SM Myeonsejeom Finally Gives Up Bidding for Incheon Airport Duty-Free Business Rights

On the 5th, when the Ministry of Land, Infrastructure and Transport and Incheon International Airport Corporation announced the pilot introduction of a 'three-step quarantine network' in the passenger departure process from arrival at Incheon Airport to boarding the aircraft in response to the spread of COVID-19, the departure hall of Terminal 1 at Incheon International Airport was less crowded than usual. Photo by Moon Honam munonam@

[Asia Economy Reporter Seungjin Lee] SM Duty Free (SM Myeonsejeom) has ultimately given up bidding for the duty-free business rights at Incheon International Airport Terminal 1 (T1) due to high rent and the impact of the novel coronavirus (COVID-19).

On the 5th, SM Duty Free stated, "After reconsidering the bid, we have decided to withdraw because we judged that the high rent at Incheon Airport, exclusion from COVID-19 support, and the aftereffects of worsening business conditions would increase."

SM Duty Free emphasized, "Since being selected as the first small and medium-sized enterprise at Incheon Airport in 2015, we have grown significantly over five years. Even during the MERS and THAAD impacts, we expanded our business based on foreign demand and domestic tourists centered on our parent company, striving to create jobs and increase sales."

They further explained, "Given the current situation where there are virtually no arrivals or departures, and the limited support policies from Incheon Airport Corporation and the government, our company, which started as a small business and grew into a mid-sized enterprise in 2019, concluded that this bid is ultimately difficult."

SM Duty Free added, "In the social disaster that appears to be a natural calamity, exclusion from government support confirms that our priority is to prevent ongoing difficulties in the currently operated business areas rather than succeeding in the bid. Therefore, we are withdrawing from the ongoing bidding process."

They also urged Incheon Airport to reduce rent. SM Duty Free said, "Although we regret giving up the bid, due to the impact of COVID-19, we have been seeking self-help measures such as a three-day workweek, executive salary returns, and weekend closures at the Seoul branch, but we judged that the current situation will continue. We hereby request the government and Incheon Airport Corporation to reconsider rent adjustments for Incheon Airport Terminals 1 and 2 and the arrival duty-free shops."

Meanwhile, on the 27th of last month, the Ministry of Economy and Finance announced a ‘Comprehensive Plan for Minimizing the Impact of COVID-19 and Early Recovery of Livelihood and Economy.’ It included a provision to reduce rent by 25-30% for six months for tenants in 103 public institutions operating rental facilities, including Incheon International Airport Corporation.

In relation to this, on the 2nd, Incheon Airport Corporation judged that the 'Public Institution Rent Support Plan' from the Ministry of Economy and Finance applied only to small business owners and small and medium-sized enterprise tenants, and mid-sized companies like SM Duty Free became ineligible for rent reductions.

SM Duty Free participated in the bid for the DF9 (all items) zone among three small and medium-sized duty-free business zones on the 27th of last month but ultimately withdrew.

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