[비즈한국] The Hyundai Department Store069960 D-Cube City branch has ceased operations. Although the site is considered a prime location in Sindorim, it is expected to remain vacant for the time being. This is due to an unresolved conflict between the site owner, IGIS Asset Management, and the residents of the D-Cube apartments. Residents are voicing their criticism, arguing that IGIS Asset Management is leaving the former department store space vacant without any clear plan.
Conflict Over the Use of the Former Department Store Site
On the 30th of last month, the Hyundai Department Store D-Cube City branch ended its operations, marking the end of 10 years of business since it opened in 2015. The disappointment among D-Cube City apartment residents has also grown. Spanning a total floor area of 350,000 m² (approximately 100,000 pyeong), D-Cube City is a complex featuring apartments, offices, and commercial facilities. D-Cube City apartment residents were previously able to access the department store directly from within the complex via an underground passage, but the closure has stripped them of this convenience and locational advantage.
The site of the closed department store is expected to remain empty for the time being. The difference in opinion between the D-Cube City apartment residents and IGIS Asset Management regarding the change in use of the department store building remains wide. Until both sides find a compromise, the building is destined to remain vacant. Some point out that if this major local commercial space is left empty for an extended period, it could lead to the decline of the surrounding commercial area and urban blight.
A representative from the D-Cube City Apartment Residents' Representative Council stated, "(IGIS Asset Management) closed the department store without a plan. It seems they closed it without taking responsibility, knowing they couldn't get residents' consent regarding the change to office use," adding, "There must have been enough ways to resolve this without forcing it into vacancy; which resident would like this kind of response?"
IGIS Asset Management, which acquired the retail portion of D-Cube City in 2022, expressed its intent to convert the department store space into offices. Their strategy is to improve profitability by renovating it into office space, given the unfavorable market conditions for department stores.
However, residents strongly opposed changing commercial facilities into offices. They argue that since D-Cube City was originally sold as a mixed-use complex combining commercial and residential facilities, the initial purpose must be maintained. In particular, they are fiercely criticizing IGIS Asset Management's move to unilaterally change the commercial building into offices without seeking consent from the residents of the mixed-use apartments located on the same plot. Since August of last year, residents have held over 50 protest rallies and engaged in collective action, such as filing civil complaints with the local government.
An official from the apartment residents' representative council pointed out, "There was a purpose when the D-Cube complex was created. The residents are demanding that this not be undermined," and added, "If a company lives and conducts economic activities in this region, the residents may demand responsibility later if the local landmark or its symbolic value is damaged. But IGIS Asset Management just wants to take the capital gains and leave."
The official argued, "If the local economy collapses or the symbolic value of the region is broken, who can be compensated then? Isn't it a structure where the local residents bear all the burden? We cannot accept IGIS Asset Management making a change in use and then leaving after causing harm to the residents."
IGIS Asset Management Maintains 'Commitment' to Office and Retail Mixed Development
As the conflict between residents and IGIS Asset Management deepened, Jung Seok-woo, CEO of IGIS Asset Management, appeared as a witness at the National Assembly audit last October. When criticized for pushing ahead with office remodeling without consulting residents, the company stated, "We will communicate with the residents and resolve the conflict amicably."
In fact, IGIS Asset Management has met with residents several times since then. However, residents point out that these were merely formal procedures. A representative of the apartment residents' council said, "We met with IGIS Asset Management in January and March. At that time, the residents presented a threshold for how much they could compromise," adding, "But it seems IGIS Asset Management found it difficult to accept, and the meetings have since ceased."
They continued, "IGIS Asset Management also offered 'carrots' to the residents, as if they were coaxing children. However, the representative council did not accept them," claiming, "What the residents want is simply the maintenance of the commercial area. We are only against the change of use to office facilities; we have no other demands."
IGIS Asset Management submitted an application for the change of use of the Hyundai Department Store D-Cube City branch to the Guro-gu Office last year, but it was rejected due to insufficient documentation. They later supplemented the application and resubmitted it, but withdrew it in December 2024 due to strong opposition from residents. As of now, the application for change of use is on hold. Without completing the change of use, it is difficult for the office and retail mixed development planned by IGIS Asset Management to proceed. Nevertheless, IGIS Asset Management showed its commitment to the project by signing a 250 billion won collateral loan agreement for remodeling this past February.
An official from the Guro-gu Office stated, "No new applications for change of use have been received since December last year. We understand that the developer (IGIS Asset Management) is still reviewing it. It seems likely that a new application for change of use will be submitted soon, but we don't know when that will be."
An industry insider commented, "Wouldn't it be a significant loss for both sides if the department store space remains vacant? I hear that IGIS Asset Management is continuing to make behind-the-scenes contact to persuade the opposing residents. I understand they are making efforts to find a compromise."