Posted April. 14, 2015 07:11,
Already the world`s biggest duty free market, Korea is embracing more competitions. The market is showing rapid growth defying an overall sluggish consumption, with the so-called chaebols who own retail affiliates jumping on the bandwagon to grasp a share.
Having topped 8 trillion won (7.26 billion U.S. dollars) last year, the domestic duty free market is expected to grow to 10 trillion won (9.1 billion dollars) this year. The average annual growth in the past three years was 14.7 percent, with last year`s growth jumping to 21.6 percent. Duty free shops in Seoul are a particularly rich market. Besides the existing six, the government plans to endorse three more duty free stores in Seoul by July. City duty free shops are more profitable than airport ones that are suffering from high rent fees.
According to the Finance and Strategy Ministry, sales at duty free shops in cities reached 5.4 trillion won (4.9 billion dollars) last year, a 32.2 percent increase from a year earlier, exceeding the sales growth (21.6 percent) of all duty free shops in the country. Duty free shops in airports saw sales rise just 5.9 percent to 2.5 trillion won (2.3 billion dollars).
The Dong-A Ilbo will publish in series duty free shop advance strategies of major companies including HDC Shilla Duty Free Shop (Hotel Shilla and Hyundai Development Company), Hyundai Department Store Group, Shinsegae Group, Lotte Duty Free, SK Networks and Hanwha Galleria.