Home > Business > Industry

Shinsegae megadevelopment to give Busan its answer to Roppongi Hills

Published: 30 Apr. 2026, 07:00 Updated: 30 Apr. 2026, 18:56

A view of Shinsegae department store and commercial facilities in Centum City, Haeundae District, in Busan in an undated file photo [SHINSEGAE DEPARTMENT STORE]

A Korean version of Roppongi Hills will go up in Busan’s posh Haeundae District, led by retail giant Shinsegae under the helm of Chairman Chung Yu-kyung.

The upcoming real estate development in Korea's second-largest city marks notable progress for Shinsegae since its full-scale entry into real estate development last year.

Roppongi Hills, a redevelopment project by Mori Building in Tokyo, is a swank residential and commercial complex in the Japanese capital. The venue has attracted 40 million visitors annually since its opening in 2003, according to Mori Building's official website.

On a 16,515-square-meter (4.08-acre) lot inside Centum City, Shinsegae will build a hotel, offices, high-end housing for older adults and retail facilities, according to retail and property industry sources on Tuesday.

If approvals proceed smoothly, construction could begin in the second half of next year. The project is expected to mark Shinsegae’s first full-scale role as a developer, overseeing everything from land acquisition to sales.

“With large-scale shopping facility alongside a hotel, offices and housing for older adults, we anticipate synergies such as higher shopping revenue,” said an industry source who requested anonymity. “It should also help attract foreign tourists.”

Visitors are seen taking rest at an underground plaza at Centum City in Busan in March. [YONHAP]

Shinsegae has divided the 77,900-square-meter lot inside Centum City into three segments.

Lot A became home to the Shinsegae Centum City Department Store in 2009, which was listed in Guinness World Records as the world’s largest department store at the time of its opening. With a gross floor area of 293,905 square meters — roughly the size of 40 football fields — it now houses a spa, movie theaters, a golf range and art galleries.

Lot B followed in 2016 with Centum City Mall, which houses a children’s theme park KidZania, a big bookstore, a large dining complex and brand shops.

The new project will be based on the remaining Lot C, which is currently used as a parking lot. Buildings of 60 to 70 stories will be constructed, with a floor area ratio of 1,150 percent and a building coverage ratio of 50 percent.

A notable addition is senior housing, which was not included in the initial planning.

Shinsegae has so far built only commercial facilities, meaning the company begins to profit only when construction is complete and services are launched.

The senior housing element will enable the corporation to secure construction financing, as the Korean real estate market allows presales, with buyers paying down payments, interim payments and final balances.

If 30 percent of the site is allocated to senior housing, Shinsegae could develop about 700 mid-sized units of roughly 99 to 130 square meters, or around 300 larger units of about 198 to 228 square meters. Selling the smaller units at 500 million won ($338,885) each would generate about 350 billion won.

A digital screen projects clip for Children's Day at Shinsegae department store in central Seoul on April 28. [SHINSEGAE DEPARTMENT STORE]

Industry observers say presales could ease financing, but concerns remain. While the site lacks a tertiary hospital, local demand for high-priced units is likely to be limited as the presence of a large hospital is considered an essential feature of senior residential complexes.

“Given the high cost of commercial sites, those units should be luxurious, with each priced above 1 billion won, which won’t be easy to sell,” said a real estate developer. “Still, as a conglomerate [company] with operational expertise, Shinsegae could introduce a new concept of senior housing.”

The project is led by Park Joo-hyung, the incumbent CEO of Shinsegae and Shinsegae Central. He has served at the company for 40 years and has commanded the corporate real estate leasing and management arm — Shinsegae Central — since 2016.

After renaming Shinsegae Central City to Shinsegae Central last year and announcing its development, he is expected to lead future projects.

Shinsegae is pursuing integrated real estate developments combining residential and office space with department stores, hotels and retail, often anchored by major transport hubs.

It holds multiple sites nationwide, including a 95,630-square-meter site at the Gwangju U-Square Terminal in Seo District, Gwangju; a 59,600-square-meter site near Incheon National University Station in Songdo, Incheon; and a 24,332-square-meter site in Ulsan. The group is also pushing for the redevelopment of Shinsegae Central City in Banpo-dong in southern Seoul.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY CHOI HYUN-JU [[email protected]]