SEOUL, KOREA - The world's largest furniture retailer IKEA will set up shop in Korea. Once the Dutch company with Swedish origins opens a 78,000-square-meter store near the Gwangmyeong KTX station in Gyeonggi Province by next year, the domestic furniture industry would be affected in a profound way.
As finished furniture is not subject to tariff duties, IKEA may import low-cost furniture products from overseas without paying any tariffs. In contrast, however, local furniture makers must pay 8-percent tariffs for raw materials and intermediate goods such as particle boards. The furniture industry contends that this is a case of "reverse discrimination" and demand abolition or a cut of the tariffs by more than a half. To this, the government responded negatively as this would affect adversely the domestic board industry.
The domestic furniture industry had said last October it would organize a furniture industry development committee and cope with problems related to tariff questions and IKEA's entrance. But after seven months, there has been little activity. An industry official said, "There has been no committee meeting since March this year."
저작권자 © Korea IT Times 무단전재 및 재배포 금지
