Lotte Department Store introduced Bacha Coffee, a Moroccan luxury coffee brand, to South Korea on August 1. (Image courtesy of Lotte Department Store)
SEOUL, Aug. 2 (Korea Bizwire) – The opening of a premium coffee shop in Seoul’s upscale Cheongdam-dong district has ignited controversy over luxury pricing in a time of high inflation, highlighting the growing economic disparities in South Korean society.
Lotte Department Store introduced Bacha Coffee, a Moroccan luxury coffee brand, to South Korea on August 1. The flagship store, the first in the country, offers a range of high-end coffee products, including its most expensive blend priced at 480,000 won for a 350ml gold pot.
This astronomical price tag, equivalent to about 1,371 won per milliliter, has drawn both fascination and criticism from the public. Some coffee enthusiasts view it as a rare opportunity to experience an exclusive product, while others denounce it as tone-deaf in the current economic climate.
“It’s madness,” one critic commented on social media, while another sarcastically asked, “Would a single drop mixed with water make a strong Americano?”
The launch of such an ultra-premium product comes at a time when South Koreans are grappling with the effects of inflation on everyday items. In the food and beverage industry, even a 100 won increase in prices can provoke strong public reactions, leading many companies to carefully consider the timing of price hikes or premium product launches.
This sensitivity to price increases is exemplified by the recent decision of dairy farmers and milk companies to freeze milk prices this year, despite being allowed to raise them by up to 26 won per liter based on production costs and market conditions.
Coffee holds a significant place in South Korean culture, with annual per capita consumption exceeding 400 cups. Prices vary widely, from budget options like Mammoth Coffee’s large iced Americano at 1,600 won to Starbucks’ grande Americano at 5,000 won (soon to be 5,300 won).
Critics argue that introducing such an expensive coffee option exacerbates the existing “consumption polarization” in South Korea, where even the choice of post-lunch coffee can reflect and reinforce social disparities.
Lotte Department Store has defended its decision, emphasizing that the Cheongdam-dong location is a flagship store and part of a luxury marketing strategy similar to high-end fashion brands. They note that Bacha Coffee, which originated in Morocco, has only about 20 stores worldwide, focusing on premium quality rather than expansion.
A Lotte representative stated that their main coffee products are priced at 16,000 won, with the ultra-premium options aimed at connoisseurs seeking exclusivity and rarity.
Ashley Song (ashley@koreabizwire.com)
