Will a Shinsegae mixed-use shopping mall be built in Ulsan? Skepticism is growing over a Shinsegae Department Store development around the land left vacant in Ujeong-dong, Jung-gu, Ulsan. Shinsegae has repeatedly revised its development plans since securing the land in 2013, but the project has been virtually stalled for years.
According to the retail industry on the 14th, Shinsegae said in Apr. last year that it would launch an integrated development through a parcel merger with a site owned by Dongwon Development adjacent to Ujeong-dong in Ulsan. The total development cost is 3.3 trillion won. If built as envisioned, a luxury shopping mall and 2,500 high-end residential-commercial apartment units will rise on a 46,000-square-meter (about 14,000-pyeong) site. At the time, Shinsegae Department Store CEO Park Ju-hyeong said, "We will create the largest mixed-use development complex in Busan, Ulsan and South Gyeongsang within the Ulsan Jung-gu Ujeong Innovation City, in line with the designation of a special planning zone for the innovation city."
But progress remains slow even a year later. According to the development industry, while Shinsegae and Dongwon Development are holding working-level talks, nothing has advanced beyond the permitting stage. This has prompted complaints in Ulsan. Shinsegae has kept the Ulsan site as bare land (land without buildings) for more than 13 years since securing it, while related projects in places like Gwangju are moving relatively faster.
In May 2013, Shinsegae purchased a 24,332.5-square-meter (about 7,360-pyeong) site at lot No. 490 in Ujeong-dong, a special planning zone within the Ulsan Ujeong Innovation District, and in Sept. 2021 announced plans to develop residential officetels and commercial facilities. In Nov. 2023, the city of Ulsan announced a decision (amendment) to its urban management plan (district unit plan). It opened the door for administrative approvals so that sales facilities of up to 83 floors, cultural and assembly facilities, officetels, type 1 and 2 neighborhood living facilities, and ancillary facilities could be built. However, there was little movement afterward until a project plan based on a parcel merger emerged last year.
By contrast, the "The Great Gwangju Terminal Complex Project" (The Great Gwangju) promoted by Gwangju Shinsegae moved to conceptualize the project later than Ulsan but has progressed faster. Gwangju Shinsegae is an entity 62.8% owned by Shinsegae, which operates Shinsegae Department Store, and runs Shinsegae Department Store and E-MART in the Honam region. Gwangju Shinsegae plans to invest 3 trillion won in the Gwangcheon-dong intercity bus terminal site in Seo-gu, Gwangju. The project began in Nov. 2023 when the city of Gwangju and Kumho Busline Co. signed a memorandum of understanding (MOU). It is expected to proceed smoothly once the issue of public contribution between the city and Gwangju Shinsegae is resolved. The target completion is by the end of 2028.
The development industry sees two main reasons Shinsegae cannot be proactive about the Ulsan project. First, it is difficult to be confident about the presales market for Ulsan real estate. When planning a project that considers officetels and apartments within commercial facilities, the real estate presales cycle must be weighed, and sentiment suggests Ulsan's property market cannot be described as strong.
According to the city of Ulsan, as of the end of Mar., 1,400 units in Ulsan remain unsold. Although the number of unsold dwellings has recently declined as the shipbuilding industry rebounds, some say demand for ultra-high-end housing or officetels needs to be reassessed.
A development industry official said, "Ulsan's property market is tied to industrial cycles such as shipbuilding and petrochemicals, and it's hard to say whether participants in these industries will settle in Ulsan to own ultra-high-end officetels or apartments, or whether they will prefer leasing that would spur investment." Shinsegae Engineering & Construction, which was folded into E-MART as a subsidiary, has also had a bitter experience in Ulsan. Shinsegae Engineering & Construction marketed projects including "Believe Riverent," named after its in-house brand "Believe," but due to unsold units, it set aside 6.5 billion won of construction receivables as an allowance for doubtful accounts out of 33.6 billion won.
An assessment of local consumption in Ulsan is also necessary. Since the shipbuilding downturn in 2016, consumption has been subdued. Although the shipbuilding climate has improved recently, some say shopping trips to places like Busan and Daegu have become ingrained behavior.
Ulsan already has rival department stores Hyundai Department Store and Lotte Department Store. Their sales are also trending down. As of 2020, Hyundai Department Store's Ulsan and Dong-gu branch sales were around 450 billion won, and Lotte Department Store's sales were around 240 billion won. However, the industry estimates that as of last year, both saw sales decline compared with five years earlier. Citing poor performance in 2025, Hyundai Department Store converted the Dong-gu branch into a satellite of the Ulsan store.
A retail industry official said, "Recently, department stores are pursuing an ultra-high-end strategy targeting VIP consumers, and it needs review whether such a strategy will work in Ulsan," adding, "Ulsan is a large industrial city, but it's hard to say with certainty that local residents will engage in ultra-high-end spending here."
Meanwhile, a Shinsegae official, regarding the Ulsan development, said, "We are steadily conducting consulting services related to site development and discussing matters at the working level on an ongoing basis."