French luxury fashion house Chanel on Friday announced a hike in the price of its iconic handbags by up to 7 percent in Korea starting Nov. 1, in order to “be on par with Chanel prices globally.”

The notoriously reclusive brand said it would readjust the price tags twice a year -- which analysts say could lead to an unstable future for the bags that are often used for “investment purposes” in Korea.

According to Chanel Korea, the items subject to the price hike include the Boy Chanel small size -- jumping to 5.01 million won ($4,400) from the current 4.7 million won -- and the 2.55 medium size and Timeless Classic jumbo -- both become 6.39 million won from the current 6 million won. Other items are also on the list.

The price increase was notified to customers who sought to purchase the respective items at Chanel stores, in order to “secure stocks before the hike causes them to be sold out,” the company spokeswoman said.

“The Chanel headquarters has decided to readjust the price twice a year in order to ensure price harmonization -- those who buy the bag in Korea should not pay more than customers in Europe,” the spokeswoman said. Chanel Korea in March slashed the price of some of its popular items by up to 20 percent to align with the pricing policy. 

“We have seen a weaker won effect since March and it is inevitable that some prices will go up,” she said, explaining that the new scheme is to reduce the price gap among countries to less than 10 percent for a single item. But she declined to confirm the price range in other countries.

Meanwhile, in keeping with the policy some items such as the Ballerina Shoes or sneakers will see a price cut of up to 18 percent.

When asked whether the annual price adjustments could ignite anxiety among Chanel customers who often buy the products for investment, the spokeswoman said, “We cannot guarantee anything.”

By Bae Ji-sook (baejisook@heraldcorp.com)