Shinsegae Vice Chairman Chung Yong-jin / Courtesy of Shinsegae Group

By Kim Jae-heun

Shinsegae, one of Korea's major retail groups, made a second bid recently to acquire IFC Mall in Yeouido, Seoul as part of its plan to secure a new growth engine for its retail business, according to industry officials Tuesday.

Unlike Starfield, a large-scale shopping complex chain that is located on the outskirts of Seoul catering to families, Shinsegae has been hoping to build a smaller urban shopping center for office workers in downtown Seoul.

Hyundai Department Store opened its latest branch of The Hyundai Seoul in Yeouido last February, just 500 meters across the street from IFC Mall. Shinsegae wants to erect a new store there to compete with its long-time retail rival.

The retail giant already runs the shopping complex Shinsegae Times Square in Yeongdeungpo, which is 2.5 kilometers away from The Hyundai Seoul. Opening another mall in the IFC building may change the habits of shoppers in the area, but Shinsegae believes it can also attract more customers from all over Seoul if there are more shopping options available.

Aerial view of The Hyundai Seoul and IFC Mall in Yeouido / Korea Times file

Shinsegae failed to comment on the issue as it said anything related to the bid is confidential.

The bidding includes three IFC buildings plus the Conrad, a five-star hotel located on the property. For Shinsegae, which operates the hotel franchise Chosun Hotel, this is a good opportunity to expand its accommodation business together with the opening of a new department store in Yeouido.

The money is not a problem as Shinsegae will participate in the bid as a financial investor together with IGIS Asset Management in the form of a consortium. The retail giant prepared about 2 trillion won of liquidity from selling three real estate properties in Seongsu, Magok and Gayang in Seoul last year.

"Shinsegae is making aggressive investments by taking the COVID-19 crisis as an opportunity to secure new growth engines. If the IGIS consortium succeeds in taking over IFC Mall, Shinsegae will have a significant impact not only in Yeouido, but also on the entire retail business in the country," an industry official said under the condition of anonymity.