Incheon Gong Myeon Duty-Free Shop Rebid Fails Again... All 6 Zones Unsold (Comprehensive)

Lotte and Shinsegae Duty-Free Shops Participated but
Failed to Meet Multiple Competitive Bidding Conditions... Final Failure
Shilla and Hyundai Department Store Duty-Free Shops Did Not Participate at All

On the 18th, the duty-free shop at Terminal 1 of Incheon International Airport was quiet due to the impact of the novel coronavirus (COVID-19). Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Cha Min-young] The re-bidding for the selection of new operators for the 4th phase duty-free shops at Incheon International Airport Terminal 1 (T1) has once again failed. As the duty-free industry continues to deteriorate due to the COVID-19 pandemic, companies are taking cautious steps.

According to the duty-free industry on the 22nd, all six zones announced for this re-bidding were unsuccessful. The bidding targets were 33 stores across six business rights that failed in the first bidding held in January: the large corporation business rights DF2 (perfume & cosmetics), 3 (liquor & tobacco), 4 (liquor & tobacco), 6 (fashion & others), and the small and medium-sized enterprise business rights DF8 and 9 (all product categories).

Among the large corporation duty-free shops, Lotte Duty Free and Shinsegae Duty Free participated in the re-bidding, but the multiple competitive bidding condition for Incheon Airport duty-free shops was not met, resulting in the final failure. It was confirmed that Lotte Duty Free applied for two zones including DF3 and 4. Shinsegae Duty Free applied for one zone, DF6.

It was reported that no one participated again in the highly competitive DF2 zone. A duty-free industry insider hinted, "The relatively high rent seems to be a decisive factor."

Shilla Duty Free and Hyundai Department Store Duty Free did not submit price proposals and did not participate in this re-bidding at all.

Shilla Duty Free stated, "As the COVID-19 situation has prolonged, increasing uncertainty, we decided after careful consideration not to participate in this re-bidding for Incheon Airport Terminal 1," adding, "We will focus on strengthening our fundamentals rather than expanding externally and pursue stable management."

Hyundai Department Store Duty Free also said, "We opened our second downtown duty-free store in Dongdaemun this year and entered the Incheon International Airport duty-free market, laying the foundation for growth in the duty-free business," adding, "According to our mid- to long-term business strategy, we will focus on stabilizing new stores for the time being and will closely watch upcoming bids such as for Incheon International Airport Terminal 2 (T2) duty-free shops."

Meanwhile, all business zones in the small and medium-sized enterprise duty-free areas DF8 and 9 were also unsuccessful. A representative from a small duty-free company said, "Some expressed interest in certain zones, but since the competitive bidding conditions were not met, all were ultimately unsuccessful."