'13 Hours a Day for 4 Million Won': Seoul's 10,000 Coffee Shops Face Wave of Closures

The New York Times has spotlighted Korea's overheated coffee shop market.

In an article titled "South Korea Has a Coffee Shop Problem" published on January 3 (local time), the NYT examined Koreans' love of coffee alongside the fierce competition plaguing the café industry.

Ko Jang-soo, who runs a café in Seoul's Sillim-dong, told the NYT, "If I could start again, I would do anything other than open a café." On a weekday morning, his café sat empty. More than 50 competing coffee shops operate in the immediate vicinity. When Ko opened his café there in 2016, only two other cafés were nearby.

The NYT analyzed that Korea's café density rivals that of Paris. The number of cafés nationwide has doubled over the past six years. Korea, with a population of 51 million, now has 80,000 cafés, with one-eighth of them—10,000—concentrated in Seoul. They are particularly dense in Gangnam, Jongno, and Mapo. "Walk down streets in Seoul and you're met with a parade of cafés on either side," the NYT wrote.

Korean coffee consumption has already surpassed rice consumption. Since Starbucks entered the market in the late 1990s, iced Americano has become the unofficial national beverage. "Many Koreans live in small apartments with their families and find it hard to invite people over. Cafés are spaces where couples spend time, friends chat, and students study," the NYT explained.

The problem lies in the illusion surrounding café entrepreneurship. The NYT pointed out that Koreans seeking escape from a stagnant job market and harsh office culture view cafés as a path to independence. Cafés cost less to open than bars or restaurants and require no special certification. Watching crowds flock to popular spots on social media creates the illusion that money comes easily.

Ko, who also serves as chairman of the National Coffee Shop Owners' Cooperative, said, "People see long lines outside other cafés and think running one is simple. But the work is hard and the profits are slim." Choi Sun-wook, a consultant who has helped open more than 1,000 cafés, said, "Most people jumping into this business are unprepared. They have no experience running a coffee shop, or at most worked part-time as a barista." He added, "Many owners generate monthly revenue of around 4 million won ($2,900), which barely exceeds minimum wage—and that's after working more than 13 hours a day."

Choi said, "Many coffee shops close after just one or two years, as soon as their first lease expires. The lifespan of coffee shops is getting shorter." The NYT added that thousands of cafés open each year while just as many close.

Recently, warnings against café entrepreneurship have emerged. Chef Kwon Sung-jun, winner of Netflix's "Culinary Class Wars," reflected on his failed café business on the program and advised people not to open cafés. "How long they can hold on is anyone's guess," the NYT wrote, forecasting an uncertain future for Korea's café market.