Doosan quit its Doota duty-free business after 70 billion won of losses in 3.5 years

Doosan Group said on 29 October 2019 that its board had decided to pull out of the duty-free business because of declining sales and intensifying competition. Doota Duty Free had launched in May 2016 and, since then, had logged more than ₩70 billion ($60 million) in aggregate losses. The group said it would discuss with the customs agency when to close its outlets.

Doota had managed a turnaround in 2018, but Doosan said it was pessimistic about long-term profits. A group official cited a declining number of Chinese visitors and fierce competition. Korean duty-free operators had suffered a sharp fall in Chinese tourists during a diplomatic row between Seoul and Beijing, when China banned its travel agencies from selling Korea-bound package tours.

The Korea Times noted that Doosan's exit followed Hanwha Group's announcement earlier that April that it was shutting its own duty-free business, citing increased losses and fierce competition.

Over ₩70 billion (about $60 million) in accumulated losses since May 2016

Chinese visitors were a major customer base for Seoul duty-free shops and their number fell after Beijing restricted package tours.

More operators competed for fewer shoppers, which made it hard for a newer entrant to earn a profit.

Even after the 2018 turnaround, the group saw no route to long-term profit.

Hanwha made the same call months earlier, which suggests the new entrants shared the problem.

A duty-free shop that depends on one nationality's tour groups can reach a turnaround and still be closed if that traffic doesn't return.

Doosan said it would work out closing times with the customs agency. The Korea Times article does not report what happened to the stores or staff afterwards.