Why does a bowl of ramyun cost 6,500 won at the airport?

Some tenants operating inside airports run by Korea Airports Corporation pay more than 30 percent of their sales in rent, and in some cases the share exceeds half of total revenue, according to data obtained by Yonhap.

Analysts say that while high foot traffic justifies elevated rents at airports compared with ordinary commercial districts, the burden — already steeper than at other high-traffic venues such as department stores and hypermarkets — is ultimately passed on to travelers through higher prices.

Korea Airports Corporation is a state-run enterprise under the Ministry of Land, Infrastructure and Transport that operates 14 airports nationwide, excluding Incheon International Airport, including Gimpo, Gimhae and Jeju airports.

A July settlement statement from a Gimpo Airport tenant obtained by Yonhap shows the business was subject to a revenue-linked rent rate of 36 percent of sales.

The tenant's monthly sales exceed 60 million won ($44,100), of which more than 20 million won goes toward revenue-linked rent each month.

On top of that, the tenant pays a separate base sublease fee, electricity charges, heating and cooling costs, shared consumables fees, labor costs and credit card processing fees.

Experts say a rent rate of 36 percent of sales is exceptionally high, even accounting for the guaranteed foot traffic that makes airports a premium commercial location.

According to Jeopmogaide, a business startup information platform, tenants at other high-traffic venues — including department stores, hypermarkets and hospitals — typically pay rental fees equivalent to 10 to 20 percent of sales.

The competitive bidding structure used to award airport concessions is a key driver of the high rent burden, analysts say.

Korea Airports Corporation places an intermediate operator between itself and individual tenants. Operators selected through competitive bidding then sign separate contracts with individual tenants and collect revenue-linked rent from them.

The corporation collects a commission from the operator but does not directly set the rent rate applied to individual tenants.

An official at one operator familiar with the contract structure said the commission charged to tenants is set by the operator and is not something the airport can intervene in, while also acknowledging that the fees paid to the airport are roughly equivalent to what the operator collects from tenants.

A Korea Airports Corporation official told Yonhap that the corporation charges rent to the operators it contracts with, and that rent rates vary by operator depending on bidding outcomes.

The heavy rent burden is not limited to a handful of tenants. Data on food and beverage store sales and rent obtained from Korea Airports Corporation by People Power Party lawmaker Kim Mi-ae of the National Assembly's Land, Infrastructure and Transport Committee show that combined sales at food and beverage outlets across 14 airports nationwide totaled 865.9 billion won between 2021 and 2025, with rent payments reaching 276.5 billion won over the same period.

Rent accounted for an average of 31.9 percent of sales.

Of the 96 stores that recorded sales last year, 28 paid rent equivalent to 40 percent or more of their revenue, and 10 paid more than half.

Dunkin' Donuts at Gimpo Airport's international terminal paid 65.6 percent of its sales in rent, while Angel-in-us Coffee and Ogada at Jeju Airport's domestic terminal paid 59.2 percent and 58.4 percent, respectively.

Alongside the high rents, food and beverage prices at airports have also risen sharply.

For example, the price of bibimbap at Cheongju Airport — measured at the same store and menu item — climbed 45.5 percent from 11,000 won ($8) to 16,000 won between August 2021 and August this year.

Over the same period, pork cutlet at Cheongju Airport rose 36.4 percent, from 11,000 won to 15,000 won; ramyun at Ulsan Airport increased 30 percent, from 5,000 won to 6,500 won; and udon at Gimpo Airport went up 29.4 percent, from 8,500 won to 11,000 won.

The financial strain on travelers who need to eat at airports is growing.

A 26-year-old office worker surnamed Lee, who recently used Gimpo Airport with friends, told Yonhap the prices were beyond anything she had imagined. "I thought about grabbing a meal before boarding, but the prices were unbelievable," she said. "I just decided to go hungry and eat after arriving at my destination."

Experts say that in high-traffic commercial zones such as airports, steep rents squeeze tenants' profitability and the burden is likely to be passed on to consumers through higher prices or reduced service.

Lee Hong-ju, a professor of consumer economics at Sookmyung Women's University, said airports are a special commercial environment where tenants are guaranteed high foot traffic in exchange for paying high rent. "If the rate exceeds 30 percent, it can put serious pressure on a business's profitability, and there is a very strong likelihood that some of those costs will ultimately be passed on to consumers through price increases or service adjustments," Lee said.

Lee Eun-hee, a professor of consumer studies at Inha University, said airports function as a monopolistic retail space from the consumer's perspective. "When the burden on businesses grows, they have no choice but to raise prices, and in the end the cost is passed on entirely to the consumer," Lee said.