According to a regulatory filing on Tuesday, the company has abandoned its plans to build a logistics hub in the Poseung district of the city. The company will also sell the land, which spans 102,000 square meters and is valued at about 55.5 billion won ($38.6 million).
IKEA Korea explained the decision was due to changes in consumer lifestyles and shifts in the retail environment, particularly the growth of e-commerce.
IKEA Korea had signed an agreement for the project with Gyeonggi Province in 2020. The provincial government had signed investment agreements with five foreign companies, including IKEA, to develop logistics facilities, with a total investment of 7.5 trillion won.
IKEA Korea reported a 4 percent increase in sales for the current fiscal year, reaching 625.8 billion won, while operating profit surged by 616 percent to 18.6 billion won.
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