Japanese drug and cosmetics store chain company Matsumoto Kiyoshi has taken a step toward entering the Taiwan market.

President Kiyoo Matsumoto has signed a memorandum of understanding with Tai Lung Capital chairman Huang Chiao-chang for the two companies to co-operate on the venture.

Matsumoto Kiyoshi opened its first overseas outlet in Thailand in 2015 and now had 12 stores there.

Matsumoto says Taiwan will become the company’s second overseas investment destination.

“Japan is a favourite destination for Taiwanese travellers, and many of them like shopping in the drug and cosmetics store chains there,” he says.

Huang says Tai Lung has devoted itself for a long time to enhancing economic and cultural exchanges between the two countries. It already distributes Japanese ice cream brand Meiji in Taiwan and jointly runs a miscellaneous goods chain, Hands Tailung.

Established in 1932, Matsumoto Kiyoshi manages more than 1500 stores around Japan.