The most common means of representation are: 1) appointing a registered commissioned agent (commonly known as an "offer agent" in Korea) on an exclusive or non-exclusive basis, 2) naming a registered trading company as a manufacturer’s representative or agent, or 3) establishing a branch sales office managed by home office personnel with Korean staff.

Any businessperson registered with the Korean government can import goods in his/her own name. Appointing a registered trading company (rather than an "offer agent") as an agent has its advantages because these agents can manage all of the import documentation and imports for their own account. Registered trading companies tend to be larger firms that split their businesses between exports and imports. However, these larger firms may be less attentive to building the U.S. supplier's business, placing a higher emphasis on diversifying their portfolio of products from different countries. Similarly, while the larger general trading companies may be influential and well known in the market, they also may not devote as much attention to a single product as do smaller firms.

Companies unsure of the market potential for their product/service can initiate a "Quick-Take Business Facilitation Service." The first stop should be the Export Assistance Centers (USEAC) located throughout the United States requesting "Quick Take," a modest-fee based review of market potential conducted by one CS Korea's Trade Specialists. This is an initial review only and not an in-depth market study or analysis. Companies who have made a decision to enter the Korean market or expand their presence and seek representation should request the Gold Key Service (GKS). Under a GKS program, the U.S. client meets directly with prospective agent/distributor candidates. Trade specialists utilize their network of industry contacts and trade associations to identify pre-screened and high potential partners for the U.S. client.

CS Korea strongly recommends that U.S. companies seek legal counsel prior to signing a contract. Most experts also recommend hiring a local attorney prior to making major business decisions with Korean companies. A final recommendation is that any distribution or agency contract include a termination clause. Otherwise, Korean Commercial Arbitration bodies may specify the terms for termination, including compensation claims against the principal. A signed contract between a supplier and an agent/distributor with termination provisions would avoid risks for the U.S. company.

U.S. companies should also seek legal counsel with regard to protecting their intellectual property. Trademark and patent registration (if applicable) with the Korean Intellectual Property Office (KIPO) is the minimum safeguard for your intellectual property rights. U.S. companies are advised to seek the services of a local attorney to directly register their trademarks and/or patents in their own names. In order to have control over IPR, registration must be done in the U.S. company's name and not the Korean agent's name. Under Korean law, applications must be done in Korean and submitted to KIPO.

Copyrights are under the jurisdiction of the Ministry of Culture, Sports, & Tourism, visit: http://www.mcst.go.kr/english/index.jsp and http://eng.copyright.or.kr/

To view a list of useful contacts for agents or distributors, go to the link below. http://www.buyusa.gov/korea/en/agentscontacts.html