Overview

• Hotel Shilla disclosed via regulatory filing that it will return its Incheon T1 DF1 concession, citing unsustainable deficits and a judgment that ongoing operations have less value than liquidation.
• Shilla’s move concerns DF1 (perfume & cosmetics, liquor & tobacco) and the company intends to keep its DF3 fashion and boutiques contract at the airport.
• The exit is tentatively effective 17 March 2026, and industry reporting indicates a new tender for the DF1 concession is likely.
• Incheon International Airport Corporation rejected the Incheon District Court’s compulsory mediation proposing rent reductions of about 25% (and 27.5% for related concessions), arguing contract integrity and legal precedent.
• Rival Shinsegae Duty Free says it is reviewing its options, as both retailers face reported monthly losses of 5–6 billion won under passenger-based rent terms that could worsen if arrivals rise without stronger spending.