Korean Government Pushes Back On Move To Introduce Duty Free Tobacco Sales On Arrival

Source from:  The Moodie Davitt Report 08/29/2019

Arrivals duty free retailers have been urging the South Korean government to allow tobacco product sales but face considerable government resistance, a senior Korean travel retail executive has told The Moodie Davitt Report.

SM Duty Free and Entas Duty Free, which both opened the first duty free arrivals stores in South Korea at Incheon International Airport on 31 May, have pressed the government to use an ongoing review into duty free arrivals to give their business a much-needed shot in the arm.

However, the government is highly sensitive to health and taxation issues regarding tobacco. This week it circulated a cautionary statement to the press not to report that cigarette sales in arrival shops have been approved since nothing has been decided. Any move to allow tobacco sales on arrivals will also be opposed by Korean Air and Asiana Airlines, which recently re-introduced the category onboard to boost declining sales.

As reported, early sales figures for both airport retailers were short of their targets and expectations. SM and Entas have both, therefore, been continuously urging the government to allow tobacco to be sold on arrival and to consider increasing the US$600 allowance limit currently in place for those shopping upon entry to the country.  Enditem