Incheon International Airport (ICN) in Seoul, South Korea.

Lotte Duty Free and Hyundai Duty Free have confirmed that they have submitted bids for the DF1 and DF2 concessions at Incheon International Airport (ICN).

Operator Incheon International Airport Corporation (IIAC) released a tender for the zones on 11 December, with yesterday (20 January, 2026) the deadline for submitting bids.

Lotte Duty Free confirmed to TRBusiness that both Lotte and Hyundai Duty Free are now ‘competing’ for the DF1 and DF2 zones.

It’s official position is as follows: ‘After thoroughly reviewing the market environment and the Request for Proposal (RFP) conditions, we have submitted our final proposal for the DF1 and DF2 zones. We plan to do our utmost in the remaining bid procedures, including the upcoming presentation.’

Hyundai Duty Free also confirmed to TRBusiness that the company has submitted bids for both the DF1 and DF2 concessions.

‘As there are still procedures to be completed with the Korea Customs Service, we will continue to prepare diligently until the process is concluded,’ stated the travel retailer.

Scope of the concessions 

According to the bid document, seen by TRBusiness, the DF1 (perfumes) concession spans 4,094 sqm, encompassing 15 stores, with a per-room rental fee (minimum acceptable amount) of KRW5,031 (including VAT).

DF2 spans 4,571 sqm, encompassing 14 stores (covering cosmetics alcohol and tobacco) with a per-room rental fee (minimum acceptable amount) of KRW4,994 (including VAT).

The concessions contract length will run to from the date of commencement of business to 30 June, 2033.

A key point of the tender is the reduced minimum acceptable bid amount, compared to the previous round. As reported at the time, for the RFP issued in 2023, the minimum rent per passenger for the DF1 concession was KRW5,346 (including VAT). For DF2, it was KRW5,617 (including VAT).

‘As the minimum acceptance amount has been set to reflect the recent slow recovery of the duty-free industry, we expect the duty-free industry and Incheon International Airport to be a win-win bid, and we will do our best to continue providing the best duty-free service to passengers through rapid bidding,’ Incheon International Airport Corporation told TRBusiness.

Upon its release, the new tender was being assessed by eligible retailers – an ICN briefing session for interested parties took place on 18 December, 2025. 

Incumbents Shilla Duty Free (Shilla) and Shinsegae Duty Free won the concessions on a 10-year team a in the original mega-tender in 2023, though both companies decided to exit late last year.

As previously reported, Shilla suspended its P&C and L&T (DF1) business on 18 September 2025 amid negotiations with IIAC over rental conditions. It will continue to operate its shops until the tentative date of 17 March 2026. TRBusiness has reached out to parent company Hotel Shilla for comment.

Subsequently, Shinsegae also confirmed it will return the DF2 concession, where the retailer operates stores selling cosmetics, perfumes, liquor and tobacco. Its operations will continue until 27 April 2026. 

The developments followed both Shilla and Shinsegae having sought an initial 40% reduction in concession fees – a move rejected by IIAC – to stem losses linked to challenges in the business operating environment, including a dip in Chinese travellers and shifting consumption habits.

Incheon District Court had proposed a cut in fees of 25% and 27% for The Shilla Duty Free and Shinsegae Duty Free, respectively, following applications for court mediation filed by the duo. However, the recommendation was not accepted by the airport operator. 

The Shilla Duty Free and Shinsegae Duty Free continue to operate the DF3 and DF4 fashion, accessories and boutique leases, respectively, at ICN.

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