Strolling through the streets of Seoul today, you might experience a sense of unfamiliar familiarity.

At Exit 10 of Gangnam Station or the Yongsan I'Park Mall, countless young South Koreans brave the scorching sun, queuing for 2-3 hours just to get their hands on a cup of CHAGEE's "Boya Juexian"; around universities like Central University and in the Myeongdong business district, the Snow King Castle of Mixue Ice Cream & Tea is crowded with South Korean university students cheering "it's a great deal" for its high cost-performance; and Yang Guofu Malatang has thoroughly integrated into the daily diets of South Koreans, with sweet and sour pork and malatang even becoming soul food for Seoul office workers.

For most South Koreans, brands from China represent a new choice. Novelty is the primary reason driving South Korean consumers to notice Chinese brands. Beyond that, South Korean consumers' attitudes toward Chinese brands are inseparable from the deep ties between the two markets: on one hand, both countries belong to East Asian culture, giving Chinese brands a natural sense of familiarity to South Korean consumers; on the other hand, as exchanges between the two countries grow closer, such as an increase in Chinese students studying in South Korea, Chinese elements are increasingly integrated into South Korea's mainstream societal culture and commercial civilization.

For Chinese companies, their attitudes toward the South Korean market are also changing. This long-overlooked market, often seen as the bottom of the Contempt Chain (disdain chain) in the eyes of Chinese people, was not considered an ideal destination for going global. Today, however, companies in various fields—consumer brands, cross-border e-commerce, gaming, short dramas—are viewing South Korea as a promised land for their global expansion.

Moreover, the other side of the story is even more astonishing, particularly the soaring performance of the South Korean stock market. Entering 2026, the South Korean capital market is witnessing an epic surge, with the Korea Composite Stock Price Index (KOSPI) skyrocketing from 4,300 points at the beginning of the year to historically breaking through the 8,000-point mark in mid-May this year, a surge of over 85% in half a year. Amid the AI wave, Samsung and SK Hynix have seen their HBM (High Bandwidth Memory) orders surge, with the combined market value of the two giants even exceeding South Korea's annual GDP. A stock market frenzy, with even minors opening accounts, has swept across South Korea.

Has this global capital extravaganza made the wallets of ordinary South Korean consumers overflow with cash? Do Chinese and South Korean consumers, who serve as societal mirrors of each other, have a natural familiarity with each other's products? And why do Chinese brands often become instant hits in South Korea but struggle to maintain long-term success?

In this episode, we invite Quan Xiaoxing, the host of the popular podcast "East Asia Observation Bureau" and a seasoned observer of East Asia with over a decade of experience living in South Korea.

In our conversation, he draws on his over ten years of experience in South Korea to deeply analyze the evolution of Chinese elements in South Korea, the current development of Chinese e-commerce and hardcore industries (such as automobiles and commercial vehicles) in South Korea. We dissect the real perceptions of ordinary South Koreans and the attitudes of different generations toward China, attempting to interpret the hidden East Asian economic linkages between the two.

The Speakers—

Host | Yangzi, Li Xiaotian

Guest | Quan Xiaoxing, Host of "East Asia Observation Bureau"

Here's what we discussed in this episode. You're also welcome to open Xiaoyuzhou to listen to more stories:

The Chinese in South Korea: Three Eras of Transformation

South Koreans' perception of "Chinese brands and consumer goods" did not happen overnight but has gone through three stages of development, moving from superficial to in-depth and from the margins to the mainstream:

The Era of Migrant Workers (Before the 2010s): Stereotypes of Low-End and Dirty Conditions

Early Chinese elements were mainly confined to areas populated by migrant workers in South Korea (such as ethnic Koreans from China and fellow Northeasterners) in gatherings (such as Ansan and Daerim).

At this time, "Chinese cuisine" was highly localized Korean-style Chinese food (such as jajangmyeon and jjamppong, with historical backgrounds of anti-Chinese sentiment and flour relief during the Park Chung-hee era). Authentic Chinese cuisine (Northeastern Chinese food) was labeled as dirty and chaotic, similar to "urban villages," and rarely patronized by mainstream South Korean groups.

The Era of Student Boom (Early 2010s to Pre-Pandemic): Youthfulness and Reputation Building

With the overwhelming growth of the Chinese student population, a large number of youthful Chinese restaurants and consumer goods (such as Haidilao and early Taiwanese milk tea brands like Gong Cha) emerged around universities.

This stage marked the primitive accumulation period for Chinese consumer goods to establish a reputation in South Korea. Through the Chinese community, they attracted South Korean youths willing to try new things and on a tight budget, breaking the previous low-end image.

The Post-Pandemic and Internet Spillover Era (Around 2020 to Present): Frequent Hits and Cultural Ecosystem Formation

Fueled by SNS (YouTube, TikTok, Instagram), Chinese trendy drinks and foods like malatang, tanghulu, and CHAGEE have sparked a frenzy among young South Koreans.

Haidilao has become a trendy clock in (check-in) culture in South Korea, with celebrities and artists vying to post "DIY sauce challenge" videos on social media. Chinese consumer brands are forming their own "little universe" and ecosystem in South Korea.

Redefining Chinese Brands in South Korea: A "Market Hub" Rather Than Extreme Cost-Effectiveness

Early Chinese products in South Korea filled niche segments overlooked by South Korean giants

From the "Xiaomi Power Bank" (mockingly referred to as "a mistake from the mainland" by South Koreans) to the buying frenzy triggered by the Lenovo Xiaoxin Pad, to robotic vacuum cleaners like Dreame.

It's not that South Korean chaebols lack the technology, but rather that chaebols (such as Samsung and LG) arrogantly abandoned these low-margin niche markets; meanwhile, South Korea's long-term deformed (distorted) industrial structure squeezed the R&D and independence space of local SMEs. Chinese companies seized the opportunity by leveraging their strong cost control and supply chain capabilities.

The spillover effect of China as a "global demand hub"

Taking bicycle parts as an example, the South Korean domestic market is extremely small, and local production would be prohibitively expensive (with prices multiplied by two or three zeros).

Thus, the hub was born: China aggregates orders from around the world, enjoying high component interchangeability and economies of scale. Even if South Korea only needs five niche parts each year, China can produce them at an extremely low average cost. South Korean e-commerce platforms (such as Coupang, Gmarket, and Wadiz crowdfunding) have long been essentially "large-scale second-hand dealers of Yiwu, China." Now, with AliExpress and TEMU directly linking to the source, a dimensionality reduction strike has naturally formed.

New Energy Vehicles: A Two-Way Street in South Korea

The Daewoo Bus Scandal and the Opportunity for Chinese Commercial Vehicles

The South Korean commercial vehicle market was once dominated by Hyundai and Daewoo. However, mismanagement by Daewoo's major shareholder (Yongan Hat Factory) led to a major strike and factory relocation, causing Hyundai's orders to surge and production to be booked a year in advance.

Coinciding with aggressive new energy and environmental policies implemented by local governments in South Korea, Hyundai couldn't deliver vehicles, and Daewoo's production was paralyzed, creating a huge market gap for Chinese buses (Yutong, Golden Dragon, Higer, BYD).

BYD's Absolute Cost Moat

As the South Korean government adopted a "closing the barn door after the horse has bolted" protectionist policy (such as targeted subsidy reductions for lithium iron phosphate batteries to protect the local ternary lithium battery industry), Chinese companies faced trade barriers.

However, BYD's global supply chain and cost control had evolved to a point where, even without a penny of subsidies from the South Korean government, its prices could still be 20% lower than those of similar Hyundai models.

Challenges of Going Global in South Korea: Severe Localization Information Gaps and PR Blind Spots

Heavy Reliance on Local Intermediaries (Agents/Agencies), Lack of Multi-Channel Information Verification

When facing South Korean business operations, the domestic decision-making layer has extremely single information channels, often taking "what the intermediary says as gospel," and even official economic and trade promotion agencies can only rely on public reports due to limited manpower. Domestically, there is a lack of think tanks to verify the correctness of these decisions.

Lack of Ability to Respond to Geopolitical and Negative Crises

When facing overseas parliamentary hearings, policy changes (such as the 2024 South Korean restriction on overseas shopping's radio wave certification scandal) or online negative reviews, Chinese companies often feel helpless and even "scare themselves to death."

Due to a lack of strategic confidence, Chinese companies overseas generally choose to "do business behind closed doors and avoid public opinion." This leaves them defenseless when facing negative crises (such as the malatang hygiene scandal), where "one incident becomes a major issue."

It Turns Out South Korea Is a Huge MCN!

Reverse Appropriation of Hallyu Culture (Riding the Hallyu Wave)

South Korean society possesses strong infectious popularity and entertainment industry manufacturing capabilities (such as Jang Won-young drinking CHAGEE and Lisa popularizing Pop Mart). Chinese smartphone brands (OPPO/VIVO) have successfully created a perception among Southeast Asian consumers that they are "trendy Hallyu brands" by extensively using Hallyu celebrities as spokespeople.

Dissolving Public Opinion Hostility Over "Cultural Appropriation"

South Korean domestic public opinion is trapped in a narrow "national Contempt Chain (disdain chain)," often accusing Chinese brands of "appropriating/stealing" South Korean culture. However, from a global business perspective, Chinese brands pay hefty copyright and endorsement fees, and it is precisely because of the global use of Chinese brands that they inversely prove the immense success of Hallyu as a universal culture. Chinese companies should confidently use South Korea as a massive MCN amplifier for their global expansion.