Growing Concerns over Emerging Tipping Culture in S. Korea's Hospitality Industry | Be Korea-savvy

Growing Concerns over Emerging Tipping Culture in S. Korea’s Hospitality Industry


This file photo, taken March 18, 2022, shows citizens having lunch at a restaurant in Seoul. (Yonhap)

This file photo, taken March 18, 2022, shows citizens having lunch at a restaurant in Seoul. (Yonhap)

SEOUL, Aug. 22 (Korea Bizwire)Numerous online communities have recently brought to light instances where certain local establishments, such as restaurants and cafes, have been requesting tips from customers.

This trend has raised concerns about the potential emergence of an unfavorable “tipping culture” in South Korea.

Just last week, a well-known online community shared a story about a cafe situated in Yeonnam-dong, Seoul, a neighborhood popular among young people. In this account, the cafe insisted on receiving tips from customers.

The individual taking orders at the counter approached customers with a suggestion: “Would you consider leaving a tip for our hardworking staff?”

They presented a tablet displaying options of 5, 7 and 10-percent tip amounts.

Critics have voiced their opinions on this issue, stating, “This negative cultural influence is being imported,” and suggesting that a boycott of such establishments might be warranted.

Some have even argued that pressuring customers to provide tips goes against food hygiene regulations and legal norms, asserting that it’s improper to compel tipping.

Reports have also surfaced about the presence of “tip boxes” in popular bagel shops, prompting questions about whether such a service truly merits gratuities.

The writer of one such report expressed doubt, noting that interactions between customers and staff are primarily limited to payment and product selection.

This file photo taken May 21, 2023, shows the bustling shopping district of Myeongdong in central Seoul. (Yonhap)

This file photo taken May 21, 2023, shows the bustling shopping district of Myeongdong in central Seoul. (Yonhap)

In a separate development, Kakao Mobility recently introduced a feature enabling users to tip taxi drivers, igniting a substantial online debate.

An OpenSurvey study conducted recently indicated that 7 out of 10 consumers are opposed to the idea of introducing tips for taxi rides.

Furthermore, South Korea’s existing food hygiene legislation stipulates that all food service establishments, including general restaurants, are barred from displaying value-added tax (VAT) and service charges as separate entities on price displays.

These charges must be incorporated into the overall food price, reflecting the “final price” to be paid by customers. Soliciting tips from patrons could potentially run afoul of this legal provision.

However, experts contend that tipping, if offered voluntarily and not mandated, is not inherently illegal.

In conclusion, there’s a growing concern about the emergence of a problematic tipping culture in South Korea, with instances of establishments asking for tips from customers.

These incidents have triggered debates both online and offline, highlighting legal and ethical considerations around this practice.

Lina Jang (linajang@koreabizwire.com)

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