How to Successfully Import Goods into Korea without Establishing a Legal Entity: A Guide for US and Global Brands

how to import goods into south korea without selling up a legal entity

Looking to sell your products in South Korea but don’t want to register a local company? You’re not alone. Many global brands and sellers are eager to tap into Korea’s booming e-commerce market—especially Coupang, the "Amazon of Korea"—without the cost, delay, and complexity of setting up a Korean legal entity.

Luckily, it’s possible to import goods into South Korea without establishing a company, thanks to a business model built around Importer of Record (IOR) and Seller of Record (SOR) services. In this post, we’ll explain exactly how it works, who it’s for, and how to get started.

🔍 Why Sell in South Korea?

South Korea ranks among the top 5 global e-commerce markets, with a digitally savvy population and fast-growing cross-border demand. Platforms like Coupang, Gmarket, and 11st offer powerful logistics and massive reach.

✅ Coupang alone handles over $30B in GMV✅ Known for its “Rocket Delivery” (next-day fulfillment)✅ Korean consumers actively seek quality products from the US, EU, and Japan

⚙️ Can You Import Without a Korean Business Entity? Yes. Here's How.

If you’re a foreign seller, you typically have two options for entering the Korean market:

Option 1: Set up a local Korean company

Requires business registration, office address, Korean tax ID
Takes weeks or months to complete
Ongoing compliance required

Option 2: Use an Importer of Record (IOR) and Seller of Record (SOR) ✅ RECOMMENDED

This allows you to legally import and sell products without setting up a Korean business.

Let’s break that down:

🧾 What Is an Importer of Record (IOR)?

An IOR is a Korean-based company (like Kontactic) that serves as the official consignee/importer on your behalf. They:

Submit all customs documentation
Pay import duties and VAT
Ensure products meet Korean regulations
Take legal responsibility for the shipment

🔑 You remain the seller and product owner—the IOR just acts as the official local importer for compliance.

🧾 What Is a Seller of Record (SOR)?

The SOR is the legally responsible entity for post-sale matters such as:

Providing a Korean customer service phone number
Acting as the 판매책임자 (Product Representative) per Korean regulations
Handling product returns, refunds, or consumer inquiries

Without an SOR, your product cannot be legally sold on most Korean e-commerce platforms.

📦 How the IOR + SOR Process Works

Here’s a simplified step-by-step view of how you can import and sell in Korea—without a Korean entity:

1. Partner with a Turnkey G2K Agency

Find a service provider like Kontactic, which offers end-to-end G2K (Global to Korea) support.

2. IOR Registers as the Importer

Kontactic will register your shipment under its name and submit it to Korean customs.

3. Product Clears Customs

Duties and VAT are paid (you'll be invoiced or prepay)
Certifications (like KC or KFDA) are managed if needed

4. Inventory Is Sent to Coupang Fulfillment (Rocket Growth)

We handle labeling, warehousing, and local fulfillment—matching Amazon’s FBA-style model.

5. SOR Handles Post-Sale Support

Kontactic provides local contact info, returns processing, and regulatory representation.

6. Sales Proceeds Are Sent to You

You’ll get paid directly from Coupang in Korean Won (KRW), with options to convert to your preferred currency (We will help you set up a virtual Korean Bank account so that you can receive payment and easily convert it to your local currency (e.g. USD) We will create a separate blogpost for that topic).

📈 Who Is This Ideal For?

Amazon or Shopify sellers expanding into Asia
Made-in-USA brands seeking new markets
Companies that want to test Korea without major commitment
Businesses selling cosmetics, electronics, supplements, pet products, or lifestyle goods

💰 How Much Does It Cost?

At Kontactic, our pricing model is simple and transparent:

IOR Services: FREE
SOR Services: FREE
Optional Services: Marketing, Certification, Fulfillment Support (quoted separately)

We serve our clients for free so that we can offer optional services like marketing so that we can help boost sales. You only pay for what you need. No hidden fees. No long-term contracts.

❗ What About Taxes and Regulations?

All import duties and 10% VAT must be paid at customs. As the IOR, we’ll handle payment and documentation. If your product requires Korean certification (e.g., KC mark for electronics, KFDA for food/supplements), we’ll coordinate with local agencies (must be done before shipping to Korea).

🚀 Ready to Sell in Korea—Without a Local Entity?

At Kontactic, we specialize in helping international brands enter Korea with zero local infrastructure. You focus on your product—we handle everything else.

👉 Contact us today or visit www.kontactic.com to get started.

📌 Summary: Importing to Korea Without a Business Entity

Step	Action
✅ 1	Partner with an IOR + SOR like Kontactic
✅ 2	Register shipment under IOR’s name
✅ 3	Clear customs and pay taxes
✅ 4	Send inventory to Coupang warehouse
✅ 5	Start selling and receive payouts

Tags: Importer of Record Korea, Seller of Record South Korea, How to Sell on Coupang, Korea eCommerce Import, G2K Services, Import Without Korean Entity, Kontactic, Korea Fulfillment, Korean VAT for Foreign Sellers