IKEA Korea has second highest prices among OECD nations

A survey showed that the global furniture retailer IKEA’s sales prices in Korea is higher than the average of OECD nations.

The Consumers Union of Korea converted prices of major products, which are being sold in 21 OECD countries where IKEA is in operation, using the standard exchange rates for selling in the foreign currency market. According to the civic organization on Thursday, IKEA products turned out to be priced second-highest in Korea after Sweden. When comparing based on converted prices with Purchasing Power Parity (PPP) exchange rate, which takes income level per nation into consideration, the Sweden-based furniture maker sells its products at the fourth highest prices in Korea, after Hungary, Poland and the Czech Republic.

Based on the exchange rate for selling, 44 IKEA products (89.7 percent, out of 49 sample products) are sold at higher prices in Korea than average of the OECD member nations. When it comes to prices, 35 products (71.4 percent) ranked in top five.

“The consumer union surveyed prices of only 49 out of some 9,200 products offered in Korea. Among the 49 samples, only three or four are flagship products in Korea,” IKEA Korea talked about the survey result. "We expressed our regrets that the survey was carried out without reflecting IKEA’s efforts to provide products at the lowest prices in the domestic furniture market."

kyu@donga.com