Distribution Big 3 Compete to Build Gwangju's First Complex Shopping Mall

Starfield Gwangju Development on Eodeungsan Site
Shinsegae to Invest Total of 1.7 Trillion KRW Including Department Store
Earlier Revealed 'The Hyundai Gwangju' Blueprint
Lotte Group Also Reviewing Location and Other Factors

[Asia Economy Reporter Lim Chun-han] The "Big 3" in distribution?Lotte, Shinsegae, and Hyundai?are intensifying their competition to build complex shopping malls in Gwangju Metropolitan City. Following Hyundai Department Store Group's unveiling of the blueprint for "The Hyundai Gwangju," Shinsegae Group announced plans to simultaneously develop an expansion of its department store along with "Starfield Gwangju." Lotte Group is also expressing its intention to participate in the complex shopping mall business.

According to Shinsegae Group on the 18th, Shinsegae is pushing forward with the construction of the Honam region's first Starfield on the site of Eodeungsan in Gwangju, while significantly expanding the existing Gwangju Shinsegae (department store). The total investment is expected to reach 1.7 trillion KRW, with 800 billion KRW allocated to Starfield Gwangju and 900 billion KRW to the department store. Shinsegae Property plans to develop a stay-type complex shopping mall where shopping, culture, leisure, entertainment, and relaxation can be experienced simultaneously. Starfield Gwangju will house more than 300 diverse brands, an urban water park, and experiential sports facilities. The reason for selecting the Eodeungsan tourist complex site on the outskirts of Gwangju is that it offers ample space to create various experiential facilities. Lim Young-rok, CEO of Shinsegae Property, said, "Since we are using a large site on the outskirts of the city, it is freer from traffic congestion and parking difficulties," adding, "We plan to directly and indirectly employ about 30,000 people through a local corporation, and contribute to revitalizing the regional economy through win-win projects such as supporting small and medium-sized enterprise brands and traditional markets."

Gwangju Shinsegae will be expanded into the "Gwangju Shinsegae Art & Culture Park," transforming into a future-oriented premium department store that combines the strengths of major stores nationwide, including Gangnam, Centum City, and Daejeon Shinsegae. The total sales area will be 132,230㎡ (40,000 pyeong), making it the second-largest department store in Korea after Busan Centum City. It will be the first in the Gwangju and Honam region to house Erusha (Herm?s, Louis Vuitton, Chanel), and plans to increase the number of brands from about 530 to 1,000, including Louis Vuitton, Bottega Veneta, Saint Laurent, and Moncler. Cultural and artistic content such as galleries and large bookstores will be placed throughout the store, and healing spaces will be provided, including a rooftop restaurant, pet park in the Bitgoeul rooftop garden, a giant natural light void, and an indoor waterfall.

Hyundai Department Store Group is negotiating with Humans Holdings’ 1st PFV to open the future-oriented cultural complex mall, The Hyundai Gwangju, on approximately 310,000㎡ (about 90,000 pyeong) of the former Jeonnam Textile and Ilsin Textile factory site in Buk-gu, Gwangju. Hyundai Department Store Group plans to upgrade the DNA of The Hyundai Seoul, which presented the future direction of offline distribution, and additionally introduce various cultural experience content spaces into The Hyundai Gwangju. The store will be composed mainly of luxury brands that do not overlap with existing commercial districts, and plans to establish a foundation for mutual growth through support for traditional markets and small merchants. The opening of The Hyundai Gwangju is expected to invigorate the local economy with an employment creation effect of about 22,000 people.

Lotte Group is reviewing various conditions, including locations for complex shopping malls. Currently, Lotte operates Lotte Department Store Gwangju Branch, Lotte Outlet Suwan Branch, and World Cup Branch. A Lotte Department Store official said, "So far, we have offered differentiated products and services to customers at each store in Gwangju," adding, "We plan to review and promote the optimal location that meets the demands and needs of customers for a large-scale complex shopping mall that local residents desire."