Free internet access lures more and more South Koreans to Starbucks
Seoul - In a country like South Korea, a craze for coffee is not the only explanation for the unusual success that Starbucks Corporation is now enjoying there.
The success of Starbucks in South Korea can also be put down to the free internet access in its many outlets. People are now flocking to the chain stores not only to drink coffee, but to study and chat as well.
In South Korea, the Seattle-based coffee chain was once dubbed, "a place for denjang women," a reference to someone who splurges on goods that she can barely afford. Nowadays, such talk is passe and Starbucks is known as the "coffice" - a combination of coffee and office.
In 2008, Starbucks became a 170-billion-won business (113-million- dollars) in South Korea, up from 134 billion won in 2007. About 100,000 people frequent 282 Starbucks outlets across 30 cities a day. Korea Starbucks has said it will be adding another 50 outlets during 2009.
This is a rare success story for the Seattle-based coffee chain, which recently slashed 7,000 jobs and closed 300 outlets.
What makes the Korean success unique is the free internet access provided by the team of Korea Google and South Korea's largest carrier, KT Corp.
Students are willing to spend 4 to 6 dollars per cup of coffee as this allows them to spend a few hours in group study and surf the internet from a laptop.
"In the library, we must stay quiet. Here we can study and we can chat. We can sip coffee and eat chocolate cakes," said Kim Ji-Na, 21, a student at Sogang University, which is right beside a Starbucks.
Starbucks has also become a place to grab a bit of freedom from the office where workers can open PowerPoint files on their laptops and discuss a project. Cell phones keep them connected, if their boss wants them back in a hurry.
"I am free from the tense office mood. We can focus freely on our project here," said Kim Jin-Soo, 31, a manager at a semiconductor company, as he goes over things with his colleagues at Starbucks, near the COEX centre in southern Seoul.
South Korea is the fifth-biggest overseas market for the Seattle- based Starbucks Corp in terms of store numbers. It ranks behind Canada, China, Britain and Japan.
South Korea and China are two major markets that continue to grow. Starbucks opened its first stores in both countries in 1999. The Chinese market has since grown to include more than 350 outlets in 26 cities.
In China, the caffeine craze has become a middle class trend that explains the growth of Starbucks. Meanwhile, Starbucks Corporation has said there are as many as 200 million potential, middle-class coffee drinkers there. (dpa)