Lotte Duty Free, travel retail arm of South Korean conglomerate Lotte Group, will re-open its duty-free shop in Lotte World Tower in southern Seoul next week after regaining business license for the shop that used to be the country’s third biggest in a government auction on December 17.

The Lotte World Tower shop had to close in June after Lotte lost its operation rights of the outlet in a review and auction in November last year.

The company hoped to open the Lotte World Tower duty free store within this year but pushed back to the schedule due to administrative complexities, said an unnamed Lotte Duty Free official.

The firm has secured corners for household luxury names like Louis Vuitton and Chanel and will be rehiring the former staff of 1,300 that have been on leave or relocated after the closure. The renovation work it had promised in latest review would start from April.

First opening in January 1989, the Lotte World Tower duty-free outlet used to be a favorite shopping destination for tourists until it shut down in June this year after it failed to renew its license last year. It had stood as the third largest duty-free outlet based on revenue and it recorded sales of 611.2 billion won ($506 million) in 2015.

Lotte won the rebid despite suspicion that the new licensing was arranged for Lotte and SK that each lost a shop in November as a favor from the president who is accused of having demanded donations from conglomerates for nonprofit organizations created by her friend Choi Soon-sil, currently in trial for power abuse and other criminal charges.

Separately, Lotte Duty Free will open a branch in Gimhae International Airport at the southern coast of the country on Friday. The outlet previously had been operated by another retail conglomerate Shinsegae Group until it gave up the business due to poor profitability.

Lotte won the duty-free license in the recent state auction and will start expanded service.

By Choi Seung-jin

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]