Taiwanese department store chain Shin Kong Mitsukoshi plans to re-enter China after a setback in its first foray.

A plan has been approved by the Investment Commission under the Ministry of Economic Affairs. The investment proposal worth US$112 million is a joint venture between Shin Kong Group and Japan’s Mitsukoshi.

The proposal includes the establishment of a subsidiary which will operate its retail business in China. Shin Kong plans to open three department stores in cities of Chengdu, Chongqing and Suzhou.

The Taiwanese chain cooperated with Beijing-based Hualian Group entering Chinese in 2005, opening in Shin Kong Place in Beijing in 2007. However, a dispute arose when the Chinese partner accused Shin Kong of taking bribes from contract bidders. Hualian Group demanded Taiwanese executives at the department be dismissed from their positions.

The dispute was settled after talks.