E-Mart24 Inc., a prominent South Korean convenience store chain, is set to enter the Cambodian market, aiming to establish a presence in one of Southeast Asia’s vibrant and rapidly expanding markets.
On Friday, E-Mart Inc., the parent company of E-Mart24, announced the signing of a master franchise agreement with Saihan Partners. Saihan Partners is a joint venture between Cambodia’s food and beverage conglomerate, Saisons Brother Holding Co., and Korea’s Hanlim Architecture Group.
Since 2017, Hanlim, a real estate developer, has been active in Cambodia.
The agreement was signed at E-Mart’s Seoul headquarters by E-Mart24 Chief Executive Han Chae-yang, David Sambo, the director of Saihan Partners, and Hanlim Architecture Group Chairman Park Jin-sun.
As per the agreement, Saihan Partners will possess the authority to manage E-Mart24 convenience stores in Cambodia, overseeing tasks such as site selections and product sourcing. In return, E-Mart24 will receive royalties from Saihan.
The first E-Mart24 store, also serving as Korea’s first convenience store in the country, is set to launch in Phnom Penh in the first half of next year. E-Mart24 aims to increase its store count in Cambodia to 100 by 2028.
E-Mart24 expressed confidence in its substantial business growth potential within Cambodia.
Prior to being impacted by the COVID-19 pandemic, the country had recorded a GDP growth rate in the range of 7%, and the influx of foreign tourists stood at approximately 6.6 million, constituting 40% of Cambodia’s population. The economic forecast for Cambodia anticipates a growth rate of 6.6% in 2024.
E-Mart24 currently runs convenience stores in various other Southeast Asian countries.
The Korean company expanded its presence into Malaysia in 2021 and entered the Singaporean market last year.
E-Mart, overseeing 46 convenience stores in Malaysia and three in Singapore, aims to increase the number of stores in both nations to 300 each within the next five years.
“Once we successfully settle in Cambodia, we’ll continue to expand our presence globally,” said E-Mart24 CEO Han.
