Luxury outlet tries its luck in Korean market

Yeoju Premium Outlets will attract many foreign tourists, the company hopes.

YEOJU ― Gyeonggi Province The high-end outlet mall opening in Yeoju today is the first of several in Korea, Leslie Chao said yesterday at Yeoju Premium Outlets. Two to three similar malls will open in the near future, he said.
The outlet in Yeoju, Gyeonggi, is a joint development by Shinsegae, Korea’s largest retailer, and the U.S.-based Chelsea Property Group. The companies have each invested around 50 billion won ($54 million) in establishing Shinsegae-Chelsea, which will develop and operate the facility.
Chao, current chief executive of Chelsea Property Group, said the taste of Korean consumers has developed, and for that reason, Premium Outlets have “great potential.” Premium Outlets is a registered trademark and houses higher-end shops.
“We expect revenues of 150 billion to 200 billion won from 3 million visitors annually,” said Kim Yong-ju, chief executive of Shinsegae-Chelsea.
Shinsegae-Chelsea will collect rent from brand-name tenants. Although Shinsegae is known as a retail firm, it acts mainly as a landlord at the Yeoju facility.
The stores will attract visitors from as far away as China and Southeast Asia, the company said.

By Hwang Young-jin Staff Writer [yhwang@joongang.co.kr]