The encyclopedia · Strategy & Leadership · Strategic decision · 2011–2025
Hyundai's D-Cube City store never left the bottom — the landlord ended it
Opened 2011 in Sindorim's D-Cube City, it never escaped the bottom of Hyundai's 16 stores. When the lease ended in June 2025, the landlord chose offices.
Hyundai Department Store · IGIS Asset Management · 2025-06-30
What happened
Hyundai Department Store opened in Sindorim's D-Cube City complex in 2011, directly attached to the Line 1 and 2 transfer station, and renewed the store in 2015. The foot traffic never turned into rank: the store sat in the bottom tier of Hyundai's 16 nationwide stores, with sales sliding from ₩242 billion in 2022 to ₩230.6 billion in 2023.
The closure was decided in July 2024 and announced on the company's website on 19 June 2025: the store would end business on 30 June, after fourteen years. The trigger was the building itself — owner IGIS Asset Management chose not to renew, opting instead to convert the property from retail to office and commercial use.
The exit landed amid a widening split in Korean department stores. Flagship megastores like The Hyundai Seoul grew — ₩1.2 trillion in 2024, up 8.2% — while mid-sized neighbourhood stores shrank, squeezed by online shopping. Hyundai's response was to concentrate on premium flagships and MZ-targeted formats rather than defend mid-tier locations it did not own.
Why it happened
- A store attached to a busy transfer station still needs a reason to buy; D-Cube City stayed bottom-ranked for years despite 130,000 daily passengers.
- Hyundai operated the store as a tenant — when the owner judged the land worth more as offices, fourteen years of footprint ended without a vote.
- Online shopping took the everyday purchases mid-tier department stores live on, while premium flagships kept growing.
The lesson
Renting the ground under a bottom-ranked store means the landlord holds the exit. The moment the land is worth more as offices, the footprint ends — own the asset or fix the rank.
Aftermath
The D-Cube City building stood vacant after the closure as IGIS Asset Management and the apartment residents clashed over the conversion to offices; plans to bring in a Starfield Village format were reported. Hyundai Department Store continued pruning weak stores and concentrating investment on its flagship locations.
Sources
- Edaily — "Hyundai Department Store to close Sindorim D-Cube City store on the 30th", 19 June 2025 (closure notice; sales ₩242B in 2022 falling to ₩230.6B in 2023; bottom tier of 16 stores)
- Realty Chosun — "'Sindorim COEX' Hyundai Department Store closes… D-Cube City office conversion", 8 July 2025 (operating losses cited; The Hyundai Seoul ₩1.2T in 2024, +8.2%, while mid-sized stores shrink)
- Newsway — "Sindorim landmark D-Cube closes today… Hyundai focuses on core stores", 30 June 2025 (online growth and retail restructuring as background; premium complex and MZ formats as strategy)
spotted an error? The club wants to know.
More like this
Black Yak pulled the plug on its Heal Creek golf wear — 8 years in, still losing money
Daegu's last home-grown department store — the family is selling it for ₩22.3B
Hyundai's first department store opened in 1977 — now it becomes 750 rental flats
Somewhere, someone solved the problem this company failed at. 2nd Opinion →
Comments · 0
Sign in to join the comments.