First in North Gyeongsang... Mayor Lee Kangdeok Actively Pursues Pohang Attraction
Mayor Lee: "Will Secure It to Enhance City Competitiveness"
Pohang City is demonstrating a strong commitment to attracting Costco, continuously engaging with Costco representatives to secure the first Costco store in North Gyeongsang Province.
On the 18th, Mayor Lee Kangdeok of Pohang met with the Vice President of Costco Korea and his team, who visited City Hall, to discuss the conditions and environment for opening a store. During the meeting, Mayor Lee actively highlighted Pohang's strengths and expressed a strong determination to bring Costco to Pohang.
In April, the CEO of Costco and his delegation made an unprecedented visit to Pohang to assess the feasibility of opening a branch there. At that time, Mayor Lee Kangdeok personally explained Pohang's geographical location, economic situation, and the current status of future new industries, emphasizing the city's growth potential and strong will to attract Costco.
Costco has promised to thoroughly review the possibility of entering Pohang, and the recent visit by their working-level staff is seen as a positive evaluation of Pohang as a candidate site.
In May, Mayor Lee Kangdeok stated at a press conference that a warehouse-style hypermarket would greatly benefit citizens by revitalizing the local economy. He also expressed his firm determination to secure the opening of Costco Pohang in connection with the memorial park project, aiming to enhance the city's competitiveness.
Costco is the world's third-largest retailer, operating 871 stores in 14 countries. If a store opens, it is expected to bring significant economic benefits, such as increased visitor inflow and local consumption, as well as improvements in residential conditions and daily convenience.
Notably, each store employs around 300 people, with a large proportion being women in their 40s and 50s. Most positions are full-time, with excellent pay and welfare benefits, making Costco a highly attractive employer for women. This has led many local governments to compete to attract the retailer.
Pohang City is developing an industrial complex covering 10 million pyeong and constructing a world-class international exhibition and convention center. With anticipated population growth and new consumer demand as the city develops, there is a growing need for large-scale retail stores to improve living convenience and residential conditions, as well as increasing public demand for such establishments.
While typical large discount stores sell over 50,000 items, Costco limits its offerings to around 3,800 products, focusing on bulk sales. If Costco opens in the area, it is expected to serve not only ordinary citizens but also small business owners such as cafe and restaurant operators, functioning as a wholesale distribution center for the region.
In the past, Lotte Mart in Duho-dong could not open because it was located within a traditional market district. However, Costco prefers to open stores on the outskirts, covering neighboring cities and counties. If it opens on the outskirts of Pohang, such as near the planned memorial park, concerns about harming small neighborhood businesses are expected to be significantly reduced.
Mayor Lee Kangdeok said, "Although there are still several steps to go through, such as market research, corporate decisions, and building public consensus, we are focusing all administrative efforts on attracting Costco because of its positive impact and high public expectations. We are determined to bring Costco to Pohang, the hub city of the East Coast, to inject new vitality and strengthen the city's competitiveness."
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