UK ⇆ South Korea Shipping Rates 2024

UK ⇆ South Korea
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DFS Worldwide is a specialised shipping company renowned for its exceptional services to Far East destinations, including South Korea. With a commitment to providing reliable and efficient logistics solutions, we offer competitive rates that cater to businesses of all sizes looking to expand their reach into these vital markets.

Sea Freight | South Korea

FCL rates

South Korea	20ft container	40ft container
Incheon	£880	£1100
Busan	£395	£495

LCL rates - Less than Container Load

LCL shipping from our London office in Feltham TW14 post code

Total Volume *	Incheon port
1 CBM	£165
5 CBM	£438
10 CBM	£695

LCL - KOREA TO UK

South Korea, the world’s 13th largest economy, is experiencing a surge in import demand, signalling increased opportunities for premium British goods and services. At DFS our sales team have extensive knowledge and experience dealing with imports from South Koreas biggest seaport of Busan and are on hand to help our customers meet their logistics requirements seamlessly and with ease.

Welcome to our LCL services
At DFS Worldwide, we understand that not all shipments require a full container. That's why we offer comprehensive Less than Container Load (LCL) services to accommodate your smaller shipments with the same level of care and efficiency as our full container services.

What is LCL Shipping?
LCL shipping is a cost-effective solution for businesses or individuals who don't have enough cargo to fill an entire container. With LCL, your goods share container space with other shipments headed to the same destination. This allows you to pay only for the space you need, making it an ideal option for smaller shipments.

Why Choose Our LCL Services?
1. We can offer door-to-door services from Korea to the UK using a range of reliable carriers.
2. All-in port-to-door rates can be obtained directly from the website for standard cargo meaning you have access to instant rates, alternatively you can speak to the sales team for the same competitive rates or anything outside of ‘standard’ cargo.
3. We offer regular, frequent sailings to Southampton ensuring your cargo is on a quick and efficient service. 
4. We can arrange customs clearance on your behalf at the major seaports in the UK.

For Customers
Are you a small business owner looking to ship goods internationally? Or an individual relocating to a new country? Our LCL services are tailored to meet your unique shipping needs. With flexible scheduling options and personalized support, we make the shipping process hassle-free, allowing you to focus on what matters most – your business or your move.

For Freight Forwarding Partners
Looking for a reliable partner to handle your LCL shipments? Partner with us and gain access to our extensive network, cutting-edge technology, and dedicated support team. Whether you need assistance with consolidation, documentation, or transportation, we have the expertise and resources to streamline your LCL operations and help you deliver exceptional service to your clients.

Contact Us Today
Ready to experience the benefits of our LCL services? Get in touch with us today to learn more about our rates and how we can customize a shipping solution to meet your needs. Whether you're shipping a small package or a large cargo, we're here to help you navigate the complexities of international logistics with ease.
For any areas not shown below, please contact us and our sales team will be more than happy to help.

Busan LCL rate:

POL	OCF, THC, Docs, Delivery	RATIO	MIN	TT
Busan	GBP 167	W/M	2 CBM	50

• POD Southampton
  
• Cost includes: OCF, THC, Docs and Delivery
  
• Port to door service

Rates terms:

• Based on 1 Cbm not exceeding 250 Kgs in weight.
• Subject to the final weight/dimensions and are based on commercial collection and delivery address with access/parking for an artic vehicle. Any special requirements such as tail lift, timed delivery etc will result in additional charges.
• Non palletised cargo will incur a fee of £15 per pallet.
• Based on general non haz, stackable cargo, unless stated otherwise and can only be used for standard pallet sizes.
• The exchange rate used is based on the current month and is subject to fluctuate.
• Subject to space, equipment, sailing and vessel availability.
• Subject to PSS and Emergency Contingency surcharges.
• Port to door inclusive of OCF, THC, Docs and Delivery to England.
• Excluding: Any charges at origin, imports customs clearance, imports duties & taxes, any storage/detention.

Air Freight

• Delivery of cargo can vary from 3 - 7 working days form door to airport
• London Heathrow Airport to:
  Incheon (ICN), Busan (PUS) & Cheju (CJU)

Destination	50 kg	200 kg	500 kg
Seoul (ICN)	£149	£320	£765
Busan (PUS)	£172	£322	£717

* Documentation surcharge applies to any shipping to South Korea.
* For an accurate price, please use our online quotation form above and provide detailed information about your shipment requirement to South Korea.

Exporting to South Korea

Doing business in South Korea: South Korea trade and export guide

1. South Korea export overview

In 2014 South Korea was the world’s 13th largest economy by Gross Domestic Product (GDP) Purchasing Power Parity (PPP) according to the International Monetary Fund(IMF). It has a GDP per capita (PPP) of USD 35,277 – 3 times that of China and almost equal to South Korea’s.

There are over 150 British companies currently doing business in South Korea. Well known brands such as Standard Chartered, Jaguar Land Rover, BA, Bentley and Burberry currently have an active presence in the South Korean market.

Benefits for UK companies exporting to South Korea include:

• the European Union (EU)-Korea Free Trade Agreement (FTA), the only EUFTA in east Asia/Pacific, is estimated to be worth over £500 million to UK business each year
• South Korea is a designated high growth market for UK exports, increasing year on year since 2009
• Korean public has a taste for British culture and respect for UK goods
• President Park’s ‘creative economy’ policy is pushing Korean businesses towards sectors and industries of traditional UK strength
• close proximity to the wider Asia-Pacific region and markets

Strengths of the Korean economy include:

• world leader in electronics, shipbuilding, steel and automotive
• ranked first in Bloomberg’s Global Innovation Index 2015
• 74% of South Koreans undertake postgraduate-level education, with 7% of Gross Domestic Product (GDP) spent on education
• highest level of broadband penetration in the world, with speeds of 100 megabytes
• leads the world in 4G mobile usage, with plans to invest USD1.7 billion in 5G
• 15 Free Trade Agreements (FTA) currently in place and 11 more under negotiation

2. Challenges for UK companies doing business in South Korea

Entering the South Korean market is relatively easy since the signing of the EU-Korea Free Trade Agreement in July 2011.

A ‘direct transport rule’ is in place for shipments to Korea. UK companies are not fully benefitting from the tariff liberalisation schedule, as most UK shipments tend to go via Singapore or Hong Kong. Department for International Trade (DIT) South Korea are pushing for this rule to be amended.

Sector specific challenges in the market include:

• certification processes for labelling foods as ‘organic’
• low pricing structures and reimbursement for pharmaceuticals
• restrictions in the provision of legal and professional services
• language barrier means translators and interpreters will be needed for certain aspects of business

3. Growth potential of South Korea

3.1 Economic growth in South Korea

South Korea has a GDP of over USD 1.7 trillion in 2014, around 1.6% of global GDP.

South Korea is currently taking measures to fight slowing economic growth, but despite this the economy grew by 3.3% in 2014 and according to the Bank of Korea, is predicted to grow by 2.8% in 2015.

3.2 South Korean free trade agreements

In July 2011, the EU-South Korea FTA came into force. This is the most comprehensive FTA ever agreed between 2 parties. It’s predicted to be worth at least £500 million per annum to the UK economy.

97% of tariff barriers between Korea and the EU will be eliminated within 3 years and EUR 1.6 billion of duties for EU exporters will be abolished annually.

South Korea also has 14 other free trade agreements currently agreed.

These free trade agreements mean that parties enter into legally binding commitments to relax access to each other’s markets’ for goods, services and investment.

3.3 South Korea’s major global conglomerates

Korean companies such Samsung (the world’s largest electronics company), LG and Hyundai are now global names.

There are opportunities to work with them on every continent, but particularly in the Middle East and Association of Southeast Asian Nations (ASEAN). This is where their contracting companies use international services and specialist foreign made equipment and components.

Major Korean contractors are beginning to win projects and invest in developed markets, particularly in energy and rail.

3.4 Foreign direct investment (FDI) incentives in South Korea

The South Korean government aims to transform the country into one of the top 10 business friendly economies in the world. It’s keen to encourage foreign investors and has been making efforts to ease excessive regulations and provide incentives for FDI.

The incentives include:

• tax support
• cash grants
• site location support

Find out more information about South Korea’s FDI incentives. These incentives are mostly in effect in the country’s 8 Free Economic Zones.

4. UK and South Korea trade

The EU-Korea FTA is estimated to be worth £49 billion to Korea and the EU. This represents a doubling in EU-Korea bilateral trade in the next 20 years compared to a scenario without the FTA.

UK goods exports to South Korea have risen 47.5% from 2010, the year preceding the FTA, to 2014. Korea made the single largest contribution to UK goods export growth in 2012 and exports reached a new historical peak in 2013.

South Korea is the third largest market in Asia/Oceania for UK exports (excluding the transport hub of Hong Kong) and the 13th worldwide overall.

Top 10 UK exports of goods (2014 - excluding oil):

1. Nuclear reactors, boilers, machinery, parts.
2. Road vehicles.
3. Optical, measuring, precision, medical and surgical instruments.
4. Electrical machinery, sound recorders, television image.
5. Pharma products.
6. Pearls, Semi-Precious stones and precious metals.
7. Beverages and spirits.
8. Iron or steel.

Over the last 45 years, the UK has been the second largest EU investor in South Korea, in cumulative terms.

Major UK investors include: Standard Chartered, HSBC, Prudential, Barclays, Fidelity Asset Management, Diageo, Burberry, Edwards, AMEC, Rolls-Royce, Shell and BP.

5. Opportunities for UK businesses in South Korea

Department for International Trade (DIT)’s strategic priority sectors for South Korea are aerospace, creative industries (design) and ICT (communications, industrial electronics, consumer electronics), automotive, consumer products, fashion, food and drink, education, energy, environment, financial and legal services, life sciences and sports infrastructure.

5.1 Nuclear and nuclear decommissioning sector in South Korea

South Korea’s 23 (20,716 Mwe) nuclear power plants supply about 30% of national electricity.

Under the National Energy Plan Korea will:

• increase nuclear’s share of generation to 59% of national electricity demand
• have 41% of installed nuclear electricity generation capacity in place by 2030
• have 11 new nuclear power plants in commercial operation by 2024

South Korea’s oldest operating reactor unit, Kori 1, will close in 2017 without a licence extension. It will become South Korea’s first nuclear power unit to enter the decommissioning phase. Korea is fairly new to decommissioning and waste management and there are opportunities for UK expertise in this field.

There are also opportunities in new build nuclear plants in third countries. Korea construction and infra firms have increased their reach across Asia-Pacific and the Middle East. This includes the construction of nuclear power plants, most notably in the United Arab Emirates (UAE) where 4 nuclear reactors are being built under a USD 20 billion contract. There are opportunities for UK companies to work with these Korean firms.

There are also specialist opportunities in:

• water and waste management
• air pollution abatement

5.2 Fast Moving Consumer Goods (FMCG) and online retail sector in South Korea

South Korea is an enticing market for competitive British retail brands. Following the EU-Korea FTA, there has been a consistent growth in the demand for UK retail brands in Korea, specifically for fashion, cosmetics, food and drink, baby and other consumer goods.

Growing numbers of lifestyle shops is contributing to the diversification of distribution channel in the market and this is generating new opportunities for UK’s small, but competitive consumer goods brands.

The Korean fashion market is a major location for many international brands. Despite strong competition from local brands, there is still growing demand for new international fashion items. Currently, men’s fashion, casual wear, casual footwear, fashion accessories are seeing increasing demand.

The Korean cosmetics market is highly advanced with Korean cosmetics shopping enticing visitors from the rest of the Asia-Pacific region. As consumers are becoming more knowledgeable, their interest in the natural and organic skincare market has grown rapidly.

Department for International Trade (DIT) South Korea is exploring new online sales channels and E-Exporting opportunities for all these sectors.

5.3 Fintech in South Korea

Korea is a digitally advanced and highly connected nation with smartphone penetration of 83% and advanced 4G infrastructure.

Korea’s financial technology industry was until recently constrained by government regulation and a lack of domestic venture capital. Korea is now looking to turn this situation around and seeking support from more experienced fintech markets, such as the UK.

Entiq (Level39), world’s leading Fintech accelerator in London has recently signed Memorandum of Understanding (MoUs) with Korea’s Financial Services Commission (FSC) as well as Seoul Metropolitan City to work together in Fintech and other ICT fields, as the UK is widely recognised in Korea as an expert in this field.

5.4 Advanced automotive sector in South Korea

Korea is world’s fifth largest automobile producer by units produced.

It’s looking use its strong base as traditional automotive manufacturing power to expand into advanced automotive technology and innovation, especially around low carbon vehicles and driverless technology.

An eco-friendly vehicle programme has been created by the government to support these technologies’ development. South Korea aims to be among the global top 4 nations for low carbon and green vehicles.

The UK is increasingly gaining attention in Korea as an innovation leader, especially in driverless technology, and opportunities are increasing from this.

5.5 Sports infrastructure in South Korea

South Korea has a proven track record of delivering large scale sporting and entertainment events, and will be hosting the Winter Olympics in Pyeongchang 2018.

There are opportunities for companies who excel in:

• marketing and ticketing
• hospitality and catering
• advanced IT
• green building and design, including stadium and accommodation build
• low carbon solutions
• legacy planning

6. Start-up considerations in South Korea

You can set up a representative office, a branch office, a joint venture or a wholly foreign owned enterprise in South Korea.

The most common form of operation is distribution via an agent. Entering a market by working with an agent or distributor can have several advantages including:

• reducing time and costs
• gaining local knowledge
• accessing networks of the agent or distributor

However, there are also some disadvantages when employing a third party including:

• additional cost to your products
• losing control and visibility over sales and marketing

Since the Free Trade Agreement it’s increasingly easy and common to set up as Foreign invested enterprises (FIEs).

Taxation and legal obligations differ depending on which business structure you choose.

7. Legal considerations in South Korea

Korea has aimed to create a business friendly legal environment over the past decade. However the legislative structure means that laws can change frequently and rapidly.

The 3 main bodies in charge of legislation implementation and information are:

• Ministry of Government Legislation
• Regulatory Reform Committee
• FTC Fair Trade Commission

7.1 Standards and technical regulations in South Korea

The Korean Agency for Technology and Standards (KATS) administers and monitors Korea’s Industrial Standards (KS).

KATS are frequently referenced in government regulations and technical specifications, and implemented by public agencies in procurement. KATS are continually working to bring Korean standards in line internationally.

There are separate standards boards for:

• telecommunications - Telecommunications Technology Association (TTA)
• food and agriculture - Food and Agricultural Import Regulations and Standards(FAIRS)

Labelling in South Korea

Country of origin labelling is needed for commercial shipments entering South Korea. Korean language labels must be shown at the time of customs clearance. They can be attached locally on products in the bonded area, either before or after clearance.

Further labelling and marking requirements for products such as pharmaceuticals and food, are covered by regulations from the government agencies responsible for them.

The Korea Food and Drug Administration is responsible for setting and enforcing Korean labels for food products, other than livestock products. These are regulated by the Ministry of Food, Agriculture Forestry and Fisheries.

The Korean Customs Service publishes a list of the country of origin labelling requirements by Harmonized System Code number (an international classification system managed by the World Customs Organisation).

The Certificate of Origin should indicate the item’s description, quantity, price, place of origin, exporter and importer, and be written in English, Korean or French. For items shipped directly to South Korea from their country of origin, the Certificate of Origin should be issued by the relevant customs authorities or Chamber of Commerce. The items should be clearly marked with their country of origin.

7.2 Intellectual Property Rights (IPR) in South Korea

You should register your patents and trademarks with the Korean Intellectual Property Office (KIPO) before you commit to any important deals with South Korean companies.

The patent and trademark registration system in South Korea favours the first company to register successfully with KIPO. Therefore, the sooner you register the better. Companies that do not register in South Korea will be disadvantaged in any future legal disputes over IPR.

8. Tax and customs considerations

8.1 Sales tax in South Korea

South Korea has a basic Value Added Tax (VAT) rate of 10%. The sale of cultural items, eg newspapers, books, magazines may be exempt.

The following transactions qualify for zero rated tax status:

• the export of goods
• the supply of services outside Korea
• the supply of international transportation services by vessel or aircraft
• the supply of certain goods or services paid in foreign exchange

8.2 Company tax in South Korea

Korea’s corporate tax rates as of January 2015 are:

• 10% on the first KRW 200 million
• 20% for the tax base between KRW 200 million and 20 billion
• 22% for the excess

There are special tax exemptions under the FDI incentives scheme. For more go to InvestKorea.org.

8.3 Income tax in South Korea

South Korea’s Income tax for non-residents applies only to their Korean earned income. Korea has both a flat tax option of 17.5% and a progressive tax option that will reflect income.

Regional tax offices can be found at the National Tax Service website.

The National Tax Service and InvestKorea provide further information on the South Korea’s tax system.

8.4 Customs in South Korea

There are 2 methods of determining a duty amount:

• declaration and payment
• notice of assessment

In declaration and payment, the person wanting to import goods makes a declaration on the payment of the customs duties direct to the customs house.

In notice of assessment, the customs house imposes and collects customs duties.

In most cases, businesses use the declaration and payment method. The notice of assessment system is mainly used for the imposition of minor customs duties, such as on passengers’ and crews’ goods, unaccompanied baggage and postal matters.

Check the Korea Customs Service website for more information and customs forms.

Benefiting from the EU-South Korea free trade agreement

The EU-South Korea FTA made a large number of products eligible for preferential duty rates on release into free circulation into South Korea.

Access to preferential rates of duty for exports to South Korea is dependent on products meeting rules of origin requirements set out in Annex II of the FTA Protocol.

Claims to preferential duty rates must be supported by an origin declaration on an invoice or other commercial document, such as a packing list or consignment note. A Bill of Lading is not suitable and should not be used.

You are advised to make the origin declaration on a document issued by the approved exporter. The text of the origin declaration is available at L 127/1410 in the FTA Protocol.

You must be an approved exporter to make an origin declaration for consignments above €6,000. You must use your approved exporter number (as the customs authorisation number) in your origin declaration to support a claim to a preferential duty rate.

If the consignment value falls below €6,000 you should include your approved exporter number in the origin declaration, if you have one. Otherwise the reference to the customs authorisation number on the origin declaration must be deleted or left blank.

You can apply to become an approved exporter by completing the online application. You’ll need:

• your EORI number
• the first 2 or 4 digits of the commodity codes of the goods that you trade in

As part of your application you’ll also need to provide an appropriate contact point within your business who can answer any queries HMRC may have about your application or registration.

South Korean authorities may ask to see the approved exporter certificate. If you are asked to provide proof of approved exporter status please contact HMRC.

8.5 Documentation in South Korea

Companies with no record of trade law violations don’t need customs inspection. The only exception relates to high-risk items imported into South Korea.

Importers can make an import declaration online using the Korean Customs Service’s(KCS) Electronic Data Interchange (EDI) system for paperless import clearance. You don’t need to visit the customs house.

Import declarations may be filed at the customs house before a vessel enters a port or before the goods are unloaded into bonded areas. Goods don’t have to be stored in the bonded area if the import declaration is accepted.

Exporters can file an export notice to Korean Customs using computer based shipping documents at the time of export clearance. All commodities can be freely exported unless they are included on the negative list.

Korean Customs allows free customs entry to goods brought into South Korea that are carried by hand by foreign business people (such as laptop personal computers) for use during their stay in the country.

Generally, Korean Customs makes a note on the traveller’s passport which requires them to take the items out of South Korea when they leave.

The Korea Customs Service provides further details on customs regulations.

9. Business behaviour in South Korea

South Korea is a vastly modernised and business friendly environment. However there are some cultural differences to be aware of. These include:

• Korea’s numerical system counts differently from the UK’s so make sure all numbers are written down and fully understood in negotiations
• Korea has a culture of dynamic, rapid action so be prepared for expectations of fast delivery and occasional last minute alterations
• a slight bow, followed by a handshake, is the preferred way of greeting in the modern Korean business environment