More Koreans choose frugal dining options amid tough economy

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More Koreans choose frugal dining options amid tough economy

Published: 09 Apr. 2025, 21:47

Audio report: written by reporters, read by AI

A line to enter a Korean buffet restaurant in Jongno District, central Seoul stretchs from the basement to the ground floor on April 8. [HWANG SOO-YEON]

As rising food prices strain household budgets, more Koreans are embracing “recession-style consumption” by turning to cheap buffets, discounted groceries and at-home drinking in a growing shift toward frugal living.

At 11:30 a.m. on Tuesday, a Korean buffet restaurant in Jongno District, central Seoul, was packed with office workers lining up outside the door. For 6,500 won ($4.39), diners at the restaurant can enjoy unlimited servings of rice, soup and four to five side dishes.

An office worker surnamed Hwang, 49, who walked 20 minutes from his office to eat there, said he comes three times a week.

“It costs the same as our company cafeteria, but it tastes better,” Hwang said. “It’s a 40-minute round trip, but I count it as exercise.”

After 1 p.m., the crowd shifted to older diners in their 60s and 70s.

“Most restaurants and cafes cost over 10,000 won per person now, which is a burden,” said Kim, 65. “That’s why I look for cheap meals like this.”

The “recession-style consumption” is the latest thing in the domestic market. Demand for budget buffets, discounts and clearance products is rising, while drinking culture is also changing, with more people choosing to drink at home rather than to go out.

A line to enter a Korean buffet restaurant in Jongno District, central Seoul stretchs from the basement to the ground floor on April 8. [HWANG SOO-YEON]

Processed food prices rose 3.6 percent in March, surpassing the average consumer inflation rate of 2.1 percent, according to Statistics Korea. This was the steepest jump since December 2023. Dining out also became more expensive, with a 3 percent increase last month the second consecutive month.

Popular lunch items such as bibimbap, which average 11,308 won in price, and naengmyeon, averaging 12,115 won, now easily exceed the 10,000 won mark. Prices for coffee rose 8.3 percent, bread 6.3 percent, and ham and bacon 6 percent last month.

As price hikes spread across major food manufacturers and franchises — including hamburgers, coffee and fried chicken — Fair Trade Commission (FTC) Chairman Han Ki-jeong instructed his agency last week to closely monitor the increases for signs of collusion or unfair practices.

“With fewer government checks now in place, companies are finding it easier to raise prices,” said a distribution industry official.

Amid rising dining costs, low-cost buffets are making a comeback. Buffets priced at 7,000 to 8,000 won for Korean food, 10,000 won for hot pot and 20,000 won for barbecue are becoming more common. Gogi Salon, a barbecue buffet chain, expanded to over 130 locations since its launch in 2020. Ashley Queens, a family restaurant chain, saw a 40 percent increase in sales last year.

Changes are also evident in grocery shopping habits. Demand for discounted or clearance items is rising. Sales of “imperfect” vegetables at Market Kurly doubled last year. Lotte Mart sold more than four times the usual amount of salmon hoe (raw fish) between April 3 to Monday, thanks to discounts of up to 50 percent.

“Consumers are acting on the mindset that they should stock up when prices are low,” said a representative of one large supermarket.

People wait in a long line to have lunch in front of a low-cost buffet restaurant in Seoul on Feb. 12. [NEWS1]

Drinking habits are changing too. Hite Jinro’s beer sales used to rely heavily on restaurants and bars, with over 60 percent of sales coming from wholesale channels four years ago. By last year, retail sales at supermarkets and home-use channels had risen to 60 percent of the total. To attract more evening customers, some restaurants are slashing prices on beer and soju from 6,000 won to around 2,000 won.

Refurbished products — items with exterior defects or those returned after sale — are also gaining popularity. Lotte Home Shopping reported a 40 percent increase in orders for its discounted “warehouse clearance” items last year, which can be marked down by up to 90 percent.

Industry experts are also warning that recent wildfires in North Gyeongsang could trigger food inflation in fresh produce. About 9 percent of the country’s apple orchards have been destroyed and there may be no harvest of wild pine mushrooms this year.

“Because people eat every day, even a small increase in food prices significantly burdens household budgets,” said Lee Eun-hee, professor of consumer studies at Inha University. “Government agencies need to closely monitor supply and price changes and take steps to stabilize them.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.

BY CHOI HYUN-JU, HWANG SOO-YEON [[email protected]]