- Costco’s business in South Korea is booming, where the warehouse giant has 16 locations.
- Business Insider recently visited the most popular Costco store in South Korea.
- We discovered that the core of Costco remains the same, but the retailer has won over local shoppers with options you can’t find in the US – like fresh whole octopus and bulgogi bakes.
- Visit Business Insider’s homepage for more stories.
SEOUL, South Korea – Costco is one of the most beloved stores in the US. And, it also has a cult following in South Korea as well.
Costco has 16 locations in South Korea, making it the sixth largest Costco market in the world. And, the discount giant has developed an especially dedicated fanbase in Seoul, Costco Korea regional marketing manager Sunmi Goo told Business Insider.
According to Goo, the warehouse in the Yangjae neighborhood is the most popular in the country, likely in part due to its location in the affluent Gangnam district. Shoppers swarm to the location. Goo said that recently, during the busy shopping period around Christmas and the Korean New Year, customers were so desperate to get their Costco shopping done that some customers waited up to an hour to enter the massive parking garage and get into the warehouse.
I recently visited the Yangjae warehouse and found a few surprising differences from Costco in the US.
Here is what it is like to visit Costco in South Korea - and why it should come as no surprise the retailer is building a massive fanbase around the world.
Nine of the Costco locations in South Korea are in Seoul or the surrounding area.
With a massive parking garage and a minimalist warehouse look, the Yangjae location feels pretty similar to an American Costco from the outside.
Inside, I'm greeted with another familiar — and welcome — sight: free samples!
Like in the US, you need a Costco card to shop at the warehouse. I left my card at home, but luckily got special permission from Costco to take pictures at the warehouse.
Almost as soon as I walk in, some luxe merchandise catches my eye. This diamond necklace costs 8.5 million won, or more than $7,100.
Read more: 15 surprisingly expensive things you can buy at Costco
Shoppers can buy various luxury brands at the Yangjae Costco, like this $3,800 handbag.
Venturing deeper into the warehouse, I was surrounded by shelves of products, stacked to the high ceiling — a classic Costco set up.
From fashion to food, American brands made a strong showing.
In some sections, I could pretend like I was back in the US.
However, a closer look revealed a few new best-sellers. Krill oil, for example, is a massive product at the South Korean Costco, with shoppers pulling packages off the shelf in bulk.
Surgical masks were quickly selling out the day I visited, due to fears of the Wuhan coronavirus spreading in South Korea.
Bottled water is always a top item, according to Goo.
Kirkland's water brand, which is bottled in South Korea, needs to be restocked three times a day and up to five times a day on the weekend.
Kirkland has become beloved brand in Korea as Costco's reputation has spread, Woo said. Because Costco spends essentially no money on marketing, it relies on word-of-mouth to win over South Korean shoppers.
Giant stuffed animals are still a Costco staple.
Shoppers can peruse various Apple products.
Or, they can take a break in a massage chair.
Some of the top-selling categories at Costco in South Korea are beauty, pharmacy, and health, especially as shoppers make nutritious New Years resolutions.
Fresh food takes up the entire basement of the Yangjae warehouse. Descending downstairs, I quickly realized just how much American Costcos are missing.
There were some familiar sights. The rotisserie chicken remains...
... and still only costs about $5.
It is joined in the hot deli section by options such as pork.
Sales of ready-to-eat food have been growing in South Korea in recent years. Costco has been cashing in with more prepared options, like this bibimbap.
Source: Euromonitor