Journalist

Cho Jae Hyung
  • China Duty-Free Group emerges as key contender in Incheon airport duty-free bid
    China Duty-Free Group emerges as key contender in Incheon airport duty-free bid SEOUL, December 12 (AJP) - China Duty-Free Group (CDFG), the world’s largest duty-free operator, is emerging as a major contender in the re-bidding of duty-free concessions at Incheon International Airport, setting the stage for heightened competition with South Korean rivals Lotte, Hyundai, Shilla and Shinsegae. A Dec. 18 bidder briefing is expected to confirm participation. Incheon Airport Corporation on Thursday reopened the tender for operators of the DF1 zone — covering perfume and cosmetics — and the DF2 zone, which includes liquor, tobacco, perfume and cosmetics. The licenses were returned by Shilla Duty Free and Shinsegae Duty Free, which won them in 2023 but later withdrew after incurring heavy losses. Their request for a 40 percent rent reduction was rejected by the airport, leaving each with penalties of around 190 billion won. Shilla will continue operations until March 16 and Shinsegae until April 27, after which new operators will take over. Contracts will run through June 30, 2033, with an option for up to 10 years of renewal. Lotte Duty Free and Hyundai Department Store have formed internal task forces to prepare bids, while Shilla and Shinsegae are cautiously reviewing the commercial terms before deciding whether to re-enter the competition. But industry attention is increasingly fixed on CDFG, whose participation in the previous tender round pushed bid prices sharply higher. The Chinese state-owned operator posted a net profit of 3 billion yuan (about 622 billion won) in the first three quarters of this year, reinforcing expectations it could submit an aggressive offer. Despite rising inbound travel, duty-free operators are navigating shifts in consumer behavior as foreign tourists increasingly shop at domestic retail chains such as Olive Young and Daiso. Analyst Yoo Jung-hyun noted that “shopping preferences are moving away from airport duty-free stores toward local specialty retailers.” Bids are due on Jan. 20, with clarity on the final field expected at the Dec. 18 briefing. An industry insider warned that overly aggressive bids could trigger a “winner’s curse,” urging companies to calculate break-even points carefully before committing. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-12 15:36:31
  • Korean big-box retailers shrink under decade-old regulations
    Korean big-box retailers shrink under decade-old regulations SEOUL, December 08 (AJP) - South Korea’s largest hypermarket chains are steadily losing ground as long-standing regulatory constraints undermine their competitiveness while e-commerce and less-regulated rivals expand, industry data show. The total number of outlets operated by major chains — including E-Mart, Lotte Mart and Homeplus — fell 7.5 percent to 392 this year from 424 in 2017. E-Mart reduced its store count from 159 to 157, Lotte Mart from 123 to 112, and Homeplus from 142 to 123. The contraction has been accompanied by declining revenues. Combined annual sales at the three chains fell below 30 trillion won last year, down about 3.3 trillion won from a decade earlier, according to industry estimates. Industry officials attribute much of the pressure to the industry regulatory framework, introduced in 2012 to protect traditional markets and small merchants. The law mandates two monthly shutdown days, bans operations between midnight and 10 a.m., and restricts new store openings within a one-kilometer radius of traditional markets. It also prohibits online deliveries by large retailers during restricted hours, effectively excluding them from the rapidly expanding early-morning delivery market. By contrast, e-commerce platforms such as Coupang have expanded rapidly, while brick-and-mortar formats exempt from the rules have gained market share. Last month, the National Assembly extended the law’s sunset clause to Nov. 23, 2029, effectively locking in the current regulatory framework. Policy experts and industry groups say the rules no longer serve their original purpose. A report by the Korea Institute for Industrial Economics and Trade found little evidence that mandatory holiday closures revive traditional markets and said the law is rooted in an outdated, offline-centric view of retail that fails to match current consumer behavior. “Applying rigid, decades-old rules only to hypermarkets is increasingly disconnected from market realities where online and offline channels have converged,” an industry official said. “The framework for coexistence with traditional markets needs to be redesigned to restore competitiveness.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-08 17:32:23
  • Korean lawmakers advance bill to close loopholes on synthetic nicotine
    Korean lawmakers advance bill to close loopholes on synthetic nicotine SEOUL, November 28 (AJP) - South Korea is moving closer to regulating synthetic nicotine as tobacco after a key parliamentary committee approved an amendment to the related act, paving the way for a full legislative vote on Dec. 12. The amendment would broaden the legal definition of tobacco to include products containing nicotine derived from non-tobacco sources. Synthetic nicotine e-cigarettes are currently treated as industrial products, allowing them to bypass tobacco-related regulations such as online sales bans and restrictions on vending machine distribution. Health officials and lawmakers have warned that the loophole has contributed to rising youth smoking rates. To curb stockpiling ahead of the new rules, the bill shortens the implementation period from six months to four and mandates clearer labeling of manufacturing and import dates. Authorities also plan to inspect existing inventories for harmful substances before they can be sold, while coordinating with local governments to prevent excessive pre-enactment buying. The amendment grants a two-year grace period for e-cigarette retailers to comply with regulations governing tobacco outlets. Online sales of synthetic nicotine products would end four months after the law takes effect. South Korea began discussing synthetic nicotine regulation in 2016, but progress stalled amid industry pushback. The latest proposal, initially delayed for further review, passed the legislative committee on Nov. 26. The e-cigarette industry cautiously welcomed the development. Kim Do-hwan, vice president of the Korea Electronic Cigarette Association, said: “Though delayed, we welcome the decision. However, the two-year grace period for vending machine sales is disappointing.” Still, some industry voices argue that taxing synthetic nicotine at the same rate as traditional tobacco is excessive. Natural nicotine e-liquids are currently taxed at 1,799 won per milliliter; applying the same rate to synthetic nicotine would add roughly 54,000 won in taxes to a 30-milliliter bottle. “The cost and production structure of synthetic nicotine differ from traditional tobacco, so applying the same tax rate burdens small businesses,” an industry source said. “Reasonable adjustments in the detailed regulations are necessary.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-28 14:13:00
  • AI firm among two bidders seeking to acquire Homeplus
    AI firm among two bidders seeking to acquire Homeplus SEOUL, October 31 (AJP) - An artificial intelligence company has joined the bid to acquire Homeplus, the troubled South Korean retail chain now under court-led rehabilitation. Homeplus said Friday that multiple bidders had submitted letters of intent by the deadline. While Homeplus did not reveal details of the participants, one bidder is reportedly Harex InfoTech, an AI solutions firm. The AI firm reportedly plans to raise about $2 billion in the United States to finance the acquisition. Under the current sale plan, all common shares held by majority shareholder MBK Partners would be canceled, except for preferred shares, and new shares issued to the successful bidder. In 2015, MBK Partners, a private equity firm, acquired a 100 percent stake from British supermarket chain Tesco Plc for 7.2 trillion won (about $5.2 billion at the time). But a prolonged slump in the discount store industry, compounded by competition from online platforms, left the company financially distressed. It eventually entered court-led rehabilitation proceedings in March. Samil PwC, the lead manager for the open bidding process, said it will review the letters of intent and financing plans before signing non-disclosure agreements with the qualified bidders. The due diligence will run from Nov. 3 to 21, with final bids due by Nov. 26. The identity of the second bidder remains undisclosed. NongHyup, previously mentioned as a potential participant, did not submit a letter of intent. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-31 17:09:41
  • CJ Logistics expands US cold chain network with new Kansas hub
    CJ Logistics expands US cold chain network with new Kansas hub SEOUL, September 28 (AJP) - South Korea's CJ Logistics said Sunday it has opened a new cold chain logistics center in New Century, Kansas. The facility is specifically designed to manage the storage and transport of refrigerated and frozen goods, utilizing specialized temperature control systems to maintain product freshness and quality. The new center's proximity to major highways allows for fast, same-day transport to key Midwestern cities, the company said. The facility boasts a direct connection to the BNSF railway, which links the western and central United States. Furthermore, the nearby CPKC railway provides access for continental transport across North America, connecting Canada, the U.S., and Mexico. This multimodal capability allows the center to reach an estimated 85 percent of the U.S. within two days. The Kansas center opening follows the launch of a 24,904-square-meter cold chain center in Gainesville, Georgia, a key frozen poultry production area, which opened last year. Kevin Coleman, CEO of CJ Logistics America, emphasized the importance of the expansion. "High-value cold chain logistics require stringent temperature control and quality maintenance, demanding expertise and trust," he stated. "We aim to strengthen our North American cold chain supply network with advanced technology." CJ Logistics America currently operates over 70 logistics centers across 17 states, including Illinois, California, and Georgia, offering comprehensive logistics services such as warehouse management, transport management, and consulting. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-28 15:11:12
  • Emart24 becomes first Korean convenience store in Laos
    Emart24 becomes first Korean convenience store in Laos SEOUL, September 28 (AJP) - South Korean convenience store chain Emart24 announced its entry into the Laotian market, Sunday, becoming the first Korean convenience store brand to establish a presence in the country. The entry follows a strategic franchise agreement with Laos-based conglomerate, Kolao Group. The partnership will see Emart24 convert 50 existing KOK KOK MINI convenience stores, currently operated by Kolao Group, into Emart24 outlets, alongside the opening of new locations. Kolao Group, founded by Oh Se-young in 1997, is a diversified conglomerate with interests spanning from car assembly and sales to finance, platforms, construction, and leisure. Since 2023, the group has also operated hypermarkets and convenience stores under its proprietary KOK KOK brand. Emart24 currently operates seven stores in Cambodia, 102 in Malaysia, and one in India. Emart24 is positioning its new Laotian stores to capitalize on the country's youth demographic, who are demonstrating a growing affinity for Korean culture, including K-food, K-content, and K-beauty. Emart24 CEO Choi Jin-il, said, "We anticipate this expansion will not only boost exports of our private label products but also open new markets for South Korean small and medium-sized businesses." * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-28 15:02:04