South Korean retail giant Shinsegae will purchase a local furniture company for 180 billion won ($167.8 million) Wednesday as it attempts to tap into the country's home furnishing industry, sources said.

Shinsegae Department Store will sign a contract with Casamia Co.'s founder and other specially related persons to purchase a 92 percent stake in the company, according to sources.

Launched in 1982 as a small interior shop in Seoul, Casamia now has multiple brands, ranging from those manufacturing home decor to office furniture, under its wing. Its sales reached 121.9 billion won in 2016.

Shinsegae declined to comment on the acquisition. Korea Exchange, the country's main bourse operator, requested that the company confirm media reports in a regulatory filing by 6 p.m. Wednesday. (Yonhap)