[AK View] Trapped in the "Jaerae Market" Mindset

Gwangjang Market Faces Another Price-Gouging Scandal... Vendor Suspended for 10 Days
Despite Being a Symbol of the People's Economy, Some Vendors Still Rely on Overcharging, Cash-Only Payments, and Poor Customer Service
Fifteen Years Since the R

Gwangjang Market, a must-visit destination for foreign tourists in Seoul, has once again become embroiled in a controversy over price gouging. This was sparked by a YouTuber who released a video titled "This will make me never want to visit Gwangjang Market again," in which they shared their experience after ordering a sundae (Korean blood sausage) dish. Despite the market's explanations, there are several aspects that are difficult for consumers to accept. The main issue lies in the "method of communication." The YouTuber ordered a large sundae for 8,000 won, and the vendor asked, "Would you like it mixed?" Most customers would interpret this as meaning that a few pieces of meat would be added to the sundae. However, the vendor meant something different: "Since the portion is small, I will mix in some meat and make it 10,000 won." More important than the 2,000 won price difference is trust. The moment this "implicit agreement" is broken, the customer feels upset and the reputation of the entire market is damaged. Ultimately, the market decided to impose a severe penalty, suspending the stall's business for 10 days.

This controversy also exposed problems with the payment system. While card payments are not difficult at formal stores, street vendors still often say, "The system doesn't work." On the other hand, many restaurants and convenience stores actually prefer not to accept cash. Cash transactions in denominations of 1,000 or 100 won are inconvenient for both customers and business owners. So why do traditional markets still insist on cash? From the vendors' perspective, installing card terminals and paying transaction fees can be cumbersome, and manual calculations may seem easier. However, for consumers, what remains is not just "inconvenience" but "distrust."

This is why suspicions persist that "the reason for accepting only cash is to avoid income disclosure." According to the Bank of Korea's "2024 Survey on Payment Methods and Mobile Financial Service Usage," traditional markets remain "kingdoms of cash." In face-to-face transactions, the cash usage rate is 56.3%, far surpassing that of retail stores (20.9%), convenience stores (17.3%), and restaurants and coffee shops (around 8%).

Traditional markets have always been called "symbols of the people's economy." They are places where presidents, politicians, and institutional leaders never fail to appear in front of cameras. In terms of laws, regulations, and budget support, traditional markets are the top priority in small business policies. Every time large supermarkets or shopping malls are established, the rallying cry is "Don't kill the traditional market." Policies such as "livelihood recovery coupons" and "local currency" are also aimed at revitalizing traditional markets. In fact, the budget for traditional market support from the Small Enterprise and Market Service Fund increased from 280.1 billion won in 2016 to 582.1 billion won this year and is set to reach 605.8 billion won next year. Over the past 10 years, the cumulative support has exceeded 4.5 trillion won.

On July 1, 2010, with the enactment of the "Special Act on the Promotion of Traditional Markets and Shopping Districts," the official name changed from "jaerae market" (old-style market) to "traditional market." This change reflected the merchants' desire to shed the outdated image and make a fresh start. However, some markets and vendors remain trapped in the old "jaerae market" mindset. Only the name has changed, while attitudes and culture remain the same. If vendors continue to accept only cash, maintain opaque pricing, and fail to communicate with customers, even the name "traditional" will not serve as a shield. The way for traditional markets to survive is not to cling to old practices. Restoring trust and bringing the pace of change into the market itself is the true way to preserve and revitalize "tradition." Lee Kyungho, Head of the Issues & Trends Team

This content was produced with the assistance of AI translation services.