Busan City Denies Extension of Temporary Use Approval
[Asia Economy Reporter Na Ye-eun] Lotte Department Store Busan Gwangbok Branch will temporarily suspend operations starting next month on the 1st. The conflict between Busan City and Lotte Group over the construction of the Busan Lotte Tower has ultimately led to the suspension of business.
On the 31st, Busan City announced that it would not extend the approval period for the Lotte Department Store Busan Gwangbok Branch, Aqua Mall, and Entertainment Building, which had been granted temporary use approval since 2009. As a result, more than 800 stores located in these facilities will close indefinitely. Over 3,000 employees are also at risk of losing their jobs.
Previously, Lotte Shopping had received permission in 2000 to build a 107-story (428m) Lotte Tower, but the plan was completely changed after the construction of residential and lodging facilities such as apartments and officetels was canceled due to regulations. Internally, concerns about profitability were reportedly present.
Subsequently, in 2019, Lotte announced a construction plan for a 57-story (380m) building including an observatory, tourism, and commercial facilities. However, the plan was again stalled after the Busan City Landscape Review Committee decided to reconsider it.
Later, at the end of last year, Lotte submitted a revised construction plan to Busan City for a 56-story (300m) tower-type building including an art museum, observatory, sky lounge, and commercial facilities, and received conditional approval on the 26th. The Busan City Landscape Review Committee requested detailed design improvements and adjustments to connecting sections.
Lotte Shopping stated that it plans to go through the architectural committee review in October, apply for a building permit reflecting design changes in January next year, and complete the construction of the Lotte Tower by the end of 2026.
However, Kim Pil-han, Director of the Busan City Architecture and Housing Bureau, said, "Lotte has not given us confidence regarding their willingness or sincerity to proceed with the Lotte Tower construction project," adding, "Under these circumstances, we cannot extend the temporary use approval period for the department store and other facilities."
Lotte Shopping said, "We plan to reaffirm our sincerity regarding the Lotte Tower construction with Busan City to resolve the temporary use approval issue and will take the lead in promoting economic development and job creation in the Busan area. Additionally, regardless of the refusal to extend the temporary use approval, we plan to submit the building review in the second half of this year for the prompt construction of the Lotte Tower and complete the building permit application in the first half of next year to start full-scale construction, aiming to complete Busan’s landmark in a short time."
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