It seems there's more than just runway trends going on in Korea this season. A different kind of retail trend has emerged as a budding number of consumers are making their luxury brand purchases elsewhere…the European markets. The demand for luxury goods is up...but the desire to keep more cash en-pocket hasn't waivered.
Recent reports have illustrated how Koreans leaving the country to travel abroad are attempting to avoid the customs taxes on purchases over $1000 won by either coming back into the country doing one of three things: 1. Taking their chances that they won't be screened and not reporting the purchase; 2. Under-reporting the price paid; or 3. Completing custom forms in advance stating they already had the item purchased abroad when they left Korea.
For clarity and illustration, the infamous 2.55 quilted Channel bag we all have seen and salivated over sells for 6.07 million won ($6,700) in Korea, while correspondingly in the US and France its price sits at 4.85 million won and 4.71 million won (quite a substantial price difference.)
An increasing number of tourists would like to enjoy the immunity of tax exemption (wouldn’t we all?) Yet countless travelers attempt to evade paying taxes, resulting in numerous dishonest tricks, such as exchanging the item online to receive a higher refund or re-selling the item and making a profit.
Has this been an ongoing issue only coming to light now or is this trend new because of the economy? Let us know @PierceMattiePR.
Posted by Briana McGee on January 19, 2012 8:35 PM
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