In the bustling backstreets of Ulaanbaatar, shoppers file out of a CU convenience store with instant tteokbokki, or simmered Korean rice cake, packs and Samyang spicy noodles tucked under their arms.
Across the Pacific, South Korean snack aisles at New York's H Mart, a leading chain of Asian supermarkets, are brimming with GS25-branded gimbap rolls, sweet potato chips and ready-to-heat bulgogi rice bowls.
Back home, the food chains may be battling stagnation. But abroad, humble Korean convenience, or K-convenience, stores are becoming powerful ambassadors of soft power – and quietly lucrative ones at that.
(Graphics by Daeun Lee) Industry data showed on Wednesday that what began as a domestic retail story is evolving into Korea’s next export hit, with the country’s leading convenience stores witnessing an international sales surge, thanks to the growing global appetite for Korean food and pop culture.
ROBUST DEMAND
The combined export value of products from GS25 and CU exceeded $10 million in the first half, fueled by robust demand not just from overseas branches but also from global supermarkets, specialty stores and Asian grocery chains.
GS Retail Co., the operator of GS25, exported $5.61 million worth of goods in the first six months, on track to reach $13 million by year-end, a 40% jump from last year.
GS25 and CU secure shelf space in Japan’s biggest discount chain Don Quijote (Screenshot captured from Don Quijote's Facebook page) In 2017, its export revenue stood at a modest $180,000. By 2022, that had ballooned to $8.4 million. The number of export product types expanded tenfold over the same period, from 40 to more than 600.
Meanwhile, CU, run by BGF Retail Co., shipped $4.5 million in goods overseas in the first half, reaching more than 20 countries.
Its export sales have grown more than sevenfold in the past five years, from $1.2 million in 2019 to $8 million in 2024.
(Graphics by Dongbeom Yun) SHIFT IN STRATEGY
The surge reflects a shift in strategy.
Korean convenience store operators are no longer relying solely on domestic saturation. With the domestic market approaching maturity, hampered by slowing consumption and stiff competition, their sights have turned outward.
“We’re seeing a meaningful portion of revenue now coming from outside Korea,” said a GS Retail executive. “Demand is especially high for ready-to-eat meals and snacks that embody the K-food trend.”
The export push is no longer confined to their own overseas stores.
Korean food exporters' booth at Thaipex, F&B expo in Thailand (Courtesy of GS25) GS25 supplies over 30 countries, including Vietnam, Indonesia and Mongolia, where it has brick and mortar outlets, as well as to major global chains like North America's H Mart and other local ethnic supermarkets.
CU’s international expansion has also been aggressive. Its stores in Mongolia, Malaysia and Kazakhstan have become showcases for Korean food culture.
Over 50% of CU’s overseas revenue comes from Korean goods, many under its private label brand.
K-FOOD: GATEWAY TO KOREAN LIFESTYLE
“Korean food is a gateway into Korean lifestyle. Korean convenience stores have become micro-cultural hubs,” said a retail industry executive.
A CU employee at CU's first Kazakhstan convenience store outlet in Almaty makes tteokbokki inside the store The companies are also entering new retail frontiers.
GS25 and CU recently secured shelf space in Japan’s Don Quijote, the country’s biggest discount chain known for its eclectic inventory.
The Korean chain stores’ moves are significant given Japan’s traditionally insular retail market and competitive snack and meal category, analysts said.
Other players are jumping on the bandwagon.
Korea Seven, which operates 7-Eleven stores in Korea, exports its private-label goods to Hawaii, Taiwan and Malaysia, offering kimchi-based side dishes and tropical-themed beverages tailored to local tastes.
A long line forms outside 7-Eleven's pop-up store at Lotte World Tower Analysts said the trend illustrates the strength of “K-convenience” as the latest cultural export to piggyback on the success of Korean pop music, drama series and beauty products. And it’s resonating far beyond Koreatown.
“The appeal is both cultural and practical,” said a retail analyst in Seoul. “These products are Instagrammable, affordable and easy to consume. And they deliver the Korean experience in just three microwave minutes.”
Write to In-Soo Nam at isnam@hankyung.com Jennifer Nicholson-Breen edited this article.
