SEOUL, July 01 (AJP) - Faced with a saturated market and declining sales at home, South Korea’s leading convenience store brands are racing to expand overseas in a bid to secure new sources of growth.
Major players GS25, CU, and Emart24 are intensifying their international efforts as the domestic retail environment shows signs of fatigue.
According to a May 2025 retail sales report from the Ministry of Trade, Industry and Energy, sales in South Korea’s convenience store sector fell 0.2 percent year-on-year — the second straight month of decline following a 0.6 percent drop in April.
Adding to concerns, the combined number of outlets operated by CU, GS25, and 7-Eleven fell to 48,315 as of May — the first time the total store count has decreased since data tracking began.
The drop underscores what analysts say is a clear turning point: South Korea’s convenience store market, once a driver of rapid retail expansion, has reached the limits of its domestic footprint.
In response, retailers are accelerating efforts abroad.
GS25, operated by GS Retail, currently runs 355 stores in Vietnam and 274 in Mongolia. In Japan, the company has introduced its private-label brand “YouUs” to more than 400 Don Quijote stores through a cross-border product partnership.
CU, under BGF Retail, operates about 480 stores in Mongolia, over 160 in Malaysia, and around 40 in Kazakhstan. The company is also preparing its U.S. debut, with plans to open its first store in Hawaii by October. A local subsidiary has already been established to manage operations.
Emart24, a Shinsegae Group subsidiary, has surpassed 100 stores in Malaysia and recently expanded into Cambodia. On June 30, it announced plans to open South Korea’s first convenience store in India, through a licensing agreement with Jung Brothers Hospitality and the Solitaire Group. The first location is scheduled to open in August in Pune, Maharashtra.
GS25 is in the process of setting up a legal entity in Saudi Arabia, marking its first foray into the Middle East.
These moves reflect a broader industry pivot toward international expansion as domestic opportunities dwindle. Once reliant on the densely populated South Korean market — where convenience stores are ubiquitous and often found just blocks apart — the sector is now looking abroad for long-term sustainability.
“The domestic market has matured, and the competitive landscape has become increasingly intense,” said a retail analyst at Seoul-based Hana Securities. “Overseas expansion is no longer just an option — it’s a strategic imperative.”
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