Shinsegae Group to Run COEX Mall
Korean retail giant Shinsegae Group will become the operator of COEX Mall and the adjacent CALT shopping arcade in Samseong-dong, southeastern Seoul.
Shinsegae Group said on Oct. 28 that it will rebrand COEX Mall as Starfield COEX Mall and spur on its multi-purpose shopping mall business by creating synergies with its existing distribution channels.
Following the opening of Starfield Hanam in September, Shinsegae Group plans to take over COEX Mall by the middle of November, thus giving an impetus to its multi-purpose shopping mall business.
Given that COEX Mall and CALT shopping arcade actually bring in an annual rental income of 60 billion won, Shinsegae expects to make 66 billion won in rental income this year. The group says the operation will be stabilized soon.
Shinsegae will operate 327 stores in the 59,103-square-meter space for the next 10 years through a master lease agreement, which can be renewed for another 10 years.
Starfield COEX is expected to evolve into a global distribution hub by the time the construction of the underground space of Yeongdong Street, the Hyundai Global Business Center (GBC) and the new Jamsil Sports Complex is complete.
COEX membership points will be transferred to Shinsegae membership points and its 20 million members will be allowed to use their Shinsegae membership points at COEX.
Shinsegae Group said, “Operating suburban shopping mall Starfield Hanam and Starfield COEX in Gangnam will help us further strengthen our multi-purpose shopping mall business, which is our new growth engine.”