Hyundai Myeon, Dongdaemun Branch Closure and Trade Center Branch Downsizing... "Operational Efficiency"

Dongdaemun Branch to Close by End of July
Trade Center Branch to Reduce from Three Floors to Two
Transition of Employees to Customer-Facing Roles and Promotion of Voluntary Retirement

Hyundai Duty Free has decided to close its Dongdaemun branch to streamline the operation of its downtown duty-free stores. The Trade Center branch will also reduce its store size.

Visitors are entering the Hyundai Department Store Duty Free Shop Trade Center branch in Gangnam-gu, Seoul. Photo by Kim Hyun-min

On the 1st, Hyundai Duty Free announced that it will implement a management efficiency strategy for its downtown duty-free stores. A Hyundai Duty Free representative stated, "Despite numerous crises since the company's establishment, we have done our best with hopes for market recovery, but the domestic and international business environment is deteriorating due to changes in the Chinese market and consumer trends," adding, "After much deliberation, we decided to pursue management efficiency to overcome the overall crisis in the duty-free industry, improve business conditions, and eliminate deficits."

Accordingly, considering the stability of future business operations, MD (Merchandiser) competitiveness, and market trends comprehensively, the Dongdaemun branch will be closed by the end of July this year. Additionally, the Trade Center branch will reduce its operation from three floors (8th to 10th floors) to two floors (8th and 9th floors). The company plans to focus all its capabilities on the Trade Center and Incheon Airport branches to overcome the current crisis and turn it into an opportunity for a new leap forward.

Organizational efficiency measures will also be implemented. Considering that changes in organizational and personnel operation structures are inevitable due to the downtown duty-free store efficiency measures, the company plans to reassign employees to customer-facing roles to stabilize employment. Furthermore, voluntary retirement programs will be promoted to enhance organizational productivity.

A Hyundai Duty Free official emphasized, "This management efficiency initiative is an unavoidable choice to normalize business amid the crisis affecting the entire duty-free industry and to promote future growth," adding, "We will do our best to ensure transparent and stable business normalization."