Abolition of Purchase Limits and Quarantine Exemption for Overseas Arrivals... Exciting Times for the Duty-Free Industry

Newly renovated Lotte Duty Free Downtown Store.

[Asia Economy Reporter Jeon Jinyoung] The government’s decision to abolish the domestic duty-free purchase limit and exempt vaccinated overseas arrivals from self-quarantine has raised high expectations in the retail industry.

According to the industry on the 18th, the domestic duty-free purchase limit set at $5,000 was abolished starting that day. Korean nationals traveling abroad can now purchase goods at duty-free shops without any limit.

In response, the duty-free industry has begun efforts to attract domestic customers. Lotte Duty Free is holding large-scale giveaways and discount events until May 1. Domestic customers who purchase over $5,000 will receive payment points worth up to 960,000 KRW, which can be used like cash.

Shinsegae Duty Free offers VIP members the same benefits as department stores. They provide benefits such as 7% department store mileage up to a limit of 2 million KRW, free parking for 3 hours, and other perks available to Shinsegae Department Store BLACK members.

The duty-free industry is also actively preparing to welcome tourists entering the country due to the self-quarantine exemption for overseas arrivals. Shinsegae Duty Free has strengthened its lineup by introducing fashion brands LifeWork and Big Wave Collective at its main store. Lotte Duty Free renovated its downtown store with graphics featuring six types of hot air balloons, and Hyundai Department Store Duty Free opened Korea’s first Olive Young section at its Dongdaemun branch on the 15th, installing a studio for live broadcasts by influencers including Wanghong.

A duty-free industry official said, "We hope the sales structure that relied on Chinese daigou during COVID-19 will be resolved," adding, "The industry plans to try various changes such as expanding MD in line with this measure."

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