International Law

Bad News for Flashers and Sex Pests and Foreign Investors

Ripoff Korea makes it much more expensive to be a “Burberry Man” (the Koreanism for a flasher, based on the best-known brand of trenchcoat here) in Seoul—up to 52% more expensive than the appalling cost in Tokyo. The Maeil Business reports on the shocking cost of living in Korea:

Maeil Business Newspaper and KOTRA (Korea Trade-Investment Promotion Agency) jointly investigated commodity prices in Seoul, New York, Tokyo, London, Paris, Beijing and Hong Kong in January to discover a women?s trench coat from a major luxury brand, Burberry, to be most expensive in Seoul at 1.7499 million won. Even considering the difference in material and design, the retail price of the trench coat in Korea was overwhelmingly higher than those in London (1.14 million won), Paris (1.2 million won) and Tokyo (1.1476 million won).

McDonald?s Big Mac, the commonly used international price index, is sold at 2,900 won in Seoul, 525 won higher than 2,375 won in Japan and twice more than Beijing?s 1,520 won.

Starbucks Americano (237?) was sold at 2,800 won in Seoul, also more expensive than the same drink in New York (2,166 won) and Tokyo (2,090 won).

Compared against a year prior, Korea?s high commodity prices have not budged down. Last year, the trench coat was priced 1.75 million won in Seoul and 1.01 million won in Tokyo. Although the year-on-year price change in each country has slightly narrowed to 1.7499 million won and 1.1476 million won, the price in Seoul has stayed put.

McDonald?s cheeseburger was also more expensive in Seoul than in Japan—1,300 won vs. 774 won. The price gap between Korea and Japan once again failed to slim this year with the Big Mac priced higher in Seoul at 2,900 won against Japan?s 2,375 won.

The price difference in cars was more significant. Synonym for a luxury car, Mercedes-Benz S500 was sold for 206.6 million won in Korea, more than twice the price in New York (83.1 million won) and almost twice that in Tokyo (105.7 million won).

Cost of living contributes mightily to multinationals’ choices of where to place their “hub”. While few expatriate managers are clamoring to buy US$1800 Burberry trenchcoats, the Big Mac and cuppa joe are essential to keeping foreigners happy. (Here’s a tip: At lunchtime, McDonald’s has W3000 “value meals” which make the drink and fries next to free.)

If you feel us attorneys’ hourly rates are too high, please understand: We’re getting ripped off too.

Full post as published by Korea Law Blog on February 21, 2008 (boomark / email).