CEO Park Juhyung's Confidence... Successful Experience with Shinsegae Central City
Terminal Complex Development + Erusha Attraction Mammoth-scale Department Store
As the 'Second Gangnam Branch'... Targeting High Spending Power in the Greater Gwangju Area
Park Juhyung's team is injecting their successful experience in terminal complex development into Gwangju Shinsegae. The plan has been completely revised to utilize the Gwangju Intercity Bus Terminal site instead of the existing E-Mart site for the transformation into the 'Gwangju Shinsegae Art & Culture Park (tentative name).' The vision is to transform Gwangju Shinsegae into a 'complex landmark' similar to Shinsegae Gangnam Store, creating synergy with Central City Terminal, Pami Station, and Garden.
Terminal Complex Development Plants Gangnam Success DNA in Gwangju
According to the department store industry on the 28th, the signing of the Memorandum of Understanding (MOU) for the development of a new landmark department store between Gwangju Shinsegae, Gwangju City, and Kumho Express the day before was driven by the confidence of CEO Park Juhyung, who took the helm of both Shinsegae Central City and Shinsegae Department Store simultaneously in the personnel reshuffle last September. The key point of the MOU, which includes the plan to relocate the Shinsegae Department Store expansion site from the E-Mart site to the U-Square Culture Center, is attributed to CEO Park’s successful experience in complex development at Central City. Park has extensive experience in management planning, support, and administration within Shinsegae Group’s department stores and E-Mart. Especially, having served as CEO of Shinsegae Central City for seven years since late 2016, Park experienced the development process and synergy of the complex space connecting Gangnam Express Bus Terminal area, Pami Station, and Shinsegae Gangnam Store. This gave him confidence in the linked development and synergy between Gwangju Shinsegae and Gwangju Intercity Bus Terminal, leading to this final decision.
Through this MOU, Gwangju Shinsegae plans to collaborate with Gwangju City and Kumho Express, the owner of Gwangju Intercity Bus Terminal, to develop the terminal area into a representative landmark complex facility of Gwangju City, while preparing various win-win measures such as prioritizing local workforce hiring. Immediately after the MOU, Lee Donghoon, CEO of Gwangju Shinsegae, stated, "We will create the largest and highest-level civic space that 1.44 million citizens of Gwangju can take pride in."
Previously, when the development plan for Gwangju Shinsegae was prepared last year, the site primarily considered was not the E-Mart site but the U-Square site. Due to the high floating population, including 4.8 million annual terminal users, this site was evaluated as a better location for commercial facilities. However, at that time, the biggest obstacle was the gap in the desired price between Kumho Express, the landowner, and the developer. Industry insiders believe that recent price negotiations between Gwangju Shinsegae and Kumho Express have moved forward from both sides, creating room for agreement. Gwangju Shinsegae is considering various methods including purchasing the site and additional leasing. When the development plan involved the E-Mart site, investment costs excluding land price were estimated at around 900 billion KRW for buildings and interior works. After revising the development plan, costs are expected to vary depending on the method of land use.
There were also concerns that the U-Square site, included in Gwangju City’s urban plan for terminal complex development, might impose restrictions on the scale or method of development. Although it is still necessary to consider passenger facilities, customer waiting areas, ticket booths, and other ancillary facilities, the plan is to resolve these issues based on strengthened MD strategies through collaboration among affiliates and advantageous brand placement, as experienced in the development of the Gangnam Express Bus Terminal area. Using the E-Mart site would have required a public road between E-Mart and the department store in the business plan, but the new development plan excludes the road and is expected to allow smoother vehicle access, which is seen positively in terms of traffic impact assessments, permits, and coexistence with local residents.
‘EruSha’ Entry + Mammoth Department Store Featuring Art and Culture Announced
Having shifted direction to terminal complex development, Gwangju Shinsegae plans to unveil the future-oriented department store 'Gwangju Shinsegae Art & Culture Park' in the first half of 2028. Although changing the development site inevitably affects the total floor area, the operating area is planned to remain similar to the original plan at about 100,000㎡ (approximately 33,000 pyeong). This size is comparable to the world’s largest Shinsegae Centum City Store.
Reflecting recent consumer trends where customers spend leisure time consuming diverse experiential content beyond shopping, the plan is to combine culture, art, cutting-edge science, and shopping content to upgrade the lives of citizens in Gwangju and the Honam region. Galleries showcasing artworks at a museum level will be featured throughout the store, differentiated by experiential art projects and floor-by-floor art stages. An open large bookstore will also be created, transforming the space into a complex art and cultural venue. Additionally, rooftop restaurants and pet parks will be introduced on the rooftop garden, and a natural atmosphere comparable to a park will be created with a giant natural light void and indoor waterfall.
Moreover, efforts are underway to bring in 'EruSha' (Herm?s, Louis Vuitton, Chanel), known as the three major luxury brands, for the first time in the Gwangju and Honam region. The department store stated, "We are steadily progressing with attracting about 1,000 brands, nearly doubling the current 530 brands at Gwangju Shinsegae."
"A Complex Space Filled with Original Content" Park Juhyung’s Team to Strengthen Both Online and Offline Next Year
CEO Park recently sent an email to all employees emphasizing, "We must produce original content that embodies Shinsegae DNA and provide customers with a special space where they can enjoy value beyond shopping." He stressed the need to develop new business models such as real estate development and retail complexification. This is also reflected in Shinsegae’s main business focus for next year.
Next year, Shinsegae will focus all efforts on 'strengthening core business competitiveness' through major store and category renewals. Gangnam Store, undergoing its first large-scale food hall expansion and renovation in 15 years since 2009, will unveil the largest food hall in Korea, measuring 19,385㎡ (about 6,000 pyeong), in the first half of next year. The men’s luxury segment will also be significantly strengthened. Gyeonggi Store, which has received great customer response through recent genre-wide renovations, will also revamp its men’s section. Plans include expanding original content exclusive to Shinsegae through comprehensive collaborations with entertainment, platforms, characters, and brands next year.
Providing a 'special space' online will also be expanded. The Shinsegae Department Store application, which has introduced various content such as 'Shinbaek Library' and 'Genie Music,' is set to evolve into a 'community platform.' Efforts will also focus on growing the online 'Gift' service. Since officially launching the gift service last year, Shinsegae Department Store aims to capture the small luxury gift demand by expanding brands and product categories and offering differentiated services to increase users.
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