The encyclopedia · Finance & Accounting · Financial decision · 1999–2026
Lotte sold its Bundang building in 2010 — in 2026 the landlord showed the store out
Opened 1999, sold and leased back in 2010. Lotte's Bundang department store closed at the end of March 2026, after 27 years, when the landlord remodelled.
Lotte Department Store · 2026-03-31
What happened
Lotte Department Store's Bundang branch opened in 1999 in Bundang, Seongnam — the affluent first-generation new town south of Seoul. In 2010 Lotte sold the building for liquidity and leased it back: the store carried on, but the site no longer belonged to its operator.
The years between wore the branch down. Hyundai's Pangyo department store opened nearby and pulled demand away, and Bundang sat in the bottom tier of Lotte's own sales rankings, turning over ₩162.3 billion last year — numbers not worth defending. In December 2025 Lotte announced the closure: officially after sufficient prior consultation with the landlord, who wanted to remodel the building into offices to lift its asset value.
The store ended operations at the close of March 2026 after 27 years; staff were offered voluntary transfers to nearby branches. Under new chief executive Jung Hyun-seok the closure was framed as 'selection and concentration' — the restructuring's opening shot in the capital area, following Masan in 2024 and the Gasan factory outlet in 2025.
Why it happened
- The sale-and-leaseback bought cash once but surrendered the site forever; when the landlord's arithmetic changed, Lotte had no veto.
- The branch had been hollowed out for years — bottom-tier sales, Pangyo draining demand — so Lotte chose not to fight for the lease.
- The landlord's office plan gave both sides a face-saving reason to end a store that no longer earned its keep.
The lesson
Sell your building and you rent your future. Lotte sold Bundang's real estate in 2010 and stayed on as tenant; when the landlord chose offices over a department store, 27 years ended.
Aftermath
The Bundang building is to be remodelled into office and commercial space. Lotte concentrates investment on renovating its flagship 'Lotte Town' stores — Main, Jamsil, Incheon, Nowon — and on overseas expansion such as Vietnam, while the broader restructuring continues.
Sources
- IT Chosun — "Jung Hyun-seok's Lotte Department Store closes Bundang branch, renews stores... accelerating constitution improvement", 27 February 2026 (opened 1999, 27 years; closes end of March 2026; leased store, landlord remodeling plans; bottom-tier sales for years; staff offered voluntary transfers; 'selection and concentration' strategy)
- Market Economy News — "Lotte Department Store Bundang branch closes after 26 years... signal for restructuring", 23 December 2025 (announced December 2025; closes end of March 2026; ₩162.3B sales last year; competitiveness weakened after Hyundai Pangyo opened; sold property in 2010 and operated as leased store; Chairman Shin Dong-bin's directive to dispose of non-performing assets; resources to Lotte Town flagships and Vietnam)
- Dong-A Ilbo — "Failing regional department stores... Hyundai's survival competition, Ulsan branch converts to shopping mall", 6 July 2026 (Bundang branch ended operations in spring 2026; building remodeling into offices)
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