Luxury brand Louis Vuitton hiked prices in Korea by an average of 4-5 percent with less than a week until the Korea-EU FTA goes into effect, it was confirmed last Friday. The last price hike was only in February.

The price of Louis Vuitton's signature Speedy 30 bag rose from W920,000 (US$1=W1,087) to W965,000 in February and to W1.015 million this month. The Never Fall MM bag’s price rose to W1.025 million in February and W1.075 million in June.

Louis Vuitton Korea claims headquarters hiked prices worldwide, but many believe that it is a ruse to keep prices high when the FTA slashes tariffs in a few days' time.

Korean consumers will not be able to feel the effect of the FTA for the time being as Chanel also hiked prices by an average of 25 percent and has no plan to cut them any time soon.