Shuka World's 990 KRW Salt Bread Sparks Debate: "Cost Price Is 1,000 KRW" vs "Bread Is Unusually Expensive in Korea"

Shuka World Announces Bakery Popup in Seongsu-dong
Popup Planned to Address 'Breadflation' Phenomenon
Labor Costs and Distribution Structure Cited as Causes of 'Breadflation'

Shuka World, an economics YouTuber with 3.6 million subscribers, has opened a popup store selling bagels, salt bread, and other baked goods at prices starting from 990 KRW in response to the rising bread prices in Korea. This move has sparked sharply divided reactions among internet users. Independent bakery owners have voiced complaints, saying, "The cost price is 1,000 KRW, but now I'm suddenly someone selling bread at an expensive price," while consumers have countered, "Isn't it true that bread is unusually expensive in Korea?"

Shuka World's 990 KRW Salt Bread Sparks Debate: "Cost Price Is 1,000 KRW" vs "Bread Is Unusually Expensive in Korea"

Shuka World, in collaboration with the space and brand planning company Glow Seoul, will open the bakery popup "ETF Bakery" in Seongsu-dong, Seoul, on August 30. Shuka World stated that this popup was planned as a response to the phenomenon of "Breadflation." The term "Breadflation," a portmanteau of "bread" and "inflation," was coined as domestic bread prices continued to reach record highs year after year.

Earlier, Shuka World analyzed the labor and raw material cost structure behind the rising bread prices in the comic channel series "Ireon Sikbbang" and announced a popup opening by revealing scenes of directly participating in the baking process. Glow Seoul explained that they reduced distribution costs by sourcing major ingredients directly from the place of origin. Main bread prices include salt bread, plain bagel, and baguette at 990 KRW; loaf bread and fig bagel at 1,990 KRW; pollack roe baguette at 2,450 KRW; Omegi red bean bread at 2,930 KRW; shiitake truffle ciabatta at 3,490 KRW; and peach cake (No. 2) at 18,900 KRW, among others.

A Glow Seoul representative stated, "This popup is not simply a sales space, but a project designed so that consumers can directly relate to the social phenomenon of 'Breadflation.' By offering menus that capture the freshness of the origin while lowering the price burden, we aim to overturn the perception that 'bread is expensive' and create a bakery that can be enjoyed as part of everyday life."

Is Bread Really Expensive in Korea? Examining the Reasons Behind 'Breadflation'

After bread prices were revealed through Shuka World's YouTube channel, bakery owners expressed discomfort. The main concern was that Shuka World might create an image that they are making excessive profits. One independent business owner said, "Even if I sell 1,000 or 10,000 salt breads a day, I could never sell them at 990 KRW. The cost price per bread is 1,000 KRW, so how could I sell it for less? The issue isn't inflated retail prices, but inflated distribution costs that prevent us from lowering prices."

Another independent bakery owner said, "Sales have plummeted rapidly over the past few days, and a customer even said, 'Why are your prices so high? A YouTuber is selling bread for 990 KRW, so I can't afford to buy yours.' It's disheartening, especially when I start work at 4:30 a.m." They added, "Still, I study while sleeping only 3 to 4 hours a night to make bread that brings happiness with each bite and try to keep margins low, but being criticized like this is truly disheartening."

On the other hand, consumers had a different perspective. They commented, "Isn't it true that bread is expensive in Korea? Selling salt bread for 3,000 KRW makes even less sense," and "Of course, as a consumer, cheaper is better. If someone wants to sell at a lower price in a capitalist society, should they be criticized for that?" Some also pointed out that the popup store is a temporary business. "It's not like they opened a bakery next door. If a popup store is enough to disrupt the market, maybe it's time to close up shop," and "Since it's an event-based popup store, of course, they can sell at lower prices. It's not right to criticize independent bakery owners for charging higher prices."

Meanwhile, according to the National Statistical Office's KOSIS portal, the consumer price index for bread last month was 138.55, up 38.55% compared to the base year of 2020. Bread prices in Korea are high even compared to major advanced countries. As of this year, the average price of a loaf of bread (500g) in Korea is about $3.06 (approximately 4,200 KRW), which is lower than in the United States ($3.64), but much higher than in Japan ($1.20) or France (1.19 EUR, about 1,930 KRW).

Experts cite high labor costs and a complex distribution structure as reasons for the high price of bread in Korea. Korea relies on imports for over 99% of its wheat, making it sensitive to international grain prices and exchange rate fluctuations. In the baking industry, labor costs account for 28.7% of total production costs, more than three times the average for the food manufacturing industry (8.1%).