[News Today] Foreign low-cost brands enter Korea

[LEAD]
As budget-friendly shopping booms, local variety stores like Olive Young and Daiso are thriving. Now, they're facing rising competition from global brands from Japan and China.

[REPORT]
On a weekday morning at 8 a.m., a long line stretches to a department store’s basement.

They are waiting to visit the pop-up store of Don Quijote, a Japanese discount retail chain.

Ju Yang-hyeon / Busan resident
I was curious about the pop-up store. I came from Busan on a plane.

This is the first time that Don Quijote has entered the Korean market.

The store has all the products Korean visitors used to bring from Japan, such as a sauce for an egg rice dish.

Kim Seon-hyeop / Icheon resident
I wanted to go to Japan, but since Don Quijote’s here, I shopped here instead.

China’s popular variety store Miniso also opened a new location last month on a main street in Gangnam.

Kim Eun-jeong / Hwaseong resident
It feels a bit more upscale than Daiso and there are many cute character goods.

Returning to Korea after four years, the retailer is now focusing on expanding its business with popular character goods that sold well in China.

Kim Myeong-jun / Yangju resident
I don’t visit overseas brands often, so it felt like a unique experience.

YOYOSO, often called the Chinese version of Japanese variety store Daiso, plans to open a branch in Gunsan, Jeollabuk-do Province this month.

Prof. Lee Jong-woo / Ajou University
Offering a variety of products is a trend in Korea. Variety stores carry all sorts of items.
Overseas retailers are targeting that demand.

With value-for-money shopping on the rise, competition among domestic and foreign retailers is expected to intensify.