Cashouts and instant ramen: what are convenience stores like in South Korea?

A South Korea has become the global leader in convenience stores both online and offline — with social media influencers and tourists joining locals in frequenting a growing number of establishments across the country.

Imagine if you needed to pick up a package, top up your subway card, grab lunch, and withdraw some cash. In most places, this would probably mean separate trips to the post office, subway station, restaurant, and ATM. In South Korea, all of this — and more — can be done at one of several convenience stores from the country.

As of the end of last year, there were more than 55,200 convenience stores in the nation of 52 million people, according to the Korea Convenience Store Industry Association — roughly one store for every 950 people .

That’s more than the total number of McDonald’s locations worldwide — and gives South Korea the highest store density per capita, surpassing Japan and Taiwan both also famous for their abundant and versatile convenience stores.

“The convenience store industry in South Korea stands out for its remarkable density and innovative strategies,” said Chang Woo-cheol, a professor of tourism and food service industry at Kwangwoon University in Seoul.

“They have become an essential retail channel, with the second largest share of offline retail sales in the country.”

It’s quite different from places like U.S where convenience stores are often attached to gas stations or shopping malls and are rarely seen in residential areas, in part due to zoning laws.

In major South Korean cities like Seoul, convenience stores are on every corner sometimes with several branches of competing companies dotting the same street.

“Convenience stores are open 24 hours a day and play an essential role in our busy lives,” Chang added — calling the South Korean industry a “global success story.”

One-stop shops

There are a few things that set South Korean convenience stores apart. For starters, they are one-stop shops, offering everything from food and beverages to household goods. In these stores, customers can charge their phones, pay utility bills, withdraw cash, order online and receive deliveries — and, in certain locations, even charge their electric scooters, exchange foreign currency and send international mail.

“Convenience stores in Korea are not just a place where people can sit around a table amidst the clutter of beer cans on a summer evening, but also provide essential services,” Deloitte Korea said in a 2020 report, describing the country’s stores as “pampering their customers with extreme convenience.”

Then there’s the food section — a huge selection ranging from instant miso soup to cup noodles in every flavor imaginable, snacks like kimbap and onigiri, and ready-to-eat meal kits.

Combine that with in-store seating, microwaves and hot water dispensers, and it’s made the stores a go-to spot for office workers looking for a quick, leisurely lunch, needing a late-night boost, and students fueling up before grueling prep classes.

Demand has increased over the years as South Korea has urbanized, said Chang, the hospitality professor. More than 80 percent of the population now lives in urban centers, with many residents leaving rural areas to settle in fast-paced cities.

Another factor is the demography Fewer South Koreans are getting married or starting families, which means there are more single households than ever before — and often on tighter budgets, given the economic hardships many young adults face.

In 2021, about 35% of all households in South Korea were single residents, according to a McKinsey report released last March. And unlike couples or large families, who may prefer to cook at home and buy groceries in bulk, single residents tend to opt for the cheap and easy option of convenience stores or ordering online.

A Covid-19 pandemic contributed to this trend, with people preferring to order online or buy quickly at stores close to home, the report added.

Companies have been capitalizing on this high demand by strategically opening stores inside other existing business locations or entertainment venues. For example, Seoul has convenience stores in karaoke bars and the city’s arts center, the Deloitte report said.

All of this translated into huge profits. Between 2010 and 2021, the Korean convenience store revenue jumped more than fourfold from $5.8 billion (R$32.3 billion) to $24.7 billion (R$137.6 billion). The numbers surpassed traditional supermarkets and department stores, according to McKinsey, citing London-based market research firm Euromonitor.

Social media phenomenon

These convenience stores aren’t just popular in reality — they’re also gaining traction on social media, reflecting the global phenomenon that many are calling the “Korean wave.”

South Korean exports have become popular around the world over the past two decades, from K-pop and Korean TV dramas to beauty products, fashion and food. In the past year, the global obsession with Korean goods has turned its attention to the country’s convenience stores.

A quick search on YouTube, TikTok or Instagram will show you a plethora of videos from Korean convenience stores. Influencers show off the stores’ instant ramen stations, review snacks and drinks — or follow viral trends, like a supposed challenge to eat only convenience store food for an entire day.

These videos have proven to be a winning strategy for their creators.

@jinymaeng

Replying to @Jiny Maeng I wanna do convenience store challenges, any recommendations? #koreanconveniencestore #conveniencestore #koreanfood #jinyandfood

♬ original sound – Jiny Maeng

Jiny Maeng, a content creator based in Australia but originally from South Korea, began making videos about the topic after similar clips went viral. They are her most-watched content, with her top three videos on YouTube racking up a combined 76 million views — and a few million additional views on TikTok and Instagram.

“Korea has become a trend of its own… on social media,” she said. “I think that’s also why[convenience stores]are so popular, because people idolize going to Korea now, it’s just one of the dream places people want to visit . So seeing these videos take over the internet is a really cool experience for a Korean, actually.”

Part of what audiences enjoy is the sensory satisfaction Maeng gets from showcasing convenience store products, she said — including the sound of the package being opened or the rattle of plastic “ice cups” before they’re filled with drinks.

These videos were also popular with Australian and American viewers because they were novel, she said. Buying, cooking and eating instant ramen at a convenience store is “amazing” for those used to a Western-style store, she said.

She used the example of doing business in Sydney, where she lives. Many cafes and other shops close at 3 p.m. — ridiculously early by Korean standards. While Australia has 7-Eleven stores, like the U.S., they are usually attached to gas stations and have “very limited” processed food options, such as meat pies, sandwiches, doughnuts and slushies, she said.

Chang, the professor, said that these videos helped boost the popularity of convenience stores in Korea. “The combination of their distinctiveness and effective marketing through social media has increased the popularity of the establishments,” he said.

Korean convenience store companies have become so successful that they are even expanding overseas. Three of the biggest brands — CU, GS25 and Emart24 — now have stores in parts of Southeast Asia, including Vietnam and Malaysia, he said.

Chang encouraged the industry to continue expanding by leveraging social media and “the influence of the Korean wave,” adding: “We will have to try harder to survive in this (global) competition.”

Could have limits to online strategy ; the internet is now saturated with videos about Korean convenience stores, and public interest is waning, said Maeng, whose most recent videos on the topic have not received as many views as before.

But when she returns to South Korea, she will “definitely” still visit a convenience store to film, she said. “There are always ways to utilize the trend in a unique way,” she said. “Maybe there is a different way to use convenience stores in my videos to resonate even more with the viewer.”

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