"In Times Like These, Jjajangmyeon Costs 4000 Won"... Value-for-Money 'Good Price Restaurants' Increase

Affordable Food and Service Offerings, Good Price Businesses
1793 Locations in the Capital Area in 2019, 1815 This Year
Increase in Seoul and Incheon Excluding Gyeonggi-do
Local Governments Promote Business Activation... Systematizing Operations Remains a Challenge

Jajangmyeon. Not directly related to the article. [Image source=Pixabay]

[Asia Economy Reporter Song Seung-yoon] "Where can you find a restaurant like this these days?"

A Chinese restaurant named A in Yeonsu-gu, Incheon, has recently seen an increase in regular customers. In an era of high inflation where "everything except salaries has gone up," this neighborhood restaurant has gained a reputation for its excellent cost-effectiveness. Despite the ongoing surge in prices, A Chinese restaurant has been offering food at low prices for several years as a "Good Price Business." A bowl of Jajangmyeon costs 4,000 won, and a mini sweet and sour pork dish is 8,000 won per plate. According to the Korea Consumer Agency's True Price Service, the average price of Jajangmyeon in the Incheon area is 6,000 won, and it has actually risen to between 6,500 and 7,000 won this year. Considering this, the prices at A Chinese restaurant are about half as expensive. The owner of A Chinese restaurant said, "From the beginning of the business, we have hardly raised prices to provide food at reasonable prices," adding, "Although prices are rising, word of mouth has spread, and the number of customers visiting remains steady."

Signboard of a Good Price Store in Jeongeup-si, Jeonbuk./Photo by Jeongeup-si Provided

While consumer prices continue to soar daily, leading to a series of price increases in the dining industry, the number of "Good Price Businesses" that offer food and services at affordable prices is increasing.

A Good Price Business is a project designated by local governments according to the Ministry of the Interior and Safety's standards, which provides consumers with food and services at low prices and maintains clean hygiene conditions. To be designated as a Good Price Business, the business owner must apply and sell goods below the regional average price and must have frozen prices for the past six months. Various industries are included, such as dining, laundry, beauty salons, bathhouses, and lodging. Although benefits vary slightly by local government, designated businesses receive benefits such as garbage bag supplies, necessary items, and reductions in water and sewage fees. They can also receive help with business promotion.

According to the Ministry of the Interior and Safety on the 17th, as of this month, there are 885 Good Price Businesses operating in Seoul, 223 in Incheon, and 707 in Gyeonggi Province in the metropolitan area. Before COVID-19 in 2019, there were 849 in Seoul, 214 in Incheon, and 730 in Gyeonggi Province. Except for Gyeonggi Province, the number of businesses registering as Good Price Businesses in Seoul and Incheon has been increasing annually. Compared to 2019, the number of Good Price Businesses in Seoul and Incheon increased by 36 and 9, respectively. Nationwide, the number of designated businesses is also on the rise.

Since this project was introduced to stabilize local prices and create an atmosphere to curb price increases, local governments are actively promoting the project amid recent rapid price hikes. Eunpyeong-gu in Seoul is enacting an ordinance to support and encourage Good Price Businesses. This includes issuing designation plaques, providing consumables, and promotional support. Pohang City in Gyeongbuk Province offers incentives worth about 1.25 million won, including certification plaques for Good Price Businesses, volume-based garbage bags, and consumables.

On the other hand, because support standards vary by local government, some areas face issues such as insufficient budgets to properly implement the project or inconsistent benefits. As a result, self-employed business owners point out that the government or local governments should operate with clear standards. A Ministry of the Interior and Safety official explained, "Although the amount of support relative to price is not large, the promotional effect of being a business that provides good quality food and services at a good price seems to have increased applications."