[Alpha Biz= Kim Jisun] Lotte Duty-Free and Hyundai Duty-Free have submitted bids for two Incheon Airport duty-free licenses recently vacated by Shilla and Shinsegae Duty-Free, according to industry sources on January 20.

The two licenses, DF1 and DF2, cover the third-floor departure terminal, with DF1 focusing on perfumes and cosmetics (15 stores, 4,094㎡) and DF2 on liquor and tobacco (14 stores, 4,571㎡). Shilla Duty-Free and Amolux (formerly Dufry), which were expected to participate, did not submit bids, while Shinsegae Duty-Free withdrew its application at the last minute.

A Shilla Duty-Free representative cited ongoing uncertainties from changing consumer patterns and market conditions as reasons for not participating. Both Shilla and Shinsegae previously withdrew from Incheon Airport duty-free operations due to declining sales.

In response, Incheon International Airport Corporation (IIAC) issued a new bidding notice last month. The contentious issue of rent was adjusted downward: DF1’s per-passenger rent fell from KRW 5,346 to 5,031 (VAT included), a 5.9% decrease, while DF2’s dropped from KRW 5,617 to 4,994, an 11.1% reduction.

The contract term is approximately seven years, ending June 30, 2033, with an option for renewal of up to 10 years under relevant laws if requested by the winning bidder.

 

 

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