Why do Koreans prefer overseas direct purchases to domestic products?
    This is because, in spite of the fact that overseas products and domestic products have the same company and manufacturer, purchasing products from overseas is cheaper than domestic products. For example, suppose that you buy a 55 inch TV. Even though you take the advantage of domestic department store, the price of this television is around 3,050,000 won. However, if you purchase the same product by overseas direct purchase, the price is three times cheaper than that of purchasing in Korea. Because of that, many people try to take advantage of this. Overseas direct purchase is not only inexpensive but also has other numerous merits. In our society, individuals can express their social and economic status with fashion and accessories that they wear. Therefore, people who want to show their social status with fashion can utilize overseas shopping with much cheaper price. People say that nobody wants to use one brand of products. Due to these advantages, overseas direct buying fervor has started in Korea.

   The Korean system has changed!
   Overseas direct shopping leads to a lot of changes in Korea. First, owing to Korean’ craze about overseas direct shopping, domestic distribution corporations try to open a white and black Friday or a Korean Black Friday which are similar to the original Black Friday. Second, the existing domestic distribution corporations have a feeling of tension which is caused by Koreans’increasing overseas purchases. Several established domestic distribution corporations implemented big sales that were limited to this month’ products. However, during this time the Korean Edition of Black Friday sells new products at a reduced price. So far, popular items are purchased in small quantity, due to connection problem of the internet, and other problems. In spite of this, the number of using overseas direct purchases steadily increases every year.

   What is the disadvantage of overseas direct purchases?
   First, using overseas direct shopping takes much longer to get items than using the domestic online shopping malls. The time required to get the items depends on the level of development in that countries’transportation. If there are frequent international flights or the distance is relatively close, the delivery time will be shorter. However, if there are few international flights or the manufacturer producing the item is far from Korea, the delivery time can be longer considerably. Therefore, customers’waiting time ranges from seven days to one month.
   Second, it is difficult to get exchanges, returns, repairs between the patron and the supplier. The cause of this problem is not that the supplier doesn’ provide the services about the products but that long distance between the customer and the seller results in substantial increase in the cost of transportation. If people try to exchange the item, they need to pay double or a much higher cost than the original cost of product. Due to this fact, people are reluctant to try getting exchanges, refunds, and repairs even if customers are not satisfied with the products.

   What are the points that customers keep in mind making overseas direct purchases? 
   It is important to understand the customs law. Those who are not well-acquainted with it could purchase the product at a much more expensive price than the products at a cheaper price. The limitation of tax exemption for overseas products is 150,000 won. In the case of American United States, owing to the Korea-U.S. FTA, the tax can be exempted up to 200 dollars. Most people strive not to exceed the limitation in order to take the that advantage. For that, people usually buy products in a various kind of overseas online markets. However, if you get two products that are from different online markets in the same day, Korea Customs Center charges the tax to the total price by adding products’price together.
   The last point is that customers need to be cautious about excessive consumption in overseas direct shopping. People who are addicted to direct purchase due to the cheap prices compared to domestic prices are highly likely to lose their control. They merely consider how the price of direct purchase is still cheaper than that of domestic market. Moreover, they would buy anything they want and don’ recognize the condition of this budgets. In addition, the fact that direct purchase is usually conducted by using the credit card can bring about excessive consumption much more easily. In short, it is necessary to be well-informed of the customs law and be cautious before buying.

Lee Ji-seon, Kim Min-su | By CP Reporter