Lotte agrees to sell Busan Centum City store to Shinsegae, pending review
The proposed sale would add Lotte’s outlet to Shinsegae’s existing retail complex in Busan. The store will keep operating while South Korea’s competition regulator reviews the deal.
Lotte Shopping has agreed to sell its Centum City department store in Busan, South Korea, to rival Shinsegae, Yonhap reported on October 29, citing Lotte. The transfer awaits a review by South Korea’s Fair Trade Commission, leaving the future of a store beside Shinsegae’s existing Centum City complex tied to the regulator’s decision.
Lotte said the outlet will continue operating until the review is complete. Shinsegae separately said it had submitted documents to the antitrust regulator seeking approval to integrate the two Busan department stores. Neither company gave a completion date for the transfer in Yonhap’s report.
Why Lotte is selling its Busan store
Lotte described the sale as part of its ‘select and focus’ strategy: selling assets and restructuring to respond to changes in the retail market. A company official told Yonhap that Lotte would increase investment in its core department stores nationwide and develop new shopping malls.
Lotte currently runs four department stores in Busan, including the Centum City outlet. Across its markets it operates 61 department stores and 174 discount stores, with some of those outlets in Vietnam and Indonesia, Yonhap reported. The sale therefore concerns one branch of a much larger retail network, while changing the ownership of a site in a district where both companies operate.
Shinsegae’s plans for Centum City
Shinsegae Chief Executive Park Joo-hyung said the company wants to turn its Centum City operation into ‘Shinsegae Town’, linking shopping with culture, tourism and urban spaces. The Korea Herald reported that Shinsegae plans to renovate the acquired Lotte property and connect it to its existing retail facilities, bringing shopping, dining and entertainment into one destination.
Shinsegae already operates 13 department stores in South Korea and has no overseas outlets, according to Yonhap. Its Centum City store opened in 2009 and became the first regional department store to exceed 1 trillion won in annual sales in 2016, The Korea Herald reported. The outlet generated more than 2 trillion won annually for three consecutive years beginning in 2023, according to the Herald.
The Herald also reported Shinsegae’s plan to develop a nearby property known as the C site with a luxury hotel, offices and residences. That proposal is separate from the store transfer. For now, the immediate change for shoppers is limited: Lotte’s outlet remains open while the Fair Trade Commission considers the transaction and proposed integration.
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Sources and context
- Lotte reshuffles biz portfolio with Busan store sale to ShinsegaeYonhap News Agency
- Shinsegae expands Busan foothold with Lotte dealThe Korea Herald
AI-assisted article checked against the listed sources. NewsJaws did not conduct interviews or attend the reported events.