Incheon Airport snubs court order to cut rents for duty free shops by 25%

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Incheon Airport snubs court order to cut rents for duty free shops by 25%

Published: 08 Sep. 2025, 21:55 Updated: 09 Sep. 2025, 17:46

Audio report: written by reporters, read by AI

Duty free shops inside Incheon International Airport [YONHAP]

A court ordered Incheon International Airport Corp. to cut rent for duty-free shops by 25 percent, but the airport operator says it will not accept the ruling, setting the stage for a prolonged fight.

The Incheon District Court on Friday issued a compulsory mediation order to the airport authority and Shilla Duty Free. The court assessed fair rent at about one-quarter below current levels. Shilla Duty Free and Shinsegae Duty Free had sought a 40 percent cut, citing mounting losses. The airport authority rejected the request at the first hearing and skipped the second, prompting the court to impose the order.

The mediation has no binding force. The airport authority said it cannot accept the cut and is preparing to file an objection. Shilla Duty Free, by contrast, is weighing a lawsuit and the possibility of returning its concession.

Closing would trigger penalties of about 190 billion won, or $136.8 million, per shop. But continuing to operate means absorbing losses of 6 to 8 billion won every month. Industry observers say Shilla may favor exiting over dragging the dispute through the courts.

“We are keeping all options open, including maintaining current terms, going to trial, or returning the concession,” a Shilla Duty Free spokesperson said. “No final decision has been made yet.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY BAE JAE-SUNG [[email protected]]