POSCO International Partners with BGF Retail to Enter Overseas Retail Business

CU with over 16,000 stores in Korea... "Expecting Synergy"

[Asia Economy Reporter Yu Je-hoon] POSCO International is partnering with BGF Retail to advance into the overseas retail business.

POSCO International announced on the 21st that it has signed a "business agreement for joint entry into the overseas retail business" with BGF Retail. BGF Retail owns CU, the largest convenience store brand in South Korea.

Through this business agreement, both companies will jointly establish overseas expansion strategies, including analyzing overseas markets, selecting target countries and local partners, and will seek joint investments with local partners.

Upon business entry, POSCO International will handle logistics tasks such as maritime and inland transportation, as well as supply products like alternative proteins and meal kits, while BGF Retail will be responsible for establishing CU brand application strategies, product planning, and operational support.

Amid the ongoing growth of convenience store and online markets accelerated by recent changes in consumer trends due to the COVID-19 pandemic, the convenience store retail business is evaluated by the company as a business sector capable of securing stable profits despite external environmental changes such as global economic fluctuations.

A POSCO International official stated, "Through this cooperation, we expect to secure overseas sales networks based on the business operation know-how of BGF Retail, the largest CVS (Convenience Store) retail company in Korea, and POSCO International's global network capabilities. Furthermore, we anticipate creating various business opportunities linked to new local assets."

BGF Retail operates CU, a convenience store brand with over 16,000 stores nationwide, and has been successfully expanding its business in markets such as Mongolia and Malaysia, including being the sole industry entrant at Mongolia's Chinggis Khaan International Airport in July. CU, a Korean-style convenience store utilizing K-Food and K-Content, has already surpassed 140 stores in Mongolia and opened a store in Kuala Lumpur in April this year. It is expanding its business area through local CU offline-linked delivery, membership, and other e-commerce platforms.

At the signing ceremony, Joo Si-bo, President of POSCO International, said, "The convenience store retail business is a comprehensive business model that can be linked and expanded into various fields such as groceries, food, logistics, materials, and systems. Based on this business agreement, we will jointly pioneer new overseas markets where BGF Retail has not yet entered and strive to establish a foothold for the company to enter the global retail business."

Lee Geon-jun, CEO of BGF Retail, stated, "We hope to make CU the global standard of K-CVS by combining POSCO International's overseas business know-how utilizing its global network with BGF Retail's convenience store operation capabilities."