The latest deal is the second of its kind for BGF Retail after a contract with Iranian retail firm Entekhab Investment Development Group last year.

Under the master franchise deal, BGF Retail - the franchiser - will provide brand and overall system and knowhow to local franchisee Central Express that will be responsible for investment and operations.

Central Express is the retail arm of Premium Group, exclusive supplier for Mongolia’s largest mine and wind power project. The company, which opened its first convenience store in Mongolia in 2015, said that it signed the latest deal with BGF Retail in a move to secure leading position in the country’s convenience store market based on its systematized system and 30 years of operation knowhow.

Mongolia is considered a country with high growth potential for the convenience store market as young people under age 35 make up 65 percent of total population. The popularity of Korean culture including K-pop and drama has also been growing in the country with consumers gaining favorable impression on Korean brands.

Park Jae-koo, chief executive of BGF Retail, said that consumers in Mongolia have keen interest in Korea due to the influence of hallyu, or Korean wave, and the countries shares similar culture. The company will strive to become a global convenience store operator by advancing into emerging markets with high growth potential, he said.