The upscale seafood buffets in Seoul, "Viking's Wharf" and "Crab52," are known for their pricing in U.S. dollars (USD). The unique marketing of displaying and calculating food prices in dollars at domestic restaurants, rather than overseas, has drawn attention.
According to related industries on the 1st, Viking's Wharf currently displays prices at $110 for adults (approximately 150,000 won) and $55 for children (about 75,000 won). Crab52 also lists prices at $200 for adults (around 270,000 won) and $100 for children (about 137,000 won). If consumers wish to pay in won, the prices are calculated based on the final exchange rate announced by IBK Industrial Bank the day before.
Viking's Wharf and Crab52 are operated by Viking Group Inc. This decision was made to reduce the foreign exchange losses related to the food prices charged to consumers. Lobsters and king crabs are seafood imported from the United States and Canada. In this case, local sellers determine the prices based on the market rates at the time of sale and conduct transactions in dollars. The prices inevitably fluctuate with the won-dollar exchange rate. Currently, both locations accept payments in dollars (cash only) and won for food, depending on consumer preference.
So, is there any legal issue with calculating food prices in foreign currency domestically? In short, there is no major problem. It is generally required that transactions between residents (nationals) be conducted in won or domestic payment methods according to administrative interpretations. However, Article 5-11 of the Foreign Exchange Transaction Regulations established by the Ministry of Economy and Finance specifies exceptions that are allowed.
According to this provision, payments for current transactions (ordinary transactions) of up to $10,000 (approximately 13.7 million won) between a resident (national) and a non-resident (foreigner) or between two residents can be made directly in foreign currency. A source from the foreign exchange examination team at the Bank of Korea stated, "If the restaurant only used foreign currency as a payment method and not for exchange services, there is no issue with making payments for food under $10,000."
There are also no issues under the Foreign Exchange Transaction Act when making payments in won at restaurants that display prices in foreign currency. This primarily applies to card payments, where actual charges in won are billed according to the credit card company's automatic exchange rate application, making it compliant.
However, if cash (dollars) is received directly without being exchanged for won at Viking's Wharf or Crab52, there may be violations of the Foreign Exchange Transaction Act and regulations. There are concerns that this might constitute a foreign exchange service, which should not be performed at places not registered for such services. Attorney Hwang In-wook from Daeryuk Law Firm noted, "Currency exchange or foreign exchange transactions are only permitted at institutions registered to handle foreign exchange businesses, and if services similar to those of an exchange were performed (at the restaurant), it could be an issue without proper registration."
The problem is that this could cause confusion for consumers. They might think they need to bring dollars simply because the price is listed in dollars, and the fluctuating prices due to exchange rates prevent consumers from knowing the exact amount they need to pay each time.
The "Fairness in Indication and Advertising Act" and the "Basic Consumer Law" require that clear information be provided to consumers to prevent misunderstandings about products or services. Attorney Hwang In-wook remarked, "There could be legal issues regarding whether consumers accurately perceive the payment amount indicated with numbers in dollars on the menu."
Eunhee Lee, a professor at Inha University, stated, "While guaranteeing the freedom of business activities, it is the responsibility and duty of the company to inform consumers of the accurate payment amount," emphasizing the need for consumers to clearly understand the prices.