At the end of last year, South Korea’s Lotte Duty-Free announced that it will stop selling duty-free products to major Chinese purchasing agents starting this month. This decision comes as Lotte Duty-Free faces worsening business conditions, with a loss of 92.2 billion Korean won ($4.6 million) in the third quarter of 2024. Data shows that, in the first three quarters of 2024, the combined losses of four major duty-free companies—Lotte, Shilla, Shinsegae, and Hyundai—totaled 135.5 billion Korean won ($6.76 million). Although ending its cooperation with Chinese purchasing agents could lead to a significant drop in sales, Lotte believes this adjustment will help optimize its business structure and improve profitability. It is reported that purchasing agents accounted for about 50% of Lotte Duty-Free’s sales last year.