TIPPING CULTURE is becoming a controversial matter in many countries including Korea. Recently, a few eateries in Korea have started implementing this practice, which created huge disputes. Some cafes set up tip jars expecting a few dollars of appreciation from the customers and Kakao T, a widespread and dominant Korean taxi-hailing service, introduced a feature that allows customers to give tips to drivers. However, this change in behavior unintentionally pressures customers and is often said to be an inappropriate custom in Korea.

The origin of tipping

   Tipping is a voluntary additional payment made to the workers for their exceptional service. The origin of tipping is disputed, said to stem from serf-masters paying an additional gratuity for servants’ excellent performance in the Middle Ages of Europe or the practice of European nobles paying servants when staying overnight at a villa. Customs like these eventually evolved to become today’s tip culture—customers giving tips to servers for quality service—in a modern commercialized society. This way, customers show appreciation to the workers and workers are more motivated to provide high-quality service.

Minimum wage law

   As tipping became prevalent in the United States, it is often used to pay for workers and meet the U.S. Department of Labor’s expectations regarding minimum wage. However, this practice is unnecessary in Korea. Korea has a set minimum wage law and, regardless of whether they are tipped or not, it is stated by law that all employees must be paid a minimum of ￦9,620 per hour. On the other hand, in the United States, lower minimum wages are allocated with tips gained from customers taken into account. The U.S. Department of Labor recommends the minimum wage for tipped employees to be $2.13 per hour, which is to be combined with tips to reach the federal minimum wage law of $7.25 per hour[2]. 

   However, even if tipping is intended to help employers meet minimum wage requirements, this responsibility should not be passed on to customers. Furthermore, if tipping becomes a new social norm in Korea, employers are likely to be further against increasing the workers’ wages or improving the working environment[3]. This is because the employers’ ultimate goal is to maximize their profit margins. A policy concerning raising a minimum wage law is already controversial and implementing a tipping culture would only worsen the situation.

Unnecessary pressure on both sides

   While tipping is said to be a voluntary payment, it can still put social and financial pressure on customers. According to the research conducted by OpenSurvey, 7 in 10 people were against the tip function that Kakao T introduced[1]. People harshly criticized cafes with tip jars and Kakao T’s newly introduced tipping feature. Workers demanding extra payment on top of the increasing prices from inflation seems to be putting an unnecessary financial burden on them. As seen through the cases in the United States, if tipping becomes normalized, it will become perceived as a part of the customer's duty. The workers will begin to regard it as something they are owed and could negatively react to those who do not meet their standard of big tips, negating its initial purpose of enhancing the service for customers.

Ill-suited to Korean culture

   According to the Food Sanitation Act in Korea, the prices that restaurants display on menus must include the payment for their services[4]. This means that the actions of workers directly demanding and expecting tips from customers are illegal. This ultimately implies that tipping is allowed if it is practiced solely upon one’s willingness. However, the criteria for whether tipping can financially pressure consumers is very vague, and it is a custom that can easily be exploited. Thus, Korean society must remain vigilant before it becomes prevalent and stay away from adopting this custom.

   Furthermore, Korea has a guest-centric culture, which prioritizes the practices to make the experiences of customers positive through their services. The maintenance of an attentive attitude is an inevitable and natural feature of Korean culture, making the customs in Korea different from that of the United States. It would be unsuitable to simply imitate and follow the path of another country’s expectations. An indiscreet adoption of Western tip culture can mean the violation of Korean culture. The act of kindness within relationships between customers and workers would no longer be authentic, but rather it will become materialistic.

[1] The Hankyoreh

[2] U.S. Department of Labor

[3] The New York Times

[4] SBS News