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Shinsegae to invest record 3.4 tln won this year

South Korean retail conglomerate Shinsegae on Monday said it plans to spend a record 3.4 trillion won (US$3.1 billion) this year as it readies to launch mega malls and gear up against the local arrival of e-commerce giants Amazon and Alibaba.

The planned amount is roughly 50 percent higher compared with its 2.24 trillion won spending last year. It is also bigger than its previous record investment of 2.3 trillion won in 2013.

The retail conglomerate, which operates its namesake department store chains as well as discount chain E-mart, said the investment is part of its broader business plan aiming to raise its sales and investment by 88 trillion won and 31.4 trillion won each by 2023.

Development of major outlets are under way in suburban areas such as Hanam and Goyang, both located in Gyeonggi Province, which is adjacent to Seoul. The company also plans to bolster its mobile and online channels.

"E-mart plans to establish six online logistics centers by 2020 to overcome the limits of existing online shopping malls. We plan to counter major global e-commerce companies Amazon and Alibaba through these efforts," the group said in an e-mailed statement.

Shinsegae also plans to expand its annual hiring to 14,500 jobs, roughly 8 percent higher compared with the previous year. (Yonhap)