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By Kim Bo-eun
The number of coffee shops has been soaring in Korea but one in 10 of them lost money in 2018, data showed Wednesday.
According to KB Financial Group's research institute, 14,000 coffee shops opened last year, meaning that 38 new shops opened each day on average. This compares with fewer than 3,000 in 2008
The institute estimated that the number of coffee shops in operation had reached around 71,000 in July 2019.
Nine thousand coffee shops closed in 2018, but the number of new shops was still significantly greater.
The growing number of new coffee shops is due to increased demand.
Data shows a Korean adult drinks 353 cups of coffee a year on average, 2.7 times the global average of 132.
The shops had sales of 7.9 trillion won in 2017, up 10.1 percent from the previous year.
However, 11 percent of stores failed to make ends meet, mainly due to increased operating costs because of heightened competition, as the number of shops continues to grow.
"The demand for coffee shops will likely continue to grow and the market for high-end cafes will also expand, together with affordable places," the report said.
Yet it noted, "Despite the favorable demand conditions, competition is intensifying as the number of shops increases rapidly. Potential business owners should check the market, location and demand when opening a coffee shop."
Out of the total number of coffee shops, 41.2 percent were concentrated in Seoul and Gyeonggi Province.
The district in Seoul with the largest number of cafes was Gangnam-gu, with 1,739.
The city of Changwon in South Gyeongsang Province had 1,420; Suwon in Gyeonggi Province, 1,321; and Seongnam in Gyeonggi Province 1,278.
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