Korean duty-free sales down -4.9% in November; airport business outperforms downtown stores : Moodie Davitt Report

SOUTH KOREA. Duty-free sales nationwide (excluding inflight retail) fell -4.9% year-on-year in November and -1.7% month-on-month to KRW997,142,302,982 (US$691.3 million), according to newly released Korea Duty Free Association figures.

Customer numbers eased -3.9% year-on-year and -2.2% month-on-month to 2,487,018.

“In October, we had a week-long Chuseok holiday, so November sales to Koreans were lower as a consequence,” a senior Korean travel retail source told The Moodie Davitt Report.

“However, downtown sales to foreigners also declined during November while airport departure sales to foreigners increased compared to October. Overall, this suggests airport sales are recovering while daigou sales purchases by foreigners are stagnating.”

Reinforcing that conclusion, sales to foreigners slipped -3.7% year-on-year and -3.1% month-on-month to KRW727,565,454,787 (US$504.4 million) despite customer numbers being up up +23.5% year-on-year and +3.5% month-on-month to 938,173.

**All figures: Korea Duty Free Association. Click on graphics to expand.**

Conversely, purchases by Koreans grew just over +4.0% year-on-year but (due to the Chuseok impact) declined -9.2% month-on-month to KRW269,576,848,195 (US$186.9 million) on a customer base down -5.2% over November 2024 and -5.4% month-on-month to 1,548,845.

Downtown decline

Total sales at Korean downtown duty-free stores (excluding JTO and JDC on Jeju island) declined -9.9% compared with November 2024 and -6.1% month-on-month to KRW697,712,139,768 (US$483.7 million) on customer numbers up almost +6.0% year-on-year and almost +2.3% month-on-month to 950,608.

Foreigners accounted for a dominant 82.2% of downtown sales.

Tellingly, sales to foreigners downtown slumped -12.9% over November 2024 and -6.9% month-on-month to KRW573,204,150,827 (US$397.4 million) despite customer numbers rising +29.1% year-on-year and +3.1% over October 2025 to 386,420.

Airport sales pick up

The airport departures channel again presented a more positive picture with sales climbing +31.1% year-on-year (down -1.8% over October 2025) to KRW250,186,176,700 (US$173.5 million). Customer numbers were up +4.5% year-on-year and down -6.2% month-on-month to 1,095,121.

Customer numbers were evently split between foreigners (49.1% and Koreans (51.9%), though the former accounted for 61.2% of sales.

**How the bids will be evaluated. The numbers in red indicate changes in scoring percentages from the 2023 tender. Click on table to expand.**

Incheon International Airport tender time nears

The November numbers will be closely scrutinised by retailers pondering bids for the current Incheon International Airport DF1 and DF2 tenders, which are up for grabs following the quitting notices served by incumbents The Shilla Duty Free (DF1) and Shinsegae Duty Free (DF2).

Shilla and Shinsegae are expected to exit their multi-store contracts on 17 March and 27 April 2026, respectively, in response to heavy operating losses and their failure to renegotiate financial terms with Incheon International Airport Corporation (IIAC). Each contract embraces liquor & tobacco and perfumes & cosmetics.

As reported, Incheon International Airport Corporation (IIAC) launched a tender for the DF1 and DF2 concessions on 11 December.

Here are the key details of the IIAC tender:

Concession Period: From starting point of operation until 30 June 2033 (the tenure can be extended once during the concession period with a ten-year limit)
Application to attend site briefing: By 16 December 16:00
Site briefing: 18 December 10:00 (IIAC building)
Application to take part in the bidding: 20 January 2026, 14:00-16:30
Submission period: 20 January 2026, 14:00-17:00 ✈

**The two contracts embrace 29 stores. Note the key decreases in the minimum fee. Click on table to expand.**

Incheon International Airport has historically vied with Dubai Duty Free at Dubai International Airport as the world’s biggest gateway by duty-free sales {Image: Incheon International Airport Corporation}

How the rival bids stacked up last time. The red print denotes highest bid but due to the structure of the tender, The Shilla Duty Free was awarded DF1 and DF3, Shinsegae Duty Free DF2 and DF4, and Hyundai Duty Free DF5. {Source: The Moodie Davitt Report; Click on table to expand}

This table details the concessions awarded in the 2023 tender. As noted earlier, The Shilla Duty Free won DF1 and DF3, Shinsegae Duty Free DF2 and DF4, and Hyundai Duty Free DF5. Now DF1 and DF2 are up for grabs again. Click on image to expand.

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