The Evolution Chronicle of GS Retail’s Distribution Empire Built on Success

A Small Lighthouse Guarding Your Night

Late at night, on the way home after a tiring day, even when the city’s bright lights start to dim one by one, there is always a familiar glow waiting for us. Under the blue and green signboard, someone fills their hungry stomach with a hearty lunchbox, while another quenches their thirst with a refreshing drink.

This place is not just a store. Sometimes it becomes a restaurant that fills our hungry stomachs, sometimes a general store where you can get whatever you need anytime, and sometimes a small post office and bank where you can send parcels and pay bills. A small ecosystem spreading like capillaries closest to our lives—this is GS25.

But did you know that this seemingly ordinary alley light is actually the frontline of a massive distribution empire with a 50-year history? Starting from a small company that built the frontlines, let’s embark on an exciting time travel to the heart of GS Retail, the empire beside us dreaming of becoming a ’lifestyle platform’ responsible for every aspect of customers’ daily lives.

GS Retail’s 50 Years of Transformation Timeline

Chapter 1: Alliance of Two Families, the Roots of the Empire (1971-2005)

From an Electronics Factory to a Grocery Store

The first page of GS Retail surprisingly began not with convenience stores or supermarkets but with an electronics factory. In 1971, a company named ‘Geumseong Jeongong’ started, and no one could have imagined it would one day dominate Korea’s neighborhood markets. Yet, the special DNA to read the times was already stirring.

In 1974, the company stepped into the distribution world by opening the first ‘Lucky Supermarket.’ In an era when bargaining with a market basket was the norm, the arrival of a supermarket with standardized products and neat displays was a signal heralding a new era of consumption.

**A 57-Year Promise: Trust Named ‘Inhwa (Harmony Among People)’

To truly understand GS Retail’s history, one must first know the special founding story of LG Group, its root. The Goo family and the Heo family—two unrelated families—built a giant company together for 57 years. Defying the common belief that partnerships fail, their secret was one: ‘Inhwa (人和),’ meaning harmony and trust among people.

When the Goo family handled the big-picture external business, the Heo family meticulously managed finances and household affairs. This spirit of trust and role-sharing later became a vital cultural asset for GS Retail, which prioritizes ‘co-prosperity’ with countless franchise owners and partners.

The Most Beautiful Farewell in the World

The seemingly eternal partnership between the two families faced a major change in the third-generation management era. Instead of fighting over control like other chaebols, they chose the world’s most ‘beautiful farewell.’ They agreed to focus on their strongest fields (LG on electronics and chemicals, GS on energy and distribution) and grow into global companies.

In 2005, LG Distribution finally began an independent journey under the new name ‘GS Retail.’ This farewell was not an end but a great first step toward building its own empire as a distribution expert.

Chapter 2: The Birth of a Legend, the National Convenience Store GS25 (1990-Present)

The First Convenience Store Made by Our Own Hands

In 1990, a new sign ‘LG25’ appeared in a Seoul neighborhood. It was the birth of Korea’s first native convenience store, created purely with Korean technology and capital—not borrowed from foreign brands. This pride laid a solid foundation for developing products and services perfectly suited to Korean tastes and lifestyles.

Eternal Rivals: GS25 vs CU

The history of Korean convenience stores is inseparable from the rivalry between GS25 and CU (formerly FamilyMart). Their fierce competition fueled the growth of the industry and countless innovations. While CU aggressively expanded store numbers focusing on ‘quantitative growth,’ GS25 pursued ‘qualitative growth’ by strengthening the substance of each store.

As shown, store counts fluctuate closely, but GS25 consistently leads in sales (efficiency per store).

Chapter 3: Three Innovations That Changed Market Rules

What was the secret behind GS25’s ability to hold the throne amid fierce competition? It was their continuous creation of ‘game changers’ that shifted the market landscape and won customers’ hearts.

One. The ‘Hyejaropda’ Phenomenon: Lunchboxes Creating Culture

In 2010, GS25 focused on the warm image of actress Kim Hyeja, known as the ’nation’s mother.’ The ‘Kim Hyeja Lunchbox,’ born with the concept of a generous and heartfelt mother’s meal, was a huge success. Its popularity even coined the new Korean word “Hyejaropda” (meaning generous and satisfying). It remains a rare marketing legend where a company’s product became part of the language.

Two. ‘My Fridge’: Magic in Your Pocket

Have you ever used a ‘Buy 1 Get 1’ promotion? Previously, you had to carry the free gift even if you didn’t need it immediately. GS Retail noticed this inconvenience. In 2011, they launched ‘My Fridge,’ a smartphone app that stores your free gifts digitally so you can pick them up anywhere nationwide whenever you want. This magical service crossing online and offline became the key to GS Retail’s future.

Three. The Art of Collaboration: Turning Convenience Stores into Playgrounds

As the MZ generation emerged as major consumers, GS25 transformed convenience stores from mere retail spaces into ‘cultural spaces selling experiences.’ Collaborations with popular games (MapleStory) and global OTT platforms (Netflix) created collectible products that turned convenience stores into new playgrounds for fans.

Chapter 4: Building the Kingdom, Its Light and Shadow (2005-Present)

Memories of Victory: The Glorious Revival of Supermarkets

Not content with convenience store success, GS Retail dreamed of a bigger empire. In 2019, it rebranded the outdated ‘GS Supermarket’ as ‘GS THE FRESH’ and launched a major transformation. The key was using stores nationwide as ‘urban logistics centers’ for online orders. Thanks to this, GS THE FRESH spectacularly revived as Korea’s number one supermarket.

Lessons from Failure: The Lonely Exit of ‘Lalavla’

Not all challenges succeeded. The ambitious H&B store ‘Lalavla,’ launched in 2018, ended in painful failure. It failed to differentiate itself against the powerful competitor ‘Olive Young’ and couldn’t win consumers’ hearts, ultimately closing in 2022. This failure left a costly lesson that even giant companies cannot survive without a clear identity.

A Massive Bet on the Future

Undeterred by failure, GS Retail drew a bigger picture. In 2021, offline powerhouse GS Retail merged with online leader GS Home Shopping. The same year, it made a huge investment in delivery app ‘Yogiyo,’ entering the quick commerce war where Coupang and Baedal Minjok clash. All this was a grand strategy to build a true ‘omnichannel empire’ breaking down online-offline boundaries.

Chapter 5: The Future of Convenience Stores, Crossing Digital Borders (Present and Future)

Completing the O4O Empire: ‘Our Neighborhood GS’

The future GS Retail dreams of, built over 50 years, is summed up in a single app called ‘Our Neighborhood GS.’ Convenience stores, supermarkets, quick commerce, and easy payments—all services are integrated into this app. When customers order via the app, over 18,000 stores nationwide instantly become logistics centers delivering right to their doorsteps. This is GS Retail’s strongest future weapon.

Beyond Profit: Co-prosperity

GS Retail’s future is not just about making money. The founding spirit of ‘Inhwa’ extends to co-prosperity with franchise owners, providing strong support like medical expense aid and legal counseling. Through ESG management such as operating ‘Tomorrow Store’ to help the socially vulnerable, it dreams of a warm empire growing together with society.

Back Under the Alley Light Again

Let’s return to the GS25 convenience store at 11 p.m., where our story began. This space no longer looks ordinary.

The display’s ‘generous’ lunchbox stands as a cultural symbol defining an era, and the customer scanning a QR code on their smartphone reflects the digital innovation history that began with ‘My Fridge.’ The busy movements of helmeted delivery riders evoke the fierce quick commerce war for the future.

That blue and green signboard is a legacy of 57 years of beautiful partnership, proof of survival rising from countless successes and failures, and the flag of an empire constantly reinventing itself beside us. GS Retail’s 50-year history is not a past locked in a museum. It is a living story being written anew every day in the neighborhood alley where you stand, in the ordinary lives of millions.