May 08, 2024

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[THE INVESTOR] Hanwha Galleria Timeworld will turn to black as its duty-free business improves, said Mirae Asset Daewoo on March 20. 

The retailer streamlined its duty-free sector last year and will be able to turn to black next year. Depending on how soon the inbound tourism from China recovers the timeline might be moved up, said analyst Kim Myeong-ju. Decrease in loss from the division will let it swing back to black company-wide this year, underlined the analyst.

Shinsegae and Hyundai Department Store Group will unveil downtown duty-free stores in the latter half, but will have limited effect since Hanwha is not located in the same zones of southern and central Seoul, according to Kim.

Meanwhile its department store in Daejeon is solidifying its position with a prime location and as well as being the sole supplier of luxury brands. Since its rival in the region has no plans to bring in high-end goods, it will maintain its market share but will need to secure competitiveness in online channels, said the analyst. 

By Hwang You-mee (glamazon@heraldcorp.com)