Hyundai, Shinsegae race to build 1st integrated shopping mall in Gwangju

The Hyundai Seoul in Yeouido / Courtesy of Hyundai Department Store

By Kim Jae-heun

Hyundai Department Store and Shinsegae Group are vying to build the first integrated shopping mall in Gwangju as they seek to target consumers in the southwestern part of the country, according to company officials, Thursday.

Shortly after Hyundai revealed its blueprint to open its first shopping mall in Gwangju, Shinsegae announced a plan to create the integrated shopping complex that combines a shopping center and hotel in the same building.

Gwangju, located some 270 kilometers south of Seoul, is home to 1.5 million people. However, the city lacks cultural and retail infrastructure compared to other metropolises like Daegu, Incheon and Busan.

President Yoon Suk-yeol promised to ease the government's regulations on establishing shopping malls in the city to stimulate economic vitality and create jobs.

“We plan to build a future-oriented urban cultural complex like The Hyundai Seoul that represents Gwangju as a landmark. As soon as our real estate development consultation is completed, the project will begin,” a Hyundai Department Store official said.

Hyundai is currently in talks with Humans Holdings, a real estate development firm, to erect a mall on a 310,000-square-meter piece of land in Gwangju's Buk District.

An illustration of Shinsegae Department Store's proposed mall in Gwangju / Courtesy of Shinsegae Group

Shinsegae also plans to open an integrated shopping mall in the same district, possibly right next to the Hyundai mall.

“We will combine the group's capabilities to push for the construction of a shopping mall complex in Gwangju. It will contain a wide variety of entertainment facilities and accommodations where people can come to shop, dine out and lodge,” a Shinsegae Group official said.

The retail giant attempted to build a hotel and shopping mall complex in the city in 2015, but the plan was scrapped due to opposition from small merchants and civic group.

Lotte Group also said it is reviewing the opening of a shopping complex in the southwestern city.

“We have the will to join the mega shopping mall business in Gwangju. We are currently looking for a suitable location in the city,” a Lotte Group official said.