South Korean retailers double down on character IP as competition intensifies
19 November 2025
South Korean retailers are increasingly leveraging character-based intellectual property to differentiate products and boost sales, with convenience stores and department stores stepping up competition through high-profile collaborations with both global and domestic characters.
Industry data show that convenience stores enjoyed strong sales during this year’s Pepero Day period, driven largely by limited-edition snacks and merchandise featuring popular characters. South Korean convenience store chain CU recorded a 32.4 percent rise in Pepero-related sales for November 1-11, while sales of its character-collaboration items surged 55 percent to a new record. 7-Eleven reported an even sharper jump, with its Sanrio-themed lineup pushing sales up 120 percent year-on-year.
Quick to react to trends, convenience stores have emerged as a primary battleground for character-driven merchandising. Three major chains – GS25, CU and 7-Eleven – posted significant annual growth in character-collaboration sales, with CU more than doubling its figures. The chain has rapidly expanded its character portfolio from about 50 items in 2021 to roughly 370 this year, led by the viral Ganadi series, which has surpassed 4 million units sold.
This surge reflects the broader expansion of South Korea’s character-content economy, which reached W18 trillion (US$13.3 billion) last year – a more than 30 percent increase over five years, according to the Korea Creative Content Agency.
Retailers are now moving beyond one-off tie-ins to develop proprietary IP and build full “worldviews” around their characters. GS Retail is crafting a broader universe around its in-house character lineup, while department stores are increasingly adopting IP as a customer-engagement strategy. Hyundai Department Store has launched pop-ups featuring its character Hindy, and Lotte Department Store is preparing a large-scale Super Mario pop-up in Seoul designed as an immersive experience rather than a simple merchandise display.
Industry experts say character-driven marketing has become a core strategy for retailers facing intensifying competition and limited room for product differentiation. As brands race to secure the most resonant characters – and the emotional narratives that accompany them – the battle for IP dominance in South Korea’s retail sector is expected to grow even fiercer.
- Excel V. Dyquiangco
