Cambodia Investment Review
E-Mart24, a prominent South Korean convenience store chain, has officially opened its first store in the Boeung Keng Kang district of Phnom Penh, Cambodia. This milestone marks the beginning of an ambitious expansion plan to establish 100 stores within the next five years.
The new 230-square-meter store features over 300 Korean products, including around 50 items from E-Mart24’s private label, No Brand. It offers a variety of popular Korean street foods such as tteokbokki, Korean-style ramen, cup-bap, hot dogs, and fish cakes, alongside coffee and bakery items, aiming to blend traditional convenience store offerings with a café experience. A K-food tasting event on the opening day attracted over 1,000 visitors, showcasing the strong local interest in Korean cuisine.
Entering The Market Through A Master Franchise Model
E-Mart24 has partnered with local firm Saihan Partners to enter the Cambodian market through a master franchise model. This collaboration allows Saihan Partners to manage market analysis and legal matters, ensuring a smooth and efficient entry into the market. Looking ahead, the partnership plans to open 10 stores within this year and a total of 100 stores over the next five years, demonstrating their commitment to the Cambodian market and confidence in its growth potential.
David Sambo, CEO of Saison Group; Park Jin-soon, Chairman of Hanlim Architecture Group; Kang In-seok, Executive Director of E-Mart24; Om Sam Eun, President of KB Prasac Bank; and Kim Hyun-jong, Vice President of KB Prasac Bank, were among the notable attendees at the grand opening. The event also saw participation from approximately 200 other related personnel.
Strategically located in Boeung Keng Kang 1 (BKK1), an area known for its vibrant Korean culture, the store is expected to serve as a focal point for the local community. The introduction of E-Mart24 to Cambodia is supported by KB Prasac Bank, which is providing payment services. This marks KB Prasac Bank’s entry into the local payment market, with plans to extend support as more stores open.
Om Sam Eun, President of KB Prasac Bank, highlighted the bank’s future plans: “Starting with this first E-Mart24 store, we plan to sequentially apply advanced K-financial services such as QR payment systems, virtual account services, and firm banking to E-Mart24, thereby expanding our coverage in the Cambodian payment market.”
Collaboration Between KB Prasac Bank And E-Mart24
Kang Nam-chae, Vice President of KB Kookmin Bank’s Global Business Group, emphasized the strategic importance of this initiative: “Securing low-cost deposits through the expansion of QR payment market share is a key strategy for becoming the No.1 commercial bank in Cambodia. The support for E-Mart24’s payment services will be the first step in internalizing KB Financial’s advanced digital capabilities and leading the Cambodian payment market.”
Read More: KB Financial Group completes acquisition of PRASAC paying $322M for remaining 30%
KB Prasac Bank is currently the third-largest bank in Cambodia, with 192 networks and over 5,700 sales personnel. The bank has been instrumental in connecting rural areas with new target urban areas through tailored financial services. It has received significant positive responses by launching products that cater to regional customer characteristics, such as microloans for farmers and fishermen, loans supporting small businesses, and high-interest deposit products.
The collaboration between KB Prasac Bank and E-Mart24 is set against the backdrop of Cambodia’s evolving financial market, which is increasingly embracing digital banking and payment systems. This partnership not only aims to modernize financial services in Cambodia but also to strengthen economic and cultural ties between South Korea and Cambodia.
