April 26, 2024

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[THE INVESTOR] The customs office is set to announce on June 22 the winner of a license to operate duty-free shops at Incheon International Airport.

Incheon International Airport Corp. earlier reported Hotel Shilla and Shinsegae DF as the two top candidates to the Korea Customs Service, pending a final decision.

The competition took place as No. 1 player Lotte Duty Free decided to return three of its four money-losing concessions to the airport, located west of Seoul, in the face of huge losses stemming from a plunge in the number of Chinese tourists.

The airport operator reorganized the three zones at the first passenger terminal into two for the bidding.

The customs authorities could either pick one company to run both of the zones or give one to each firm.

Along with Hotel Shilla and Shinsegae DF, Lotte Duty Free and Doosan also took part in the competition as the airport operator loosened the criteria for application, but were eliminated at the earlier stage.

Market watchers are paying keen attention to the results of the bidding as it could be a game changer for the country’s duty-free industry, currently led by the retail giant Lotte.

By Song Seung-hyun and newswires (ssh@heraldcorp.com)