French bakery Paul eyes South Korea comeback after 137 years

French bakery brand Paul is making a second attempt at the South Korean market, this time partnering with Cosmo Group, an affiliate of the GS family of companies. The move appears to reflect a judgment that the domestic bakery market has grown enough to make another push worthwhile.

According to industry sources, Paul plans to open its flagship store, "Paul 1889," in South Korea in the near future. The brand is currently setting up a temporary partition inside D Tower near Gwanghwamun Station in Jongno-gu, Seoul, as it prepares to launch its first location. Hiring is also underway for bakery, kitchen and front-of-house staff.

Paul is a bakery brand founded in France in 1889 and now present in 56 countries. In Asia, it operates in 13 markets, including Japan, Taiwan, Singapore, Thailand, Indonesia, Malaysia and the Philippines. The brand first entered South Korea in 2009 but withdrew after just two years. A subsequent operator kept the signage, which later led to a trademark dispute.

The re-entry is being led by Cosmo F&B, a food and beverage subsidiary of Cosmo Group established last year. Paul is in effect its first major project. Cosmo F&B is wholly owned by D2S1 Partners, a management consulting firm in which Heo Seon-hong — the eldest son of Cosmo Group Chairman Heo Gyeong-su — holds a 60 percent stake as of end-2025.

The growth of South Korea's bakery and dessert market is widely cited as the reason Paul is trying again after its earlier setback. According to the Samil PwC Management Research Institute, the domestic bakery market surpassed 13.6 trillion won ($9.88 billion) last year, with an average annual growth rate of 8 percent over the past five years.

Global brands have been entering the market in quick succession. French premium bakery brand Bo&Mie entered South Korea last year through Shinsegae Food. Gontran Cherrier of France and Tartine Bakery of the United States arrived earlier. More recently, Japanese dessert brands including Tokyo Milk Cheese Factory and Snow have been expanding their reach to Korean consumers through pop-up stores at department stores and shopping malls.

However, the intense competition in the domestic bakery market makes success difficult to predict. Gwanghwamun, where Paul is set to open, has emerged as a destination for both office workers and foreign tourists, drawing a growing number of competing bakery brands. Paris Baguette, the homegrown franchise, opened its Gwanghwamun 1945 store last September and has been selling limited-edition products under a "K-Paba" concept.

"When Paul first entered Korea, the domestic bakery market wasn't mature enough," an industry official said. "Now that consumers are willing to open their wallets for desserts, whether it succeeds will come down to brand differentiation."