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Immigration Crackdowns and Protests Shrink LA and Korean-American Economies

2025-06-13 (금) 09:49:03
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▶ Customers Reduce or Cancel Visits to Businesses Amid Safety Concerns

▶ Sharp Decline in Hispanic Consumer Spending

Immigration Crackdowns and Protests Shrink LA and Korean-American Economies

댄 오브라이언 컬버시티 시장이 11일 문을 닫은 한 카워시에서 발언하고 있다. 이 카워시는 불체자로 의심되는 직원들이 다수 체포되며 영업을 중단했다. [로이터]

A Korean-American resident of Buena Park, Mr. Kim, along with his parents and sister’s family, postponed a planned trip to Los Angeles this week.
Kim explained, “News in Korea has heavily covered the immigration crackdowns and related protests across the U.S., including LA. We felt it could be risky to visit LA tourist spots under these circumstances, so we postponed our trip to the fall.”

According to the Korean-American travel industry, some inbound travelers have delayed their Southern California visits or redirected them to other regions.
As the Trump administration’s aggressive immigration enforcement and violent counter-protests persist, both LA and the Korean-American community are facing economic contraction due to reduced business patronage, declining consumer spending, and canceled tourist visits.

While violent protests briefly subsided, on the night of June 11, hundreds of protesters entered LA’s Koreatown, forcing some Korean businesses to close abruptly. This escalation has heightened anxiety among Korean business owners and residents.
LA and Southern California have some of the highest populations and workforce proportions of Hispanic and immigrant communities in the U.S. These groups dominate industries like apparel manufacturing, construction, food service, car washes, and other labor-intensive sectors. Beyond their role as workers, they form a significant consumer market.


On June 12, The Wall Street Journal (WSJ) reported that intense immigration crackdowns have led Hispanic consumers to limit outings and reduce spending, causing major consumer goods companies in Southern California and nationwide to face revenue declines.

A report last month by market research firm Kantar revealed that Hispanic consumers’ first-quarter in-store visits dropped significantly year-over-year at retail chains like Walgreens (-10.5%), Home Depot (-8.7%), and Dollar General (-6.1%).
In LA’s downtown, including the Jobber Market, a city-imposed nighttime curfew has left streets nearly deserted even during the day, resembling a “ghost town.”

Koreatown businesses are also seeing revenue hits as customers cancel group dining and events. A Korean economic organization canceled a business mixer scheduled for June 12 at a Koreatown restaurant, leaving the business to absorb significant losses. Another Korean restaurant owner noted, “Evening customer visits have noticeably dropped, likely due to concerns about safety.”

Korean businesses in apparel, textiles, food service, car washes, moving, and construction—many employing Hispanic and undocumented workers—are struggling as employees, fearing raids, avoid work.

On June 11, a Culver City car wash was forced to halt operations after immigration agents raided the business and detained workers suspected of being undocumented.
The Los Angeles Times highlighted that LA’s economy, heavily reliant on immigrant labor, is taking a significant hit from the crackdowns and protests. Economists warn that worker absences could delay construction projects, overwhelm moving companies, and halt apparel production lines.

LA and Southern California, home to the nation’s largest tourism industry, could see reduced tourist spending due to safety concerns, leading to lower government revenue and higher unemployment.
The income decline among immigrants is expected to reduce consumer spending, shrinking the overall economic pie for LA.

By Hwandong Cho, Reporter

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