Government to discuss duty free shops at arrival gates

The government will discuss this week whether to open duty free shops at airport arrival gates as part of efforts to boost consumption, according to government sources on Sunday.

Discussions on opening duty free shops in the arrivals zone at Incheon International Airport will be one of the key agenda items for a meeting between Cheong Wa Dae and financial authorities on Tuesday, the sources said.

The talks on the issue started in 2001 when the airport opened, but policymakers failed to reach an agreement due to their different stances on the issue.

Cheong Wa Dae and the Ministry of Construction, Infrastructure and Transport, which is responsible for transport policy, supported the opening of duty free shops in the arrivals zone, saying it would spur consumption and raise the global competitiveness of the airport.

The Transport Ministry has said running duty free shops for incoming travelers is a global trend and would increase the number of foreign visitors. According to the ministry, 117 airports in 63 countries operate duty free shops in the arrivals area.

The Ministry of Future Planning and Science and the Korea Customs Service have opposed it, however, claiming that it was unfair to offer tax benefits to arriving passengers, the majority of whom are taxpayers living in Korea. In 2011, domestic consumers took up 49.6 percent of the combined sales of local duty free shops, which came to 5.3 trillion won ($4.8 billion), according to the customs agency.

The customs agency also raised concerns over the adverse impact of duty free shops on airport security and an increase in smuggled goods.

The government is to decide whether to allow the new duty free shops shortly after the meeting between the presidential office and financial authorities, sources added.

By Seo Jee-yeon (jyseo@heraldcorp.com)