A Chagee store in China / Courtesy of Chagee

HONG KONG — Chinese tea brands are accelerating their expansion into Korea, driven by intensifying competition at home and rising demand for healthier beverages in a market long dominated by coffee.

Chagee, known for its milk tea and branding inspired by traditional Chinese culture, said it planned to open three stores in Seoul in the second quarter, marking its first expansion into East Asia outside China.

The company operated 7,338 teahouses as of last September and has built a significant presence across Southeast Asia, including Indonesia, Malaysia, the Philippines, Vietnam, Singapore and Thailand. In the third quarter of 2025, its overseas gross merchandise value rose 75.3 percent year-on-year to 300.3 million yuan ($43.6 million), according to its latest available data.

More Koreans, aided by Beijing’s visa-free policies, are traveling to China where they become familiar with tea-based beverages infused with fruit, juices, vegetables and dairy products, prepared freshly on site.

Choi Yong-hee, a graduate student based in the university district of Sinchon in Seoul, where Chagee plans to open one of its outlets, is among those consumers. He first encountered the brand during a family trip to Shanghai last October.

“What I liked about Chagee was that the milk tea wasn’t too strong and was fragrant, making it easy to enjoy. I haven’t been able to find milk tea like this in Korea,” Choi said. “I’m glad I can have it more often now.”

Korean tourists pose in Yuyuan Garden in Shanghai, Jan. 6. Xinhua-Yonhap

Social media is fueling the trend, with users sharing menu recommendations and reviews. Google Trends data shows that searches for “Chagee tea” in Korea have risen 110 percent over the past three months.

For years, Taiwan’s Gong Cha dominated Korea’s milk tea market. Founded in Kaohsiung in 2006, the brand entered Seoul in 2012. In January 2017, Gong Cha Korea acquired its Taiwanese parent company, making the brand Korean-owned. As of 2024, it had 836 outlets nationwide.

Source: Korea Times News