The THAAD Problem Has Affected The Incheon Duty-Free Bid
- Apr 8, 2017
- 1 min read
The Lotte Duty Free shop is one of the operators affected by the Chinese backlash. (Hello World / YouTube)
SOUTH KOREA – The sour relationship with China caused by the THAAD U.S. missile defense system has negatively affected the bidding process for the new duty-free shops set to open at the Incheon airport.
Four major duty-free operators have sent their bids on Thursday for the slots at the new terminal of the Incheon International Airport which will open on October. Hanwha Galleria, Hotel Shilla, Shinsegae DF and Lotte Duty Free are the major contenders for the slots.
But there were no bids submitted for the fashion and accessories zone due to high rental costs and low return on investment. The four major operators instead applied for spaces in the cigarettes section, beauty products and beverages as cited in the Korea Herald.
The shift in bidding pattern is a strong indication that Korean companies are very reluctant in making an investment due to big losses from Chinese sales.
Comments