Hotel Shilla Co., on Tuesday won the right to operate a duty-free shop at Gimpo International Airport in Seoul, the local committee in charge of the selection said.

Hotel Shilla, an affiliate of the country's top conglomerate, Samsung, defeated Lotte Group in the bid, after the two were chosen as the final candidates last month by the Korea Airports Corp (KAC).

Hotel Shilla is now entitled to operate the 633.4-square-meter liquor and tobacco duty-free shop at the airport over the next five years, according to the Korea Customs Service. Its annual sales are estimated at 60.8 billion won ($54.85 million).

 

The latest bid came as the KAC's contract with local mid-sized retailer, City Plus Co., was cancelled in April due to its overdue rental payment.

Of duty-free shops at the Gimpo airport, located in western Seoul, the sections for cosmetics and fragrance are run by Lotte Group.

"As the world's unique firm that operates duty free shops at three major Asian international airports, we will provide best products and services to local and international customers at Gimpo International Airport," a Shilla official said.

Hotel Shilla manages so-called Asia's troika duty free stores at Incheon International Airport in South Korea, Singapore Changi Airport, and Hong Kong International Airport. (Yonhap)