Ko Sang Goo, Chairman of K&K Global Trading, first set foot in Vietnam in 2002 and has since become a key figure in the Vietnamese distribution industry. He visited Hanoi at the suggestion of a friend and instantly sensed the potential for growth in Vietnam. Watching the waves of motorbikes flood the streets, he was reminded of Beijing in the 1990s and became convinced of Vietnam’s future growth potential. This experience became a turning point in his life, leading him to become deeply fascinated with Vietnam and start a business there.
Initially, he targeted the B2B market for local Vietnamese, supplying Korean food products to large distribution channels like Citimart, BIG C, and Saigon Coopmart. However, as issues with unsold stock arose due to expiration dates, he decided to open the first K-MARKET store in Hanoi in 2007 to solve this problem. To avoid competing with local Korean markets, he chose a location a bit further from the Korean expatriate community, and he differentiated his store by designing it in a Korean style. This strategy led to K-MARKET’s success, and the company has grown into a large distribution network with over 140 directly operated stores and approximately 2,000 employees.
The key to K-MARKET’s success was its emphasis on ‘novelty’ and ‘differentiation.’ While existing Korean markets had poor store management, K-MARKET built a system that maintained fresh products and offered customers a luxurious shopping experience through careful attention to detail. In particular, in the hot climate of Vietnam, K-MARKET strengthened its cold chain system to handle fresh food and focused on logistics and freshness management. It took more than 15 years to build this system, which became the foundation for K-MARKET’s ability to boast the highest level of distribution management in Vietnam.
Additionally, K-MARKET planned to expand with a business model that integrated both online and offline operations. They introduced a system where customers could pick up their online orders at nearby offline stores, reducing logistics costs and making it more convenient for consumers to receive their goods. Furthermore, to overcome the operational time limitations of local Vietnamese delivery services, K-MARKET stores extended their hours to offer more flexibility to customers.
Chairman Ko Sang Goo not only focused on business success but also emphasized Corporate Social Responsibility (CSR). Since 2013, K-MARKET has consistently implemented projects such as supporting disadvantaged communities in Vietnam, visiting orphanages, and promoting win-win projects with farmers. During the COVID-19 pandemic, the company actively contributed to social welfare by donating cash and relief supplies to the Vietnam Fatherland Front, selling agricultural products at cost price to farmers, and supporting vaccine distribution and relief funds for the Vietnamese expatriate community.
He believes that building a positive corporate image in Vietnam through CSR activities is crucial. Chairman Go’s goal is not just to become the number one company in Vietnam, but to become the most beloved company in the country. To achieve this, K-MARKET strives to provide a comfortable and safe shopping environment for customers and maintain high-quality service through thorough product management. Every K-MARKET store is designed with a customer-centric environment, and even in areas not visible to customers, high-quality standards are applied.
Based on these strategies and management philosophies, K-MARKET has succeeded in the Vietnamese distribution market and aims for continued growth in Vietnam while contributing to the local community.
Source: Hankyung Magazine
