Discusses pricing formula and other fees, value-added tax (VAT), etc.
Last Published: 8/29/2019

In Korea’s export-driven economy, price competitiveness is a key factor.  Korean manufacturers try to purchase lower-priced, quality raw materials or equipment.
Korean buyers generally consider that U.S. goods:

  • Have an overall good reputation
  • Are of high quality and good performance
  • Are relatively expensive, especially because of shipping and other logistical costs.
  • According to the Korean Act on Consumers, consumer items are required to be labeled with the following (with specifics varying among products):
    1. Denomination, use, ingredients, material quality, performance, size, price, capacity, permitted number of goods and contents of services
    2. Name (including address and telephone number) of the enterprise that has manufactured, imported, sold or provided goods, etc., and the origin of the goods
    3. Method of use, matters of caution and warning in use and keeping
    4. Date of manufacture, quality guarantee period or, in case of goods such as foods, medicine etc., which are apt to be altered during distribution, the validity period of such goods
    5. Dimension, location and method of indication, and Organization (including its address and telephone number) and method of settlement for any complaint on goods etc., or any consumer’s damage due to goods, etc.

A 10 percent value-added tax (VAT) is included on services and products.

Commissions in Korea are dependent upon the type of product and the transaction amount.  For larger contracts, commissions generally decline as the contract value for a major purchase/acquisition/contract increases.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.