Eugene Corporation, a midsize Korean construction material company, will join the bid to win a license for an urban duty-free store in Seoul, the company said on Thursday.

“Eugene has been considering entering the duty-free business internally. I believe that we have the management ability and investment capability to operate the store,” Yim Jin-taek, a Eugene spokesman said.

The company plans to house a 9,900-square meter duty-free store in the former headquarters of local broadcaster MBC. The building, located in Yeoido, western Seoul, has been lying vacant since MBC moved its headquarters to Sangam-dong last year.

To create a “Korean wave” duty-free shop, Eugene signed a memorandum of understanding with MBC to cooperate on the development of tourism and culture content business if Eugene secures the license.

“By utilizing MBC’s existing broadcasting facilities in the building, we also plan to open a hotel and concert hall to create synergy with the duty-free shop,” Yim said.

According to the company, the site has a location advantage as it is close to the airports.

Eugene will bid for a slot allotted to small and medium firms. The process is being managed by the Korea Customs Service, and will start in June.

Large enterprises such as Shinsegae, Hyundai Development Co. and The Galleria have expressed their intention to join the bidding for the other two slots reserved for large conglomerates.

Korea’s urban duty-free market is estimated at around 3.2 trillion won ($2.9 billion).

By Park Han-na  (hnpark@heraldcorp.com)