SOUTH KOREA. Korea Customs Service today awarded the five-year Gimpo International Airport liquor & tobacco duty free concession to The Shilla Duty Free and the similar length Cheongju International Airport contract to Dooje Industrial Development Co.
As reported, the Gimpo (Seoul) tender contest was fought out by arch-rivals Lotte Duty Free and The Shilla Duty Free, which were shortlisted for the final selection process by Korea Airports Corporation.
The Shilla scored a combined 934.5 points out of a possible 1,000 in the two-tier bidding system (Korea Airports Corporation and a KCS-appointed advisory panel each scored out of 500). Lotte’s score was not divulged.
At Cheongju International Airport, small & medium enterprise (SME) Dooje (Duje) Industrial Development Co outscored The Grand Duty Free by 822.77 points to 809.13.
The Gimpo and Cheongju opportunities arose after City Duty Free (pictured below), another SME, withdrew from the concessions on 21 April. The retailer cited unsustainably high concession fees that had driven losses in the hundreds of thousands of dollars each month, which was badly affected last year by the THAAD-related decline in Chinese tourism.
Lotte Duty Free already operates at Gimpo Airport, having been the sole bidder for the cosmetics & fragrances space in the fourth re-run of a tender in 2016 that until then had failed to attract any bids.
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