Food and Beverage Vendors Appeal Over Incheon Airport Power Abuse: "1,120 Staff Unable to Work"

Food and Beverage Business Association Appeals to Hong Nam-ki, Minister of Economy and Finance

Request for Rent Exemption Until Utilization Rates Normalize

Designation of Incheon Airport as an Employment Crisis Area

Terminal 2 of Incheon International Airport is quiet on the 8th. On this day, Prime Minister Chung Sye-kyun announced at the Central Disaster and Safety Countermeasures Headquarters (CDSCHQ) meeting held at the Government Sejong Complex regarding the response to the novel coronavirus infection (COVID-19), "We will temporarily suspend visa exemptions and visa-free entry for countries that have banned the entry of our citizens, and expand restrictions on the entry of foreigners for non-essential purposes." / Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Lim Hye-sun] Following duty-free shops, food and beverage businesses have also requested rent exemptions at Incheon International Airport. Due to the impact of the novel coronavirus (COVID-19), air travel demand has dropped by more than 90% compared to the previous year, causing a sharp decline in customers using food and beverage facilities.

According to industry sources on the 9th, the Incheon Airport Food and Beverage Business Association delivered an appeal letter to Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki earlier this month, seeking revival measures. The association includes seven companies: Ourhome, Pulmuone Food & Culture, Paris Baguette, Amoje Food, CJ Foodville, SK Networks Walkerhill, and Lotte GRX.

The association explained the background of submitting the appeal letter, stating, "We are facing an unprecedented threat to survival due to the drastic decrease in air travel demand. On the 11th and 24th of last month, we sent official letters to Incheon Airport requesting measures for the revival of food and beverage businesses, but have yet to receive any concrete response." According to the association, total sales from all food and beverage business rights over the past month amounted to only 6 billion KRW, while rent exceeds 7 billion KRW. After paying rent, losses exceed 10 billion KRW, and even if rent were fully waived, after deducting other expenses, losses would still be around 3 billion KRW.

Stores that have already found normal operations difficult number about 190 out of approximately 200 stores, with around 130 operating on reduced hours and about 60 temporarily closed, reaching nearly 90% of all stores. The association lamented, "Some stores are even planning to close," adding, "Operating with reduced staff has become inevitable, and currently, 43% of the 2,620 employees are unable to work."

Additionally, the association criticized Incheon Airport's support measures as unfair. They argued that Incheon Airport's benefits focus solely on small business owners and SMEs based on government policies aimed at restoring damage to small businesses and SMEs, while neglecting sectors that generate more employment and have greater economic ripple effects.

The association emphasized, "All businesses are suffering equally due to COVID-19 and are making efforts together, so these unfair measures are unacceptable. For government policies to contribute to coexistence and mutual prosperity, urgent measures must be implemented to alleviate the concerns of all tenant businesses as soon as possible."

The association stated, "Rent should be exempted until customer utilization rates at the airport return to normal, and Incheon Airport should be designated as an employment crisis area."