Koreans licensed in beauty skills are trying to save money on business expenses by opening beauty shops in their homes. Now, they are facing huge fines, losing their licenses, and receiving demands for payment of their income tax. The industry, worried about these developments, is almost in a state of emergency.
Ms. K, a licensed beautician, had installed permanent equipment and stocked chemicals at her home in Flushing, where she took care of clients. But neighbors alerted the New York State Department of Environmental Protection as well as the New York City Department of Sanitation. The neighbors had become suspicious when they observed a steady stream of visitors to Mrs. K.'s house. Fearing that she might be involved in illicit drug trafficking, they notified the local police, who redirected the investigation to the proper agencies. According to statements by the neighbors, the state agency came out, revoked Mrs. K.'s license, and imposed stiff fines for both chemical storage in a non-sanctioned location, and illegal business proceedings, since her home was not registered as a beauty salon.
Faced with the long-term economic recession, beauticians, who are out of work or not on duty at beauty salons, are trying to earn extra income in hopes of opening salons in their homes.
According to one salon owner, it is very likely that many beauticians have been investigated by state or city agencies, but have not shared this information with the Korean Beauty Salon Business Association. The exact number of beauticians with non-registered salons who have lost their licenses is unknown. What is known, and what seems to explain the rise in non-registered home salons, is that sales revenue has dropped by as much as 30 percent, leaving many beauticians with a reduced income and higher costs, as prices for equipment and maintenance rise.
With beauticians wanting to earn extra money and customers seeking the lowest prices, non-registered home salons are sprouting up everywhere. This perhaps lucrative – but illegal – situation creates another, more dangerous problem: that of the storage of chemicals and chemical waste. State and city agencies cite the real and present danger of environmental pollution.
Ms. Mi-kyong Huh, the chairwoman of the Korean-American Beautician Association said, "Customers must know that in such poorly outfitted places of business there is neither a guarantee of quality nor a warranty for service. Ultimately, the customer might suffer when problems of safety or poor service arise." She added, with some concern, "Illegal businesses cause trouble for the legal salons; sales income drops even further for the legally registered salons, and the increased investigations of illegal Korean salons by state and city agencies can spill over to the properly registered businesses."
Meanwhile, the staff members of the Korean-American Beautician Association recently held an emergency meeting to consider countermeasures against the city's illegally run beauty salons.
