Shinsegae duty-free outlet at Incheon International Airport’s DF2 zone. (Image courtesy of Shinsegae)
SEOUL, Oct. 30 (Korea Bizwire) – South Korean retail group Shinsegae Inc. said Thursday its duty-free business unit will withdraw from Incheon International Airport’s DF2 zone due to mounting losses.
Shinsegae, operator of South Korea’s second-largest department store chain, made the decision in order to improve operational efficiency in its duty-free business amid deepening losses, the company said in a press release.
Shinsegae DF Inc. will terminate operations in the DF2 zone, which covers cosmetics, perfumes, liquor and tobacco, by April 27, 2026, while its duty-free shops in the airport’s DF4 zone will remain open, the release said.
“The duty-free market continues to face negative and unpredictable conditions, including high exchange rates, an economic slowdown and weaker spending among core customers,” a Shinsegae official said. “The company requested rent adjustments from Incheon International Airport Corp. (IIAC), but the airport authority rejected the request.”
Following the planned closure of its outlet in the DF2 zone, Shinsegae DF said it will focus on its remaining operations in the airport’s DF4 zone and its downtown store in Myeongdong, central Seoul.
Last month, Hotel Shilla Co. returned its DF1 zone license to the airport, also citing its accumulating losses.
The IIAC is expected to open a new bidding process for the DF1 zone license returned by Shilla Duty Free later this year.
(Yonhap)
