"TODAY's KOSPI (today's KOSPI) 4219"
On the 4th, a sign with this phrase was hung on a pillar at the entrance of Y Cafe inside Yeouido Park in Seoul. The KOSPI index that day opened at 4,219.24, down 0.06% from the previous day's close, and the cafe sells a cup of "today's coffee" (drip coffee) for 4,219 won.
Y Cafe sits across from the securities district, home to the headquarters of Shinhan Investment & Securities and Hanwha Investment & Securities, among others. A person surnamed Park (50), who works at a nearby securities firm, said, "If the KOSPI index climbs to 5,000, the price would be expensive for a cup of coffee, but it would be meaningful in itself, so I think it would be fine to pay that money and drink it."
◇ When it opened in March last year, a cup of coffee was 2,757 won… recently topped 4,000 won
Y Cafe opened on Mar. 29 last year. Since then, it has sold "today's coffee" from 9 a.m. to 11 a.m. pegged to that day's KOSPI index opening level. The price changes every day. The first day's price was 2,757 won, but on the 7th it was 3,963 won. That is 43.7% more expensive in 1 year and 7 months. However, as foreign funds have left the stock market recently, it was 9.4% cheaper compared with the 4th.
A cup of Americano at this cafe costs 3,500 won. Right after opening, "today's coffee" was about 20% cheaper than an Americano, but as the KOSPI index rose, it ended up being about 10% more expensive.
The shop owner, a person surnamed Lee (41), who runs the cafe, said of linking the coffee price to the KOSPI index, "If the KOSPI index falls, customers can drink coffee cheaply, which is nice, and if the index rises, many customers will buy because they feel good," adding, "Even if they don't buy coffee, many customers come to check the KOSPI index."
◇ Plenty of low-priced coffee… "circuit breaker" at 3,500 won for an Americano
A store with a similar concept is also near COEX in Samseong-dong, Gangnam District, Seoul. W Cafe opened in 2012. At the time, the KOSPI index moved in a "box range" between 1,800 and 2,000, and owner Lee Yong-hyun (59) linked the price for fun after noticing the Americano price and the KOSPI index were similar.
Around noon on the 5th, the number "4107.50" was posted on the wall at W Cafe. That is the KOSPI index closing level last Friday (Oct. 31). However, they did not actually charge 4,107 won; the Americano price was 3,500 won.
Lee Yong-hyun said, "At first, I set prices in 500-won increments, wishing for '3000-pi (KOSPI 3000).'" He charged 2,000 won and 2,500 won per cup, but starting in May this year the KOSPI index rose steeply and even broke through the 4,000 level.
There are also many "low-priced coffee" shops that charge 2,000 won or less for a cup, and you cannot keep raising prices forever. In the end, W Cafe triggered a "circuit breaker" on the 13th of last month. When the KOSPI index closed at 3,610.60 on the 10th of last month, thinking "We cannot keep raising coffee prices and still do business," they fixed the price at 3,500 won per cup.
A circuit breaker is a system in the stock market that halts all transactions for a set period during rapid swings to prevent extreme volatility. A nearby office worker, a person surnamed Lee (51), said, "I think the proper coffee price is around 2,000 won," adding, "The KOSPI index has risen too much, and now it feels too expensive to buy and drink."
Lee Yong-hyun said, "If the KOSPI index falls below 3,500, I will link it to the stock price again." Asked what would happen "if the KOSPI index breaks 5,000," Lee said, "Then I will set a circuit breaker around 4,000 won."