In Korea, $100 can go a long way, especially if you spend it at Daiso.
The Howdy Korea team recently took on a $100 beauty shopping challenge at Daiso, the country’s beloved ultra-budget chain. The goal? To see just how many beauty items could be bought at what is essentially Korea’s version of a dollar store. The result: a staggering 42 items for just $105.
Daiso operates under a six-tier fixed-price model, offering over 30,000 items ranging from stationery and household goods to cosmetics and tools. Every product falls into one of six price categories: 500 won, 1,000 won, 1,500 won, 2,000 won, 3,000 won, or 5,000 won — making the store a one-stop shop for bargain hunters. The brand proudly positions itself as the “nation's store,” and many Koreans would agree.
And it’s not just a cultural fixture — it’s also a commercial powerhouse. In 2024, Daiso surpassed 4 trillion won in annual revenue, up from 3.46 trillion won the previous year. Its rise in popularity can be traced to three key factors: ownership identity, favorable timing (amid Korea’s sluggish economy) and product diversification.
Daiso was founded in Korea in 1992, its name derived from a Korean pun meaning “we have it all." But for years, it was dogged by the perception that it was a Japanese company — a result of the 34 percent ownership once held by a Japanese parent firm and the presence of stores in Japan with the same name. It was a sensitive issue given Korea and Japan’s complicated history.
This association proved damaging, especially during the “No Japan” boycott movements of 2019 and 2020, when anti-Japanese sentiment and a trade dispute between Korea and Japan led to consumer backlash. Despite the Korean retailer's insistence that it operated independently, sales suffered.
That changed dramatically in December 2023, when Korean firm Asung HMP acquired full ownership by buying out the Japanese shares. The announcement was met with celebratory fanfare on social media: “Time to start shopping patriotically,” one user posted on X. “I can finally go back to Daiso, guilt-free.”
Korea has long embraced the concept of "ga-seong-bi," or maximizing value for every won spent. During times of economic uncertainty, when consumers are more cautious about their spending, this drive for value becomes even more pronounced. As job security wavers and inflation looms, consumers are looking for ways to cut back without sacrificing quality. Daiso offers a reliable solution: a store with predictably priced items, where spending is minimized, yet the variety of products on offer is almost limitless.
The impact of these consumer priorities is evident in Daiso’s financial performance. Last year, Daiso’s operating profit jumped by 41.8 percent, with margins nearing 10 percent — a sharp contrast to the much leaner margins seen at other retail giants like Coupang and Emart. This strong financial performance underscores the efficiency of Daiso’s business model and mirrors a broader consumer shift toward budget-friendly, value-focused shopping during uncertain economic times.
Daiso’s reach extends far beyond household goods. It has strategically positioned itself as a destination for budget-friendly fashion, health supplements and beauty products — and not just any beauty products. While the store did sell cosmetics a decade ago, they were perceived as low-quality and faced criticism for targeting young students, which led to a 2011 ban on sales to elementary school children.
However, times have changed. Today, Korea’s leading beauty brands — including Amorepacific and LG Household & Health Care — have developed Daiso-exclusive product lines. Etude, for instance, launched the subbrand Play 101, designed for makeup novices seeking fun and affordable options. LG offers Code Glocolor, while Too Cool for School introduced TAG, a line priced in the same budget-friendly range of 1,000 won to 5,000 won.
These collaborations have turned Daiso into a shopping destination not only for locals but for tourists as well. In 2023, foreign card transactions at Daiso rose by 42 percent in volume and 50 percent in value year-on-year, according to the company.
Daiso hasn't escaped criticism, however. The company has frequently faced accusations of copying product designs. In 2023, it was forced to pull a water bottle from shelves after Korean design firm Revelop claimed the product infringed on its intellectual property rights. Similar disputes have occurred in the stationery division — most notably in 2020 with the Bom Bom (Spring Spring) series, when the company was accused of copying an independent designer’s work. One designer lamented on a blog, “There’s no such thing as a completely original idea, but when a giant like Daiso replicates your design, all my hard work is reduced to a 1,000-won version.”
Despite its blemishes, Daiso remains an irresistible shopping destination for anyone visiting Korea. Travelers and foreign students alike can find great bargains — from big-name K-beauty products to everyday household essentials, all at low prices and reasonable quality. Even during the Howdy Korea beauty challenge, Colombian-Korean broadcaster Kathy noted that, despite her sensitive skin, Daiso's cosmetics caused no irritation or allergic reactions — prompting her to take a few items home with her.
If you're in Korea, take a break from the sleek, glamorous department stores and dive into the quirky, budget-friendly world of Daiso. Even if you decide not to purchase anything, wandering through aisles stocked with over 30,000 items is an experience in itself — a vivid snapshot of Korea’s resilient, value-conscious consumer culture.