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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] The rental dispute between Shilla Duty Free, Shinsegae Duty Free, and Incheon International Airport Corporation shows signs of prolonged conflict, as the airport authority has refused to accept the retailers’ request for rent reductions ahead of a second adjustment meeting scheduled for August 28.
The authority also announced it will not participate in the upcoming session, while the duty-free operators have warned they may consider closing their stores if negotiations collapse.
According to industry sources on August 13, the corporation stated during a briefing the previous day that it could not accept the rent reduction request due to potential breaches of fiduciary duty or the Act on the Aggravated Punishment of Specific Economic Crimes, as well as fairness concerns with other operators.
The authority explained, “Legal advice concluded that the conditions for rent reduction under Article 628 of the Civil Act, cited by Shilla and Shinsegae, have not been met. Agreeing to the adjustment could risk violating fiduciary duty laws and create fairness issues with other bidders.”
During the open bidding process, Incheon Airport’s minimum acceptable bids were ₩5,346 per square meter for DF1 (perfume and cosmetics) and ₩5,616 for DF2 (liquor and tobacco). Shilla Duty Free won with a bid of ₩8,987 (168% of the minimum) and Shinsegae Duty Free with ₩9,020 (161% of the minimum), both significantly above the base prices.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
