Korean Job Discussion Forums

[crazy_arcade]

The won has gained (albeit small) for several days now.

If the won gets better do you think importers will bring prices down to relfect the change?

[bogey666]

[M-Tea]

I'd sort of have to agree with the first response.

Korea, among other countries, has a habit of keeping prices high even after things have recovered or gone back to normal.

Taxi prices rose because the world cup was held in Korea. They didn't go back down after.

Economically speaking, it does make a little sense. If the market can bear the price, then why not? Also remember that people will have more money if the economy recovers. If they can afford it now, later will be no problem.

This isn't to say that Korean economics make a whole lot of sense in the first place. Building two nearly identical stores/restaurants right next to each other is a common practice here. The mentality may be along the lines of "crushing" the competition but seems more like shooting yourself and your competition in the foot. Just my 2 cents.

[Big Pun Lives]

Prices rarely come down for items in the Consumer Price Index (CPI). Imported goods will fluctuate depending on currency rates, but by and large most items will never go back down in price. Deflation is even scarier than high rates of inflation. Deflation caused the long term effect of the Depression. In a major economy like Korea, you will rarely see deflation.

[Robot_Teacher]

I agree, when prices rise, they stay at that level, if not going up more which they will do at some point in the future. This keeps the gravy train lubed and going for the big wheels.

When the won tanked out in October, it took 2 to 3 months for the retail market such as Gmarket to respond by raising prices on foreign products like Costco American food products sold on Gmarket. Still today, prices are creeping up on commodities and other consumables. My major expense here is cooking for myself! It's as expensive as eating out and 2 to 3 times as expensive as at home. Those individuals pulling down at least $20,000 a year take home are getting a bargain on food and energy at home.


University business and economics theories and concepts are proving to be wrong in todays economy. All that technical analysis and set of theories they feed you in B-school is a huge waste in my opinoin. Making comparisons based on prices and subjective info like how good a food tastes, acting on gut instincts, and using common sense is golden.

[Big Pun Lives]

[ChinaBoy]

Wholesale prices WILL fluctuate. Retail prices (sadly) won't.

[Robot_Teacher]

Ah right, I agree that those prinicpals of business and economics taught at uni did pull us out of a great depression, but those were very different times where people in leadership positions were more patriotic with a high work ethic to work for the good of building value in their companies and building up the USA. There were a few hiccups such as with Lustron homes sold through Sears, but most leaders were building value; not destroying it like in modern times. I agree, those financial innovations taught in uni are what makes capitalism function properly when applied and kept in check through accountability, but in modern times, we lost that.

During my college years, I felt the material was dated and had a gut instinct it would do little to enable me to do real well like those old professors, my grandpa, and others did. That knowledge is what made America big after the 1930's and what made a lot of people a fortune, but it's not applicable in for Gen X and Y to capitalize off of due to the big wheels not playing by those rules. Some of it is good for large portfolio investing and heading a corporation, but young people don't have money and status to do that, much less get in as a C-level trainee to apply knowledge such as the the weighted average cost of capital and expected future cash flow models. Things like that have no functional value for most of today's college grads.

The current hardship is a result of greed, corruption, unfettered speculation, laize faire policies, and C level people not being held accountable, but given too much freedom in their responsbilities as leaders. Their gut instint was to make money at any cost; not lead companies to profitability. C level leaders in modern times didn't manage for adding value and making a contributino of promoting long term growth that supports stable healthy careers within properly functioning companies and markets, but they only managed to line their pockets. If they did apply the principals taught in B schools, then things would be a whole lot better today.

[Big Pun Lives]

[Juregen]

[Beej]

With the amount of collusion that occurs in the Korean economy, you can forget all those basic supply and demand theories you learned in econ 101.

[Rusty Shackleford]

[ChinaBoy]