(Left to right) Tae Wan Kim, MD, Lotte HQ; Yong-Deuk Ma, CEO, LDCC; Patrick Waldron, CEO, Fintrax (holding signed agreement); Young Jun Choi, CEO of Cube Refund; and Eddie Chen of Eurazeo.

Tax-free operator Fintrax Group has joined forces with The Lotte Group in a joint a venture agreement that hopes to coax overseas tourists to shop tax free in Korea.

Fintrax will join Lotte Group subsidiary Lotte Data Communications Corporation (LDCC) as shareholding partners in CubeRefund, an existing tax refund operator in Korea.

CubeRefund will operate under the branding of Fintrax Group’s tax-free subsidiary Premier Tax Free.

The move will help boost Lotte Group’s sales in addition to driving tourists to visit the country’s duty free shops, outlets and department stores.

KOREA’S TAX REFUND BOOM

Korea’s tax refund market has exploded in the last 10 years, rising from around KRW41.7bn ($40.9mn) in 2010 to KRW413bn ($359.3mn) this year, with tax free shopping remaining an important tool in the government’s strategy of luring Chinese and other international tourists to spend in the country.

“CubeRefund is the first successful case to attract foreign investment as an excellent venture company discovered by LDCC,” said Yong-Deuk Ma, CEO, LDCC.

Patrick Waldron, CEO, Fintrax added: “We are delighted to invest in this joint venture with CubeRefund.  We have a great partner in The Lotte group, who is one of Asia’s leading companies. This latest investment underpins our commitment to Asia as a growth strategy for our Group.”