South Korean convenience stores in Mongolia are being lauded as “redefining the concept of convenience stores,” providing free restroom access to the local population. In this country, where public restrooms are either limited or primarily consist of traditional pit toilets, these stores have gained significant traction by addressing key infrastructure shortages while introducing Mongolians to South Korean ready-made meals and food products.
On the morning of Dec. 31, near Ulaanbaatar, Mongolia’s capital, branches of South Korea’s leading convenience store chains, GS25 and CU, stood side by side. Inside a CU store, customers could be seen heating pre-packaged meals in microwaves and using self-service coffee machines—scenes reminiscent of daily life in South Korea. Many patrons visited the stores solely to use the clean and accessible restrooms.
South Korean convenience store brands are rapidly expanding their global footprint, with Mongolia emerging as a key market. As of Jan. 16, over 1,300 South Korean convenience stores operate internationally, including more than 700 in Mongolia. By combining the global appeal of Korean food (K-food) with localized strategies, these chains have achieved remarkable success. The headquarters of these brands work closely with local franchise operators to attract and retain customers.
Currently, CU operates 441 stores across Mongolia, while GS25 has 267 outlets. This extensive network has positioned Mongolia as one of the most successful overseas markets for South Korean convenience stores.
CU was the first to enter the Mongolian market, opening its flagship location at Shangri-La Centre in Ulaanbaatar in Aug. 2018, through a franchise agreement with Central Express, a major local retailer.
GS25 followed in 2021, partnering with Shunkhlai Group, Mongolia’s second-largest conglomerate. Starting with just three locations, GS25 has since expanded to 267 outlets and plans to reach 500 by the end of this year. Both brands have capitalized on the popularity of the Korean wave and K-food to establish a strong foothold in the Mongolian market.
Over 60% of Mongolia’s population is under the age of 35. With rapid urbanization and younger generations forming the primary consumer base, South Korean convenience stores have garnered widespread appeal. An industry insider highlighted Mongolia’s positive perception of South Korea and its emerging economy as key factors driving demand for South Korean food and consumer goods.
For South Korea’s convenience store industry, which faces challenges such as an aging domestic population and market saturation, Mongolia represents a strategic hub for global expansion.
In addition to offering ready-made meals and beverages, South Korean convenience stores in Mongolia address critical infrastructure challenges by providing free restroom access. Public restroom facilities remain underdeveloped in Mongolia, particularly in urban areas, and CU and GS25 have addressed this gap by installing restrooms in their stores. Visitors are allowed to use these facilities without any purchase requirement—an uncommon service among local supermarkets and other businesses. This dual focus on retail and public service has significantly boosted the stores’ popularity.
The availability of restrooms has driven higher foot traffic, which in turn has translated into increased sales. “GS25 and CU are more than just places to shop—they are seen as comfortable rest stops with clean restrooms. Young people in Mongolia love spending time at convenience stores,” said Oyuka, a 32-year-old transportation worker.
Despite their success in Mongolia, South Korean convenience stores are still in the early stages of international expansion, with overseas sales accounting for only about 4% of the industry’s total revenue. An industry expert emphasized the need to diversify into additional international markets to drive sustainable growth and increase revenue through franchise loyalty programs. For now, the focus remains on Asian countries, including Mongolia, Vietnam, Malaysia, and Singapore.
