The state audit agency said earlier that the Korea Customs Service, which is in charge of granting permits, had selected certain operators upon request from high-ranking officials related to Choi and even revised the procedures to give them an edge.

Since the Moon Jae-in administration took office in May, the government has suspended the entire process for duty-free licensing.

Finance Minister Kim said the revised scheme will be announced before the end of September.

The South Korean duty-free business had enjoyed a heyday for years, but it seems to have entered a downturn cycle due to a steep drop in Chinese tourists. The drop stems from the protracted diplomatic row with China over Seoul's decision to install a US missile defense system on its soil. (Yonhap)