Shinsegae breaks ground on Daegu hub project

Chung Yong-jin, vice chairman of Shinsegae Group, fifth from right, and Mayor Kim Bum-il of Daegu Metropolitan City, sixth from right, attend a groundbreaking ceremony yesterday for a multipurpose transportation center to be built in Dong District. Provided by the company

More than three years after Shinsegae Group was selected to build a multipurpose transportation hub in Dong District, Daegu, the retailer yesterday held a groundbreaking ceremony attended by Vice Chairman Chung Yong-jin and Daegu Mayor Kim Bum-il.

Construction of the transportation center will be completed in the second half of 2016.

In August 2010, Shinsegae Group was picked by the Daegu Metropolitan Government to build a large-scale transportation center with retail facilities. The new center will be served by the high-speed KTX, express and intercity buses, and a subway. It will also include a department store, family theme park and movie theatre.

The center will have nine stories and seven underground levels. It will cover an area of 36,360 square meters (9 acres). The total floor area will be around 296,841 square meters.

“The multipurpose transportation center is the country’s first private development project,” said Chung at the groundbreaking ceremony. “We will do our best to create the area as a landmark that boosts the domestic tourism industry.”

When completed, according to the retailer, the 800 billion won ($744.3 million) project is expected to directly and indirectly generate more than 18,000 jobs. Total sales at all department stores in Daegu were 1.6 trillion won last year, and Shinsegae says the sales volume should exceed 2 trillion won within a year after the new transportation center opens.

“The groundbreaking of the new center will be the start of economic revitalization for the Daegu region,” said Kim.

BY LEE EUN-JOO [angie@joongang.co.kr]