Convenience Stores Ride the Korean Wave... Domestic Convenience Store Industry Accelerates Overseas Expansion

BGF Retail CEO Geonjun Lee (fourth from the left) and Mynews Holdings CEO Dang Tai Lok (fourth from the right) are posing for a commemorative photo after signing the license agreement for CU's entry into Malaysia.

[Asia Economy Reporter Seungjin Lee] The domestic convenience store industry is accelerating its expansion into overseas markets. With intense competition in the domestic market, where there is one store per 1,200 people, companies plan to seek growth engines in overseas markets where the Korean Wave is gaining momentum.

According to the distribution industry on the 13th, CU will be the first in the industry to enter the Malaysian market. BGF Retail, which operates CU, signed a brand license agreement with MyCU Retail, a subsidiary of Malaysian company MyNews Holdings.

MyNews Holdings is a convenience store specialist company that has been operating the local convenience store 'MyNews.com' in Malaysia since 1996. As of this month, it operates about 600 stores locally. It is the second largest in the Malaysian convenience store market (the largest local brand).

The first CU store in Malaysia is scheduled to open in the first half of next year. Starting with 50 new stores in the first year of business, the plan is to expand the number of stores to over 500 within five years, aiming to become the number one in the local industry.

Previously, CU entered Mongolia in 2018 and expanded to 100 stores, firmly maintaining its position as the number one convenience store chain locally. CU has spared no investment, including building a logistics center locally to ensure smooth supply, growing to rank within the top three in Mongolia's retail industry.

A local Vietnamese customer is taking a certification photo at the convenience store Saetbyeol photo booth installed in GS25 Vietnam.

GS Retail, which operates GS25, has also recently started targeting overseas markets. Last month, GS Retail signed a partnership agreement with Mongolia's Shunkhlai Group to open GS25 convenience stores in Mongolia. This is GS25's second overseas market entry after Vietnam.

The two companies aim to open the first GS25 store in Ulaanbaatar, the capital of Mongolia, in the first half of next year, with a goal of opening a total of 50 stores within the year. GS Retail plans to develop and apply GS25 services such as 'Our Neighborhood Delivery' and 'Half-Price Parcel' in forms suitable for the Mongolian market.

GS25's entry into Mongolia marks its second overseas market after Vietnam. GS Retail opened the first GS25 store in Ho Chi Minh City, Vietnam, last year and currently operates 72 stores. GS25 Vietnam plans to expand to more than 2,000 stores nationwide by 2028.

An industry insider said, "The domestic convenience store market is highly competitive, so overseas markets are seen as new growth engines," adding, "Cases of Korean-style convenience stores entering overseas markets are increasing, and a Korean Wave of convenience stores is expected to spread abroad."

This content was produced with the assistance of AI translation services.