- A Jusik Hoesa with the right business codes is the usual trading vehicle.
- The company registers with Korea Customs to import and export.
- Imports pay customs duty plus 10% import VAT; the VAT is reclaimable.
- Exports are zero-rated, so exporters usually receive VAT refunds.
A trading company buys, moves and sells goods across the border. In Korea that means three systems working together: the corporate registry, the tax office and Korea Customs. Get the codes right at the start and each one recognises the others.
Set-up
The business registration certificate lists the business type and items. For a trading company these should cover wholesale and trade in your product categories. The company then registers with Korea Customs as an importer or exporter, and usually appoints a licensed customs broker for declarations.
Duties and VAT
Imports pay customs duty according to the tariff and origin — often reduced or zero under a free trade agreement if the certificate of origin is in order — plus 10% import VAT on the customs value including duty. The import VAT is reclaimed through the company’s VAT return.
Get the codes right at the start and each system recognises the others.
Export VAT refunds
Exports are zero-rated, so an exporting company’s input VAT on purchases is refunded. Early refunds are available for exporters. The first large refund often brings questions or a premises visit from the tax office — another reason a trading company should have a real address.
Questions readers ask
How do I start an import-export business in Korea?
Set up a Jusik Hoesa with wholesale and trade business codes, obtain the business registration certificate and register with Korea Customs.
What taxes apply to imports?
Customs duty by tariff and origin, plus 10% import VAT that is reclaimable.
Do exporters get VAT refunds?
Yes. Exports are zero-rated and input VAT is refunded; early refunds are available.
Do I need a customs broker?
It is not compulsory, but most companies appoint a licensed broker for declarations.