South Korean Media: Chinese Brands Deeply Penetrate South Korea Market, Reputation Rises

South Korean media outlet Kyodo News (Japanese edition) revealed on the 15th that Chinese brands—spanning automobiles, smartphones, robotic vacuum cleaners, beverages, and cosmetics—have deeply penetrated everyday life in South Korea.

In the automotive sector, BYD has surpassed Tesla in global electric vehicle sales, gradually emerging as a major player. According to statistics from the Korea Automobile Importers Association, BYD captured 4.8% of the imported vehicle market from January to May, ranking fourth—behind Tesla, BMW, and Mercedes-Benz. This performance outpaced Lexus (4.2%), Volvo (4%), and Audi (3.8%). By May, cumulative registered vehicles by BYD reached 7,023 units. Rising crude oil prices have boosted demand for electric vehicles, with BYD’s monthly sales exceeding 1,000 units. The company’s South Korean subsidiary is also rapidly expanding its sales network. Currently, there are 34 showrooms and 20 service centers across the country, with plans to continue expansion throughout this year.

Beyond the electric vehicle market, BYD also plans to enter South Korea’s hybrid electric vehicle segment. Chinese EV brands are actively targeting overseas markets—including South Korea—to counteract domestic market saturation.

Previously, Chinese brands were perceived in South Korea as “cheap and low-quality,” but consumer confidence in Chinese product quality is increasingly growing.

In the electronics sector, Xiaomi established its South Korean subsidiary last year and currently operates eight stores nationwide. Its smartphone lineup covers budget models priced around 200,000 to 300,000 KRW, as well as flagship devices approaching 2 million KRW. Xiaomi is now expanding its product line into smart home solutions. A Xiaomi representative stated: “We sell over 1,000 phones daily in South Korea, and the top three wearable products on Coupang—the largest online retailer in Korea—are all Xiaomi.”

Robotic vacuum cleaners, televisions, and power banks are also gaining popularity.

Industry experts commenting on the rise of Chinese brands like BYD and Xiaomi in the South Korean market said: “This reflects that consumers no longer see Chinese brands merely as imitators or low-cost options, but instead place trust in their technological capabilities.”

Besides automobiles and electronics, Chinese brands are increasingly making their mark in food and beverage, beauty, and fashion sectors.

With visa-free access for South Koreans traveling to China, cities like Shanghai have become popular tourist destinations. Analysis shows that young people in South Korea interested in Chinese culinary culture and cosmetics are steadily increasing.

The Chinese bubble tea brand “Bawang Cha Ji” opened three stores in Seoul (including Gangnam) at the end of April, followed by two new locations in May. Plans are underway to open a store in the Shinsegae Gangnam Department Store in Seoul later this year.

Additionally, “Hushang Auntie” entered the South Korean market last year, while brands such as “Heytea,” “Cha Bai Dao,” and “MIXUE Bingcheng” have also begun operating stores in South Korea.

The Chinese hot pot chain “Haidilao” has seen sales surpass 10 billion KRW in South Korea. Haidilao entered South Korea in 2014 and currently operates 12 stores across Seoul, Busan, Jeju, Daegu, and other regions. The spicy hot pot brand “Tanghuo Gongfu” had over 550 franchise locations in South Korea last year. Its local subsidiary recorded sales of 22.5 billion KRW and an operating profit of 11.1 billion KRW last year.

Luckin Coffee, which has overtaken Starbucks to become China’s largest coffee chain, is preparing to enter the South Korean market. Cosmetics brands such as “Huahuizhi” and “Jueduo” are gaining popularity among Generation Z (born mid-1990s to early 2000s) through social media. Meanwhile, in the fashion realm, Chinese designer brands like SHUSHU/TONG are gradually earning recognition.

Original article: toutiao.com/article/1868031624544264/

Disclaimer: The views expressed in this article are those of the author(s).