Korean Job Discussion Forums

[huck]

I guess this is to be expected, but if you go to http://www.apple.com and http://www.apple.co.kr, there's a 20% markup on the Korean Ipod Nano's...

Is that because of tariffs/import taxes, or because Koreans are just willing to pay more for goods, so they can bump the price up a bit?

[eamo]

[cangel]

They want Koreans to buy Korean. The markup is a defacto deterrent to protect domestic manufacturers.

[Gord]

[Wangja]

[cangel]

Here, lemme dumb it down a bit fer ya...

"They," is referring to Korea not Apple. The increased price is due to VAT (tax-whatever ya wanna call it) and that is a means on keeping Koreans buying Korean.

[Wangja]

So the VAT in Europe is to stop Europeans buying ...... whose products?

[Endesu]

Markups on Ipods are ridiculously low. Most smaller sellers that sell small quantities of Ipods operate on a 5-10% profit margin. Last year at christmas I sold Ipod 60gb's and earned about 7 dollars on each....

In Korea, I heard the market hasn't pushed the price down that far yet, but I seriously doubt they make much money on them, and hence would prefer to sell Korean players with a decent margin. Less trouble than Ipods too.

And you North Americans need to stop comparing prices with everywhere else! All your prices are without taxes, which is quite confusing to the rest of us. US and Canada almost always comes out the cheapest because of your low taxes and pay-for warranties schemes.

Where I come from, there is a sales tax of 25% and a minimum 2 year free warranty required by law. In Korea there is 10% and 1 year minimum. Offcourse North America will be cheaper.

Buy at home, not abroad!

[Gord]

[CeleryMan]

[huck]

I'm going to go with the sales tax as the answer....In Korea, it's already included in the price..In the USA, it's not.....

That's good enough for me..

[cangel]

Jeezusss Krist you guys like to split hairs... Heaven forbid make a mistake regarding VAT vs. tax vs whatever. The FACT is that buying products from outside the country at a value greater than USD150, incurs a 15% tax/vat/whatever! I lived in Japan for 6 years and never ONCE paid a tax, ANY kind of tax on imported goods. I lived in Germany for 2 years and NEVER paid such a tax there either. The fact that Korea has such a tax, I construe to mean, buy local! Not that frikin' hard to understand! Additionally, foreign made goods retailing in Korea also get socked with taxes that domestic products don't ever see. Call it a luxury tax or whatever, I call it protecting domestic markets and borderline socialist.

[nick_shawyer]

[Gord]

[cangel]

You have way too much time on your hands and yes you are splitting hairs, and you're even splitting hairs regarding splitting hairs.

Let me restate. I NEVER paid an additional tax on ANYTHING I ordered and subsequently imported to Japan. I made NO mention of a Japanese retailer. NONE. Nor am I or was I referring to imports for retail.

Now, are we talking about personal items or are we on commercial items like you sorta sequed into? In Korea, items you import with a value over USD 150 incur a 15% tax. Easy. Simple. I have NO idea about commercial imports but I'm sure Korea, the hub of Asia, taxes... Anyway. Oh, and the Japan link, mentions nothing of currency value or whether those regulations apply to commercial of personal imports. But I can venture a guess and say that it refers to imports for retail and NOT for personal use. However, if you import 5000 shirts for "personal use," I'm pretty sure you'll get taxed.

I can't believe I've wasted so much time on such a simple frikin' topic. Get a grip buddy. Hopefully I will do the same.