The government decided to allow local retail conglomerates to open five new duty-free shops in major cities including Seoul as part of efforts to stimulate domestic consumption and promote the tourism industry.

The Finance Ministry made the decision on Tuesday during a meeting of a relevant committee at the Seoul regional office of the Public Procurement Service. 

The government will issue licenses to local retail conglomerates to open three duty-free outlets in Seoul, one in Incheon and one in the southwestern city of Gwangju.

After receiving applications starting this month, the Korea Customs Service is scheduled to select the winners in November.