"Didn't Expect Much, But It's Tasty"... People Flocking to 1,000-Won Value Bakeries [The Secret Behind Bread Prices]

The Resurgence of "1,000 Won Bakeries" Amid High Inflation
"Relatively Low Purchase Rate Among Those in Their 20s"
High-Volume, Low-Margin Sales Model is Key

A sold-out notice is posted at a low-cost bakery near Hwagok Station in Gangseo-gu, Seoul. Photo by Heo Midam damdam@

Editor's NoteAccording to consumer price trends released by Statistics Korea, while the price of processed foods rose by 4.1% year-on-year in May, the price of bread increased by as much as 6.4%. The bread consumer price index reached 138.48, which means it rose by 38.48% over five years compared to the base year of 2020 (100). This increase is steeper than that of tteokbokki or fried chicken, both of which are beloved snacks among Koreans. Bread was once a snack enjoyed by everyone, but now its price has reached a point where it is difficult to choose it without hesitation. How did the price of bread in Korea end up rising so sharply?

"We are sold out for today and must close early."

At around 3 p.m. on June 24, the "1,000 Won Bakery" near Hwagok Station in Gangseo-gu, Seoul, had already closed for the day, despite it being only late lunchtime. A "Sold out" notice was posted on the entrance door, and several customers, upon seeing it, turned away with disappointed expressions. This bakery became popular by selling the majority of its 28 items, including red bean bread and soboro bread, for 1,000 won each. Even the most expensive item, rye bread, is only 3,500 won, giving the store a significant price advantage compared to other bakeries.

True to its value-oriented approach, signs emphasizing "Bread 1,000 Won" could be seen all over the exterior walls. At the entrance, there were also messages such as, "The economy is tough. We want to offer you quality, delicious handmade bread at a good price," and, "The price is low, but the taste is not." Han, a man in his 50s who runs the bakery, said, "We sell more than 500 pieces a day on average, and we often receive group orders from churches or universities. Because of the high demand, we close early about once every ten days." He added, "We also offer discounts on products that are close to their expiration date, and if you buy 10, we give you one extra."

Interior view of a bakery store selling most bread for 1,000 won. Photo by Heo Midam damdam@

The main customer base ranges widely, from people in their late 30s to those in their 80s and 90s. Han said, "We do have customers in their 20s, but most of them are single students living alone. Younger customers tend to prefer breads that look pretty, so when they visit with friends, their purchase rate is relatively low."

Because the prices are so low, some consumers have concerns about quality. Han explained, "All ingredients and nutrition information are clearly labeled on the bread bags, and the products are certified under the HACCP (Hazard Analysis Critical Control Point) food safety management standard, so you can eat them with confidence. We adhere to a no-preservatives policy, and for bread like sandwich loaves, we use low-sugar recipes to minimize the impact on blood sugar, among other efforts to ensure quality."

Bakery near Hwagok Station in Gangseo-gu, Seoul, with a sign reading "Bread 1000 won." Photo by Midam Heo damdam@

"1,000 Won Bakeries" can also be easily found in many subway stations across the Seoul metropolitan area, where there is heavy foot traffic. Jo, age 48, who sells 1,000-won bread inside Yeongdeungpo-gu Office Station, said, "In the evenings, most of our customers are middle-aged, in their 40s and 50s. Many people smell the bread on their way home from work and buy it without hesitation." The main items here are: sesame bread for 1,000 won, corn bread for 1,000 won, and sausage bread for 1,500 won, with most items priced in the 1,000-won range. Lee Haeun, a 23-year-old university student, said, "At large chain bakeries, it's hard to find bread for around 1,000 won, but here the prices are so low that I can buy several without worrying. At first, I bought them without much expectation because they were so cheap, but the taste is good enough that I keep coming back."

A banner advertising "1000 Won Bread" is set up in front of a low-cost bakery inside the subway station. Photo by Heo Midam damdam@

Although the price of bread in Korea has risen by more than 38% over the past five years, what is the secret behind bakeries that can still sell bread for 1,000 won? The choice of ingredients that allow for cost savings is one factor that makes these low prices possible. While bakeries that sell bread for around 5,000 won per piece often highlight their use of premium French butter and other high-end ingredients, 1,000-won bakeries frequently use relatively inexpensive margarine and similar ingredients to reduce costs.

A rigorous high-volume, low-margin sales strategy is also a key factor that enables these bakeries to sell bread at such low prices. Typically, "1,000 Won Bakeries" bring in bread produced in bulk at industrial bakeries and sell it at low prices, maximizing sales volume to generate profit. Han explained, "The more we make, the more we can reduce the unit cost of ingredients, which allows us to lower the selling price. For each 1,000-won bread, we make about 300 won in profit, so we absolutely have to sell in large quantities to keep the store running."

The sharp rise in dining-out prices has boosted the popularity of 1,000-won bread, making the high-volume, low-margin model possible. According to the Korea Consumer Agency's "Chamka Price," the average price of a roll of gimbap in Seoul last month was 3,623 won, up 5.8% from a year earlier. Kalguksu was 9,692 won (up 5.9%), bibimbap was 11,642 won (up 5.7%), and jajangmyeon was 7,500 won (up 3.8%). As food prices rise, bread that can be bought for just a single 1,000-won bill has become a popular and convenient option for a light meal.