Lotte, Shilla win preliminary bid for new Incheon airport duty-freeStaff Writer | April 21, 2017
The duty-free units of Lotte Group and Hotel Shilla have each won the preliminary bid to run stores at the new Incheon International Airport terminal slated to open later in the year, the airport authority said.
Asia The new Incheon International Airport terminal
The preliminary bidding is the first part of a two-phase procedure to win the licensing for new duty-free shops.
Once the Incheon International Airport Corp. (IIAC) selects multiple candidates for the designated slots, they are then assessed for a second time by the Korea Customs Service for the final decision.
While details on the prices were undisclosed, bidders apparently offered a total of some 205.3 billion won ($180.8 million) for the new duty-free operations, according to officials familiar with the matter.
However, the bidding for the fashion and accessories slot fell through with none of the duty-free operators tendering their bids, as jitters from a decline in Chinese tourists following Beijing's ban on trip sales to Korea have dampened their appetite for fresh investment.
Shinsegae Duty Free and Hanwha Galleria were also among the bidders but failed to make it to the initial winners list.
IIAC plans to restart the bidding for the thwarted sections either through a private contract or at a lower price, it said.
The final bidder is expected to be announced next month. ■