[
THE INVESTOR] As the deadline for submitting bids for four additional downtown duty-free stores draws near, potential bidders are readying themselves more resolutely than ever.
Four licenses will be granted by the Korea Customs Service, three for conglomerates and one for a small and medium enterprise.
Duty-free stores have been a cash cow for many operators amid the rising influx of Chinese tourists, with total revenue of the outlets reaching US$967.94 million in August alone, according to Korea Duty Free Association on Sept. 27.
With only six days left to submit bids, the tension is rising. All candidates are committed but Lotte and
SK Networks are probably the most determined as they lost the license to operate their duty-free stores at World Tower and at Sheraton hotel, respectively, in November 2015.
Lotte’s Jamsil branch is said to be the strongest candidate, according to industry sources. It posted 611.2 billion won (US$556.95 million) revenue in 2015, up 26.8 percent on-year, and had the largest number of foreign visitors.
SK Networks vowed to get back the license, emphasizing that its store is the only one in the country that combines a resort in an urban setting and has attracted Chinese tourists who are the major customers.
Han Yin-gyu, president of Hotel Shilla’s duty-free division, confirmed that HDC Shilla Duty Free will participate in the bid on Sept. 28.
Department store giants
Hyundai and
Shinsegae are also set to join the race, with their stores in southern Seoul as possible candidates.
By Hwang You-mee (
glamazon@heraldcorp.com)
