Incheon airport’s rent policy places heavy burden on duty-free firms

Duty-free operators are increasingly losing interest in running businesses at Incheon International Airport, as rising rental rates — that do not reflect sales performance — have become a growing burden for tenants. As shopping trends draw international travelers to hotspots beyond the airport, duty-free zones are losing their appeal among both shoppers and companies. The duty-free rental structure gained industry attention after Hotel Shilla, which operates Shilla Duty Free, decided to exit the airport’s DF1 duty-free sector last month. DF1 consists of perfume, cigarette and liquor products. The main reason cited for the exit was the high rent that worsened the company’s operational deficit. Hotel Shilla won duty-free business rights for the DF1 zone in 2023 despite the area’s rent being about three times higher than that of other zones, taking on a significant financial burden to secure the license. In the past, duty-free companies paid fixed rents, but in 2023, the airport’s operator shifted to a variable rent system in which fees are calculated based on passenger volume. SiWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times