Cheaper Than a Cup of Coffee... The Secret Behind the '3000 Won Gukbap' Price [Chosun Price Records]

④'Tapgol Park' Cluster of 'Good Restaurants'
High Turnover with Low Margins
Restaurant Owner Turns Out to Be Building Owner

At Exit 5 of Jongno 3-ga Station in Seoul, if you turn right, cross the traffic light, and enter the alley, you will find 'Wonjo Somunnan Jip Gukbap Jeonmun (Somunnan Jip)', a long-established gukbap restaurant that has guarded Nakwon-dong for 60 years. Also famous for its 'Songhae Gukbap,' this place is bustling with customers for its single menu item, Ugeoji Spicy Soup. This restaurant is especially known for its price. A bowl of gukbap costs 3,000 won.

Restaurants near Tapgol Park in Nakwon-dong, Jongno-gu, Seoul offer affordable prices ranging from 3,000 to 4,000 won. Photo by Yoon Seulgi seul97@

On the morning of the 22nd, when the temperature dropped to minus 8 degrees Celsius, it was only 7:30 AM before dawn had fully broken, yet the restaurant was crowded with customers. Most were elderly people in their 60s and 70s, and foreign tourists who seemed to have come after hearing word of mouth were also visible. A bowl of white rice, soup made by boiling meat broth for a long time with ugeoji (dried radish greens) and tofu, and tangy kkakdugi (cubed radish kimchi). The table setting here was simple but had the appearance of traditional Korean cuisine.

Photo by Seulgi Yoon seul97@

Until two years ago, the price of gukbap at Somunnan Jip was 2,000 won. However, unable to withstand the steep rise in prices, it raised the price twice: to 2,500 won in 2022 and 3,000 won in 2023. Nevertheless, customers still unanimously call it a 'reasonable price.' Kim Yong-gwan (75), a regular customer for decades, said, "If you want to eat even ramen somewhere, you have to pay at least 4,000 won," adding, "Here, 3,000 won is enough for a hearty meal, and the taste is secondary; the price is practically free."

For office workers in Seoul, it is an era where you have to pay 'at least 10,000 won' for a single meal to feel full. The dining-out price inflation rate, as disclosed by the National Statistical Portal of Statistics Korea, has been over 6% for two consecutive years. It is the highest level in 30 years since 1994 (6.8%). Yet, the price of a meal at Somunnan Jip is even cheaper than the price of a typical cup of coffee. The price of a tall-sized Americano at Starbucks is 4,500 won.

What allows Somunnan Jip to maintain such low prices for a long time? Employees point to low profit margins with high turnover as the secret to the price. Employee A said, "We start preparing for business by lighting the fire at 3 AM and serve customers until late at night," adding, "There is nothing else; the secret to maintaining low prices is serving many people."

On the morning of the 22nd, customers are dining at Wonjo Somunnan Jip Gukbap Jeonmun in Nakwon-dong, Jongno-gu, Seoul. Photo by Seulgi Yoon seul97@

In fact, every process here moves swiftly until a customer finishes a meal. As soon as a customer sits down, the table is set, and after a meal lasting about 15 to 20 minutes, another customer comes in to fill the empty seat. Even strangers share tables without leaving empty seats. The rough service focused on providing a 'hearty meal' increases seat turnover. Not paying building rent is also a reason for maintaining the price. A said, "The restaurant owner is the landlord," and added, "There has been no talk of raising prices yet."

Besides Somunnan Jip, there are many affordable restaurants near Tapgol Park in Nakwon-dong. Considering the financial situation of elderly people with limited means, the prices in the area are also formed cheaply. A bowl of kalguksu (knife-cut noodle soup) near Tapgol Park costs 5,000 won, dried pollack hangover soup near Somunnan Jip costs 4,000 won, and ugeoji bean sprout hangover soup costs 3,000 won. Another restaurant sells soft tofu stew, bean sprout gukbap, and blood sausage hangover soup each for 4,000 won.

'Reasonable Price Restaurants' Nationwide... "No Plans to Raise Prices This Year Yet"

On the morning of the 22nd, at Wonjosomunnanjip Gukbap Specialty Restaurant in Nagwon-dong, Jongno-gu, Seoul. Photo by Seulgi Yoon seul97@

Although dining-out prices are rising, many reasonable price restaurants are struggling to provide hearty meals affordably. To avoid price increases as much as possible, families actively participate in restaurant operations to save labor costs and reduce ingredient costs by shopping around.

The tradition of 'Reasonable Price Businesses' continues with such efforts. Since 2011, the government has selected places that offer affordable prices but provide quality service as Reasonable Price Businesses to stabilize prices. Reasonable Price Businesses in Seoul include Hong Sundubu in Jongno-gu (Hong Sundubu Jjigae 5,500 won), Dongseon Sikdang in Jung-gu (home-style set meal 5,500 won), Old Hong Ddukkye Son Kalguksu in Jung-gu (handmade kalguksu 5,000 won), and Cheongnyangni Grandma Naengmyeon in Dongdaemun-gu (naengmyeon 6,000 won).

Jeong Un-pil (43), who operates Hong Sundubu, said, "This is a university area, so we sell cheaply, but of course, we make a profit," adding, "To reduce labor costs, I work with my brother-in-law, and the store operates on a self-service basis." Jeong said, "We plan to add higher-priced menu items, but there are no plans to raise prices."

Some places endure losses due to low prices but survive thanks to the influx of customers. The Old Hong Ddukkye Son Kalguksu said, "There are items we lose money on," explaining, "Janchi Guksu costs 3,500 won, and if customers pay by card, we don't make a profit, but we keep it as a service item." They added, "Because we sell cheaply, many customers come, and some customers even dislike the store becoming famous due to the crowd. Our store is doing fine (operationally)."