[THE INVESTOR] The leading retailers in Korea are seeking to cash in on the global popularity of hallyu by sealing strategic tie-ups with entertainment companies to sell exclusive merchandise.

Products bearing the images of popular K-pop artists and actors have largely been available only online. However, the success of a small store at Lotte Department Store’s Young Plaza in Myeong-dong, Seoul, appears to have caught the fancy of the retailer.

The store dedicated to K-pop stars saw sales grow fivefold this year, half of which were accounted for by Chinese customers.

This has prompted Lotte to join hands with YG Entertainment -- home to some of the biggest K-pop acts such as Psy, Big Bang and 2NE1, as well as actors and actresses -- to open a larger store on Aug. 12 where fans can now touch and try the goods before they pull out their credit cards.



Lotte will offer officially endorsed celebrities goods available in over 100 categories, ranging from the mandatory clothing and stuffed toys to scented candles and cosmetics.

Earlier in March, Korea’s top retail chain E-mart teamed up with SM Entertainment to introduce its private brand products bearing the name and face of its artists such as EXO Sonjjajang and Shiny Sparkling Water.

Meanwhile, the two entertainment giants are also tapping into the restaurant business. SM is running tapas restaurant SMT Seoul in Cheongdam-dong, while YG opened YG Republique in Myeong-dong and Yeouido. 

By the end of this year, both will expand out of the country: SM will branch out into Tokyo and Los Angeles while YG will branch out in LA and Bangkok.

By Hwang You-mee (glamazon@heraldcorp.com)