The Evolution of the Korean Laundry Industry: From Neighborhood Laundries to Global Expansion

This article is based on Wash Friends’ experiences and market analysis. It does not intend to single out or criticize any specific company, nor does it aim to engage in defamation or unfair competition. All content is meant to explain general market trends and may differ from actual situations. Wash Friends holds no responsibility for any misunderstandings arising from this article.

Hello! Today, let's take a journey through the evolution of Korea’s laundry industry, from its early beginnings to the present day. The history of laundry services in Korea is not just about keeping clothes clean—it reflects changes in technology, economy, and consumer behavior. From the emergence of local laundries in the 1990s to the rise of unmanned laundromats, O2O (Online to Offline) platforms, and global expansion, the industry has undergone remarkable transformations.

A photo of a Korean neighborhood laundry shop that has been around for over 30 years

1990s: The Birth of Laundry Businesses Amid Economic Growth

The 1990s were a time of rapid economic development in Korea, despite major challenges like the IMF crisis. As urbanization progressed and people’s lives became busier, the demand for laundry services grew. Traditional neighborhood laundries thrived, run by skilled professionals who specialized in washing, repairing, and ironing garments.

However, the industry landscape began to change with the emergence of CleanTopia. This company introduced the “Laundry Convenience Store” model, which allowed people to start a laundry business without specialized skills. By opening stores in B-tier commercial areas, CleanTopia minimized initial investment costs while maximizing accessibility. Their innovative pricing strategy—offering shirt ironing services for 1,000 KRW(0.7 USD)—specifically targeted office workers who needed professionally laundered shirts. This marked the beginning of a shift in the market, as CleanTopia rapidly gained dominance with affordability and convenience.

2000s: The Rise of Laundry Franchises

CleanTopia’s success inspired the emergence of other franchise brands like CleanAid and World Cleaning. These franchises introduced standardized systems and enhanced service quality, solidifying their presence in the Korean laundry market. The three companies spearheaded the premium laundry sector, but CleanTopia outpaced its competitors, expanding nearly 4–5 times faster to reach approximately 3,000 locations nationwide.

CleanTopia hybrid store

However, laundry businesses faced a unique challenge—once customers found a trustworthy service, they rarely switched. Initially, this meant that neighborhood laundries retained their loyal customers. However, as customer expectations shifted towards service quality and professionalism, franchise laundries, with their systematic operations and reliability, gradually won over consumers. This led to a decline in traditional neighborhood laundries, and today, it is rare to see new independent laundries opening.

2010s: The Rise of Unmanned Laundromats

In the 2010s, rising labor costs and changing residential environments fueled the popularity of unmanned laundromats. With apartments offering limited drying space and people having less time for household chores, the demand for self-service laundry solutions grew. Initially, there was skepticism—many questioned the need for laundromats when most households had washing machines.

The pioneer of the unmanned laundromat market in Korea was UniLux (CleanUp24). Despite the risks, they paved the way for this new industry. Later, Wash Friends and Wash Enjoy entered the scene, differentiating themselves with strong marketing and sleek interior designs. Between 2017 and 2019, these two companies aggressively expanded, currently each opening around 1,000 stores, contributing to the nationwide boom of over 5,000 laundromats. CleanTopia responded by integrating unmanned systems into its existing stores, maintaining its competitive edge with a hybrid model.

Wash Friends laundry equipment and store interior(Alliance, Huebsch)

Wash Enjoy laundry equipment and store interior(Electrolux Professional)

Post-COVID-19: The Rise of Contactless and O2O Laundry Services

The COVID-19 pandemic accelerated changes in the laundry industry. With more people avoiding in-person interactions, demand for contactless services surged. Companies like Cheongchun Laundry implemented unmanned and automated systems, allowing customers to drop off and pick up their clothes without human contact. Meanwhile, WashSwat and Laundrygo revolutionized the market with smart laundry factories and app-based pick-up and delivery services. Their convenient model—customers simply leave their laundry outside their door for overnight collection—gained massive popularity during the pandemic.

Cheongchun Laundry's unmanned collection box (premium laundry services also available unmanned)

WashSwat Smart Laundry Factory

Unmanned laundromats, facing thin profit margins, also diversified by integrating other automated services like unmanned cafés and ice cream kiosks. CleanTopia, on the other hand, invested in a luxury laundry factory and rebranded itself to cater to the premium segment. The industry’s focus shifted from equipment quality to service innovation, emphasizing mobile apps, operational efficiency, and value-added services.

Unmanned laundromat and ice cream shop (shop-in-shop store)

Korean Laundry Industry Goes Global

As the domestic market became saturated, Korean laundry businesses looked abroad for growth opportunities. UniLux expanded into China, Wash Friends entered Vietnam, and Wash Enjoy set its sights on Thailand.

Since 2021, Thailand’s laundromat market has grown explosively, with over 2,000 stores opening in just four years. While Wash Enjoy is a leading brand in Korea, its international expansion in Thailand has been slower, operating around 150 stores via a master franchise model. Meanwhile, local Thai companies like Otteri and Wash Xpress, which initially lacked industry experience, have now surged ahead with over 500 locations each. This highlights the importance of local market understanding, something Korean companies initially underestimated.

Wash Friends, after first introducing the unmanned laundromat model in Vietnam, adapted its business strategy to better fit the local market. Today, it operates over 60 premium stores and plans to expand further by launching unmanned and hybrid models in 2025.

Wash Friends, sau khi lần đầu tiên giới thiệu mô hình tiệm giặt tự động không người tại Việt Nam, đã điều chỉnh chiến lược kinh doanh để phù hợp hơn với thị trường địa phương. Hiện nay, công ty vận hành hơn 60 cửa hàng cao cấp và dự kiến mở rộng thêm bằng cách ra mắt các mô hình không người và kết hợp vào năm 2025.

Thailand's No. 1 unmanned laundromat franchise company "Otteri"

The Future of the Laundry Industry: Technology and Localization as Key Drivers

Korea’s laundry industry has evolved from neighborhood laundries to franchises, unmanned laundromats, and O2O platforms. CleanTopia remains the market leader with around 3,000 stores, while Wash Friends is reshaping the industry in Vietnam. The next phase of competition will focus on combining premium laundry services with unmanned operations and refining platform-based business models.

Ultimately, in the laundry business, service quality matters more than technical expertise. As CleanTopia once said, “We’ve changed everything except the laundry itself.” Wash Friends has come to understand this firsthand through its expansion into Vietnam, where adaptability, service innovation, and localization are proving to be the true drivers of success.