Hyundai Duty Free to close Dongdaemun store and focus on Trade Center operation

Hyundai Duty Free today announced the closure of its Dongdaemun, Seoul store, effective 31 July, the latest victim of profoundly challenging market conditions in Korean travel retail.

Apr 1, 2025 - 12:11

Hyundai Duty Free to close Dongdaemun store and focus on Trade Center operation

SOUTH KOREA. Hyundai Duty Free today announced the closure of its Dongdaemun, Seoul store, effective 31 July, the latest victim of profoundly challenging market conditions in Korean travel retail.

The travel retailer, part of Hyundai Department Store, will instead focus its downtown duty-free business on the remaining Trade Center branch in Gangnam, Seoul. But even that store will be reduced from three floors (8 to 10) to two (8 and 9).

Revealing the changes in a document called ‘Turnaround strategy for the duty-free business’, Hyundai Department Store spelled out a combination of factors that have hit Korean downtown travel retail hard.

These include China’s economic downturn; a growth in FIT travel at the expense of group tours; China’s surging ‘Guochao’ (national wave) trend that has seen millions of consumers, particularly younger generations, favour Chinese brands; intensive competition; and excessive pricing due to a reliance on daigou resellers.

In a press release issued across the Korean media, including Chosun Biz, Hyundai Duty Free commented: “Despite numerous crises since the company’s establishment, we did our best with expectations for a market recovery. However, the internal and external business environment, including changes in the Chinese market and consumption trends, is on the decline.

**Source: Hyundai Department Store {click on images to expand}**

“After much deliberation, we have decided to pursue management efficiency to overcome the crisis in the overall duty-free industry, improve our management situation and resolve our deficit.”

The company continues to operate four stores in Incheon International Airport terminals 1 and 2.

An open and shut case

Hyundai Duty Free’s shutting down of its Dongdaemun business is not the first downtown duty-free closure in the ailing Korean travel retail sector and almost certainly will not be the last.

Hyundai Duty Free’s closure follows hot on the heels of Shinsegae Duty Free shutting down its Busan downtown duty-free store (in Shinsegae Centum City) on 24 January.

Other closures over recent years include:

Hanwha Galleria Duty Free, Yeouido, Seoul – September 2019
Shinsegae Duty Free, Gangnam, Seoul – July 2021
Lotte Duty Free COEX, Seoul – September 2022

**Hyundai Department Store rings in the changes as it seeks a drastic turnaround of its duty-free operations**

**The company spells out how it intends to revive the business. Note the enhanced focus on luxury and the reference to a still-important daigou reseller trade.**

The company is also introducing an array of measures to boost organisational efficiency and profitability, including a voluntary retirement scheme.

**Moving upscale: Premium and luxury brands are increasingly key to Hyundai Duty Free’s performance at Incheon International Airport**

“This promotion of management efficiency is an inevitable choice to normalise the business and further promote future growth amid a crisis across the duty-free industry,” a Hyundai Duty Free spokesperson said.