Foreign nationals are becoming franchise owners in South Korea’s convenience store industry, a sector long dominated by local nationals, as chains adapt to shifting demographics.

BGF Retail, which operates the CU chain, announced the opening of its first outlet in Seoul’s Gwanak District which will be managed by a Russian national of Korean descent holding an Overseas Korean visa, or F-4. It is the company’s first store run by a Korean compatriot from the former Soviet Union region.

The move follows a May partnership with the Koryoin Global Network (KGN) to recruit overseas Koreans as franchisees. BGF said it cut franchise fees by about 35 percent and offered additional support funds to ease start-up costs. The convenience store operator plans to expand the number of outlets run by overseas Koreans as well as extending opportunities to foreigners holding entrepreneur visas in the longer term.

Korea’s convenience store sector has been cautious about accepting foreign ownership, citing concerns about reliability and information gaps but the initiative reflects shifting demographics. Foreigners now account for 5 percent of Korea’s population, while the proportion of multicultural families has climbed from 7.2 percent in 2021 to 10.6 percent in 2023, according to Statistics Korea.

This strategy will provide convenience store startup opportunities to overseas Koreans and members of multicultural families, thus securing franchise resources in line with this trend.

The drive to attract foreigners is also linked to the current state of the convenience store industry, with overseas Koreans and foreigners representing a new avenue for recruiting franchisees. According to the Ministry of Trade, Industry and Energy, the total number of convenience stores nationwide in July 2025 was 48,003, a decrease of approximately 700 from January’s 48,724, and the number of stores has been declining since April.

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