U.S.-based warehouse discount chain Costco will raise its annual membership fee by up to 15% for domestic customers.
According to the retail industry on the 3rd, Costco Korea announced on its website that it would increase the annual membership fee starting on May 1.
The Gold Star membership will increase from 38,500 won to 43,000 won, a rise of 11.7%, while the Business membership will go up from 33,000 won to 38,000 won, an increase of 15.2%. The Executive membership fee will be raised from 80,000 won to 86,000 won, a 7.5% increase.
However, for Executive members, the 2% rewards will expand from a maximum of 1 million won to 1.2 million won annually.
Memberships expiring after May will be renewed at the new annual fee, and even expired memberships will apply the increased fee when renewed after May.
Earlier, on Sept. 1, 2022, Costco's headquarters raised the membership annual fee in the U.S. and Canada from $60 (approximately 88,000 won at current exchange rates) to $65 (about 96,000 won). The Executive membership fee was increased from $120 (around 176,000 won) to $130 (around 191,000 won). This is the first increase in membership fees since June 2017.
The increase in membership annual fees for the Korean subsidiary also appears to be part of a global policy trend.
In the last fiscal year (September 2023–August 2024), the revenue of Costco Korea, 100% owned by Costco U.S., was 6.53 trillion won, an increase of 7.6% compared to the previous fiscal year. Operating profit rose by 15.8% to 218.6 billion won, and net profit soared 58.1% to 224 billion won. Costco Korea paid 150 billion won in dividends to the U.S. headquarters, amounting to 67% of its net profit.