Shinsegae moving into new territory: Duty free shops

Shinsegae Group said on Wednesday that its subsidiary Chosun Hotel has signed an agreement to acquire an 81 percent stake in Busan Paradise Duty Free Shop worth 93.15 billion won, marking the group’s entry into a new market.

The shop in Korea’s southern port city spans 6,921 square meters (74,497 square feet) and makes up 5 percent of the domestic market by sales. Last year it posted revenue of 144 billion won and operating profit of 6.5 billion.

Shinsegae Group said it will develop the area into a cultural complex featuring shopping facilities, a cinema and spa in cooperation with Centum City, the world’s largest department store, and Busan Premium Outlet, slated to open next September.

“We desperately need to revitalize the commercial areas in Busan as the number of foreign tourists here is increasing,” said an employee of Shinsegae Group.