GOYANG, KOREA - IKEA, the world's largest furniture retailer, will open an outlet in Godeok-dong, Seoul, following the announcement two weeks ago that it would open a second store in Goyang City in the northwest of Seoul. The Swedish company's first location will be established in Gwangmyeong in the south of the capital.

 

 

According to the Seoul Metropolitan City Government on January 5, IKEA has recently agreed with the Gangdong District Office to open a 13,000-square-meter store within the Godeok Commercial Zone by 2017. The 146,000-square-meter zone was designated in December 2012 by the city government to host knowledge-intensive businesses as well as retail establishments. Officials of the city government and the district office expect that the opening of the IKEA store in the zone would stimulate the local economic activity.

 

An official of Hanssem, Korea's largest furniture maker, said, "Unlike in Japan and China, IKEA is accelerating its move into the Korean market. Most in the furniture industry somehow expected IKEA to open a store in Godeok-dong. The company will likely to open additional four or five locations near Seoul. As IKEA gets more aggressive in its entrance in Korea, we in the domestic industry are trying hard to come up with ways to compete."

 

Established in 1943, the Swedish company posted US$37.8 billion in sales revenue and $4.8 billion in operating income in 2012. IKEA's furniture and appliances are known for their modern architectural designs and eco-friendly simplicity.