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Retailing in South Korea

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Wholesale marts

Homeplus, one of wholesale marts, in Korea
Lotte mart, one of wholesale marts, in Korea

The nation's large retail store has a size of over 3,000 square meters, selling products such as food, household goods and home appliances to consumers in a self-service manner at a lower price than the average store.[1] Food products, including fresh and processed foods, account for an overwhelming 50 percent of the sales, followed by household goods and appliances.[2] While the narrow concept of large marts includes E-Mart, Homeplus, and LotteMart, the broader concept includes warehouse discount such as Costco, Traders, and Big Market.[2]

History of wholesale marts

emart, one of wholesale marts, in Korea

Wholesale marts were introduced to Korea in 1993.[2] Shinsegae opened its first E-Mart store in Changdong-gu. The first large retail store was a warehouse, with a minimal amount of service and an uncluttered interior of the store centered on box sales.[2] In the late 1990s, early wholesale marts turned to ' large Korean marts ' which changed direction to include aspects of luxury of interior design, high levels of service, and various auxiliary facilities, designed to match the buying habits of Koreans.[2] With the opening of the distribution market in 1996, Korean companies and foreign global retailers such as Wal-Mart and Carrefour, started to compete fiercely. Wal-Mart and Carrefour withdrew from the South Korean market between 2006 and 2007.[2] When Homeplus acquired 35 Homevers of E.Land Retail in 2008, three main retailers ㅡ emart (1993), Lotte Mart (1998), and Home Plus (1999) ㅡ took over the market.[2]

Market condition of wholesale mart

As of 2013, the sales of large stores were about $3.4 billion, and there were 483 stores nationwide.[2] Korea's total retail market in 2013 was $310 billion, with wholesale marts accounting for about 10.8 percent of the total retail market.[2] This is the highest percentage of major retail outlets such as department stores, supermarkets and convenience stores.[2]

As of 2013, South Korea's big 3 wholesale marts ㅡ E-Mart (1993), Lotte Mart (1998), and Home Plus (1999)ㅡ has 395 stores. E-Mart has 148 stores (37.5%), Home plus has 139 stores (35.2%), and Lotte mart has 108 stores (27.3%). For E-Mart and Lotte Mart, the number of stores includes warehouse discount stores.[2]

Department stores

A department store refers to a retail store with a wide range of stores. Department store is distinguished from a chain system that wants self-service from customers. And department store covers a wide range of goods, ranging from moderate to high-end. Although of different scales, department stores are scattered throughout the downtown and rural areas of Korea.[3]

Lotte Department Store in Jung District, Busan

In Korea, department stores are defined by the Distribution Industry Development Act as retail stores that meet the criteria of more than 3,000 square meters of floor space, and treat diverse items and customer-friendly facilities.[4] Under the same law, the stores are registered and managed by local governments as large stores.[3] The large stores on record include department stores, large marts, shopping centers, shopping malls, specialty stores, and other large retail stores, and most of them are registered as department stores, but some are shopping centers or shopping malls.[4] Conversely, some outlet and shopping mall buildings have been registered as department stores. As a nationwide department store, Lotte, Hyundai and Shinsegae are ranked first in market share.[5] Under the three-column system of big companies, There are Galleria, which is based on Hanwha, NC, which is based on E-Land, and wide range of distributors including Dong-A. NC Department Store and Donga Department Store are operating as stores targeting middle class stores and outlets, so they are slightly different in brand composition from other department stores. Therefore, this section will focus on Lotte, Hyundai, Shinsegae, Galleria and AK Plaza.[6][7]

History of department stores in Korea

Department stores in Korea were opened in Seoul, Busan, and Pyongyang mainly by Japanese capital around 1930, when Koreans were against Japan (Korea under Japanese rule).[8][5] The first department store by ethnic capital was Hwasin Department Store, founded by Park Heung-sik in 1931.[5][8] This department store South Korea in Japanese occupation a leading role in our business to not only exclude broker's excessive profits but also build a modern distribution form of modern department store.[8][5] But in the 1980s, the management getting worse, Hwasin Department Store disappeared in Korea. In 1963, Samsung Group acquired Donghwa Department Store, which was currently located at Shinsegae headquarters, and changed its name to Shinsegae Department Store.[5][8] In 1966, Midopa Department Store was established based on Jeongjaok, which was founded by national capital in 1938.[5] In the 1970s, the department store became more active as the living standard improved, improving consumers' perception of department stores and increasing their ability to run department stores. As a result, department stores, which were concentrated in the shopping district of Myeong-dong, have started to spread around urban areas, down towns, and areas where luxury housing is concentrated.[5] With the establishment of Lotte Department Store in 1979, the department store industry began to compete fiercely. As consumers ' preference for department stores increased with the improvement of living standards in the 1980s, department stores such as Hyundai, New York, Yeongdong, and Grand were established. In the 2000s, department stores became not only a shopping area but also a rest area and a culture center.[5]

Galleria Department Store

Galleria Department Store operates five stores as of 2015. Galleria is a name that takes advantage of the English word ' gallery ' to enhance the luxurious image and pronunciation convenience. Its main branch is located in Apgujeong-dong, Gangnam-gu, Seoul, and also its main branch runs a café chain, Beans&Berries.[9] The Galleria Department Store is operated by Hanwha Galleria and its headquarters are 63 Building in Seoul.

Hyundai Department Store

Hyundai Department Store (Hangul: 주식회사 현대백화점, 株式會社 現代百貨店) is the company that established the department store business with Hyundai Group in 1968.[10] Its main branch is located in 165 (Apgujeong-dong), Gangnam-gu, Seoul, and has several department stores nationwide.[10][11] Hyundai is also pursuing diversification in addition to the department store business. In 1985, it moved its head office to Apgujeong-dong, and in April 2000, it changed its name to Hyundai Department Store at the Geumgang Development Industry.[10]

Lotte Department Store

Lotte Department Store (Hangul: 롯데백화점) is a Korean retail company established in 1979, and headquartered in Sogong-dong, Jung-gu, Seoul, South Korea.[11] Lotte Department Store offers retail consumer goods and services and is one out of 8 business units of Lotte Shopping.[11] Other Lotte retail companies include discount store Lotte Mart and supermarket Lotte Super.

Inside the Shinsegae Department Store in Busan, South Korea

Shinsegae Department Store

Shinsegae is a South Korean department store franchise, along with several other businesses, headquartered in Seoul, South Korea.[12] The name Shinsegae literally means "New World" in Korean. Its flagship store in Centum City, Busan, is the world's largest department store, surpassing Macy's flagship Herald Squarein New York City in 2009.[13]

It is the only department store that uses the old building of its headquarters in Korea. It was first opened on October 24, 1930 and changed to Donghwa Department Store after the Liberation of Korea republic, and absorbed into Samsung Group in 1963.[12]

It changed its symbol into a peacock in 1970 and declared independence from Samsung Group in 1991 and separated completely in 1997.[13] In 2001, the company changed its mission from Shinsegae Department Store to Shinsegae.[13]

Flea and free markets

In Seoul, there are some unique flea markets selling secondhand goods and handcrafts. Some markets are held all year around but some are only held just once a week or twice a month and so on.

Hwanghak-dong Flea Market (Dokkaebi Market / Manmul Market) & Dongmyo Flea Market

The Hwanghak-dong Flea Market (Hangul: 황학동 벼룩시장) is located along the Cheonggyecheon Stream and sells secondhand goods. And Hwanghak-dong Flea Market is popularly named as "Manmul Market" (Hangul: 만물시장). Hwanghak-dong Flea Market is called as "Dokkaebi Market "(Hangul: 도깨비시장).[14]

Seoul Folk Flea Market

Seoul Folk Flea Market
Seoul Folk Flea Market

Seoul Folk Flea Market (Hangul: 서울 풍물시장) sells specialty products from different regions in Korea. This market was formed by vendors of Hwanghak-dong Flea Market, who lost their shop because of the restoration of the Cheonggyecheon Stream. At Seoul Folk Flea Market, people could buy everyday goods, folk items of Korea, crafts, and traditional Korea snacks.[15]

Seoul Insadong Ssamzie Market

Insa-dong's Ssamziegil

Seoul Insadong flea market

Ssamzigil (Hangul: 쌈지길) is an Insa-dong shopping street that sells handcrafts and designer's goods. Ssamzigil has four above ground levels which is connected by a walkway. Besides antiques and handcrafts, there are also attractions such as exhibitions, performances, traditional tea houses and so on.[16]

Hongdae Free Market

Hongdae Free Market (Hangul: 홍대 프리마켓) is on the neighborhood streets of Hongik University, which is popularly known as Hongdae. Hongdae Free Market allows artists to interact and communicate in a public. Hongdae Free Market brings over 50 to 60 teams of different artists every Saturday. These artists freely perform, sell, and exhibit their work. Hongdae Free Market offers metal crafts, leather works, ceramic crafts, wood crafts, glass works and so on.[17]

Seocho Saturday Flea Market

The Seocho Saturday Flea Market (Hangul: 서초 토요 벼룩시장) was originally held a place for selling secondhand household items to overcome Asian economic crisis in 1997. This Market offers seasonal items, nursery products and so on.[18]

Name Location Products Address Opening hours
Hwannghak-dong Flea Market (Hangul: 황학동 벼룩시장 (도깨비시장/만물시장)) Jung-gu Old books and videos, electronic appliances 20, Majang-ro 3-gil, Jung-gu, Seoul 09:00–18:00 / Schedule varies by store
Dongmyo Flea Market (Hangul: 동묘 벼룩시장) Vintage clothes Dongmyo Park area nearby 84, Nangye-ro 27-gil, Jongno-gu, Seoul 09:00–18:00 / Schedule varies by store
Seoul Folk Flea Market (Hangul: 서울 풍물시장) Dongdaemun-gu 21, Cheonho-daero 4-gil, Dongdaemun-gu, Seoul 10:00–19:00

*Restaurants close at 22:00 / Closed 2nd & 4th Tuesday

Insa-dong's Ssamziegil (Hangul: 쌈지길) Jongno-gu 44, Insadong-gil, Jongno-gu, Seoul 11:00–21:00 / Closed Seollal (Korean New Year's Day)and Chuseok (Korean Thanksgiving Day)
Hongdae Free Market (Hangul: 홍대 프리마켓) Hongik Children's Park, 19–3, Wausan-ro 21-gil, Mapo-gu, Seoul Saturdays 13:00–18:00 / Canceled in case of rainfall and closed in winter (December–February)
Seocho Saturday Flea Market (Hangul: 서초 토요 벼룩시장) Varies by week

-Yongheori Neighborhood Park (Week 1): 1324–1, Seocho-dong, Seocho-gu, Seoul

-Banpo Sports Complex (Week 2): 15–2, Banpo 2-dong, Seocho-gu, Seoul

-Bangbae-dong Bokgae Road (Week 3): 2089, Nambusunhwan-ro, Dongjak-gu, Seoul

-Seocho Cultural Arts Park (Week 4): 40, Baumoe-ro 12-gil, Seocho-gu, Seoul

April–November, Saturdays 09:00–14:30 / Canceled in case of rain

ㄴ(This contents are from this source[19])

Traditional markets

Tongin Market
TongIn Market Entrance

Tongin Market was founded in June 1941 for the Japanese who lived near Hyoja-dong (Hangul: 효자동) during the Japanese colonial period. After the Korean War, the demand for the consumption space due to the sudden population increase in the Seochon(Hangul: 서촌) led to the formation of the market and the shops around the public market. Tongin Market, which consists of 75 stores, has the largest distribution of restaurants related to catering such as restaurants and side dishes, followed by primary products such as vegetables, fruits and fish. In addition, there are some industrial products such as shoes, shoes, and other items. In 2005, after the committee was officially registered as an Injeong market, it was equipped with modernization facilities based on government subsidies and merchant dues. In 2010, it was selected as the "Seoul-based cultural market" hosted by Seoul City and Jongno-gu and is being developed as a market where culture and arts are together. In recent years, it has been registered as a corporation of Tongin Community Village and established an integrated call center and a distribution center.[20]

Namdaemun Market
Namdaemun market restaurants street

The Namdaemun Market was founded in 1414, the 14th year of the Joseon Dynasty. In 1964, it became a joint stock company of landowners and merchants. Through Japanese colonial era, the Korean War, and lots of big and small fire, the Namdaemun Market entered the merchant of Namdaemun Market at 2011. And at 2014, it was 600-year anniversary of Namdaemun Market.[21] It offers over 1,700 varieties of goods including clothing, accessories, kitchenware and so on. Also Namdaemun Market is known as one of the best marketplaces to buy traditional handcrafts. And popular attractions including Deoksugung Palace and Gwanghwamun Gate are located nearby.[22]

Gwangjang Market
Gwangjang Market

The Gwangjang Market is the first Korea permanent market that has 100 years traditional.[clarification needed] In 1905, Japan carried out the money rearrangement business. This caused instability to the merchants of Joseon and led to the establishment of Gwangjang Corporation. In 1905 the name of this market was Dongdaemun Market, but after 1960 it became Gwangjang market. Because this market was expected to cover the gap between extended bridge called Gwanggyo and long bridge called Janggyo, they took the words Gwang and Jang from the bridges and created the word Gwangjang.[23] This market has stores and food vendors that serve popular Korean foods like bindaetteok, gimbap, bibimbap, and sundae.[24]

Garak Fish Market
Garak Market

Garak Market was opened in 1985 and it was the first public wholesale market in Korea. Garak Market is divided into different sections and each of them dedicated to fruits, vegetables, seafood, and meat.[25]

Noryangjin Fisheries Wholesale Market

The Noryangjin Fisheries Wholesale Market is the central wholesale market established by Seoul city. It is organized by sales of consignment and renting additional facilities, operating cold storage, making and selling the ice and so on.[26] The Noryangjin Fisheries Wholesale Market has a history of more than 80 years.[27]

Name Address Products Open Hours
Tongin Market (Hangul: 통인시장) 18, Jahamun-ro 15-gil, Jongno-gu, Seoul Grocery stores, manufactured goods,... 07:00–21:00

(Closed: Third Sunday of each month (Dosirak Cafe is closed Mondays))

Namdaemun Market (Hangul: 남대문시장) 21, Namdaemunsijang 4-gil, Jung-gu, Seoul Fashion apparel, everyday commodities,... 00:00–23:00 (Closed on Sundays)
Gwangjang Market (Hangul: 광장시장) 88, Changgyeonggung-ro, Jongno-gu, Seoul Silk, dress material, fashion apparel, agricultural and marine products,... Weekdays 09:00–18:00 / Weekends 09:00-17:00 (Foods 09:00-23:00)
Garak Market (Hangul: 가락시장) 932, Yangjae-daero, Songpa-gu, Seoul Agricultural products, livestock, seafood,... 00:00–24:00
Noryangjin Fisheries Market (Hangul: 노량진수산물도매시장) 674, Nodeul-ro, Dongjak-gu, Seoul Live fish, mackerel, squid, abalone, blue crab,... Seniority 00:00–24:00 /

Shellfish 01:00–22:00 /

Public 01:30–22:00 /

Frozen 03:30–22:00

This is a list of traditional markets outside of Seoul.[28]

List of traditional markets outside of Seoul
Name Location Products Address Image
Jeju Dongmun Traditional Market (Hangul: 동문재래시장) Jeju-do Agricultural products and seafood 20, Gwandeok-ro 14-gil, Jeju-si, Jeju-do
Busan Gukje Market (Hangul: 남포동 국제시장) Busan Machinery, electronics, kitchen appliances, clothing, food, agricultural products, fish, dairy goods, Industrial products and more Sinchang-dong 4-ga, Jung-gu, Busan
Busan Nampodong groceries market
Busan Bupyeong (Kkangtong) Market (Hangul: 부평시장(깡통시장)) Busan Liquor, clothes, accessories, general merchandise, etc. 48, Bupyeong 1-gil, Jung-gu, Busan
Chuncheon Romantic Market (Hangul: 춘천 낭만시장) Chuncheon(in Gangwon-do) Clothes, shoes, fresh produce, seafood, etc. 34, Myeongdong-gil, Chuncheon-si, Gangwon-do
Jeonju Nambu Traditional Market (Hangul: 전주 남부시장) Jeonju(in Jeollabuk-do) General goods, vetegables, fruits, fish and meats, etc. 63, Pungnammun 2-gil, Wansan-gu, Jeonju-si, Jeollabuk-do
Gyeongju Jungang Market (Hangul: 경주 중앙시장) Gyeongju(in Gyeongsangbuk-do) Clothing, linen and cotton, general goods, food, fish, meat, restaurant, rice cakes, etc. 295, Geumseong-ro, Gyeongju-si, Gyeongsangbuk-do
Incheon Sinpo International Market (Hangul: 신포국제시장) Incheon Crops, meat, fish, vegetables, fruits, bread, rice cakes, side dishes, restaurants, clothes, shoes, general goods, etc. 11-5, Uhyeon-ro 49beon-gil, Jung-gu, Incheon
Suwon Paldalmun Market (Hangul: 수원 영동시장) Suwon(in Gyeonggi-do) General items, clothes, household goods, foods, poultry, and more. 6, Suwoncheon-ro 255beon-gil, Paldal-gu, Suwon-si, Gyeonggi-do
Daegu Seomun Market (Hangul: 대구 서문시장) Daegu Silk, cotton, linen, crafts, kitchenware, men's and women's clothing, seafood, etc. 45, Keunjang-ro 26-gil, Jung-gu, Daegu
Seomun Market Gate
Gangneung Jungang Market (Hangul: 강릉 중앙시장) Gangneung(in Gangwon-do) Fresh fish, dried fish, clothing, hanbok, general merchandise, etc. 21, Geumseong-ro, Gangneung-si, Gangwon-do
Tongyeong Seoho Market & Jungang Market (Hangul: 통영 중앙시장) Tongyeong(in Gyeongsangnam-do) Fish, dried fish, agricultural and specialty products 14-16, Jungangsijang 1-gil, Tongyeong-si, Gyeongsangnam-do

ㄴ(This contents are from this source[28])

Underground shopping malls

Korea's underground shopping mall is where people check out the latest trend from fashion-forward but economical stores. Some underground shopping malls have recently gone through renovations to provide a more convenient shopping experience. The biggest merit of underground shopping malls is the diversity of apparels available at extremely affordable prices compared to those sold at department stores and shopping outlets.[29]

Gangnam Station Underground Shopping Center

Gangnam Station Underground Shopping Center (Hangul: 강남역 지하도상가) is a popular place for shoppers in their 20s and 30s. The mall is located in Gangnam Station of Seoul Subway Line 2, and consists of all the latest fashion trends. It is also an ideal place to shop to keep up with the so-called "Gangnam Style" (Hangul: 강남스타일). High-quality fashion brands, as well as other fashion accessories can be found at excellent prices. For these reasons, this shopping center attracts students and frugal youths.[30]

Connected to Sinnonhyeon Station, the Gangnam Station Kyobo comes in second only to the Gwanghwamun branch. This Kyobo (Hangul: 교보) is separated into two separate floors. One of the floors is dedicated to books and the occasional lecture while the other has a colorful corner devoted to children's literature and art goods.[31]

Goto Mall (Gangnam Terminal Underground Shopping Center)

Gangnam Terminal Underground Shopping Center (Hangul: 강남터미널 지하도상가) is often called "Goto mall (Hangul: 고투몰)" in short. Over 600 stores are lined up on both sides of the two long, parallel corridors featuring clothing, fashion accessories, interior products, flowers and dining, and other attractive items mainly targeted towards female consumers.[32] It is also connected to Famille Station and Shinsegae Department Store (Gangnam Branch).[29]

Bupyeong Modoo Mall

Bupyeong Modoo Mall (Bupyeong Underground Shopping Mall) (Hangul: 부평 모두몰(부평 지하도상가)) boasts a variety of fashion and styles offered by approximately 1,400 individual businesses gathered in an area of approximately 31,000 square meters. This mall is divided into seven sections from A to G. Simply wandering from shop to shop can be fun, but you can easily get lost due to the large number of shops. In that case, use the color indications marked on the floor to find your way. Spreading out from the center of the shopping mall, the path divides into red, green, and blue trails, while the area around the fountain is orange. These color indications will not only prevent you from getting lost, but it will guide you to any store you want.[29]

Seomyeon Underground Shopping Center

Seomyeon Underground Shopping Center (Hangul: 서면지하도상가) has a long history in Seomyeon, the most bustling area in Busan and a hub of public transportation. This underground shopping area has a great number of clothing, accessory, and shoe stops, and is connected to Daehyeon Free Mall Busan Branch and Lotte Underground Mall. Seomyeon Underground Shopping Center is known for offering fashion style collection from both popular brand stores as well as less popular but affordable ones. The Shopping Center is a great place to find various brands at more affordable prices. The shopping area also continues to the ground level, making it one of the best spots to wander around in the city. In addition, the Information Desk found at the center underground mall offers interpretation services for international tourists. Known as the "Silver Interpreters," they provide assistance on Monday to Saturday from 09:00 to 19:00 in English, Chinese, and Japanese, depending on staff schedule.[33]

Daehyeon Free Mall

The Daehyeon Free Mall is located on Dongseong-ro, which is often considered to be the heart of Daegu. Daehyeon Free Mall – Daegu Branch (Hangul: 대현프리몰-대구점) is the biggest underground shopping center that is loved by locals. All the shops and vendors in the vicinity are gathered in this place, which makes the population fluctuation a whopping 300,000. Fashion, electronics, food and other things can all be found within the mall. The mall is easily accessible via subway from Jungangno Station (Daegu Subway Line 1) and the many city buses that stop here. There are also various events held in the mall's cultural space. Out of all underground malls, it prides itself for having the only musical square that showcases four excellent international musicals, whose posters adorn the walls of the square. There are also many photo zones found within the mall where visitors can take memorable photos.[34]

See also

References

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  17. ^ "Hongdae Free Market". Official Site of Korea Tourism Org.
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  22. ^ "Namdaemun Market 2". Official Site of Korea Tourism Org.
  23. ^ "Gwangjang Market 1".
  24. ^ "Gwangjang Market 2". Official Site of Korea Tourism.
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