International E-Commerce Shipping Guide from Singapore to South Korea

Welcome to our comprehensive guide on expanding your cross-border e-commerce business into South Korea!

We will delve into essential topics for success in the South Korean market. Join us on this insightful journey as we equip you with the knowledge and tools necessary to thrive in this dynamic and lucrative environment.

Max weight: 20kg

Tracking: End-to-end

Delivery aim: 1-3 business days*
*In-country delivery for major metro areas

South Korea is a prime destination for Singaporean companies seeking to expand their e-commerce footprint. With a highly developed digital infrastructure, a tech-savvy population, and a strong appetite for online shopping, South Korea boasts a thriving e-commerce market. The country's high internet and smartphone penetration rates and sophisticated logistics network facilitate seamless online transactions and fast delivery times.

Singapore and South Korea share a strong economic partnership, with South Korea being Singapore’s eighth-largest trading partner. This strong relationship is further solidified by the South Korea-Singapore Digital Partnership Agreement (KSDPA), signed in November 2022, which sets rules and standards for digital trade and partnership between the two countries. This agreement provides a clear pathway for Singaporean companies to navigate the South Korean market and unlock their e-commerce potential.

As one of the world's largest economies, South Korea presents strong business opportunities. With a high internet penetration rate of 97.2%, it's no surprise that e-commerce thrives in South Korea. Online shopping is particularly popular among South Koreans under 40, with over 98% of those aged 20-39 shopping online.

South Korea's Mobile Shopping Surge

South Korea, home to Samsung and a highly tech-savvy population, exhibits significant mobile phone usage.

Statista reports that approximately 37% of mobile shoppers have between four and six shopping apps installed on their smartphones. This trend underscores the prominence of mobile commerce in the South Korean market.

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Mobile Payments on the Rise

The growth of online shopping in South Korea has fuelled the adoption of electronic payment services across both PC and mobile devices.

Mobile payment and digital wallet services, such as Samsung Pay and Naver Pay, are gaining traction, accounting for 32.9% of transactions in 2023. Meanwhile, payment cards (credit cards) continue to dominate the e-commerce landscape, holding a 54.3% market share in 2023.

stylish-asian-girl-sitting-cafe-near-window-paying-online-shopping-with-.._cropped

Global Shopping Amid Economic Challenges

South Korean consumers have increasingly diversified their purchasing habits, seeking a wider range of products from international sources.

In response to inflation and sustained economic challenges, cross-border e-commerce is gaining popularity as South Korean consumers discover lower prices on overseas e-commerce platforms, despite shipping fees and import duties. Cross-border e-commerce reached $4.7 billion in 2022, demonstrating the growing appetite for global products among South Korean consumers.

shifting consumer behaviour_shopping online_edited

Top E-Commerce Categories Segmentation by Popularity

According to Statista’s report as of June 2024, the most popular online shopping categories in South Korea are:

Popular Online Shopping Platforms in South Korea

In South Korea, the most popular online shopping platform is online marketplaces. According to Similarweb, based on website traffic, the number one platform in South Korea is Coupang.com, often referred to as South Korea’s version of Amazon, followed by Naver, SSG.com, Gmarket, and 11^th Street.

As for overseas online marketplaces, Amazon.com and eBay are the most popular sites visited by South Korean consumers according to ITA.

Important Sales Season in South Korea

There are a few major buying holidays in South Korea, but the South Korean consumer also follows foreign countries’ buying holidays as they often purchase from overseas online marketplaces.

Seollal – South Korean Lunar New Year’s Day, it varies every year but usually it is towards the end of January or the beginning of February of the Western calendar
Children’s Day – May 5^th
Parent’s Day – May 8^th
Chu-Seok – Mid-Autumn Festival, occurs on the 15^th day of the 8^th lunar month
Christmas period – December

Foreign countries’ buying holidays include:

China’s Singles’ Day – November 11^th
Black Friday in the U.S. – the fourth Thursday in November after Thanksgiving

South Korean consumers also purchase various items depending on the season; hence, you need to be aware of when certain products are trending to optimize your inventory and marketing strategies effectively.

Customs Regulations Overview in South Korea

South Korea has a minimum value threshold (de minimis) of USD150, which means that any imported goods valued below this threshold can enjoy duty exemption. A Value Added Tax (VAT) is applied to all imported goods based on customs value plus duties. There is also an excise duty (10% to 20%) imposed on certain luxury items and durable goods.

The customs duties and tariff classification depend on the nature of goods during import declaration. You can read more about the import declaration guidelines at the South Korea Customs Service website.

Source: International Trade Administration | Zonos | South Korea Customs Service

Required Customs Documents

Below is a list of documents you need to prepare in advance in order to export your goods into South Korea and clear customs smoothly.

1. Commercial Invoice

This document establishes the value of goods for customs duty calculation. Provide an original invoice and two copies, including the total value, unit value, quantity, marks, product description, and shipping information (origin and destination).

2. Certificate of Origin

This document verifies the country of origin for the goods, which impacts applicable taxes and duties.

3. Packing List

Prepare two copies of the packing list, detailing the contents of each package.

4. Certificate of Origin

Depending on the mode of transport (ocean or air), provide a Bill of Lading or Airway Bill, respectively. Include the following information:

Shipper name
Consignee name and address
Name of port destination
Cargo description
Price list of freight and insurance charges (CIF)
Attestation or confirmation from the shipper acknowledging that the goods loaded onto the transport vehicle is adequate for the purpose at hand

5. Maritime Insurance

Agree to by parties involved in transaction. If the exporter is responsible for the insurance, a marine insurance or insurance certificate is required.

6. Import Declaration

This document is typically prepared by the importer in South Korean. While it can be filed at the Customs House before goods are unloaded into bonded areas, pre-filing before arrival can expedite the process. Find out more at the South Korea Customs Service website about the Import Declaration Guideline.

Source: ITA

KC Verification

Products falling under the following categories require KC certification for import into South Korea:

Electronic products
Household products
Products for children and infants

KC Certification is a product certification that proves the compliance of products with the South Korean safety regulations. Failure to obtain KC certification for applicable products may result in financial penalties, product recalls, or even sales bans for the manufacturer, importer, and/or seller.

You are not allowed to bring any weapons into South Korea, including any replicas and decoration items such as guns, swords, gunpowder, toxins, etc.

South Korea has zero-tolerance policy towards illegal drugs such as opium, marijuana/cannabis, cocaine, etc.

In compliance with the Convention on International Trade in Endangered Species (CITES), it is illegal to import any wildlife products made from endangered animals. This includes ivory, leather, fur, and taxidermy.

Items such as gold rings and necklaces that are for personal daily use is not included.

Meat and Poultry – imports of beef, pork, lamb, chicken, or other meat and poultry items is not allowed into South Korea as it may carry diseases and pose a risk to public health.
Processed Meat Products – Ham, sausage, bacon, beef jerky, marinated beef, canned meats, and other processed meat products are also subject to import restrictions.
Egg Products – Whole eggs, egg whites, powdered eggs, and other egg products must be declared and may be subject to inspection.
Dairy Products – Milk, cheese, butter, and other dairy products are subject to import restrictions to prevent the spread of diseases.
Plant Items – Fruits, vegetables, nuts, and medicinal herbs are subject to inspection and may require import permits or phytosanitary certificates.
Animal Products – Importation of animal products, including meat, skin, fur, and other animal-derived materials, is restricted to prevent the spread of diseases.

Prohibited Items List

The following item categories are prohibited from import to South Korea.

Illegal Publications – including books, photos, films, or any other media that is related to pornography, violate constitutional orders, public order, or customs in South Korea
Confidential Information – Items or documents containing confidential information related to government or intelligence activities
Counterfeit Currency – Counterfeit, forged, or fake money, including banknotes and bonds

Source: ITA | South Korea Customs Service

Shipping Process from Singapore to South Korea

Understanding the shipping process from Singapore to South Korea is crucial as it ensure efficient and cost-effective shipping. Below is a quick illustration of how Asendia ships your products from Singapore to South Korea.

Here's how our shipping process typically works once you are onboarded with us:

Print the shipping label and obtain the manifest from Asendia's system
Parcel is processed for export
Export clearance to South Korea destination
Customs clearance
Last-mile delivery to shopper

Introduction to e-PAQ Select International Shipping Solution

At Asendia, we have a specialist range of international packet and parcel services called e-PAQ Select designed for online retailers like yourself.

Why e-PAQ Select is the best solution for your international shipping needs to South Korea:

Delivery service is available on Monday to Friday.
Delivery Duty Unpaid (DDU) available.
Parcel tracking available for visibility (end-to-end from facility to delivery).
Full territory coverage including military bases via Seoul (Incheon) as injection point.
Re-delivery attempts available (first attempt and 1 re-delivery attempt).
Major metro areas delivery SLA: 2-3 business days*
Dimweight limit:
- Up to 20kg
- L x 2W x 2H <3m
- length: no single side <1.5m
Standard liabilities of up to SGD100 per package or the declared value of package, whichever is lower.