"From Mongolia to Kuwait" BGF Retail Designated as Specialized Trading Company

Last Year’s Direct Export Volume Increased 5.5 Times Compared to Previous Year, Exported Over 300 Products to More Than 10 Countries Worldwide
Domestic SMEs’ Products Showcased at Overseas CU Bases…About 30% of CU in Mongolia and Malaysia Composed of These Products
"Field-Centered Win-Win Program…Consulting for SME Overseas Market Access, Joint Development of Export Products"

At the CU Centerpoint store in Malaysia, local customers are shopping for 'HEYROO Snacks' made by domestic small and medium-sized enterprises.

[Asia Economy Reporter Yuri Kim] BGF Retail announced on the 13th that it has obtained the status of a specialized trading company designated by the Ministry of Trade, Industry and Energy and the Korea International Trade Association. Using this as a stepping stone, the company plans to actively target overseas markets.

A specialized trading company is a qualification granted by the Ministry of Trade, Industry and Energy and the Trade Association to companies with excellent export capabilities such as overseas market development and new product discovery. To obtain this status, companies must meet conditions such as export performance of over 1 million USD in the previous year or an average of the last three years.

Once designated as a specialized trading company, it is recognized as a credible company with proven business performance and import-export experience, allowing it to showcase competitive products to a wider range of countries. It can also receive various government incentives such as insurance and marketing support.

Despite the COVID-19 situation, BGF Retail's direct export volume surged by 449.1% compared to the previous year. The export countries include about 10 countries such as Palau, Kuwait, and Kyrgyzstan. Notably, over 70% of the 300 items, including 'HEYROO Snacks' and 'GET Latte Powder,' are products manufactured by domestic small and medium-sized enterprises (SMEs) and mid-sized companies.

BGF Retail stated that the 5.5-fold increase in export volume within one year is the result of securing its own overseas distribution channels. In 2018, BGF Retail pioneered the Mongolian market for the first time in the industry, introducing Korea’s convenience store systems, products, and services to overseas markets. Subsequently, it opened its first store in Malaysia in 2021 and achieved 100 stores in about 15 months, the shortest period.

Building on this, about 40 SMEs manufacturing CU’s private brand (PB) products have entered the Mongolian and Malaysian markets through CU. Approximately 30% of all products sold at Mongolian CU and Malaysian CU are products from domestic SMEs.

Last year, BGF Retail also obtained all licenses for liquor import and export, and starting this year, it is preparing to export craft beer produced by small-scale breweries in Korea overseas.

As a specialized trading company, BGF Retail will also engage in support projects for SMEs lacking overseas expansion capabilities. Through field-oriented win-win programs such as the Open SME Consultation Day and On-site VOC visits, BGF Retail plans to provide consulting on difficulties faced by excellent domestic SMEs in developing overseas distribution channels and jointly develop and discover export-suitable products.

Won Hwiyun, head of BGF Retail’s Global Trading Team, said, "We are introducing products from excellent domestic SMEs to the global stage through overseas CUs, and demand is rapidly increasing recently due to the influence of K-Culture." He added, "Going forward, BGF Retail will continue to practice ESG (Environmental, Social, and Governance) management that grows together with not only CU but also domestic SMEs as a specialized trading company."

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