The Incheon International Airport Corporation and the duty-free industry are in conflict over the issue of rent reduction. Following the COVID-19 pandemic, the recovery of passenger traffic has been slow, and duty-free sales have plummeted. Shin Ramyun Duty Free and Shinsegae Duty Free have demanded a 40% rent reduction and have exercised their right to claim a reduction in rent. The Incheon International Airport Corporation has stated that it cannot accommodate this due to equity issues with other operators.
According to industry sources on the 1st, during the rent adjustment hearing held the previous day at the Incheon District Court, the duty-free industry and the Incheon International Airport Corporation merely reaffirmed their differences in stance. The corporation has reportedly expressed in advance its position that it cannot accept the adjustment proposal due to unmet requirements for rent reduction and equity issues with other operators. The next adjustment hearing is scheduled for August 14, but it is known that the corporation intends to maintain its policy of not attending.
The Incheon Airport's duty-free shops transitioned from a fixed rent system to one linked to passenger numbers after COVID-19. However, profitability has sharply deteriorated as passenger demand has not met expectations.
Sales recovery is also being delayed due to a decrease in Chinese group tourists, a reduction in demand from so-called 'daigong' (baggage carriers), and a shift towards individual consumer preferences. For the year 2024, Shin Ramyun Duty Free and Shinsegae Duty Free recorded operating losses of 69.7 billion won and 35.9 billion won, respectively.
Unlike major overseas airports that flexibly adjust rental conditions due to changes in the business environment, the Incheon International Airport Corporation has effectively blocked negotiation opportunities.
Thailand's Airports of Thailand (AOT) is considering renegotiating with duty-free shop operators, while Singapore's Changi Airport and Hong Kong International Airport are responding flexibly by adjusting rents to be linked to sales or lowering conditions upon contract renewal.
There are concerns that if the conflict between Incheon Airport and the duty-free industry becomes prolonged, it could negatively affect the overall operation and competitiveness of duty-free shops in the future. An official from a duty-free business stated, "I hope Incheon Airport will establish sustainable solutions like other overseas airports."