Why are American products so expensive in South Korea?
I was teaching in South Korea recently and noticed the extravagant prices on American and other Western products. For example, a cooking pot from USA costs 200$ while in Canada (my country) it's only 40$! Other things are the same: Pizza Hut costs 45$ for a medium pizza, salad and drinks. In Canada, around 25$ for the same thing! Clothes are even worse: a Lacoste shirt costs 250$. The same shirt is 90$ in Canada. It can't just be the import taxes, shipping costs, or the fee for using an American logo or brand name. What is this all about? It seems like the USA is deliberately gouging extra money out of the Koreans because the locals simply don't know any better and think that's a normal price. This also can't be explained by salary differences. I'd understand if Koreans made three times more per hour than Americans, but that's not the case. In fact, they make much less per hour! The minimum wage adds up to 4$ US!! Can anyone enlighten me on this?
Other - Business & Finance - 1 Answers
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It could be the importer or the store owner making a huge profit. Or it could be a way to encourage Koreans to buy Korean.
