SK Networks, an affiliate of Korea’s fourth-largest conglomerate SK Group, jumped into the heated competition to win a license to operate urban duty-free shops in Seoul.

Speaking at a news conference on Tuesday, SK Networks CEO Moon Jong-hoon said it will create a “tourism belt” encompassing its eastern and central Seoul business outlets. 

The firm already runs a duty-free store inside its Sheraton Grande Walkerhill Hotel in eastern Seoul, and hopes to add a new one in the bustling fashion shopping district of Dongdaemun in central Seoul. The tourism belt will range from the hotel to the potential duty-free store site.

“The east Seoul-east Korea tourism belt will attract 18.7 million foreign tourists over the next five years, generating 8.7 trillion won ($7.6 billion) in revenue and creating 67,000 jobs in the market,” he said. The company vowed to invest 240 billion won to upgrade the tourism infrastructure of the area.

Moon stressed that the firm has successfully operated the duty-free businesses for the past 23 years -- the sales between 2013 and 2014 rose by 46 percent thanks to the Chinese tourist influx -- and that it is ready to share its know-how with the local community.

The CEO suggested that SK duty-free store will be different from the other competing candidates -- the store will run until 2:30 a.m. “Aligning with the local businessmen greeting many late-night shoppers, we will come up with various measures to create synergy,” Moon said.

SK is expected to compete with Lotte Duty Free Store which already runs two stores in central Seoul and is awaiting the renewal of its contract, as well as Shinsegae and Doosan groups. Doosan, which is headquartered in Dongdaemun area, also suggested a duty-free store establishment in the shopping district and created a 20 billion won-fund to appeal to the customs authorities who are expected to conduct field tests before making the decision in November.

By Bae Ji-sook (baejisook@heraldcorp.com)