In spite of an increase in overall sales in the last quarter, Hyundai Department Stores of Korea showed a downturn of operating profit of -32.7% due to heavy losses from the new duty free business which opened last November. The increase in sales was due to the duty free operation in the Gangnam store which, like that of its competitor Shinsegae's Gangnam store operates at a loss. Overall, Hyundai's duty free operations run at a loss while Shinsegae manages to be profitable. This is probably because Shinsegae has a store in the key tourist area of Myeong-dong whose profits offset losses from stores in other areas. Hyundai will need to grow its duty free business whose share is estimated to be around 2% currently. The core department store business is apparently profitable.