Rising costs roll Korea's gimbap shops out of business

Thousands of gimbap (seaweed rice rolls) shops have disappeared — despite the dish being one of Korea’s quintessential budget-friendly eats — as owners struggle to afford both rising wages and ingredient costs.

The number of bunsik (street food) shop operators nationwide stood at 47,863 as of June, according to the National Tax Service’s tax statistics portal on Sunday. The figure has fallen for 31 consecutive months since November 2023, when there were 54,088 operators. The total dipped below 50,000 in September last year, at 49,913, and has continued to decline.

Gimbap is a familiar and affordable staple for Koreans. The dish usually comprises simple ingredients, such as slices of eggs, spinach, carrots, lotus roots, ham or tuna, wrapped in a layer of rice, then in a layer of gim (dried seaweed). But its price has risen sharply in recent years.

The average price of a roll of gimbap in Seoul reached 3,869 won ($2.81) in July, up 6.8 percent from a year earlier, according to the Korea Consumer Agency.

The price was the biggest increase among major restaurant dishes. In comparison, kalguksu (knife-cut noodle soup) rose 3.6 percent over the same period; samgyeopsal (grilled pork belly) 3.3 percent; naengmyeon (cold noodles) 2.2 percent; and jajangmyeon (black bean noodles) 2.1 percent.

One of the main pressures is labor costs. Gimbap is labor-intensive, as much of the process, from preparing ingredients to rolling each order, requires hands-on work. Korea’s hourly minimum wage surpassed 10,000 won last year and is set to rise to 10,700 won next year.

Additionally, climate change — namely, the resulting sweltering temperatures — has made matters worse by driving up food prices through “heatflation.”

The average retail price of 10 sheets of gim climbed from 899 won in 2021 to 1,422 won this year, according to agricultural price data from the Korea Agro-Fisheries & Food Trade Corporation. Prices of vegetables typically featured in gimbap, such as spinach, have risen as well.

The combination of costs is taking a visible toll on gimbap chains.

Kobongmin, the country’s largest gimbap franchise by number of locations, has seen its store count fall more than 35 percent from 591 in 2020 to 383 this year, according to franchise disclosure data from the Fair Trade Commission.

Similarly, No. 2 gimbap brand Gimgane’s store count has fallen for five consecutive years, from 459 in 2021 to 335 this year. The franchise even recently closed its first-ever location in Daehak-ro in Jongno District, central Seoul.

Other gimbap chains, such as TeacherKim, Yumsem and Ssadagimbab, have seen a similar pattern as well.

“If we raise our prices, customers will have to take on that burden, but if we keep them unchanged, [we’ll] have to absorb the higher costs,” a gimbap franchise owner in Sangam-dong in Mapo District, western Seoul, said. “It’s difficult for gimbap shops to stay profitable when labor and ingredient costs rise at the same time.”

At the same time, growing competition from convenience store meals, meal kits and workplace cafeterias has added to pressure on bunsik shops.

As a result, the industry is searching for ways to cut costs. Some stores are adopting a “grab-and-go” model, with ready-made dishes for customers to pick up. Others are turning to automated kitchen equipment and directly importing ingredients to save money.

BY JANG WON-SEOK [[email protected]]