The Jeju Tourism Organization has decided to withdraw its duty free shop in the Jeju Shinhwa World due to uncontrolled deficits.
The JTO is not free from responsibility for the failure as critics say that the organization started the risky business indiscreetly.
Joseph Kim reports.

This is the Jeju Tourism Organization's duty free shop in the Jeju Shinhwa World resort.

Nothing on the shelves, and no one to serve the shoppers.

A couple of remaining stands will be closed by the end of this month.


Following last year's announcement of the withdrawal by the governor, stores in the duty free shop have been closing one by one.
This month, the business patent for the duty free shop will be canceled.


The public corporation opened the duty free shop in Jeju City in 2016 and expanded the business after moving it into the Jeju Shinhwa World resort in 2018.

Soon, the business suffered losses due to the sharp plunge in the number of Chinese visitors following China’s decision to boycott Korea’s tourism industry over Seoul’s decision to install the THAAD missile defense system on the Korean peninsula.

The business has never produced profits since its opening. Instead, more than 15 billion won in deficits have been recorded over the last four years.

The organization says it has witnessed its limitation in the fierce competition with the nation's major retailers, and it will focus on its duty free business in the Jeju International Convention Center.


Despite uncontrollable external factors including the changing business environment and the THAAD issue, the organization can hardly be free from responsibilities.
It has failed to attract top brands to its shop and started the business indiscreetly.

[slug] Impossible to revive without province's fund injection

8 billion won in tax money has been injected to fill in the losses over the last four years.
This year, the organization can't stay in the business without an additional 5 billion won in financial aid.

Lee Kyeong-yong / Councilor
The organization has brought the business to the point where the business cannot be sustained without the province's financial assistance or subsidy. the JTO is obviously responsible for the failure.
<씽크:이경용/제주도의회 문화관광체육위원장>
"오죽했으면 제주도의 보조금이나 금융차입금 없이는 경영을 정상화시킬 수 없는 그런 상황까지 왔습니다. 책임소재는 분명히 가려야 할 부분이 있다고 생각합니다."


The dying duty free shop opened for the cause of boosting the tourism industry, but the JTO's unwise and hasty determination to open it has brought a huge loss and added burden to taxpayers.
This could rock the foundations of the public corporation.

Joseph Kim, KCTV