King Power

The King Power International Group is a Thai travel retail group, based in Bangkok. The chairman and CEO was Vichai Srivaddhanaprabha until his death in October 2018. He was succeeded as chairman by his son, Aiyawatt.

King Power's cash cow is the proprietary concession of Thailand's duty-free business."[2] The company is the largest duty-free retailer in Thailand. Its duty free shopping mall in Bangkok's central business district covers over 12,000 m2[3] and it has branches at Suvarnabhumi Airport and Thailand's other major airports. In 2015, King Power launched an online site selling duty-free and duty-paid items.[4]

History

King Power began in 1989, with a license granted for Thailand's first downtown duty-free shop at Mahatun Plaza.[5]

Allegation of wrongdoing

In 2017, King Power was accused of failing to pay the Thai state 14 billion baht (£327 million) from the operation of their airport duty-free shop monopoly. The original agreement, signed in 2006, requires that 15 percent of duty-free shop income be paid to the Thai government. The lawsuit alleges that King Power colluded with airport employees to pay the government only a three percent slice of duty free takings. The lawsuit was filed by a deputy chairman of a government anti-corruption subcommittee. Two other King Power group companies owned by the Srivaddhanaprabha family were also accused of corruption in the legal action, along with a senior King Power executive. Fourteen officials working for Airports of Thailand PCL (AOT) have also been named in the suit.[16] King Power immediately dismissed allegations of corruption relating to its contract with state-owned AOT.[17] The allegations were described as "absolutely untrue" by Dr. Nitinai Sirismatthakarn, President of AoT, who explained the allegations were based on a misunderstanding of contract modifications negotiated by AoT. In effect, fee percentage was effectively reduced, but there is a lack of understanding of this modification in the contracts as rate does not apply to the same calculation structure. Instead of charging 15 percent of profit, AoT receives three percent of turnover, resulting in increased fees received by AoT (seven times previous fees). "This absolutely cannot be considered as damage to the state", Dr. Nitinai said.[18] The Central Criminal Court for Corruption and Misconduct Cases in Bangkok accepted the case in November 2017, and said it would begin to hear witnesses on 12 February 2018.[19] In August 2018, the court said it would extend a hearing into accusations of graft against AOT and King Power, delaying a decision on whether to take up the case. The court will hold another hearing on 4 September 2018, summoning the AOT president to clarify the AOT's duties, revenues, and regulations governing commercial activity.[20] The Central Criminal Court for Corruption and Misconduct Cases dismissed the case on 18 September 2018, ruling that the plaintiff "was not an affected party, therefore he cannot sue in this case."[21]

Philanthropy

Football in Thailand

2017–2022

King Power's aims to promote Thai youth's football potentiality in a comprehensive manner ranging from donate 1 million footballs to youth across Thailand, to installing an international-standard artificial grass football pitch for 100 schools and communities across Thailand within 5 years. The country's leading duty-free retailer has launched a countrywide campaign called “Sport Power” that aims to develop football skills of the children.[23]

King Power has been continuously contributing to Thai football with the Fox Hunt project, which gives scholarships to talented youngsters who are trained at the Leicester Football Academy in England. Other King Power football programmes include Leicester City Football Clinic and King Power Cup.[24]

In November 2019, Aiyawatt Srivaddhanaprabha have agreed to fund a new training centre for The Football Association of Thailand. King Power will cover 100 per cent of the building costs, estimated at 500 million baht. The training centre will be built on a 192,000 square-metre site in the Muak Lek District of Thailand's Saraburi province. The plans are part of the country's 20-year football development ‘master plan' of The Football Association of Thailand.[25] The 20-year master plan of FA Thailand are built National training centres across every region of Thailand (Southern Region, Northern Region, Northeastern Region, Central Region, Eastern Region and Western Region).[26]

100 football pitch & 1 million footballs

Fox Hunt project

Muak Lek National training centre

2017–2022

King Power Thai Power

A corporate social responsibility project, King Power Thai Power was launched to "inspire Thais to go further and achieve international success in various aspects, from sports to music and community".[27] The project is focused on sport, music, community and education & health.[28]

founder	Vichai Srivaddhanaprabha
area served	Thailand
key people	Aiyawatt Srivaddhanaprabha (Chairman & CEO)
industry	Duty-free shop
revenue	€876 million (2022)‡R1R‡
num employees	7,000
subsid	Leicester City Oud-Heverlee Leuven
homepage	www.kingpower.com www.kingpoweronline.com
foundation	1989
location	8 King Power Complex, Rangnam Road, Phaya Thai, Ratchathewi, Bangkok 10400 Thailand

History

Stores

Allegation of wrongdoing

Close ties to various Thai governments

Philanthropy

Football in Thailand

2017–2022

2017–2022

King Power Thai Power

See also

External links

References