Only one offer was found to recruit five new businesses in downtown duty free shops. This is the first time a tax-free patent offer has taken place. The Korean Customs Service announced on May 14 that only one tax-free shop of the Hyundai Department Store participated in Seoul as a result of the recruitment of five new downtown tax-free companies, including three Seoul, one Incheon and one Gwangju. Compared to Lotte, Shinsegae, Shilla Duty Free, etc., the Big Three, which participated in the bidding for duty free patents in central 2016, the market was frozen in three years. The licensee is finally decided at the Patent Examination Committee, held later this month.
This underperformance was due to the bloody competition caused by the large government granting of commercial rights since 2015, which severely deteriorated the profitability of duty-free shops. In September, Hanwha Galleria returned its downtown free shop license and decided to withdraw its free shop business in downtown Doosan last month. After entering the tax-free business in 2015, both companies reported deficits of about KRW60 billion to KRW100 billion in three years. An official at the Ministry of Strategy and Finance said: "The government only reduces barriers to entry into the tax-free sector, like other sectors, such as department stores, so that companies can do business."
Sejong = Reporter Joo Aejin email@example.com
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