A post on the community forum for small business owners, "It Hurts to Be a Boss," asked, "How much should I earn before deciding to close my bar?" It received over 140 comments. The author, who has been running a pub for two years, expressed concerns about renewing their lease, prompting responses like, "I decided to close after my earnings dropped to 3 million won in the off-season and 5 million won in peak season," and "Many small business owners are holding on by working side jobs, so stay strong." The post garnered 26,000 views, indicating that many bar owners share similar worries.
Bars in Seoul are disappearing at an alarming rate. The number of closures is nearly double that of openings, exacerbating the decline in demand for group dining. Struggling with sluggish domestic consumption and rising labor costs, bar owners are particularly affected as drinking culture shifts from group gatherings to individual or small-scale consumption, leading to a significant drop in alcohol sales.
According to the Seoul Business Analysis Service, the number of pubs and taverns in the city fell to 15,595 in the first quarter of this year, down 1,095 (6.6%) from 16,690 during the same period last year. Compared to the first quarter of 2024, when there were 18,179 establishments, this marks a decrease of 2,584 (14.2%) over two years. Pubs and taverns primarily sell alcohol and snacks. The Seoul Business Analysis Service compiles quarterly data on store openings and closures based on business registration information.
The number of closures is approaching double that of new openings. In the first quarter of this year, 313 new pubs and taverns opened, while 597 closed, resulting in 284 more closures than openings. The opening rate was 2.0%, while the closure rate was 3.8%. However, the pace of closures has somewhat eased compared to last year. The number of new openings increased from 283 to 313, and closures decreased from 674 to 597. The closure rate dropped from 4.0% to 3.8%, but the number of closures continues to exceed openings, leading to an overall decline in establishments.
While the overall restaurant industry has shown signs of improvement in the second quarter, bar owners report that their sector is recovering more slowly than others. The Korea Agro-Fisheries & Food Trade Corporation's "2026 Q2 Restaurant Industry Business Trend Index" report indicates that the current index for the overall restaurant industry rose to 78.82, up 2.04 points from the first quarter (76.78). An index below 100 indicates that more businesses reported worsening conditions compared to the same period last year. The current index for bars stands at 72.23, a slight increase of 1.15 points from the previous quarter (71.08), but remains the lowest among major sectors. The outlook index for the third quarter is also lower at 80.19, down 2.35 points from the second quarter's forecast of 82.54.
The decline in bars can be attributed to the sluggish domestic economy, but the changing drinking culture and reduced alcohol consumption are also significant factors. Even when gatherings occur, the trend is shifting away from late-night drinking sessions to shorter lunch meetings or brief first gatherings. Analysts suggest that the decrease in pubs reflects broader changes in dining culture and household structures, including the rise of single-person households.
Overall alcohol consumption is also on the decline. According to the National Tax Service's tax statistics portal, domestic alcohol shipments peaked at 4,073,615 kiloliters in 2015 but plummeted by 26.7% to 2,987,726 kiloliters by 2025. Last year, beer shipments fell by 7.2% to 1,518,931 kiloliters, while diluted spirits decreased by 2.8% to 792,912 kiloliters. In contrast, shipments of general distilled spirits, which include fruit wines, increased by 6.6% to 4,056 kiloliters. Shipments of general distilled spirits rose from 1,785 kiloliters in 2023 to 3,805 kiloliters in 2024 and 4,056 kiloliters in 2025.
An industry representative stated, "As group gatherings decline and single-person households increase, the consumption of large quantities of alcohol in social settings continues to decrease. The industry is also shifting its focus to low-alcohol and smaller-sized products to cater to individual preferences."
* This article has been translated by AI.
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