Why Michelin-Starred Restaurants Are Vanishing in Korea: A Deep Dive into the Fine Dining Struggle

Recently, Chef Ahn Sung Jae, who appeared as a judge on Netflix’s cooking show Culinary Class War, has been gaining attention. As the only chef in Korea to run a Michelin 3-star restaurant, Mosu Seoul, Chef Ahn stood his ground during intense discussions with culinary icon Baek Jong Won on the show. However, the spotlight on Mosu revealed a shocking reality: all of Korea’s Michelin 3-star restaurants have either closed or lost stars. So, what’s behind the disappearing Michelin-starred dining scene in Korea?

Chef Ahn opened Mosu in 2016 in San Francisco, launching with a dinner-tasting menu priced at $195, making it the priciest new restaurant in the city at the time. Though the road was rocky at first, things turned around when Mosu earned its first Michelin star. Fast-forward to 2017, Chef Ahn brought Mosu to Seoul’s trendy Hannam-dong with backing from CJ CheilJedang. Starting with 1 Michelin star in 2019, Mosu climbed to 2 stars from 2020 to 2022 and finally reached the coveted 3-star status in 2023. However, with the closure of fellow 3-star restaurants Gaon and La Yeon, Chef Ahn became Korea’s sole 3-star chef.

However, Mosu Seoul is currently closed. Reports suggest that Chef Ahn’s contract with CJ CheilJedang ended, and differences in business direction ultimately led to the decision to shut down. While a new location was expected to open in June, delays have pushed Mosu’s reopening this winter, with Itaewon rumored to be the next spot.

Before Mosu’s rise, Gaon held the title as Korea’s first Michelin 3-star restaurant. Operated by the Gwangjuyo Group, Gaon was known for its elegant takes on modern Korean cuisine, using premium ingredients like lobster tteokbokki. But despite its success, the high costs associated with fine dining—think top-notch ingredients, luxe interiors, and skilled labor—made turning a profit nearly impossible. After six years of financial losses, Gaon closed its doors in 2023, unable to recover from the impact of the pandemic.

As more Michelin-starred restaurants face closure, industry experts point to the same struggles: soaring labor costs, pricey ingredients, and low customer turnover make profitability a challenge. Fine dining was once all the rage, with reservations nearly impossible to get. But with the rise in overseas travel and a general consumer slowdown, fine dining is now feeling the heat.

“Restaurants that once thrived, largely thanks to social media, are struggling due to the economic downturn,” one industry insider explained. “Raising prices might help, but that risks alienating customers.”

And this isn’t just a Korean problem. According to The Economist, Professor Daniel Sands of the University of London’s Business School found that as of 2019, about 40% of Michelin-starred restaurants in New York had closed. The main reason? Fame drives up costs. As restaurants gain attention, ingredient costs soar, chefs demand higher salaries, and management becomes stretched too thin. Many Michelin-starred restaurant managers feel pressured to focus on external ventures, like writing or media appearances, which can take their attention away from the kitchen and hurt their competitiveness.