Lotte Department Store Returns Yeongdeungpo Branch Operating Rights... "Renewal After Re-bidding"

Will Rebid and Pursue Renewal When Business Operator Is Re-Recruited
"Will Secure Stable Operating Rights for Over 10 Years"

Lotte Department Store announced on June 27 that it has applied for the cancellation of its operating rights for the Yeongdeungpo branch. The company plans to participate in the re-bidding process when the business is reopened for proposals and to begin a renewal of the Yeongdeungpo branch.

Lotte Department Store secured operating rights for the Yeongdeungpo branch for 2025 to 2029 through a renewed contract after the previous contract expired in 2020 to 2024. However, the company stated that investments were not made due to the burden of the short five-year contract period. A representative from Lotte Department Store explained, "We plan to secure stable operating rights for at least 10 years through re-bidding in the future and then begin the renewal process."

Opened in 1991, Lotte Department Store Yeongdeungpo branch is the first privately funded station department store in Korea, having received occupancy approval from the government in 1988. The Yeongdeungpo branch was the third store opened by Lotte Department Store after the main branch and the Jamsil branch, and is recognized as a major retail facility representing the western Seoul commercial district and a successful case of a privately funded station department store.

Lotte Department Store plans to participate in the bidding once a new business operator recruitment notice is announced. If selected as the new operator, the company will be subject to revised laws, securing an operating period of at least 10 years. After securing stable operating rights, Lotte Department Store plans to target the western Seoul market with differentiated merchandise planning (MD).

Currently, Lotte Department Store is renewing its key branches, including the main branch, Jamsil branch, Incheon branch, and Nowon branch. In particular, the company aims to establish the main branch and Jamsil branch as Korea's leading stores by developing them into "Lotte Town." In addition, Lotte Department Store plans to continue investing in the shopping mall business through the "Time Villas" shopping mall brand, which was newly introduced last year.