SOUTH KOREA. Korea Customs Service (KCS) has announced that a change in customs law will be implemented on 1 July, allowing duty free purchasers leaving Korea to pick up their goods upon arrival.
Currently, duty free customers must use dedicated pick-up desks located at departure gates and take their purchases with them during their travels abroad.
The change “makes arrival duty free stores redundant. We are reviewing returning our licence in a worst-case scenario.” – SM Duty Free
The law change makes it possible for duty free purchasers to pick up their goods upon arrival. This is expected to enhance convenience for customers and relieve congestion at pick-up locations on departure.
A KCS representative explained that the change was implemented to repatriate overseas consumption back into Korea.
While this announcement will be welcomed by the larger duty free retailers such as Lotte Duty Free, The Shilla Duty Free and Shinsegae Duty Free, smaller firms operating the arrival duty free stores may feel hard done by.
SM Duty Free, which operates an arrival duty free store at Incheon Airport Terminal 1, said the installation of an arrival duty free pick-up counter “goes against the policy to install an arrival duty free store and makes arrival duty free stores redundant. We are reviewing returning our licence in a worst-case scenario.”
South Korea’s Ministry of Economy and Finance began the process of allowing a duty free pick-up counter in December 2019 by approving the change to the customs law. Details concerning the allowance and the product categories available for pick-up will be crucial in determining the ultimate reaction of arrival duty free store retailers.
