Lotte Department Store’s Gwangbok branch granted one-year operation permit

A rendering of the Lotte Tower that will be built in Busan by end of 2025. [LOTTE SHOPPING]

Lotte Department Store’s Gwangbok branch in Busan will be able to stay open for another year after its operation permit was extended because the company showed progress in fulfilling its obligations to build a Lotte Tower in the city.

The city of Busan announced Wednesday that it gave an additional one-year extension of the Gwangbok branch’s operation permit, which was to expire on Friday. With the extension, the department store will be able to stay open until Sept. 30, 2023.

Lotte Shopping, operating Lotte Department Stores, had asked for a two-year extension, but the city only agreed to grant one year.

Lotte Shopping is operating the Gwangbok branch under temporary permits issued from the Busan city government that have been extended every year since 2009. The permit was extended on the condition that the company builds various leisure facilities including a 67-story Lotte Tower in Busan. However, the city rejected the extension in June due to progress not being made.

The Gwangbok branch had to close on June 1, but was able to open the following day due to Busan giving a temporary four-month extension. In exchange, Lotte Corporation and Lotte Shopping promised to build a Lotte Tower in Busan by end of 2025, a year earlier than the original goal of 2026.

According to the city, it extended the permit on Wednesday because construction has been showing progress. Lotte Corporation submitted a construction permit for Lotte Tower this month and is currently installing steel frames.

Lotte Shopping started accepting submissions for potential names for the Lotte Tower from the public in August, which the city also sees as the company’s efforts to make progress.

Busan says the Gwangbok branch will continue to be given yearly extensions based on the progress of the construction.

“We decided to grant a one-year extension to avoid any risks of Lotte delaying the construction again,” said a spokesperson for Busan city. “We will encourage Lotte to submit approvals for further necessary administrative measures and keep an eye on how it carries out the construction project.”

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]