Chinese ‘new style tea’ makers expand in South Korea in challenge to coffee dominance


Chinese tea brands are accelerating their expansion into South Korea, driven by intensifying competition at home and rising demand for healthier beverages in a market long dominated by coffee.

Chagee, known for its milk tea and branding inspired by traditional Chinese culture, said it planned to open three stores in Seoul in the second quarter, marking its first expansion into East Asia outside China.

The company operated 7,338 teahouses as of the end of September and has built a significant presence across Southeast Asia, including Indonesia, Malaysia, the Philippines, Vietnam, Singapore and Thailand. In the third quarter of 2025, its overseas gross merchandise value rose 75.3 per cent year on year to 300.3 million yuan (US$43.6 million), according to its latest available data.

More Koreans, aided by Beijing’s visa-free policies, are travelling to China where they become familiar with tea-based beverages infused with fruit, juices, vegetables and dairy products, prepared freshly on site.

In 2017, Gong Cha Korea acquired its Taiwanese parent company, making the brand Korean-owned. Photo: Shutterstock Images
In 2017, Gong Cha Korea acquired its Taiwanese parent company, making the brand Korean-owned. Photo: Shutterstock Images

Choi Yong-hee, a 34-year-old graduate student based in the university district of Sinchon, where Chagee plans to open one of its outlets, is among those consumers. He first encountered the brand during a family trip to Shanghai last October.

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