Shinsegae`s logistics center, warehouse-type discount stores, department stores, and no-brand specialty stores expansion is in trouble as safety and coexistence issues are rising.

According to the distribution industry on May 22, the third online logistics center, which E-Mart is promoting to Guri of Gyeonggi province, is experiencing an opposition by residents. Earlier this year, E-Mart purchased a site of about 5,000 pyong to build an online logistics center in the Guri district 1-3 area.

There is an apartment complex directly opposite the site, and residents are concerned that it is close to kindergarten, elementary, and junior high school, threatening the safety of children and elderly people. Especially, it is only 150m away from the Sanmaru Elementary School, which is expected to be opened next year, and it is pointed out that the accident risk is high if a large logistics vehicle rushes for fast delivery as it is about 240m and 350m away from Kalme Middle School and Kalme Kindergarten.

Currently, the Kalme District Association, which is considered as resident organization, is demanding the withdrawal of the construction of a logistics center. E-mart has not applied for construction permit in Guri City, and is under discussions with resident organizations such as the Association of Kalme Districts and Guri City. When the Korea Land and Housing Corporation develops residential land, the Kalme Jigu 1-3 district have a purpose to construct some facilities such as urban type factory, software promotion facility, warehouse facility, vocational training center, and large-scale store.

Choi Jae-hyuk, head of the Association of Kalme Jigu Districts, pointed out, "There is no detour to pass a large logistics vehicle in the Kalme district, so there is no choice but to go past the elementary and junior high schools. Currently, other companies have already contacted the authorities to see if it is possible to establish a logistics center in the 1-2 zone, so that the whole could be a logistics and industrial complex. "

Kim Yoon-sup, a public relations team leader of E-Mart, said, "We have not decided yet about how to develop the site. We will consult with the residents to find out plans for regional development and then make concrete plans."

Meanwhile, the opening of the "Traders" store, which is a warehouse-type discount store, is also not smooth. Recently, Yeosu of Jeonnam province, has denied permission to build a Traders building in E-Mart`s Ungcheon residential area. E-Mart applied for a building permit for construction of Traders at 53,111m² in three blocks of the Resort and Recreation Commercial Complex of Ungcheon Land Development Area in March.

Yeosu City is located near Traders` marina harbor development zone, so it is not allowed to have accommodation, auxiliary facilities, apartment buildings and traffic volume will be increased due to residents’ visit to Traders.

The expansion of the No-brand stores also faced opposition from local merchants. E-Mart operates 28 No brand stores, which mainly sell private brand products (PB). It will open nine stores this month and will open seven more stores in Gangnam High Speed Terminal in Seoul, Gyeonggi Paju and Jeonju in Jeonbuk next month. No-brand stores are selling household necessities, food, beverages, stationery, and toys. Therefore, it is very controversial that it is a threat to the local commercial sector as it has a lot of supermarket sales products. The Jeonju Supermarket Cooperative decided last week to apply for a No-brand store business and to temporarily suspend the business at the Korea Federation of Small and Medium Business. E-mart has canceled its plans to open a boutique specialty shop in Chipyung-dong, Gwangju, and Geumgok-dong, Incheon, where controversy over alleged commercial street rights has been raised.

On the other hand, the plan to build a department store by Shinsegae in Gyeonggi Bucheon, has been postponed indefinitely. Although, the Shinsegae consortium has planned to build culture, tourism, and leisure facilities in the video culture complex until next year, local traders and NGOs have fiercely opposed as plans to build a shopping mall such as Traders and department stores have been announced. Shinsegae has reduced its business plan by building only a department store. However, it feels burdened by the opposition to the launch of the new government, delaying the sale of the Sangdong Department Store premises, which was scheduled for May 12, indefinitely.


By Park Min Yeong ironlung@


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