Hanwha decides to return Jeju duty-free license

Hanwha’s Galleria Duty Free said through a disclosure Monday that it will be returning its license to operate a duty-free outlet at Jeju International Airport, ceasing its operations there on Aug. 31.

“We asked Korea Airports Corp. repeatedly to lower the rent costs at Jeju Airport temporarily, but in the end decided to close down our operations there,” a spokesman for Hanwha Galleria said. 

Hanwha’s five-year license at Jeju Airport was valid until April 2019.

The outlet at Jeju Airport had been suffering continuous losses as the number of Chinese tourists to the island plummeted following an intergovernmental dispute over the installment of an American missile shield in Korea.

According to the spokesman, the tender to take over Hanwha’s stores at the airport may open as early as this week. Industry watchers say it is likely that Lotte Duty Free, Korea’s largest duty-free firm, will be the next operator. 

Meanwhile, Hanwha will continue to operate the Galleria Duty Free downtown outlet at the 63 Building in Seoul.

By Won Ho-jung (hjwon@heraldcorp.com)