Lotte and Hyundai Duty Free are expected to each win one site in the re-bidding for Incheon Airport duty-free shops. Lotte withdrew from Incheon Airport duty-free shops in 2023 and is returning after about three years.
According to Incheon International Airport Corporation (IIAC) on the 30th, Hyundai Duty Free and Hotel Lotte were selected as eligible operators for the new DF1 and DF2 zones, which sell perfume and cosmetics, and liquor and tobacco. Lotte will operate DF1, spanning 4,094 square meters across 15 stores, and Hyundai will operate DF2, spanning 4,571 square meters across 14 stores.
In this bid, the minimum acceptable per-passenger rent proposed by the corporation was 5,031 won for DF1 and 4,994 won for DF2 (including VAT). Lotte offered 5,345 won for DF1, 6.2% higher, and Hyundai bid 5,394 won for DF2, 8.0% higher.
The contract period is about seven years, from the opening date this year (July 1) to June 30, 2033. Depending on operating performance, it can be extended up to 10 years. After conducting a license review of the selected operators, the Korea Customs Service will notify the corporation of the final winners.
The zones to be filled by Lotte and Hyundai Duty Free are the areas that Shilla and Shinsegae Duty Free exited mid-contract last year. Shilla and Shinsegae Duty Free clashed with the corporation over profitability deteriorating due to high rent and eventually returned the business rights.
Only Lotte and Hyundai Duty Free participated in the re-bid held on the 20th. Shilla, Shinsegae Duty Free, and overseas candidates Avolta (formerly Dufry) of Switzerland and China Duty Free Group (CDFG) all did not participate.