Shinsegae to invest 1.9 tril. won to expand market presence

Shinsegae Group, South Korea's second-largest retail conglomerate, plans to invest 1.9 trillion won ($1.63 billion) and hire 8,000 new workers to expand its market presence, a corporate source said Monday.

The money will be used to increase the size and number of department stores, discount outlets, and integrated shopping mall complexes in both the domestic and overseas markets, the source who wanted to remain anonymous said.

The group, which operates such companies as Shinsegae Department Stores and E-Mart large discount outlets, will move to build a new premium outlet in the new year to augment those already in operation, he added.

The remarks come after Chung Yong-jin, the retail giant's vice chairman, said in his New Year's message that Shinsegae must strive for growth through investment despite difficult times.

Chung stressed the group must become the leader in the online retail business and shopping mall complex operations.

Shinsegae's main rival and the country's No. 1 retail conglomerate Lotte Group, meanwhile, said that it plans to invest 6.7 trillion won this year, or a gain of 50 percent from 2011, to strengthen its overall business operations, and hire 13,500 new employees. (Yonhap)