Starbucks Korea CEO Sohn Jeong-hyun, third from left, poses with SMEs and Startups Vice Minister Cho Ju-hyeon, center, and Chairman of Korea Commission for Corporate Partnership Oh Young-kyo, second from right, after signing an agreement to seek mutual growth with the local community at Starbucks' newly opened 5th community store in Kyung Dong Market, in eastern Seoul, Friday. Courtesy of Starbucks Korea

By Kim Jae-heun

Starbucks Korea has presented a new business model for mutual growth with merchants of a traditional market by opening its fifth community store in Kyung Dong Market in eastern Seoul, Friday.

Starbucks Korea signed a four-way agreement with the Korea Commission for Corporate Partnership, Kyung Dong Market Merchants Association and KD Market to reflect on the meaning of "local community" and the value of mutual growth at its new coffee shop on Thursday.

The Korean-owned coffeehouse chain remodeled the old Kyung Dong Theater that had been built in the 1960s but had been out of business for a while. The new coffee shop has been named Kyung Dong 1960 and has about 200 seats on the third and fourth floors of the original theater building.

Starbucks Korea collaborated with LG Electronics to maximize the customer experience in its new community store. First, it installed a large art piece over the stage, which was originally a theater stage. Second, Starbucks will invite local artists to hold cultural and artistic performances on the stage regularly. Third, the company will decorate the shop with LG Electronics' old television models for customers to enjoy a retro atmosphere.

Starbucks Korea will also raise funds for the mutual growth of Kyung Dong Market by collecting 300 won ($0.23) for every item or beverage it sells at the community store. The money will be used to improve the local infrastructure at the traditional marketplace and develop additional win-win programs with merchants.

"We hope to revitalize our traditional market by transforming old spaces into a place with a special trend," Starbucks Korea CEO Sohn Jeong-hyun said. "We will provide a unique experience of Starbucks that all generations can enjoy together with the local community."

Starbucks Korea opened its first community store in Seoul's Daehangno to nurture talented young people in October 2014. It then opened its second, third and fourth community stores in Seoul in Seongsu-dong, at Seoul National University Gwanak Dental Hospital and near Gwanghwamun.

The coffeehouse chain has raised nearly 2.3 billion won through its community stores over the last eight years.