Shinsegae Department Store signed a memorandum of understanding with Tokyu Retail Management to share content and enhance business models, marking another attempt by Korean retailers to offset sluggish domestic performance through overseas partnerships.
The agreement comes as Korea’s three largest department store operators face declining home market sales, prompting urgent international expansion efforts. Shinsegae, Hyundai and Lotte are banking on global appetite for Korean fashion and beauty products to revive growth.
The Seoul-based retailer will collaborate with the Japanese conglomerate’s commercial facility management arm, according to Tuesday’s announcement. Tokyu Group, established in 1922 as a railway operator, now runs major Tokyo properties including Shibuya landmarks and department stores.
Shinsegae has been using its B2B platform to launch Korean brand pop-ups in Japanese department stores, with current campaigns running through December at Hankyu Department Store’s Osaka location. The company recently partnered with Alibaba to challenge domestic e-commerce leaders amid intensifying competition.
Industry officials cite “significant challenges” in domestic retail markets as Korean premium retailers urgently pursue international opportunities. Recent data shows Korean beauty and fashion exports surging, with Japan sales jumping 120% year-over-year.
The partnership reflects Korean retailers’ strategy of accessing established Japanese retail expertise while leveraging Korea’s cultural export momentum globally.
