LVMH to operate at Shilla I'Park duty-free shop

Shilla I’Park Duty Free has become the first of last year’s newly-licensed duty-free stores in Korea to house the world’s largest luxury goods maker LVMH Moet-Hennessy Louis Vuitton, according to Hotel Shilla Tuesday.

The two companies recently agreed to launch 20 LVMH-owned brands, including Louis Vuitton, Dior, Bvlgari, Tag Heuer, Givenchy and Marc Jacobs, at the Shilla I’Park Duty Free store in Hyundai I’Park Mall in Yongsan.

The store’s operator HDC Shilla Duty Free — a fifty-fifty joint venture between Hotel Shilla and Hyundai Development — will begin constructing and setting up the new brand shops in the coming months, with plans to open all the shops by March 2017.

Shilla’s success in getting LVMH to join its new duty-free store was largely spearheaded by president and CEO of Hotel Shilla Lee Boo-jin, who is also the daughter of Samsung Group chairman Lee Kun-hee.

Lee played a pivotal role in convincing LVMH chairman Bernard Arnault of HDC Shilla Duty Free’s exclusive locational benefits and high growth potential, according to Hotel Shilla. Arnault was in Seoul last month to participate in a luxury conference.

“As the very first among the newly-launched duty-free stores to secure participation from LVMH, HDC Shilla Duty Free will continue to offer our consumers more diverse products and the best services,” a Hotel Shilla spokesperson told The Korea Herald.

Last year, five new duty-free operators, including HDC Shilla, won licenses to open new tax-free outlets in Seoul. Since then, they have engaged in a fierce competition to bring in global luxury houses like LVMH to their new shops.

The operation of big-name luxury brands is crucial for Korean duty-free businesses as they are key to attracting big, high-end spenders at home and abroad.

“HDC Shilla Duty Free hopes that other famous luxury brands such as Prada, Gucci, Hermes and Chanel will consider joining,” the Hotel Shilla representative said.

By Sohn Ji-young (jys@heraldcorp.com)