Korea’s CU convenience store operator BGF Retail will expand into Mongolia via a franchisee.
The firm has signed the deal with local retailer Central Express, which will take charge of investments and the operation of CU outlets.
The first store is set to open in Ulaanbaatar within this year.
BGF Retail considers Mongolia as a promising market for its convenience store business to grow thanks to the young population there – people aged under 35 account for 65 per cent of the total population.
“We will accelerate our expansion into emerging markets with high growth potential to become a global convenience store operator,” said BGF Retail CEO Park Jae-koo.
Mongolia is the second overseas market for BFG Retail after Iran.
The firm is looking to accelerate its global expansion amid fierce domestic competition.
Korea’s convenience store market surpassed US$18.2 billion in 2016, dominated by three chains – CU, GS25 and 7-Eleven. Across the region, IGD research predicts US$5 trillion growth by 2022.