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Lotte, Hyundai, Shinsegae win duty-free licenses in third government auction
Collected
2016.12.18
Distributed
2016.12.19
Source
Go Direct
The Korea Customs Service (KSC) picked Lotte Duty Free, Hyundai Department Store and Shinsegae DF as new operators of duty-free stores in Seoul, the Korean customs service announced on Saturday.

The Korea’s biggest duty free shop operator Lotte Duty Free won back its license for the store in Lotte World Tower in the third government-led auction since it closed down the business in June this year after losing the license in the last bid in November last year. Hyundai Department Store won the license after its first attempt in the last bid had failed. SK Networks Co. failed to relinquish its license in Walkerhill Duty Free and a joint bid of Hotel Shilla and Hyundai Development Co. also dropped out of the race.

The KSC’s announcement on new duty-free license winners came amid escalating criticism and calls to cancel the evaluation process as some of the corporate candidates were under investigation on alleged favoritism related to the influence-peddling scandal involving President Park Geun-hye and her friend Choi Soon-sil.

According to the KSC, Hyundai Department Store received the highest score of 801.50, followed by 800.10 of Lotte Duty Free and 769.60 of Shinsegae DF. Top City Corp. won the ticket to run a duty-free shop in Seoul reserved for a small- and medium-sized company. Busan Duty Free became the winner to operate a duty-free outlet in the southern port city of Busan, and Alpensia was picked to run a store in Gangwon Province.

The KSC said that the six winners would have up to 12 months to prepare to open their stores and run the business for five years. Small- and medium-sized firms are allowed to renew their licenses once to extend the operation period to 10 years.

By Kim Gyu-sik

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