Shinsegae, one of the nation's biggest conglomerates, has given up on the opening of a duty free shop in Jeju.
The effects of COVID-19 have been catastrophic to the duty free industry, and the company believes that it will be difficult to obtain a duty free business patent for the time being.
Joseph Kim reports.

Shinsegae, one of the nation's largest conglomerates, has given up entry into the duty free business in Jeju.

As the duty free industry has been at risk due to COVID-19, the company judged that it's not likely that the government will release notification for a new duty free business patent.

Shinsegae signed a contract with a local education foundation to purchase a hotel building in (연동) Yeon Dong, Jeju City last year.

But it has decided to cancel the contract and will pay a two billion won cancellation fee.
The cancellation is made based on a provision of the contract that stipulates that the contract is to be canceled if the government does not release notification for the business patent by May 31st.

Shinsegae had planned to build the duty free shop with 7 floors above the ground and another 7 floors below the ground which covers 15,000 square meters.


The company had gone through the necessary administrative clearances including a traffic impact evaluation,while waiting for the business patent notification.
However, the preparation comes to nothing because of the COVID-19 situation.


The condition for additional duty free business patent is the increase of sales by 200 billion won or more, or the increase of the number of foreign visitors by 200,000 or more in Jeju, compared with records of the previous year.


But the number of foreign visitors has dropped 99 percent and Lotte Duty Free and Shilla Duty Free shops on the island have been temporarily closed due to poor performance.


However, Shinsegae is leaving the door open for a future duty free shop opening.
It announced that it can make a second attempt for the business once the international and national situation allows.

Shinsegae's attempt to get a duty free business patent following Lotte and Shilla has been frustrated by the global pandemic.

Joseph Kim, KCTV