Hollys Coffee, a brand under South Korea’s KG Group, is making its debut in Japan with its first overseas outlet in Osaka. This move capitalizes on the popularity of Korean culture, often referred to as Hallyu or the K-wave, in Japan.

Announced on Monday, the coffee chain will open its doors at the Marui Department Store in Namba, Osaka, in the first half of the year. The decision to enter Japan directly, rather than through a master franchise system, stems from a desire to promote Korean café culture and coffee flavors.

Lee Jong-hyun, CEO of Hollys, expressed plans for gradual expansion across Japan and eventual entry into other international markets. This expansion is driven by Korean coffee shops seeking growth opportunities beyond the saturated domestic market, leveraging the global appeal of Hallyu.

Despite challenges posed by the COVID-19 pandemic, coffee consumption remains strong in South Korea, with an abundance of coffee outlets catering to a population with a robust coffee culture. In 2023, there were approximately 96,300 coffee and dessert outlets across the country.

South Korean coffee franchises, recognizing the intense competition domestically, are increasingly looking abroad for expansion. Ediya Coffee, for instance, opened its first overseas outlet in Guam last December and aims for further international growth. Similarly, Tom N Toms has established branches in over 70 countries, while other players like Mega Coffee and A Twosome Place are also eyeing global markets.