Hanwha Group, the country’s ninth-largest conglomerate, opened the Galleria Duty Free 63, a new urban duty-free store located in the iconic 63 City building of Yeouido, southwestern Seoul, on Monday.

It aims to generate more than 500 billion won ($430 million) in sales with annual growth of more than 14 percent.

The burgeoning duty-free unit under Hanwha Galleria Time World ― retail arm of the group ― threw open 60 percent of the 10,153 square-meter store stocked with 369 glitzy brands attracting shoppers, mainly Chinese tourists, before the official opening in June next year. The partial opening was made upon the government’s request to attract more global shoppers within the year.

“Since July 10 when we got the license for the urban duty-free store, we have been striving to meet the demands of global shoppers,” Hwang Yong-deuk, president of the company told the media before the opening.

The four-story outlet is composed of kiosks for luxury fashion, watch, jewelry and cosmetics brands, and Korean small- to midsize brands.

Some private brand products from the Gourmet494 ― high-end grocery store at The Galleria department store ― are also on display, ranging from seaweed to handmade jams. Some of the best sellers on Korean TV shopping channels are also on display while Galleria-only luxury brands are destined to hit the stores in March next year.

The duty-free store runs a membership program shared with The Galleria department store in Gangnam, the most visited retail outlet by Chinese people in southern Seoul.

Although the company is planning overseas expansion, Hwang noted that it would not be in the near future.

“We have only 18 month-experience in running a duty-free store (at Jeju International Airport). We cannot afford to hurry. First, we will consolidate our operations in the domestic market by applying for the Gimpo International Airport duty-free zone in 2016, and then Incheon International Airport in 2017,” Hwang said.

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