Hyundai plans new ‘The Hyundai’ location in Busan

Interior view of ‘The Hyundai Seoul’ in Yeouido, gaining popularity as a hotspot for popup stores. (Hyundai Department Store Group)

Hyundai Department Store Group is moving forward with plans to build a massive retail complex in the western part of Busan’s Eco Delta City, sources revealed Thursday. Originally conceived as a premium outlet, the project has shifted gears toward a more immersive, cultural experience that was inspired by the success of ‘The Hyundai Seoul,’ which has attracted significant attention from younger consumers.

According to the retail industry, Hyundai Department Store Group initially planned to open the ‘Hyundai Premium Outlet Busan’ in Busan’s Gangseo District by the end of 2027, with construction expected to begin in 2025. However, group executives reconsidered the plan, deciding that a simple outlet format would no longer meet the heightened expectations of modern consumers. The company is now exploring the development of tentatively named ‘The Hyundai Busan,’ a more complex cultural and experiential space under The Hyundai brand.

Hyundai’s affiliate Han Moo Shopping secured a 99,000-square-meter plot for the project in 2022, which is about six times the size of ‘The Hyundai Seoul.’ The total investment, including land acquisition costs, is projected to hit 720.8 billion won ($546.3 million).

“We aim to provide a futuristic retail platform offering a distinct shopping experience based on a premium outlet foundation,” a Hyundai Department Store official said, while also noting that the final store name is yet to be determined.

The Hyundai is recognized as a successful example of Hyundai Department Store’s rebranding efforts, emphasizing cultural and experiential content in its spaces. The first location, The Hyundai Seoul, was launched in February 2021 with a nature-friendly concept and topped 1 trillion won in annual sales within just two years and nine months, the fastest department store in South Korea to reach that milestone. The store’s design breaks from the traditional layout by dedicating half of its floor space to indoor gardens and relaxation areas that encourage customers to stay longer. The store has also attracted large numbers of younger consumers by actively hosting popular pop-up stores and brands favored by the MZ generation.

Following the success of The Hyundai Seoul, Hyundai revamped its Daegu branch in December 2022 under the The Hyundai Daegu brand, and it plans to open The Hyundai Gwangju in 2027.

Hyundai’s increased focus on the western Busan area is part of a strategy to compete with rivals Lotte and Shinsegae, which currently dominate the retail market in Busan and the Gyeongnam region. Hyundai has been particularly trailing behind in the eastern part of Busan, where tourism and residential demand have surged, and where its competitors have established strong footholds. Hyundai Department Store undertook a two-month renovation of its Busan branch to introduce ‘Connect Hyundai,’ a local urban-style shopping mall designed to connect people, places, and culture earlier in September 2024.

Busan’s Gangseo District, home to Eco Delta City and Myeongji International City, has also experienced a steady population growth thanks to new town developments.