Korean food franchises ventures in Singapore market

Korea Franchise Association participates at FLAsia 2010 to showcase Korean food franchise brands.

Korea Franchise Association (KFA) will lead a group of Korean food service franchise brands to participate at the upcoming FLAsia 2010 from 21 to 23 October at The Sands Expo and Convention Center, so as to further advance into Asia’s markets.

The participation of Korean food franchisors in FLAsia is an effort to support the globalization of Korean food by the Ministry for Food, Agriculture, Forestry and Fisheries, according to a KFA report.

Chairman of the policy committee, Park Won-Hyu, of KFA, who will organize and manage the Korean pavilion at the show, said, “The government has been making efforts to promote Korean food and culture to the world as well as to develop it into an industry with international competitiveness. We want to give support like consulting in establishing and managing Korean food restaurants. We hope that our government’s support will give substantial contribution to the acceptance of Korean franchising overseas.”

According to KFA, which represents 2500 Korean franchise brands, more Korean food companies are showing their declaration of globalization and aim to leverage Singapore as the gateway to the franchise markets of Asia. The Korean pavilion will showcase some of these Korean brands, including

• Our food story, a fast-food outlet which serves traditional Korean menus like Bibimbap (rice mixed with various cooked vegetables) and Kimchi Bokeumbap (fried rice with chopped kimchi). Ourfoodstory opened their first overseas restaurant in Orchard Road in February 2009.
• Hangoga, a traditional Korean restaurant which specializes in red meat menus like indigenous beef, Galbitang (short rib soup) and Yukhoe Bibimbap (rice mixed with various cooked vegetables and raw beef). Hangoga will be opening their outlet in Marina Bay Sands in February 2011.
• Changjak, a traditional Korean liquor pub offering varied Korean traditional liquors and wines from Makgeoli, renowned for world-class rice wine in the southern province of Korea.
• BarBQ Boss, a Korean barbeque restaurant brand which adds the taste of Korea to barbequed chicken with their self-created seasonings.
• Gimgane, the champion of flour-based food and Korean food franchising. They developed a new market for Korean Gimbap (dried seaweed rolls) restaurants globally.

KFA aims to share information on the current franchising trends in Korea, including leading franchisors which has the experience and interest to enter new markets.

As of 2009, the franchise market in South Korea amounted to USD95 billion, which comprised of 8.5% of the total GDP. KFA’s 2,500 participating brands have around 240,000 operating stores across the nation. Of these, 70% are domestic brands with great potential development. Food companies account for about 60%. Close to 10 food service enterprises have been actively promoted into the overseas markets in the US, China, Japan and Singapore. This is an indication that the food service business is an industry with strong competitiveness.

In 2002, South Korea passed the law on franchise agreement, which improved the stability of franchising. In 2007, the law of franchise agreement was amended - franchisors are required to register and provide information disclosure forms. More information on participating enterprises are available at FLAsia 2010.