South Korean retail giant Shinsegae said Tuesday it will open a new duty-free store in downtown Seoul in April after facility renovation, stepping up its efforts to lure customers away from its bigger rivals.

After beating SK Networks to take over its Seoul license on Saturday, Shinsegae Duty Free has started preparations to open a new outlet at its flagship department store in Myeongdong, a major shopping district in the capital.

It is the first time for Shinsegae to open a duty-free store in the capital, taking advantage of a new law that requires existing operators to renew their licenses every five years through an open competition.

Shinsegae's store is located less than a 10-minute walk from Lotte's main duty-free shop, South Korea's largest store by sales, and about 3 kilometers from the second-largest outlet, The Shilla Duty Free Seoul.

The owner of No. 1 discount chain E-Mart said talks have been under way with foreign luxury brands to host their stores and hire new staff, while preparing for facility renovation.

The company said it will open a large parking space that can accommodate up to 50 large buses as the Myeongdong area is already filled with tourists.

South Korea's duty-free market has grown to the world's largest on the back of a rising influx of Chinese travelers, emerging as the main growth driver in the retail sector amid a slowdown in Asia's fourth-largest economy.

Last year, the six duty-free stores across the capital, mostly dominated by Lotte, posted combined sales of 4.4 trillion won ($3.76 billion). Sales by the Lotte Duty Free branch in Myeongdong accounted for a whopping 45 percent of the total. (Yonhap)