Starbucks Coffee Korea said its annual sales topped the 1 trillion won (US$884.17 million) mark for the first time ever last year.
The local franchise of the US coffee giant, which is operated by retail conglomerate Shinsegae, debuted in South Korea in 1999.
Annual sales rose 29.6 per cent from the 773.9 billion won of 2015.
Operating profit also increased 81.2 per cent year-on-year to 85.4 billion won in 2016.
As at the end of February, Starbucks operated 1008 shops across the country.
Industry observers said Starbucks’ record is astonishing as annual sales of other players such as Twosome Place and Angel-in-us Coffee are averaging between 100 and 200 billion won.
“Starbucks gained popularity among women in their 20s and 30s who are attuned to the latest consumer culture of the United States,” an analyst said, adding that Starbucks has constantly launched new menus.
Starbucks acquired tea retailer Teavana in 2012 and has since rolled out various tea menus along with bakery products.