Shinsegae May Spin Off Department Store or Discount Division

Shinsegae Co., South Korea’s biggest discount-store operator, said it is considering spinning off either its department store business or discount store division.

Shinsegae plans to hold a meeting with shareholders in March and may spin off one of the divisions in May, the Seoul-based company said in a regulatory filing today after the market closed.

The company’s shares surged in the last minutes of trading to end the session 4 percent higher at 593,000 won.

The plan would allow the separate businesses to specialize more effectively and compete better in the fast- changing retail industry, Shinsegae said in the filing.

The discount store operation accounted for about 88 percent of the company’s total revenue in the nine months through September, with department store business taking up the rest, according to a Jan. 13 filing.

To contact the reporter on this story: Saeromi Shin in Seoul at sshin15@bloomberg.net.

To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net

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