Leading South Korean retailer Shinsegae plans to invest KRW 2.5tn (USD 2.3bn) this year to support growth amid weak domestic demand.
Investment will boost retailer's performance and create jobs in South Korea
Leading retailers including Shinsegae are fighting to achieve growth in a difficult trading climate. The South Korean market is undergoing a period of low consumer confidence and at the same time, the government is enforcing restrictions on larger players in order to create chances for smaller players to thrive.
Shinsegae's investment in 2013 is 14% higher than the figure for 2012, up from KRW 2.2tn. Spending has been concentrated in the first half of the year, and has helped support 17,000 new recruits to the business. A further 7,000 new positions are expected in the second half. Job creation is a key focus for the Korean government, with plans to achieve 70% employment levels over the next five years.
Plans include premium and shopping centres
The Korea Times reports Shinsegae's investment plans include developments in Hanam Unionsquare shopping complex in Gyeonggi Province and Dondaegu transit centre in Daegu, as well as further development of Centum City, Busan, home to its flagship department store which is the largest in the world.
Shinsegae continues to extend its premium outlet joint venture with American real estate firm Simon Property. The third Shinsegae Simon site is located in Busan and is scheduled to open in August.