In late October, Shinsegae announced an agreement to acquire Lotte Department Store’s Centum City branch in Busan after foreign tourist spending in the metropolitan area surpassed 1 trillion won ($745 million) through September.

The transaction gives Shinsegae control of two contiguous commercial plots in the coastal Haeundae district. The group intends to absorb its direct competitor’s declining asset into a broader mixed-use complex anchored by its existing flagship development.

Shinsegae Centum City generates more than 2 trillion won in annual gross merchandise value, ranking as the top-selling department store outside the capital region. In contrast, annual revenue at Lotte’s adjacent branch contracted from a historical peak exceeding 300 billion won to approximately 130 billion won by 2023. Shinsegae plans to physically integrate both structures with its neighbouring mall and a vacant parcel designated for luxury hospitality, office space and private residences under the unified moniker Shinsegae Town.

Lotte is using the proceeds from the Centum City disposal to fund asset renovations across its four remaining stores in the city. Capital will flow directly into its Seomyeon flagship and Lotte Mall Dongbusan, both of which generated rising turnover over the past year. Lotte Department Store is designating its Gwangbok branch in the historic downtown core for incoming international travellers, while assigning its Dongnae outlet to domestic neighbourhood shoppers.

2 trillion won in sales last year, supported by an influx of overseas diners. Food and beverage expenditure by foreign visitors at the branch surged 120 percent year on year between January and October.

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