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Lotte Duty Free lands back at Incheon Airport after 3 year absence

Published: 17 Apr. 2026, 18:37 Updated: 19 Apr. 2026, 15:51

The Lotte Duty Free store in Jung District, central Seoul [YONHAP]

Lotte Duty Free returned to Incheon International Airport on Friday, reopening in the airport’s duty-free zone for the first time in about three years.

The move, along with Hyundai Duty Free’s planned expansion later this month, is set to reshape competition at Korea’s main gateway into a four-way contest among Lotte, Shinsegae Duty Free, Shilla Duty Free and Hyundai.

The reopening also comes as duty-free operators try to rebuild momentum in a tougher environment marked by a weak won, fading price advantages and broader concerns that geopolitical uncertainty could weigh on travel demand.

Lotte Duty Free began operations in the DF1 area of the departure hall, selling perfumes, liquor and tobacco.

The 4,094-square-meter (44,000-square-foot) area, previously used by Shilla Duty Free until Wednesday, now consists of 15 stores carrying 240 brands, including Chanel, Dior and JungKwanJang, best known for its ginseng products.

After Shilla gave up the license early, citing mounting losses, Lotte Duty Free was selected in February as the new operator for the zone. The license can run for as long as 10 years from the start of operations.

The duty-free area at the Incheon International Airport in November 2025 [YONHAP]

Lotte Duty Free had posted an operating loss of 143.2 billion won ($96 million) in 2024, but returned to the black last year with an operating profit of 51.7 billion won.

Hotel Lotte, the company in charge of the duty-free business, attributed the turnaround to the company's attempt to streamline the business. Lotte Duty Free closed its downtown store in Da Nang, Vietnam, citing profitability, last year.

At the same time, the company said stronger duty-free profitability, buoyed by a rise in foreign visitor numbers, contributed to the turnaround. Korea recorded 18.9 million international visitor arrivals last year, according to official tourism figures.

“We are welcoming customers back to the Incheon Airport duty-free zone for the first time in three years,” Yang Hee-sang, head of sales at Lotte Duty Free, said. “We will work closely with the airport authority to build a shopping environment that satisfies both Korean and foreign customers.”

Hyundai Duty Free is also set to begin operating in the DF2 zone of the Incheon International Airport on April 28 after Shinsegae Duty Free’s withdrawal.

The Hyundai Duty Free in Gangnam District, southern Seoul, in 2025 [HYUNDAI DUTY FREE]

Hyundai's new area will also handle cosmetics and perfumes, liquor and tobacco, similar to that of Lotte. With that expansion, Hyundai will become the operator with the largest number of stores in the Incheon Airport duty-free zone, adding DF2 to its existing DF5 and DF7 areas. Hyundai Duty Free posted its first full-year operating profit last year since entering the duty-free business, at 200 million won.

The industry plans to respond with more aggressive marketing and experience-driven content aimed at keeping travelers engaged.

Hyundai Duty Free ran an AI-based beauty experience zone at its Trade Center store in Gangnam District in southern Seoul that analyzed customers’ skin conditions and personal colors.

Lotte Duty Free invited 60 top-tier Korean members to a beauty class held with cosmetics firm SK-II at its VIP-only Star Lounge in its Myeong-dong flagship store in central Seoul in February.

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 NOH YU-RIM [[email protected]]