The Korean government is considering allowing local retailers to open as many as four more duty-free shops in Seoul in a bid to capitalize on an influx of Chinese tourists, informed sources said Sunday.
Competition is heating up among retail giants here to win the licenses to enter the lucrative market amid sluggish domestic spending.
The Korea Customs Service plans to make its final decision within this month on whether to issue additional licenses, according to the finance and culture ministries.
The number of foreign tourists in Seoul rose by 15.7 million on-year in 2014, official data showed.
Especially, Korea's mega-hit drama "Descendants of the Sun" has added fuel to the so-called Korea Wave in China, attracting travelers from the neighboring country.
"There is a view that it's right to increase the number of duty-free shops in Seoul to the maximum in order to ride on this opportunity," said an official on the government's task force on improving the duty-free shop system.
Some call for four additional duty-free shops, but relevant authorities are in consultations on ways to grant up to four more licenses, according to the source.
Government officials said they will put the top priority on promoting the tourism industry and boosting the economy.
"Nothing has been decided yet," an official said. "The duty-free shop business is not an industry subject to regulations on protecting small and medium-sized firms. Although competition among relevant firms needs to be considered, what's more important is to promote tourism."
Another government official also pointed out that it does not matter "if the cat is black or white" should it help draw foreign tourists.
Last year, the government gave out new licenses to HDC Shilla Duty Free, Hanwha Galleria and SM Duty Free to open outlets in Seoul.
Lotte Duty Free and SK Networks lost out in their bids to renew their licenses to Doosan and Shinsegae. (Yonhap)