The Korea Herald

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[Editorial] Divisive idea

Plan for duty-free on arrival should be shelved

By Korea Herald

Published : July 22, 2013 - 20:05

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Government officials are said to have recently decided to shelve the decision on whether to allow duty-free shops to be set up in the arrivals area of Incheon International Airport.

During closed-door consultations last week, participants agreed to take more time to reach a conclusion on the controversial issue, according to some government sources. A formal announcement is to be made this week after a meeting of vice ministers, which will be presided over by the chief of the Office for Government Policy Coordination.

Since Incheon airport, the main gateway to Seoul, opened in 2001, there have been many discussions on whether to permit duty-free shopping in arrivals areas. A ruling party lawmaker submitted a bill to the National Assembly last November to enable the airport to introduce arrival shops after five similar legislative bids were aborted in the past decade. The split of views was mirrored in different answers by top administration officials to the lawmaker’s question on the matter during a parliamentary session in June.

As this paper has noted, there seem to be more serious reasons for having to be more cautious about giving a green light to arrivals duty-free shopping. Some benefits expected from the measure are likely to be more than offset by the problems it may cause.

Proponents for the idea argue it would induce Korean outbound travelers to spend more money at home, relieving them of the discomfort of carrying on items purchased from departure lounge shops throughout their trips. They also say the measure would make it more convenient for foreign visitors to do duty-free shopping in the country.

But it would be unfair to give overseas travelers more opportunities to buy duty-free items to be consumed at home, while people who cannot afford to make trips abroad should pay customs and value-added taxes to purchase them. It is also unlikely that a large number of foreign visitors will use the stores, as there are many other places for duty-free shopping during their stay here.

The introduction of arrival shops might also increase inconvenience for passengers, taking them more time to pass through the immigration and customs areas. It would be unwise for Incheon airport to risk its title of the best airport in the world, which it has kept for eight consecutive years, to gain some additional revenue.

Government sources say this week’s meeting is likely to end up with an announcement that a final decision will be made by the end of the year after looking for measures to deal with possible negative consequences. But it would be hard to work out solutions.

The more desirable way may be to end the debate and discard the idea now to stop the longstanding cacophony between ministries over the issue, which has eroded public confidence in government policies.