Price Bubble

 

It has been found that Korean consumers pay up to 10 times more expensive prices for the same products than non-Korean consumers do. According to the Seoul Economic Daily, this was confirmed with 35 products in the six categories of food and pharmaceuticals, fashion goods and accessories, consumer electronics and household items, infant goods, beauty care products, and luxury brand goods. The targets of comparison were all of those available at Amazon, and only one out of the 35 products was cheaper in Korea.

In particular, the price gap reached close to 10 times for some infant goods and up to four times for imported food, pharmaceuticals, and beauty care products. The difference was around 100 percent for home electronics and padded jackets.

This price bubble of imported products can be attributed to the margins of wholesalers and retailers added in the supply chain. Another cause is the common idea that Korean consumers prefer more expensive premium brand goods.

However, an increasing number of Korean consumers are turning their eyes toward overseas direct purchases these days to be smarter consumers. Korean companies are trying to turn them back by means of extensive discount events, but the exodus is likely to further spread with time. Under the circumstances, the Korea Consumer Agency is going to set up an organization for protecting such consumers in January next year.

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