It’s nearly impossible to walk a block in Korea without passing a franchise, and the numbers prove this isn’t just convenience—it’s a colossal economic engine that hit 286.4 trillion KRW in sales and is fundamentally reshaping the nation’s business landscape.
Key Takeaways
- In 2022, the total market size of the Korean franchise industry reached 286.4 trillion KRW, marking a 4.2% year-over-year growth driven by post-pandemic recovery in foodservice sectors
- The franchise industry's contribution to Korea's GDP stood at 1.48% in 2023, with projections for 1.55% growth in 2024 due to expansion in convenience store franchises
- From 2019 to 2023, the CAGR of the Korean franchise market was 3.8%, with food and beverage segments leading at 5.1% CAGR amid rising delivery demand
- The total number of franchise brands registered in Korea as of 2023 was 6,847, including 4,212 foodservice brands and 1,635 service brands
- In 2023, 1,256 new franchise brands were launched, with 68% in the F&B sector and 22% in education services
- Top 10 franchise brands by revenue in 2023 included GS25 with 12.4 trillion KRW, followed by CU at 11.8 trillion KRW
- Foodservice franchises dominated with 61.5% of total brands (4,212 out of 6,847) in 2023
- Retail franchises accounted for 18.2% of the market in 2023, with beauty and fashion subsectors growing 7.4% YoY
- Service sector franchises, including PC bangs and laundromats, made up 12.3% with 842 brands in 2023
- The franchise industry employed 1.82 million people in 2023, representing 7.1% of total retail employment in Korea
- Average annual wage for franchise employees was 28.4 million KRW in 2023, 12% below national average due to part-time staffing
- Franchise sector created 145,000 new jobs in 2023, with 62% in foodservice and 18% in retail
- 67% of Korean consumers visited franchise outlets weekly in 2023, preferring F&B for convenience and brand trust
- Average customer satisfaction score for franchises was 8.2/10 in 2023, with coffee shops at 8.7 due to ambiance
- Delivery orders from franchises rose 28% to 1.2 billion in 2023, 41% via platforms like Baemin and Yogiyo
The Korean franchise industry has grown to dominate retail, creating jobs and expanding strongly after the pandemic.
Consumer and Operational Trends
- 67% of Korean consumers visited franchise outlets weekly in 2023, preferring F&B for convenience and brand trust
- Average customer satisfaction score for franchises was 8.2/10 in 2023, with coffee shops at 8.7 due to ambiance
- Delivery orders from franchises rose 28% to 1.2 billion in 2023, 41% via platforms like Baemin and Yogiyo
- 54% of consumers chose franchises for standardized quality, with 72% loyalty to chicken brands in 2023 survey
- Average franchise store operation hours were 14.2 hours daily in 2023, with 24/7 convenience stores at 82% rate
- Membership programs covered 65 million users in 2023, boosting repeat visits by 34% across franchises
- Sustainability initiatives adopted by 43% of franchises in 2023, with eco-packaging reducing plastic use by 22%
- Digital ordering via apps reached 38% of sales in urban franchises in 2023, up from 25% in 2022
- Franchise failure rate was 12.4% in first year for 2023 entrants, mainly due to location and competition issues
- 82% of consumers aged 20-39 preferred app-based loyalty programs in 2023 franchises
- Non-contact services post-COVID adopted by 91% of franchises, reducing infection risks
- Average menu price inflation in F&B franchises was 4.8% in 2023, matching CPI
- 46% growth in vegan menu options across franchises in 2023, driven by health trends
- Store density in Seoul: 1 franchise per 1,200 residents in 2023, highest nationally
- Customer complaint resolution rate was 94.2% within 7 days for major franchises in 2023
- Hybrid store models (dine-in + delivery) comprised 67% of new F&B openings in 2023
- Peak hour sales (11am-2pm) accounted for 32% of daily revenue in 2023 franchises
Consumer and Operational Trends Interpretation
In Seoul's relentless caffeinated rhythm, where a franchise serves every 1,200 residents, the industry thrives on a potent cocktail of convenience and calculated loyalty—delivered, clicked, and sipped around the clock—proving that while failure lurks for some, the masses remain blissfully, predictably satisfied.
Employment and Economic Impact
- The franchise industry employed 1.82 million people in 2023, representing 7.1% of total retail employment in Korea
- Average annual wage for franchise employees was 28.4 million KRW in 2023, 12% below national average due to part-time staffing
- Franchise sector created 145,000 new jobs in 2023, with 62% in foodservice and 18% in retail
- Small franchisees (under 10 stores) contributed 32% of total employment at 582,000 workers in 2023
- Economic multiplier effect of franchise spending was 1.67 in 2023, generating 478 trillion KRW in indirect GDP impact
- 45% of franchise outlets were operated by self-employed individuals, supporting 820,000 entrepreneurial jobs in 2023
- Youth employment (20-29 years) in franchises reached 420,000 in 2023, 23% of total franchise workforce
- Female workers comprised 52.3% of franchise employees in 2023, highest in service sectors at 61%
- Franchise taxes paid totaled 12.6 trillion KRW in 2023, with corporate tax share at 8.9 trillion KRW
- Franchise employment growth rate was 3.2% in 2023, adding 56,400 jobs net
- Part-time workers were 58% of franchise staff in 2023, averaging 22 hours/week
- Regional employment: Jeju franchises employed 12,000, up 9% from tourism rebound
- Training hours per franchise employee averaged 28 hours/year in 2023, improving service quality
- Franchise SMEs (99% of operators) generated 92% of sector revenue but only 78% employment
- Export jobs from franchises: 34,500 overseas positions filled by Korean brands in 2023
- Labor turnover rate in franchises was 24.7% in 2023, lowest in convenience stores at 18.2%
- Senior employment (over 60) rose to 8.4% of workforce, 152,000 jobs in 2023
- Supplier payments by franchises totaled 89.4 trillion KRW in 2023, supporting 450,000 indirect jobs
Employment and Economic Impact Interpretation
While franchises stitch together nearly 1 in 10 retail jobs in Korea—a patchwork quilt of part-timers, youth, and self-employed dreamers—they also pay a 12% wage penalty for their flexibility, proving that the gig economy's cozy blanket comes with a few deliberate holes.
Franchise Brand Statistics
- The total number of franchise brands registered in Korea as of 2023 was 6,847, including 4,212 foodservice brands and 1,635 service brands
- In 2023, 1,256 new franchise brands were launched, with 68% in the F&B sector and 22% in education services
- Top 10 franchise brands by revenue in 2023 included GS25 with 12.4 trillion KRW, followed by CU at 11.8 trillion KRW
- As of 2024, there were 2,341 multi-brand franchise operators managing over 5 brands each, up 14% from 2022
- Chicken franchise brands numbered 1,892 in 2023, accounting for 27.6% of all food franchises with BBQ leading at 1,800 stores
- Coffee shop franchises reached 1,456 brands in 2023, with Ediya Coffee expanding to 3,200 outlets nationwide
- 78% of franchise brands in 2023 were domestic-origin, while 22% were foreign-affiliated like Subway and KFC adaptations
- Education franchise brands grew to 912 in 2023, with hagwon (cram school) types comprising 65% of the segment
- Convenience store franchise brands totaled 8 major players in 2023, with combined stores exceeding 45,000 units
- Bakery franchise brands numbered 567 in 2023, led by Paris Baguette with 3,600 domestic stores
- Master franchise agreements numbered 567 in 2023, with 34% in Southeast Asia markets
- Brand registration cancellation rate was 9.8% in 2023 for inactive brands over 2 years
- F&B brands with over 100 stores: 1,456 in 2023, average store count 245 per brand
- Emerging brands (under 5 years old) totaled 2,134 in 2023, 31% of all brands
- Subway Korea as foreign brand had 1,200 stores in 2023, revenue 1.1 trillion KRW
- Pet franchise brands grew to 234 in 2023, up 18% with millennial pet ownership trends
- Fitness gym franchises reached 389 brands, with 12,500 stores serving 2.1 million members in 2023
- Laundry service franchises numbered 678, revenue 3.4 trillion KRW amid urban living
Franchise Brand Statistics Interpretation
Korea’s franchise landscape is a competitive ecosystem meticulously engineered around convenience, caffeine, and chicken, where scaling a brand means not just frying more wings but strategically planting flags from neighborhood bakeries to Southeast Asian markets.
Industry Sectors
- Foodservice franchises dominated with 61.5% of total brands (4,212 out of 6,847) in 2023
- Retail franchises accounted for 18.2% of the market in 2023, with beauty and fashion subsectors growing 7.4% YoY
- Service sector franchises, including PC bangs and laundromats, made up 12.3% with 842 brands in 2023
- Chicken F&B subsector revenue was 45.2 trillion KRW in 2023, 28% of total F&B franchise sales
- Coffee franchises generated 22.1 trillion KRW in 2023, with 15.4% growth from specialty drinks and drive-thrus
- Convenience store sector had 52,300 stores in 2023, contributing 41.7 trillion KRW or 14.5% of total franchise revenue
- Beauty care franchises numbered 1,234 stores in 2023, with revenue up 9.2% to 8.7 trillion KRW from skincare trends
- Education sector franchises employed specialized curricula, with 28% revenue growth in online hybrid models in 2023
- PC room (bang) franchises totaled 456 brands, generating 4.2 trillion KRW amid esports boom in 2023
- Fashion retail franchises contributed 15.6 trillion KRW, 9% market share with SPA brands leading
- Bakery and dessert F&B subsector had 2,100 stores added in 2023, total revenue 18.9 trillion KRW
- Car wash service franchises totaled 345 brands, growing 11% with self-service models
- Interior design franchises numbered 212, revenue up 14% to 2.1 trillion KRW in 2023
- Vending machine franchises emerged with 156 brands, 45,000 units generating 1.2 trillion KRW
- Real estate agency franchises had 289 branches, aiding 18% of urban transactions in 2023
Industry Sectors Interpretation
South Korea's franchise scene reads like a national love letter, with its heart forever pledged to fried chicken and coffee, its head turning toward sleek beauty treatments and online learning, and its pockets perpetually stuffed with convenience store receipts.
Market Size and Growth
- In 2022, the total market size of the Korean franchise industry reached 286.4 trillion KRW, marking a 4.2% year-over-year growth driven by post-pandemic recovery in foodservice sectors
- The franchise industry's contribution to Korea's GDP stood at 1.48% in 2023, with projections for 1.55% growth in 2024 due to expansion in convenience store franchises
- From 2019 to 2023, the CAGR of the Korean franchise market was 3.8%, with food and beverage segments leading at 5.1% CAGR amid rising delivery demand
- In Q4 2023, franchise sales volume increased by 6.7% to 72.1 trillion KRW, fueled by new store openings in urban areas like Seoul and Busan
- The online franchise market segment grew 12.4% in 2023 to 18.9 trillion KRW, representing 6.6% of total franchise revenue from digital platforms
- Projected franchise market size for 2025 is 310 trillion KRW, with a 4.5% annual growth rate supported by government incentives for small franchisees
- In 2023, export-oriented franchise brands generated 2.3 trillion KRW in overseas revenue, up 15% from 2022, boosting overall market expansion
- Domestic franchise turnover per store averaged 1.42 billion KRW in 2022, with a 3.2% increase attributed to premium branding trends
- The franchise industry's average annual growth rate from 2018-2023 was 4.1%, outpacing general retail at 2.9% due to multi-brand strategies
- In 2024 H1, franchise market revenue hit 152.3 trillion KRW, a 5.8% YoY rise led by chicken and coffee franchise surges
- In 2023, 78.5% of franchise contracts were standard FRLA-compliant, with average initial fee of 45 million KRW
- Royalty fees averaged 5.2% of monthly sales across franchises in 2023, highest in education at 7.1%
- 2023 saw 89,400 new franchise stores opened, net addition of 76,200 after closures, led by Seoul metro area
- Profit margin for top 100 franchises averaged 8.7% in 2023, compared to 4.2% for independents
- Overseas expansion: 1,234 Korean franchise brands operated 45,600 stores abroad in 2023, mainly in China and Vietnam
- Inflation-adjusted franchise sales growth was 2.9% in 2023 despite 3.6% CPI rise, showing resilience
Market Size and Growth Interpretation
Though fueled by our collective cravings for fried chicken and caffeine, Korea's franchise industry has soberly risen to become a GDP heavyweight, proving that standardized dreams can indeed be both scalable and surprisingly resilient.