The most common means of representation include: 1) appointing a registered commissioned agent (more commonly known as an "offer agent" in Korea) on an exclusive or non-exclusive basis, 2) naming a registered trading company as an 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 handle all of the import paperwork 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.

To find a local representative, a good place to begin is with a fee-based service called the International Partner Search (IPS) that is offered through the U.S. Export Assistance Centers (USEAC) located throughout the United States and through the Commercial Service Korea (CS Korea). For a modest fee, CS Korea's industry specialists will tap into their well-established network of industry contacts and trade associations. A client would first receive an annotated list of three to five potential, qualified representatives. The next step would be to plan a visit to Korea, perhaps calling upon CS Korea to arrange market briefings, a meeting schedule, and an interpreter/secretary under another fee-based service called the Korea Gold Key Service (GKS).

Another good contact is the Korea Importers Association (KOIMA), a well-established, private trade association founded under government auspices and dedicated to increasing imports into Korea. To fulfill its original mission of promoting balanced trade, KOIMA helps execute Korea's import diversification plan, leads annual purchasing missions to the United States, Latin America, and Europe, and holds monthly meetings between member agents and the commercial sections of various embassies located in Korea.

American businesses can contact KOIMA by sending their company catalogs with a letter specifying the items for which they are seeking an agent or visit the KOIMA office directly. Catalogs are displayed in the KOIMA library and inquiries are published free of charge on the association's web site or in the monthly KOIMA Magazine (KOIMA contact information is listed at the end of this section). CS Korea also works closely with KOIMA to advertise requests for agents and distributors received from American companies.

When writing a distribution or agency contract it is common to include a termination clause. When there are no specific provisions in a contract on termination, the Korean Commercial Arbitration Code can specify the provisions for terminating the contract. This compensation clause allows the agent to claim compensation from the principal. As a mutually signed contract between a supplier and an agent/distributor overrules the default Korean provisions of claims by a commercial agent, U.S. companies are advised to include termination provisions.

CS Korea recommends that U.S. companies seek legal counsel prior to signing a contract in Korea. Most experts also recommend hiring a local attorney prior to making major business decisions in dealing with Korean companies.

U.S. companies should also seek legal counsel with regard to protecting their intellectual property. Trademark and patent registration (if applicable) with the Korea Intellectual Property Office (KIPO) is the minimum safeguard for your intellectual property rights in Korea. 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 these important intellectual property rights, 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.

To view a list of useful contacts for agents or distributors, click "here".