Coex Mall Seoul management goes to tender
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Outside management will be introduced for Coex Mall Seoul, which has been struggling to attract shoppers since reopening a year ago after renovation.
Korea International Trade Association (KITA) chairman Kim In-ho says an entity to manage the mall will be named by the end of the year.
This is being entrusted to an outsider so it can be more effectively managed, says Kim.
“We will select the management firm in a fair and transparent manner in accordance with the law.”
A wholly owned KITA subsidiary has been managing the mall, which has been hit by a prolonged consumption slump and intensifying competition, including eCommerce.
“We have to ask ourselves this question: can we compete with Lotte, Hyundai and Shinsegae? I seriously doubt it,” says Kim. “I believe Coex Mall will be more efficiently managed by professionals, and generate larger profits and create more jobs.
“KITA needs to make money from the mall to finance its work, promoting the country’s trade.”
Meanwhile, KITA has started preparing to bid for a convention centre to be built in Jamsil Sports Complex, a few kilometers away from its Coex Convention Center.
Questions & Answers
Q.Why has Coex Mall Seoul decided to bring in outside management now?
Why has Coex Mall Seoul decided to bring in outside management now?
The mall has struggled to attract shoppers since reopening a year ago, facing a prolonged consumption slump and intense competition from other retailers and eCommerce. KITA doubts its own ability to compete with major players like Lotte, Hyundai, and Shinsegae.
Q.What is the primary goal KITA hopes to achieve by appointing an external management firm for Coex Mall?
What is the primary goal KITA hopes to achieve by appointing an external management firm for Coex Mall?
KITA believes that professional external management will operate Coex Mall more efficiently, leading to larger profits and job creation. This profit is essential for KITA to fund its work promoting South Korea's trade.
Q.What is the connection between KITA's management of Coex Mall and its wider organisational goals?
What is the connection between KITA's management of Coex Mall and its wider organisational goals?
KITA needs to generate income from Coex Mall to finance its core mission of promoting South Korea's trade. The current internal management was not effectively achieving this financial objective.
Q.What is the current status of the search for a new management firm for Coex Mall Seoul?
What is the current status of the search for a new management firm for Coex Mall Seoul?
KITA chairman Kim In-ho has stated that an entity to manage the mall will be named by the end of the current year. KITA intends to select this firm in a fair and transparent manner.
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