Lotte Hotel and Hyundai DF Selected as New Duty-Free Operators at Incheon Airport (Comprehensive)

The Korea Customs Service has selected Lotte Duty Free and Hyundai Duty Free as the new operators of the duty-free shops in the departure area of Incheon Airport.

The Patent Screening Committee for Bonded Stores of the Korea Customs Service held a meeting on the 26th and announced the results of the review for new duty-free shop licenses in the departure area of Incheon International Airport. As a result of the screening, Lotte Duty Free will operate the DF1 zone, and Hyundai Duty Free will operate the DF2 zone.

The two selected companies are reported to have received high marks in areas such as bonded cargo management systems and regulatory compliance.

Lotte Duty Free will resume operations at Incheon Airport about 2 years and 9 months after it closed its liquor and tobacco store in Terminal 2 on June 30, 2023. In principle, it should start operations after March 17, when the existing operator, Shilla Duty Free, withdraws. However, due to delays in the operator selection process, a certain period is expected to be needed before the actual opening.

Interior photo of Incheon International Airport

Lotte Duty Free, which has long been criticized for the absence of a store at Incheon Airport, is now seen as having secured an opportunity to regain growth momentum through this successful bid. After opening, the company plans to improve customer flow through phased renovations and to expand its brands and product lineups in line with demand from both Korean and foreign departing passengers.

Hyundai Duty Free, which secured the DF2 zone, has expanded its product categories beyond its existing luxury, fashion, and accessories to include cosmetics, perfumes, liquor, and tobacco, thereby becoming an operator covering all categories. As a result, it has become the only operator at Incheon Airport duty-free shops to run a full-category business. In addition, Hyundai Duty Free now operates a total of three zones, making it the operator with the largest number of zones, and based on this, it expects to become the top revenue-generating operator at Incheon Airport by recording annual sales of more than 1.1 trillion won.