Top two chains CU, GS25 target $10 million in exports this year
South Korea’s convenience store chains, led by industry frontrunners CU and GS25, are making bigger waves globally, riding the K-food boom with their exclusive products.
GS25, the country's largest convenience store brand by sales, is solidifying its presence in overseas markets with its YouUs private-label products and exclusive offerings at the forefront.
Strategic partnerships — most notably a collaboration with Netflix to create Squid Game-inspired snacks — have also played a key role in driving this momentum.
“Korean convenience stores, with savvy marketing strategies, have become hubs for showcasing the latest Korean food trends abroad,” said an industry official, explaining the expansion momentum behind the convenience chains.
Reaching 30 countries across Asia, Africa, North America, the Middle East and Europe, GS25's operator GS Retail saw its export revenue soar to $9 million last year, up from $3.4 million in 2020.
Beyond its expanding export volume, GS25 has been cementing a strong physical presence abroad, operating 355 stores in Vietnam and 270 in Mongolia as of January.
“We plan to broaden our product lineup with K-desserts while expanding into new markets through retail partnerships, including those for Halal food products,” said a GS Retail official.
GS25's archrival CU is also bearing fruit from its overseas push.
The export volume of BGF Retail, the operator of CU, shot up to $8 million last year, up 23 percent from $6.5 million in 2021.
Driving its export growth is a diverse lineup of food products under CU's private brand, Heyroo, which reaches over 20 countries, including the US, China, the UK and the Netherlands. It also boasts exclusive products like the popular Yonsei Milk Cream Bread, a standout favorite among CU offerings.
Last year, CU became the first Korean convenience store chain to secure a dedicated display for 15 of its private-label products at Japan’s largest discount retailer, Don Quijote.
For CU, Mongolia leads the way with 460 stores, followed by Malaysia with 150 and Kazakhstan with 30, as of February. According to a CU official, its proprietary products account for approximately 50 percent of total sales at its international locations.
“CU-exclusive products like Yonsei Milk Cream Bread are flying off the shelves in Mongolia, while in Malaysia, Korean-style fried chicken and tteokbokki rank among the top-selling products,” the official said.
The global scope of convenience store chains is extending even further, with growth plans gaining momentum in the years ahead.
CU targets 500 outposts in Mongolia by this year, another 500 in Malaysia by 2028 and 500 more in Kazakhstan by 2029. Meanwhile, GS25 is picking up speed, setting its sights on hitting 1,500 international locations by 2027.
Korean food exports have been on a steady upward trajectory over the past decade. According to the Korea Trade Statistics Promotion Institute, K-food exports surged from $3.51 billion in 2015 to $7.02 billion in 2024, with an annual growth rate of 8 percent.
By No Kyung-min (minmin@heraldcorp.com)
