Distributing a product

Evolution of the sector

The retail market in Korea reached 150 trillion KRW (+5,7%) in 2007. The number of the large discount stores convenience store will reach more than 400 in 2008 and that of the convenience stores exceeded already 10,000.

Market shares

Among total retail market worth of 150 trillion KRW (+5,7%) in 2007, sales for all large discount stores comes first with around 28 trillion KRW, followed by department stores with 18,5, Online shopping mall 15,5, supermarkets 7,8, convenient stores 5,7 and TV home shopping with 4,2 trillion KRW.

Two retail giants, Lotte and Shinsegae group secured respectively 10,0851 trillion won and in annual sales, 17,7 billion KRW and 10,1028 trillion won in 2007 with department store, large discount stores, premium outlet stores, online or tv home shopping.

Organizations in the retail sector

Korea Association of Convenience Stores (KACS)
Korea Chainstores Association (KOCA)

We can identify professional tradeshows on your sector.

Market access procedures

International Conventions

Member of World Trade Organisation
Member of OECD
Party to the Kyoto protocol
Party to the Washington convention on International trade in endangered species of wild fauna and flora
Party to the Basel convention on the Control of Transboundary Movements of Hazardous Wastes and their disposal
Party to the Montreal protocol on Substances that deplete the Ozone Layer
Wassenaar arrangement on export controls for conventional arms and dual-use goods and technologies

Main International economic cooperation

Korea signed in 2010 'The Korea- US Free Trade Agreement (FTA).
Korea is a member of Asia-Pacific Economic Cooperation (APEC) and ASEM (Asia-Europe Meeting). It is a signatory to multilateral and bilateral agreements with many countries. Korea signed in October, 2009 a Free Trade Agreement with the EU. The country have signed a trade agreement with 21 other countries in the São Paulo Round of the Global System of Trade Preferences among Developing Countries (GSTP).

Non tariff barriers

Approval or authorization of certain items that can be imported by obtaining certification, permission and type approval. Those requirements are maintained mostly for the protection of public morals, human health, hygiene and sanitation, animal and plant life, environmental conservation or essential security interests in compliance with domestic legislation requirements or international commitments.

Quantitative import restrictions on Rice, Petroleum, LPG (Liquefied Petroleum Gas), agricultural fertilizers, crop seeds, animals and animal products, nuclear materials, narcotics, foods and food additives, foreign publications, firearms and explosives.
More information on Korean customs service.

Customs duties and taxes on imports

Korea applies a Customs tariff which is among the lowest in the world. It is 8% on average.

The WTO gives a sheet summarizing the Customs tariffs of the country.
For complete details of Customs duties by classification of the products, consult the Korean page on the APEC site .

Customs classification

Korea uses the harmonized system by the World Customs Organization, is used as a basis for Customs tariffs and for the collection of international trade statistics. Over 98% of the merchandise in international trade is classified in terms of the HS.

Import procedures

The Korea Custom Service (KCS) has been operating a web-based clearance system 'UNI-PASS' since October 2005.
Import procedure is listed on the website of KCS.

Importing samples

Korea allows temporary importation of commercial samples, professional equipment and certain advertising materials by a nonresident individual.
Korea accepts ATA carnet.

For further information

Korean Customs Office
Ministry of Foreign Affairs and Trade

We can indicate you which are the customs duties applied to your product.

We can indicate you which are the customs duties applied to your product.

Find out the local taxes that apply to your product.

Organizing goods transport

Main useful means of transport

In Korea, the roads have been the most important infrastructure carrying over 90% of the country's transport volume.

Korea has 57 railroad routes and they still act as the main mode of transport for large cargo. And there are 8 international airports including Incheon International airports and 7 domestic airports.

Total cargo handling in ports throughout Korea is around 17 million TEUs. In terms of a case-by-base of cargo handling figures, import and export cargo reaches 11 million TEUs . Transit cargo is to 6 million TEUs.
Korea has three main port authorities, Busan Port Authority (BPA), Incheon Port Authority (IPA) and Ulsan Port Authority (UPA).

Ports

Busan Port Authority (BPA)
Incheon Port Authority (IPA)
Ulsan Port Authority (UPA)

Airports

Korea Airports

Sea transport organizations

Ministry of Construction & Transportation (MOCT)

Air transport organizations

Ministry of Construction & Transportation (MOCT)

Road transport organizations

Ministry of Construction & Transportation (MOCT)

Rail transport organizations

Ministry of Construction & Transportation (MOCT)

Get a ballpark figure for transportation costs for your product in this country through a shipping estimate

Identifying a supplier

Type of production

The manufacturing sector contributes nearly 40% to the GDP while as the services sector contributes around 57,2%. Korea's main industrial activity sectors are textile, steel industry, automobile manufacturing, shipbuilding and electronics (semiconductors, mobile phone, TV, etc).

Business directories

KorCham Biz
Korea International Trade Association (KITA)
Korean Buyer DB of KOIMA
Korea Yellowpage

Manufacturers associations of the main industries

Korea Automobile Manufacturers Association (KAMA)
Korea Electronic Industries Cooperative (KEIC)
Korea Federation of Textile Industries (KOFOTI)
Korea Shipbuilders' Association (KOSHIPA)
Korea Iron & Steel Association (KOSA)
Korea Automobile Importers & Distributors Association
Korea Pharmaceutical Trades Association
Korea Wines & Spirits Importers Association

Trade Agencies and their representations abroad

Korea Chamber of Commerce & Industry
Korea International Trade Association (KITA)

Enterprises federation

The Federation of Korean Industries (FKI)
Small and Medium Business Administration (SMBA)

Standards

National standards organizations

Korean Agency for Technology and Standards (KATS)

Integration in the international standards network

International Level: The International Standard organization (ISO); The International Electrotechnical Commission (IEC).

 

Asia-Pacific Level: The APEC/SCSC; The ASEM/TFAP/SCA, Trade Facilitation Action Plan/Standards and Conformity Assessment of the Asia-European meeting; The Pacific Area Standards Congress (PASC).

Classification of standards

KS consists of 16 categories from General to Information Industry and is divided into three parts. More information available on The Korean standards website.

Online consultation of standards

Korean Standards Service Network

Certification organizations

Korean Standards Association (KSA)

Find out the standards and labelling requirements that apply to your products

Intellectual Property

National organizations

Korea Industrial Property Office (KIPO)
Korea Institute of Patent Information (KIPI)
International Intellectual Property Training Institute (IIPTI)
Korea Copyright Commission
Korea Patent Attorneys Association (KPAA)

Regional organizations

Intellectual Property Rights Experts Group (IPEG)

International membership

Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention for the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)