"Shinsegae Universe in Full Swing" Shinsegae Group to Invest 20 Trillion Won Over 5 Years

Department Stores, Emart, Starfield, etc. Offline Business Investment of 11 Trillion Won
3 Trillion Won for Expanding Logistics Competitiveness and System Investment for 'Digital Transformation'
2 Trillion Won for Discovering New Growth Engines for Sustainable Growth in Healthcare and Content Businesses

[Asia Economy Reporter Yuri Kim] Shinsegae Group will invest approximately 20 trillion KRW over the next five years to build the 'Shinsegae Universe' through a digital transformation and ensure the group's sustainable growth.

On the 26th, Shinsegae Group announced that it will focus its investments on four main themes for the group's future growth: expanding offline retail business, expanding online business, asset development, and new business ventures.

To expand offline business, 11 trillion KRW will be invested. Shinsegae Department Store plans to invest 3.9 trillion KRW to open new stores and enhance the competitiveness of existing stores, while E-Mart plans to invest 1 trillion KRW in opening new Traders stores and renovating existing stores. Shinsegae Property will invest 2.2 trillion KRW to open new stores including Starfield Suwon, which is currently under construction, as well as Starfield Changwon and Starfield Cheongna.

Additional investments will also be made to expand online business. Following large-scale investments last year in acquiring eBay Korea (now Gmarket Global) and W Concept, Shinsegae Group plans to focus on further investments to strengthen its leadership in the online business sector. The group will concentrate investments on expanding logistics centers and developing systems to secure logistics competitiveness, as well as on new business development and expanding production facilities. A total of 3 trillion KRW will be invested in this area.

Asset development will be led by Shinsegae Property. The company plans to invest 4 trillion KRW over the next five years, focusing on the Hwaseong theme park project and mixed-use development projects currently underway. Shinsegae Group expects the Hwaseong theme park development to generate approximately 70 trillion KRW in production and added value effects. It is also anticipated to create about 110,000 direct and indirect jobs, contributing to the local economy.

In addition, Shinsegae Group plans to invest 2 trillion KRW in discovering new businesses that will drive the group's sustainable growth, such as healthcare and content businesses, thereby expanding the group's capabilities.

Shinsegae Group expects significant employment creation effects, as the retail industry has a higher employment inducement effect compared to other industries. The group stated, "The next five years will be a very critical period to solidify the foundation for Shinsegae Group's growth and lay stepping stones for future growth. We will strengthen the group's core competencies through large-scale investments to achieve an unbeatable super-gap in the new competitive environment."