"Incheon Airport Duty-Free Battle Breaks Through COVID-19, 4 Small and Medium Enterprises Join"

Bid Deadline for Incheon Airport T1 Duty-Free Concession on 26th
Three Concessions Including DF8, 9, 10 Contested
Existing Companies Compete to Retain vs Acquire Rights

[Asia Economy Reporter Cha Min-young] It was revealed on the 26th that four small and medium-sized duty-free shops participated in the bidding for the duty-free business rights at the departure hall of Terminal 1 (T1) of Incheon International Airport.

The main companies participating in this bid were Grand Tourist Hotel, SM Duty Free, Entas Duty Free, and City Plus.

The business rights up for bid include three areas: DF8 (all items), DF9 (all items), and DF10 (liquor, tobacco, food). The number of stores is 5, 5, and 1 respectively, totaling 11 stores. Currently, DF8, DF9, and DF10 are operated by SM Duty Free, City Plus, and Grand Tourist Hotel, respectively.

The companies that expressed their intention to participate must submit their business proposals, including duty-free store operation plans, and price bids by the 27th. Afterwards, they will undergo a presentation (PT) evaluation by Incheon Airport Corporation.

Incheon Airport Corporation evaluates product and brand composition, service and marketing, store layout and design, and bid price. Afterward, once the contractor receives patent review approval from the Korea Customs Service, they are confirmed as the final operator. The confirmed operator can run the duty-free shops for five years and, if meeting evaluation criteria, can extend for an additional five years, operating for up to 10 years in total.

Although difficulties were anticipated due to recent issues such as COVID-19 and the burden of Incheon Airport rent, industry consensus suggests that the effect of expanded buying power cannot be ignored.

However, all parties remained confidential regarding overlapping participation in the bidding rights or pricing. Some showed cautious attitudes, stating that further discussions with the corporation are necessary.

The CEO of Duty Free Shop A, which participated in the bid, said, "Although COVID-19 issues and sluggish downtown duty-free store operations may pose burdens, it is hard to give up the merit of operating for up to 10 years under the 5+5 operation condition," adding, "We believe that the advantage of increasing buying power by entering Incheon Airport outweighs the disadvantages."

This content was produced with the assistance of AI translation services.