Setting up

Selling online to Korean customers: e-commerce set-up for foreign companies

Korea is one of the most online retail markets in the world. Customers expect next-day delivery, Korean-language support and a checkout they already know. The question is whether you sell to them from abroad or from inside.

SETTING UP Shop
The short version
  • Two routes: sell cross-border from abroad, or set up a Korean company and sell locally.
  • Local selling needs a business registration certificate and mail-order sales registration.
  • Korean marketplaces and payment providers generally expect a Korean entity and bank account.
  • Cross-border sellers of digital services may need to register for Korean VAT.

Korean shoppers buy online more than almost anyone, through a handful of dominant marketplaces and super-apps, and with very high expectations of speed. For a foreign brand there are two sensible ways in.

Figure
Korean companyCross-borderMarketplace accessFast local deliveryLocal payments and invoicesSet-up effortFixed costs
Selling from inside Korea versus shipping from abroad.

Route 1: cross-border

You sell from your own website and ship from abroad. Set-up is light; the trade-offs are delivery times, customs on the buyer’s side and limited marketplace access. Foreign suppliers of digital services to Korean consumers should check Korea’s simplified VAT registration rules.

Route 2: a Korean company

A Jusik Hoesa with a business registration certificate and a mail-order sales registration (통신판매업 신고) with the local district office can hold stock in Korea, join marketplaces, take local payment methods and issue Korean invoices. Logistics can be outsourced to a fulfilment partner.

Interactive · route finder

Korean customers expect next-day delivery and a checkout they already know.

The set-up checklist

  1. Incorporate the company and get the business registration certificate.
  2. Register for mail-order sales with the district office.
  3. Open the corporate bank account.
  4. Sign up with a payment provider and the marketplaces.
  5. Arrange warehousing and fulfilment.
  6. Set up VAT and electronic tax invoicing.

Questions readers ask

Can a foreigner sell online in Korea?

Yes — either cross-border from abroad or through a Korean company.

What is mail-order sales registration?

A registration (통신판매업 신고) with the local district office required for online sellers in Korea.

Do Korean marketplaces accept foreign sellers?

Some have cross-border programmes, but most local selling expects a Korean business and bank account.

Do I charge Korean VAT?

A Korean company charges 10% VAT; foreign digital service suppliers may need simplified VAT registration.

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