Why Foreign Retail Grocery Stores Fail in South Korea: Propositions for Future Research

Abstract

International retailers have conducted business the South Korea since the Korean Government liberalized the retail market in 1996.  Some retailers have succeeded while others have failed. The author proposes further research on the failures of international retailers by examining the challenges of entering a foreign market.  Additionally, the author provides a brief history of international grocery retailers and literature on international retailing in South Korea.  The problems encountered by international retailers in South Korea were discussed.  The propositions for future research were as follows: factors that international retailers used to enter the market, steps taken to minimize the possible problems when entering the market, alternative market entry methods, methods for choosing the store format, problems discovered after market entry, and what research done to determine the preference of Korean consumers.