Hyundai Duty Free Launches Operations in Incheon Airport DF2 Zone, Expects Annual Sales of 1 Trillion Won

Hyundai Department Store Duty Free, operated by Hyundai DF, announced on April 28 that it has begun business operations in the DF2 area (cosmetics, perfumes, liquor, and tobacco) at Incheon International Airport.

This store is located in an area where the previous operator, Shinsegae Duty Free, returned the business rights due to factors such as the burden of rent. Following its entry into the DF5 and DF7 areas (luxury goods, fashion, and accessories), Hyundai Department Store Duty Free has expanded its categories to include highly profitable cosmetics and liquor, becoming the only full-category operator at Incheon Airport. The company’s strategy is to simultaneously enhance business competitiveness and improve profitability through this move.

Hyundai Department Store Duty Free, Incheon International Airport Duty Free Zone 2. Provided by Hyundai Department Store

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The newly opened DF2 area covers 4,571 square meters (approximately 1,382 pyeong), and houses a total of 287 brands, including cosmetics and perfume brands such as Chanel Beauty, Dior, Yves Saint Laurent, and Est?e Lauder, as well as liquor, tobacco, and food brands like Ballantine’s, Johnnie Walker, Hennessy, Balvenie, KT&G, and CheongKwanJang. The concession period runs for about seven years from the opening date, until June 30, 2033. With a three-year extension, operations can continue for up to ten years until April 27, 2036.

The Hyundai Department Store Duty Free locations at Incheon Airport Terminals 1 and 2 operate year-round from 6:30 a.m. to 9:30 p.m. Some cosmetics, liquor, and tobacco stores are open 24 hours a day.

Hyundai Department Store Duty Free plans to maximize luxury shopping demand by leveraging its strong portfolio of luxury brands at Incheon International Airport and strengthening its merchandising of global luxury beauty brands and premium whiskies and wines, focusing on ultra-high-priced and limited-edition products. In addition, in response to the recent sharp increase in sales to foreign customers, the company intends to place K-content-such as K-beauty, K-food, and K-culture products that are highly appealing to international tourists-at the forefront of its airport duty-free stores.

For example, the “K-Cosmetic Zone” will be launched near Gate 248 in the duty-free area on the third floor of Terminal 2 at Incheon International Airport. The zone will curate and showcase more than 40 trendy K-beauty brands, including domestic derma-cosmetic (functional cosmetics) brands such as Medicube, Torriden, Wellage, and Abib. There are also plans to offer experiential content such as artificial intelligence (AI) skin analysis and personal color diagnosis.

In the liquor category, Hyundai Department Store Duty Free will introduce five popular traditional liquor brands targeted at international tourists, including Yurim Traditional Liquor, renowned for products such as Igangju and Hanju Manwol, as well as Daedongyeoju-do, Our Soolbang, Chunpoong Makgeolli, and Boksoondoga.

Additionally, the company plans to pursue joint marketing with its parent company, Hyundai Department Store. For example, there are plans to open a pop-up store at The Hyundai Seoul-a global shopping landmark representing Korea-to introduce duty-free shopping tips, and to feature Hyundai Department Store’s fashion, food, and IP (intellectual property) content at the airport duty-free shops. By integrating the content and brand assets of Hyundai Department Store Group, the goal is to further enhance marketing competitiveness.

With the addition of the DF2 area, Hyundai Department Store Duty Free expects to continue its growth in business performance. Benefiting from management efficiency and a recovery in travel demand, the company achieved its first annual profit last year, seven years after launching its business, and expects to post a profit in the first quarter of this year as well.

Jangseo Park, CEO of Hyundai Department Store Duty Free, said, “By operating the duty-free shop in the DF2 area, we are poised to become the largest operator within Incheon International Airport and expect to generate over 1 trillion won in annual sales at the airport alone. Moving forward, we will further advance our differentiated merchandising and marketing strategies based on a profitability-focused approach to store operations at both airport and downtown locations, solidifying a stable growth structure and leading duty-free shopping trends as Korea’s undisputed industry leader.”

Meanwhile, to celebrate the opening of DF2, Hyundai Department Store Duty Free is holding various promotions. At the Incheon International Airport branch, a treasure hunt event with a total prize pool worth 200 million won is being held for NAVER Pay pre-payment customers, with instant rewards of up to 1 million won. Additional payback benefits will be offered to VIP cardholders and departing customers. For international customers, those who pay with WeChat Pay will receive purchase-based benefits, as well as an 8,000 won Hyundai Department Store Duty Free discount coupon for use at airport food and convenience stores. On the online mall, a large-scale promotional event called “HYUNDAY” will run until May 10, offering additional H.oney reward points that can be used like cash, as well as various benefits such as brand relay sales.

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