The Shinsegae Duty-Free Shop in Busan decided to close due to poor performance.
The Department Store Duty-Free Shop Sales Service Labor Union noted, "Shinsegae Duty-Free Shop notified its partner company of the Busan location's closure plan on Dec. 30 of last year," on the 6th.
Although the exact closure date has not been set, the union reported that employees have been informed they can be fully dismissed by the 24th of this month.
The Shinsegae Duty-Free Shop in Busan is currently permitted to operate until 2026, and to return its patent rights, it must go through consultation and discussion procedures. This appears to be due to the ongoing downturn in the duty-free industry caused by a decline in group tourism from China and high exchange rates.
Previously, Shinsegae DF, which operates the Shinsegae Duty-Free Shop, established an "Emergency Management Task Force" under CEO Yushin and entered an emergency management system, accepting voluntary resignations since mid-November of last year while reviewing restructuring plans.
Located in Centum City Mall in Busan, the Shinsegae Duty-Free Shop has struggled more since it is a downtown duty-free shop rather than an airport duty-free shop. As the number of brands decreased, it reduced its sales area by 25% in November of last year, and as the number of voluntary resignation applicants increased, it shortened its business days from seven to five starting at the end of the year.
The union plans to hold a rally calling for employment responsibility in front of the main Shinsegae Duty-Free Shop at 11 a.m. on the 7th. There are over 50 union members, most of whom are sales workers for cosmetic brands.
The union stated, "Shinsegae Duty-Free Shop implemented voluntary resignations for directly hired employees but only mentioned that nothing has been confirmed for workers from partner companies," demanding that Shinsegae must fulfill its employment responsibilities to the partner company workers.