AmorePacific has announced a new duty free sales policy that aims to cut down the onslaught of illegal traders who buy Korean products in bulk then resell for a lower price in China.
The new policy will cut the purchase limit of products sold in online and offline duty free shops by up to 75 percent, with customers now only allowed to purchase five products from each brand, such as Laneige and Hera, as opposed to the previous ten products. Meanwhile, online purchases have been reduced from 20 to five items.
According to Korea Bizwire, an AmorePacific spokesperson said, “Bulk purchasing by unauthorized dealers has been prevalent recently, and in fears of creating chaos and having a negative impact on our global business, we decided to introduce measures to allow consumers to better experience our products by putting a cap on how much one can purchase at duty free shops.”
The new policy follows a similar move by LG Household & Health Care last month, which decreased the amount of products available to purchase from an individual consumer.
It is thought the decisions come as ongoing THAAD-tensions between Korea and China are continuing to hit sales of Korean products due to a fall in Chinese tourists, while Korean companies are looking to maintain brand value lost by illegal sales.