FG Korea to open Five Guys stores in Japan

FG Korea, the operator of the American handcrafted hamburger brand Five Guys in South Korea, will open its stores in Japan in the second half of next year.

Five Guys was introduced to South Korea by Kim Dong-sun, the third son of Hanwha Group Chairman Kim Seung-youn and head of strategic management at Hanwha Galleria.

FG Korea is a wholly-owned subsidiary of Hanwha Galleria.

FG Korea announced on Tuesday that it signed a memorandum of understanding (MOU) with Five Guys International last month, focusing on the brand's entry into the Japanese market.

The MOU enables FG Korea to lead the initiative by establishing a Japanese subsidiary.

The company plans to open more than 20 stores across Japan, including Tokyo, over the next seven years, starting in the second half of 2024.

Industry sources estimate the Japanese hamburger market to be 2.5 times the size of South Korea's, with an annual growth rate of 6.5% since 2015.

FG Korea sees significant growth potential in Japan, particularly as the premium burger market is still underdeveloped.

Write to Jae-Kwang Ahan at ahnjk@hankyung.com