Registration Requirements for Selling Imported Food in Korea via Local Purchasing Agencies Released

Under the Special Act on Imported Food Safety Management, the term "Imported Food Internet Purchasing Agency Business" refers to the commercial activity of purchasing and importing food products from overseas sellers' online malls at the request of domestic consumers in South Korea. Generally, foreign business entities located outside of South Korea are considered outside the country's administrative jurisdiction and are not directly subject to domestic business registration requirements.

Mandatory Registration for Domestic Operating Agencies

If you enter into a contract with a South Korean advertising or operating agency to perform substantive purchasing agency duties within Korea, the obligation to register for a business license depends on the entity performing the work and the operational structure. If the domestic agency manages orders, processes payments, and effectively provides the purchasing service on behalf of the overseas seller, that agency must be registered under Article 14 of the Special Act on Imported Food Safety Management and Article 2 of its Enforcement Decree.

Criteria for Identifying the Subject of Registration

The critical factor is determining which entity is recognized by the domestic consumer as the primary provider of the purchasing agency service. The following points are essential for classification:

• Substantive Operations: If the domestic agency is registered as the seller on Korean e-commerce platforms (Open Markets) and handles the entire process from order reception to delivery management, the agency is the subject of the registration obligation.
• Simple Marketing vs. Operations: If the agency's role is strictly limited to advertising while the overseas entity remains the direct seller, the obligation may differ. However, overseas businesses without a local business license often face practical barriers when attempting to register on domestic e-commerce platforms.

Risk Management and Compliance

When collaborating with a domestic partner, it is imperative to verify that the agency has legally registered its Imported Food Internet Purchasing Agency Business with the competent Regional Office of Food and Drug Safety. Operating through an unregistered agency may result in several risks:

• Customs Disruptions: Goods may be blocked or delayed during the customs clearance process.
• Administrative Sanctions: Both the agency and the business flow may be subject to legal penalties.
• Hygiene Education: Registered agencies are required to complete annual food safety and hygiene training and must monitor products for prohibited ingredients.

Conclusion and Professional Advice

In summary, while the U.S. business owner is not required to register directly, the domestic operating agency that performs the substantive purchasing agency work must be registered under Korean law. To ensure a smooth business operation, we recommend the following professional measures:

• Obtain a copy of the domestic agency's Imported Food Business Registration Certificate before starting operations.
• Conduct a preliminary review of product ingredients to ensure they do not contain substances banned by the Ministry of Food and Drug Safety (MFDS).
• Explicitly define the responsibilities regarding legal compliance and food safety in your service level agreements (SLA) or contracts.