logo
Rise of Korea's dollar store Daiso explained in 2 minutes

Rise of Korea's dollar store Daiso explained in 2 minutes

Korea Herald04-05-2025

As a place where affordability meets variety, Korean dollar store chain Daiso has ridden a steep growth trajectory over its three decades of history.
The store's value proposition shines even brighter amid soaring inflation, with virtually every category in stock at affordable prices between 1,000 won ($0.70) and 5,000 won -- from everyday essentials to small luxuries that provide a sense of indulgence.
Last year, Daiso's annual revenue nearly reached 4 trillion won, coming in at 3.96 trillion won -- a 14.7 percent increase from the previous year. Operating profit rose even more sharply, soaring 41.8 percent year-on-year to 371.1 billion won.
Now fully Korean-owned
1992: Park Jeong-bu founded the household goods retailer Asung Industries, inspired by the Japanese 100-yen shop business model. The name Asung means to succeed in Asia.
1997: Park officially established the company under the name Asco Even Plaza in Cheonho-dong, eastern Seoul. It became the first company in Korea to adopt a flat-rate pricing model.
2001: Japan's 100-yen shop Daiso Sangyo acquired a 34.21 percent stake in Asung Industries, investing around 400 million yen, equivalent to around 4 billion won in today's value. Following the investment, Asung Industries changed its name to Asung Daiso.
2023: Asung Daiso's parent company, Asung HMP, reacquired the entire 34.21 percent stake from Daiso Sangyo, raising its total ownership from 50.02 percent to 84.23 percent in a deal estimated at around 500 billion won.
With the transaction, the company became fully Korean-owned. The remaining shares are owned by founder Park Jeong-bu's two daughters.
Growth fast-tracked
While Daiso posted annual sales of just 20.4 billion won back in 2001, it first surpassed 100 billion won in revenue in 2007. Its rapid growth began in the 2010s, with its sales skyrocketing to 500 billion won by 2011, marking a fivefold increase in just four years.
The company first reached 1 trillion won in revenue in 2015, followed by a breakthrough of 2 trillion won in 2019 and 3 trillion won in 2023.
Contrary to industry expectations, Daiso's revenue fell just short of surpassing 4 trillion won last year, reaching 3.96 trillion won.
Meanwhile, its operating profit, which hovered around 20 billion won annually from 2021 to 2023, exceeded 30 billion won for the first time last year.
With its uniform pricing strategy, Daiso has consistently priced over 80 percent of its products below 2,000 won in a six-tier pricing structure: 500, 1,000, 1,500, 2,000, 3,000 and 5,000 won.
Carrying around 30,000 different products across a wide range of categories, Daiso has effectively cut costs by streamlining its distribution channels and placing large-volume orders with suppliers.
These efforts have helped the company achieve economies of scale, lower its cost ratio and improve overall profitability.
In the early 2000s, Daiso had fewer than 100 stores. By 2005, the number had surpassed 500 and reached 1,000 in 2015. Today, there are more than 1,500 stores nationwide.
What's next?
Daiso is broadening its reach in beauty and fashion.
Since entering the cosmetics market in 2021, the company has rapidly diversified its product lines and brand collaborations. Major beauty players such as Amorepacific and LG Household & Health Care have even launched Daiso-exclusive cosmetic lines.
Daiso is boosting its e-commerce operations via its app, which offers services like same-day delivery.
In line with its growth, the company is zeroing in on expanding its logistics infrastructure, with plans to open new hub centers in Sejong City by 2027 and in Yangju, Gyeonggi Province, by 2028, in addition to its three existing logistics centers.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Korean battery-makers push President Lee for direct subsidies
Korean battery-makers push President Lee for direct subsidies

Korea Herald

time4 hours ago

  • Korea Herald

Korean battery-makers push President Lee for direct subsidies

Korean firms seek bolder funding as Chinese rivals leverage robust government backing South Korean battery manufacturers are urging President Lee Jae-myung to act as they face slowing electric vehicle demand and intensifying competition from Chinese rivals increasingly dominating global markets. On May 31, three days before the presidential election, Lee wrote in a Facebook post, 'I will recharge the South Korean economy with K-batteries,' underscoring his belief that the battery industry is key to driving Korea's next economic leap. Lee's pledges included strengthening research and development to secure cutting-edge technologies such as all-solid-state batteries; introducing domestic production tax incentives; creating a "battery triangle belt" connecting the Chungcheong, Yeongnam, and Honam regions; increasing battery demand through energy storage systems; and nurturing the battery recycling industry. Calls for IRA-style subsidies While industry insiders are optimistic about the domestic tax incentives, they anticipate a more direct form of financial support from the government. Lee's tax benefit pledge offers tax breaks for companies producing and selling battery products in Korea, similar to the US Advanced Manufacturing Production Credit under the Inflation Reduction Act. However, AMPC also includes options like 'cash refunds' and 'third-party transfers' in addition to tax benefits. 'If we could receive cash returns, we'd have more flexibility to expand investments in global markets — particularly in the US, where rising tariffs on automobiles and parts are already dragging down the EV market,' said an industry source on condition of anonymity. The source emphasized that additional support measures are needed, pointing out that unlike China, which offers subsidies from direct funding to state-led R&D programs, the Korean government has only granted corporate tax credits. Under the Act on Restriction on Special Cases Concerning Taxation, the battery industry is designated a national strategic technology, making it eligible for approximately 15 percent and 30 percent tax credits on facility investments and R&D, respectively. However, these credits apply only to companies that are generating taxable profits. In the first quarter, Korea's top three battery makers — LG Energy Solution, Samsung SDI, and SK On — all reported operating losses, even when factoring in benefits from AMPC. As a result, they are likely ineligible for domestic tax breaks, despite having collectively borrowed 49.6 trillion won ($36.5 billion) for large-scale investments both at home and abroad. Chinese surge Experts suggest that even with the battery sector's strategic importance, direct subsidies from the Korean government remain unlikely. 'Korea has traditionally been wary of direct funding due to the associated risks and concerns over misusing taxpayer money,' said Kim De-jong, a business professor at Sejong University. 'In contrast, while China provides massive subsidies, it often gains substantial control over the company's management and operations.' Kim added that more feasible alternatives to direct subsidies could include offering discounted rates on electricity and water for domestic production facilities. Meanwhile, Chinese battery giants CATL and BYD have strengthened their grip on the global EV market. According to SNE Research, CATL and BYD held market shares of 38.1 percent and 17.3 percent, respectively, as of the latest period, up from the previous year. LG Energy Solution ranked third but saw its share fall from 12.3 percent to 10.2 percent. SK On and Samsung SDI also experienced declines, with market shares dropping to 4.3 percent and 3.3 percent, respectively.

Samsung chief visits Songdo to boost bio push
Samsung chief visits Songdo to boost bio push

Korea Herald

time9 hours ago

  • Korea Herald

Samsung chief visits Songdo to boost bio push

Samsung Electronics Chair Lee Jae-yong visited Samsung Biologics' campus in Songdo, Incheon, on Monday, a move interpreted by industry observers as an indication of his commitment to nurturing the bio sector as the group's next major growth engine following semiconductors. According to industry sources, the chair toured the Songdo campus of Samsung Biologics alongside key executives, including Samsung Electronics Vice Chair Jung Hyun-ho and Samsung Biologics CEO John Rim. During the visit, he reportedly inspected production facilities and process equipment and held strategic discussions with senior management. Since assuming leadership of Samsung, Lee has emphasized the importance of developing the bio business into a future growth pillar on par with semiconductors. In 2022, he attended the completion ceremony of Samsung Biologics' Plant 4 on the Songdo campus. Samsung Biologics surpassed 4 trillion won ($2.9 billion) in consolidated annual revenue last year, becoming the first Korean biopharma company to reach the milestone. In a strategic move to bolster competitiveness, the company announced on May 22 the spinoff of Samsung Bioepis into a newly established holding company, Samsung Epis Holdings. Under the reorganization, Samsung Biologics will continue focusing exclusively on its core CDMO operations. Samsung Epis Holdings will serve as an R&D-driven holding company responsible for biosimilar development, new technology investment and global strategy planning. By structurally separating its two growth pillars — CDMO and biosimilars — Samsung aims to build a more agile and responsive system that can better meet the demands of customers, investors and the broader market.

Korean biopharma firms gear up for record presence at BIO USA 2025
Korean biopharma firms gear up for record presence at BIO USA 2025

Korea Herald

time10 hours ago

  • Korea Herald

Korean biopharma firms gear up for record presence at BIO USA 2025

Samsung Biologics to showcase CDMO scale-up, digital transformation with largest Korean booth Korean pharmaceutical and biotechnology companies are gearing up for a strong presence at the 2025 BIO International Convention (BIO USA), one of the world's largest biopharma exhibitions, which will take place in Boston starting June 16. Organized annually by the Biotechnology Innovation Organization, BIO USA rotates among major US biotech hubs and serves as a premier global platform for industry leaders to explore strategic partnerships and collaborations. This year's convention, held under the theme 'The World Can't Wait,' will run from June 16 to 19 at the Boston Convention & Exhibition Center. The event is expected to draw more than 9,000 companies from 88 countries and over 20,000 professionals from across the biopharma sector. Roughly 80 Korean companies and organizations will participate by setting up booths. Samsung Biologics Samsung Biologics, one of the largest exhibitors, will mark its 13th consecutive year taking part in the event. It will set up a 167-square-meter booth at the entrance of the exhibition hall — the area with the highest foot traffic — to maximize visibility and draw visitor attention. The booth will showcase the company's expanding contract development and manufacturing organization capabilities through high-tech features such as an LED display wall and interactive touchscreens. These elements are designed to communicate Samsung's advanced service offerings with a strong emphasis on digital transformation in biopharma. Highlights will include a comprehensive look at Samsung Biologics' latest advancements, such as the recent launch of its fifth manufacturing plant, boosting its total production capacity to 784,000 liters — among the highest in the world. The company will also spotlight its capabilities in multi-specific antibody development, its newly introduced antibody-drug conjugate services and AI-driven operational systems, all of which support its goal of becoming a global top-tier CDMO. Other leading Korean CDMO and CMO firms — Celltrion, SK Biopharmaceuticals and Lotte Biologics — will also be attending, competing for new contracts against major players from the US, China and Japan. Celltrion, participating for the 16th year, will operate its own booth to promote products and engage with potential partners, while SK Biopharmaceuticals plans to focus on increasing global brand recognition through a series of high-level business development meetings. Lotte Biologics will showcase its ADC production facilities at the Syracuse Bio Campus and unveil the development roadmap for its Songdo Bio Campus Plant 1, scheduled to begin commercial operations in 2027. Although Daewoong Pharmaceutical and Hanmi Pharmaceutical will not operate a booth at the event, they will participate through business meetings, aiming to strengthen their global presence by showcasing ongoing research and development efforts in new drug discovery. The Cha Vaccine Institute will use the event to promote its shingles (CVI-VZV-001) and hepatitis B (CVI-HBV-002) vaccines, focusing on licensing and joint development opportunities. The institute aims to build partnerships across Southeast Asia, the Middle East, Europe and Latin America to explore co-development and tech transfer prospects. The Cha Vaccine Institute will also participate in the company presentation sessions and the Korea Pavilion pitching event, where it will outline its research pipelines and market strategies. 'We will introduce our proprietary adjuvant platform and vaccine development capabilities at BIO USA, aiming to turn this exposure into real business outcomes,' said Yeom Jeong-seon, CEO of the Cha Vaccine Institute. Meanwhile, Korea BIO will play a significant role at the convention. The Korea Pavilion will feature a record 51 Korean companies, and Korea BIO will facilitate discussions with the US BIO association on key issues, including customs regulations, drug pricing and supply chain resilience, while also providing a partnering platform for domestic companies. According to an industry insider, Korea stands to benefit significantly from shifting global dynamics at this year's BIO USA. 'As US-China tensions reshape the global biotech supply chain, Korean firms that can quickly adapt to geopolitical shifts are well-positioned to secure major deals. Their strong technological base and aggressive manufacturing scale-up efforts make them attractive alternatives to Chinese firms facing regulatory hurdles, potentially positioning Korea as a central beneficiary in the new global order,' the official said, on condition of anonymity.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store