'Good Price Stores' Tackling High Inflation... "The Intent Is Good, but the Benefits Aren't So Kind"

Designated Businesses Providing Affordable Prices and Hygienic Services
Benefits Include Support for Necessary Supplies and Delivery Fees
Merchants Say "Not Much Help... Raising Prices Is Better"

"The intention is good, but the benefits are questionable. It’s more profitable to just raise prices rather than operate as a Good Price Store."

On the 9th, at a Good Price Store in Jung-gu, Seoul, Seo Jeong-hee (60), who has been running the restaurant for 10 years, said, "Most of our customers are office workers nearby, so we set prices according to their meal budgets, which is why we have been designated as a Good Price Store for four years. They say you lose the qualification if you raise prices, but with the high inflation, I think I will have no choice but to increase prices next year."

A sign indicating a Good Price Business is attached in front of a restaurant in Jung-gu, Seoul.
[Photo by Yeom Dayeon]

Seo’s store offers most menu items at prices lower than nearby shops, such as vegetable kimbap for 3,000 won and ramen for 3,500 won. Even these prices were raised by 500 won last year. She said, "At first, they only gave us garbage bags, but nowadays, twice a year, we can buy necessary items at designated marts. However, honestly, it’s not a big help. To increase the number of Good Price Stores, benefits should be expanded and promotion should be improved."

Good Price Stores are exemplary price stabilization businesses designated by the government and local governments. They are designated when they sell products at prices lower than the average in the local commercial area and meet hygiene and cleanliness standards. Franchise stores are not eligible.

The Ministry of the Interior and Safety, which oversees the program, is expanding the number of Good Price Stores as it contributes to stabilizing consumer prices and revitalizing the economy by increasing sales of individual service businesses. Designated stores receive benefits such as garbage bags, hygiene products, and supplies necessary for store operation, and are promoted through city and district newsletters, websites, and social media (SNS).

Since the program started in 2011, the number of Good Price Stores has increased from 2,497 to 7,172 last year. The Ministry of Economy and Finance announced in the '2024 Economic Policy Direction' that it plans to increase the number to 10,000 within the year. Currently, 8,519 stores nationwide, including restaurants, beauty salons, and laundries, have been designated.

Although the number of designated stores has nearly tripled since the beginning, merchants operating Good Price Stores have shown lukewarm reactions. They say the benefits do not significantly help store operations and do not provide enough incentives to maintain low prices. Also, since the support varies greatly by local government, some areas with fewer benefits have raised prices.

Seo Mo (61), who has run a restaurant in Seoul for 30 years, said, "To get Good Price Store certification, you have to collect and submit detailed receipts and expense documents, and the process is too complicated. There are no significant benefits, so I thought it would be better to raise prices. After holding out, I finally raised all menu prices by 1,000 won recently." He added, "I probably won’t get certified again, but I’m not really disappointed. Most customers are regulars, and no one comes just because it’s a Good Price Store."

Park Eun-hee (60), who has been selected as a Good Price Store for two consecutive years, said, "Low prices mean selling a lot with low margins, but these days, the economy is tough, so fewer people come, making it hard to run the store. More active promotion is needed so that stores can maintain good prices even in difficult situations."

There are also criticisms that the delivery fee support program with major delivery applications (apps) is ineffective. The Ministry of the Interior and Safety signed agreements with major delivery apps in June to promote the use of Good Price Stores by offering customers a 2,000 won discount coupon when ordering from these stores. However, many stores do not join because they find it difficult to bear delivery fees and commissions while operating at low prices.

A delivery industry official said, "We cannot disclose the number of Good Price Stores participating, but the usage of these coupons is not high compared to total orders. It seems the number of Good Price Stores using delivery apps is not sufficient for the program to be effective." About 10 billion won in national and local funds were invested in the delivery fee support program, but by the end of August, only 10.2% of the budget had been used.

The Ministry of the Interior and Safety is aware of the limitations of the delivery fee support program and plans to implement policies that will provide practical help in the future. A ministry official said, "Until now, local governments have provided support independently, but since national funds have been invested since last year, we plan to expand various benefits from the second half of this year. We will also actively promote the program through private collaborations such as YouTube and short-form videos to preserve the purpose of the Good Price Store program."