Foreign Cosmetics Get a Huge Markup

Representatives Kim Chan-woo and Kim Hong-shin of the main opposition Grand National Party charged Sunday that foreign cosmetics products are sold at prices as much as 12 times the import cost in Korea.

The two legislators in the National Assembly's Health and Welfare Committee said they discovered the information while they were reviewing documents for the current round of parliamentary inquiries.

A lotion manufactured by Lancome that was imported for 7,500 won ($7) is sold at department stores around the country for 90,000 won ($82) －12 times the import cost.

A 4,940 won lotion manufactured by Biotherm goes for 58,000 won in Korea, which is 11.7 times higher than the import cost.

A Sisley lotion that is imported for 48,000 won is sold at 350,000 won on the retail market, the legislators said.

Market analysts laid the price distortion to excessive profit-taking by middlemen, since the 8 percent tariff is relatively low, they said