A Guide to Importing and Exporting to and From South Korea

South Korea has a straightforward process when itAn import license is mandatory in South Korea, and
comes to importing goods into the country. The startcan be obtained from the Ministry of Trade and
of the process is the conclusion of a contract, andIndustry. It is also possible to appoint the president
the culmination is the import payments. The importof a foreign bank as a delegate, who can issue
payments encompass a large number of activities,import licenses. This is applicable except in the case
including the conclusion of import contracts,of counter-trade.
establishing import permission, clearance of customsSouth Korean foreign trade is subject to a great deal
regulations, and actual payment. There are otherof legislation. One of these is the External Trade Act,
steps that are usually optional, on which the naturewhich specifies the procedure for the export and
of the actual goods and the kind of transaction thatimport of goods. There is also the Foreign Exchange
was carried out has a direct consequence.Management Act which related to foreign exchange
Imported goods must enter through one of thematters, including matters such as the settlement of
established channels: the ports of entry. The dutiesexport or import payments. And lastly there is the
that are then calculated by the customs officials needCustoms act, which deals mainly with customs
to be disbursed, and the delivery is then carried out.clearance, among other things.
There are occasions when the item that needs to beThe External Trade Act has been applied from July 1,
imported is deemed to be an import restricted item,1987, and has precedence over three other laws:
at this time the import authorization is strictly- The Export Union Act of 1961, the Trade
required. As per the Mitt's Export and Import Notice,Transaction Act of 1967, and the Plant Export
the restricted item must have an importPromotion Act of 1978.
recommendation, which can be obtained from a- The Foreign Exchange Control Act (FECA) is set of
competent authority or association. The organizationregulations for foreign exchange transactions.
must be in accordance with the regulations of importIt also covers the exchange rate system, among
announcements and must conform to the specialother things, like transactions of foreign exchange,
notice outlined by the Ministry of Trade and Industry.concentration of foreign exchange, payment and
However, freely importable items do not need anyreceipt of foreign exchange.
recommendation.