Wbring the World to Korea, and take Korea to the World.

HOME INSIGHTS All
15 MAY 2019

Registering a Company in Korea - Procedures, Types, Documents Required

South Korea, also famous as the ‘Asian Tiger’, is one of the highly developed global economic powers in the present-day world. Apart from its industry-driven prosperity, the country also has an open-door policy towards foreign investment.

If you want to establish a business or open a new business branch for your existing company, there is no place better than South Korea for you. Although different sectors offer a range of opportunities, it is wise to do a market study so as to identify the most ideal approach, prior to launching a new business venture.

Consistent steps by the South Korean government for the last several years has given a boost to investment and business activities. The country is doing well in numerous sectors, specifically, electronics, processed food, engineering and automobiles.



Procedures

If an expat wants to register a company and physically relocate to Korea to run your business, a business visa (D-8) would be required. One needs to apply for this at the Korean embassy or consulate of the respective country and acquire a residence permit from the South Korean immigration services. The task of getting to know the best business in Korea takes plenty of exploration and telephone calls.

Registering a company won't require you to be physically present in Korea while processing but you should provide us a number of documents required. (most of them will need to be notarized and apostilled)

Before filing your application with the authorities, you are required to register for all the essential licenses and permits that are specific to the domain of the industry in which your company will operate. Keep aside some spare time to translate the applicable documents into Korean.

The least initial investment capital for international investors that has been fixed by the Foreign Investment Promotion Act in South Korea is 100m Won (90,000 USD or 75,000 Euro). Engaging with Korean local specialists like us can quicken the registration process and get going in the shortest possible time.



Things to Know When Doing Business in Korea

1.   Hire a manager who is adept at both languages, English and Korean, since all government dealings in Korea are in Korean. This would make it much easier to complete government formalities of setting up a business in the most effective and efficient manner.

2.   Entrepreneurs are recommended to be consistent in their usage and signature of service contracts with their vendors and business partners while doing business in Korea.

3.   Do not make your business partner or South Korean shareholders your nominee just to fulfill the requirements of doing business in Korea. You should have a partner whose contributions add a lot of value, in terms of helping you form your South Korean company.

4.   As Confucianism runs deep in Korean ethics, authority and elders are well honored. Hence for serious consideration, it is a must to have an upper-class official at every crucial meeting with Korean vendors and customers.

5.   Staff members in South Korea are hopeful that both, their professional as well as personal welfare is a priority for their employers.

6.   Koreans are very serious about situations that make them feel awkward or embarrassed.      So it is to be kept in mind to stay clear of anything that can cause such a situation.

7.   To make the most of the success of your startup venture business in Korea, it is advised to carry out a thorough feasibility analysis, chalk out an elaborate business plan, and connect with the Korean Inland Revenue Department.

8.   Setting up a new business in South Korea calls for a lot of communication with your local South Korean embassy and taking help from a good consultant company that has helped a lot of businesses make it big.

9.   A key element for setting up a business in Korea is extensive research of the industry that you intend to invest in. It is best to outline an elaborate business plan, inclusive of an in-depth market study and facts on rivals.

10.   Once your business is up and running in South Korea, yearly audited financial statements and tax returns are to be submitted to the South Korean authorities for their perusal. This entire process takes both, time and money and moreover, it is a brilliant idea to hire a consultant that is most effective and efficient in resolving this accountability.


Korea Company Registration, Korea Business Registration, Doing Business in Korea


Entity Types in Korea

Being a new entrant to the Korean business world, you will be required to get all the information you can lay your hands on with respect to the specific legal forms offered in this country. The best known and regular types of businesses that you can set up in Korea are the FDI Company (Foreign Capital-Invested Company), Branch Office and Liaison Office.


1. FDI Company (Foreign Capital-Invested Company)

· Legal entity independent of the foreign company (Subsidiary of an offshore enterprise)

· Various allowances according to Korea’s FDI laws and legislation (e.g., free trade zones)

· Minimum investment of KRW 100,000,000 per investor

· Scope of getting a D-8 Investment Visa

· Chances of availing tax support & incentives

· Simpler transfer of funds to the parent company

 

The types of businesses that fall under the FDI Company, governed by the Korean Commercial Code (KCC) are:


Joint Stock Company (Chushik Haesa)

Presently, the only business entity that can legally open its shares to the general public is Chushik Hoesa.  Most of the entrepreneurs in Korea prefer the Chushik Hoesa of business type.  It is also a widely popular corporate form with foreign enterprises setting up subsidiaries in Korea.  For the vast majority, a Yuhan Hoesa more recommended.


General Partnership (Hapmyeong Hoesa)

In the system of Hapmyeong Hoesa a general business partnership is established between two or more partners. In this case, unlimited liability is to be preserved between the partners. The entity is accountable for corporate taxes and therefore, is not a privileged entity.


Limited Partnership (Hapja Hoesa)

In a Hapja Hoesa type of partnership, one or more partners must continue with unlimited liability and one or several partners can practice limited liability.  The entity holds the responsibility for payment of Korean corporate taxes and hence, cannot be regarded as a pass-through entity.


Limited Liability Partnership (Hapja Johap)

Hapja Johap shares similarities with Hapja Hoesa. In a Hapja Johap one or many partners can have unlimited liability and one or several partners may have limited liability.  The big distinguishing factor between Hapja Hoesa and Hapja Johab is that Hapja Johap, similar to Johap (partnership) is not an independent legal entity.

The tax treatment issues being unsettled; nevertheless, it is likely to get a double taxation waiver, hence, it is supposed that it will be considered a pass-through entity.  Following the resolution of the tax treatment issue, this format may be in majority of the scenarios, a more suitable solution than the Yunhan Hoesa. This is in the case of those who are likely to gain from the pass-through character of the entity.

 

Limited Liability Company (Yuhan Chaekim Hoesa)

Yuhan Chaekim Hoesa resembles U.S. LLC in a lot of ways. This is aimed at providing the benefits of both, Yuhan Hoesa and Chushik Hoesa. The liability, in this case, is limited; shares can easily be transferred between members, bonds can be issued, there are no rigid capitalization prerequisites, no rigid director or auditor regulations are enforced and if the entity chooses to exit, the formalities are easy.


Limited Liability Corporation (Yuhan Hoesa)

Yunhan Hoesa is a tightly-knitted company that is now allowed to have more than 50 shareholders.  Lately, some of the international firms (as well as a few international hedge funds) have opted for the Yuhan Hoesa corporate structure.

Several businesses have, in recent times, opted for this type of a corporate configuration, considering the likelihood of U.S. and E.U. tax rebates (pass-through benefits) and easy reporting directives. Moreover, a few provisions are related to directors, publishing balance sheet and accounting.  However, securing shares and releasing corporate bonds is illegal.



2. Branch Office

· Regarded as the same legal entity as an overseas company (Headquarters)

· An out-of-the-country manager is designated as the branch manager

· The characteristics of the branch can be attributed to those of the headquarters

· Might participate in generating revenue in Korea


3. Liaison Office

· Has the option of not engaging in revenue generation in Korea.

· Set up with the purpose of a company to carry out R &D, advertisement, research and look into ways to enter the Korean market.




South Korea Tax System

Foreign companies that have been permanently established in South Korea have to pay taxes on their Korean-derived income. Foreign firms that produce income earned in Korea without having a permanent set up in the country are liable to pay taxes within the range of 2% and 20%.

Chargeable income earned in Korea comprises services to natural individuals, interest on bonds and financials, rent revenue from ships and large equipment. There are also provisions for foreign tax rebates, but fixed at the minimum amount paid overseas or the sum of Korean income taxes times the ratio of foreign-source earnings to global total chargeable income.

 


Tax Liability for Foreign Firms

Foreign companies that have a permanent set up in Korea are charged the standard corporate income tax on the income that they earn in Korea. Foreign enterprises that are not permanently established in Korea, but earn income in the country from allowable operations are liable to be taxed within the range of 2% to 20%. These qualifying operations comprise personal services, interests on bonds and financial instruments and leasing income from vessels and heavy equipment.

Companies can avail of foreign tax credit, but it is fixed at the lower amount of the tax paid overseas or the Korean tax chargeable multiplied by the ratio of income earned abroad to the total chargeable income.  


 Business in Korea, Korea Company Setup, Company Business Registration


Capital Gains Taxation

For inhabitant businesses, capital gains are just another ordinary business income and attract the normal corporate tax rate. For foreign businesses, capital gains earned within Korea attract taxes of either 11% of the sales or 22% of the gains (the lesser of the two). By and large, special taxes are not imposed on gains resulting out of mergers.

Foreign businesses and persons with holdings lower than 25% of the outstanding shares of a registered firm for five years prior to the share transfer get tax relief, irrespective of whether a tax treaty is applicable or not. Contrary to this, the management of capital gains earned by nonresidents is based on the stipulations of the relevant double taxation agreements.

A reform plan to lower the rate from 25% to 5% effective July 2018 has been deferred to be reviewed before 2018 closes. Discussions are on regarding imposing a tax on capital gains earned from cryptocurrency transactions.



Key Permitted Deductions and Tax Credits

A dividends-received deduction (DRD) is applicable to dividends transferred among inhabitant enterprises. A variety of tax incentives are provided on eligible operations that are in line with the Tax Incentive Limitation Law, along with investment in advanced technology businesses or those situated in free trade zones.

The investing company enjoys a 3-year or a 5-year tax holiday, after the year it starts earning income that can be taxed. The company then avails a 50% tax rebate for two years after this beginning period of exemption from taxation.

Launching expenditure, like incorporation spending, founders’ wages, and registration charges and taxes can be deducted if the expenses are logged according to the articles of incorporation and actually attract a payment.

Net operating losses can be postponed for 10 years as far as 70 percent of a financial year's taxable income (lowered from 80% as of 2018, will undergo further reduction to 60% on 1 January 2019) (is applicable to every company, except SMEs). Rescheduling losses are not allowed for large companies; despite that, SMEs can push back their losses to the preceding accounting year.



Miscellaneous Corporate Taxes

A capital registration tax of 0.48% (or 1.44% for Seoul Metropolitan Area) is imposed. A property tax of 0.15% to 0.5% (0.24% to 0.6% plus additional education cost) is imposed on business as well as residential property and buildings. A company holding real estate worth more than KRW 600 million, is liable for payment of real estate tax besides property tax. Token stamp duty applies to contracts related to creation, transfer and change of rights.

An acquisition tax of 4.6% (including surcharge) is usually applicable on purchase of real estate, automobiles and heavy equipment (a house purchase may gain from a lower tax rate between the range of 1.1% and 3.5%). A registration tax between 0.02% and 5% is charged on the activity of registry of the creation, modifications, or lapse of property ownership rights or other titles and incorporation with the relevant authorities.

 


South Korea Visa Requirements

With most of the passports, there is no need for a visa to stay up to 90 days in South Korea. However, it is a must for the traveler to have a passport valid for 6 months outside of the stay, a back and forth ticket and enough money for the duration of the stay. There may be a requirement of a visa in case the travel to South Korea is for reasons apart from basic business meetings.

 


Visa Information

After registering a company, if you would like to physically stay and do business in Korea, you will need to apply for your visa. D-8 visa will allow foreign investors to stay in Korea while running the business under the foreign-invested company. Application for the visa should be made 30 to 90 days before your travel to South Korea. The validity of the Visa starts from the date of issue. The validity of the issued visa is decided by the Embassy/Consulate and may not be the same as shown in the advertisement.



Conclusion

Korea is one of the top-rated countries in the world, in terms of its power supply, water resources and telecommunications network. Electricity is consistently available, at nominal charges, on the other hand, water to be used for manufacturing purposes is also easily available from local sources in the majority of the cases. The whole country is well-connected with mobile broadband services that can be availed in just a day via wired or wireless service provisioning.

The Government of Korea aggressively safeguards intellectual property rights with its consistent endeavors in the direction. It has also made the patent examination process highly efficient, with regular examinations at much shorter intervals, as compared to those in other developed countries. This blend of sturdy IPR security and swift patent services is another reason for Korea’s safe and secure investment environment for foreign investors that makes it Business in Korea most favorable.


For more information about doing business in Korea, contact us. We are specialized in Korea company incorporation, tax & accounting, visa, corporate bank accounts, etc.

Explore More Insights

Seoul: The Gateway to Dynamic Business Expansion and Investment

For international investors and entrepreneurs seeking fresh opportunities, Seoul, Korea, emerges as an exceptional choice for expanding businesses and investments. Positioned strategically at the crossroads of Northeast Asia, boasting robust trade infrastructure, and nurturing a dynamic business environment, Seoul offers unparalleled advantages for those aiming to access the region's dynamic markets. This piece will delve into the rationale behind considering Seoul for business expansion or investment, supported by a plethora of geographical, economic, and cultural factors. From its stature as a global trading center to its reputation as a frontrunner in technology and innovation, Seoul presents enticing prospects for growth and prosperity. Let's explore the numerous reasons why placing Seoul atop your list for business expansion or investment endeavors is strategic. Geographical Benefits Located in the heart of Northeast Asia, Seoul enjoys a strategic positioning, linking it to over a quarter of the global population. This pivotal location renders it a vital nexus for trade and commerce, bridging the Asia-Pacific region with Eurasia and the Americas. Furthermore, Seoul's close proximity to major urban centers and its efficient transportation network ensure swift and convenient access to key markets. Northeast Asia's Trade and Logistics Hub Incheon International Airport, situated near Seoul, stands among the world's premier airports, ranking 4th in 2023 according to Skytrax. With more than 61 domestic and international airlines serving 105 cities across 44 countries, it serves as a bustling hub for both passenger and cargo traffic. The airport's global connectivity and cutting-edge facilities position it as an optimal gateway for businesses seeking expansion into the region. Global E-commerce Market Leader Korea boasts one of the globe's largest e-commerce markets, securing the 6th position worldwide in terms of sales volume. With a rapidly expanding digital economy and a populace well-versed in technology, Seoul presents vast opportunities for enterprises operating in the e-commerce sector. From established online retail giants to burgeoning startups, Seoul's e-commerce landscape is flourishing and ripe for investment. Sturdy Urban Infrastructure Seoul's urban infrastructure is unrivaled, featuring world-class ICT infrastructure and a highly advanced e-government system. The city consistently ranks first globally for its high-speed communication networks (5G) and boasts an 86.8% penetration rate for free public Wi-Fi. Moreover, Seoul's efficient public transportation system and modern amenities make it an appealing destination for businesses and residents alike. Hub for Global Brands Seoul hosts some of the world's most renowned brands, including Samsung , LG, and Hyundai. These global titans have chosen Seoul as their headquarters, capitalizing on the city's skilled workforce and advanced infrastructure to propel innovation and expansion. Additionally, Seoul's reputation as a testing ground for novel products and services renders it an ideal locale for enterprises seeking to introduce or broaden their operations. Investment in Seoul's Future Seoul actively invests in pivotal industries such as biotech, ICT, AI, and services to nurture innovation and economic development. The city boasts a vibrant startup ecosystem, with over 27 unicorn companies calling Seoul home. Furthermore, Seoul's dedication to research and development, coupled with generous incentives for startups and businesses, positions it as an enticing destination for investment. Elevated Education Standards and Favorable Learning Environment Seoul's populace boasts commendable levels of educational achievement, surpassing OECD averages in tertiary education attainment. The city's robust university system and nurturing academic atmosphere render it an optimal choice for education and research pursuits. Mega Metropolis with a Population of Ten Million: Seoul With a populace numbering approximately 10 million, Seoul stands as a mega metropolis, offering a vast consumer market for enterprises. Its rich and diverse culture, alongside dynamic consumer behaviors, positions it as an attractive hub for businesses aiming to capitalize on global trends. The Visionary Approach of Seoul's Mayor The Mayor of Seoul has articulated ambitious plans to attract foreign financial entities to the city. These initiatives encompass a 50% reduction in acquisition and property taxes, a three-year exemption from corporate income tax, followed by a subsequent two-year 50% tax reduction. Additionally, the city plans to establish financial support facilities equivalent to seven football fields in Yeouido, underscoring its dedication to nurturing a conducive environment for business expansion and investment.Reference: Invest Seoul Conclusion In summary, Seoul, Korea, presents a host of compelling incentives for foreign investors and entrepreneurs considering business expansion or investment ventures. From its strategic positioning and robust trade infrastructure to its thriving business ecosystem and investor-friendly policies, Seoul offers unparalleled prospects for growth and prosperity. Whether you're a budding startup seeking entry into a dynamic market or an established corporation aiming to extend your global reach, Seoul should feature prominently on your radar. With its innovative ethos, top-tier infrastructure, and vibrant cultural scene, Seoul emerges as a city of boundless opportunities. As you navigate the intricacies of expanding your business or investing in Seoul, Pearson & Partners stands poised to offer comprehensive support every step of the way. Our services span incorporation, tax accounting, and investment declaration, tailored to meet the diverse needs of our clients. With our expertise and unwavering commitment to client satisfaction, we facilitate a seamless transition into Seoul's dynamic business landscape. Reach out to us today to embark on a journey toward growth and prosperity in one of the world's most dynamic cities.

read more

Korea Company Formation: Navigating Joint Ventures for Success

Ensuring the prosperity of your business in Korea requires skillfully crafting a Korean joint venture, beginning from the establishment of your relationship with joint venture partner(s). Merely relying on downloaded joint venture contracts or partnership agreements from the internet is insufficient. It's vital to delve into your partner's mindset and background, understanding their specific needs. In many cases, non-Korean entities can succeed in Korea without entering a joint venture with a Korean partner. Conversely, Korean entities may not prioritize or adhere to the criteria outlined in joint venture agreements. This article offers an overview of critical aspects of joint venture agreements in the Republic of Korea, emphasizing the importance of a customized approach to ensure success in company formation. Considerations for Company Formation Before embarking on a joint venture in Korea, your consultant must meticulously address several vital aspects related to your company formation and incorporation instruments.1. Clearly define the obligations, tasks, roles, securities, and expectations of each partner.2. Establish guidelines for dispute resolution, including language and medium.3. Determine the governance hierarchy within the joint venture.4. Plan for assessment, conclusion, and potential termination of the joint venture.5. Outline recourse mechanisms for any infringement issues.6. Develop a contingency plan for unforeseen challenges.7. Evaluate the inclusion of external investors in the joint venture.8. Define the duty of care expected from each partner.9. Restrict the authority of the representative director in company formation.10. Specify the authority to hire and dismiss the representative director.11. Clearly articulate the development goals of the joint venture.12. Decide whether to maintain majority control or include minority protection clauses.13. Plan for the reinvestment of earnings generated by the joint venture.14. Consider hiring an independent accountant and employing an impartial legal auditor.15. Evaluate the anticipated benefits from the joint venture.16. Determine the financial implications associated with the joint venture. 17. Define the mission and objectives of the joint venture.18. Explore various financing options available for company formation.19. Select the appropriate business structure, such as Chushik, Yuhan, etc. This list covers essential considerations, and additional factors may apply based on the unique circumstances of your company formation in Korea. Successful Business Ventures in Korea Achieving success in joint ventures in Korea hinges on specific circumstances that carry significance for all parties involved. Several critical scenarios often lead to prosperous joint ventures: 1. Utilizing Established Channels: When the Korean party can directly access established distribution channels or logistics chains and the non-Korean party offers a compatible product, a distribution/license agreement may be preferable to a joint venture. However, careful consideration is advised to avoid potential harm to the relationship. 2. Industry Restrictions and Specialization: In industries less open to foreign involvement, such as publishing, a joint venture becomes relevant when the Korean party requires specialization or financial capital from the non-Korean side for industry success. It's crucial to acknowledge that industry-specific regulations may lead to significant financial losses, and reliance on government connections doesn't guarantee favorable outcomes. 3. Financial Constraints and Innovation: When the non-Korean party lacks funds to commercialize an innovation, and the Korean side has a new product line or manufacturing capabilities, a joint venture can facilitate collaboration. However, careful consideration is necessary, as the learning curve and collaboration requirements may be time-limited. 4. Dominance in Niche Industries: In industries with few players but high activity levels, joint ventures offer advantages like instant access to key stakeholders for the non-Korean party and access to technology for the Korean side. Often observed in joint ventures between Korean corporations (chaebols) and multinational firms, these collaborations are temporary and involve extended negotiation periods. Critical Considerations for Effective Business Ventures Several significant scenarios significantly impact joint ventures, underlining the importance of well-crafted shareholder agreements and association instruments: 1. Legal Disputes among Shareholders: Effective joint venture planning is crucial when a client, holding a small share in a company reliant on foreign investment in Korea, becomes embroiled in legal disputes with other shareholders over majority and fellow stockholders' issues. 2. Misuse of Company Profits: Situations where the majority shareholder, controlling the representative director, excessively uses company profits for personal expenses and conducts business between the company and private ventures pose challenges to equitable distributions. Meticulously crafted shareholder agreements can mitigate such risks. 3. Challenges in Finalizing Joint Ventures: Many cases witness challenges in finalizing joint ventures due to poorly designed shareholder agreements and association instruments. A well-structured shareholding approach is vital to prevent such complications. 4. Importance of Legal Counsel: Engaging a qualified attorney to draft a Korean shareholder agreement and association instruments is prudent, particularly for individuals with affluent lifestyles. Ensuring the attorney possesses expertise and tailors the approach is crucial to avoid generic agreements that may lead to conflicts. 5. Avoiding Generic Agreements: It's imperative to avoid attorneys who offer generic form agreements at low costs. Each joint venture agreement in Korea is unique, and generic forms may indicate a lack of diligence, potentially leading to conflicts. Investing in a well-crafted and tailored approach is essential for effective joint ventures. Essential Aspects in Business Ventures1. Focus, prudence, and thorough investigation;2. Restricting the authority of the representative director;3. Retaining the right to hire and dismiss the representative director;4. Safeguarding control over the company seal;5. Upholding majority control or including minority protection clauses; and6. Appointing an Independent Accountant and utilizing an impartial statutory auditor. Conclusion To conclude, the success of business endeavors in Korea, particularly through joint ventures, relies on thorough planning, understanding partner dynamics, and tailoring agreements to specific circumstances. The comprehensive considerations outlined for company formation highlight the intricate nature of the Korean business environment and the necessity for a strategic approach. The success scenarios presented illuminate specific contexts where joint ventures offer advantages, underscoring the nuanced dynamics of international collaborations. Pearson & Partners, a consulting firm specializing in facilitating expansion into Korea, is poised to assist in this intricate process. With expertise in incorporation and tax accounting services, Pearson & Partners ensures a seamless and comprehensive entry into the Korean market. Their dedication to excellence aligns with the nuanced requirements discussed, offering invaluable support for businesses navigating the complexities of joint ventures and company formation. Get in touch with us to embark on a successful journey in establishing and expanding your presence in Korea.

read more

Expanding into the Korean market through sales on the Coupang Marketplace.

If you aim to engage in commerce with consumer goods in South Korea, understanding how to collaborate with Coupang is crucial. Additionally, it would help if you decided whether to operate domestically or internationally. If you lack a local partner in Korea, utilizing Coupang Global Marketplace presents an attractive opportunity for accessing the Korean food, beverage, and fashion market.   About Korea Coupang   Coupang is a South Korean e-commerce company that was founded in 2010 by Bom Kim, a Harvard Business School dropout. The company's name is derived from the Korean word "쿠팡," which means "rocket." Coupang started as a daily deals platform, similar to Amazon, offering discounted products and services to customers in South Korea. However, it quickly evolved into a full-fledged e-commerce marketplace, offering a wide range of products including electronics, fashion, beauty, groceries, and more. One of Coupang's key innovations is its logistics infrastructure, particularly its own delivery network known as "Coupang Logistics." This infrastructure includes automated warehouses, fulfillment centers, and a large fleet of delivery vehicles. Coupang's focus on improving delivery speed and reliability has been a significant factor in its success, allowing it to offer same-day and next-day delivery services to customers across South Korea. Over the years, Coupang has attracted significant investment from various sources, including SoftBank, Sequoia Capital, and BlackRock, among others. The company has used this funding to fuel its expansion and innovation efforts. In 2014, Coupang launched its "Rocket Wow" service, which offers guaranteed delivery within 24 hours for select items in certain areas. This service further solidified Coupang's reputation for fast and reliable delivery. In 2018, Coupang expanded its reach beyond South Korea by launching Coupang Global, an international shipping service that allows customers in other countries to purchase products from the Coupang platform. In 2021, Coupang made headlines with its highly anticipated initial public offering (IPO) on the New York Stock Exchange (NYSE), raising over $4 billion and becoming one of the largest IPOs by an Asian company in the United States. As of my last update in January 2022, Coupang continues to be a dominant force in the South Korean e-commerce market, known for its innovative technology, extensive product selection, and efficient logistics operations.   Coupang's Distinctive Edge: Revolutionizing Logistics and Customer Experience Coupang stands out among other platforms primarily due to its exceptional logistics services and unwavering dedication to enhancing the customer experience. The founder's vision was to tackle issues such as lengthy delivery times, costly shipping with restrictions on products and cutoff times, and excessive packaging waste alongside unrestricted returns. The solution emerged as an end-to-end integrated system utilizing state-of-the-art technology to impress both customers and vendors alike. Employing a data-driven approach, Coupang ensures that customer and vendor satisfaction is consistently monitored and enhanced throughout every stage of the process, resulting in significantly improved tracking efficiency. In essence, consumers are provided with a premium purchasing experience at a reasonable cost.   Rocket Wow Rocket Wow is a subscription-based service akin to Amazon Prime, priced at approximately €2 monthly. It encompasses complimentary deliveries and returns, exclusive discounts on select items, standard one-day delivery, and the added perk of receiving Rocket Fresh products (such as food and beverages) by 7 am for orders placed before midnight.   Elevating Customer Experience: The Impact of Coupang's Obsession with Service Coupang's relentless dedication to enhancing the customer experience is evident through the remarkable impact on spending observed among Rocket program members. This underscores the effectiveness of prioritizing loyal customers. Korean clientele particularly appreciates the convenience and swift delivery, even on weekends and holidays. Moreover, features like Coupang Pay and the extensive use of reusable packaging, accounting for 75% of materials, contribute to the overall appeal of shopping on the platform.   Food Selections Coupang boasts an extensive array of fresh produce and international cuisine sourced globally. Additionally, Coupang Eats offers convenient delivery options from a variety of restaurants. Amid the pandemic, the platform introduced live-streamed content covering cooking tutorials and entertainment, coupled with product sales.   Coupang's Global Marketplace Coupang's Global Marketplace was established to meet the increasing need for premium imported goods, providing numerous benefits for both buyers and sellers. While cross-border selling can be lucrative for international brands and serve as a valuable market testing avenue, certain product categories are restricted. In the realm of "food and beverage," prohibited items include refrigerated or frozen products, alcohol, cigarettes, and medicine.   Becoming a Vendor on the Global Marketplace We can assist you in registering as a global seller on Coupang through Pearson Partners Korea. Feel free to reach out to us for inquiries.   Documentation A copy of your business license proof of your ID the proof of who owns your business Provide the contact person's name and phone number for verification A bank letter or statement showing your account in the same name as your business license   Do you want to be a successful seller on Korea Coupang?Please refer to this article “How to Become a Successful Seller on Coupang."   About the fees & payments?When it comes to selling on the Global Marketplace, the costs are quite economical compared to other Asian marketplaces like Alibaba’s T-mall, jd.com, or Shopee. The commission rates vary by category, typically falling between 4% to 11%. Additionally, there are no additional fees involved. Vendors receive their earnings from deliveries monthly and have the option to receive payments in major currencies such as GBP, EUR, or USD. Conclusion Entering the Korean market through sales on the Coupang Marketplace presents a lucrative opportunity for global sellers. With its innovative logistics infrastructure, extensive product selection, and commitment to customer satisfaction, Coupang continues to dominate the South Korean e-commerce landscape. Our consulting company, Pearson Partners Korea, is here to facilitate your registration as a global seller on Coupang and guide you through the process. As you consider this endeavor, it's important to understand the fees and payment structure, which are notably competitive and transparent. By leveraging our expertise and the resources provided in this article, you can position yourself for success in the thriving Korean e-commerce market.

read more
Explore All Insights

Thank you for your interest in Pearson.

TYPE
Incorporation Visa Taxation & Accounting Recruitment Finding Partners Living in Korea Others