Halloween marketing has all but disappeared in South Korea after last year’s crowd crush disaster that occurred in a small alley in Itaewon, central Seoul.

Most large retailers have canceled or minimized their Halloween events, and those that are continuing to sell Halloween goods face a mixed reaction.

According to retail industry insiders, the industry is minimizing sales of Halloween-themed products this year, with the event still seen as associated with last year's tragedy that left 159 dead.

“It has been only a year since the tragic crowd crush took place. Considering public sentiment, we have decided not to promote Halloween-themed products this year and drastically reduce the number of products from last year,” an official from a hypermarket said.

The tragic Halloween crowd crush occurred on the night of Oct. 29, 2022, after people in the streets became concentrated in a small alleyway in Itaewon. Most victims were young people out to enjoy Halloween festivities at the famous nightlife district, many for the first time since COVID-19 restrictions were lifted.

Until the incident, Halloween was widely seen as an annual sales opportunity, with themed promotions in recent years as the holiday had grown in popularity, especially among younger Koreans.

“The holiday, which came from Western culture, had become a cool fad among millennials and Gen Z in Korea in recent years. They had enjoyed the holiday by buying skeleton-themed items or dressing up in themed costumes and uploading the pictures on social media,” a public relations official from a convenience store chain said.

Halloween had become one of the most significant retail events of the year, along with Seollal, Valentine's Day, its sequel White Day, Chuseok, Pepero Day and Christmas, the official added.

Retailers here were promoting Halloween-themed products last year as sales of the holiday merchandise rose ahead of the country's first Halloween without social distancing in three years.

Convenience store chain CU had planned to hold a promotion for free delivery of Halloween merchandise. Emart was planning on distributing coupons for discounts on chocolate and candy and operating a special pop-up at branches with a "Zombie Town" concept.

Lotte Property and Development, the shopping mall developer under retail giant Lotte Group, also had planned to celebrate Halloween last year by putting out miniature Halloween replicas of a giant yellow rubber duck, a signature feature in front of Lotte World Tower in Jamsil, during the Halloween holidays.

However, these plans were abruptly canceled after Oct. 29 last year out of respect for the victims of the Itaewon tragedy.

This year, most retailers said they would instead focus their marketing efforts on Nov. 11, known as Pepero Day in Korea, and the Christmas holiday season, since those are the two other major sales events remaining this year.

Large retailers such as Lotte and Shinsegae are set to roll out big back-to-back sales events in November.

Amusement parks, including Everland and Lotte World, said they did not prepare the usual parades, costume parties, music showcases and cultural performances associated with Halloween. Food and beverage companies such as Starbucks Korea and A Twosome Place also have decided not to release Halloween-specific products.

“The industrywide efforts to elevate Halloween to an annual sales event with themed promotions and events will be significantly curtailed for the time being, since Halloween will be associated with the deadly incident for years to come,” the convenience store official added.

But Korea's largest discount store chain, Daiso, has faced controversy for continuing to display Halloween-themed products, such as pumpkin-shaped Halloween lamps, at every store. This has led to fierce criticism of insensitivity.

“We could not stop selling those items since many customers who come to our shop are still looking for them, primarily for throwing Halloween parties at home. But we do not promote our Halloween products at all, and we are selling about 40 percent fewer products than last year,” a Daiso official said in response to the criticism.

Meanwhile, small retail stores in the Itaewon area are still struggling with declining sales.

Although most businesses have largely seen trade return, some small businesses in the area, such as clothes shops, are still struggling.

“The bars or restaurants that used to draw large crowds have recovered faster, while other stores, such as souvenir shops, tailors and vintage clothing shops like ours, still struggle to attract customers,” said Shin Ki-chil, an owner of a vintage shop near Itaewon Station.

Another owner of a street stall selling clothes near the station said they are the ones "bearing hardships."

“After the incident, I have many days that I can’t sell even one item,” said Lee Hyang-soon.

“That shop selling plus-sized clothes has been here for more than 40 years, but the owner recently has decided to sell his business since his customers never came back after the incident,” Lee added, pointing to the “for rent” sign at the store next door.