China's duty-free shopping habits spur bond sales in S Korea

Seoul

HOTEL Shilla Co and Shinsegae Co are among retailers in South Korea selling bonds as duty-free shopping businesses grow amid a surge in Chinese tourists.

Hotel Shilla, Samsung group's luxury hotel and duty-free shop operator, plans to raise 250 billion won (S$304.9 million) on Friday and use some of the proceeds to help fund its acquisition of a stake in US inflight retailer DFASS Group. Shinsegae, which set up a duty-free business unit last month, sold US$300 million of offshore perpetual notes on May 5.

With brick and mortar retail slack as domestic consumers rein in spending amid still sluggish economic growth, duty-free offers companies one way to tap into rising tourism. Visitors from China - home to the world's larg…