Chagee to tap South Korea for global expansion

Chinese tea beverage chain Chagee has announced that it will officially enter the South Korean market, with its first store slated to open in Seoul's business hub Gangnam in the second quarter of this year.

Chagee said it plans to complement the flagship location with two additional outlets in key urban hubs — one at I'Park Mall in Yongsan, a major retail and entertainment zone, and another in Sinchon, a university-heavy neighborhood popular with young consumers.

"Even before the official opening, many South Korean consumers have shown strong interest in the brand," the beverage chain said in a statement.

The move comes as Chagee steadily expands both domestically and internationally.

Last week Chagee officially expanded to Chiang Mai in northern Thailand following its earlier store openings in Bangkok.

South Korea is Chagee's eighth overseas market. The brand launched its first international store in Kuala Lumpur in 2019, before expanding to Singapore and Thailand. In 2025, it entered Indonesia, the United States, Vietnam and the Philippines.

International markets are emerging as a key growth engine for Chagee. According to the company's third-quarter financial report last year, its overseas gross merchandise volume grew more than 75 percent year-on-year for two consecutive quarters, with quarter-on-quarter growth exceeding 25 percent. As of Sept 30, 2025, the company operated 262 stores abroad.

Chagee joins a wave of Chinese tea brands — including Mixue, Heytea, Gong Cha and ChaPanda — expanding into South Korea. According to Euromonitor International, South Korea's tea market grew from 1.1 trillion won ($733.9 million) in 2020 to 1.58 trillion won in 2024, a roughly 44 percent increase over four years.

By contrast, China's domestic new-style tea market is showing signs of saturation. iiMedia Research data indicate the sector reached 354.72 billion yuan ($51.4 billion) in 2024, with growth slowing, and was projected to reach around 374.93 billion yuan in 2025. The trend has driven many brands to pursue overseas expansion.

Chinese tea brands are increasingly targeting a diverse set of international markets. As of mid-2025, Mixue operated more than 4,700 stores in 12 countries and regions, including Vietnam, Cambodia, Japan, South Korea and Australia. Molly Tea, which debuted internationally in 2024, has opened over 20 locations across North America, Europe and Southeast Asia. (source: China daily)