Winners and Losers
Half-priced TV sales on fire
Low priced LED TVs released on 11st, a popular online shopping site in Korea, was sold out on the first day of release.
11st is owned by the SK Planet, a mobile platform unit of the company.
Priced at 449,000 won, almost half of what tech giants such as Samsung Electronics and LG Electronics offer, more than 5,000 of the so-called, Shocking TVs went out the door within 22 hours since its debut last Thursday, SK Planet said, in a statement.
The half-priced TV boom first started last October when E-Mart slashed its TV prices by half, selling 5000 of them in three days. The craze triggered other discount chain stores like Lotte Mart and e-commerce sites including Auction, GS shop, 11st to launch similar deals.
Eliminating the price bubble in distribution and mass production was the key for companies to cut prices. Shying away from smart TVs offered by big companies, discount chains watered down the price by simply focusing on the basic function of a TV.
Samsung, LG fined W45 bil.
South Korea’s electronic giants Samsung Electronics and LG Electronics were fined a total of $44.6 billion won for fixing prices in their home appliances.
Fair Trade Commission said last Thursday that it charged each company $25.8 billion won and $18.8 billion won, respectively for fixing prices of flat screen TVs, laptops and washing machines.
Korea’s leading electronic makers allegedly held secret meetings between 2008 and 2009 and colluded to contain washing machine prices at agreed level of 200,000 won and manipulated prices of flat screen TVs and laptops.
"Their price-rigging caused damage to many consumers by leading the prices of washing machines, flat-panel TVs and laptop computers to rise more than other competing products," the regulatory agency said in a statement.
LG Electronics spokeswoman said the company voluntarily reported to the FTC, when it discovered in 2009 that some of its employees had been involved in price-fixing deals, and asked to be relieved from penalties, AFP reported.