There are an endless number of cafes on the streets of Seoul. There are not only foreign brands but also lesser known domestic brands. They are not just located in large boulevards but also in narrow alleys in almost every neighborhood. Some places even roast coffee beans on their own. In the last few years, buying and drinking capsule coffee has become a new trend. Korea is now a heaven for coffee lovers.

French newspaper Libération released a column on June 27 titled "Coffee, new passion that excites the South Koreans" and described in detail how much Koreans are in love with coffee. The newspaper said that "The city with the most Starbucks in the world is not New York or San Francisco, but Seoul, with 284 stores, against 50 in Paris."


Libération reported that since the arrival of Starbucks in 1999, franchises have been mushrooming in the capital and in the provinces. It said that sometimes, you can see buildings that have multiple coffee franchises together under the one roof. It also noted that Koreans, while traditionally drinkers of tea, have become the second largest consumer of coffee in Asia, behind Japan, with more than 15,000 specialized coffee shops.

The newspaper also explained how two years ago, the Korean government attempted to regulate this growing market by imposing a minimum distance of 500 meters between two outlets of the same brand. This law, however, was abolished in May. It also pointed out problems occurring from ever increasing competition between coffee shops. A large number of individual entrepreneurs are losing business and struggling to compete with franchises owned by large companies or foreign brands.

Libération also explained how coffee franchises are changing Korean culture and society. "In Korea more than elsewhere, cafes have become places of socialization. Deserted in the morning, they attract customers including students and young couples until late evening. Some even stay open all night."


Quoting a Starbucks manager, the newspaper said, "Koreans are looking for a third place that is neither home nor office."

The newspaper also said that each cup has become an object of social distinction as it is priced at KRW 5,000 or 6,000. However, it pointed out that only coffee mixes were available in large supermarkets versus the flavored coffees sold in many cafes.

The column also explained that the economic downturn has affected sales of caffeinated beverages. Several brands have decided to focus on the high end, with new grains and brewing methods, and retailers are now eyeing the huge neighboring market in China.

By Limb Jae-un
Korea.net Staff Writer
jun2@korea.kr