Supermarket chain Tesco has opened 18 franchise convenience stores in South Korea, as part of a trial in which the retailer and the franchisees will share opening costs and profits.

Tesco's international head, Philip Clarke, who will become chief executive in the coming year, has said that the move is meant to incorporate communities who might feel "threatened because they feel that the arrival of modern, organised retail means that other small retailers close."

The South Korean franchisees will put in 20 per cent of capital for building the convenience stores, with Tesco paying the rest. The exact details of profit sharing between the two parties are still unclear, though it is understood that the franchisees will receive a minimum income from Tesco.
Clarke did not specify in which other markets Tesco would try the sharing model.