenzhen, and then there’s Dongguan, the world’s factory of shit that we talked about last time, and then there’s Woyai . Do you know where Po is? It’s called Foshan, and that ‘s also the name of a city. That’s right. It’s near Guangdong. Next to it is Shenzhen, and Hong Kong is up there. Let’s watch our video first. Oh, this is a car video, but after watching it, I thought, “Hey, Lee Jeong-i, this is a video taken on June 15th.” Everyone, Shenzhen, taken on June 15th. You all know Shenzhen very well, right? What kind of city is Shenzhen? What kind of city is Shenzhen today? It’s a symbol of China’s reform and opening up. When China implemented reform and opening up, the city experienced incredible growth. It’s literally the symbol of China’s reform and opening up. Now, what? It’s a symbol of suffering. Hong Kong has benefited greatly. Hong Kong has benefited from this for a long time, and with reform and opening up, it’s benefited even more. But now, Shenzhen is a symbol of suffering. There are a few problems, but I’ll just point out a few of the biggest ones. Just looking at this , you can tell it’s serious. First, there ‘s a massive downturn in the IT manufacturing industry, and large corporations like Huawei are undergoing restructuring. Next , small and medium-sized businesses are going bankrupt one after another . They’re going bankrupt. I’m hearing rumors about this. (I ‘ll show you a video later, but anyway.) There are problems, and then there’s the real estate market. New apartments are constantly coming up unsold. Real estate in Shenzhen used to be the most expensive in China, but now it’s gone. I don’t know about the real estate market. But China’s real estate market is now in a state of flux, and Xi Jinping is said to have taken a bit of a beating to deflate it. He didn’t provide stimulus. The government clearly has the money. Of course, looking at the overall picture, it’s good to deflate a country’s real estate bubble, but people are dying in the process. Korea’s real estate bubble is no joke. It’s rising like crazy. Since the Lee Jae-myung administration came to power, expectations of a real estate bubble rising with the promise of spending more have driven up not only real estate but also stocks . Small apartments in Seoul are going up by 100 million, 200 million, or even 300 million won in a month. Large apartments are going up by 400 million, 500 million, or even 800 million won in a month. Whether these are real prices or a bubble is unclear, but Korea also needs to deflate this kind of bubble at least once. Oh, and they say that if a bubble grows, it will eventually burst. In any case, China’s real estate bubble is already bursting, and it’s about to burst even more. “Oh, I thought this was the basement, but no, I thought this was the bottom, but there was a basement, and I thought this was the basement, but there was hell.” That’s what people are saying these days. Then there’s the surge in youth unemployment. In the past, Shenzhen, or places like Guangzhou, Guangzhou itself, were places where many young people would go to pursue their dreams, get jobs, work, and burn their youth toward their dreams . Gwangjojeon, Tongguan, and Wushan were representative places. But now, not only are there no people, but there are no jobs, so there’s nothing to do. People go to the city to look for work, but they can’t find any, and they spend all the money they brought. They come back with nowhere to go, and without a job, it’s hard to go home. They keep begging until they find a job, and there’s nowhere to go. And the homeless population is increasing. And the competition rate for the civil service exam in Shenzhen is said to be 1 to 2,000. One in 2,000 people gets a job. The competition for talent is high in Shenzhen, and with the increase in homeless people, what happens? Slums in commercial areas. For example, there’s a place called Huachangbai, once Shenzhen’s representative downtown area. It used to be a representative downtown area, but now it’s completely empty. How empty is it? Oh, I’ll show you a video. It’s best to just watch it. This is from June 15, 2025, so let’s take a look. That tension-filled poop cup, the missionary poop cup, the Xinqianbongjan, it’s all above that, and now all the homeless people are here. Everyone, this is Shenzhen. Shenzhen, one of China’s representative cities. Even men and women sleep out there, regardless of age. The weather is hot here, but it’s not cold. Even if you sleep outside, it’s not like you’re going to say anything. It’s extremely hot here. Everyone, do you think people in Shenzhen, filming this video, can believe it’s Shenzhen? What kind of person is this? Jesus, don’t disturb me. There are people who make music, and you guys have left your clothes here. This is just a public restroom, a dinosaur restroom, where they wash their clothes and leave them like this. Next to it is a real homeless person. Samhap Talent Market. This is also a famous place. All the homeless people here came here looking for work, but couldn’t find a name, and they are homeless without coming and going. You guys, homeless homelessness is the real end of economic recession. If you go any further from here, you’ll starve to death. You shouldn’t go, but homelessness isn’t the real end of economic decline. 15 So, there are cheap lodging facilities here for these people. They just rent out a bed. You can sleep well and it costs 15 yen per night. The cheapest one is 15.5 yen, which is 3,000 won in Korean currency. But you don’t have 3,000 won, so you sleep on the street. 3,000 won. And if you have air conditioning, Wi-Fi, and laundry facilities, as you just saw, it costs 4,000 to 5,000 won per night. But without that money, old people. This is Shenzhen. That’s what Shenzhen looked like just now. Now, someone else just uploaded this. Right now, in China, people from all over the country are reporting on the economic situation in their areas by filming videos like this, or maybe they’re explaining it verbally. There are a lot of citizen journalists in China right now. Let ‘s hear what this person has to say. Oh, and in the chat window, you’re saying, “Oh, she’s pretty,” but that’s not a real person. This isn’t a real person. There’s a filter, a filter, right? That filter, that’s a filter. No one knows what she looks like. We can’t tell. It’s a filter, so let’s not waste our emotions going, “Oh, she’s pretty,” and just focus on the content. Ah, China’s filter technology is truly amazing. Now, let’s hear what she has to say. This guy is talking about Wo. Now, since we’re talking about Wochan, let’s first learn about Woshan. Woshan is Foshan, China . Koreans might not know much about it. Foshan is a mecca for home appliances and building materials in China. The biggest companies in China are Hamei Di, and they’re all located there. But the manufacturing industry there is reportedly collapsing. Hamei Di, the Chinese conglomerate that once fueled the region , is reportedly cutting production significantly due to sluggish domestic demand and declining overseas demand. There’s no mention of small and medium-sized enterprises (SMEs). They’re simply going bankrupt. Then there’s the collapse of the real estate-related industries. Homes and building materials are literally tied to the real estate market. You need three houses to buy building materials, and you need three houses to buy new appliances. But China’s real estate market is in a state of collapse. So these industries are collapsing along with it. They’re suffering the effects of the real estate slump. And now there’s the traditional problem: prices in China aren’t as low as they used to be . So, compared to Vietnam or India, the price competitiveness and industrial competitiveness of this city are completely lacking. Now, even China is expensive. It’s much cheaper to set up factories in Vietnam or India than to manufacture here, so foreign companies and factories are relocating overseas, even Chinese companies . Chinese businesspeople aren’t stupid . Companies all over the world are moving to India, Vietnam, Indonesia, and other countries to build factories. It’s not like Chinese people are saying, “Oh, I love China ! I’ll only build factories in China.” They’re all businessmen, driven by money. “Oh, our unit prices aren’t competitive here.” Then we have to relocate our factories, too. Why? Because we have to compete with the rest of the world. So, Foshan is a city that’s been abandoned, abandoned, and forgotten. Let’s listen to this guy. There’s a subtitle, but there aren’t many people on the streets. There used to be a lot of people, but now it’s hard to see them. The factories are all empty, and the empty houses are useless . People like me who do a lot of outdoor activities are out and about, but the stores and other places that used to be here are now almost deserted. The stores are all empty. Oh, and there seems to be a startup district. Above Hwang, there’s a zone that supports startups, and even that area is losing people. They say no one’s starting a business. Nothing’s working these days. And offline stores, online stores, physical stores—those aren’t even worth mentioning. They say it’s just too hard. And here, Seong Furniture, I think there used to be a huge furniture shopping center. It used to be really crowded, but now it’s just empty. That’s another story. I mentioned it a while ago. Oh, and you guys can tell just by looking at my friends, right? The filter. Oh, this filter is a bit harsh. Oh, man. Okay, this time we’re talking about Dongguan, but I covered it in great detail last time, so I’ll keep it brief today. Dongguan is exactly that: the world’s factory. What’s it called now? A ghost factory. Oh, there’s no one in the factory. The main issues are, um, I mentioned them in detail last time: the exodus of foreign companies. The massive withdrawal of American, Japanese, and Korean companies following the US-China trade war . And then there’s the decline in factory operations. Due to extreme OEM demand, most places are operating at less than 30% capacity. Then, millions of workers lost their jobs, and a significant portion of the workforce was laid off, with some returning to their home countries. Then, social unrest increased. There were more incidents of violence and accidents due to unpaid wages. Recently, there were even cases of factories being set on fire due to unpaid wages. These are the things I covered last time. Right? That city is now a completely ruined city. You know, Dongguan used to be a metropolis with a population of 10 million. Ten million people, you get the idea? Seoul isn’t even 10 million. But it used to be a city with a population of 10 million. But now… Let’s hear what my friend has to say. Back in the day when there were a lot of people, if you went out at 3 AM to eat late-night snacks, people would just swarm you. At 3 AM. Now, everyone’s just saying, “There’s no one here right now.” Where did all the people go? Even now, it’s not over 10 million, but I don’t see about 10 million people. And all the stores are rented out right now . Look, there are so many vacancies. This is Shenzhen. There’s a place called Geodi. It’s in Sang-gu, and next to it is a department store. In these tough times, there are a lot of people coming back, and now there are 20 million people in the industrial area. They’re talking about Dongmencheon, but where the hell did all the people go? Back in the day, when Shenzhen’s population exceeded 10 million, it was incredibly crowded. But now, they say it’s down to 20 million. But there’s no one on the streets. And they say there’s no warships. This guy might not know this because he’s inside the walls, but I’ve already covered this before. China’s population decline is a problem. China isn’t releasing population statistics . When China’s population is revealed, in a way , China’s population is one of its greatest weapons. It’s a national power . But if the population isn’t even 1.4 billion, or if you look at the statistics right now and they say it’s less than 1 billion, then China doesn’t want to be judged globally as being “Wow, China has become incredibly weak. This isn’t the China of the past.” China doesn’t want to be judged like that. So, at some point, they stopped keeping population statistics. But now, considering all the various circumstances, and sociologists looking at various figures , there are people like that. Those people generally say it’s definitely not 1.4 billion. It’s definitely not 1.4 billion. And they’re saying Shenzhen has 20 million people now. Back when it had 10 million, people would go crazy for late-night snacks. But now they’ve announced a population of 20 million, and we’re talking about it. Why aren’t there any people? It’s not 20 million. Well, people who are well-off are fleeing abroad, and people who are poor are fleeing abroad to survive. The middle class is escaping abroad to fit in with their middle class . There were a lot of people who fled abroad, and a lot of people died during the COVID-19 pandemic. A lot of people died during the COVID-19 pandemic, and they don’t even announce that anymore. Every year, various viruses circulate in China. The death rate is staggering, but they don’t announce it. But how do people know? They estimate the death toll by looking at the number of bodies cremated in the crematorium . And they don’t even announce how many people are currently cremating. They don’t even announce that. Just a few years ago, this place was overflowing with people. But when I came back this time, there weren’t many people. It was so unfamiliar. And wow, look at the land. Hey, doesn’t this need some repairs? Oh, there are bricks and stones all cracked on the land, and there’s no money to do this right now. The local government doesn’t have any money. I’ve never imagined that the first developed city has emerged. It’s not Hong Kong, it’s not Guangzhou in India . This is what we’re talking about now. I just told you what kind of city Foshan is , right? We ‘re talking about how badly Foshan’s real estate has collapsed . So, in the past, Foshan was on the verge of joining the trillion-dollar GDP club. When its GDP rose to 4th place, it was the 4th largest industrial city in the entire country, and the Guangzhou-Dongsan Fund was a top real estate company in China. They closed down, right? Then, as I just mentioned, Midea, which is now China’s top electronics company, an electronic product company, an appliance company, yes, it’s there now, but later, all of those companies are going bankrupt in the real estate market, so as I said before , appliances need to move into real estate, but appliance companies have nowhere to go, so they’re just going bankrupt one after another. Okay , everyone, this is Guangzhao. Ah, this is a really, really vivid article, right? Those of you who know Guangzhao’s Xiangji Road will know. This was also a really hot commercial district. It’s called Jibusing, a hot street commercial district, and it was a pretty famous tourist destination in all of China. Back in the day, if you wanted to rent a jeonpo and do business here, the minimum monthly rent was 20 million won. You guys, 20 million won a month in China is crazy. But back in the day, this jeonpo, which is now closed, had a monthly rent of 20 million won. 20 million won is a lot of money in Korean currency . Back then, to get a jeonpo here, you had to pay 20 million won a month in rent . Why? You know, what’s that called? A key money tax? Key money, right? Monthly rent is 20 million won. First, you have to pay tens of millions of won in key money to get here. First, they increase the key money by tens of millions of won, and then the monthly rent is 20 million won. But now, everything is set. This is Gwangjo’s 110. So, it seems like this is still a place to find things like this. People are resting every day, and there are a lot of people looking for work on the streets, but there aren’t many people looking for workers. So, these people looking for work are constantly wandering the streets looking for work. And when they get hungry, they eat cheap food like this on the street. It’s only 500 or 600 won per person in Korean currency . Even if you meet them, it’s not even 1,000 won. They just eat this and fill their stomach. Who knows what’s in it? What kind of flour was used, what kind of oil was used, what kind of sauce was used? They just learn by eating this, and one person comes and looks for one person to work. Dozens of people are standing around like this . Do you see that one person looking for a job? As soon as this job seeker arrives, dozens of people immediately gather around like this, trying to find that one job. And then, there are no jobs. What do you do? You come into a store, a department store, and you turn on the air conditioning. It’s really hot. There are no jobs, so it’s still hot, so you turn up the air conditioning a little bit and then turn it down. When it gets a little cooler, you go outside and you still can’t find a job. You sweat again. Then you go into the store, turn on the air conditioning, and go out again. It’s just the first time. Okay, and let’s take a look here. Everyone, this is Guangdong. The entire Guangdong province is Guangdong, and this is Guangdong Station. Isn’t it Guangdong or Guangzhong? Anyway, this is a train station. For a while, this train station was one of the most crowded train stations. The Guangdong Province, the economic hub, served as the hub of the trains that drove China’s economy . This place was really famous for things like Shenzhen and Guangzhou. So, in a way, the entire Guangdong Province was a place where China’s economy rose to a certain level. But now, this place has fallen. Needless to say, other places are also in decline. No. Elsewhere, there are no people on the streets at the Dongguan Zhengjing World Industrial Complex Market. The stores are all closed. People are leaving the factories. No one is renting houses. That’s the situation, and there are videos that the factory managers have uploaded. Let’s take a look at this too. There’s no one in the factory. The lights are out. There’s no one working in the factory. The lights are out. The lights are out. This place, too, looks like the president of a machine manufacturing company. There’s not even a shadow. He made three machines, but they didn’t sell. I don’t know what kind of machines they are, but anyway, he made these machines, but no one asks about them. They’re just piled up . Even if they bring in machines, they don’t sell them, they just pile up like this . It can’t be done , it can’t be done. It can’t be done. There are no manufacturing companies left in Shenzhen, and they say there are so many companies that have announced one after another that they will go out of business. Oh, by the way , what I’m asking here right now is whether you can make money running a factory . I can’t say that right now because 85% of companies are losing money. 10% are on the brink of a cliff. The remaining 5% are barely making ends meet with a little profit . Oh, what I’m talking about now is that many factories are not working in China, so they have no competitive labor costs. Even Chinese factories are moving to Southeast Asia. So, this person is also running a manufacturing factory, and this person’s concern is that all the factory owners around him are moving their factories to Southeast Asia . This guy is currently staying in China and doing this, and he’s also having a hard time these days. What’s he worried about? Should I protect my country, or should I move my factory overseas to Southeast Asia? He’s thinking about this. There’s even a video of these workers coming to work in groups, but because there aren’t any jobs, they’re all going back to their juniors . Oh, this is Gwangjo, and since there’s no work in Gwangjo, they’re all going back to their juniors. Many of the juniors went to Gwangjo and filled the jobs. Jobs, guys. This is the real reality of factories. Guys, this is the reality of Chinese manufacturing factories. They’re empty right now. This used to be a key commercial area, but not many people are walking around. People, athletes, and players come out . The city is so well-developed, but there are no people. The sky must be barbaric. Are the buildings flashy? Oh, well , back when buildings were booming, China invested heavily in buildings. They built a lot of shiny buildings back then. But do they really have the funds to operate all these buildings? Of course, there must be a few. But no one knows what’s raging inside. But the sky is always gray, this guy is talking. It used to be the largest furniture production center in China. People from all over the world would come here to buy furniture, but now it’s just so-so. Hey, where is this place? This is Shenzhen. This is Shenzhen, too. It’s a place where everyone would line up to rent a store and make money, trying to get a piece of the pie. But now it’s all gone . Hey, little comrades , this place is a bit like Dongdaemun Market in Guangzhou, a market and clothing market. But , oh, it’s also quite deserted, you guys. Despite all this, China has a lot of money. But they don’t invest in people’s livelihoods. China leads the way in robotics innovation, with an average annual growth rate of 23%. China’s robots are amazing. They’re famous worldwide , right? China’s robotics experts are doing quite well, you know. But they’re investing even more here, trying to seize global dominance. Right now, their own people are dying, but they’re investing like crazy in the robotics industry. China’s robotics market is projected to grow at an average annual rate of 23%, from $47 billion in 2024 to $108 billion in 2028. That’s how much the Chinese government is investing . China only invests in what it’s invested in, and it doesn’t care about the people’s livelihoods. Let’s take a look at another example. Where is it? This is Guangdong, too. This is a city in Guangdong Province, and the company says most of its factories have moved to Southeast Asia, so there’s no work to do. These young people who came here to work have no work, no money, so they’re just sleeping on the streets. Oh, and now, because of the US-China trade war, Mainland China has been hit with a lot of sanctions. Naturally, because of those sanctions, other Southeast Asian countries have taken over that market. Even Chinese people who used to run factories in China are now doing it in Southeast Asia. Mainland China is now under sanctions. A lot of Chinese people are going there too. So all the factories in China are disappearing. It’s not just foreign capital that’s leaving. Chinese CEOs doing business in China and Chinese people are going to Southeast Asia to set up factories. So what happens to the Chinese people? It’s just this. Letting people worry is the need to return to the old ways of the People’s Republic of China, and the older generation is now more pessimistic about the future . So, why is this story so specific? Last time, we talked about the fall of Dongguan, but today, we ‘re talking about the fall of the entire Guangdong Province, where Dongguan is located. But why did this place collapse? Guangdong Province, you know, is represented by these four cities: Shenzhen, Guangzhou, Dongguan, and Foshan. These cities have all collapsed. They were the cities that represented this place and drove its economy. These cities have all collapsed. What does that mean? It’s the collapse of Guangdong Province itself. This becomes a vicious cycle. So, what happens when people have no jobs and can’t make money? Consumption shrinks. They don’t spend . What happens when they don’t spend? All the small businesses go bankrupt. And what happens when small businesses go bankrupt? The real estate market slumps. It all adds up . And what does this ultimately lead to? Social depression. China, you know? Korea has one of the highest suicide rates among OECD countries , according to suicide statistics. If you looked at statistics on China, it would be chaos, but there are no statistics on China. What is the actual suicide rate in China? There are no statistics. If there were statistics, it would be chaos. So, you guys, whether it’s a political blockade, a social blockade, or an economic blockade, they’re trying to achieve self-sufficiency. It’s literally just the Communist Party’s mindset, the North Korean mindset, where they often shout about self-sufficiency and try to do everything on their own. This isn’t a world where we have to cooperate to survive. Look at the current global situation. Whether you look at Asia, the Middle East, Europe, or anywhere else, they’re truly opening up globally and cooperating with all countries to move forward. Countries. Those countries are all doing well. But what happens to countries that close their doors and say, “We’ll handle the economic and social lockdowns ourselves. Let’s be self-sufficient?” They can’t survive. The biggest factor in China’s situation was the coronavirus pandemic. During the coronavirus pandemic, I wondered if China really needed to go to such lengths to lock down. And I keep wondering, at the time, the Chinese government was claiming “zero coronavirus.” “Zero coronavirus.” There weren’t a single coronavirus patient in China, so it couldn’t be done. “Zero coronavirus.” They were claiming this for the safety of their citizens. But I don’t think that was true. They were just doing it for the sake of something they were going to do. The Chinese Communist Party cares about the safety of the Chinese people. That’s ridiculous. From my perspective, that’s the biggest reason they’ve been locked down so frantically for three years . First , they’re going to expel all the foreign capital that’s been established in China . We can do that ourselves. If we do, we’ll take it all. Meanwhile, you’ve been running your companies there, making money, taking commissions, and making all your money in China. Hey, you guys, you ‘ve had enough of the coronavirus, telling them to get out . It seems like they’re blockading them until they get out. Wasn’t that the goal? And while there are many companies that have been marginalized, does that mean China can handle it all alone ? No. China’s provinces have already entered a long-term recession. China’s provinces have entered a long-term recession, and now, only the core cities are somewhat functioning . Most of the smaller cities in the provinces, even second- and third-tier cities, are in a long-term recession. There’s talk about Japan within China, the “lost 30 years.” Everyone knows that, right? It’s a bit odd to say China as a whole has entered a “lost 30 years,” but China is so large that more and more provinces are now being called “inner China.” But back then, China was doing so much . And the world gave China so much power, what should I call it? That kind of power. But no one knew China would strike the world in the back of the head like this. They didn’t know China would seize hegemony and go that far. So, the world is learning from China’s actions. We can’t just concentrate everything on one country. Manufacturing and all other industries will now be decentralized. In the past, manufacturing was all about China, but not anymore. There are many countries manufacturing. And as time goes by, labor costs and other factors will fluctuate, and there will be constant fluctuations . Naturally, factories will be built in countries with low labor costs, like Southeast Asia, the Middle East, and Africa. But the Middle East is currently at war, and anyway, everything will be decentralized. The days when China dominated everything alone will be over. But China knows this. Because China knows this so well, it’s trying to take the lead in high-tech industries like robotics, aerospace technology, biology , and various biotech fields . China has to grab hold of that and do it best, and then there’s something for them to do. Manufacturing has become a major focus, so now they want to do everything—semiconductors, electric vehicles, new energy—all of it. They want to do it all . But will the US just let this go? Will Japan just let this go? Will Europe just let this go? They won’t. So now, in this era of competition, China is competing primarily on these industries, so they don’t have time to care about the livelihoods of the Chinese people. So what happens? The Chinese are starting to escape. The rich are leaving, the middle class is leaving, and the poor are leaving. Illegal exodus. Where are they going illegally? Any country where they can work and make a living. Japan, Malaysia, Singapore, Korea, Canada, the US—there are a lot of people coming from Korea right now, everyone. A lot of people are coming from Korea. That’s how the world is turning right now. Everyone, both Iran and China, back in the day, when Iran was a democratic society, pro-American and democratic, and during the period of economic compatibility, their economic development was remarkable. China, too, when it reformed and opened up, joined hands with the world, and China’s economic growth was dazzling. But what do these two countries have in common? What was the reason for Iran’s failure? Naturally, in a liberal democratic society, there’s a wealth gap. Those who work hard become rich, and those who don’t become poor. That’s inevitable . Not everyone can live equally. But when that wealth gap emerged, the people at the bottom rebelled and overthrew the democratic government. Why? We don’t want that. Let’s live equally well. China is the same. But what happened? So, did they become richer after transitioning to socialism? They became poorer. They became poorer. So, the principle is simple. Look at this . In Korea, if you have 10 billion won, you’re rich, right? I admit it. Well, even 10 billion won is a bit vague these days. Hey, let’s do 50 billion won. In Korea, if you have 50 billion won, you’re rich. Of course you’re rich. If you have 50 billion won, you’re rich. But think about it. If everyone, the entire population of South Korea, had 50 billion won, they’d be rich. Then, that 50 billion won would lose its value , and we’d all be the same as zero. There’s no shared wealth. There’s only shared poverty. Iran and China, let’s all live well. Let’s live well together. Let’s eliminate the gap between the rich and the poor. China also advocated shared wealth, and Iran overthrew its democratic government long ago because of the gap between the rich and the poor . What happened as a result? We can’t all live together. The rich will continue to live well. But what about those people? They have to get out. Why do they continue to live in this absurd dictatorship? They have to escape . The wealthy people now call it vested rights. Those who have already achieved a certain level of vested rights can’t be dislodged. Unless they do something strange, their wealth will never fall. If it increases, it increases even more. Do you know why? That 250,000 won we give you is something you’re going to spend anyway. But where does that money end up? It goes to the rich. Why? The rich have businesses that absorb that money and have various means. But ordinary people who receive the 250,000 won just spend it. What are they going to do with it? They just spend it. Oh, you suddenly mentioned Korea. Oh, in the end, the rich get richer. The same goes for Iran and China. Only the privileged remain privileged. The rich continue to get richer. And when the country struggles, the rich continue to be rich. It’s not like it’s hard. It’s the people who are having a hard time. It’s only the people who are having a harder time. Anyway, we ‘ve had another interesting conversation today. The next topic is, oh, the collapse of an industry in China. Various industries in China are collapsing like crazy. Starting with electric vehicles, cities are collapsing, jobs are disappearing, and all sorts of industries are really collapsing. What industry is going to collapse today? As you all know, China is a tourism powerhouse. Because China is so large, it has so many beautiful landscapes, great tourist destinations, and cultural heritage sites, historical sites, and ancient castles. So, if there weren’t food safety issues and such, it would be a great place to travel. But a major part of China’s tourism industry is collapsing. What industry is it? You all know Zhangjiajie, right ? You all know Zhangjiajie, right? It ‘s the setting for Avatar, and it’s also the number one tourist destination for Korean seniors. Right? But right now, that hot tourist destination in Zhangjiajie is said to be the ancient city of Gucheng, the largest in China. Right? Gucheng, Dagucheng, and Dayong are on the verge of bankruptcy . But these ancient cities… These aren’t the kind of ancient ancestral temples that have been passed down since ancient times , but rather artificial castles. Well, you could say, “Well, there are so many beautiful things in Zhangjiajie, so not many people go there.” Well, that’s only natural if business isn’t good, isn’t it? There are over 3,000 artificial castles in China. Of those, nearly half are called Gucheng or Jiugian ancient towns. Nearly half of these ancient towns are either closed, failing, or becoming Yulong cities. Let’s start with Zhangjiajie. Zhangjiajie, a state-owned enterprise that manages all of Zhangjiajie’s tourist attractions, has a Zhangjiajie Travel Group, and underneath it is an artificial castle called Dayong Ancient City. How much did it cost to build? This ancient castle of this scale was built back in the old days when China was experiencing rapid economic growth and had a lot of money. How much did they invest? 2.4 billion won. That’s less than 500 billion won in Korean currency. 510 billion won. But you guys, there are over 3,000 of these. China really did spend a lot of money at one time, didn’t they? Construction began in 2016 with 500 million won, and the historical background is said to be based on the ancient country of Guryongguo, a very unfamiliar country. Okay, since the pilot project in 2021, the accumulated deficit for three and a half years is 547 million yen, or 700 million won (100 million won in UN currency), and the accumulated deficit is 100 million won. As of 2024, 2,300 people are expected to visit in the first six months of the year, averaging 13 people per day. That’s 13 people a day at a tourist attraction that earned 500 million won. Hey, even a cafe made with 5 million won in Korea would have more than 10 people a day. Hey, don’t promote it. This isn’t a promotion issue . The problem is that there are too many of these in China. There are too many. 3,000 . How big is the area of the ancient city walls? 185,000. If I had to compare this to something, what ancient city do you think of in China? It’s the Forbidden City in Beijing. So, I always ask you, “Hey, this is your first trip to China. Where do you recommend?” I recommend Beijing over Shanghai. But Beijing is truly the Forbidden City of China. The Forbidden City in Beijing is literally a place of history. It’s steeped in history, having endured so many hardships, and is a cultural heritage site that truly embodies history. But these ancient castles don’t have any cultural or historical background. They don’t have any story. They’re just built with a lot of money and a lot of prettier stuff . Even Chinese people don’t go to those places. And Chinese people have been to countless ancient castles and the Forbidden City since they were young in China, and they’ve been to a lot of authentic castles with history. So no matter how much money is spent on these castles and how fancy they are, they don’t inspire Chinese people. When foreigners go there, they can say, “Oh, they spent money to make them, so there’s this city. Oh, this is an old city, so it’s well-maintained.” But China banned foreign tourism for a while. Now, they’re rushing to open visa-free programs all over the world, saying, “Come, come, come.” But for a while, it was just foreign companies, foreigners, capital, and foreign tourists who were shut out . I don’t know what they were thinking. Chinese people don’t go. They go to authentic ancient castles. Why go to these artificial castles? And where does most of the profit come from? Of course, the deficit exceeds 100 billion won, and the indefinite deficit of 100 billion won has been constant for three and a half years. But where did most of the profit come from? Still, there must have been profit. Parking lot revenue. In September 2024, the operator of Daeyong Castle finally filed for corporate rehabilitation, and in December, Janggak’s Travel Group also began preemptive restructuring. The assessment is that the collapse is only a matter of time. Now, everyone, there are only 312 authentic historical and cultural sites in China, with a history that has been passed down from ancient times . Oh, and there are a lot of them, right? China is a large country with a long history. But there are only 312 real castles, and 3,000 are artificial. These are all fake castles. Of those, about 1,500 are now ghost towns. Then, in that ancient city, we need to attract commercial buildings, restaurants, entertainment facilities, shopping malls, and hotels. People have to come and stay there. All the houses are empty. Self-employed people are paying rent, saying, “Why is my business failing?” The existing businesses are all closing. And even the ancient cities that are still in operation are experiencing deficits of over 70%. The artificial castles are now listed as non-existent. Songfeng Ancient City in Jinnan, Shandong Province, is currently a field of weeds. The official tourism website for Shudong Ancient City in Anhui Province lists it as closed. Da Yuan Ancient City in Peach Blossom Spring in Hunan Province is quite famous. They invested 1 trillion won here, too. Wait a minute. A 5 billion won church is 1 trillion won, right? 1 trillion won. They invested 1 trillion won there. It ‘s a ghost town now. The base cost is 500 million to 1 trillion won. They say they built 3,000 of them. If they had conserved that money and managed the people’s livelihoods, the Chinese people would be living much better off now . This is a ridiculous investment. But why did they build so many? Well, there’s a place in China called Wuzhen. There’s an ancient castle called Wuzhen, and it’s a real ancient castle. Now, it’s run by a private company , attracting 10 million tourists annually, generating 2.2 billion yen in annual revenue, and generating 800 million yen in profits. If you take the 800 million yen as profit , it’s 160 billion won. The profits are so great. So, when the whole country sees this, they think, “Hey, let’s build a castle too. It’ll generate 160 billion won a year . Let’s build one too.” That’s how it happened. But that Wuzhen is a real ancient castle. And then, since this is profitable, the government is stepping up . The government is stepping in. Let’s foster these unique, high-tech industries. Okay. Let’s have local governments make it, and let’s make it together. Let’s make it and make money together. Hey, if one makes 160 billion won a year, then 10 make 1.6 trillion won. 100 makes 16 trillion won, 1,000 makes 160 trillion won, and 3,000 makes 480 trillion won a year. They’re talking nonsense. And because the government supports this, China has a problem. They say they’re promoting a certain industry in China. Then, local governments are like, “Hey, we have to do that to get the money. We have to do that to get the subsidies from the central government.” They’re just swarming in like a swarm. Whether it works or not, they’re like, “Oh, we’ll do it too. We’ll do it too. We’ll do it too.” That’s why China’s electric car problem is so problematic. Not just electric cars, but also space and aviation, these companies are being supported by the government. So, they’re really trying to develop some kind of technology. Putting that aside, they first create a project. They say they’re going to do it. Whether it produces results or not, they just say they ‘re going to do it. That’s how we get the subsidy. What do we do with the subsidy? We have to produce something, right? We just have to produce it. That’s why China’s current inventory of Chinese cars is so high. The government says, “Oh, my.” And from the local government’s perspective, the central government supports these industries, and they promote them . This will boost GDP. That way, they can look good to the central government without getting punished . They also say, “Hey, this is Gojin, and we’re also promoting cultural tourism .” So, every local government uses the construction of Gojin as a means of urban development . And what do they do? What do they do when they build Gojin? Real estate-related development is involved. Next to Gojin, there’s always an apartment complex. Oh, right, an apartment complex next to Gojin. Oh, not near a train station, right? Not near a forest. It’s a Goseong district. Miss. So, this Goseong is just a pretext, but what’s the essence? It’s land speculation. Land speculation. But what’s good? It’d be great if it succeeded. It’s a rosy picture, isn’t it? But why did it fail? Because the Chinese people aren’t like the old Chinese government you fooled them with. They have brains. First of all, what is it? It’s a fake Goseong. It has no history. It’s just something you imagined . I don’t necessarily think it has anything to do with local culture. There’s no story. There’s no emotion. It’s just something made. It has nothing to do with the region. It’s just a house made in the past. That’s what those people need. And even if you build something like this, once you see it, that’s it. They don’t come from far away. Why bother with that artificial Goseong? And from the Chinese people’s perspective, they’ve seen that kind of Goseong scenery on TV, in dramas, in the news, and so on . It’s not fresh since they were young. And what’s the point? The management content is the same. No matter which old city you go to nationwide, they sell souvenirs like squid, grilled squid, wrist tattoos, traditional costume photo opportunities, cheese, hot dogs, lamb skewers, and mala-tang. The content is the same. Kyung-kyung’s perspective is, “Hey, what’s different from the market right in front of our doorstep? And the design is the real problem.” Experts say the design isn’t what people want to visit. If it were designed like a design park or something, people would come just to see it . It wasn’t planned like a theme park. It’s just ancient buildings, a marketplace, stage performances, a shopping street, a cultural street, and finally, it’s all just a blessing. A blessing. Honestly, the reason we like going to places like Seongsu-dong or Mangwon-dong in Hongdae is because of the buried history. Sensitivity. Where does sensibility come from? It comes from the historical narrative. If you go to Seongsu-dong, it ‘s a factory, but there’s a cultural space with a story. There’s no story. And the small structure was overly ambitious from the start. Even the smallest initial investment was in the hundreds of billions of Korean won. Many projects exceeded the trillions, and even the smallest investment was in the hundreds of billions. So, the returns were below expectations. Recovering the investment was impossible. Financial costs were skyrocketing. Just the Jangak Daeyong Fortress alone costs 50 million annually. How much is the current price? 10 billion won. 10 billion won. And this is an obvious problem. Everyone, there’s oversupply. For example, the limitations have become famous. Honestly, if the government were to support it, they ‘d build one in each of China’s representative tourist destinations or regions. If they’d gone with something like “China’s Top 10 Fortresses,” it wouldn’t have failed like this. 10 Fortresses. Ah, you get the feeling. 10 Fortresses on a large piece of land. And within those 10 Fortresses, there’s something about the history of the region, or something like that, combined together. There are 3,000 of them. 3,000 Great Fortresses. Ah, what, even if you love it as much as 3,000 ? Ah, did you learn from that? Marvel, I love you as much as 3,000. I love you as much as 3,000. 3,000 castles. Oh, were you trying to catch up with Marvel ? The number of tourists has stayed the same for 10 years. And Chinese tourists are going less and less. I’m sick of it. The competition is getting fiercer. Should we watch a video? Anyone can tell you have to go. Let’s see what they have to say. There are really a lot of castles in China right now, right? No. There are really, really a lot. Over 3,000. 1,500 of them have filed for bankruptcy? What are they saying? But these castles aren’t really ancient castles. How ancient are these castles? They were built last week. They were built last year. Castles made with tanks are collapsing like crazy. Look. Your content is the same. Every fan comment says, “Where are you going?” Oh, I miss you in Shenzhen. I miss you in Nanjing. I miss you in . I miss you in Chongqing. It’s the same. Ah, it’s like this now. Look at you guys. Okay, the grass is just growing , and this person predicts that about 80% of these artificial castles will collapse . They’re all ruined. Even the top 1% of tourist destinations in China are currently running at a loss, and this newly built castle is definitely going to collapse. Oh, so you guys, this is a big deal. There are so many castles. They’ve all cost hundreds of billions and trillions . They’re called bankruptcy reorganization zones. They’re not disaster zones. Now , tourists are disappearing en masse. In Janggak, this Daeyong Castle, I mentioned earlier. It cost 500 billion won to build, and they only saw about 20 tickets a year. Oh, it’s crazy money right now. It’s a huge deficit. Look, look. They built it on such a large scale, but there are no people. How are these castle projects that the Chinese government pushed for now? Got it? You’ve heard of the Goseong Weigungcheong Ramweilou, right? They call them ghost houses. These are ghost castles. 24-minute grand year. The 500 million I mentioned earlier, the Daeyong Castle, is losing 100 million won a year. It keeps losing money. There are 198 stores, but only five are rented out. Hey, the people renting these five are crazy. Out of the 98 stores, only five are rented out. They say they can be used as movie sets later. You guys who made these into Chinese movie sets, I’ll tell you something. I said there are 3,000 of these artificial castles in China. But if you include the castles made for movie filming, there are 4,000 from what I’ve seen. There are already too many movie sets. Since ancient times. Even. There’s a place that was made exactly like the Forbidden City for movie filming . If you look at historical martial arts movies and stuff, there’s a war going on in the Forbidden City, and the emperor comes down from there and fights and stuff . You can’t film that in the actual Forbidden City. They actually recreated the Forbidden City. Hero was also filmed there. Right. Oh, you’re good. Hero is a prime example. It was filmed there . Crouching Tiger, Hidden Dragon. The ancient emperor of China appears first. The Forbidden City has to appear. They filmed it there. The tourists who live in the surrounding area just bring their dogs and walk them around, that’s all. There are no customers, no shops, no performances, no people, and in some places, they even say, “Don’t go into this danger zone,” and they put up pantries like this, saying, “It’s a danger zone,” and telling you not to come near . Why are there no people? There is no commerciality. If you go in, all you can see are just stores. Why would you go see that? There is no character. It’s just a heavily commercialized place, there is nothing to see. 500 million people, this is worth 500 billion won. There are no people. It’s a siege. It’s not just a castle, it’s a siege, an empty castle. Oh, all the doors are locked. Where is this? Where is this Jangwonseong? Oh, this is another castle. But it’s not like it’s going well. Where is the center of our family? Why do we have to make a big city? Why don’t we make a big city? Why don’t we make a jumper? And why don’t we make a big city? What Fang Jian said is exactly like what I was talking about earlier. So, there are original castles that have real history, and people go there. But there are only 312 places that are recognized as such. But did you know that? In the 20 years I’ve lived in China, I’ve been to less than ten castles. Maybe four or five? Less than ten. But my Chinese friends are the same. What, you’re Chinese? Oh, as a Chinese, I should visit all the castles in China . I think so. Hey, my friends are just like me. There are a lot more places I haven’t been to . I’ve probably traveled to more parts of China than my Chinese friends . But what’s really funny is that there’s this castle here. But right next to the castle is an apartment. What the heck is this? They built the castle to create a different atmosphere, and if they build an apartment next to the castle, it’s not part of the castle district. Hey, the people who buy these apartments probably come to the castle, take a walk, and think how nice it is . Neither of them are selling. In China, a fever has started to rise in various places to build ancient towns using imitation techniques. In March 2016, the government started pushing for this issue. From then on , starting in 2016, people started building old towns here and there. Usually, they didn’t get permission and it didn’t take long. It didn’t even take three months. There was no one there, so they just told them to build it . Oh, they just built it. There’s no concept, it’s just a lot of money. 300 million won is equivalent to 240 million won for 22 soccer fields. It’s the size I mentioned earlier. If you add it up, it’s equivalent to 22 soccer fields. Two soccer fields are in the bustling city. These businesses have been closed for a year, and the pitiful amount of money they need to pay for parking is low. Pay attention to this point. It’s a major installation point in Nan Province and a major industrial complex. From a foreigner’s perspective, it’s cool. From a Chinese perspective, it’s like, “Oh my, I’ve seen this on TV since I was little. How tired would you be? Honestly, let’s say foreigners work nearby. Let’s go once. Should I go twice? Let’s go once and say, “Oh, it’s good.” Hey, since when has this city been around? Oh, this was built a year ago. Oh, it just happened. Oh, that’s the end. How many times do you think Chinese people visit the Forbidden City, China’s most famous ancient castle, in their lifetime ? The Forbidden City. I’ve lived in China for about 20 years , and I’ve seen the Forbidden City about five times. I think I’ve been there about five times. Uh. Five times. And one of those times was when I started broadcasting and left to film content. So, I’ve actually been there four times. Four times. Where is this place? Okay. Let’s take a look. Wow, you guys, can you see the scale? Anyway, I acknowledge China’s scale. I acknowledge it, but couldn’t they have done it a little smarter? 00 Where is it? Here is 1 trillion won. The hotels in the commercial district next to this place are all over the city. There are all kinds of old empty roads in the city. When I think about it, I get a feeling that there is something to be excited about. It is on the old and foreign horse road. There is only one. Look at the size. Wow, everyone, look at the size. Hey, but seriously, they are building apartments like this next to the Wi-Fi? Wow, this really ruins the mood. This is Daohua Yuan. Oh, everyone, this is Taohua Yuan. It’s called Taohua Garden. Oh, it’s really famous in China . But there’s no one. Taohua. This Wagojin is famous in China, but there are no people. The people and the government invested together to make it, but now all the investors have just lost their money. What do you call this? It’s just money. Peach Blossom Garden has a lot of flowers. They say Itaohua Garden also has houses. They say they sell old houses that are like villas . Someone spent 600 million won here and bought a house. But now, what the heck, no one buys this. It’s just a burden . And they say there’s a group chat with that person. That Chinese “Weiche” chatroom. People who are going through similar things. So, there’s a chatroom with 350 people who invested and bought buildings but aren’t making any money . Aren’t they all individuals? Wow, public housing investment. They were talking about buying commercial properties or villas, but most of them just threw their money away. There was even one person who just threw their money away. Some even went bankrupt. After Gosung was built like this, it became a fortress. They say there wasn’t a fortress here originally. It was just forcibly built. Oh, someone came to see this and said they were the only ones there. They said they were the only ones there. Hey, everyone, you invested 500 million won in one Gojindang, and that’s 3,000. If you count one trillion won and one trillion won, then 30 trillion won per one. Even if it’s 500 million, that’s 1,500 trillion, you guys. 1,500 trillion is 1 quadrillion a year for the US defense. These guys spent a trillion on Gosung. This whole money-grubbing and fussing about fighting the US and all that stuff is just ridiculous. Seriously. And you guys, do you know what’s really important? This isn’t in the article, but as someone who understands China’s industrial dynamics, look at it this way. Let’s say they spend 1 trillion on one project. 1 trillion. How much do they earn here? How much of the 1 trillion people involved earn? Even if you underestimate it, wouldn’t they at least earn half? Half is in China. I forgot which movie it was, but I still remember that scene because it was so funny. There was a movie that satirized this kind of multi-level marketing scheme in China . What kind of a system is this? A rich person is rich. Ah, they go abroad and make a lot of money and are international businessmen. He’s Chinese, and he made a lot of money abroad. He came back to China and he’s going to build a mansion that’s just right for him, like a palace. So, he asked around and found someone. He said he had a reputation for building huge projects, and he was introduced to him like this. So, he came and said, “Hey, boss, you’re building a house.” The boss said, ” The budget is 100 billion won. I’ll give you 100 billion won, so you have to ride a lot of ships, what’s the deal?” Build him something that suits him. He introduced me as a friend, and said, “I trust you. 100 billion won. Okay.” So, “Okay, boss, I’ll build it for you. ” Okay. After parting ways with the boss, I turned around and immediately called him and said, “Hey, come out. Who’s here?” Hey, you have a project to work on. Hey, I got a huge offer this time. This is this. This is this. I have to build a really huge, really palace-like villa . Hey, this is big. It’s 50 billion won. Can you do it ?” Hey, you should make a name for yourself while making this. Okay. He said, “Miss, leave it to me, hyung. I ‘ll make you something worth 50 billion won.” Okay, 50 billion won. As soon as he turns around, call him again. Hey, it’s a big project. Hey, it’s a meeting. Come out. Everyone’s out. Hey, should n’t you enlist now? Huh? You should make a name for yourself as an architect now. Hey, there’s a big project. 10 billion won, he said. Wow, 10 billion won, hyung. 10 billion won? To me? Hey, hyung, later on, it really went up to 100 billion won. Of course, it’s a movie, so there are some exaggerations, but that movie was a huge hit in China. Chinese people laughed so hard when they saw it and sympathized so much. Mr. Failure. Okay, another old man came to visit Goseong again, and Mr. Kim said, “Hey, guys, the weeds have grown this high.” Guys, how many years has this been going on? How many years has this been going on for these weeds to grow this high? Look at the stairs. Guys, look at the stairs. They’re rusting and what’s going on now? How much did Tahwa Jang Changdeok City spend? 1 trillion This is the largest in scale. This is the largest in the country. Well, if you look at the aerial shot I took earlier, it was incredible. It ‘s the largest. It’s the largest, but what’s the biggest? It’s the quietest. It’s the largest and the quietest ancient city in China. Not a single store is open. There’s a bar here, but the bar won’t open . There’s also a bar. There’s never a single commercial establishment. What kind of Goseong commercial establishment is this? This is just a Goseong ghost town. Where is this again? This is another world. On the left is Changsha, rotten beans, on the right is a big fish head with an iron plate, and a small commodity head. I’m in a place like this. Someone said that they went to Goseong and I thought I went to the same place last time. Why? Because the items they sell are the same and the content is the same. They said they thought they went to the same place . There are so many Goseongs, everyone. Even the name is similar. There are so many. Where is this place? I’m seeing this for the first time at customs. This is the first time I’ve heard of it. This is a deal in the market. Look at the scale of this too. Everyone, it’s really pretty. It’s really pretty when you take an aerial shot. But now, the person who’s talking is saying that it’s so quiet that it’s a little scary. Hey, if you look at it like this, it’s really hey, who broke in? Someone dug a hole in this place. I don’t see many people. There are only closed stores. The people who invested here are probably losing a lot of money. They’re talking about how much they’ve lost and are going broke. Oh, this, this. This apartment complex with the concept of a castle. The apartments themselves are based on the concept of a castle. Construction has stopped, and the people who bought them have lost their money, and it ‘s just a ghost town. Can you believe it? There’s no one here right now. They’re just doing a good job. Oh, it’s a complete ghost town, right? 3,500 square meters, so you can’t really tell how big it is . Anyway, from the aerial view, this is just a really large apartment complex. Wow, this is truly spectacular from afar. Up close, it’s just a ghost town, and it’s scary. I’m skeptical. Most of them are just copy-and-paste castles. To be honest, we don’t see castles like this often, so when we do, we’re like, “Wow, this is amazing.” “Wow, the scale is incredible .” But if you keep looking, it’s similar, right? How boring it must be for a Chinese person . It’s similar. Cool. Okay. I admit it’s similar . They’re making a parking lot like this and then making a fortress. Hey, what is this? It looks like they forcibly squeezed it into some rural area. Who’s coming? Oh, there’s nothing around here. Even the surrounding fields are rice paddies. Can you see the food? The smallest one is in the hundreds of billions. Even the smallest investment is in the hundreds of billions . The largest is in the trillions. There are 3,000 of these fortresses, you guys. 3,000. Half have already filed for bankruptcy, are ghost towns, and more are on the verge of bankruptcy. As the experts said earlier, up to 80% are expected to collapse. Whose money is this? It’s money taken from the pockets of the Chinese people, calculated with a slew of calculations. The Chinese people’s lives are getting worse . Just looking at this, you can see how hard it is for the Chinese people right now. What happened to the people who invested all their money here? They’re just like, “Oh, I’m rich. I invested a lot of money in this. So I guess it’ll hold up for a while. Oh, I blew that one.” But really, wow, this is a government-backed project. If I buy a store here and do business here, we’ll do really well. And I invested my entire life’s savings, my entire family’s savings. What happened to those people? They’re cowards, you all. China is really like that. Countless China experts and doctors are saying this, but what can we learn from this? China is collapsing on its own without anyone interfering with it. Even without the US sanctions, this is China’s own sanctions. Oh, it’s not like the US sanctions caused China to become like this. They’re collapsing on their own. So, that’s why. Many Chinese people are rushing to pack up their money and head overseas. That’s all I have for today’s China-related news. I hope you enjoyed my broadcast even a little. I hope it was helpful. It was also a good way to kill time. Then, please subscribe. If you don’t subscribe after seeing me today, you might not see me tomorrow. Please subscribe and watch lots of fun videos . We live in a time when we absolutely must understand China. Only by understanding China can we proactively defend ourselves against China’s subversive forces trying to take over Korea .
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