Lotte denies takeover of Midopa Department Store

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Local press reports that the Lotte Group is considering taking over the troubled Midopa Department Store's Metro store in Myongdong, central Seoul, for use as a duty-free store were denied today. Executive director of Hotel Lotte DFS, Young-Soo Choi told TRW: "An investment company is trying to open a local market shopping centre there, not a duty-free shop." There were also rumours that DFS Group plans to acquire the Metro store, Midopa and its creditor Seoul Bank said.

Lotte already has a 50% share of the duty-free market in Seoul and operates Hotel Lotte and the Lotte World duty-free shop on the 9th and 10th floors of its department store close to the Midopa Metro store.

Meanwhile sales have been improving at Lotte's new Seoul Incheon airport store. "Currently the total Incheon business is even compared to Kimpo. Initially sales volume was far below but it has picked up," said Choi. "One problem is that the duty-free area is too big. Customers come to our store for fragrances and cosmetics and we have to send them on the [KNTO] liquor and tobacco store, but it is too far away."