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Hyundai Department Store in Ulsan faces redevelopment after nearly 50 years
haps Magazine Korea
June 22, 2026
(Photo by haps Magazine Korea)
The original home of Hyundai Department Store in Ulsan’s Dong-gu district could soon be redeveloped, marking the end of an era for one of the company’s most historic locations.
According to Hyundai Department Store and the Housing & Urban Guarantee Corporation (HUG), a consortium led by Hyundai was recently selected as the preferred bidder for a public-supported private rental housing project.
The plan calls for the redevelopment of the site into a mixed-use complex featuring approximately 750 rental housing units along with commercial and cultural facilities.
The site traces its roots back to 1977, when it opened as the Hyundai Shopping Center to support employees of Hyundai Heavy Industries and foreign technical workers living in the area.
Operated by Hyundai’s predecessor company, it served as the group’s flagship retail location before the opening of its Apgujeong branch in Seoul in 1985.
It also remained Hyundai’s only department store outside the capital region until the opening of its Busan branch in 1995.
However, as Ulsan’s commercial center gradually shifted toward Nam-gu, the Dong-gu store experienced a steady decline. Despite a major rebuilding project in 2000 and several revitalization efforts, sales fell from 144.9 billion won in 2016 to 79.8 billion won last year.
In June 2025, the store lost its status as an independent branch and was reclassified as a satellite location of Hyundai Department Store Ulsan.
Under the redevelopment proposal, the residential component will provide around 750 rental units aimed at Hyundai Heavy Industries employees and local residents.
The lower floors will continue to feature retail space, with Hyundai planning to directly manage the commercial area through a master lease arrangement designed to maintain continuity with the existing local business district.
The store is not expected to close immediately. The project must still complete several administrative steps, including business plan reviews, investment approvals and real estate investment trust licensing.
Industry officials estimate that construction is unlikely to begin for at least another year, meaning the department store will continue operating in the meantime.