The average price of 126 sofas and storage closets available at IKEA’s official website in Korea is 522,717 won (US$473), 14.8 percent to 19.5 percent higher than those of the same products available on its websites in the United States, Germany, and Japan. The average price is 455,344 won (US$412) in the United States, 453,737 won (US$410) in Germany, and 437,578 won (US$396) in Japan. The comparison is based on the foreign exchange rate of June 15.
In Korea, no less than 100 out of the 126 products are available at prices higher than those in other countries. For example, the Soderhamn Corner Section Isefall Light Turquoise sofa 99 cm in width, 99 cm in depth, and 63 cm in seat width is sold for 470,000 won (US$425) in Korea, while the price is 223,460 won (US$202) in the U.S., 376,620 won (US$341) in Germany, and 407,048 won (US$368) in Japan.
IKEA explained that the difference in price is because it considers every country as an independent market. The furniture company added that the prices of its products are determined based on countries’ lifestyles, its market analysis results, areas of production, distribution channels, currency factors, tariffs, VATs, supply quantity, the numbers of stores, and other factors.