SOUTH KOREA. King Power Group (Hong Kong) has set up a subsidiary called King Power Group Korea. The main purpose of the new company is to evaluate the potential of the duty free contracts that are due to be tendered shortly at Incheon International Airport. “Bidding for other airports in Korea will follow later,” the company said in a statement.
Incheon International Airport Corporation is currently finalising its arrangements for the world’s biggest duty free tender (as well as food & beverage) at the airport.
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Turning on the Power in Korea: King Power Group Managing Director Antares Cheng (left) and Managing Director Travel Retail Sunil Tuli |
The single or multiple tender will cover the existing Main Terminal Building and the ambitious new Concourse A that is set to open in August 2008. Duty free sales at Incheon reached a record KRW850 billion (US$903 million) in 2006.
Currently Lotte and DFS sell fragrances and cosmetics at Incheon, while AK Duty Free and state-owned KNTO (trading as Duty Free Korea) have liquor and tobacco, with all four offering a range of other categories.
King Power Group, led by Managing Director Antares Cheng, said it has serious aspirations for the wider Korean market. It will focus initially on duty free, and then aim to develop domestic retail with a range of brands that are under negotiation.
King Power Group Managing Director, Travel Retail and Duty Free Sunil Tuli, who is also responsible for the Korean venture, said that duty free will be the main focus for the new subsidiary.
“We have tremendous confidence in the Korean market, and consider it to be one of the most successful markets in the world,” he said. “We are naturally keen to contribute further to its growth. King Power (Hong Kong) has many different duty free and travel retail businesses in the region, ranging from Hong Kong, to China, to Macau, Singapore and Japan.
“We have excellent relationships with our suppliers, landlords and business associates, and are proud to be considered as one of the top ten duty free retailers in the world. As an Asian company, we have a good understanding of the Asian customers, and hope to extend this expertise to the Korean market as well.”
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