As Shinsegae and Doosan won the golden tickets to open their first duty-free stores in Seoul with big investment pledges, eyes are now on how they will deliver on their promises to draw foreign tourists and revitalize the slump in traditional markets.

Retail giant Shinsegae and Doosan, a heavy industries conglomerate, have won the tightly contested race to take over two licenses from Hotel Lotte and SK Networks, while Lotte managed to keep its main store in the downtown capital.

While the new contenders are considered the biggest beneficiaries amid the stagnant domestic economy, market watchers raised hope that the new stores could potentially boost nearby traditional markets grappling with falling customers. 

Shinsegae, the owner of No. 1 discount chain E-Mart, said it will partner with the city government to upgrade the Namdaemun traditional market and adjacent area to a global tourism spot by investing 53 billion won ($45.1 million) over the next five years.

The market houses over 10,000 stores along the streets near Sungnyemun, the main southern gate of the old city wall known as Namdaemun Gate, offering a wide range of choices for local products, daily necessities and street food.

"Shinsegae's duty-free store could become a bridge that guides foreign travelers in Myeongdong to Namdaemun market," Sung Yong-mok, Shinsegae DF president, said in a briefing last month.

Shinsegae also plans to renovate a 37-year-old fountain in front of its department store and the surrounding area to make it similar to the Trevi Fountain in Rome.

Its proposed store is located near Sungnyemun, Korea's National Treasure No. 1, the Namdaemum traditional market and within walking distance of Mt. Namsan. It is also close to Lotte's main duty-free store in Myeongdong.

Doosan's proposed store in its fashion shopping mall Doosan Tower drew much attention as it is the first duty-free shop to enter the Dongdaemum market, a mecca of the nation's fashion industry.

Dongdaemun market is the second most-visited shopping district by foreigners following Myeongdong, crowded with shoppers hunting for designer clothes at cheap prices.

Doosan, a novice to the duty-free biz, said it will feature not only imported luxury goods but also home-grown fashion brands to help foster promising designers.

The company also said it will work with nearby shop owners to develop travel courses around Dongdaemun market, blending history with shopping and eating.

For that goal, Doosan Group chairman Park Yong-man said he will donate 10 billion won for a foundation aimed at revitalizing the Dongdaemun market, adding firepower to the group's 10 billion won investment for the project.

"Dongdaemun has tourism resources that can match other tourism attractions in Seoul," Park said during a press conference last month. "As the circumstances are already ready, the foundation will assist with developing tourism in the Dongdaemun area."

Doosan Tower is adjacent to Honginjimun, more commonly known as Dongdaemun, one of the eight Fortress Walls of Seoul, and Chungye Stream, which runs through the heart of the capital.

It is also close to Dongdaemun Design Plaza, the newest landmark designed by world-renowned architect Zaha Hadid.

The average spending by foreign tourists only accounts for about 30 percent of Myeongdong visitors, according to the city's data, as the area is heavily reliant on the wholesale business.

Market watchers say the key of success for their tourism projects will be on how they develop the surrounding areas in cooperation with the local communities to tell a better story about Korea and offer a wide range of opportunities to open tourist wallets.

"Although there are many tourists in the Dongdaemun area, they spend much less money here due to the lack of shopping options and eating places," Chi Dae-shik, an official at Dongdaemun market shoppers' association, said.

"A new duty-free store alone may not be enough to boost tourism in this area, but it is expected to bring more shoppers and revive the atmosphere in the long term." (Yonhap)