Read 21878 times

  • adamwatch
  • Super Waygook

    • 337

    • February 03, 2010, 10:47:27 pm
    • seoul
Re: Why are electronics expensive in Korea?
« Reply #40 on: May 19, 2011, 01:11:56 pm »
I'm from the UK and electronics are much cheaper here. My LG laptop was W1.25m, equivalent to about 700GBP or so. It would probably have cost me double that back home.

*** You must be from a different UK, as I think Koreans pay much more than we do in England.

Adam



  • Cereal
  • Hero of Waygookistan

    • 1239

    • March 16, 2011, 12:51:55 pm
    • Earth
    more
Re: Why are electronics expensive in Korea?
« Reply #41 on: May 19, 2011, 01:38:32 pm »
I think electronics are expensive here too. Just before I came here I bought a 42" LG Plasma TV for $600 in SE Asia where I live. I needed to watch the Superbowl in a big way! I saw the exact same make and model at E-Mart in Jinju for 1 million Won. I was flabbergasted.

Phones are really expensive here too and a pain in the butt to get.

It's gotta be a form of domestic government controlled price protectionism.
"The urge to destroy is also a creative urge."
Bakunin


  • Rina
  • Adventurer

    • 53

    • October 17, 2010, 08:17:53 pm
    • Seoul, South Korea
Re: Why are electronics expensive in Korea?
« Reply #42 on: May 19, 2011, 01:50:48 pm »
I don't mean why do you think...I mean, does anybody KNOW?!
I used to think they were expensive in Australia, so I often bought online from the US or eBay.  I waited till I got to Korea to buy my girlfriend a camera assuming that like Japan I would get a good deal on a domestic product, but NO!  After buying it, I realised it was cheaper online back home. 
I thought about it again today because the Galaxy Tab is now available to buy outright in Australia for $299 (the version about to be replaced).  No contracts, no rate plans attached...just take it home for $299. 
I asked my Korean girlfriend how much it is here, it WAS KRW890 000 on sale, and now, at best you can get it for KRW550 000.  That's almost a 50% discount, but still more than the Australian RRP of $408.  THAT IS CRAZY!  For a Korean product! 
Am I missing something?!  What is the reason a Korean product can be more expensive in the country of origin, where generally most things are so much cheaper than home.

I hope someone knows.   Put me out of my misery please.
It doesn't have to do with tariffs and taxes. Electronics in Korea and Japan are more price inelastic, meaning Koreans will still buy stuff if the price goes up a little, whereas in America people are slightly more price sensitive as a whole to electronics. It was actually cheaper a few years ago to buy a Daewoo car in America and have it shipped to Korea than to buy it in Korea. Funny, right?
« Last Edit: May 19, 2011, 01:54:33 pm by Rina »


Re: Why are electronics expensive in Korea?
« Reply #43 on: May 19, 2011, 02:04:24 pm »
So, I guess all those textile factories in Vietnam and China making clothes for Youngone (The North Face) and other Korean companies don't count.  Of course Korean companies outsource. Also, domestically, electronics manufacturing companies employ a lot of immigrant workers, so just because the products are produced domestically doesn't mean they aren't underpaying their workers.

...not outsourcing them to some poor country where factory workers get paid $1 per hour.
You don't see Korean factories set up in Africa employing children to make Samsung clothes for 50 cents an hour like America does with Nike.