Find clients and sell your products in South Korea

Finding clients abroad is always a challenge, and business development in South Korea is not different. You need the right contacts and once you reach the decision maker, you need the right sales pitch.

A lot of companies that want to enter the market in South Korea do this with their general sales pitch. However, if you don't know the local regulations, pricing levels and your competition's product, sales meetings may be difficult to conclude successfully.

How to sell your product or service in South Korea?

South Korea has a population of about 52 million as of 2023. Known for its economic miracle, technological advancements, and vibrant culture, South Korea is a significant global player.

With a GDP per capita of approximately $31,000 USD in 2023, South Korea’s economy is heavily driven by exports. Major industries include electronics (like smartphones and TVs), automobiles, shipbuilding, and steel. The country is also a leader in technological innovation and digitalization.

South Korean Business etiquette

South Koreans are serious businessmen and tough negotiators. Koreans are familiar with English and if well educated, are functionally fluent in the language. However as English is not their native language, do not assume that their appearance of agreement is an indication of understanding. Koreans prefer that a familiar face make the introductions to a new business associate. They are extremely patriotic. Thus any awareness shown by foreigners of Korean culture, is rated highly.

South Koreans play with their cards close to their chest so be prepared for anything! They will always believe that they are negotiating from a position of strength (Customer is King) and try and get the maximum from the deal whilst giving away the minimum.

Confusianism and Kibun in Korean business culture?

If you wish to get familiar with the Korean culture, it’s important to know the tenets on which it’s built. Confucianism stands for virtues like honour, sincerity, duty, respect, filial piety, honour and of course, loyalty. Theoretically, Koreans believe they maintain these values even in the workplace.

Kibun, on the other hand, encapsulates another important trait of Korean culture. It means saving face, reputation, or someone’s feelings. Kibun implies refraining from open insults. But Westerners need to understand that Kibun is often a one way street. As a supplier to a Korean customer, you can lose face, repeatedly, as long as the customer saves his!

South Korea negotiation tactics

The bigger the group that you meet, the more important is your product. Remember that South Koreans will negotiate hard and wear you down, with the expectation that the weak or impatient foreigner will compromise on something to quickly close the deal. So, be prepared and follow these tactics:

Schedule your meeting a few weeks in advance. It should ideally be held between 10 and 12 am or 2 to 4 pm.
Be on time, inform if you’re late and be patient
Be prepared with a gift on the first meeting, but refrain from openly displaying it. Accept and present gifts with both hands.
Send in your company information prior to the meeting so that they have time to review it internally within their team
State your side of the deal slowly and clearly
Reiterate important points
Be diplomatic, don’t put yourself or anyone else down (kibun)
To other Asians, Koreans don’t say ‘no’ directly so pay attention to body language. Koreans believe too much in the Hollywood image of Westerners, and so will say ‘no’ to them.

Convince foreign distributors with numbers, not with stories

Alfred Griffioen, founder of Exporteers

In the past 15 years me and my colleagues have approached hundreds of agents, distributors, importers and retailers worldwide for brand owners aiming to sell their products abroad. In 2012 a call was enough to get a meeting. Today, you first have to send your pitch — and then hope that someone will answer.

The distributors needed to reach your clients already work with your competitors. They have invested in marketing, stock and sales, and they are making money. Asking them to switch to you means asking them to start all over again.

My experience is that if you only send a website or product catalogue, answers are rare. Numbers make the difference. Show expected volumes, margins, sales effort and investment. Show that there is a business case for them, not just for you.

Translate your website and check your SEO

Even if your business is really international, it may be wise to set up local website translations and check whether your text aligns with the culture.

This also counts for South Korea and its inhabitants. People prefer reading in their own language and also search most of the time in their own language. Therefore you need to include the relevant keywords in your texts, and these may not be a direct translation.

With regards to content, my personal experience is that if you have a successful blog topic in one language, it is likely to do well also in other languages. Don’t reinvent the wheel, just make a proper translation.

Shipping your products

If you sell physical products, you need them to get delivered into South Korea. Depending on the country you are in, this may be a challenge.

First of all you may have to pay import duties or settle VAT. This can be complex if you don’t have your own legal entity in the country.

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.

VAlidate the HS-codes you use for shipping

Almost every country or trade block in the world has its own detailing on the international HS-code list. With our report you strongly reduce the risk on misclassifications, delays and higher custom duties than expected.

Tell us what you want to ship and where to and we ask you all relevant questions to get to the most likely code.

Frequently asked questions

How to do business development in South Korea?

First determine who can be the end-users for your product or service. From who do they purchase now? Interview a number of key players in the value chain how they perceive your offering and ask them who is your competition. Only then you can position your product or service and effectively approach potential buyers.

Is it difficult to find B2B clients in South Korea?

In South Korea, just as many comparable countries, this all depends on your offering and the way you organise your sales. If you offering already sells in other countries, you have good chances, but you still need to figure out the market structure and the sales channels that perform best. We always recommend to do interviews with key players first.

Is South Korea open for international business?

Yes, South Korea is certainly open for international business, the country has trade relationships with many other nations and although there may be import duties, certification and other customs regulations, you can certainly sell your goods there.

How to do sales in South Korea?

First of all adhere to the local business culture and follow local ways of making appointments and structuring them. Also in South Korea, companies want to make profits so if you can show how your product or service contributes to that, then the interest will be not different than in other countries. Where possible, work with local partners or have your sales supported by an international business consultant.

Can you find B2B clients for me in South Korea?

Yes, we can certainly do that, because we have experienced business developers in the country. Of course it is important that your product is good, well documented and you have discovered the best sales processes already in your home country.