Shinsegae Duty Free said on the 30th that it will return the business license for the DF2 zone (cosmetics, perfume, liquor, tobacco) at Incheon Airport duty-free shops.
Shinsegae, the parent company of Shinsegae DF, which operates Shinsegae Duty Free, disclosed that its board of directors met that day and decided to return the business license for the Incheon Airport duty-free DF2 zone.
Incheon Airport's DF2 zone sells cosmetics, perfume, liquor, and tobacco across 4,709 square meters spanning Terminal 1 and Terminal 2. It is scheduled to operate until Apr. 27, 2026.
Shinsegae Duty Free said, "The duty-free market continues to face negative and unpredictable conditions, including a strong dollar, an economic slowdown, reduced purchasing power among core customers, and changing consumption patterns," adding, "While we worked to raise average transaction value, our request for a rent reduction at Incheon Airport was not accepted."
It added, "Continuing operations would result in losses that are too great, so we inevitably decided to return the business license for the DF2 zone at the Incheon Airport duty-free shops."
Shinsegae Duty Free said it plans to "focus resources on the Myeong-dong downtown duty-free store and DF4 (fashion and accessories) to improve the fundamentals of the duty-free business."
Earlier, Hotel Shilla, which operates The Shilla Duty Free, returned the business license for the DF1 (cosmetics and perfume) zone at Incheon Airport duty-free shops last month. The Shilla Duty Free will operate in that zone until Mar. 17 next year and then withdraw.
At the time, Hotel Shilla said, "Losses are too great to continue operating at Incheon Airport," adding, "The company, judging that it needs to improve its financial structure and enhance corporate and shareholder value, inevitably decided to return the business license for the DF1 zone at the Incheon Airport duty-free shops."