CDFG, Lotte Hotel fail in Incheon airport duty-free bids

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CDFG, Lotte Hotel fail in Incheon airport duty-free bids

Published: 17 Mar. 2023, 18:09

Incheon International Airport Terminal 1 bustles with travelers on March 1. [NEWS1]

CDFG, China's largest duty-free operator, and Lotte Hotel failed to win a spot at Incheon International Airport with three local companies shortlisted in the bidding.

The candidates competing for the 10-year license are Shinsegae, Hotel Shilla and Hyundai Department Store Duty Free.

The trio have put down multiple bids for space within the five duty-free sections available to large corporations, including ones for cosmetics, perfume, liquor, tobacco, fashion, accessories and luxury goods sales.

The duty-free operators presented their business proposals Monday.

The airport determined the initial screening process, with business capacity constituting 60 percent of the evaluation score. Bidding price constituted the remaining 40 percent.

The next round of screenings will be conducted by Korea Customs Service, who will determine the bidders' spots in April.

A total of 20,842 square meters is available, and bidders can be awarded a maximum of two of the five licenses available.

As for the duty-free spots reserved for small-and-medium-sized enterprises (SMEs), Kyung Bok Kung Duty Free and City Duty Free are the final candidates. The pair will compete for two sections which constitute a total of 3,280 square meters of the airport.

Designated operators will open at the airport on July 1.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]