Shilla Duty Free Files Lawsuit Against Incheon Airport for Over 100 Billion Won… "Excessive Liquidated Damages"
Lawsuit Filed Last Month Seeking Return of 106.5 Billion Won in Unjust Enrichment
Hotel Shilla: "We requested a partial refund because the withdrawal penalty was excessive"
[Edaily Reporter Kim Jeong-yu] #Hotel Shilla has filed a lawsuit worth over 100 billion won against Incheon International Airport Corporation (Incheon Airport). The reason cited is that the penalty for withdrawing from the Incheon Airport duty-free shop was set at an excessive amount. Chinese tourists browse the duty-free shop at the Shilla Duty Free Seoul branch in Jung-gu, Seoul. (Photo = News1) According to industry sources on the 11th, Hotel Shilla filed a lawsuit against Incheon Airport on the 20th of last month, seeking the return of 106.5 billion won in unjust enrichment.
Shilla Duty Free, operated by Hotel Shilla, secured the operating rights for Incheon Airport’s DF1 zone (perfumes, cosmetics, alcohol, and tobacco) in 2023. However, as the duty-free market has faced a slump in recent years, the company had requested a 40% reduction in airport rent.
In response, a court proposed a settlement last year that called for a 25% reduction in rent, but Incheon International Airport rejected the offer. Ultimately, Shilla Duty Free withdrew from the DF1 zone after paying a penalty of 190 billion won.
It is reported that this lawsuit was filed based on the judgment that the penalty paid at the time was excessive. A Hotel Shilla official stated, “We claimed a partial refund because the penalty was excessive.”
Meanwhile, the DF1 zone, from which Shilla Duty Free withdrew, is currently operated by Lotte Duty Free.
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