US doughnut and coffee chain Krispy Kreme is further expanding its Korean footprint with a new franchise agreement.

It has reached a new agreement with Lotteria Co Ltd, part of the Lotte Group, to open 60 new franchise stores in South Korea over the next five years.

The franchisee also plans remodelling more than half of the existing 73 Krispy Kreme stores throughout the country.

“It is fantastic when we can build on existing business relationships to continue the exciting growth we are experiencing in Asia and around the world,” said president Jeff Welch of Krispy Kreme, international.

“Lotteria knows the Krispy Kreme brand well, and their QSR expertise is unmatched in the market. We expect their success in South Korea will continue as they further expand the Krispy Kreme brand.”

Welch said the new development agreement, when executed, would bring franchisees’ commitments for new international shops to nearly 425.