GS25 Partners with Leading Local Convenience Store Chain to Enter Malaysia Market

GS Retail Convenience Store Division Head Executive Director Jae-hyung Jeong (right) and KK Group Founder Chairman are taking a commemorative photo.

[Asia Economy Reporter Jeon Jinyoung] GS25 has partnered with the local retail giant KK Group to make a full-scale entry into the Malaysian market.

According to GS Retail on the 11th, GS25 and KK Group signed a Memorandum of Understanding (MOU) on the 9th in Malaysia, with top executives from both companies attending, to open and operate GS25 stores in Malaysia.

The two companies agreed to actively work towards opening the first GS25 store in Malaysia next year and expanding to 500 stores within five years. The partnership will take the form of a master franchise, with GS Retail receiving royalties.

The local partner, KK Group, is the number one local convenience store operator in Malaysia, running 610 KK Mart stores. KK Group also operates hotels and resorts as major businesses, has a broad customer base, and is loved by locals for selling over 100 items at the lowest prices across Malaysia. The group is solidifying its position as a leading retail brand in Malaysia by expanding into coffee shops, beauty salons, and other business areas.

GS Retail has continued to expand its overseas presence through video conferences with various countries even during the COVID-19 period, after successfully launching businesses in Vietnam and Mongolia. In May last year, GS25 and KK Group, which showed strong willingness to cooperate, confirmed mutual intentions through a video conference. Last week, a delegation led by Jeong Jaehyung, Executive Director of GS Retail’s Convenience Store Division, visited Malaysia and finalized the MOU.

KK Group, based on its deep understanding of the local market and extensive distribution experience, has been reviewing the convenience store business with high future growth potential in Malaysia. After independently verifying GS25’s operational capabilities and brand competitiveness, KK Group expressed its desire to collaborate with GS25.

With this MOU for entry into Malaysia, GS25 achieves a milestone as its third overseas expansion following Vietnam and Mongolia, increasing its global market presence to three countries. GS25 plans to showcase the strengths of K-convenience stores and strengthen its global territorial expansion.

Jeong Jaehyung, Executive Director of GS Retail’s Convenience Store Division, said, “This signing ceremony marks an opportunity to showcase the competitiveness GS25 has built over the past 30 years as Korea’s representative convenience store to the world,” adding, “We will continue to accelerate our global expansion by leveraging our brand excellence and the know-how of K-convenience store success.”

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