DHL SOUTH KOREA FACT SHEET

S O U T H KO R E A

North Korea

SeoulIncheon

Gangneung

Samcheok

Buyeo

GunsanDaegu

Yeongdeok

Pohang

Gyeongju

Gwangju

Mokpo

Masan

Busan

Jeju City

DHL GatewayMajor City

KEYCapital City

Country Profile

Capital Seoul

Population 49 million

Area 99,720 sq km

Currency 1 won (KRW) = 100 jeon

GDP US$ 1.666 trillion (2013 est.)

Languages Korean, English

Ethnic Groups Homogeneous, exempting 20,000 Chinese

Source: CIA World Factbook

DHL FACTS

Locations: 69

Gateways into the Country: 1

Number of Service Centres: 22

DHL Delivery Zone: 7

Vehicle Fleet: 426

OVERVIEW

Since the 1960s, South Korea – officially the Republic of Korea – has set world records in economic growth and development, underwritten by a focus on heavy industry and manufactured exports. In 2009, the country became the first nation to go from being an Organisation for Economic Co-operation and Development (OECD) aid recipient to a member of its donor committee. Today, South Korea is the world’s twelfth-largest economy and leading global supplier of LCD screens, memory chips and mobile phones.

The country’s population is highly educated – 74 per cent of South Koreans hold postgraduate-level degrees – and technologically advanced with the world’s highest level of broadband penetration. As a result, South Korea obtained first place in Bloomberg’s Global Innovation Index 2014.

South Korea’s government has several initiatives underway to foster sustainable economic growth. This includes building on the success of sectors that are already globally competitive, such as construction engineering, but also expanding health care, tourism and financial services. The country is also developing its SME sector and aims to become one of the top ten business-friendly economies in the world, encouraging foreign investors through incentives such as tax support, simplified regulations and grants.

South Korea’s economy grew 2.8 per cent in 2013 and could achieve 3.8 per cent growth in 2014 according to the Bank of Korea; by 2019, South Korea’s economy is set to be the tenth largest contributor to world growth.

South Korea has a strong economic relationship with Ireland, which peaked at €2.3 billion in bilateral trade in 2000. In 2009, trade between Ireland and South Korea stood at €592 million (€330 million in exports and €262 million in imports).

In 2011, a Free Trade Agreement (FTA) between the EU and South Korea came into force. The agreement, the EU’s first with an Asian country, eliminates about 98 per cent of import duties and minimises the impact of other non-tariff barriers. Trade levels between the EU and South Korea are expected to double by 2030 as a result of the FTA to be worth approximately €19 billion to the EU.Sources: The Economist, Bank of Korea, Bloomberg, Enterprise Ireland, European Commission, GOV.UK, Irish Exporters Association

DHL South Korea Fact Sheet 2

Source: DHL, CIA World Factbook

Ireland to South Korea Transit Times

The times provided for dutiable shipments are based on the time expected for customs in South Korea to clear the shipment. This is contingent upon the value of the shipment.

Seoul Non-Dutiable: 3 days Dutiable: 3 days

Busan Non-Dutiable: 3 days Dutiable: 3 days

Gwangju Non-Dutiable: 4 days Dutiable: 4 days

Ulsan Non-Dutiable: 3 days Dutiable: 3 days

Sokcho Non-Dutiable: 5 days Dutiable: 5 days

TRADE INFORMATION

ESSENTIAL CUSTOMS INFORMATION

The EU-South Korea Free Trade Agreement allows for a reduced or nil rate of duty for Irish origin goods. For further information on what documentation you need to provide to support the claim for duty relief, visit www.revenue.ie.

E-commerce shipments (B2C) are declared as formal entry regardless of invoice value. De minimus clearance is not permitted. This includes articles of paper, printed books, apparel and clothing accessories, footwear, CDs/DVDs, furniture, lamps and lighting.

Korea Customs Service is very strict on undervalued shipments, vague descriptions (e.g. sample, spare parts) and inaccurate company name/address, all of which can result in additional delays and penalties.

General correspondence (business or private) is under strict Customs supervision to detect illegal goods concealed as document shipments.

Certain items, as specified below, are subject to quarantine inspection by South Korea’s Animal and Plant Quarantine Agency (QIA); approval by South Korea’s Ministry of Food and Drug Safety (MFDS); approval by South Korea’s Ministry of Health and Welfare (MOHW); or approval by South Korea’s National Radio Research Agency (RRA).

Exports from South Korea

US$ 557.3 billion (2013 est.)

Export commodities Semiconductors, wireless telecommunications equipment, motor vehicles, auto parts, computers, display, home appliances, wire telecommunication equipment, steel, ships, petrochemicals.

Top Export Destinations USA, China, Japan, Hong Kong, Russia, Germany.

Imports into South Korea

US$ 516.6 billion (2013 est.)

Import commodities Machinery, electronics and electronic equipment, oil, steel, optical instruments, transport equipment, organic chemicals, plastics.

Top Import Origins USA, China, Germany, Hong Kong, UK, Japan, Italy, Taiwan.

For an estimate of landed costs (duties, taxes and other import fees) for shipments going to the South Korea, use the free DHL Express Trade Automation Services (TAS) tool. tas.dhl.com TAS also provides information on regulation compliance and trade documentation.

Prohibited Items

The list below is in addition to DHL’s standard list of prohibited items.

• Asbestos

• Cancelled cheques (NI) if in a bearer form

• Dangerous goods, hazardous or combustible materials

• Goods from the Democratic People’s Republic of Korea (North Korea), including propaganda

• Firearms, or parts of

• Pornography

• Soil & soil samples

• Toy guns

DUTY FREE ALLOWANCE US$ 100

DHL South Korea Fact Sheet 3

Restricted ItemsAlcoholic beverages Formal import: subject to quarantine inspection by QIA; receiver must have import licence. Samples imported by licensed companies for private consumption: 1 bottle can be imported without quarantine inspection, though formal clearance is required. Receiver needs to pay liqueur tax regardless of invoice value. Total amount should not exceed US$ 400.

Animal products, including cosmetics with bovine componentsUnprocessed: Subject to quarantine inspection by QIA. Shipper to provide quarantine inspection report on collection at country of origin.Bovine products: receiver to provide Certificate of Non-BSE (Bovine Spongiform Encephalopathy) Product from MFDS. Licensed importers: provide recommendation from related organisation.

Animal skinsSubject to quarantine inspection by QIA.

Artwork including drawings / proofs / layouts Artwork including drawings: ship as goods. Artwork including proof/layout: ship as documents.

Biological Substance Category B, UN3373 Adhere to the International Transport Association’s (IATA) Dangerous Goods Regulations.

Circuits & circuit boards, communications & telecommunications equipment, computer components & parts, electronic equipment including MP3 players, printers & IT equipment, phones / modems and radios including radio equipment / partsRRA certification required. Certain items will require certification by South Korea’s Law of Electrical Appliance Safety Management or Law of Electrical Communications Apparatus; contact DHL Customer Services before shipping for more information.

Consumable finished goods including footwear, clothes and bagsIf value exceeds US $100: state trademark /brand name on the invoice.

Drugs: prescription & non-prescriptionHealth products and vitamins: 6 bottles permitted per Waybill. Other drug products: provide component analysis table. Attach additional prescription for personal use. All importers other than individuals should be licenced and receive import approval from MFDS or MOHW.

FoodstuffsSubject to quarantine inspection by QIA, unless canned or tinned. If value exceeds US$ 150: provide Certificate of Origin. Jerky: Certificate of Origin required regardless of value.

Non-hazardous chemicals & liquids, oil products including bunker oil samples (for analysis) and substances containing sodium/calcium cyclamate Provide component analysis table. Adhere to the International Transport Association’s (IATA) Dangerous Goods Regulations.

Magazines, periodicals, journals, newspapersIf free of charge and not for resale purpose: send as documents.

Medical samplesLicenced importers: provide recommendation from related organisation. Blood: Contact DHL Customer Services before shipping; must be packed with cooling device. Human blood samples: only permitted if imported by the International Red Cross and Red Crescent Movement.

Military equipment Acceptable only for military bases or military officers.

Photographs, including photographs as part of business reports Ship as goods regardless of use or purpose.

Plants & plant productsSubject to quarantine inspection by QIA. Soil must be completely removed, or the shipment will be destroyed (charge: US$ 90) or returned to origin. Contact DHL Customer Services before shipping to ensure the plants are not restricted.

Seeds, including cotton seed Subject to quarantine inspection by QIA. Seeds for cultivation purposes: provide original phytosanitary certificate from country of origin.

Ship spares for ships in transitShow full description, quantity and name of vessel on invoice. Penalties may be incurred if manifest is unclear.

TobaccoSubject to quarantine inspection by QIA.

For medication from China, perishables and x-ray machines please contact DHL Customer Services before shipping.

Valid from: 08/2014

For more information

If you need support or advice on trading with South Korea, help is available.

Contact the DHL Express team on 1890 725 725 (+353 1 870 0790 if you’re calling from outside of the Republic of Ireland).

Visit www.dhlguide.ie for international trade information

Chambers Ireland or your local Chamber of Commerce www.chambers.ie

Enterprise Ireland www.enterprise-ireland.com

Irish Exporters Association www.irishexporters.ie