Encouraging results in Q2.

South Korean travel retailer, Hyundai Duty Free, has delivered a strong second quarter, with operating profit rising sharply – and expected to climb further this year. The results come on the back of the opening of the new DF2 zone at Incheon International Airport (ICN) and rising foreign tourist traffic, which helped the retailer’s downtown business.

According to a financial presentation released earlier this month by listed parent company Hyundai Department Store (HDS), 100% owned Hyundai Duty Free (HDF) generated net sales of KRW310.4bn ($225.4m*), up +5.8% year-on-year (YOY). Operating profit rose by KRW7.5bn, which the retailer said was due to the successful opening of its new DF2 airport space and an improvement in margin of downtown duty-free operations.

HDS’s performance was even better in Q2, with net sales – roughly double that of the duty-free business – jumping by +9.1% (see table below). Driving the result were strong sales in fashion, luxury, home appliances and an “acceleration of foreign customer sales growth”.

Number one at Incheon Airport

Both HDF and parent HDS saw solid sales increases.  

Hyundai says that with the DF2 opening on 28 April, it is now the number one duty-free retailer at ICN. The expansion strengthens both buying power and economies of scale, and is expected to lead to margin upside across both airport and downtown stores. This may be evident by the time HDS releases its Q3 results.

Hyundai Duty Free’s turnaround in operating profit has been impressive. Losses in the first two quarters of 2025 were flipped to profit in Q3, and with every subsequent quarter, OP growth has increased, with a sharp rise in Q2 2026. HDS has stated that it will continue targeting profit growth for its duty-free division.

While HDF saw Q2 net sales rise by +5.8% YOY, the first half saw a decline of -10.7% to KRW524.1bn ($380.8m). This indicates just how influential landing the DF2 concession from April has been for the travel retailer’s fortunes.

* FX conversion at today’s rate.

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