CHRONICLES
Chapter 1.14
South Korea is an economic and technological powerhouse, a leader in the electronics and automotive sectors, with a nominal GDP of approximately USD 1.8 trillion. Its commercial tradition has been strongly influenced by the history and development of its department stores, which today represent a pillar of urban commerce and culture.
The history of Korean department stores traces its roots to the establishment of pioneering stores, among which Hwashin Sanghoe, founded in 1927 in Seoul, stands out. Considered one of the precursors of retail trade in Korea, it contributed to the development of the Western department store model, also influenced by Japanese practices.
The oldest department store in South Korea is Shinsegae, which opened in 1930 in Seoul as a branch of Mitsukoshi, a Japanese chain. At the time, Korea was under Japanese occupation. After the end of World War II, in 1945, it was acquired by Lee Byung-chul, the founder of the Samsung Group, and renamed Donghwa Department Store. During the Korean War (1950-1953), the store was used as a postal exchange point by the US Army. In 1963, the store was renamed Shinsegae. Today, the original building is an upscale shopping mall.
Even though Shinsegae is one of the first, the history of Korean department stores traces its roots to other pioneering stores. Hwashin Sanghoe, founded in 1927 in Seoul, is considered one of the precursors of retail trade in Korea and contributed to the development of the Western department store model, also influenced by Japanese practices.
Today, major department store chains in South Korea include Lotte, Hyundai, Shinsegae, Galleria, and AK Plaza. These brands are the key players in the Korean retail landscape, offering a wide range of products, from fashion items to household appliances. Lotte, in particular, operates over 60 stores, including outlets and international branches. Shinsegae has 13 stores and three outlets, while Hyundai operates 19 stores, including four outlets.
Galleria Department Store is one of South Korea's leading department store chains, known for its focus on luxury products and distinctive architectural design. Founded in 1976 by the Hanwha conglomerate, it opened its first store in Apgujeong, an exclusive neighborhood in Seoul. Over the years, it has expanded with branches in cities such as Daejeon and Suwon. The Apgujeong flagship store is renowned for its elegance, offering high fashion items, jewelry, and luxury watches.
Galleria is not just a department store, but a lifestyle destination that integrates cultural experiences, events, and art. It also focuses on innovation with digital and interactive shopping experiences. The chain is adapting to environmental challenges, promoting sustainable practices and eco-friendly products, as well as exploring e-commerce solutions to compete with the online market.
AK Plaza, originally known as Samsung Plaza, was founded in 1999 by the Samsung conglomerate and was subsequently renamed in 2005 to better reflect its positioning and expansion. Present in cities such as Suwon, Bundang, and Anyang, it offers a combination of local and international brands, mainly targeting middle- and upper-class customers.
Today, AK Plaza is recognized for its modern shopping experiences and events that enhance the shopping journey. Despite competition from e-commerce, it continues to be a key player in the sector, with an increasing focus on sustainable practices and the integration of digital experiences to appeal to young, tech-savvy audiences.
Hanwha Galleria Timeworld, which opened in 2000 in Daejeon, is a high-end shopping mall known for its selection of luxury goods and spaces dedicated to cultural events. Owned by the Hanwha conglomerate, it serves as a point of reference for those seeking high-fashion items, exclusive watches, and jewelry. The center is also known for hosting art exhibitions and cultural events, creating a shopping experience that goes beyond simply purchasing products. With its focus on luxury and cultural experiences, Hanwha Galleria Timeworld remains one of the most prestigious shopping destinations outside of Seoul.
Like other high-end department stores, Galleria Timeworld has begun to adapt to new trends, including digital experiences and sustainability. Younger customers, who are increasingly conscious of environmental issues, are influencing brands' decisions. In response, Timeworld has implemented initiatives related to sustainability and eco-friendly retail practices.
Daegu Department Store: Daegu Department Store, opened in the 1970s, is one of the major department store chains in the city of Daegu. With a vast offering of medium and high-end products, it stands out for the quality of its items and its commitment to satisfying local customers.
While it doesn't have the same notoriety as big names like Lotte and Shinsegae, Daegu Department Store is a local landmark with a solid presence in the city and region. In recent years, it has invested in e-commerce and engaging shopping experiences, maintaining its position as the primary choice for those seeking quality at affordable prices.
NC Department Store, founded in 1996, is a department store chain distinguished by its focus on convenience and accessibility. With locations in Busan, Incheon and Ulsan, it mainly targets the middle class and families, with a wide range of mid-range products. The name "NC" stands for "NewCore", which represents the idea of a new commercial core, innovative and accessible to all.
Although not one of the luxury chains, it has gained a solid customer base due to its offering of quality products at competitive prices. NC has also invested in e-commerce and digital shopping experience, improving its competitiveness in the modern market. Today, it remains an important player for those seeking convenient and accessible shopping in South Korea's major cities.
South Korea is an extremely interesting country in the world of fashion, thanks to the rise of young designers and independent brands who are helping to renew the fashion scene and diversify the Korean commercial landscape, bringing freshness and innovation to the sector.
An aspect that is often underestimated but is essential to understanding the dynamism of the Korean shopping market is the presence of iconic shopping centers that go far beyond mere retail. Few people know that Shinsegae Centum City in Busan, recognized as the largest shopping center in the world with a surface area of approximately 293,000 square meters, is a true hub of entertainment and culture, with areas dedicated to cinemas, swimming pools, and luxury restaurants. This example highlights how Korea is investing not only in commerce but also in creating unique experiences for consumers, attracting visitors from all over the world.
To be continued..
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