Luxury cakes have emerged as seasonal highlights in South Korea's hotel industry, appealing to consumers seeking something special for Christmas, but they have drawn criticism as well as praise, thanks to their high prices.

On Nov. 25, Hotel Shilla showcased "The Taste of Luxury," a Christmas cake priced at 400,000 won ($285), up 30 percent from the hotel's most expensive Christmas cake last year. According to the hotel, this year’s version has 25 percent more premium winter truffles and includes Chateau d'Yquem dessert wine, enhancing its complex flavor profile.

Despite the hefty price tag, preorders have already sold out, with many customers placing reservations weeks in advance, the hotel said. "Our cakes require exceptional craftsmanship and top-tier ingredients. The production process is highly detailed and time-intensive, contributing to the price," a Hotel Shilla official explained.

Other five-star hotels have joined the luxury cake trend. Grand InterContinental Seoul Parnas’ "Wish Wheel," priced at 350,000 won, comes with a rotating chocolate Ferris wheel and hidden compartments filled with artisanal chocolates. Limited to 50 units, it sold quickly upon release.

Industry insiders explained that the trend aligns with the growing popularity of "experience-driven consumption."

"Luxury cakes appeal strongly to those embracing 'small luxuries' and experiential trends, particularly among Millennials and Generation Z, who value unique, premium offerings," said an industry insider who requested anonymity. "Consumers today are willing to spend more on items that combine aesthetic value with memorable experiences."

Meanwhile, consumers have shown mixed reactions. Some balk at the sky-high prices, while others are willing to splurge.

"The craftsmanship is impressive, but spending 400,000 won on a cake feels excessive -- it’s equivalent to my monthly grocery budget," said one Seoul office worker in her late 30s.

In contrast, Kim Su-young, a 23-year-old college student in Seoul, said, "It’s Christmas -- it only comes once a year, so I think it’s okay to splurge a little. Many of my friends have already showcased these artistic cakes on Instagram."

Kim also noted that such luxury cakes, though expensive, are still more affordable than a hotel stay, making them a relatively accessible treat for the season.

Lee Eun-hee, a consumer studies professor at Inha University, commented that this dichotomy reflects broader consumer trends.

"The appeal of small luxuries lies in their ability to cater to consumer desires, but excessive pricing risks alienating others. For many, the once-a-year nature of Christmas and the chance to celebrate justify such splurges, yet it also highlights the growing disparity in spending habits," Lee said.

This widening gap is evident in the coexistence of premium cakes and budget-friendly options in the market.

CJ Foodville’s Tous les Jours has introduced Christmas cakes starting at 19,000 won, such as the "Lovely Holiday" cake, while CU convenience stores are offering petite cakes priced as low as 9,980 won. SPC’s Paris Baguette has also unveiled options at around 30,000 won.

"We aim to provide affordable cakes that still bring festive joy," said an official from BGF Retail, the operator of CU convenience stores. "Our strategy focuses on balancing quality with price, ensuring customers can celebrate without financial strain, even in these challenging economic times."