Shinsegae Co., South Korea’s second-largest retailer, said Monday that it has acquired Seoul Express Bus Terminal Co., an express bus terminal operator in southern Seoul, to boost its business in the region.

Shinsegae said its express bus terminal operating unit Central City Co. has bought a 38.74 percent stake, or 1.48 million shares, in Seoul Express Bus Terminal for 220 billion won ($197.1 million).

“If the two terminal sites are developed, it will create synergy in the long term as they are connected with each other,” Central City said.

The terminal location of Seoul Express Bus Terminal for services to the southwestern part of the country is next to that of Central City terminal which services the southeastern part.

In October 2012, Shinsegae acquired a 60.02 percent stake in Central City for 1.25 trillion won to secure stable operations of its store. The express bus terminal operator owns a multipurpose complex on a 59,149-square-meter plot, where a Shinsegae store has been operating since 2000.

The purchase of Central City by Shinsegae came after its larger rival Lotte signed a deal with the Incheon city government to buy the Incheon bus terminal in which Shinsegae has been operating its third largest store by sales since 1997. (Yonhap News)