Incheon airport in arrivals licence dispute

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The plan of Incheon International Airport Corp (IIAC) to open arrivals duty-free shops at Seoul Incheon airport is as old as the airport itself. But it is facing continued opposition from the Korea Customs Service, IIAC officials confirmed.

Despite the opposition, IIAC said it would try to persuade customs and domestic airlines to support the proposal and is considering joint operation of shops with the airlines. IIAC said arrivals duty-free shops are necessary to prevent the outflow of foreign currency, as Korean travellers tend to make most of their purchases at foreign airports on their return journey. Duty-free shops for inbound passengers are currently operated in most Asian airports, including Singapore Changi, Kuala Lumpur and Hong Kong International airports.

"Businessmen have asked for arrivals shopping and travellers have complained that there are not enough duty-free goods offered while in flight," said an IIAC official.

IIAC is projecting more than Won110bn ($83.5m) in annual sales in the arrivals area and Won25bn ($19.0m) in concession fees which would help to repay debts associated with the airport's construction.

Korea Customs Service has argued that arrivals duty-free might foster excessive consumption and it supports the country's austerity plan to restrict imported goods. Korean airlines also oppose arrivals shopping, claiming their sales would be affected. Therefore, IIAC is considering joint operation of arrivals shops with the airlines to compensate for the carriers' reduced sales.