What: Shinsegae transforms a 90-year-old bank building in Seoul's Myeong-dong district into 'The Heritage', a six-level luxury cultural hub anchored by Chanel.

Why it is important: The project represents a strategic response to changing retail dynamics in South Korea, where successful retailers are combining cultural experiences with luxury shopping to maintain growth in prime locations. Shinsegae's latest retail innovation,

The Heritage, marks a significant transformation of the historic Jeil Bank headquarters in Seoul's bustling Myeong-dong district. The carefully restored 90-year-old building now houses a sophisticated retail concept across six levels, with Chanel occupying the ground and second floors in a space designed by renowned architect Peter Marino. The luxury brand's presence is complemented by a thoughtfully curated mix of cultural offerings, including a museum showcasing Korea's retail history through contemporary artifacts and archival photographs. The top floor celebrates Korean craftsmanship through art and traditional craft displays, specifically designed to appeal to international visitors. This development is strategically positioned near Shinsegae's duty-free tower, creating a luxury retail cluster that includes upcoming Louis Vuitton and Hermès stores in the adjacent Reserve building. The project demonstrates Shinsegae's commitment to elevating the shopping experience while preserving architectural heritage, potentially revitalising the Myeong-dong area and enhancing its appeal to both local and international visitors.

IADS Notes: The Heritage's launch comes at a pivotal moment in Korean retail transformation. As noted in February 2025, while many retail districts struggle with high vacancy rates, Myeong-dong maintains an impressive 4.4% occupancy rate, demonstrating its enduring appeal. The development builds upon Shinsegae's successful "House of Shinsegae" concept from June 2024, which achieved a remarkable 149.9% increase in sales through luxury experiences. This project emerges amid broader industry changes, with January 2025 data showing department store growth falling below 1%, prompting innovative responses from major retailers. The timing aligns with Shinsegae's November 2024 organizational restructuring, reflecting their strategic focus on premium retail experiences.

Shinsegae opens Chanel-anchored ‘culture hub’ in former Seoul bank