Seoul: Shinsegae Inc., the operator of South Korea's second-largest department store chain, announced a 66 percent decrease in its net profit for 2025, attributing the decline to one-off costs. Net profit for the year fell to 63.5 billion won (US$43.3 million) from the previous year's 186.6 billion won, as stated in a regulatory filing by the company.

According to Yonhap News Agency, the drop in earnings was primarily due to costs associated with the planned return of Shinsegae's duty-free license at Incheon International Airport. The company plans to cease operations in the airport's DF2 zone, which includes cosmetics, perfumes, liquor, and tobacco, by April 27. However, its duty-free shops in the DF4 zone will remain operational.

Despite the significant drop in net profit, Shinsegae reported a slight increase in operating profit, rising 0.6 percent to 479.9 billion won from 477.02 trillion won during the same period. Sales also saw an increase of 5.5 percent, reaching 6.92 trillion won from 6.57 trillion won. The company attributed the rise in sales to continued investments in facilities within its core department store business and improved equity gains from affiliates, including Shinsegae DF.