Hollys' first overseas outlet in Osaka, Japan, is seen in this undated file photo provided by Hollys. Yonhap

Hollys, the coffee business unit of Korea's KG Group, said Tuesday it will open its first overseas outlet in Japan next month as part of its expansion strategy.

Hollys has set up a business entity in the neighboring country to open the outlet at the Marui Department Store in Namba, Osaka.

Hollys has partnered with local bakery brand Gouter d' Anatole to provide coffee and bread starting May 1, the company said in a statement.

The company said it plans to open more stores in other major Japanese cities and in other countries as well.

Hollys began its operations in Korea in 1998 and currently has 530 outlets across the nation.

KG Group's businesses range from chemicals, steel-making and car manufacturing, to logistics services. It has KG Mobility, formerly SsangYong Motor, under its wing. (Yonhap)