[THE INVESTOR] Hotel Shilla will spend 186.5 billion won (US$166.74 million) for its duty-free store that is scheduled to open at Hong Kong International Airport in December.

Shilla duty-free store at Singapore’s Changi Airport

The hotel and duty-free operator will issue corporate bonds worth 200 billion won to finance the investment. Hotel Shilla won the license last month and will sell cosmetics and accessories. It plans to maintain the outlet until September 2024, it said in an investment prospectus.

With the opening of the store, Hotel Shilla will have a presence in Asia’s three largest airports including Incheon and Singapore. 

The company has loaned 86.5 billion won to its wholly owned subsidiary Shilla Travel Retail Hong Kong and will also fund the remaining 100 billion won.

By Hwang You-mee (glamazon@heraldcorp.com)