As the domestic duty-free industry shows signs of recovery this year, risks such as competition with local retail channels and high exchange rates remain prevalent. In response, the Ministry of Finance has convened a meeting with industry representatives to address their concerns.
On June 4, the Ministry of Finance held a meeting at Incheon Airport with the Korea Duty-Free Shops Association to assess the current market situation and explore revitalization strategies. The ministry listened to feedback from stakeholders in the industry.
Attendees included major duty-free operators such as Lotte, Shilla, Shinsegae, and Gyeongbokgung, along with representatives from the Korea Duty-Free Shops Association.
According to the association, total sales at domestic duty-free shops reached 1.08 trillion won in March, a 12.5% increase from the previous month, driven by a rise in foreign tourist numbers. Both the number of foreign buyers and sales figures rose by approximately 20% compared to the previous month.
While major duty-free shops have returned to profitability, challenges persist due to ongoing high exchange rates and intensified competition with local retail channels.
Industry representatives have called for support measures, including a reduction in duty-free license fees, an increase in tax-free purchase limits for travelers, and a relaxation of regulations governing duty-free operations. They also emphasized the need for tailored marketing strategies targeting foreign tourists and the introduction of experiential products utilizing K-content.
A Ministry of Finance official stated, "We will actively review the issues raised during today’s meeting and will continue to maintain communication with the duty-free industry."
* This article has been translated by AI.
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