Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Shinsegae to run 'Starfield' COEX
By Park Jae-hyuk
COEX Mall will be rebranded as Starfield COEX Mall once Shinsegae Group becomes its sole operator, the Korean retail group said Friday.
Shinsegae Group said Friday it finalized a contract with the Korea International Trade Association (KITA) to become the sole operator of COEX Mall and CALT Mall in Samseong-dong, southeastern Seoul.
The name change will see the shopping complex become the second to take on the name Starfield, following Starfield Hanam in Gyeonggi Province, southeast of Seoul.
Because it has become the largest operator of major shopping malls located in southeastern Seoul, the so-called “Gangnam Belt,” Shinsegae will expand its shopping malls nationwide, as the group’s new growth engine.
Shinsegae expects to collect 60 billion won ($52 million) for the mall’s yearly rent income, estimating the two malls will earn 66 billion won in rent from retail tenants this year. The group says the operation will be stabilized soon.
The master lease agreement allows Shinsegae to operate 327 stores in the 59,103-square-meter space for 10 years and enables it to renew the contract for another 10 years.
COEX Aquarium, Megabox cinema, Daemyung Wedding Hall and Top Cloud 52 were excluded from the agreement.
Shinsegae plans to set up an open library for citizens at the Central Plaza and make COEX the core of the global retail industry, by the time construction of the underground space of Yeongdong Street, Hyundai Global Business Center and the new Jamsil Sports Complex is done.
The Seoul-based company will also hold various marketing events ahead of the grand opening next year, hosting various shops and transferring COEX membership points to Shinsegae membership points for its 20 million members.
“We plan to take over operations of the mall by the middle of November,” Shinsegae Property Vice President Lim Young-lock said. “First we will take over contracts of the renters who have their shops in the malls, and will support them in revitalizing Starfield COEX Mall.”
He also said the company will work to make the new COEX Mall the best shopping complex with Shinsegae Group’s retail knowhow and Shinsegae Property’s real estate management.