SOUTH KOREA. Twelve small & medium enterprises (SMEs) have submitted bids to operate a duty free shop in the departure hall of Busan Port International Passenger Terminal, according to KDF News*.
As revealed by The Moodie Davitt Report, Hyundai Paint had been operating the ‘Duty Free One’ store since August 2015, but it closed in March this year after the company fell into bankruptcy.
The bidding area of the Busan International Passenger Terminal is 1,209.21sq m and the planned bid price is at least KRW2.37 billion (US$2.1 millioin) per annum (tax and administrative expenses are separate).
The 12 companies that have submitted an initial application form will participate in an on-site briefing.
KDF News reported Yoon Tae-yeol, Manager of Port Industry Support Department of Port Industries, as saying: “We will evaluate the proposal evaluation (70%) of participating companies on 23 May and the price auction result (30%) on 25-26 May. We are planning to consider the financial status, management status and operational ability of the companies.”
A final selection will be made on 29 May and the Korea Customs Service (KCS) will be notified. Operating rights will be awarded following a KCS review, similar to the two-stage award process recently carried out at Incheon International Airport.
*NOTE: The Moodie Davitt Report and KDF News enjoy an exclusive information-sharing partnership.
