IIAC sets Seoul Incheon core minimum guarantees from $48m to $95m

By Kevin Rozario |

Earlier today, Incheon International Airport Corporation released full details of its previously announced tender for Seoul Incheon Airport’s five-year duty free concessions with minimum guarantees for the core retail units set from KRW 92.9bn ($48m) up to KRW 104.9bn ($95m).

 

The core concessions are the eight store units that will be open to all-comers (see table below) while the remaining four units of the 12 (in total) have been reserved for small- and medium-sized enterprises (SMEs) as previously reported. They have minimum guarantees within the range of KRW 4.9bn ($4.5m) to KRW 20.4bn ($18.4m).

 

In terms of space, the area that will be open to bid from general enterprises totals 15,206sq m while the SMEs can bid for space totalling 2,188sq m giving the latter, a 12.6% share of the retail floor at the Korean hub (see table below).

 

SPECIAL TERMS FOR SMES

Regarding SMEs, IIAC says: “Aligned with government policies, IIAC (has) made unwavering efforts to create a stable environment for their successful entry in that the central area of the passenger terminal and duty-free zones near the departure gate are allocated for the small- and medium-sized new entrants.

 

“Moreover, to reduce their initial burden for business investment, IIAC presented the minimum bidding price at 60% of that of their major counterparts.

 

Also, rental deposits for all the tenant firms in commercial facilities is equivalent to six months’ rent and should be paid in cash, but SMEs and established middle-sized companies can also pay the deposit with guaranteed securities.”

 

IIAC says that to qualify for participation, retailers “shall be either a domestic corporation licensed to operate a store selling bonded imported goods by the Korea Customs Service or a foreign corporation licensed by a relevant authority in the governing country to run a duty free/tax-free business, that is either currently in operation or has previously been in operation within 10 years from tender notice date”.

 

It further states that consortia or joint contracts are not allowed.

 

 

 

 

TENDER SCHEDULE

IIAC’s tender process will follow the following timetable and deadlines:

 

Tender presentation

• Date: 14:00 on 11 December 2014

• Place: Main auditorium of the IIAC (1st floor)

• Participation in the presentation is not a prerequisite for participation.

 

Application for participation

• Date: 29 January, 2015 10:00∼16:00

• Place: Main conference room, IIAC (5th floor)

• Participants must be present at the conference room during above time mentioned.

 

Tender (Business Proposal (60%) and Financial Proposal (40%)

• Date:  30 January, 2015, 10:00∼16:00

• Place: Main conference room of the IIAC (5th floor)

 

Further tender information can be accessed at http://ebid.airport.kr or by contacting Ms. Kang Eun-jeong (+82-32-741-5733) about the tender process or Mr. Kim Hong-soo (82-32-741-5552) about the business operation.

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