Incheon: Incheon International Airport Corp. (IIAC), the operator of South Korea's primary airport, has announced the selection of Lotte Duty Free and Hyundai DF Co. as the new candidates for duty-free zone operators, replacing two previous retailers. The decision followed a bidding process for the DF1 and DF2 zones.

According to Yonhap News Agency, Lotte and Hyundai were chosen last Friday after they submitted proposals for the licenses on January 20. The previous operators, Shinsegae Duty Free Inc. and Hotel Shilla Co., had relinquished their licenses due to declining sales. An IIAC spokesperson confirmed that the selected companies' documents were thoroughly reviewed, and the results have been communicated to the Korea Customs Service for approval.

Pending approval from the customs office, IIAC will finalize contracts with Lotte and Hyundai, granting them the rights to operate the duty-free zones. These contracts would allow each company to run one of the zones for a period of seven years, extending through June 2033, with an option for a three-year extension.

Shinsegae Duty Free Inc. is set to end its operations in the DF2 zone by April 27, though it will continue to run its shops in the DF4 zone at the airport. Meanwhile, Hotel Shilla Co. had already returned its DF1 zone license in September of the previous year.

The DF1 and DF2 zones primarily feature products such as cosmetics, perfumes, liquor, and tobacco. Duty-free operators have been facing increasing financial challenges due to unfavorable market conditions, including a weakened won, an economic slowdown, and reduced spending by their main customer base.