The disaster at Jeju Air's Muan International Airport on Dec. 29 of last year has left the airport closed for over 50 days. In a situation where the timeline for reopening Muan International Airport is uncertain, Korea Airport Service, the operating entity of the airport, has confirmed that it presented a 'suspension agreement' to small and medium duty-free shops located within the airport. The key point is that only the basic rent will be waived during the suspension period. However, fees for using auxiliary facilities such as offices and warehouses for operational support will be charged separately, leading to conflicts.
According to the related industry on the 14th, Muan International Airport is expected to remain closed until October. On the 2nd, Kim Yeong-rok, the governor of South Jeolla Province, appeared on KBS Radio's 'Jung Kwan-yong's Current Affairs Headquarters' and said, 'Muan International Airport needs to fundamentally improve issues such as the localizer (the defense system) and new flock problems, so it seems we won't be able to open until October.'
In this situation, Korea Airport Service is obtaining suspension agreements from commercial facilities located in the airport. According to the 'Muan International Airport Commercial Facility Suspension Agreement' obtained by ChosunBiz, the suspension period is from the 25th of last month until the resumption of flight operations.
The conditions for suspension proposed by Korea Airport Service are as follows: ▲ No basic rent will be charged until flight operations resume, but fees for using auxiliary operational facilities (such as warehouses) will be charged normally; ▲ The suspension period will be included in the contractual period, and there will be no extension of the contract period separately; ▲ If the suspension conditions are violated, the contract may be terminated due to the contractor's fault.
Among the five commercial facilities located at Muan International Airport (coffee shops, convenience stores, duty-free shops, restaurants, dining areas), City Plus Duty-Free Shop is particularly troubled by the suspension conditions. City Plus operates small and medium duty-free shops at Incheon International Airport and Muan International Airport. Unlike other commercial facilities, staff are stationed in offices for duty-free operations and use warehouses to store merchandise.
The issue lies in the uncertainty surrounding the resumption of operations, making it impossible to simply vacate the offices and warehouses. This is due to the airport's directive stating, 'Make sure to be ready to operate immediately once airport operations resume.' With the airport closure leading to no incoming or outgoing passengers, they are unable to sell key products such as alcohol, tobacco, and red ginseng, leading to zero sales, while still having to bear the monthly fees for using the facilities. Particularly, since the stored products have specific expiration dates, the losses incurred from not being able to sell items in the warehouse must be borne by the duty-free shop.
Duty-free shops must obtain or renew their permits through the Tariff-Free Sales License Examination Committee of the Customs Service. City Duty-Free Shop secured its permit for the Muan International Airport duty-free shop in April 2020 and has been under contract at Muan International Airport for five years since 2022. A representative from City Duty-Free Shop noted, 'Typically, sales from December to March are crucial for influencing annual performance, but we are in a situation where we are closed due to an unfortunate incident.' Moreover, City Duty-Free Shop's position is that because the number of suspension days is included in the contract period, an extension of the contract period is needed for the days of suspension.
In response, Korea Airport Service is internally reviewing the possibility of waiving or reducing the usage fees for operational support spaces such as offices and warehouses, but maintains the stance that an extension of the contract period due to the suspension is not possible. A representative from Korea Airport Service stated, 'After reviewing precedents from airport closures and laws, we will apply any necessary changes in the future if deemed necessary.'