Retail, culture, tourism and entertainment hub in the works

Hotel, office and residential development planned for C-site as landmark push

An exterior view of Shinsegae Department Store's Busan Centum City branch [Shinsegae Department Store]
An exterior view of Shinsegae Department Store's Busan Centum City branch [Shinsegae Department Store]

Shinsegae Department Store will acquire Lotte Department Store's Centum City branch, with plans to develop the surrounding area into a "Shinsegae Town" — a mixed-use lifestyle hub and global landmark combining shopping, culture and tourism.

Shinsegae Co., which operates Shinsegae Department Store, said Thursday it signed an asset transfer agreement with Lotte Department Store to acquire the Lotte Centum City branch. The deal is expected to close after clearing relevant regulatory procedures, including a business combination review by the Korea Fair Trade Commission.

The move is a strategic decision aimed at strengthening Busan's retail competitiveness. Shinsegae Centum City opened in 2009 as a new-concept shopping destination blending leisure and cultural offerings such as a spa land and an ice rink. The world's largest department store by floor area, it became the first regional branch in the country to surpass 1 trillion won in annual sales in 2016 — just seven years after opening. Since 2023, it has posted annual sales exceeding 2 trillion won ($1.5 billion) for three consecutive years, cementing its place among the top-performing stores nationwide.

The acquisition is expected to accelerate plans to build "Shinsegae Town" as a mixed-use lifestyle destination. Shinsegae opened Centum City Mall in 2016 and has continued developing the adjacent C-site, where it is pursuing a large-scale mixed-use project that will include a luxury hotel, prime office space and premium residences.

The company plans to renovate the former Lotte store and integrate it into a next-generation complex combining shopping, culture, leisure, business, accommodation and residential functions. Shinsegae also intends to develop the area into a world-class lifestyle destination capable of drawing global tourists and business visitors.

Park Ju-hyung, chief executive of Shinsegae Co., said the deal carries significant meaning in that "both companies have moved beyond competition to create a business environment where each can develop further." Park added that the company will "develop Shinsegae Centum City into a Shinsegae Town where shopping, culture, tourism and urban spaces are organically integrated, making it a key global landmark representing South Korea."


spa@heraldcorp.com