May 29, 2004
From Korea Times, News Report, Translated By Aruna Lee

LOS ANGELES -- With a burgeoning Latino population in Koreatown, Korean-owned businesses are finding new opportunities by catering to Latino residents.

In the past, Korean-owned businesses relied entirely on the Korean community for support. When a particular business would become successful, other Koreans would frequently open similar businesses in the vicinity, quickly saturating the market.

For example, Mr. Park, who owned a restaurant and bar in the heart of Koreatown, said business was good in his first year until other bars catering to Koreans opened, slicing into his customer base.

Community members estimate Koreatown is now roughly 50 percent Latino. Mr. Park recognized a largely untapped market. He said there were no bars in Koreatown that appealed specifically to Latinos, and many had to travel far to bars in other neighborhoods. As a result, Mr. Park decided to transform his Korean establishment to a bar targeting Latinos, Playas Azules.

Since he opened Playas Azules, Mr. Park says customers have been lining up out the door.

"Korean businesses need to find a way to target the Hispanic market instead of competing with each other for the smaller Korean market," says Mr. Park.

Mr. Park also benefits from added savings in his new business. Unlike Korean bars, Playas Azules does not serve food, eliminating the need for waitresses and bus boys. "The cost of running Playas Azules is far less than running a Korean bar."

Since Mr. Park opened Playas Azules, other Korean-owned businesses, like bakeries, clothing stores and coffee shops, have begun to reach out to Latinos.

After clothing store owner Ernie Lee changed his business's name to La Baratita, sales spiked.

Recognizing the business potential, community leaders encourage more Korean business owners to create stronger ties to the Latino community. "Good relations with the Hispanic community is essential for Koreans doing business in Koreatown," says Charles Kim, director of the Korean American Coalition.