A Daiso store inside a Homeplus outlet in Sangbong [Herald DB]
A Daiso store inside a Homeplus outlet in Sangbong [Herald DB]

Daiso, the fixed-price lifestyle goods chain operated by Aseong Daiso, is expanding its footprint in Gangnam — one of Seoul's most expensive retail districts. The push reflects a growing customer base driven by foreign tourists and the cost advantages of operating at scale.

The chain now has 49 stores across the three Gangnam-area districts — 19 in Gangnam-gu, 19 in Songpa-gu and 11 in Seocho-gu — more than double the 21 locations it had in September last year, according to industry sources. Daiso opened its Cheongdam Dosan Park branch on Dosan-daero in Gangnam-gu on Friday, and on July 31 it launched a large standalone store on Garosugil in Sinsa-dong.

Rents in the Gangnam area run considerably higher than in other parts of Seoul. According to the Korea Real Estate Board's commercial real estate rental survey, the average monthly rent for mid- to large-sized retail space in Gangnam in the second quarter of this year was 65,500 won ($47) per square meter, up 3.0 percent from 63,600 won in the same period last year. That is 15.5 percent above the Seoul-wide average of 56,700 won and 33.1 percent above the 49,200 won recorded in the Yeouido-Mapo area.

Strong demand from foreign tourists is one of the key drivers behind the Gangnam expansion. About 8.23 million foreign tourists visited Seoul in the first half of this year, up 21.3 percent from the same period last year, according to the Seoul Metropolitan Government. Their credit card spending in the city totaled 5.62 trillion won, a 56.8 percent increase year-on-year, with Gangnam-gu accounting for the largest share at 29.3 percent of all foreign card transactions.

Foreign visitors to Daiso stores have also been rising steadily. Overseas card payments at all Daiso locations in the January–July period this year were up about 100 percent from the same period last year, the company said. The growth rate in overseas card payments has climbed sharply in recent years — 130 percent in 2023, 50 percent in 2024 and 60 percent in 2025. K-food and K-beauty products are particularly popular among foreign shoppers.

Economies of scale built on the chain's rapid growth are also a factor. With more than 1,600 stores nationwide, Daiso places bulk orders that keep costs competitive while maintaining stable sales volumes. Last year, the company's sales rose 14.3 percent from the previous year to 4.54 trillion won, while operating profit climbed 19.2 percent to 442.4 billion won. The expansion signals confidence that heavy foot traffic in Gangnam can generate enough revenue to cover even the area's steep rents.

Gangnam has emerged as a prime battleground for retailers and restaurant chains. Dining Brands Group opened bhc's first flagship store near Gangnam Station on Aug. 4. Bann Luenn, a US ice cream brand brought in by Twosome Place through a master franchise agreement, opened its first Korean outlet near Gangnam Station last month. American Mexican chain Chipotle is also set to open its first Korean location in the Gangnam Station area.

"Gangnam is a commercial district visited not only by Korean customers but also by foreign visitors," a Daiso official said. "We plan to continue increasing the number and size of our offline stores to offer customers a wider range of shopping experiences."


korean@heraldcorp.com