Aftermath of Masan Lotte Department Store Closure ... Changwon City Council Holds Emergency Countermeasure Meeting

The Changwon Special City Council in Gyeongnam held an emergency meeting on the 28th to assess the situation and prepare countermeasures regarding the upcoming closure of the Lotte Department Store Masan branch at the end of June.

The meeting, presided over by Chairperson Kim Igeun, was attended by 15 Changwon city council members, officials from the Changwon City Economic and Job Bureau, representatives from Lotte Department Store, and KB Asset Management, the owner of the Masan branch building.

Lee Igeun, chairman of Changwon City Council in Gyeongnam, is presiding over a meeting on countermeasures related to the closure of Lotte Department Store Masan Branch.
[Photo by Changwon Special City Council]

The council members listened to explanations about the sudden closure process and the direction of the property sale, pointing out the concerns of tenant businesses and employees.

They especially emphasized the difficulty in responding due to the short period between the closure notice and the actual closure date.

Single-owner vendors and restaurant operators stated that it is impossible to wrap up operations within this period, demanding answers regarding an extension of the vacating period and compensation support.

In response, the department store representatives said they are well aware of the on-site situation and will discuss extending the vacating period and providing compensation as much as possible.

Chairperson Kim expressed concern that the closure of the Lotte Department Store Masan branch could have a domino effect, negatively impacting not only the tenant businesses but also nearby commercial areas such as the fish market, Burim Market, Odong-dong, and Chang-dong. He urged that the vacating period and related compensation be ensured smoothly after the closure.

He explained, "We organized this meeting to clearly understand the situation regarding the department store closure, deliver the voices from the field to the relevant parties as representatives of the citizens, and hear about the countermeasures."

He added, "The council will also actively support and closely monitor the preparation of support measures and necessary institutional cooperation."

Lotte Department Store Masan branch, which was renovated after acquiring the former Daewoo Department Store in 2015, has been suffering from sluggish sales, recording about 74 billion won in revenue last year.

The Lotte Shopping Department Store Division decided to end operations at the Masan branch, which has the lowest sales performance among its stores nationwide, at the end of June this year.