Lotte, Shilla fined for duty free collusion

By Park Hyong-ki

The Fair Trade Commission (FTC) imposed fines of 1.8 billion won on Lotte Duty Free and Shilla Duty Free, according to the antitrust agency, Wednesday.

The two duty free giants colluded by agreeing to not offer discounts on consumer electronics during their special sales promotion events.

Due to low margins on those products, including digital cameras and mobile phones, the two carried out their agreement nine times between September 2009 and May 2011.

The FTC will impose its disciplinary measures against Lotte Hotel locations in Seoul and Busan, and Lotte DF Retail as they operate Lotte’s duty free stores.

Shilla Hotel, which operates the Shilla Duty Free shop, will also face regulatory sanctions.