[Issue] Demolition Has Begun... How Far Has the Gwangcheon Terminal Complex Project Progressed?

Residential, Hotel, and Performance Hall Plans Finalized...
2.9 Trillion Won Complex Development Project
Gwangju City and Gwangju Shinsegae in Final Negotiations Over Public Contribution Fee
Sixth Preliminary Negotiation Adjustment Council Meeting Ahead Over Appraisal
District Unit Planning and Construction Permits Still to Come
Retail Industry: "Monitoring Changes in Urban Retail Environment"

On the afternoon of the 7th, citizens are passing through a temporary pedestrian passage installed on the road near Gwangcheon Terminal in Gwangju. Photo by Song Bohyun

On the afternoon of January 7, in the area around Gwangju General Bus Terminal in Gwangcheon-dong, Seo-gu, Gwangju, the exterior of the U-Square Culture Center was surrounded by barricades, and the internal passage connecting the terminal and the department store was closed. Citizens followed temporary signs labeled "Way to Department Store," exiting the building and using a temporary pedestrian walkway set up along Mujindaero.

The temporary walkway, constructed with steel structures, stretched a long distance. Passengers pulling suitcases and citizens carrying luggage naturally slowed their pace. The walls of the passageway were lined with barricades printed with "Gwangju Biennale," and signs guiding the way between the department store and the terminal were placed throughout.

Although the terminal's waiting area was as crowded as usual, signs of change were evident in many places. Notices about the dismantling work were posted outside the Culture Center, specifying the construction period as July 1, 2025, to April 30, 2026. Some parts of the exterior had already been demolished.

On the afternoon of the 7th, passengers are waiting for buses in the waiting room inside Gwangju Gwangcheon Terminal (U-Square). Photo by Song Bohyun

The barricades covering the exterior of the temporary walkway were decorated with illustrations instead of plain safety fences. Drawings depicted major spaces and daily life in Gwangju, featuring familiar places such as the former Jeonnam Provincial Government Building, Gwangju Biennale, and Mudeungsan Mountain. Some citizens passing through the walkway paused to look at the artwork.

Citizens interviewed at the site said, "It's inconvenient because we have to take a detour," but also responded, "It's necessary for such old facilities to be updated." However, many also asked, "When will the construction be finished?" and "How much longer will these inconveniences last?"

Complex Development Project Worth 2.9 Trillion Won

Gwangju Gwangcheon Terminal (U-Square) Complex Project Preliminary and Adjusted Plan Layout.

The Gwangcheon Terminal Complex Project aims to redevelop the aging Gwangju General Bus Terminal and the surrounding U-Square area into a large-scale complex space, including the expansion of the department store.

According to the "Gwangju General Bus Terminal Complex Project Development Plan (Draft)" disclosed by Gwangju Shinsegae, the project site covers 101,150 square meters. The area will feature a bus terminal at its core, along with a department store, cultural, commercial, business, hotel, educational, medical, and residential facilities. The buildings will range from seven underground floors to a maximum of 47 above-ground floors, with a total floor area of 814,675 square meters. The total project cost is approximately 2.9 trillion won.

Many issues regarding facility composition, which were contentious during the preliminary negotiations, have now been largely settled. The area for mixed-use residential complexes was agreed to be expanded to up to 567 units, within a 10% increase from the initially proposed 164,238 square meters (516 units) at the time of preliminary negotiation site selection. The hotel will be developed as a five-star or deluxe hotel, considering demand for international events.

A 650-seat performance hall, which was not included in the initial negotiation proposal, has also been newly added. Discussions are also underway to install a two-lane underground direct ramp from the direction of Kia Autoland Gwangju Plant for direct access to Gwangcheon Terminal. The scale and basic framework of the project have already been confirmed.

"Preliminary Negotiations Nearing Completion... Remaining Issue Is Public Contribution Fee"

The Great Gwangju (Shinsegae) Bird's-eye View.

Lee Hanmin, Director of Urban Planning at Gwangju City, stated, "In terms of preliminary negotiations, we are in the final stages," but added, "Even after the preliminary negotiations, there are still steps such as establishing the district unit plan and obtaining construction permits, so it is not at the stage where construction can begin immediately."

The main remaining issue is the scale of the public contribution fee. Director Lee explained, "Shinsegae has proposed a public contribution fee of 82.8 billion won, calculated based on the scale of the project they proposed," adding, "The value of the building varies depending on the size of each facility type, such as the performance hall and hotel, and the appraisal amount is determined accordingly."

Regarding the calculation structure for the public contribution, he said, "The land price before development is the same in the appraisal, but the post-development price varies depending on the project scale. The public contribution fee is determined through negotiations within a range of 40% to 60% of the difference between the pre- and post-development prices." He added, "Currently, negotiations are underway based on the amount derived from the appraisal."

The Preliminary Negotiation Adjustment Council has held five meetings so far, with a sixth meeting scheduled. Director Lee noted, "It is possible that the issue will be finalized at this meeting," but also said, "Since discussions are ongoing, it is difficult to specify an exact timeline." Although the original goal was to finalize the matter by the end of last year, "adjustments took time due to differences between the amounts expected by Gwangju City and Shinsegae," he added. However, he emphasized, "This is not an issue that will drag on for a long time."

Shinsegae: "Demolition Unrelated to Negotiations"... Proceeding as Scheduled

Notice board for the dismantling work of the existing facilities at Gwangcheon Terminal installed in the Gwangcheon-dong area of Seo-gu, Gwangju. Photo by Song Bohyun

Gwangju Shinsegae refrained from commenting on the calculation of the public contribution fee but clarified that the demolition schedule is unrelated to the negotiations. A Gwangju Shinsegae representative stated, "Most matters related to the Gwangcheon Terminal Complex Project are being handled confidentially, so it is difficult to disclose specifics," and added, "It is our understanding that discussions on the public contribution fee are taking longer than expected."

The representative said, "The demolition of the U-Square Culture Center and parking lot is proceeding independently of the public contribution negotiations," and "We plan to complete the final demolition by the end of April this year."

Complex Shopping Mall Commercial Area Impact Assessment: "Significant Economic Effect, but Industry-Specific Response Needed"

Gwangju City disclosed the economic and commercial impacts of three facilities?The Hyundai Gwangju, The Great Gwangju (Shinsegae), and Grand Starfield Gwangju?at the final presentation of the "Complex Shopping Mall Commercial Area Impact Assessment Research Project" held in the city hall's medium conference room on December 15 last year. Photo by Song Bohyun

An impact assessment study on three complex shopping malls being developed in Gwangju found that, during the construction phase, the total economic effect would reach 16.4412 trillion won, with 57,123 jobs created. In the operational phase, the study projected 5.7238 trillion won in production inducement, 2.51 trillion won in added value, and 46,933 jobs created.

The results showed differences in sales changes by facility and industry. Stay-type businesses such as restaurants, coffee shops, and bakeries generally saw increases, while some categories experienced declines.

For The Great Gwangju (Shinsegae), supermarket, restaurant, and apparel sectors increased, but cosmetics and some daily goods sectors decreased. The research team suggested that while the launch of large-scale complex shopping malls has a positive ripple effect on the regional economy overall, the impact varies by industry, so tailored responses for each commercial area are necessary.

Gwangju City proposed follow-up measures such as issuing local commercial area points, establishing win-win complex facilities, expanding special guarantees, and linking large-scale stores with small business programs. The city plans to further develop these response strategies by gathering feedback from local businesses and operating a win-win development council.

Industry insiders say the Gwangcheon Terminal Complex Project is being closely watched as it coincides with changes in Gwangju's urban retail environment. One industry official said, "Gwangcheon Terminal serves not only Gwangju but also a significant number of customers from Jeonnam. Considering the recent discussions on administrative integration between Gwangju and Jeonnam, it is worth monitoring how consumption and mobility patterns will change." The official added, "Since the impact of large complex facilities on local commercial areas varies by industry, the changes that occur during actual operation will be especially important."