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business1d ago
South Korea Has a Coffee Shop Problem
- Latest: Seoul’s cafe density remains exceptionally high, with more than 10,000 shops in the capital alone as interest in trendy venues persists.
- What happened: The cafe boom in South Korea has led to rising closures as market saturation outpaces new openings.
- Who is affected: Cafe owners and would-be entrepreneurs face long hours, slim profits, and intense competition.
- Why now: Demand for trend-driven drinks and interior design fuels constant cafe turnover and marketing competition.
- Where: The trend is most visible in Seoul’s Sillim and other densely populated districts, reflecting urban cafe culture.
- When: The cafe surge accelerated through the 2010s and into the 2020s, with recent years seeing more closures.
- How it works: Entry costs are relatively low, drawing many to open shops as a perceived path to independence.
- Impact on consumers: Cafes act as social spaces for dating, study, and social media sharing, beyond simply serving drinks.
- Experts warn: Many entrants are unprepared for the operational demands of running a cafe, contributing to high turnover.
- Context: The cafe boom sits within a broader trend of Koreans pursuing entrepreneurship amid a tough job market.
- Data sources: The analysis uses Korea Local Information Research & Development Institute data and Google Maps street views.
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