2028 to Bring Battle for "Regional Markets"... Big Three Retailers Plan Trillion-Won Expansion

Hyundai Department Store to Invest 2.731 Trillion Won in Busan, Gwangju, and Gyeongsan
Department Stores and Mixed-Use Malls Vie for Market Share in Gwangju and Incheon

South Korea's retailers are gearing up for a race to open large-scale stores. Lotte Shopping's Time Villas, Hyundai Department Store's The Hyundai, and Shinsegae Group's department stores and Starfield malls are expanding their networks into new towns in the Seoul metropolitan area and regional hubs. With major stores set to open from 2028 onward, head-to-head battles for dominance in local retail markets are expected in places such as Gwangju and Incheon. The strategy is to differentiate these large stores from online shopping by combining shopping with culture and leisure, while attracting consumers from across wider regions.

According to the retail industry on October 28, Lotte, Shinsegae, and Hyundai are pursuing 16 major new store openings, expansions, and mixed-use development projects. This figure covers their main plans, excluding projects such as contract operations. Of the 16, 13 are targeted to open or be completed between 2028 and 2031. Analysts say the retail landscape in each region could change as large shopping facilities open one after another over the next five years.

The opening of The Hyundai Busan and the completion of Starfield Cheongna next year will mark the start. In 2028, Shinsegae Gwangju's new annex is set to open and Starfield Changwon is scheduled for completion. The Hyundai Gwangju is slated to follow in 2029, with major projects in Hwaseong, Sangam, Suseo, and Dong Seoul to follow in 2030 and 2031.

A bird’s-eye view rendering of The Hyundai Gwangju complex. Courtesy of Hyundai Department Store.

Trillion-Won Investments Pour into Gwangju

Gwangju Metropolitan City is a clear focal point of the investment race. In Gwangju, department stores and mixed-use shopping malls are competing for the same regional retail market. Hyundai Department Store will invest KRW 1.4547 trillion in The Hyundai Gwangju. Its total investment in three new stores, including The Hyundai Busan at KRW 918.3 billion and Hyundai Premium Outlet Gyeongsan at KRW 358 billion, amounts to KRW 2.731 trillion. Of that total, 53.3% is concentrated in Gwangju. The company plans to expand the model introduced at The Hyundai Seoul to regional hubs and capture consumer demand in Gwangju and South Jeolla Province.

Shinsegae is pursuing both the expansion of its existing department store and the development of a mixed-use shopping mall. The Great Gwangju, a project to redevelop the Gwangcheon bus terminal site at a cost of about KRW 3 trillion, aims to open a new department store annex in late 2028 and complete the entire project in 2033. At the Eodeungsan Tourist Complex in Gwangsan District, the company is pursuing Grand Starfield Gwangju, a project with a budget of KRW 1.3403 trillion. The strategy is to strengthen the existing department store's dominance in the retail market while attracting additional demand for shopping and leisure.

Grand Starfield Gwangju will combine shopping with recreation and leisure on a site of about 126,000 pyeong. Shinsegae Property plans to develop it as a destination where visitors can stay for "two nights and three days." The aim is to attract spending on lodging and tourism from outside visitors as well as local residents. The company is preparing to submit a revised tourist complex development plan and is targeting the first phase of completion in 2030.

Songdo and Cheongna: Battle for the Western Seoul Metropolitan Area

In Incheon, competition is centered on Songdo and Cheongna. Lotte's Time Villas and a Shinsegae department store are planned for Songdo, while Starfield is being developed in Cheongna. Shinsegae Songdo is targeted to open in 2031. As more large-scale facilities are built in neighboring areas, the companies will compete for customers from across Incheon and the western part of the Seoul metropolitan area, not just from each new town.

Starfield Cheongna will combine a multistadium with a shopping mall, hotel, and other facilities. It will host not only baseball games but also performances and exhibitions, and will be developed to let visitors enjoy sports and entertainment at its hotel, infinity pool, and food and beverage venues. As of October, construction was 56% complete. The approach is to attract more visitors by giving them reasons to come beyond shopping.

The companies also differ in their strategies for expanding their store networks. Lotte is pursuing Time Villas projects in places including Suseong, Songdo, Sangam, and Jeonju. It is targeting new retail markets with mixed-use malls that combine the strengths of department stores, outlets, and shopping malls. Hyundai Department Store is responding to regional demand by opening The Hyundai locations in Busan and Gwangju and a premium outlet in Gyeongsan.

Shinsegae Property is pursuing large-scale mixed-use developments centered on shopping facilities. Starbay City in Hwaseong will be developed on a site of about 1.27 million pyeong, with a Paramount theme park, Starfield, hotels, resorts, and other facilities; its first phase is targeted to open in 2030. The Dong Seoul Bus Terminal project will combine a terminal, offices, Starfield, and other facilities, and is scheduled for completion in 2031.

With a large number of facilities set to open, competition to attract customers is also expected to intensify after their launch. A retail industry official said, "Since consumers can compare products and prices online, offline stores need to offer distinctive features that give people a reason to visit in person." The official added, "The ability to keep customers on site longer and encourage them to return more often will determine competitiveness."

This content was produced with the assistance of AI translation services.