Shinsegae Signs Acquisition Agreement for Lotte Department Store Centum City… Outlook for Haeundae ‘Shinsegae Town’ and C-Site Development

News has emerged that could mark a turning point for the Centum City commercial district in Haeundae, Busan. As Shinsegae has signed an asset transfer agreement to acquire Lotte Department Store Centum City,attention is also turning to plans for integrated development linking the two department stores and adjacent sites.

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On October 29, 2026, Shinsegae and Lotte Shopping announced that they had signed an agreement to transfer the store and submitted a business combination filing to the Fair Trade Commission.

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However, signing an agreement does not mean the transaction will close immediately. The business combination review and subsequent procedures are still pending, so Lotte Department Store Centum City is expected to continue normal operations until the transaction is completed.

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The point to note in this announcement goes beyond a simple department store acquisition: the plan to develop Haeundae’s Centum City into ‘Shinsegae Town,’ encompassing shopping, culture, tourism, business, and lodging.

Lotte Department Store Centum City opened in 2007 and has operated for about 19 years. After Shinsegae Centum City opened nearby in 2009, the two department stores have competed in the same commercial district.

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In 2016, Shinsegae Centum City became the first department store outside the Seoul metropolitan area to exceed 1 trillion won in annual sales, and from 2023 through 2025, it exceeded 2 trillion won in annual sales for three consecutive years.

After reviewing store operating efficiency and future growth prospects, Lotte decided to sell its Centum City store.

Lotte Department Store plans to prioritize considering transfers for employees to other positions within the Busan areaand to give advance notice to tenant partners and support the transition of their operations.

Therefore, this agreement should not be taken to mean that the Lotte store will close immediately or that Shinsegae will begin operating it right away.

The plan outlined by Shinsegae focuses on organically connecting the existing Centum City store with the Lotte Department Store building it is set to acquire.

Shinsegae Centum City currently operates shopping and dining facilities centered around its department store and Centum City Mall, as well as Spa Land and an ice rink.

Adding the Lotte Department Store space could create opportunities to broaden the product selection and strengthen cultural and entertainment offerings.

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Shinsegae Town is envisioned not simply as an expansion of retail space, but as a mixed-use lifestyle destination where visitors can spend more time.

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Another anticipated benefit is the potential to connect commercial facilities around Centum City Station with cultural and exhibition infrastructure such as BEXCO and the Busan Cinema Center.

However, specific details have not yet been announced, including how each floor of the acquired store will be used, how the two buildings will be connected, which brands will move in, and the renovation schedule.

Another subject drawing interest alongside the department store acquisition is Shinsegae Centum City Site C.

Currently used as an outdoor parking lot, Site C is a development site adjacent to the existing Shinsegae department store and Centum City Mall.

Shinsegae has put forward a plan to build a mixed-use complex there, including a luxury hotel, prime offices, and premium residences.

If development of Site C becomes a reality, Centum City could grow into an urban hub encompassing not only shopping but also lodging, business, and cultural life.

Under the plan, the hotel could serve tourists’ lodging needs, the offices could accommodate a regular working population, and the residences could provide housing and long-term stays.

However, building height and floor count, project costs, and construction start and completion dates are not yet established. The future permitting process and detailed project plan need to be checked.

Shinsegae’s acquisition of Lotte Department Store Centum City could also change the competitive landscape of the Haeundae commercial district.

Where the two department stores have so far attracted customers separately, the area could shift toward bringing shopping facilities and tourism and business functions together around Shinsegae.

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If mixed-use development actually goes ahead, the number of people visiting Centum City and the time they spend there could increase, potentially creating new demand for nearby restaurants, lodging, and service businesses.

Nearby residential areas could benefit from expanded amenities and a more active commercial district, but increased traffic congestion and parking demand, as well as stronger competition with existing commercial facilities, should also be considered.

From a real estate perspective, it is difficult to conclude that announcing development alone will raise nearby apartment prices or commercial rents. The actual impact may vary depending on the pace of the project, the facilities that move in, changes in transportation conditions, and local commercial demand.

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The facts confirmed so far are the signing of the acquisition agreement and the business combination filing. It is important to distinguish these from Shinsegae Town and Site C mixed-use development, which remain plans to be fleshed out.

Going forward, it will be useful to follow the Fair Trade Commission’s review outcome, the Lotte Department Store closing date, Shinsegae’s detailed development plans, and the permitting and construction start schedule for Site Cin turn.

It remains to be seen whether Centum City can grow beyond Busan’s leading shopping district into an international hub for tourism and business.

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