What: As competition rises, South Korea’s three biggest department store operators have recently opened massive new shopping complexes.

Why it is important: More mega malls than department stores, they are completed with experiences such as indoor parks and lots of restaurants, sometimes accounting for half of the area.

Shinsegae opened its newest location, Shinsegae Art & Science, in the city of Daejeon. At the cost of KRW 650 billion (USD 555 million), it is the first new mega development for the company in five years. Services and restaurants occupy nearly half the area.

Lotte department store opened its new Dongtan branch on 20 August. Food is the location’s biggest theme, with more than 100 restaurants on site. Many of them are popular eateries that have set up shop in a department store for the first time.

Dongtan, a suburb of Seoul, is close to an area known as South Korea’s Silicon Valley where Samsung Electronics, Naver and other tech companies have sites. High-rise condominiums being built in Dongtan are bringing high-income earners in their 30s and 40s to the area.

But controversies rose regarding this new branch as it has so far failed to attract Louis Vuitton, Chanel or Hermes (only 7 department stores in Korea have all three brands), but also Dior, Bottega Veneta and Gucci. It has also been criticized for its similar interior design to Hyundai Hyundai’s department store The Yeouido opened in February.

Hyundai department store opened the largest facility in Seoul in February. Central to the project is an indoor park covering more than 3,000-square-metres. Operating results have been strong during the first six months. Hyundai Department Store says its new location will “easily” surpass an annual sales target of KRW 630 billion won (USD 541 million) in its first full year of operation.

Korean Retailers Open Spate of Mega Malls as Competition Rises 

Controversies rise regarding Lotte's new branch