Shinsegae Department Store is acquiring rival Lotte Department Store's Centum City branch in Busan, seeking to consolidate its dominance in the city's retail market and transform the district into a major shopping, tourism and entertainment destination.
The retailer plans to integrate the Lotte property with its existing Shinsegae Centum City complex to create a sprawling commercial hub dubbed "Shinsegae Town."
Opened in 2009, Shinsegae Centum City has become one of Korea's most successful department stores. It was the first regional department store to surpass 1 trillion won in annual sales in 2016 and has generated more than 2 trillion won annually for three consecutive years since 2023.
The acquisition will expand Shinsegae's footprint in the district, where it opened Centum City Mall in 2016, while allowing Lotte to streamline its operations and concentrate resources on major branches, including Jamsil, Main and Busan Main, as well as new shopping mall developments.
Shinsegae plans to renovate the acquired property and connect it with its existing retail facilities, combining shopping, dining, culture and entertainment under a single destination.
The company also plans to develop a nearby site known as the C site into a mixed-use complex featuring a luxury hotel, premium offices and high-end residences.
Together, the projects are intended to attract local shoppers, international tourists and business travelers while strengthening Shinsegae's position in Busan's retail market.
"This transaction creates an environment in which both companies can pursue growth beyond direct competition," Shinsegae CEO Park Joo-hyung said. "We will develop Shinsegae Town into a global landmark representing Korea."
jyoungseon8@heraldcorp.com
