According to the report from Kookmin Bank, the number of coffee shops in Korea grew more than 12,000 last year. Although the worldwide economic depression has affected numerous industries in Korea, the coffee business is enjoying its boom. Currently, the coffee market in Korea is said to be going through its third wave. The third wave refers to where consumers are able to freely purchase coffee beans and are willing to acquire knowledge about them. There are now various types of coffees whereas 20 years ago, it was originally limited to a sweet form of instant coffee.

The release of a movie called “Ga-bi” told stories about King Gojong and his experience of coffee. King Gojong is the first person on record to drink coffee. The movie depicts the pressure that King Gojong was under, as well as his love for coffee. Starting from 1896, coffee culture was mostly enjoyed by the upper class. It was not until the end of the Korean War that the general public took a sip of coffee from the U.S. military supply. Although there once was a restriction on coffee imports, the coffee culture started after the Dong-suh Food Company produced sweet and smooth instant coffee in 1970s. For the next two decades, Koreans spent their time in Da-bangs (an old Korea coffee shop) and a portion of people drank hand-drip coffee from roasted beans, rather than manufactured instant coffee. In 1999, Starbucks entered Korea and established their first branch near Ewha Women’s University. Starbucks produced a whole new market of coffee shops in Korea.

The boom of coffee shops in Korea is not new. With the first branch of Starbucks, other companies quickly responded to the high demand for espresso based coffee. In 2005, a word “Doen-jang-nyeo”, referring to women who drink brand name coffee, but eat soybean stew, eventually spending more on coffee than on their meals, swept the nation by criticizing people who drink a cup of coffee. Although people talk about the “soy-bean women” today, it is irrefutable that coffee shops have became a part of life for many Koreans. It is estimated that there are more than 12,000 coffee shops in the Seoul metropolitan area. Also, concerns are rising that the level of coffee shops in Korea is above the saturation level. Given this, is the number of coffee shops in Korea expected to drop? No. Even with word that the metropolitan area is overly saturated with coffee shops, the trend is expected to continue to rise.

Beyond Korea, other Asian markets are experiencing such a phenomenon. Starbucks reported that it seeks to open more branches around China. Other brands, such as Pascucci, began to turn towards the growing market, India. In Korea, it was estimated that coffee imports grew by 20% in 2011, contributing to a 93% growth over 5 years. Recently, North Korea opened its first coffee shop in its capital, though the nation is well known for its resistance to Western culture.

The public is in love with coffee but also criticizes coffee companies’ actions. The price of coffee has begun to rise as the price of raw coffee imports rose, and may also have to do with price increases of other related materials. A recent publication from Starbucks received criticism, after reporting a 300 won increase in 52 of its products. Other brands have increased prices and have never lowered them. Currently, companies are facing evaluation by the Fair Trade Commission due to unreasonable prices.

Looking to other forms of industry involving food and beverages, coffee is clearly a distinctive type of industry. A number of companies used straddling strategy, establishing new characteristic in a company, and incorporated coffee as one of their menu. McDonalds’ has launched McCafes where customers can enjoy coffee at a reasonable price. They also advertise that the quality of their coffee is no less than any other coffee which costs twice as much. Moreover, not limited to the coffee sold at coffee shops, canned coffee products are also enjoying their sales increase.

It was estimated that Korea imported 668 million dollars worth of coffee beans last year, meaning that the average Korean consumes about 1.2 cups of coffee per day. While much research has offered reasons for this trend, no one is sure exactly why. One prominent suggestion would be the atmosphere that typical coffee shops provide. In Korea, almost all coffee shops enable customers to spend time there. Many are equipped with wireless Internet access, and some have large rooms where group of people can gather. Moreover, they also sell other items, mostly bread, desserts and sandwiches so people can have quick meals. The word “coffice” developed referring to people who work in coffee shops during their spare time. Also, it is not hard to find students studying at coffee shops, as we can easily discover numerous coffee shops near universities. Coffee shop owners in New York, however, are currently cutting their wireless Internet access and placing time limits on customers. In several nations in Europe, customers need to pay for a seat.

The deep love for coffee in Korea has been interpreted in several ways. Some critics suggest that when consumers hold a brand name coffee cup in their hands and walk down the street, they feel like a New Yorker, with a busy and successful life. Moreover, some may pride themselves by showing off that they are wealthy enough to purchase an overpriced product. On the other hand, one psychologist concluded that coffee shops have settled in to people’s minds as comfortable and common place. An example of this is when someone asks a friend to meet at a coffee shop. The conclusion derives from the frequency of such behavior and is also supported in dramas or movies, where the public easily sees the characters meeting at coffee shops.

Regardless of the how and why, coffee gained in popularity and coffee shops established a new market in Korea. As mentioned in the beginning, the third wave of coffee is taking place. The continuing growth of the market despite the recent controversy in the price of coffee and criticism on the saturation of coffee shops reveals that people’s affection for coffee maybe too high. One healthy was to enjoy coffee maybe to study it and make the right choices, as some are choosing to boycott unfairly imported coffee beans.

Choi Yun-Seong(Report)

Paulc0615@kookmin.ac.kr