Olive Young, operated by CJ, is increasingly moving into prime locations formerly occupied by Starbucks.
Recently, in major business and tourism districts such as D-Tower in Gwanghwamun and Myeongdong in Seoul, Olive Young has been taking over spots that Starbucks held for over a decade. Beyond a simple change in tenants, this transition symbolically demonstrates that the core “anchor tenant” of Korean commercial districts has shifted from coffee culture to beauty and wellness.
At the heart of this change is the explosive demand from foreign tourists.
In the case of the Myeongdong 2-ga branch, eight out of ten visitors are foreigners, solidifying Olive Young as an essential stop for travelers in Korea.
Consequently, experts evaluate that Olive Young has emerged as a key anchor tenant, leading to the coining of the term “All-se-kwon” (a portmanteau of Olive Young and yeok-se-kwon, meaning station area). This indicates its significant influence on property values, much like the “Starbucks effect” of the past.
Just as the presence of Starbucks increases a building’s value, Olive Young has become a tenant that positively impacts the surrounding commercial area and the property itself. Moving beyond cosmetics, Olive Young is expanding into new wellness ventures like “Olive Better,” targeting both domestic and international customers.
Its revenue for last year is estimated to have surpassed 5 trillion KRW, reaching an all-time high.
[ONLINE-KOREA：A Letter from Korea]
Coffee shops are the most common sight on the streets of Korea. Every few steps, you encounter one.
While STARBUCKS being replaced by OLIVE YOUNG doesn’t mean cafes are disappearing, it brings certain changes. I recently recalled a meeting with a client from abroad. I had an Iced Caffe Mocha, and my client had a Matcha Latte. STARBUCKS has always been the representative space that both locals and foreigners find easy to recognize and locate—a place to sit down and connect over a drink.
While it is wonderful that many international tourists visit Korea because of OLIVE YOUNG, it is also a bit saddening to see the decrease in convenient spaces where anyone can stay and communicate
Furthermore, as mega-corporations monopolize both online and offline retail, independent shops risk losing their viability. I worry that major commercial districts may turn into “showrooms” for giant franchises, accelerating a commercial homogenization that erases unique local content.
While there are pros and cons to every change, I hope to see more diverse Korean spaces and unique cultural experiences—beyond just shopping—thrive to welcome our global visitors.
ONLINEKOREANEWS.COM 