Controversial IKEA

 

The Fair Trade Commission (FTC) is currently investigating Swedish furniture company IKEA, which is embroiled in controversy over its high price policy.

Jang Duck-jin, the head of the FTC's consumer policy bureau, met with reporters on Nov. 24 and said, “We are comparing domestic IKEA sales prices and their overseas prices through consumer groups, and will provide comparable information on how much different the prices are in distribution channels such as supermarkets, department stores, specialty stores, and online sites, because we hear that IKEA is currently using a high price policy in South Korea.”

IKEA was established in 1943 in Sweden as a home furnishing company, and is now a global furniture giant with over 345 stores in 42 countries. It is scheduled to open the first IKEA store in Gwangmyeong City in Gyeonggi Province, South Korea.

The FTC has been analyzing the prices of related furniture while anticipating that the prices of domestic furniture companies will dip when IKEA enters the domestic market. However, the FTC explained that there hasn't yet been any price lowering observed, since the impression is that IKEA will charge high prices for its products.

Jang stressed, “The investigation into IKEA is for providing price comparison information, not for giving a penalty.”

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