Lotte Duty Free and Hyundai DF Co. announced on Thursday that they have officially received approval to operate duty-free zones previously held by other retailers within Incheon International Airport.
Both Lotte and Hyundai submitted their bids in January for the licenses to operate the DF1 and DF2 zones, respectively. The Incheon International Airport Corp. (IIAC), the operator of South Korea’s main airport, had already selected the two companies as the preferred bidders last month.
The decision comes after Shinsegae Duty Free Inc. and Hotel Shilla Co. relinquished their licenses due to declining sales figures.
Following approval from the Korea Customs Service, Lotte and Hyundai are now authorized to operate the DF1 and DF2 zones for a period of seven years, extending through June 2033. The agreement includes an option to potentially extend the contracts for up to 10 years, according to IIAC.
“We anticipate that operations within the DF1 zone will generate annual sales exceeding 600 billion won (US$420 million),” stated an official from Lotte Duty Free.
Hyundai DF Co. projects annual sales of 1.1 trillion won from their duty-free business operations.
Shinsegae Duty Free is scheduled to cease operations in the DF2 zone by April 27th, although their duty-free shops located in the airport’s DF4 zone will continue to operate as normal.
Hotel Shilla had previously returned its DF1 license to the airport operator in September of the previous year.
The DF1 and DF2 zones primarily offer a range of products including cosmetics, perfumes, liquor, and tobacco.
