Lotte and Hyundai Duty Free have been selected as the operators for the DF1 (perfume and cosmetics) and DF2 (liquor and tobacco) duty-free zones at Incheon International Airport's Terminal 1 and Terminal 2.
The Korea Customs Service said on the 26th afternoon that its patent screening committee selected Lotte Duty Free as the successful bidder for the Incheon Airport DF1 zone and Hyundai Duty Free for the DF2 zone. The business period is about seven years from the opening date through June 30, 2033, and the contract can be renewed for up to 10 years.
Lotte Duty Free will return to Incheon Airport for the first time in about three years since it ended operations of the liquor and tobacco store at Terminal 2 in June 2023. The DF1 zone totals 4,094㎡ and consists of 15 stores. Lotte Duty Free expects the operation of the zone to boost annual sales by more than 600 billion won.
A Lotte Duty Free official said, "We plan to carry out a thorough handover in line with future construction guidelines to minimize inconvenience to passengers," adding, "After opening, we will build a pleasant customer flow through sequential renovations and attract a variety of brands and products."
Hyundai Duty Free, which already operates the DF5 and DF7 zones handling boutiques (luxury), fashion, and accessories, has secured the DF2 zone as well, becoming an operator that covers all categories at Incheon Airport. DF2 spans 4,571㎡ and consists of 14 stores. Hyundai Duty Free expects its annual sales at Incheon Airport to reach about 1.1 trillion won.
The zones awarded to Lotte and Hyundai Duty Free this time are those where the previous operators, Hotel Shilla and Shinsegae Duty Free, returned their business rights, citing deteriorating profitability due to rent burdens. Only Lotte and Hyundai Duty Free participated in the re-bidding held early this year, while Shilla and Shinsegae Duty Free did not participate.