Lotte Duty Free and City Duty Free Sign Win-Win Cooperation Agreement

Coexistence with Small and Medium Duty-Free Shops
Attracting Brands and Transferring Products
Supporting Joint Marketing Activities

Lotte Duty Free will sign a 'Business Agreement (MOU) for Win-win Cooperation between Small and Medium-sized Duty-Free Shops and Large Corporations' with City Duty Free to promote mutual growth with small and medium-sized duty-free shops.

On the afternoon of the 16th, Lotte Duty Free plans to hold a business agreement ceremony with City Plus, the operator of City Duty Free, at the Lotte Duty Free headquarters in Jung-gu, Seoul. Kim Joo-nam, CEO of Lotte Duty Free, and Hong Joo-pyo, CEO of City Duty Free, will attend the ceremony representing their respective companies. Lotte Duty Free and City Duty Free intend to cooperate to attract customers and normalize duty-free shops in response to the recovery of overseas travel demand.

Based on this business agreement, Lotte Duty Free will support the stable operation of City Duty Free. Currently, City Duty Free holds the duty-free business rights for two locations in Korea: Incheon Airport Terminal 2 and Muan Airport. Lotte Duty Free will assist small and medium-sized duty-free shops in increasing their negotiation power with major brands by providing product supply consulting and brand attraction support, and will help with the transfer of goods by sharing experiences related to warehouse management, product receipt and inspection, and inventory management. Joint marketing activities to attract customers and employee service training will also be supported.

Kim Joo-nam, CEO of Lotte Duty Free, stated, "Co-prosperity with small and medium-sized duty-free shops is the way for the Korean duty-free industry to grow together. Since the duty-free industry has endured a difficult period due to the prolonged COVID-19 pandemic, Lotte Duty Free will spare no effort to provide various support so that small and medium-sized duty-free shops can overcome the crisis and develop together," emphasizing the significance of this business agreement.

Lotte Duty Free has previously signed business agreements and cooperated with small and medium-sized duty-free shops such as Jungwon Duty Free to enhance their capabilities. To support partner companies with low-interest financing, it operates a 50 billion KRW-scale win-win cooperation fund and has worked to open sales channels by supporting the overseas joint expansion of domestic small and medium-sized enterprises through Lotte Duty Free's 13 overseas stores. Through these efforts, it received the 'WE (Win-win Excellent) Duty-Free Shop' certification awarded by Seoul Customs in 2021 and 2022.