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The Star
a day ago
- Business
- The Star
South Korea's convenience stores compete with ultra-cheap options as restaurant prices soar
SEOUL: As food prices keep climbing in South Korea, more people are reaching for ultra-cheap convenience foods to balance their everyday costs. Some of the most popular items now sell for less than 1,000 won (94 cents). Convenience store chains like CU and GS25 are seeing a boom in low-cost, ready-to-eat items that appeal especially to students, office workers, and low-income families. At CU, nearly one-third of all ready-made meal sales from January to April came from residential neighbourhoods, signalling that more consumers are swapping restaurants for affordable meals close to home. The strongest growth is in ultra-cheap products. CU's private-label instant noodles, 'Deuktem Ramyeon'-which means 'lucky find' - sell for just 480 won per pack. That is roughly half the price of standard instant noodles. Sales of the product jumped 37.5 per cent in the first three weeks of June compared to the same period in 2024. At GS25, another major chain, sales of items priced under 1,000 won have risen sharply for three consecutive years, including a 46.5 per cent increase in 2024. Retailers are also expanding into budget milk, eggs, and ready-made rice. Earlier in June, GS25 introduced 'Hyeja Baekmibap', a 1,000-won microwavable rice bowl. 'Hyeja' is Korean slang for items that deliver more value than expected for their price. To maintain low prices without sacrificing quality, retailers are adopting a strategy known as 'reverse development', in which the final price is set first, and the product is developed within that limit. GS25's Hyeja Baekmibap was created under this model to meet the fixed 1,000-won price point. CU has followed a similar path, releasing milk drinks priced at 880 won and 'Deuktem Eggs', a 15-egg pack priced at 4,900 won. BGF Retail reports that sales of Deuktem Eggs rose 31.5 per cent in June, as national egg prices continue to climb. The broader economic context helps explain the shift. The Bank of Korea reports that since 2021, prices for daily necessities, including food and basic goods, have increased by 19.1 per cent. That is significantly higher than the overall inflation rate of 15.9 per cent during the same period. The central bank identifies processed food costs as a key contributor to the gap. Lower-income households have been hit especially hard. According to Statistics Korea, families in the bottom 20 per cent income bracket spent an average of 434,000 won per month on food in 2024, nearly 39 per cent more than five years ago. In comparison, food spending across all households rose by about 26 per cent. - The Korea Herald/ANN
Korea Herald
a day ago
- Business
- Korea Herald
Convenience stores compete with ultracheap options as restaurant prices soar
As food prices keep climbing in South Korea, more people are reaching for ultra-cheap convenience foods to balance their everyday costs. Some of the most popular items now sell for less than 1,000 won (74 cents). Convenience store chains like CU and GS25 are seeing a boom in low-cost, ready-to-eat items that appeal especially to students, office workers, and low-income families. At CU, nearly one-third of all ready-made meal sales from January to April came from residential neighborhoods, signaling that more consumers are swapping restaurants for affordable meals close to home. The strongest growth is in ultra-cheap products. CU's private-label instant noodles, 'Deuktem Ramyeon'—which means 'lucky find'—sell for just 480 won per pack, about 35 cents. That's roughly half the price of standard instant noodles. Sales of the product jumped 37.5 percent in the first three weeks of June compared to the same period last year. The strongest growth is in ultra-cheap products. CU's private-label instant noodles, 'Deuktem Ramyeon,' which means 'lucky find,' sell for 480 won per pack, about 35 cents. That's roughly half the price of a standard pack of instant noodles. Sales of the product surged 37.5 percent in the first three weeks of June compared to the same period last year. At GS25, another major chain, sales of items priced under 1,000 won have risen sharply for three consecutive years, including a 46.5 percent increase in 2024. Retailers are also expanding into budget milk, eggs, and ready-made rice. Earlier this month, GS25 introduced 'Hyeja Baekmibap,' a 1,000-won microwavable rice bowl. 'Hyeja' is Korean slang for items that deliver more value than expected for their price. To maintain low prices without sacrificing quality, retailers are adopting a strategy known as 'reverse development,' in which the final price is set first and the product is developed within that limit. GS25's Hyeja Baekmibap was created under this model to meet the fixed 1,000-won price point. CU has followed a similar path, releasing milk drinks priced at 880 won and 'Deuktem Eggs,' a 15-egg pack priced at 4,900 won. BGF Retail reports that sales of Deuktem Eggs rose 31.5 percent this month, as national egg prices continue to climb. The broader economic context helps explain the shift. The Bank of Korea reports that since 2021, prices for daily necessities, including food and basic goods, have increased by 19.1 percent. That's significantly higher than the overall inflation rate of 15.9 percent during the same period. The central bank identifies processed food costs as a key contributor to the gap. Lower-income households have been hit especially hard. According to Statistics Korea, families in the bottom 20 percent income bracket spent an average of 434,000 won per month on food in 2024, nearly 39 percent more than five years ago. In comparison, food spending across all households rose by about 26 percent.
Korea Herald
27-05-2025
- Business
- Korea Herald
CU to launch in US with Hawaii debut
CU, South Korea's leading convenience store brand operated by BGF Retail, is set to launch in the United States through a master franchise agreement with Hawaii-based CU Hawaii LLC. This marks the first time a Korean convenience store chain has entered the US market. The partnership was formalized at a signing ceremony attended by BGF Retail CEO Min Seung-bae and CU Hawaii LLC CEO Robert Kurisu. The companies plan to open CU's first store in Hawaii this October, followed by an expansion into key commercial districts across the state. Under the agreement, CU Hawaii LLC will operate the stores and collect royalties, leveraging CU's established brand and business model. With over 10 million annual visitors and a high concentration of Asian and mixed-ethnicity populations, demand is growing for affordable, high-quality food and retail services in Hawaii, CU said. CU plans to localize its offerings through a hybrid retail model that blends Korean-style ready-to-eat meals and snacks with US consumer preferences. Examples include kimbap and instant ramyeon as well as locally inspired fusion items such as poke and loco moco. The stores will also incorporate retail technologies, including self-checkout zones and optimized layouts. Kurisu, who initiated the partnership after several visits to Korea, said Hawaii's limited retail choices and rising costs created a strong need for a new distribution model. 'CU is a fresh, compelling concept that fits the Hawaiian market perfectly,' he said. CU currently operates 680 stores across Mongolia, Malaysia and Kazakhstan, and seeks to further globalize the Korean convenience store model through its US debut.
Korea Herald
01-05-2025
- Business
- Korea Herald
CU launches visa support services for foreign nationals
Convenience store chain CU announced on Thursday that it launched visa support services tailored to foreign residents in Korea, aiming to assist with application processes and enhance accessibility. Offered in partnership with K-Visa, a the country's leading visa service provider, the new service will cover a wide range of needs including marriage, employment, investment, immigration and permanent residency. By scanning a QR code displayed at CU stores and filling out a brief form, customers are instantly connected with a licensed administrative professional who can assist with their specific visa requirements. Support is offered in four languages — English, Chinese, Japanese and Vietnamese — and users can monitor the progress of their applications in real time, from submission through review to final approval. The service is priced competitively, with fees approximately 50 percent lower than the industry average. Visa extension services, for example, are available starting at just 20,000 won ($14), reportedly the lowest rate in Korea. Initially, CU will roll out the service at around 50 stores located in areas with large foreign populations, including Daerim, Hongdae, Itaewon and Dongdaemun in Seoul. Based on customer feedback, the company plans to expand the offering to 1,000 stores by the end of the year. In addition, CU is preparing to introduce a startup package for foreign entrepreneurs as well as a recruitment support program for foreign job seekers. 'CU is the first in the industry to offer visa agency services, making it easier for foreign residents to manage visa-related tasks at their nearest convenience store,' said Yoo Sung-hwan, head BGF Retail's service platform team. 'We will continue to develop innovative products and services that appeal to both local and international customers.'
