Procurement, sourcing and import from South Korea

Purchasing products or services seems easy, but this is not always the case. How do you know that you have the best deal, especially if you haven’t done much business before in South Korea?

It already helps if you have a structured approach for your procurement and to keep your options open. Working with a local consultant or agency may help to identify more potential suppliers and to get the products that you just bought accross the border to their destination.

Find the right suppliers in South Korea

South Korea, located in East Asia, is renowned for its advanced technology exports and manufacturing prowess. The country primarily exports electronics and electrical machinery, including semiconductors, display panels, and telecommunications equipment. These products are pivotal to South Korea’s high-tech manufacturing industry and global technological innovations.

South Korea is also a major exporter of automobiles and automotive parts, with brands like Hyundai and Kia leading the industry. The country has a strong presence in shipbuilding and steel production, exporting ships, offshore structures, and steel products. Additionally, South Korea exports petrochemicals, refined petroleum products, and machinery and equipment.

In addition to its industrial exports, South Korea offers expertise in high-value manufacturing and technology sectors, making it a preferred destination for outsourcing and investment. The country’s robust infrastructure, research and development capabilities, and supportive government policies have fostered innovation and growth in industries like biotechnology, aerospace, and renewable energy.

Travel to South Korea for a better impression

The best preparation for doing business in any country is visiting it. This way you can experience the culture, check the shops and build your network.

Where it comes to hotels, research shows that if you check these platforms, in 80% of the cases you have the lowest room rates.

A structured approach for sourcing from South Korea

If you take your sourcing step by step, then it can’t go wrong.

Step 1

Supplier search

Try to identify in total 6 to 10 possible suppliers and check their websites. Approach them with a general request to see whether they have the products or services you need.

Step 2

Supplier selection

Submit your requirements to a group of three to five selected suppliers and ensure you get the right comparable quotations to make a choice. Negotiate with one or two of them to get the best result.

Step 3

Supplier Management

Now start collaborating, making sure you have an efficient ordering process and limited risks where it comes to quality control and shipping the products.

Shipping your products

If you buy physical products, you need them to get the shipped out of South Korea. Depending on the country you are in, this can be a challenge.

First of all you may have to pay import duties or settle VAT. There are certain thresholds for both of these charges, e.g. while importing in the EU you don’t have to pay import duties on any shipment worth less than € 150.

There may also be non-financial bariers, like certifications or approvals to be obtained. Especially for food, cosmetics or medicine this may be the case. Check this in advance, even before you invest in your marketing.

Frequently asked questions

How to find the right vendor or supplier in South Korea?

The best way to find a supplier or service provider in South Korea is to first have clear exactly what you are looking for. Also determine what size, qualities or other characteristics your vendor should have. Only then start searching in the market and always ask proposals for a concrete project to three or more parties.

Is buying from South Korea safe?

Yes, in general buying goods or services from South Korea is safe. Of course there are always unforeseen hiccups, but most can be managed. Only if you are at a greater distance from the country, in a different time zone or English can not be the common language, then there may be misunderstandings and your supplier may be difficult to control. Having a local representative for your company can then be wise.

Can you purchase for low prices in South Korea?

In developing or more developed countries also labour costs are getting higher, so there is no real bargain any more. On the other hand, the more developed a country is, the better the certainty for deliveries and the more focus there is on quality.

How to find a procurement consultant for South Korea?

There are various companies offering sourcing and procurement services, and it is always good to have a comparison. Please note that we have transparant packages for supplier selection, and most important, a local team in South Korea.

How to source products from South Korea?

Always make sure first that South Korea is the right place to source for this product, or otherwise start searching in a few countries at the same time. Then list at least 5 or preferably 10 companies and start approaching them (or have this done by us) in order to check that they can provide what you want. Then start the real comparison.