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Local market saturation, global K-culture popularity fuel overseas franchisee interest

Published: 12 Jan. 2026, 17:34 Updated: 12 Jan. 2026, 19:39

Customers shop at CU Downtown, the first CU Hawaii store in Honolulu, Hawaii [BGF RETAIL]

Since late last year, a CU franchise officer in Seoul has been receiving phone calls almost nonstop. The callers were not asking about opening a franchise in Seoul or Busan, but about Hawaii.

As Korea’s convenience store market reaches saturation at home, chains like CU and GS25 are increasingly drawing interest from would-be entrepreneurs looking abroad. Fueled by the global popularity of Korean culture and aggressive overseas expansion by the industry, Korean convenience stores are emerging as an unlikely export — part retail business, part cultural ambassador.

“I want to spend my retirement in Hawaii,” one prospective franchisee told CU last November, asking about startup costs and even inquiring whether he could first work as a store clerk to gain experience.

The overseas push is accelerating. As of December 2025, CU operated 762 stores abroad, while GS25 had 690. According to BGF Retail, which operates CU, inquiries about opening overseas stores tripled last year to more than 30. GS25, run by GS Retail, reported that inquiries related to Mongolia alone doubled over the same period.

Customers shop at CU Downtown, the first CU Hawaii store in Honolulu, Hawaii [BGF RETAIL]

“Mongolian branches of GS25 pursue a localization strategy that combines the local food culture with the K-food craze,” said a GS Retail official. “Korean-style private label products are particularly popular, and this trend is spreading interest in starting convenience store businesses even in Korea.”

“Most of the people reaching out are familiar with overseas circumstances and have experience commuting to countries where K-convenience stores have already entered or are nearby — such as Mongolia or Kazakhstan,” said a BGF Retail official. “They are often capable of managing local staff in line with local environments.”

The industry’s aggressive overseas expansion comes as store openings in Korea have slowed. The number of convenience stores nationwide stood at 47,826 in November last year — down by over 1,000 from 48,921 a year earlier, according to a Ministry of Trade, Industry and Resources report on major retailers.

Poor domestic performance amid stagnant demand has also become a concern. Although the convenience store industry saw a temporary boost from government-issued consumer coupons last year, high inflation and an economic slowdown continue to weigh heavily.

Meat products are displayed at a local GS25 store in Mongolia. [GS RETAIL]

“While there is still strong domestic interest in opening stores, concerns remain about cutthroat competition and sluggish domestic recovery,” said an industry insider. “We expect synergy from the alignment between aspiring overseas entrepreneurs and the convenience store industry’s overseas expansion strategy.”

“The convenience store sector rapidly expanded its store count in Korea, so it’s now turning its attention to overseas markets where it can secure a competitive edge,” said Jung Yeon-sung, a professor of business administration at Dankook University.

“When entering foreign markets, it is important not to rely solely on the K-wave, but to develop private label products and services that reflect local consumers’ characteristics and needs,” said Prof. Jung.

In fact, convenience store operators are actively customizing store formats and product lines to local tastes as a way to build a broader customer base.

GS25's Tan Ky Tan Quy branch in Vietnam is seen in this photo provided by GS Retail. On Nov. 10, 2025, GS25 collaborated with GS Caltex's lubricant brand Kixx to open a specialized store combining convenience store and motorcycle repair shop. [GS RETAIL]

“Cups of ice sold alongside pouch drinks have become a signature of K-convenience culture and were the top-selling item in November and December [last year],” said a BGF Retail official. “Other top-10 sellers included Korean-style items such as grilled salmon triangle gimbap [seaweed rice roll] and bulgogi gimbap.”

GS25 is offering private label meat products tailored to Mongolia’s meat-centric food culture. Localized products like yeromuk, a traditional Mongolian sausage bread, and nadam khushuur, a fried dumpling, are among the top-selling items.

In November last year, GS25 also opened a specialized store in Vietnam in collaboration with GS Caltex’s lubricant brand Kixx. The hybrid store combines a motorcycle repair shop with a convenience store.

“GS25’s Tan Ky Tan Quy branch in Vietnam serves as a multifunctional space where customers can maintain their motorcycles and buy K-food,” said a GS Retail official. “It’s also a cafe-like place to relax, which has made it particularly popular with Vietnam’s younger generation.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY NOH YU-RIM [[email protected]]