Mongolia is emerging as a new overseas strategic market for K-Food. Once limited to instant noodles and snacks, Korean food has now penetrated daily consumption among locals, including bakeries, burgers, chicken, dairy products, and beverages. The expansion of food and dining companies is accelerating, leveraging local distribution networks established by domestic companies and the spread of Korean pop culture.
According to industry sources, major South Korean food and dining companies are rapidly expanding their presence in the Mongolian market, diversifying their export products. The focus of their expansion is shifting from the capital, Ulaanbaatar, to key cities in the northwestern region and other local areas.
The restaurant sector is particularly active. Mom's Touch recently opened its 20th location, the Nomin Macro branch, becoming the second-largest quick-service restaurant (QSR) chain in Mongolia by store count. In just 2 years and 10 months since entering the market in 2023, it has surpassed global brand Burger King, which has 18 locations. Mom's Touch aims to increase its total to 25 by the end of the year and hopes to surpass KFC, the current leader with 29 locations, by next year.
Additionally, Daebon Korea is expanding its brand portfolio, having opened its first Hong Kong Banjum location in Mongolia in May. After entering the market with Saemaul Restaurant in 2023, which currently operates five locations, Daebon Korea plans to open a second Hong Kong Banjum at the Ayud Tower, where the fifth Saemaul Restaurant will also be located. A company representative noted, "Interest in Korean-style Chinese dishes like Jajangmyeon and Jjamppong is growing locally, prompting our decision to introduce new brands."
The presence of Korean brands is also increasing in the bakery market. CJ Foodville's Tous Les Jours opened its first store in Ulgii, a northwestern city about 1,400 kilometers from Ulaanbaatar, on July 1. Since signing a master franchise agreement with local company Artisan LLC in 2016, Tous Les Jours has operated 26 stores in Mongolia. SPC Group's Paris Baguette is also preparing to open additional locations after launching its first store in Ulaanbaatar's Zaisan Square at the end of last year.
Food companies are expanding their export products based on the competitiveness of their existing brands. According to KOTRA, South Korean companies like Nongshim, Paldo, and Ottogi hold about 70% of the Mongolian instant noodle market, which is growing at an annual rate of 5-7%. Nongshim maintains the top position with over 45% market share. Namyang Dairy Products recently signed a three-year agreement with local distributor Maximus to expand exports worth 10 billion won, broadening its product range to include powdered milk, UHT milk, and cheese. Lotte Chilsung Beverage is also expanding its local sales network with its beer brand, Crush.
The rise of Mongolia as a strategic market for K-Food companies is supported by the established distribution networks of Korean businesses. Currently, there are six E-Mart stores and approximately 600 CU convenience stores and 300 GS25 stores operating in Mongolia. This distribution environment makes it easy for locals to access Korean food, and with over 60% of the population under 35, the preference for Korean brands is increasing alongside the spread of Korean culture. South Korea is one of the top countries for Mongolians studying and working abroad.
Korea's exports to Mongolia grew from $390 million in 2021 to $660 million last year. Among these, K-Food exports have surged, increasing at an average annual rate of 16.2% over the past five years (2020-2025).
An industry insider stated, "As the global expansion of K-Food becomes a critical issue, Mongolia's importance as a key hub for entering Central Asia will continue to grow."
* This article has been translated by AI.
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