"8,000 Bowls Sold Daily": Annual Sales Reach 35.2 Billion Won… The 60-Year-Old Culinary Institution Attracting Everyone from Elderly Locals to Young Foreigners

Myeongdong Kyoja posts sales of 35.2 billion won and operating profit of 12.7 billion won last year
Operating profit margin at 36%—five times the average for Korean cuisine restaurants
Land assets reach 90 billion won, easing burden of real esta

On the afternoon of the 13th, even though lunchtime had long passed, customers continued to visit the Myeongdong Gyoja New Building, a renowned Kalguksu restaurant in Myeongdong, Jung-gu, Seoul. The range of patrons was diverse, from elderly gentlemen and groups of women in their 60s who came to Myeongdong for an outing with old classmates, to young foreign tourists commemorating their travel moments by taking photos of their Kalguksu and dumplings. A couple in their 30s from Singapore, who were waiting in line to dine, said, "We came after reading online reviews about this place being a must-visit restaurant," expressing their excitement. It was a scene where both local and international customers flocked to this 60-year-old traditional Kalguksu establishment, making it hard to believe the restaurant once recorded losses during the COVID-19 pandemic.

According to the electronic disclosure system on April 14, Myeongdong Gyoja recorded sales of 35.2 billion won and operating profit of 12.7 billion won last year. Sales increased by 9.7% and operating profit by 3% compared to the previous year. Starting as a small Kalguksu restaurant in 1966, Myeongdong Gyoja now directly operates a total of four locations: three in Myeongdong and one in Itaewon, Yongsan-gu, Seoul. If the annual sales are arithmetically converted based on their signature Kalguksu dish, priced at 12,000 won, it is estimated that over 2.94 million bowls were sold in a year across the four stores, averaging more than 8,000 bowls per day.

On the afternoon of the 13th, customers continued to visit Myeongdong Gyoja New Building, a representative Kalguksu restaurant in Myeongdong, Jung-gu, Seoul, for lunch. Photo by Hyunjin Jung

Myeongdong Gyoja suffered significant losses during the COVID-19 period. However, it quickly recovered, doubling its sales over five years. Sales, which stood at 11.7 billion won in 2020, surpassed 20 billion won just two years later in 2022, and then soared past the 30 billion won mark in 2024, again after only two years.

The growth appears to be largely influenced by the increase in foreign visitors. According to the Korea Tourism Organization, the number of foreign tourists visiting Korea last year reached 18.94 million, setting an all-time record. In particular, the number of foreign visitors to Myeongdong surged from 40,960 in 2021 to 940,000 in 2022, then to 9.77 million in 2023, and finally to 14,275,126 last year.

Along with the increase in sales, operating profit also grew from 3.5 billion won in 2021 to 12.7 billion won last year, a 3.6-fold increase. Myeongdong Gyoja's operating profit margin (operating profit to sales) reached 36.1% last year. This is nearly five times higher than the average operating profit margin of general Korean restaurants (7.7%). Over the past four years, Myeongdong Gyoja's operating profit margin has exceeded 30%, and in 2024 it even soared to 38.3%.

This high operating profit margin appears to be primarily affected by price increases that took into account the rising cost of raw materials and other expenses. Myeongdong Gyoja raised the price of its Kalguksu three times in the past five years (2022, 2023, 2025) due to increases in the cost of ingredients and labor. During this period, the price of Kalguksu rose from 9,000 won to 12,000 won. The average price of Kalguksu in Seoul is about 10,000 won.

Operating expenses (selling and administrative expenses) also increased, which is interpreted as resulting from the expansion of stores. Myeongdong Gyoja's selling and administrative expenses rose from 4.3 billion won in 2020 to 7 billion won last year. The largest component—labor-related costs (salaries, retirement benefits, and employee welfare)—increased by nearly 50%, from 2.7 billion won in 2020 to 4 billion won last year. The number of employees at Myeongdong Gyoja decreased from 140 in 2020 to 112 in 2021, but increased again to 160 last year. On the other hand, advertising expenses disappeared, dropping from 110,000 won in 2021 to 0 won last year. This means customers flock to the restaurant even without paid advertising. Other necessary business operation expenses—such as telecommunications, utilities, insurance, and vehicle maintenance—also increased.

Notably, compared to ordinary restaurants, Myeongdong Gyoja faces a lower burden from real estate rental costs. The company owns land valued at 91.7 billion won in Myeongdong, Seoul, and Yongin, Gyeonggi Province. Looking at the land prices, the main branch in Myeongdong covers 189 square meters (about 58 pyeong) and is worth around 13.092 billion won. A nearby branch covers 236 square meters (about 72 pyeong) and is valued at approximately 42.269 billion won. In addition, the company purchased more land in 2023 and opened the New Building location in December last year. This was the first additional Myeongdong branch in 49 years since the company opened another branch near the main store in 1976. The New Building location covers 301.1 square meters (about 91 pyeong), with the land valued at 31.864 billion won. This explains how Myeongdong Gyoja can operate stores in Myeongdong—an area known for high rents—with relatively low selling and administrative expenses.

For the Itaewon branch, the company pays about 334 million won in rent. The landowner of the Itaewon branch, Seyoung Distribution, is a company that supplies food ingredients to Myeongdong Gyoja, and its CEO is Chae Yeonhee, the second daughter-in-law of the founder of Myeongdong Gyoja and wife of the current CEO. Seyoung Distribution is based in nine lots totaling 6,218 square meters (about 1,880 pyeong) in Yongin, Gyeonggi Province, additionally owned by Myeongdong Gyoja, worth about 4.5 billion won.

Myeongdong Gyoja is 100% owned by Park James Hwijun, the founder's second son. The business began in 1966 when founder Park Yeonha started out in a small Kalguksu shop run by relatives. In 1969, the name was changed to Myeongdong Kalguksu at Jangsu Market. Ten years later, the company purchased the current main building and opened a second location, and in 1978, due to a trademark issue, the signage was changed to Myeongdong Gyoja. In 2019, the business was incorporated and continues to operate as a corporation.

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