Incheon Airport Establishes Exclusive Duty-Free Business License for Small and Medium-Sized Enterprise Products

Exterior view of the Incheon Airport I'm Shopping T2 store, previously operated as a consignment store

[Asia Economy Reporter Dongwoo Lee] Incheon International Airport Corporation announced on the 21st that it will establish a dedicated duty-free business license for small and medium-sized enterprise (SME) products at Incheon Airport. The Small and Medium Business Distribution Center, which operates the I'm Shopping store, has been selected as the new operator.

I'm Shopping is a dedicated sales outlet for SME products under the Act on Promotion of Purchase of SME Products and Support for Distribution Channels, operating at Incheon Airport duty-free shops, KTX stations, and other locations.

Until now, the store had been operated as three locations under sublease from SME and mid-sized duty-free operators City Duty Free and SM Duty Free at Incheon Airport. Recently, following the end of City Duty Free's contract and delays in selecting a successor operator, as well as SM Duty Free's withdrawal from the duty-free business, the store operations were completely suspended.

The corporation created a separate duty-free business license exclusively for SME products and assigned direct operation to the Small and Medium Business Distribution Center. This plan aims to open sales channels for SMEs weakened by COVID-19, actively utilize the platform space to discover promising SME products, and support their overseas expansion and growth.

The number of stores remains three as before, but the store area has been expanded more than 2.5 times from just 197㎡ to 510㎡. A hands-on experience zone has been created where airport users can freely try digital new technology products and various SME idea products.

The rent is set at only 10% of sales, allowing SMEs to operate without the burden of high rental fees. The contract period is up to 10 years, the same as other duty-free business licenses.

To achieve this outcome, government ministries including the Ministry of Land, Infrastructure and Transport, the Ministry of SMEs and Startups, and the Korea Customs Service actively cooperated to establish a "robust growth environment for SMEs," a key national agenda.

The corporation plans to negotiate the business execution plan with the Small and Medium Business Distribution Center and conclude a private contract. After the Korea Customs Service completes the license examination, store construction will begin, with plans to open the stores within this year.

Kim Kyung-wook, President of Incheon International Airport Corporation, stated, “Incheon Airport is actively building a people-centered business model that fulfills social responsibility. Through the dedicated duty-free business license for SME products, it will serve as a win-win platform that supports the growth of promising SMEs full of ideas and passion, and as a cornerstone that strengthens the foundation of the national economy.”