Yesterday, Hyundai Duty Free, a prominent South Korean duty-free retailer, has announced plans to withdraw from its Dongdaemun branch in Seoul. This decision comes amid ongoing financial challenges, with the company reporting cumulative losses amounting to 348.6 billion KRW (approximately 270 million USD) since its establishment in 2018.
In addition to closing the Dongdaemun location, Hyundai Duty Free is considering reducing its operational space at the Trade Center branch. Currently occupying the 8th to 10th floors, the company plans to retain only the 8th and 9th floors—dedicated to luxury and beauty brands—while returning the 10th floor to the department store.
It is stated that Hyundai Duty Free is a shopping paradise for beauty consumers. Various renowned beauty brands, such as La Prairie, Lancôme, Guerlain, and Decorté, are available at this duty-free store.
These strategic adjustments reflect broader challenges within the duty-free industry. Other major retailers have also been restructuring; for instance, Shinsegae Duty Free closed its Busan branch in January 2025, and Lotte Duty Free reduced its Jamsil World Tower store by 35% in September 2024.
The difficulties faced by downtown duty-free stores are partly attributed to the rise of alternative retail channels such as Daiso, Olive Young, and Musinsa. Notably, in January 2025, foreign sales at downtown duty-free shops declined by 57.3% year-on-year, totaling 432.1 million USD, according to the Korea Duty Free Shops Association.
