K-food, beauty franchise stores set for Laos foray

Laos’ largest private company Kolao Group has attracted about a dozen South Korean franchise operators to join its aggressive push into the Southeast Asian country’s retail market, according to South Korea’s state-run trade agency on Monday.

Kolao, a portmanteau of Korea and Laos, has signed memoranda of understanding with 13 Korean franchise companies in sectors ranging from food to beauty products to indoor play gyms for kids over the past three months, so they can open stores within Kolao-run malls in Laos, or ship their products to them.

The preliminary agreements translate into a combined $2.75 million in value, the Korea Trade-Investment Promotion Agency (KOTRA) said.

Kolao plans to open 16 large shopping malls and some 2,000 minimarts by 2025 across Laos, including in the capital Vientiane.

South Korean outlets or products will likely make up half of their tenants, or goods to be sold there.

Kolao, founded by Chairman Oh Se-young, started out as a car and motorcycle producer in 1997. It has since expanded into finance, agriculture and other fields.

“Laos is a wasteland of franchises and its franchise market is opening up rapidly, providing good opportunities to Korean companies,” said Kim Pil-seong, head of KOTRA's Vientiane branch.

Starbucks opened its first outlet in Laos at the end of last year. It is now preparing to launch its fourth one in the country. The convenience store chain 7-Eleven opened its first store there last year.

The Korean franchise store operators that inked MOUs with Kolao over the past three months include well-known Korean beef restaurant chain Samwon Garden, Bonchon Chicken and Lee Kaja Hair & Beauty.

Write to Sul-Gi Lee at surugi@hankyung.com
 

Yeonhee Kim edited this article.