Incheon Airport Corporation Signs 'Overcoming COVID-19 Crisis' Agreement with 3 Duty-Free Companies

Construction Implements Rent Reduction Measures Up to 360 Billion Won
Full Effort to Maintain Employment at Duty-Free Shops

[Asia Economy Reporter Yoo Je-hoon] Incheon International Airport Corporation announced on the 2nd that it has signed a "Business Agreement for Overcoming the COVID-19 Crisis and Promoting Mutual Cooperation" with the three major duty-free companies operating at Incheon Airport.

This agreement was made with the purpose of mutual cooperation to overcome the crisis in the airport industry caused by the spread of the novel coronavirus infection (COVID-19). About 20 officials attended the signing ceremony, including Koo Bon-hwan, President of the Corporation, Son Young-sik, CEO of Shinsegae DF, Han In-kyu, President of Hotel Shilla, and Lee Gap, CEO of Hotel Lotte.

Through this agreement, the Corporation and the three duty-free companies will jointly promote ▲ faithful implementation of the government's support measures for airport commercial facility rents ▲ efforts to stabilize employment of duty-free operators ▲ and joint efforts from both sides to recover future air travel demand.

The Corporation has continuously requested the government to expand support for airport commercial facilities. As a result, rent support has been expanded, increasing the total amount of rent reductions to a maximum of 360 billion KRW. For small and medium-sized enterprises and small business stores, the rent reduction rate has increased from the previous 50% to 75%, and for medium and large enterprises, from 20% to 50%.

Additionally, the rent payment deferral period, which was previously three months, has been extended to six months, and the late payment penalty, which was 15.6% when rent was overdue, will be reduced to 5% for up to six months after the deferral period ends. The application period for these support measures is retroactive from March and will last for six months until August.

Furthermore, the Corporation has agreed to accept the opinions of duty-free operators regarding the clause on rent reduction linked to passenger volume for next year, which had been a subject of controversy.

Based on this agreement containing such support measures, duty-free operators also plan to make efforts to maintain employment at their business sites.

President Koo said, "Although the Corporation is facing difficulties, including expecting a deficit for the first time in 17 years due to the unprecedented crisis caused by COVID-19, we plan to achieve both the mutual growth and coexistence of the Corporation and the airport industry ecosystem through this expanded support." He added, "If the members of the airport industry ecosystem unite to wisely overcome the current crisis, I am confident that the airport industry ecosystem in South Korea, including Incheon Airport, will establish a desirable role model leading the post-COVID-19 era."

Meanwhile, starting with the signing of the agreement with the three duty-free companies, the Corporation plans to sign mutual cooperation agreements with 48 commercial facility operators, including food and beverage stores, located at Incheon Airport in the future.

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