Korea

Country starter pack
Sales & marketing in Korea
39
Once you have chosen the type of business structure
you are going to establish in Korea and have a better
understanding of setting up there, the next step is how
do you get your product or services into the Korean
market? Online or through an agent? Do you set up a
franchise? What are the labelling requirements? This
chapter examines the various methods of selling in Korea,
including marketing and packaging requirements to
import and sell goods.
3.1 DIRECT SELLING
Direct selling can be very effective in Korea with the
market worth over KRW 7 trillion in 2014. Koreans love
convenience, and many are time-poor. In terms of doorto-door
sales, major products sold in Korea included
home education materials, books, household consumer
goods, cosmetics, health food, and sporting goods.
By utilising direct contact with buyers and end users,
direct selling can be a very cost effective alternative to
having your own base in the market, or using agents and
distributors. But the do-it-yourself option is not an easy
route to market. The main positives of doing it yourself
include:
• Cutting out the middlemen
• Gaining an understanding of the technical needs of
buyers and end users, and an ability to customise
accordingly
• Having an opportunity to learn the hard way, although
this should always be combined with extensive
preparation.
On the negative side, having no physical presence in
the market can make it difficult to progress. Many
Koreans will not do business with companies that have
no representation in the country. Recent trends in the
industry have also encompassed challenges such as an
increase on mobile internet/e-commerce retail sales,
a consumer shift towards preferring mass retailers as
a result of the tighter economic climate, and changing
government regulations. If this is an avenue you would
like to consider then it is suggested to seek professional in
market advice on how to go about doing so and the latest
regulations.