Why foreign retail grocery stores fail in South Korea? Propositions for future research
Why foreign retail grocery stores fail in South Korea? Propositions for future research

Summary/Abstract: International retailers have conducted business in South Korea since 1996 when the retail market was liberalized by the Korean government. Some retailers have succeeded while others have failed. This study critically reviewed the literature on the international grocery retail industry in South Korea through an analysis of 20 years of literature. A case study and ethnography were used to provide insight into the experiences of international retail companies, while at the same time providing information about the situation. The author proposed that further research be conducted on the failures of international retailers by examining some challenges of entering a foreign market. Additionally, the author offered a brief history of international grocery retailers and literature on international retailing in South Korea. Various problems encountered by international retailers in South Korea are discussed. The author proposed future research in the following six areas: (a) factors that international retailers used to enter the market, (b) steps taken to minimize the possible problems when entering the market, (c) methods for alternative market entry, (d) the approach for choosing the store format, (e) problems discovered after market entry, and (f) the research done to determine the preference of Korean consumers.

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