Why Are There No Costco Gas Stations in Korea? Rules and Fuel Market Explained

Visit a Costco in the United States, Canada, or Japan, and you may see a long line of cars waiting to buy discounted fuel.

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Visit Costco in South Korea, and the fuel station is missing.

This can be confusing for foreign residents who assume that Costco offers the same membership services in every country. Costco Korea provides the familiar warehouse, food court, tire-related services, and bulk-shopping experience, but it does not currently advertise a Costco-operated gas station at its Korean locations.

So, why are there no Costco gas stations in Korea?

Quick Answer

There is no nationwide law that specifically says Costco cannot sell fuel in Korea.

The difficulty comes from combining several separate requirements:

The site must legally permit a gas station.
Costco must register a separate petroleum retail business.
The facility must meet fire and dangerous-material safety standards.
The property must have enough space for underground tanks, tanker deliveries, pumps, parking, and vehicle queues.
Nearby roads must be able to handle additional traffic.
The project must make commercial sense in Korea’s already competitive fuel market.

The unsuccessful attempt to build a Costco gas station in Gimhae in 2023 illustrates these problems. The proposed site was designated as a market facility under the local urban plan, where a gas station was not an allowed use. Costco requested a planning change, but Gimhae City ultimately declined the proposal.

The most accurate conclusion is therefore:

Costco gas stations are not nationally banned in Korea. They are difficult to develop because fuel retail, urban planning, road access, safety, and local approval must all fit the same site.

What Is a Costco Gas Station?

Costco is a membership-based warehouse retailer.

Unlike a conventional supermarket, Costco sells a limited selection of products in large quantities. Its business model depends on high sales volume, efficient distribution, relatively low retail margins, and recurring membership fees.

In many countries, Costco also operates fuel stations near its warehouses. Costco classifies gasoline as an ancillary business, meaning an additional service that supports its main warehouse operation.

Costco reported that it operated 747 gas stations worldwide at the end of its 2025 fiscal year. Gasoline accounted for approximately 10% of its total net sales that year. The company also says its gasoline business increases warehouse traffic, although it generally produces a lower gross-margin percentage than its non-gasoline businesses.

The system works like this:

Costco purchases and sells a large volume of fuel.
It accepts a relatively small profit margin per unit.
Members receive a noticeable price benefit.
The fuel discount increases the value of membership.
Members visit Costco more frequently and may shop inside the warehouse.

From a business perspective, the gas station is not an unrelated side business. It is another part of the membership ecosystem.

Is Costco Fuel Banned in South Korea?

No general national rule specifically prohibits Costco or another foreign retailer from operating a gas station in Korea.

However, selling gasoline or diesel is not treated as an ordinary extension of a supermarket or warehouse.

A company must satisfy Korea’s petroleum retail registration requirements. Local authorities may also apply requirements connected to:

Urban planning
District-level land-use plans
Road access
Traffic conditions
Building regulations
Environmental conditions
Distance from a large-scale retail store

Korea’s petroleum retail registration standards allow local governments to establish certain additional conditions based on local planning, road, traffic, and building rules. The standards also recognize that the relationship between a gas station and a large-scale retail facility may be considered.

In other words, Costco cannot simply place several pumps in a corner of an existing parking lot.

It must develop and register a legally compliant petroleum retail facility.

Why a Gas Station Is More Than a Few Pumps

A driver may see only a canopy, payment terminal, and fuel pumps.

From an engineering and regulatory perspective, a gas station is a separate operating system.

A Costco-style fuel station may require:

Underground fuel storage tanks
Fuel dispensers and piping
Leak and spill-control systems
Fire-prevention equipment
Emergency shutdown systems
Safe access for fuel-delivery tanker trucks
Separate vehicle entrances and exits
Space for cars waiting to refuel
Adequate distance from surrounding structures
Compliance with building and dangerous-material rules
A traffic design that does not block public roads

Queue space is especially important.

Discounted Costco fuel can attract many vehicles at similar times, particularly before warehouse opening, after work, and on weekends. The site must handle warehouse shoppers, fuel customers, delivery trucks, pedestrians, and surrounding traffic at the same time.

That requires considerably more land than the pumps themselves occupy.

How District-Level Land-Use Plans Affect Gas Stations

One of the most important concepts is the district-level land-use plan, called a jigu-danwi gyehoek or 지구단위계획 in Korean.

A district-level plan sets detailed rules for a particular development area. It may specify:

Which types of buildings are allowed
How land parcels may be used
Maximum building size or height
Vehicle entrances and exits
Parking arrangements
Pedestrian routes
Road connections
Landscaping and public facilities

A parcel being zoned for commercial activity does not automatically mean every commercial use is permitted.

A market, department store, warehouse retailer, gas station, hotel, and logistics facility can all be treated as different uses. A gas station may therefore be prohibited even when a large retail store is already operating on the property.

This distinction became central to Costco’s proposed fuel station in Gimhae.

The Gimhae Costco Case

The Costco warehouse in Gimhae is located in the Juchon Seoncheon district of South Gyeongsang Province.

In 2023, Costco pursued a plan to install a membership fuel station near the warehouse. However, the relevant property was designated as an urban planning facility for a market.

In an official response to public complaints, Gimhae City explained that the district plan did not permit a gas station within that market facility. The city also described the approval sequence: the project would need to be reviewed under national land-planning and building rules, dangerous-material requirements by the fire authority, and petroleum business registration procedures.

Costco later proposed changing part of the urban management plan so that the fuel station could be developed.

The city reviewed the proposal through its urban planning process. In November 2023, Gimhae City decided not to accept it after the planning committee found the proposal unsuitable. The review also considered local concerns involving traffic, nearby apartments, school routes, noise, safety, and fuel-vapor risks.

The Gimhae case shows an important legal distinction:

The warehouse property was approved for a market-related use.
A gas station was classified as a different facility.
Costco needed a planning amendment before applying for the remaining fuel-station approvals.
The local government was not required to approve that amendment.

This was a site-specific planning decision, not a national ban on Costco fuel.

Why Korean Costco Sites Can Be Difficult

Many Costco gas stations are developed on properties designed from the beginning for high vehicle volume.

A typical successful site needs:

A large parcel
Multiple approach lanes
Separate warehouse and fuel traffic
Long internal queue lanes
Safe tanker-truck access
Enough parking after allocating land to the gas station
A land-use designation that permits petroleum retail

Some Korean Costco stores operate in dense commercial areas surrounded by apartments, schools, intersections, and pedestrian routes.

Even when a warehouse is described as suburban, the surrounding development may be much denser than the car-oriented retail areas commonly seen around North American warehouse stores.

Land is also a major constraint.

A fuel station consumes space not only for pumps but also for tanks, tanker access, turning areas, safety zones, and queues. Using existing Costco land for fuel could reduce parking capacity at stores that are already crowded.

Costco Fuel Requirements vs. Common Korean Constraints

Factor	Conditions That Help a Costco Fuel Station	Potential Challenge in Korea
Land and space	Large property with dedicated pump and queue areas	High land costs, compact sites, and limited parking
Permitted land use	Gas station use included in the original site plan	A market or retail designation may not permit petroleum retail
Road access	Wide roads and several vehicle entrances	Congested intersections or limited entry points
Surrounding area	Separation from homes, schools, and busy pedestrian routes	Apartments and schools may be located close to the warehouse
Traffic capacity	Internal lanes contain peak-time queues	Fuel customers could add to existing weekend congestion
Fuel competition	Large price gap supports a warehouse-club fuel model	Altteul, self-service, and independent stations already compete on price
Development timing	Fuel station planned with a new warehouse	Retrofitting an existing store requires land and approval changes

This does not mean fuel stations are easy to build in the United States or Japan, or that every Korean Costco has the same limitations.

It means Costco must evaluate each site separately. The company itself notes that the number of warehouses with gas stations varies significantly by country.

Why Does Costco Have Fuel Stations in Japan?

Japan is often mentioned because it is also densely populated and has strict land and safety regulations.

The difference is not simply that Japan allows Costco to do something Korea prohibits.

Costco has been able to develop certain Japanese locations where the required conditions align:

Fuel retail is permitted on the site.
The property has sufficient space.
Road access can accommodate fuel traffic.
Fuel supply arrangements are commercially viable.
Local approvals can be obtained.
Expected sales volume justifies the investment.

Country-level services are not identical across the Costco network. A warehouse may have a fuel station, pharmacy, optical center, hearing-aid center, or tire service in one market but not another.

A Costco membership is global, but each warehouse operates within local laws, property conditions, and consumer markets.

Korea Already Has a Discount Fuel Network

Costco would also be entering a market that already has several types of lower-priced fuel retailers.

Korean drivers can choose among:

Major oil-company brands
Independent gas stations
Self-service gas stations
Highway service-area stations
NongHyup agricultural cooperative stations
Altteul gas stations

An Altteul gas station, written 알뜰주유소, is a budget-oriented station participating in a fuel distribution program supported by the Korean government and public-sector organizations.

The word altteul roughly means economical, practical, or careful with money.

Korea National Oil Corporation says the Altteul program is intended to encourage competition, improve the domestic petroleum distribution structure, and contribute to reasonable fuel pricing. As of December 2025, Korea had 1,318 Altteul stations, representing approximately 12.3% of the country’s gas stations. This included independent Altteul stations, ex highway stations, and NH stations operated through the agricultural cooperative network.

A Costco station could still attract customers, but Costco would need to offer enough value to justify:

Property costs
Planning changes
Construction
Fuel procurement
Regulatory compliance
Traffic management
Local opposition
Low-margin fuel sales

The absence of Costco fuel does not mean Korean drivers have no discount option.

Korea’s Fuel Prices Are Highly Visible

Another important part of the Korean fuel market is Opinet.

Opinet is the official fuel-price information service operated by Korea National Oil Corporation. It collects and publishes sales-price information from gas stations and LPG filling stations throughout Korea.

Drivers can search for stations:

By current location
By city or district
Along a route
Along a particular road
By fuel type
By price

Opinet warns that its displayed prices were collected at a particular time and may differ slightly from the actual price when the driver arrives.

This price transparency changes the market.

Drivers do not need to belong to a warehouse club to find comparatively inexpensive fuel. They can compare nearby stations before leaving home or while planning a route.

How to Use Opinet in Korea

Step 1: Open Opinet

Search for Opinet in your phone’s app store or use the Opinet website.

The Korean name is:

오피넷

Step 2: Select the Correct Fuel

The most common fuel labels are:

Korean	English
`휘발유`	Regular gasoline
`고급휘발유`	Premium gasoline
`경유`	Diesel
`자동차용 LPG`	Automotive LPG
`등유`	Kerosene, not normal car fuel

Check your vehicle’s required fuel before comparing prices.

Step 3: Search Near Your Location

Choose the location-based search and allow location access, or manually select your province, city, and district.

Opinet can also search by route or road, which is useful for longer drives. Its official site provides regional, route-based, and road-based station searches.

Step 4: Compare Price and Distance

The cheapest station is not always the best choice.

Compare:

Price per liter
Distance from your route
Opening hours
Whether the station is self-service
Expected traffic
The amount of fuel you need

Driving a long distance to save a few won per liter may consume more fuel than it saves.

Step 5: Confirm the Price at the Station

Check the station’s roadside sign and pump display before beginning.

Opinet prices can change after the information was collected, so use the app as a comparison tool rather than an absolute guarantee.

How to Find an Altteul Gas Station

Search one of these terms in Opinet or a Korean navigation app:

알뜰주유소
셀프주유소
저렴한 주유소
주변 주유소

Common Altteul branding includes:

알뜰주유소 — independent Altteul station
ex알뜰주유소 — commonly found at expressway service areas
NH알뜰주유소 — operated through the NongHyup network

“Altteul” does not guarantee that a station is the cheapest option at every moment. Compare the live local prices rather than relying only on the brand.

Practical Warning: Avoid Putting in the Wrong Fuel

Foreign drivers using a Korean self-service gas station should pay close attention to the fuel label.

Do not assume that nozzle color is a universal standard. Pump and nozzle colors can differ between station brands and equipment.

Read the Korean text instead:

휘발유 = gasoline
경유 = diesel
고급휘발유 = premium gasoline
LPG = liquefied petroleum gas

Before refueling a rental car:

Check the rental agreement.
Look for a label near the fuel cap.
Ask the rental company when uncertain.
Select the fuel by its written name, not color alone.

Misfueling warning: If you realize that you selected the wrong fuel, stop immediately. Do not start the engine. Contact the station attendant and your rental company, insurer, or roadside-assistance provider.

At a self-service station, the phrase 가득 means “fill the tank,” while a button showing an amount such as 50,000원 means you are authorizing up to that payment amount.

Could Costco Open a Gas Station in Korea Later?

Yes, it remains possible in principle.

A future Costco fuel station would probably be easier to develop as part of a newly planned warehouse than as an addition to an existing store.

Planning the two facilities together would allow Costco to reserve space for:

Underground tanks
Tanker deliveries
Dedicated fuel entrances and exits
Long internal queues
Fire-safety separation
Parking
Road improvements
Pedestrian protection

The property would also need an urban-planning designation that permits a gas station.

As of July 2026, Costco Korea’s public warehouse and service information does not advertise an operating Costco gas station in South Korea. Costco’s official membership information confirms that Korean memberships can be used at Costco locations worldwide, but available services still vary by country and warehouse.

Until Costco or a local government announces an approved project, foreign residents should not assume that fuel will soon become part of Costco Korea membership.

The Engineer Dad Explanation

Think of a Costco warehouse and its gas station as two machines connected to the same system.

The warehouse requires:

Retail approval
Product deliveries
Customer parking
Building operations

The gas station requires an additional set of inputs:

Petroleum retail registration
Underground storage
Fire-safety approval
Tanker access
Traffic capacity
Queue space
Permitted land use

A Costco fuel station can operate only when all of those inputs are available at the same location.

In Korea, one or more inputs may be missing:

The land may be designated only for a market.
Parking space may already be limited.
Nearby roads may be congested.
Apartments or schools may be close to the property.
The local government may reject a planning change.
Existing discount stations may reduce the project’s commercial advantage.

Therefore, Korea’s lack of Costco gas stations is not explained by one simple prohibition.

It is the result of several legal, physical, and economic conditions failing to align at the same site.

FAQ

Does Costco Korea have gas stations?

As of July 2026, Costco Korea does not advertise a Costco-operated gas station at its Korean warehouses. Costco gas stations are available in several other markets, but services vary by country and location.

Is Costco legally prohibited from selling gasoline in Korea?

No general national law specifically bans Costco from selling gasoline. Costco would need to establish a petroleum retail operation and satisfy land-use, registration, building, road, environmental, and dangerous-material safety requirements.

Why was the proposed Gimhae Costco gas station rejected?

The property was designated as an urban planning facility for a market, and a gas station was not an allowed use within that designation. Costco proposed changing part of the plan, but Gimhae City decided not to accept the proposal after its planning review.

Did local gas station owners oppose Costco?

The 2023 Gimhae proposal faced opposition from some nearby residents, school-related groups, and fuel retailers. Concerns included congestion, residential proximity, school-route safety, environmental effects, and competition. These objections formed part of the public debate, but the formal planning issue was also important.

Why can Costco operate gas stations in Japan but not Korea?

Costco evaluates each property and national market separately. A Japanese site may have suitable land use, traffic access, fuel supply, space, and local approval. That does not mean Japan has no regulations or that Korea imposes a nationwide Costco ban.

What is an Altteul gas station?

An Altteul gas station is a budget-oriented Korean fuel station participating in a program intended to increase competition and improve the petroleum distribution market. The Korean term is 알뜰주유소.

What is Opinet?

Opinet is Korea National Oil Corporation’s official fuel-price information service. It allows drivers to compare nearby gas stations and search by location, road, or route.

How can I find cheaper gas in Korea?

Check Opinet and compare nearby stations. Search for 알뜰주유소 and 셀프주유소, but also consider distance, opening hours, traffic, and the actual price displayed at the station.

Are Korean gas station nozzle colors standardized?

Drivers should not depend on nozzle color alone. Confirm the written fuel label: 휘발유 for gasoline and 경유 for diesel. This is especially important when using a rental car or an unfamiliar self-service station.

Can I use a foreign Costco membership in Korea?

Costco Korea states that members can use their membership at Costco warehouses worldwide. However, local products, payment systems, operating rules, rewards, and services may differ.

Will Costco eventually open a gas station in Korea?

It is possible, but there is no confirmed general timetable. A future project would require a suitable site, permitted land use, regulatory approval, safety compliance, road capacity, and a commercially viable business plan.

Disclaimer

This article provides general information about Costco operations, Korean petroleum retail, urban planning, and fuel-price services. It is not legal, regulatory, environmental, engineering, or investment advice.

Local ordinances, land-use plans, Costco services, fuel prices, and warehouse development plans can change. For a particular project or location, check the latest information from Costco Korea, Korea’s National Law Information Center, the relevant local government, Korea National Oil Corporation, and Opinet.