Lotte eyes opening In-N-Out Burger fast-food outlets in Korea

One of US' leading burger brands, In-N-Out, is considering entering the South Korean market. After recently opening a pop-up fast-food restaurant in Seoul, the burger company has reportedly held discussions with leading Korean retailers such as Lotte to operate in the Korean market. 

According to industry sources on Wednesday, the management team of In-N-Out Burger recently arrived in Korea to make a bid to enter the domestic market. After holding a pop-up outlet in Korea on May 31, they met with Lotte Department Store officials to discuss its Korean business. It is reported that the company has proposed terms such as the amount of money for the business in Korea.

This is the fourth time In-N-Out has opened a pop-up restaurant in Korea, after 2012, 2015 and 2019, and there have been talks in the restaurant industry that it is preparing to enter Korea. Korean retailers such as Lotte Department Store have reportedly approached In-N-Out about bringing the brand to Korea.

"It is known that large retailers, including Lotte, have offered a fairly high amount of money to win the contract for In-N-Out's domestic business," said a retail industry insider. "As they believe that the brand has the potential to cannibalize a significant share of foreign burger brands in the Korean market." 

In-N-Out Burger also registered a trademark in Korea in 2012. According to the Korean Intellectual Property Office, trademarks can be canceled if they are not used for more than three years after registration. The company has been using the trademark through regular pop-up outlets, so it's possible that it's thinking of expanding into Korea.

If In-N-Out does open an outlet in Korea, it will be its first overseas location outside of the US. In-N-Out has been cautious about entering overseas markets because of its principle of “fresh ingredients delivered the same day” and has only opened restaurants in the western US. 

However, given the recent growth of the Korean restaurant market and the demanding tastes of Korean consumers, it is speculated that the company is considering Korea as a testbed for its global expansion.

Write to Hyun-Joo Lee at wondering_hj@hankyung.com