Korea’s average tariff is 7.9 percent, although the rate for some agricultural products remains high.
South Korea’s standards for sampling, inspection and certification are often different to international norms and said to have a negative impact on imports.
Labelling requirements and standards differ according to the product. All imported food products have to have Korean language labels. Stickers may be used but should not be easily removable and not cover original labels.
Tax
A value added tax (VAT) is charged on imports at 10 percent of the dutiable value – cost, insurance and freight plus all other duties and taxes. Major exclusions from VAT are processed foods and books.
Logistics
Korean Air flies everyday except Wednesday from Auckland to Inchon and everyday from Inchon to Auckland.
Sea freight services between New Zealand and Korea are provided by COSCO, Maersk-Sealand, MISC, MOL, MSC, NYK, PIL, P&O Nedlloyd and Tasman. The journey takes 20-30 days depending on the route.
Opportunities
- Korea relies heavily on imported seafood. Currently, the key words for Korean consumers are well-being, health, organics and safety. This has seen a big flow on effect in seafood consumption with Korean consumers opting for seafood over red meat.
- Wine consumption is growing rapidly. New Zealand is not a recognised exporter of wine in Korea, but industry contacts believe this will gradually change as more New Zealand wines enter the market, along with an appropriate marketing campaign.
- Korea is New Zealand’s largest export market for deer velvet. There are also good opportunities for other products in the nutraceutical, health food and supplement markets. The main drivers are an ageing population, health and welfare issues and cultural factors such as use of oriental medicines.
- In information and communications technology, opportunities exist for New Zealand companies in digital content, health information technology, convergence services and telematics, including transport and logistics.
Challenges
- Exporters can expect considerable communication over each issue or transaction. Success requires considerable persistence and determination, balanced by patience and tact.
Cultural and business tips
- New Zealanders travelling to South Korea do not require a visa for visits of up to 90 days. Visas are required if you intend to work or engage in commercial activities.
- A key element to business success in Korea is building personal relationships.
- A reference list of successful sales to buyers in South Korea and other markets (especially Japan or the United States) is a useful marketing tool.
- Business cards are essential. Have your card ready when you meet people.
