[Alpha Biz= Kim Jisun] SEOUL, June 12 — Hotel Shilla has filed a lawsuit seeking the return of approximately 106.5 billion won ($100 million) from Incheon International Airport Corporation, escalating a long-running dispute over duty-free shop rental fees.

According to industry sources, the lawsuit was filed on May 20, with Hotel Shilla arguing that penalties paid after returning its duty-free concession were excessive.

The conflict dates back to 2023, when Hotel Shilla secured the DF1 zone concession at Incheon International Airport by bidding 8,987 won per passenger—about 160% higher than the minimum required fee. The 10-year contract was originally set to run through 2033.

However, a weaker duty-free market and high exchange rates eroded profitability, with Hotel Shilla reportedly incurring monthly rental costs of around 30 billion won. The company sought rent reductions, but the airport operator rejected the request, citing fairness concerns and potential breach-of-duty risks.

A court later proposed lowering the fee by 25% to 6,717 won per passenger, but the plan fell through after objections from the airport authority.

Hotel Shilla ultimately withdrew from the DF1 zone in April, ending the contract after just two years and reportedly paying more than 190 billion won in penalties. The company is now seeking to recover part of those payments through legal action.

 

 

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