South Korean duty-free set to lower prices

outh Korean duty-free operators are set to lower their U.S. dollar-denominated product prices as the greenback continues to strengthen against the Korean won, companies said Thursday.
Major duty-free chains, such as Lotte, Shilla and Shinsegae, plan to lower prices of products manufactured by Korean brands, such as Samsung Electronics and LG Household and Health Care, by roughly 3 percent, according to the companies.
Under the move, the price for Samsung Electronics' NX3000 mirrorless camera will fall to US$339 from $349, while that of the Galaxy Tap S 8.4 will fall to $427 from $439, according to South Korea's news agency Yonhap.
The price cut comes as duty-free operators adjust their benchmark currency price in line with fluctuations in the won-dollar exchange rate.
The won which traded at an average 1,027.3 against the U.S. dollar in July last year, has weakened to 1,115.5 against the greenback this month on growing views the U.S. Federal Reserve is poised to start hiking rates.
"We frequently adjust dollar-denominated product prices under our pricing policy. The price cut does not indicate an actual change in the value of the product as it is due to currency fluctuations," said an industry official.