Seven companies have submitted bids to open two new duty-free stores in downtown Seoul, the customs agency said Monday, in what is seen as a major opportunity for retailers to boost sales amid anemic consumer spending.
The seven bidders include market giants Hotel Lotte and HDC Shilla Duty Free, who are affiliated with Lotte Duty Free and Shilla Duty Free, respectively, according to a press release by the Korea Customs Service.
Other companies who took part in the bid, the first for large corporations in 15 years, are Hanwha Galleria Time World, Shinsegae DF, SK Networks, E-land Duty Free and Hyundai DF. All seven companies had expressed their interest in the bid.
The two winning bidders are expected to be announced as early as next month following a 1,000-point-scale assessment that gauges their management ability as well as contribution to the local tourism industry.
Currently, four companies — Hotel Lotte, Hotel Shilla, SK Networks and Dongwha Duty Free — run seven duty-free stores across the country’s capital. Hotel Lotte leads the market, operating four of the seven stores.
The bid is seen as a golden ticket for companies to gain an upper hand in the country’s 8.3 trillion won ($7.5 billion) and growing duty-free market where foreigners, especially Chinese tourists, are driving sales. (Yonhap)
