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Lotte Duty Free nabs Jeju International Airport contract

Lotte Duty Free has won the rights to manage the departures duty free retail concession at Jeju International Airport, across 545 square metres of space. It will replace The Shilla Duty Free, which has operated the concession since 2018.

SEE ALSO: Lotte Duty Free plans to grow Melbourne Airport sales to USD 243.3m

The company was awarded a contract of up to ten years (five initial years with a five-year extension option), which begins on March 1. This covers the sale of all duty free goods from beauty to liquor to fashion and accessories, the retailer said.

The award was made following evaluation by Korea Customs Service (KCS) on January 27. Korea Airports Corporation had short-listed two retailers, Lotte and Shilla, with KCS selecting Lotte following a review.

According to Lotte Duty Free, the evaluation included assessment of its management capability, business activities and plans for economic and social development. Out of a total of 1,000 points on offer, Lotte Duty Free’s score was 943.23.

Lotte Duty Free said in a statement: “As Jeju Island is a representative tourist destination in Korea, the Jeju International Airport duty free licence is highly symbolic.”

The retailer estimated duty free sales at the airport in 2019 to be around KRW 42 billion (USD 34 million). It noted that sales in the province are led by the downtown duty free channel.

Lotte Duty Free CEO Kim Ju-Nam hailed the addition of the new business, which follows soon after the company’s victory in the Melbourne Airport duty free tender.

“We are accelerating preparations for global reopening by securing duty free business rights at Jeju Airport. We will do our best to attract foreign tourists to the province.”

Lotte Duty Free previously operated at Jeju International Airport from 2009 to 2014, alongside Shilla and Korea Tourism Organization. Hanwha Galleria ran the business from April 2014 to March 2018, resigning its contract early, with Shilla taking over in April 2018 following a tender.

Winning this concession means that Lotte Duty Free now has departures duty free operations at all four major international airports in Korea: Incheon, Gimpo, Gimhae and Jeju.