U.S.
Commercial Service
Best One
Stop Resource For Exporting to
ROK
Though U.S. exports to the
Republic of South Korea (ROK)
took a bad hit during the
Asian economic crisis of late
1997 through 1998; statistics
show them rising steadily once
again. The U.S. Commerce
Department lists the ROK as
one of its 10 "Big
Emerging Markets" (BEMs),
and aggressively promotes a
wide range of services
designed to encourage U.S.
exports to this market of
nearly 50 million highly
urbanized consumers.
Export professionals
recently returning (or
exporting for the first time)
to the ROK are encountering a
dramatically changed
post-crisis landscape of
lowered trade barriers and
import tariffs, according to
the most recent issue of the Korea
Commercial Guide (U.S.
Commercial Service South Korea
Web site: http://www.buyusa.gov/korea/en/.
U.S. Commercial Service,
South Korea
The best "one
stop" resource for
exporting to the ROK is the
U.S. Commercial Service (CS)
office in Seoul, South Korea.
Among the attractive and
low-cost services it offers
U.S. exporters are the
following:
.
This can be arranged
directly through the Seoul
office by sending a fax
(82-2-739-1628) or via email (Office.Seoul.box@mail.doc.gov
). CS Korea requires six
weeks lead time to schedule
the service. Provide your
travel dates, and a Trade
Specialist in your industry
sector will respond. The fee
($600 per day, $350 for each
additional day) includes
setting up six to eight
appointments per day in the CS
Seoul Business Center, or
three to four appointments at
Korean contacts' offices,
background on each company,
and market research relevant
to your appointments. Hotel
accommodations,
transportation, interpreters,
and printing can be arranged
at additional cost.
- Single Company
Promotions
. First-class
business facilities,
together with modem
audio/visual equipment, are
available for product
promotion, press event,
small reception or business
meetings (contact the U.S.
Embassy Business Center at
fax: 82-2-739-1628 or
e-mail: office.seoul.box@mail.doc.gov).
Rental of Business Center
space starts at $1000 per
day.
- Market Research
& Information.
CS Korea publishes
numerous reports to help
exporters choose markets
and establish effective
selling and distribution
strategies. International
Market Insights (IMI)
report on specific Korea
market conditions and
opportunities for U.S.
business. IMI reports can
be accessed through http://www.export.gov/marketresearch.html.
Industry Sub-Sector
Analyses (ISAs) are
in-depth market research
reports on specific
industry subsectors with
data on market potential
and demand trends, market
size and import
statistics, competition,
distribution practices,
regulations and standards,
best sales prospects, end
users, and key industry
contacts. ISAs are also
available through www.stat-usa.gov
or through your local US
Department of Commerce
Office.
- Customized Market
Analysis. A
Customized Market Analysis
(CMA) provides an accurate
assessment of how your
product or service will
sell in Korea, at a cost
far lower than for
comparable customized
research. Specialists
contracted by CS Korea
conduct interviews with
knowledgeable local
sources, such as
importers, distributors,
end users, and
manufacturers of products
comparable to yours (allow
60 days for completion,
cost: $2400). CMAs can be
ordered through your local
US Department of Commerce
Office.
-
Trade
Fairs, Events . To
showcase U.S. exporters'
potential products or
services, CS Korea organizes
a wide variety of special
expositions annually in
Korea. For a full listing,
see the "Trade Events
& Activities"
section of the CS Korea Web
site http://www.buyusa.gov/korea/en/.
- Agent Distributor
Service
. CS
Korea's Agent/ Distributor
Service (ADS) can identify
and screen Korean companies
that are potential agents,
distributors, or
representatives for your
product or service. Send 10
to 15 sets of product
literature, and CS Korea
will provide names of Korean
firms that have government
policies in allowing the
common citizen to travel
abroad has enlightened
Korean consumers returning
from abroad and has
heightened consumer demand
for products to which they
had no prior exposure.
Reports can be ordered
through your local US
Department of Commerce
Office.
Tariffs and Import Taxes
The average applied tariff
rate is 7.9%. Low tariff rates
of 1% to 3% are imposed on raw
materials, while most
manufactured products are now
subject to an 8% tariff rate.
Korea has a flat 10%
Value-Added Tax (VAT) on all
imports.
Import Licenses/Procedures
In January of 1997, import
procedures and the required
documentation were simplified.
Goods entering Korea no longer
require an import license
(I/L) issued by a foreign
exchange bank. Separate
approval for payment in
foreign currency is also no
longer required. All
commodities can be freely
imported unless they are
included on a Negative list.
Methods of Payment
There are three documentary
practices in settling Korea's
imports: (1) sight and usance
Letters of Credit (LC); (2)
Documents against Acceptance
(D/A) and Documents against
Payment (D/P); and (3) Open
Account Transactions. D/A and
usance LCs are forms of
extended credit in which the
importer makes no payment for
the goods until the date
called for in the credit; the
importer may clear the goods
from customs prior to payment,
however. D/P is the same as
D/A except that the importer
cannot clear the goods from
customs prior to payment. In
some cases an importer can
clear goods prior to payment
under a sight LC. LC
transactions follow standard
international UCP codes.
WebGuide
Please check out our
companion WebGuide
for Korea for numerous
information sources for firms
interested in the Korean
Market.
For Additional Information
For additional information
about Korea or other export
markets, please contact your
local office of the US
Commercial Service, US
Department or Commerce at http://www.export.gov/comm_svc/eac.html.
Date Updated: March 27, 2007
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