South Korean retail giant Lotte Group said Monday it is opening the lower floors of its 123-story skyscraper in a posh southwestern Seoul district this week after receiving the city government's permission amid ongoing safety concerns over "sink holes."

In a press event ahead of the official opening, Lotte said it plans to open "Lotte World Mall," which encompasses shopping and entertainment facilities, in the lower floors of the multi-purpose complex in Seoul's Jamsil district over a three-day period starting Tuesday.

The retail giant had initially aimed to open the high-rise in April this year. The plan, however, fell through as the city government nixed the plan, citing safety concerns as well as traffic congestion in the crowded residential area.

The mid-April Sewol disaster, which killed more than 300 people aboard a ferry bound for the holiday hotspot Jeju Island, also worsened public sentiment over the facility as reports of sink holes in the vicinity of the mall alarmed shoppers and residents.

In addition to the appearance of sink holes, a fall in the water level of Seokchon Lake adjacent to the shopping mall has also spurred safety concerns. Inspections have shown no clear link between the development project and either issue.

Following pre-opening tours of the complex for the public, the city government gave the final nod for the opening on Oct. 2 under the condition that it will withdraw the permission if Lotte fails to meets its safety and traffic management measures. The city also ordered the group to undergo regular safety inspections. 

"While there are various concerns over safety and traffic, we have found there are no problems through continuous inspections with the city government...We also plan to put safety as top priority in building Lotte World Tower that is set for completion by end-2016," said So Jin-sei, president of Lotte Corporate Headquarters, which controls the group's external relations.

Lotte said the 428,934 square-meter Lotte World Mall will include its luxury department store brand "Avenuel" as well as a duty free store, an aquarium, a cinema and various shopping facilities. 

The 555-meter Lotte World Tower, which is part of the sprawling mall, is set for completion by October 2016. A hotel and an observatory will be set up in the higher section of the skyscraper.

The tower will also incorporate residential and office facilities.

The conglomerate projected the mall to generate some 1.5 trillion won (US$1.4 billion) in sales each year in addition to over 6,000 new jobs, according to a separate press release.

The retail group, which currently operates an amusement park and a shopping mall in the Jamsil area, said it plans to maximize profits by differentiating the two developments.

"The new complex is more focused on premium brands. Even the grocery mart consists of premium products. We put in efforts so that the merchandising would not overlap," said Lee Won-woo, chief executive of Lotte Corp. (Yonhap)