U.S. goods have a reputation among Korean buyers of having high quality and performance; however, since Korean manufacturers are price-conscious, they often regard U.S. products as very expensive. In an export-oriented economy where finished products must meet keen competition in the world market, many Korean manufacturers believe that it is essential to buy the cheapest raw materials and equipment, even at the expense of quality. Goods from Japan and elsewhere are often considered to be better buys than goods from the U.S. In addition, Korean manufacturers often seek to offset labor wages with low-cost inputs. However, as Korea continues to move toward exporting higher-end and manufacturer-branded products, and tries to combat criticisms of poor quality control of certain Korean products in recent years, the emphasis manufacturers place on price as a buying factor may be somewhat tempered. Other characteristics in Korean price considerations are the tendency to seek "bundled" prices and to undervalue "software" (engineering and other services components), particularly in the procurement of major systems.

Considering the factors outlined above, U.S. exporters might consider: 1) adapting their products to Korea by marketing basic units, 2) taking into account in their price quotations the likelihood of repeat business for spare parts and auxiliary equipment, and most importantly, 3) emphasizing and marketing the idea that the superior quality of U.S. manufactured input products ultimately results in lower production costs.

Another pricing factor that merits consideration is commissions. The commission rate for using an agent or distributor varies depending on the type of product and the transaction amount. On average, Korean agents require a 10 percent commission, particularly when a transaction is conducted on a spot basis, but this varies for different products. Generally, a 5-7 percent commission applies to product categories such as general machinery, including packaging, construction, and material handling equipment. Meanwhile, more sophisticated products such as medical, laboratory, and scientific analytical instruments usually require a commission of 15-18 percent or more, since these are products for which after-sales service is considered to be very important.

Korea has consumer-protection legislation that requires consumer items be labeled with both the manufacturer's sales price to the retailer and the marked-up retailer’s price to the consumer. The mark-up from manufacturer to consumer ranges from 50 percent to 150 percent.

Korea has a 10 percent sales tax that is included in the price of taxable items. There is a 10 percent VAT on services provided in Korea.