By APD writer Alice

Sales at South Korean duty-free stores hit a new monthly high in August, on the back of Chinese vendors who buy products in large quantities and resell them back home, according to the data from the Korea Duty-Free Shops Association.

The combined sales of local duty-free shops reached 2.18 trillion won (US$1.82 billion) last month, compared with a previous monthly record of 2.17 trillion won in March.

The sales increase came despite Beijing's implementation of a new law in January that levies taxes on small-scale vendors who sell their duty-free purchases, such as cosmetic products, to consumers back home.

But Chinese retailers are likely to continue to purchase South Korean duty-free items, which are cheaper and more reliable, despite the regulation.

Local duty-free operators have employed an active marketing strategy, including practices like handing out free gift cards to Chinese vendors -- another reason for the stellar sales figure, according to an industry source.

(ASIA PACIFIC DAILY)