Korea’s E-Mart24 to debut in Cambodia, aims for 100 stores by 2028

E-Mart24 Inc., one of South Korea’s leading convenience store chains, will make a foray into Cambodia to gain ground in one of Southeast Asia’s most dynamic and fast-growing markets.

E-Mart Inc., the parent company of E-Mart24, said on Friday it has signed a master franchise agreement with Saihan Partners, a joint venture between Cambodia’s food and beverage conglomerate Saisons Brother Holding Co. and Korea’s Hanlim Architecture Group.

Hanlim, a property developer, has been operating in Cambodia since 2017.

E-Mart24 Chief Executive Han Chae-yang, David Sambo, director of Saihan Partners, and Hanlim Architecture Group Chairman Park Jin-sun signed the deal at E-Mart’s head office in Seoul.

HUGE GROWTH POTENTIAL IN SOUTHEAST ASIA

Under the agreement, Saihan Partners will have the rights to operate E-Mart24 convenience stores in Cambodia, handling site selections, product sourcing and other responsibilities there, while E-Mart24 will receive royalties from Saihan.

The first E-Mart24 store – also Korea’s first convenience store in the country – will launch in Phnom Penh in the first half of next year. E-Mart24 aims to raise the number of its stores in Cambodia to 100 by 2028.

E-Mart24 said its business growth potential in Cambodia is high.

Before it was hit by the COVID-19 pandemic, the country had posted a GDP growth rate in the 7% range and the number of foreign tourists visiting the country hovered around 6.6 million, or 40% of Cambodia’s population. Cambodia’s economy is expected to grow 6.6% in 2024.

E-Mart24 is already operating convenience stores in other countries in Southeast Asia.

The Korean company entered Malaysia in 2021 and Singapore last year.

E-Mart, which runs 46 convenience stores in Malaysia and three in Singapore, plans to raise the number of stores in the two nations to 300 each over the next five years.

“Once we successfully settle in Cambodia, we’ll continue to expand our presence globally,” said E-Mart24 CEO Han.

Write to Young Chan Song at Ofull@hankyung.com

In-Soo Nam edited this article.