Korean convenience store CU in MongoliaSCREEN CAPTURE
Korean retailers are sweeping across Mongolia, where Korean convenience stores and cafes have become so ubiquitous in the capital, Ulaanbaatar, that parts of the city are now jokingly dubbed "Mongtan New Town" — a mashup of Mongolia and Dongtan, a bustling suburb south of Seoul.
A 32-year-old office worker surnamed Shin is preparing for their second trip to Mongolia in late July, following their first visit last year.
"When I went to Ulaanbaatar, Korean convenience stores and cafes lined the streets," Shin said. "Once you've been to 'Mongtan New Town,' 'Da Nang, Gyeonggi' no longer feels like the most Korean place overseas."
Da Nang, a Vietnamese resort city, has earned the nickname among Koreans due to a huge Korean tourist presence.
Shin said concerns about Mongolia's travel conditions proved unfounded.
"I had heard the restrooms would be inconvenient and dirty, but Korean stores were well equipped, so traveling was very comfortable," Shin said. "This time, I plan to enjoy the traditional nomadic experience on the grasslands while spending time comfortably in the city.”
A horse rider holds the Korean national flag at the Naadam Festival held in Ulaanbaatar, Mongolia, on July 11.NEWS1
Korean retailers are making rapid inroads into Mongolia. Korean Convenience stores and cafes have become so common across Ulaanbaatar.
CU, the first Korean convenience store chain to enter Mongolia in 2018, opened its 600th store on June 26. GS25 operates 299 locations as of July. Korean retail giant Emart opened its first private label No Brand store in Mongolia on July 10.
Korean cafes and restaurant chains are also expanding.
Bakery chain Tous les Jours opened its 25th location in Mongolia in July, in Ulaangom, a key city in the northwestern area of the country.
Cafe chain Dessert39 plans to open its fourth and fifth Mongolian stores in August. Theborn Korea, which already operates five Korean barbecue Saemaeul Restaurant branches in the country, opened its first Hong Kong Banjum 0410 branch in May. Hong Kong Banjum 0410 sells Chinese food.
Korean convenience store brand CU's location in MongoliaCU
Much of the success has come from tailoring services to Mongolia's traditionally nomadic lifestyle.
Because Mongolia's nomadic tradition left little need for permanent sanitation infrastructure, modern public restrooms remain scarce in many areas. CU tapped into that need by installing clean, modern toilets in its stores. Today, it is common to see both tourists and locals lining up to use convenience store restrooms.
Some locations also offer shower facilities for long-distance travelers and truck drivers, as well as EV charging stations. It allows customers crossing Mongolia's vast grasslands to use convenience stores as roadside rest stops.
Localized menus alongside Korean food have also fueled their popularity.
GS25 has installed instant noodle cooking machines in some stores. It also sells Korean favorites such as spicy pork and bulgogi lunch boxes.
The chain also offers local specialties, including Mongolian sausage bread and beef piroshki, a Mongolian-style meat dumpling.
Local snacks sold at GS25 branch in MongoliaGS RETAIL
Freshly brewed coffee has also become a popular menu item during winters, when temperatures can plunge to around minus 30 degrees Celsius (minus 22 degrees Fahrenheit).
“Mongolia’s youth is highly receptive to global culture, with more than 60 percent of its population aged 34 or younger,” the Korea Trade-Investment Promotion Agency said in its report on Mongolia issued in December of last year.
According to Mongolia's National Statistics Office, revenue generated by Korean food service businesses in the country rose steadily from 1.31 trillion won ($881 million) in 2022 to 1.57 trillion won in 2023 and 1.84 trillion won in 2024.
Officials from Korean Ministry of Agriculture, Food and Rural Affairs pose for a photograph while promoting Korean food products in Ulaanbaatar in Mongolia on July 9.MINISTRY OF AGRICULTURE, FOOD AND RURAL AFFAIRS
Retail and wholesale sales also increased from 1.98 trillion won in 2022 to 2.79 trillion won in 2024.
CU recorded its first overseas operating profit in Mongolia in 2024. GS25's Mongolian sales reached 93.7 billion won last year, up sharply from 4.17 billion won in 2021.
No Brand also surpassed 10 billion won in Mongolian sales last year, while cumulative sales of Tous les Jours cakes reached 1.7 million units as of April — nearly half of Mongolia's population of 3.51 million.
A horse rider holds the Korean national flag at the Naadam Festival held in Ulaanbaatar, Mongolia, on July 11.NEWS1
The momentum is expected to continue following the conclusion of negotiations on the Comprehensive Economic Partnership Agreement between Seoul and Ulaanbaatar during a bilateral summit on July 9.
The agreement is expected to spur investment in sectors including retail, logistics and franchising.
Korean businesses are also using Mongolia as a gateway to broader expansion across Central Asia.
CU operates 65 stores in Kazakhstan as of the end of July, while Genesis BBQ, the operator of the chicken franchise bb.q, opened its first Kazakh location in May.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
