IKEA plans to spend $327m in South Korea over the next three years. Credit: Chiara Sakuwa via Shutterstock.com.

Swedish furniture retailer IKEA has announced plans to invest €300m ($327m) in South Korea up to 2026.

The move is aimed at bolstering its market share in the country, Bloomberg has reported. 

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IKEA’s retail operator Ingka Group retail head Tolga Oncu, on his first visit to the country since 2018, revealed the plans during an interview in the city of Goyang. 

The investment will see the opening of IKEA’s trademark Blue Box store in the capital, Seoul, with plans for many more smaller formats across the country.  

The retailer, which offers self-assembly furniture and home goods, currently operates four stores in South Korea and provides online shopping and delivery services.  

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The company is focused on enhancing consumer access to its products.  

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Tolga Oncu was quoted by the media company as saying: “Maybe you don’t need to walk more than 15 minutes to get your products in a convenience store or somewhere.”  

IKEA has also been investing in the automation of its shipping services, which could lead to reduced prices due to South Korea’s high-quality last-mile delivery capabilities. 

The retailer is aiming for 10% to 20% price reductions on some products in the country.

As part of its plans to lower prices across the world, IKEA has already brought down retail costs on almost 1,000 products in the US. 

In January 2024, Ingka Group initiated a new wave of price cuts for a range of products in countries including Belgium, Canada and India.   

Tolga Oncu stated: “I think in general for Ikea worldwide, it is looking like this is going to be one of the biggest price reductions that we have ever done in one year.”