Recently in July of 2023, Kakao Taxi’s introduction of tip instantly became a hot topic due to its presence as the market-dominating enterpriser. Kakao T encouraged their passengers to provide tips to the drivers from 1000 won to 2000 won if they have been highly satisfied with the service. However, Kakao Taxi’s tipping services reiterated the public disapproval of tipping in Korea. Similarly, Tada and IM Taxi, the competing taxi companies have also originally introduced the tip function for the Korean taxi platform market in 2019 and 2021. In both cases, the issue of tipping has been controversial in terms of additional payment.
Tipping is an unfamiliar custom for Koreans, but it is being introduced in Korean industries, such as cafés and taxis. However, many Korean citizens do not welcome the application of tip culture in Korea.
In recent years, tipping has been criticized by many people in the United States. The term “tipflation,” which describes inflation in tip prices, shows how burdensome American citizens feel. George Mason University Economics professor Roderick Rothwell expressed tipping as “terrible.” Additionally, he adds, “One of Korea’s merits is no tip.”
The Korean perspective is quite different from America and Europe in cultural, legal, and economic contexts. Many Koreans feel uncomfortable paying tips since ‘Dum’ (giveaway in Korean) and free deliveries are expected in Korea. ‘Dum’ can be understood as a free and generous action that is carried without expectations for additional payment. That is why some people think that the service should be voluntary or even a duty and do not consider such actions to be paid back by the customer. They feel that tipping is very strange and unnecessary. Furthermore, especially in restaurants, all prices including surtax are part of the final price which is shown on the menu to their customers., including sales tax. If restaurants demand consumers pay tips not included in the final price, it is illegal.
Following the 2020 Covid-19 pandemic and high interest rates, Korea entered a tough economic period. This made many Koreans sensitive to prices and feel that tipping is financially burdensome. Most are worried about the use of tipping as a delivery charge as they do not want to pay more than they already do. Thus, whether or not people choose to tip others for the service that they receive is highly controversial and a personal matter for the individual to decide upon.
Written by Dongju Lee | Staff Writer
Revised by Madison Sailakkham | Managing Editor