[Report] "Even if it means a loss, we have to give more"... 'Overcharging Controversy' at Gwangjang Market, Two Months Later

'Overcharging Controversy' at Gwangjang Market, Tourist Numbers ↓
Street Vendors 'Upset' Over Additional Expenses
Card Payments Still Not Accepted by Street Vendors

"Please have some warm jeon before you go. Feel free to sit down and enjoy the fish cake broth as much as you like."

During weekday lunchtime, the alleys of Gwangjang Market located in Yeji-dong, Jongno-gu, Seoul, were quiet, a far cry from the old days when the streets were so crowded with people that it was hard to get through. It seemed that 9 out of 10 visitors to Gwangjang Market were foreigners, as Koreans appeared hesitant to visit the market following the 'overcharging controversy.'

The scene of Gwangjang Market in Jongno-gu, Seoul. Unlike the past when it was crowded with people, the atmosphere is now quiet.
[Photo by Go Gijeong, Asia Economy]

Previously, on November 16 last year, Gwangjang Market faced social backlash after a famous YouTuber posted a video claiming they were overcharged at a jeon restaurant. A companion of the YouTuber expressed disbelief, saying, "Is this 15,000 won? That's way too expensive." In the video, the assorted jeon ordered by the YouTuber and their foreign companion consisted of fewer than 10 pieces: ▲1 sausage ▲1 skewered meat ▲1 zucchini ▲1 perilla leaf ▲1 meatball ▲1 tofu ▲1 crab stick ▲2 fish fillets. Additionally, the unfriendly attitude of the merchant, who refused card payments and insisted on cash only, sparked further controversy.

The negative perception was clearly reflected in Naver keyword search volumes. On the 15th, searches were at 33%, but immediately after the controversy broke on the 16th, they surged to 100%. Keywords such as 'Gwangjang Market overcharging' and 'assorted jeon' saw their search volumes more than double compared to the previous day.

In response, the Seoul Metropolitan Government, Jongno District Office, and the Gwangjang Market Merchants Association announced measures to prevent recurrence of the overcharging controversy, including ▲placing food models ▲displaying weight and quantity next to menu prices (standard quantity labeling system) ▲mystery shopper visits ▲regular monitoring system introduction ▲bi-monthly service training sessions, demonstrating their commitment to self-regulation.

Hard to find street vendors implementing the 'standard quantity labeling system'... Most menus are unified

The menu boards of street vendors inside Gwangjang Market have been unified in red following the controversy.
Photo by Gogi Jeong

So, has Gwangjang Market really changed two months after the 'overcharging controversy'? The owner of an assorted jeon shop, Mr. A (63), said, "Since the controversy, we have been trying to serve more even if it means running at a loss to improve the market's image," adding, "After this incident, merchants have made great efforts, such as unifying the menus."

Indeed, most store menus in Gwangjang Market had been changed to red menus. Unlike before, when prices varied by store, the red menus clearly stated prices, allowing customers to simply choose which store to order from. However, contrary to the claim that a 'standard quantity labeling system' would be introduced, it was difficult to find stores that clearly indicated the exact quantities.

Mr. A said, "I paid for the menu production out of my own pocket. I invested about 100,000 won in making the menus," and added, "We also have to pay for making food models ourselves, which costs around 500,000 to 700,000 won, so it's a big concern." Implementing the standard quantity labeling system means that expenses such as ▲producing new price tags ▲creating food models become the sole responsibility of the merchants.

He also said, "Since the (overcharging) controversy, my store's sales have dropped by nearly one-third," and added, "Merchants are reflecting a lot. We conduct thorough hygiene inspections among ourselves once a week, and the merchants' association issues warnings to restaurants that try to overcharge customers."

(Left) A 15,000 won assorted jeon ordered by a famous YouTuber and (right) a 15,000 won assorted jeon ordered from the same store two months after the 'overcharging controversy.' It can be seen that the portion size has increased generously.
[Photo by Go Gijeong]

The jeon restaurant involved in the controversy announced a major menu overhaul after the incident. The merchant warmly welcomed reporters who visited the restaurant, saying, "Please enjoy the fish cake broth while waiting for your food," and showed consideration by reheating the jeon in fresh oil. The menu now consisted of ▲3 skewered meats ▲2 meatballs ▲2 zucchinis ▲3 hams ▲3 fish fillets, totaling 13 pieces, priced at 15,000 won, the same as before. However, when asked about the 'overcharging controversy,' the merchant gave no specific response.

Card payments still difficult... "We have no choice but to accept cash"

The current status of the tteokbokki restaurant that suffered from overcharging controversies. The price remained at 10,000 won, but the composition appeared more abundant.
[Photo by Gogi Jeong]

Another food item caught up in the overcharging controversy, tteokbokki, also appeared to have increased in quantity compared to before. Previously, 10 pieces of sundae (Korean blood sausage) and 6 tteokbokki rice cakes were sold for 10,000 won, but now 13 pieces of sundae (including intestines) and 7 rice cakes are sold for the same price.

However, street vendors uniformly stated that card payments were difficult. Mr. B, a street vendor, said, "The rent for street stalls is 3 to 4 million won. The merchant involved in the controversy probably made a mistake because of the rent burden," adding, "I visited the tax office to get a card terminal and even obtained a cooking license. But they said it's hard for street vendors to get card terminals. Even if we want to accept cards, we have no choice but to take cash." This is because card merchant accounts are only issued to those with business registration certificates. Therefore, street food vendors or stalls without business registration cannot practically accept card payments.

So, can stores other than street vendors accept card payments? Mr. C, who has operated a jeon restaurant in Gwangjang Market for a long time, processed the card payment without any objection when requested.

Assorted Jeon worth 20,000 won ordered from a shop inside Gwangjang Market.
[Photo by Gogi Jeong]

The assorted jeon ordered at the store was more generous. It consisted of ▲2 shrimp ▲4 chive ▲4 meatballs ▲4 fish fillets ▲1 grilled short rib patty ▲3 skewered meats ▲4 perilla leaves ▲2 chili peppers, totaling 24 pieces, priced at 20,000 won. Mr. C also said, "Since the controversy, the number of foreign customers has decreased a lot," adding, "Even during COVID-19, sales didn't drop this much, so it's really frustrating."

It was also easy to take home leftover food. Despite various negative rumors about food reuse and refusal to pack leftovers, Gwangjang Market showed friendly service after the controversy by offering fish cake broth to customers who requested takeout.

Mr. D, who visited Gwangjang Market that day, said, "Gwangjang Market was always crowded, so I can't get used to seeing it so quiet," adding, "There also seem to be fewer hawkers. I will continue to visit often."

However, some merchants viewed these changes negatively. A merchant who wished to remain anonymous said, "If the standard quantity system is implemented, the unique characteristics of each street vendor will disappear," and added, "Rather than simply displaying standard quantities, providing subsidies to each store to preserve their uniqueness would help attract foreign customers and promote market development."