Incheon: Lotte Duty Free and Hyundai DF Co. have submitted bids for duty-free zone licenses at Incheon International Airport, industry sources said Tuesday. The bids were made for the DF1 and DF2 zones, which were previously vacated by other operators.

According to Yonhap News Agency, the auction was conducted by Incheon International Airport Corp. (IIAC) to select new duty-free shop operators. Notably, Shinsegae Duty Free Inc. and Hotel Shilla Co. opted not to participate in the bidding process. A Shinsegae official commented on their decision, stating, "We decided not to participate in the bidding after a comprehensive review of changing market trends and consumer demand. We aim to pursue sustainable growth by focusing on profitability and financial soundness." Shinsegae plans to cease operations in the DF2 zone, which includes cosmetics, perfumes, liquor, and tobacco, by April 27, but will continue operations in the DF4 zone at the airport.

In September last year, Hotel Shilla returned its DF1 zone license to the airport operator. Duty-free shop operators have been facing increasing losses due to challenging market conditions, including a weak won, an economic slowdown, and reduced spending by core customers.

IIAC will undertake a review of the submitted documents to identify qualified operators, who will then be notified to the Korea Customs Service for the final decision, the sources added.