SOUTH KOREA. South Korea’s President Moon Jae-in has called for a review of whether duty free shops should be opened in the country’s airport arrival terminals, according to several local media reports.
Moon suggested arrival stores could increase domestic spending by both Korean and foreign travellers. He also noted that such stores would be convenient for tourists who would no longer have to carry items bought at downtown or airport duty free stores with them.
The local media reports also said that Moon had asked officials to look for ways to benefit small- and mid-sized duty free operators, meaning it is unlikely any contracts would go to large operators such as Lotte, Shilla and Shinsegae.
The issue of arrival duty free stores has long been debated within South Korea, and views have been mixed. Many of the local media reports noted that industry reaction to Moon’s comments was similarly varied.
“Big name duty free shop operators as well as airliners that operate inflight duty free services worry that the competitive market may cause a decline in their sales,” said The Korea Herald.
The newspaper quoted an anonymous industry official, who said: “The fierce duty free store market will become more competitive, and especially with a fall in inbound foreign travellers, we are afraid that sales will be influenced by new duty free operators. The opening of another domestic duty free store is not practically related to encouraging domestic spending.”
The Korea Times noted that duty free operators had previously suggested opening pick-up counters at arrival halls, while raising travellers’ duty free allowance would also enhance tourist convenience and boost consumption.
The newspaper also said that government agencies had begun shifting their positions in light of President Moon’s comments. “Although we previously opposed arrival duty free shops, we will cooperate with the finance ministry to discuss the issue,” it quoted a Korea Customs Service official as saying.
