Costco Korea will open its first warehouse store in Iksan in North Jeolla with an investment of 80 billion won ($59 million).
It will be the first Costco store to open in the southwestern region of the North and South Jeolla provinces.
Iksan's city government said Wednesday that it had signed a Memorandum of Understanding with the U.S. retail chain's Korean branch and North Jeolla's state authority for the opening of the new store.
The future Costco location is slated to occupy a 37,000-square-meter (398,265-square-foot) plot in Wanggun-myeon and projected to begin operations by the end of next year.
The investment targets the market outside of the Seoul metropolitan area, where the majority of Costco's 18 existing stores are located. The new Ilksan store will service residents who previously had to travel to other regions, such as Daejeon and Sejong, for warehouse discount shopping.
Local authorities also anticipate the creation of around 200 jobs and a potential increase in the surrounding population.
The city government also proposed measures to protect Iksan's small businesses.
Under the upcoming mutual growth agreement with Costco, the city plans to prioritize the hiring of Iksan residents, featuring high-quality local products and making other community contributions.
“The operation of Costco's Iksan branch will not only enhance residents' quality of life, but also stimulate the surrounding economy with an increase in floating population,” said Iksan Mayor Chung Heon-yool. “We will make the utmost effort to facilitate a swift transition from construction to operation.”
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