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Tag: Korea

  • Korean fashion house ADLV lands in Australia this May

    Korean fashion house ADLV lands in Australia this May

    The Korean clothing brand Acmé de la Vie (ADLV) opened its first stationary store in Australia in May of this year in QV Melbourne in front of a local online shop.

    ADLV co-founders Jinmo and Jaemo Goo started the streetwear business in 2017 and opened their first store in the Korean district of Gangnam. Since then, the brand has opened more than 50 stores in Asia, partnering with Disney, Pink Fong, Kakaotalk and The Simpsons.

    ADLV’s Australian director Ying Yang said the company knew streetwear was a staple of Australian fashion.

    “We love to see how consumers adapt pieces to the Australian climate. Given the circumstances and the year we have all been through, we are both proud and grateful that we can continue our growth and better serve our customers on this side of the world. “

    The brand was inspired by the French passage “acme de la vie” ;, which means “the high point of life”.

    Focusing on high-end streetwear fashions like t-shirts, sweats, hoodies, accessories, and outerwear, ADLV is known for graphics and pop culture characters like the Baby Face series.

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  • Some luxury brands thriving in Korea despite pandemic

    Some luxury brands thriving in Korea despite pandemic

    Expensive luxury brands are racking up strong sales in South Korea, despite the coronavirus outbreak.

    Consumers, denied overseas travel, have resorted to spending on luxury goods instead, gaining popularity among the MZ Generation (millennials and Generation Z) in particular.

    The Financial Supervisory Service reported that Christian Dior Couture Korea Co, the South Korean branch of French luxury brand Christian Dior, generated operating profits of 104.7 billion won (US$93.6 million) last year, 2.4 times more than the previous year.

    The company reported 328.5 billion won in sales and 77.7 billion won in net income, up by 75.8 percent and 253.4 percent, respectively.

    Moncler Korea, the operator of the puffer jacket brand Moncler, generated 31.7 billion won in operating profits and 23.1 billion won in net income last year, up by 57.4 percent and 59 percent from the previous year.

    The Ministry of Trade, Industry, and Energy reported that last year’s luxury sales at major department stores jumped by more than 15 percent from the previous year.

    Out of all products sold at department stores, only products from famous foreign brands and household goods saw a rise in sales.

    There are other high-end brands, however, that failed to demonstrate better performance.

    Ferragamo Korea, the South Korean branch for the luxury shoes brand Salvatore Ferragamo, reported 4.5 billion won in operating profits last year, a drop of more than 50 percent from the previous year.

    The company generated 105.6 billion won in sales and 3.5 billion won in net income, dropping by 29.7 percent and 56.9 percent.

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  • South Korea’s LG becomes first major smartphone brand to withdraw from market

    South Korea’s LG becomes first major smartphone brand to withdraw from market

    South Korea’s LG Electronics Inc will wind down its loss-making mobile division after failing to find a buyer, a move that is set to make it the first major smartphone brand to completely withdraw from the market.

    Its decision to pull out will leave its 10% share in North America, where it is the No. 3 brand, to be gobbled up by Samsung Electronics and Apple Inc with its domestic rival expected to have the edge.

    “In the United States, LG has targeted mid-priced – if not ultra-low – models and that means Samsung, which has more mid-priced product lines than Apple, will be better able to attract LG users,” said Ko Eui-young, an analyst at Hi Investment & Securities.

    LG’s smartphone division has logged nearly six years of losses totaling some $4.5 billion. Dropping out of the fiercely competitive sector would allow LG to focus on growth areas such as electric vehicle components, connected devices, and smart homes, it said in a statement.

    In better times, LG was early to market with a number of cell phone innovations including ultra-wide-angle cameras and at its peak in 2013, it was the world’s third-largest smartphone manufacturer behind Samsung and Apple.

    But later, its flagship models suffered from both software and hardware mishaps which combined with slower software updates saw the brand steadily slip in favor. Analysts have also criticized the company for its lack of expertise in marketing compared to Chinese rivals.

    While other well-known mobile brands such as Nokia, HTC, and Blackberry have also fallen from lofty heights, they have yet to disappear completely.

    LG’s current global share is only about 2%. It shipped 23 million phones last year which compares with 256 million for Samsung, according to research provider Counterpoint. In addition to North America, it does have a sizeable presence in Latin America, where it ranks as the No. 5 brands.

    While rival Chinese brands such as Oppo, Vivo, and Xiaomi do not have much of a presence in the United States, in part due to frosty bilateral relations, their and Samsung’s low to mid-range product offerings are set to benefit from LG’s absence in Latin America, analysts said.

    LG’s smartphone division, the smallest of its five divisions accounting for about 7% of revenue, is expected to be wound down by July 31.

    In South Korea, the division’s employees will be moved to other LG Electronics businesses and affiliates, while elsewhere decisions on employment will be made at the local level.

    Analysts said they were told in a conference call that LG plans to retain its 4G and 5G core technology patents as well as core R&D personnel, and will continue to develop communication technologies for 6G. It has yet to decide whether to license out such intellectual property in the future, they added.

    LG will provide service support and software updates for customers of existing mobile products for a period of time which will vary by region, it added.

    Talks to sell part of the business to Vietnam’s Vingroup fell through due to differences about terms, sources with knowledge of the matter have said.

    LG Elec shares have risen about 7% since a January announcement that it was considering all options for the business.

  • South Korea to release low-cost 5G through MVNO mobile data plans

    South Korea to release low-cost 5G through MVNO mobile data plans

    South Korea’s Ministry of Science and ICT has announced plans to release low-cost 5G mobile data plans to raise the competitiveness of the country’s 5G market.

    The ministry reported that tariffs will be announced, with mobile data rates offered by mobile virtual network operators (MVNOs) priced below those offered by the country’s major carriers SK Telecom, KT and LG Uplus.

    According to data from the Ministry of Science and ICT, 5G subscribers in South Korea totaled at 13.66 million in February, nearly doubling from just 792,118 subscribers from the previous month. The top carrier, SK Telecom, had 6.35 million 5G subscribers.

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  • South Korean retail sales record double-digit growth

    South Korean retail sales record double-digit growth

    Department store sales jumped 40 percent in February against a year-ago period in the biggest year-on-year gain since the data became available from 2005 to suggest a rebound in private consumption in South Korea.

    According to the Ministry of Strategy and Finance’s monthly economic review, department store sales jumped 39.5 percent on year in February, a record-high growth rate since monthly records became published.

    Sales at discount stores also gained 24.2 percent, the largest increase since the 34.8 percent gain in Feb 2015.

    Domestic credit card spending last month rose 8.6 percent from a year ago, rebounding for the first time in three months.

    The boost in consumer spending was spurred by the Lunar New Year’s holiday in early February in a pent-up demand after protracted social distancing measures, the finance ministry noted.

    The figure also goes against poor numbers a year ago when the country was swept up in the first wave of Covid-19 outbreak.

    In Feb last year, the department store sales fell 30.6 percent. Discount store revenue declined 19.6 percent, the biggest drop since Jan 2015 when the figure was down by 24 percent.

    An official from the finance ministry said that the low base effect from last year may have made the February figures look better than they really are.

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  • SK Telecom, Shinsegae Group among bidders for eBay’s Korean business

    SK Telecom, Shinsegae Group among bidders for eBay’s Korean business

    South Korea’s SK Telecom, retailer Shinsegae Group and private equity firm MBK Partners were among those that entered non-binding, preliminary bids for the sale of eBay Inc’s South Korean business, the telecom company, and two sources with knowledge of the matter said on Tuesday.

    EBay Korea operates open market e-commerce platforms Gmarket, Auction and G9, and was South Korea’s third-largest e-commerce firm in 2020 with 12.8% market share, according to Euromonitor.

    The sources declined to be identified as not authorized to talk to the media. MBK Partners, Shinsegae Group, and eBay Korea declined to comment.

    Seoul-based analysts said that eBay hopes to fetch up to 5 trillion won (S4.42 billion) with the sale.

    However, they said the actual sale price may be lower, due to its recent drop in market share compared to rivals such as Korea’s No. 1 e-commerce firm Coupang, and disadvantages of the unit’s traditional “open market” form of e-commerce which simply connects sellers with buyers.

    EBay Korea’s market share has been overtaken in recent years by Coupang, which directly handles inventory, differentiated itself with speedy delivery and raised around $4.6 billion in a blockbuster New York listing earlier this month, as well as Naver Corp, which operates South Korea’s dominant online search portal.

    EBay Korea’s 2020 revenue was estimated to be about 1.3 trillion won, with a 5.3% on-year increase in transactions, compared to a 19% growth in South Korean e-commerce market, KTB Investment & Securities analyst Kim Jin-woo said.

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  • Nokia and LG Uplus to test 5G B2B digital platform in South Korea

    Nokia and LG Uplus to test 5G B2B digital platform in South Korea

    Nokia has today announced that it will conduct a 5G Business-to-Business (B2B) digital platform trial for LG Uplus. Once deployed, the platform will allow LG Uplus to reduce time-to-market for launching 5G-powered services to its enterprise and business vertical customers. The platform will also enable LG Uplus to address new business segments, including Industry 4.0, and smart factory. After deployment, the solution will promote the use of 5G by enterprises and verticals to grow their business, aligning with the Korean Government’s Digital New Deal initiative.

    The proof-of-concept test of the 5G B2B digital platform will be completed in two phases starting in February. While the first phase involves a demonstration in the Nokia Lab, the second phase with a field trial is planned in the LG Uplus Regional Operation Center in KyungNam.

    Nokia’s solution is based on multi-domain technology and ensures full automation and near real-time delivery of services. The solution includes a service platform powered by Nokia’s Digital Operations software, Cloud Operations Manager, Network Exposure Function, Registers, Cloud Packet Core, Software Defined Networking, and gNB (5G version of eNodeB), across Nokia’s cloud platform.

    LG Uplus will use the platform to cost-efficiently automate the design and deployment of 5G network slices for the delivery of new services. In addition, LG Uplus’ enterprise customers will be able to leverage 5G capabilities to enhance their business and operational efficiency leading to overall economic gain.

    The service will give LG Uplus customers the flexibility to directly control and manage the platform to meet their needs. Further, it will help LG Uplus offer newer use cases such as Smart Factory and Smart Harbor with 5G wireless connectivity and associated services like network slicing.

    Jaeyong Seo, Vice President of Smart Infrastructure Business Unit, LG Uplus, said: “We are committed to providing best-in-class and innovative services to our customers and this trial is a crucial step in this direction. Once deployed, Nokia’s 5G B2B digital platform will help us expand our enterprise business by allowing us to provide new use cases rapidly. Nokia is our trusted partner and we look forward to working with them on this important trial.”

    Kevin Ahn, Head of Korea, Nokia, said: “We are excited to conduct this pathbreaking trial for LG Uplus to enable its enterprise customers to improve business processes with 5G. Nokia’s 5G B2B digital platform will allow LG Uplus to transform its B2B service creation with agility and automation and delight its enterprise customers with new use cases and operational excellence.”

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  • Starbucks opens giant Reserve store in Malaysia

    Starbucks opens giant Reserve store in Malaysia

    Starbucks Malaysia today unveiled Starbucks Reserve Tropicana Gardens, the largest in the market. Located in the heart of the bustling community between Kota Damansara and Tropicana Indah, the store features two bars: the main bar offering all core and seasonal handcrafted Starbucks beverages, as well as a coffee bar that offers six different brewing methods, including pour-over, Chemex, siphon, Black Eagle espresso, and Nitro Cold Brew.

    The immersive coffee experience – spanning nearly 6,000 square-foot of retail space – celebrates all-things coffee. The layout of the store itself is similar to that of a coffee bean, with a large curvature and floor-to-ceiling windows that connect to a small garden and rapid transit station. The main highlight of the store is a 50-foot wide ‘Wall of Gratitude’, which features photos of more than 200 frontliners medical workers, and Starbucks baristas. The mural serves as both a way to pay tribute to the people who have been fighting together against the COIVD-19 pandemic and also as a physical reminder of the events of the past year that have made Malaysians stronger and more resilient than ever.

    “Over the past five years, the Starbucks Reserve concept has brought about a catalyst of growth in the industry focusing on customer experience and passion for coffee in Malaysia. With the opening of Starbucks Reserve Tropicana Gardens, customers can expect the same human connection and immersive coffee experience that will continue to inspire coffee passion to the community,” said Sydney Quays, Group CEO of Berjaya Food Berhad and managing director of Starbucks Malaysia & Brunei. “We are delighted to be able to open this store and celebrate the commitment, resiliency, and creativity of our partners and customers in these unique times.”

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  • SoftBank-backed Coupang raises $4.2 billion in US IPO

    SoftBank-backed Coupang raises $4.2 billion in US IPO

    Coupang LLC, South Korea’s largest e-commerce company, raised $4.2 billion in the biggest share offering in the United States this year after selling stocks in the IPO above its deal target range, people familiar with the matter said.

    The initial public offering price of $35 apiece, higher than the marketing range $32-$34 per share, gives Seoul-headquartered Coupang, which is backed by Japan’s SoftBank Group Corp, a market value of $60 billion.

    Coupang’s successful share offering comes as the U.S. IPO market is at its strongest in more than two decades and investors are flocking to buy shares in technology companies that have benefited during the COVID-19 pandemic.

    The IPO is the biggest in the United States this year, surpassing the $2.15 billion raised by dating app Bumble Inc. It also marks a jump in Coupang’s valuation, which was pegged at $9 billion in a fundraising round in 2018, according to Pitchbook.

    Analysts in South Korea said the strong response to Coupang’s offering was a result of its market-leader position in the country at a time when, like many other e-commerce firms, its sales have grown due to the COVID-19 pandemic.

    “Considering the high level of valuation inherent in the pricing, the market is giving a generous assessment of the company’s achieving the top spot in market share,” said Park Sang-joon, analyst at Kiwoom Securities.

    Coupang was the top-ranked South Korean e-commerce firm in 2020 with 19.2% market share, according to Euromonitor, compared to Naver Corp’s 13.6% and eBay Korea’s 12.8%. It was the 10th largest e-commerce firm in the world, based on retail value excluding sales tax.

    In 2020, Coupang’s net sales jumped 91% year-on-year to $11 billion. Net losses narrowed to $567.6 million from $770.2 million posted in the prior year.

    Founded in 2010 by Korean-American billionaire Bom Suk Kim, Coupang rose to prominence after launching its guaranteed same-day or next-day delivery service in the East Asian country. SoftBank’s $100 billion Vision Fund owns 35.1% of Coupang.

    Achieving a $60 billion valuation would add to good news for the Vision Fund, which is bouncing back from an annual loss in March. Last month, it announced record quarterly profit.

    The company’s shares will begin trading on the New York Stock Exchange on Thursday under the symbol “CPNG.”

    Goldman Sachs, Allen & Co, JPMorgan and Citigroup are the lead underwriters for the offering.

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  • Arket opens doors in Korea

    Arket opens doors in Korea

    H&M’s ‘Nordic lifestyle brand’ Arket has opened its first brick-and-mortar store in Seoul, South Korea.

    Located at Yeouido’s department store The Hyundai Seoul, the Arket South Korea store spans 8000sqft and features the brand’s collections of New Nordic design for men, women and children. The flagship store also houses an Arket cafe, offering vegetarian dishes, drinks, pastries and snacks.

    “Opening the new store in Seoul is an incredibly exciting step for us, as it is our first physical location outside of Europe,” said Pernilla Wohlfahrt, MD at Arket.

    The launch in South Korea is part of its strategy to expand its presence in Asia. Last month, the retailer announced that it will open its first brick-and-mortar store in China, at Beijing.

    Launched in 2017, the brand now operates more than 20 stores across major European cities, including Copenhagen, Amsterdam, London and Berlin.

  • South Korean sees jump in perfume sales despite shrinking cosmetics market

    South Korean sees jump in perfume sales despite shrinking cosmetics market

    Perfume sales in South Korea have gone up despite the suspension of perfume testing at department stores. Last December, South Korean retailers suspended all practices of testing cosmetic samples at offline vendors in accordance with government regulations, which has led to a plunge in cosmetics sales at department stores.

    Cosmetics sales at Lotte Department Store and Hyundai Department Store last month dropped by 22 percent and 8.6 percent, respectively, compared to the same month last year.

    As protective masks have become a new norm, demand for color cosmetics had already dropped before the new ban on the use of samples tightened consumption even further.

    In contrast, perfume sales at the two department stores jumped by 34 percent and 49.7 percent.

    “Consumers are replacing cosmetics with perfumes as a way of expressing themselves in the pandemic era,” Lotte Department Store said.

    Bans on testing perfumes at offline vendors have led to a sales jump among online perfume sellers.

    S.I. VILLAGE, a luxury shopping platform run by the country’s leading retailer Shinsegae Group, saw last month’s perfume sales jump by a whopping 772 percent compared to the same month in the previous year.

    Another major online shopping mall Gmarket saw a 711 percent spike in January sales of perfume, compared to the same month last year.

    “More consumers are buying perfumes as they are beginning to use them as an everyday accessory,” an industry official said.

  • Wuhan’s Chinese Language bookstore Zall opens in Singapore

    Wuhan’s Chinese Language bookstore Zall opens in Singapore

    A Chinese-language bookstore from Wuhan opened its first overseas store today in Singapore.

    The Zall Bookstore, popular in the main city of China’s Hubei province, opened its doors to bookworms at the Wheelock Place mall on Orchard Road.

    The two-story space houses a wide collection of more than 30,000 books, some of which are displayed on a revolving bookcase that leads visitors to an art gallery showcasing exhibitions by Singapore-based artists like Boo Sze Yang and Justin Lee. There is also a cafe serving pastries.

    Its titles are mostly in Chinese, covering genres such as literature and history. Given that its home has become most-associated with the origin of COVID-19, it’s worth noting there is a section about the ongoing pandemic.

    The bookstore’s four outlets in Hubei are open 24 hours, though the Singapore store is not. It was founded in 2013 by Chinese writer Yan Zhi, whose daughter is the first general manager of the Singapore store.

    The return of a bookstore to Wheelock Place comes 10 years after American books megastore Borders moved out of the mall after 14 years as its anchor tenant.

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  • Mixed fortunes for online and offline retailers in Japan and Korea

    Mixed fortunes for online and offline retailers in Japan and Korea

    Brands in the tech sector are likely to record mixed fortunes as a result of the COVID-19 pandemic, with retail tech brands predicted to fare the best compared to leisure and tourism tech brands, which are expected to suffer considerably, according to the latest report by Brand Finance. The top 100 most valuable tech brands, on average, should see a slight decrease in brand value following the pandemic, falling 5%.

    The Brand Finance Tech 100 2020 ranking is split into sub sectors, with electronics, software, retail and media & games analysed separately as these brands make up more than 80% of the total brand value in the ranking. All brand values are correct as at 1st January 2020.

    Alex Haigh, Director, Brand Finance, commented:

    “The sheer size and diversification of the tech sector undoubtedly means that brands are going to be affected differently from COVID-19. On the one hand, e-commerce brands are likely to see a boost to their brand values following record high demand. In contrast, other tech brands’ journeys in the coming year could be more turbulent, with supply chains impacted, consumer spending shifting and slowing demand impacting brands’ bottom lines and, in turn, their brand values.”

    Electronics: Apple storms ahead despite losing brand value

    Making up 27% of the total brand value and with 30 brands featuring, electronics are the dominant sub sector in the Brand Finance Tech 100 2020 report. The electronics sub sector is likely to be moderately impacted by COVID-19, with a potential 10% loss of brand value at stake.

    Leading the way is Apple, recording a 9% drop in brand value to US$140.5 billion and simultaneously dropping to 3rd spot in the ranking, with Google (brand value up 12% to US$159.7 billion) overtaking in 2nd.

    Apple has struggled to grow in key emerging markets, showing little motivation to diversify its portfolio. Brand Finance’s analysis shows that Apple could lose up to 20% of its brand value following the pandemic with supply chains broken and consumer spending slowing – the brand will be hoping the return to normality in China could offset some of this damage.

    With an impressive brand value growth of 37%, ZTE is the fastest growing electronics brand – its surge in brand value bolstered by its increased adoption of 5G. Telco equipment brands should be in a solid position to experience good growth as the rise of 5G accelerates globally.

    Software: Google overtakes Apple

    The second most valuable sub sector, software, makes up 21% of the total brand value in the Brand Finance Tech 100 2020 ranking with 15 brands featuring. Brand Finance’s analysis shows that software brands could lose up to 10% of their brand value as a result of COVID-19.

    With a brand value of US$159.7 billion, Google is the most valuable software brand in the ranking and the 2nd most valuable in the overall ranking. Google’s sleek brand extension from software to hardware, is a direct threat to Apple, who have lost their streak of brilliance in recent years. COVID-19 is likely split Google’s fortunes down the middle with Google Cloud predicted to celebrate boosted demand, as remote working becomes widespread. The pandemic does pose a major threat to its advertising business, however, – where the majority of the brand’s revenue comes from – which is inevitably going to slow down.

    Chinese software giant Baidu recorded the largest drop in brand value in the ranking, down 54% to US$8.9 billion. The company reported its first quarterly loss since its initial public offering (IPO) back in 2005. Along with the intense market competition, the brand’s revenues were heavily impacted as regulators placed more attention on online advertising. Baidu is now focusing on other areas to drive long-term growth, such as its cloud division, smart speakers, and even driverless cars in an effort to secure better results for the future. The combination of the economic slowdown in China and COVID-19’s damage to ad sales will no doubt cause some damage to aid-dependent brands like Baudi.

    Retail: Amazon primed for more growth

    Retail brands contribute 19% of the total brand value in the ranking, largely as a result of the sheer dominance and size of the world’s most valuable brand Amazon. Bucking the trend of traditional bricks and mortar retail, e-commerce brands have the opportunity to thrive in the current climate as demand reaches record highs. Retail is, therefore, the only subsector in the Brand Finance Tech 100 2020 ranking, that could potentially see an increase in brand value as a result of COVID-19, up to 20%.

    Breaking the so far unattainable US$200 billion brand value mark, following 18% growth, Amazon remains a cut above the rest. While most brands are experiencing or expecting a slump in revenue during the pandemic, Amazon is set for continued growth. As with fellow e-commerce brands, Amazon has been benefitting from the unprecedented surge in demand as consumers turn online following store closures.

    Japan’s Rakuten is the fastest growing brand in the ranking, recording an impressive 66% brand value growth to US$5.2 billion. The Tokyo-headquartered brand has celebrated strong growth in its domestic e-commerce services and has its sights set on building upon and winning new customers with the aim of cross-use of services to further open up the brand’s ecosystem.

    Media & Games: limited damage from COVID-19

    The 14 media & games brands make up 18% of the total brand value in the Brand Finance Tech 100 2020 report. Eight of these brands hail from the US and have grown, on average, 12% in brand value year on year. Brand Finance’s calculations have found that this sub-sector is going to suffer limited impact from COVID-19, equating to a 0% change in brand value.

    Media & Games’ most valuable, Facebook (brand value down 4% to US$79.8 billion), has negotiated several high-profile reputational issues, most notoriously the Cambridge Analytica scandal, which resulted in a US$5 billion fine last year. The pandemic could, however, turn the tide on the tarnished brand, as people are forced to keep in touch with friends through social media. Facebook has also been developing a symptom survey, which is hoped to reveal a lot about COVID-19 and contribute to research.

    In contrast, Facebook-owned Instagram has enjoyed an explosion of growth, securing the second-highest brand value increase among all tech brands this year, up 58% to US$26.4 billion. The platform is successfully leveraging its position in the market as a genuine business tool – beyond its traditional influencer market – as more businesses move online during the lockdown.

    In line with positive trends in brand value among other video streaming services, last year also saw Netflix enjoy an 8% boost in brand value to US$22.9 billion. Netflix has been a pioneering force in changing consumers’ viewing habits. This success has only been spurred on by COVID-19, with the timely release of Tiger King raking in 34 million US viewers in the first 10 days alone.

    In addition to calculating overall brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Alongside revenue forecasts, brand strength is a crucial driver of brand value. According to these criteria, WeChat is the world’s strongest tech brand with a Brand Strength Index (BSI) score of 92.9 out of 100 and a corresponding elite AAA+ brand strength rating.

    WeChat has significantly broadened its proposition since its inception, successfully leveraging its brand to develop an extraordinary level of vertical product integration. With WeChat Pay now being accepted in more than 60 countries and the platform opening to international travellers in China for the first time, the brand has set its sights on global markets.

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  • Dyson opens its flagship store in Seoul

    Dyson opens its flagship store in Seoul

    British home appliance maker Dyson Ltd. said Thursday it will open its first flagship store in South Korea this week as the company eyes to expand its sales amid the pandemic.

    Dyson Demo Store will open at IFC Mall in western Seoul on Friday, featuring all of Dyson’s products and services. It is the first flagship store to be directly run by Dyson Korea since the Korean unit was established in 2018.

    “We want to offer a place where people can explore, test and try Dyson’s full lineup of technology, get advice and support on everything from their first demo store in Korea,” Tomas Centeno, the managing director of Dyson Korea, said. “The demo store will offer ultimate Dyson experience of our full products and services under one roof to choose the right product for you.”

    At the 323-square-meter space, Dyson Korea said its employees who were trained by Dyson engineers, called “experts,” will assist consumers in selecting its products from vacuum cleaners to hair appliances.

    Centeno said Dyson aims to “grow strongly” in South Korea, saying the country is one of its key markets.

    “Koreans are nimble in their approach to tech,” he said. “Not only do they have high interest but are also quick to evaluate new products.”

    Last year, Dyson’s vacuum cleaner with an omnidirectional head, the Omni-glide, was launched in South Korea first in the world.

    “We will continue to introduce new products, which have never existed before, based on our deep understanding of Korea,” he said.

  • South Korean online platforms face scrutiny over unfair business practices

    South Korean online platforms face scrutiny over unfair business practices

    South Korea has launched an antitrust investigation into Google over its plans to enforce commission fees for in-app purchases made through its mobile application store, a top official said Thursday.

    The U.S. tech giant has come under intense scrutiny from South Korean regulators after it updated its global policy late last month to make all apps on its Play store use its proprietary billing system.

    Under the new policy set to take effect in October next year, Google will take a 30 percent commission on all digital purchases by consumers.

    South Korean app developers have >voiced strong opposition against the move, arguing that it could be in violation of local fair trade and telecommunications laws.

    Joh Sung-wook, chairperson of the Korea Fair Trade Commission (KFTC), told lawmakers during a parliamentary audit that Google’s plan is currently being reviewed.

    “I believe that competition isn’t working properly in this industry,” she said. “In order to restore competition, we are currently investigating for anti-competitive actions.”

    Google holds a tight grip over local app store sales, with a 63.4 percent share of the total last year at 6 trillion won (US$5 billion), according to the Korea Mobile Internet Business Association.

    Han Sang-hyuk, head of the Korea Communications Commission, echoed Joh’s concerns, and called for inter-agency cooperation over the issue.

    “We need to monitor the response from other countries and also create a structure for cooperation between local agencies,” Han told lawmakers in a separate audit.

    The country’s telecommunications regulator is conducting a separate investigation into Google over its in-app payment policy.

    Google has argued that it is committed to an open system by offering other app stores on its Android platform and that it will comply with local laws.

    In response to growing frustration, Google has established a support fund worth $100 million for local app developers and users.

    On Wednesday, ICT Minister Choi Ki-young brushed off the fund, telling lawmakers that it is not enough in the long run.

    Choi said the ICT ministry will wrap up its review of fees imposed by online platform operators, primarily directed at Google, by the end of this month.

    Amid growing scrutiny over Google’s app store fees, local rival One Store, under the country’s top mobile carrier SK Telecom Co., said it would exempt in-app payment fees by 50 percent for app developers with monthly transactions of less than 5 million won until the end of next year.

    One Store already undercuts Google’s Play store, taking up to 20 percent in commission for in-app purchases.