Will the Era of Gwangju Complex Shopping Malls Begin... Retail Industry Optimism at Its Peak

No Complex Shopping Malls 'Optimal Location'
Supported by Shopping Demand and Purchasing Power
Strong Opposition from Merchants and Civic Groups

President-elect Yoon Seok-yeol is expressing his gratitude to supporters in front of the People Power Party headquarters in Yeouido, Seoul, on the 10th. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Lim Chun-han] The retail industry is showing growing interest in whether President-elect Yoon Seok-yeol will fulfill his campaign promise to attract a complex shopping mall to Gwangju. Although several attempts have been made to build complex shopping malls in Gwangju, they have been thwarted by distribution regulations and opposition from small business owners and civic groups.

A retail industry official said in a phone interview with Asia Economy on the 10th, "There are currently no complex shopping malls in Gwangju, so the business feasibility is sufficient. We want to build one anywhere, but distribution regulations and opposition from small business owners are preventing it," adding, "If policy issues are resolved, it is definitely a matter worth pursuing."

Currently, Gwangju is emerging as an optimal location for constructing complex shopping malls. In fact, there are no complex shopping malls such as Starfield or Lotte Mall, nor are there Costco or IKEA stores in the region. The Gwangju General Terminal and Gwangju Songjeong Station areas are considered prime locations. Considering the surrounding commercial districts and foot traffic, development into a complex shopping mall is deemed fully feasible. Other sites mentioned include the Eodeungsan Tourist Complex site in Gwangsan-gu, the former Jeonnam Textile and Ilsin Textile factory sites in Buk-gu, and the Gwangju Airport site.

From the retail industry's perspective, Gwangju is an attractive commercial district supported by shopping demand and purchasing power. Last year, Shinsegae Department Store Gwangju branch recorded sales of 765.2 billion won, a 15.4% increase from the previous year, ranking 12th among all department stores. When Lotte Mart converted its Gwangju Sangmu branch into a warehouse discount store called Max in January, sales tripled and customer numbers increased more than fourfold within a month of opening.

Exterior view of Shinsegae Department Store Gwangju Branch.

However, opposition from small business owners and civic groups remains a challenge to overcome. Currently, Gwangju merchants and civic organizations are urging the halt of efforts to attract a complex shopping mall to Gwangju. On the 25th of last month, they held a press conference at Yangdong Market in Gwangju, stating, "With social polarization worsening due to COVID-19, if the local economic virtuous cycle is broken by the entry of a complex shopping mall, local self-employed and small business owners will be forced to seek jobs elsewhere," and criticized, "Stop the shallow political tactics and aggressive campaign to attract complex shopping malls and present a proper regional development pledge."

Previously, in May 2015, Shinsegae signed a Memorandum of Understanding (MOU) with Gwangju City and began constructing a luxury hotel and complex facilities. However, nearby small business owners opposed the project, and Gwangju City withdrew the district unit plan, citing that the sales facility scale was too large. In February 2017, Shinsegae reduced the total complex facility area by about 40%, applied for a district unit plan change, and attempted to proceed again, but this also failed. Shinsegae explained that the project would generate 1.3 trillion won in production effects, 600 billion won in added value effects, and create approximately 9,000 direct and indirect jobs, but ultimately could not overcome local opposition. In 2010, E-Mart attempted to open an additional store in Maegok-dong, Buk-gu, Gwangju, but failed, and in 2019, it tried to open its private brand (PB) No Brand store at Namgwangju Market in Dong-gu, Gwangju, but abandoned the plan due to merchants' opposition.

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