Shinsegae to Build Its 5th Premium Outlet in Gyeongsan

Created in Gyeongsan Knowledge Industry District
"Will make it the top landmark visited by millions every year"

'Siheung Premium Outlet,' the fourth store of Shinsegae Simon, which opened in 2017

[Asia Economy Reporter Minyoung Cha] Shinsegae Group has selected Gyeongsan, Gyeongsangbuk-do, a location with diverse transportation infrastructure and abundant tourism content, as the site for its fifth suburban premium outlet.

On the 4th, Shinsegae Simon announced that by the end of 2023, it will develop the 'Gyeongsan Premium Outlet' on a site of approximately 53,000 pyeong within the Gyeongsan Knowledge Industry District in Gyeongsan City, Gyeongbuk. An investment of at least KRW 120 billion is planned. Cho Changhyun, CEO of Shinsegae Simon, stated, "We will make Gyeongsan Premium Outlet the best landmark in the Daegu-Gyeongbuk region, attracting millions of visitors annually."

An investment agreement will also be signed with Gyeongsangbuk-do and Gyeongsan City. The signing ceremony, scheduled for 2 p.m. that day, will be attended by Lee Cheol-woo, Governor of Gyeongbuk, Choi Young-jo, Mayor of Gyeongsan, Choi Sam-ryong, Head of Daegu-Gyeongbuk Free Economic Zone Authority, Kim Sang-yeol, CEO of Gyeongsan Knowledge Industry Development, and Cho Changhyun, CEO of Shinsegae Simon.

The reason for selecting Gyeongsan, Gyeongbuk as the fifth outlet location is its geographical advantage. It is adjacent to Gyeongsan IC on the Gyeongbu Expressway and Cheongtong Wachon IC on the Iksan-Pohang Expressway, which was a decisive factor. It also takes about an hour from the soon-to-be-relocated Daegu-Gyeongbuk Integrated New Airport, enhancing external accessibility. The experiential tourism content of Gyeongsangbuk-do and the potential to link with Gyeongsan’s tourist resources such as Palgongsan Gatbawi and Bangokji also had a positive effect.

The Gyeongsan Premium Outlet is also expected to create jobs and contribute to regional economic development. Previously, the four Shinsegae Premium Outlets in Yeoju, Paju, Busan, and Siheung established funds for regional coexistence and created 'promotion centers' for local publicity. Some stores recently donated funds to help overcome flood damage caused by the summer monsoon.

As the luxury market rapidly grows, the related consumer market of outlets has also become vibrant. Shinsegae Simon’s operating profit in 2019 was KRW 76.5 billion, a 21% increase from KRW 63.2 billion the previous year. Net profit also jumped 30% to KRW 50.7 billion. The asset size grew by about KRW 90 billion over one year to KRW 966.1 billion at the end of last year.

Shinsegae Simon is a company jointly established by Shinsegae Group and Simon Property Group, the largest real estate development company in the U.S. operating over 100 premium outlets worldwide. Shinsegae and Shinsegae International each hold 25% of the shares, while Simon Korea owns 50%.

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