IKEA Korea will open its largest urban-format store in South Korea next month at Shinsegae Department Store’s Daegu branch, its third such location, as it shifts from suburban warehouse stores toward an omnichannel model linking showrooms, consultations, online purchases and pickup services. Fiscal 2025 revenue rose 2.2% to ₩639.3 billion (about $462.0 million), but operating profit fell 41.6% to ₩10.9 billion (about $7.9 million), while revenue remained below the 2021 record of ₩687.2 billion (about $496.6 million). On August 26, 2026, IKEA Korea announced a ₩1.8 billion (about $1.3 million) investment in permanent price reductions on 161 bestselling products by an average of 15.24%, or roughly 15%, including items in storage, mattresses, lighting and beds. Prices will remain unchanged on 8,110 of 9,104 products, rise on 754 and fall on 240, producing an average adjustment of 1.16% across the range. The retailer has reduced prices on 1,664 products since fiscal 2024, with cumulative investment of about ₩14.6 billion (about $10.5 million), and will also discount selected food items and offer IKEA Family members a limited-time ₩990 breakfast nationwide from August 27, 2026. IKEA operates five large-format stores and has no further openings planned, while pop-up-store demand, online growth, market-exit rumors, a withdrawn Pyeongtaek logistics-center plan and a government investigation into alleged pressure on employees returning from parental leave underscore the challenges facing its South Korean business.