SEOUL, KOREA - Shinsegae Group will invest 40 billion won to build shopping malls in the outskirts of major cities in Korea. According to financial investment sources on September 17, Shinsegae and E-Mart held a board of directors meeting on the previous day and decided a capital increase of their affiliate Shinsegae Property Inc.

 

 

Of the 40-billion-won fund, E-Mart will pay 36 billion won while the remaining 4 billion won will be paid for by Shinsegae. Most of the fund will be used to purchase lands and pay for construction cost.

 

Shinsegae Property was established late last year to build and operate outlet shopping malls located outside cities. Until last year, the business had been jointly managed by Shinsegae Department Store and E-Mart.

 

A Shinsegae Group official explained, "The capital increase is intended to fund projects under way in Chungna [Incheon] and Goyang [northwestern outskirts of Seoul]." In addition, the group will build a total of six factory outlets for the next three years including Hanam (southeast of Seoul), Euiwang (south of Seoul), Samsong (northwest of Seoul), Daejeon, and Anseong.

 

Early this year, Shinsegae Group announced that it would invest a total of 31.4 trillion won by 2023 including this year's 2.6 trillion won.