What are the common import duties and taxes in Korea? Released

South Korea is a country with limited natural resources. However, it has an economic structure that achieves a trade surplus by importing various raw materials, manufacturing high-value-added products using advanced technology and excellent human resources, and exporting high-quality products. 

Therefore, South Korea is highly proactive in establishing Free Trade Agreements (FTAs). FTAs reduce the cost burden on manufacturing companies when importing raw materials, while enhancing price competitiveness for exports, thereby invigorating South Korea's trade-centric economic structure.

As a result, South Korea's tariff rates for many types of products have reached 0% for most countries. Even when FTA benefits cannot be applied, the WTO agreement tariff rate of 6.5% is still lower than the basic rate of 8%. In some cases, the basic rate can even be 0%.

If you are planning to trade with South Korea and are concerned about tariffs and taxes, ensure that you prepare the necessary certificates of origin for FTA benefits or verify the applicability of WTO agreement tariff rates.

In addition, all imported goods are subject to import value-added tax (VAT). The import VAT is applied at a flat rate of 10% on the sum of the customs value and customs duties. Certain items may also be subject to specific taxes like liquor tax, transportation tax, or agricultural and fishery special tax, but these are limited to very specific items.

For more detailed information about South Korea's customs system, please contact us through our "Contact Us" page.