Annual Membership Fees to Increase by Up to 15% Starting in May
U.S. and Canada Saw an 8.3% Rise
Starting from May, the annual membership fees for Costco in South Korea will increase by up to 15%. The domestic increase rate is about twice that of the United States and Canada, which raised their fees last year.
According to industry sources on the 3rd, Costco Korea announced that it will raise the prices of three types of annual membership fees (Gold Star, Business, Executive) starting May 1. The Business membership fee will increase by 15.2%, from 33,000 KRW to 38,000 KRW; Gold Star will rise by 11.7%, from 38,500 KRW to 43,000 KRW; and Executive will go up by 7.5%, from 80,000 KRW to 86,000 KRW. Costco Korea explained that "the increase was inevitable due to rapidly changing business conditions and rising costs."
Previously, Costco headquarters raised the membership fees in the United States and Canada by 8.3% in September last year for the first time in seven years, from $60 (approximately 88,000 KRW at the current exchange rate) to $65 (about 96,000 KRW). The membership fee increase rate in Korea this time is set at up to 15.2%, roughly twice as high.
Attention is focused on whether customer attrition will continue as Costco, which enjoys high customer preference, raises membership fees. Costco operates as a membership-only store, so purchasing goods is impossible without a membership.
Meanwhile, in the Korean market, Costco has risen to third place among large domestic marts, closely chasing Homeplus, the industry's second place. According to the Financial Supervisory Service, for the 2024 fiscal year (September 2023 to August 2024), Costco Korea recorded sales of 6.53 trillion KRW, an increase of 7.6% compared to the previous year. Operating profit during the same period rose by 15.8% to 218.5 billion KRW. About half of this is covered by membership fees. Net profit reached 224 billion KRW, up 58.1%.
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