1/19 Topic 2 : Ministries to take on high markups on local imports

[Kain 이기호]

Ministries to take on high markups on local imports

http://koreajoongangdaily.joins.com/news/article/article.aspx?aid=2983485&cloc=joongangdaily|home|newslist1

Foreign clothes, cosmetics, watches and bags that sell for exorbitant prices will be much cheaper in the near future, according to government officials yesterday. 

The government said it plans to allow small, independent importers, known as “parallel” or “gray market” importers, to expand their operations in order to bring down the prices of products on which a few large importers have monopolies. 

The Ministry of Strategy and Finance, the Ministry of Trade, Industry and Energy and the Korea Customs Service are working together to allow gray market importers to offer consumers imported goods at lower prices than wholesale importers. The concrete measures will be announced in March, officials of the Finance Ministry said. 

A range of imported products are sold at much higher prices in Korea than in advanced countries, not to speak of their countries of origin. According to the National Council of Homemakers’ Classes, a civic group, a Louis Vuitton Alma Monogram Handbag sells for 1.56 million won ($1,477) here, 66.5 percent higher than the average price of 930,000 won in the U.S., France and United Kingdom.

Since May 2012, retailers have been allowed to import popular foreign brands like Lacoste, Toms, Levi’s and Calvin Klein. But only large retailers have enjoyed the benefits because customs rules are too difficult to navigate for small importers.

“Due to monopolies by a few importers, prices of imported goods are higher in this country than in others,” said an official at the Finance Ministry. “If parallel imports expand, competition among importers will grow, making them cut back on prices.” 

To reduce prices on imports, the government is banking on smaller independent importers, who don’t import directly from the manufacturer or brand. They can set prices lower because they usually have lower overheads than official importers, such as the big department stores, and spend less on marketing. 

A case in point is when E-Mart imported Canada Goose parkas and sold them at prices about 30 percent cheaper than domestic department stores. 

The government believes if the number of independent importers rises and they import more, price competition will push prices down overall. 

The government is also considering allowing retailers to import products in bulk from overseas discount stores like WalMart, Costco and even Internet-based malls like Amazon. 

The government plans to lower customs barriers for these importers and simplify customs procedures. The Finance Ministry plans to allow increasing imports of foreign luxury brands that are in exclusive partnerships with particular Korean importers.

1.     Have you ever experienced direct purchase from foreign online malls like Amazon, e-bay or using agent for buying products? How was it? If not, are you ready to the oversea purchase?

2.     What do you want to buy if imported goods become cheaper than now by the government’s policy?

3.     Have you ever paid too much money for your goods or services? Are you the kind of person that is reluctant to protest against the overcharge? Let’s share your tips for avoiding rip-off.

4.     Do you tend to consider online price comparison sites before you buy something and using the discount coupons, or just accept seller’s price without seeking any cost saving methods?

5.     Which one is the first priority for shopping? (Cheap and good quality, brand name for fame...) and why?

6.     What is the most expensive one that you bought by yourself? How much effort you put in for buying it?

7.     Please describe the situation that you have felt satisfaction when you buy something.

8.     Have you ever been utilizing cash book for your spending plan? Was it effective to saving money?

[Choro-이철호]

간만에 올려주신 형의 토픽....감사드립니다..ㅋㅋㅋ

[Kain 이기호]

사실 토픽 올리는거 첨인데 ㅋㅋ

[Nash(황성재)]

언제나 겸손하신 기호형~~~ 감사해요~~~ 그리고 사랑(???)해요 ㅋㅋㅋ

[chloe(엄은조)]

새해에 커밍아웃 했구나 큰결심했어

[Kain 이기호]

그래 성재야 올해는 진정한 사랑(??) 을 찾기바란다ㅋㅋㅋ

[Nash(황성재)]

커밍아웃ㅋㅋㅋㅋ 감사합니다!!ㅋㅋ

[chloe(엄은조)]

토픽감사해요

[Kain 이기호]

토픽 올리니 공부도 좀 되고 좋네요

[Kelly(박현희)]

토픽 조아조아~~수고했어 Kain!!

[Kain 이기호]

반응이 좋아 다행이네요 ㅎㅎ