Finding agents and distributors in Korea

Most Australian firms rely on agents or distributors to represent their businesses and sell their products in international markets like South Korea. The roles of agents and distributors are often confused, so it is important to understand the difference between them. The definition and responsibilities of agents and distributors can also vary between country and industry. The information below is of a general nature. It therefore important to make sure you have the role of the Korean party clearly defined and confirmed in the individual agreement you have with them, and not assume they will take on all activities that an agent or distributor may generally perform.

The first step to take when searching for an agent or distributor is to determine where and when to visit. There are no fixed rules about when to visit a market, except that you should do so before entering into any agreements with prospective agents, distributors, or other business partners that could influence your future dealings. Consider meeting with several potential partners first to give you a basis for comparison. It can be helpful to meet with the contact you believe will be the best fit for your business towards the end of your trip. This will give you time to develop a better understanding of the market so you can handle questions and discuss strategic options with confidence. Concentrate your effort on only one or two markets at first to ensure a better chance of success.

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Choosing an agent or distributor

The most important consideration when choosing an agent or distributor is to ensure that you can establish a close working relationship – you have to be able to build high levels of trust and regular communication.

Before making a final decision, be sure to meet with the potential partner in their own market – this allows you to get to know them better and observe how much they know and their presence in their own market. Also ask your potential business partner for trade references and consider using a professional credit-checking agency to confirm their financial stability.

When selecting a partner, consider:

  • Do they have good networks and contacts?
  • What is their experience in that sector? Do they have good knowledge and have they represented a similar product previously? Can they help with marketing?
  • A well-established company with a good network of contacts may not be flexible or open to your ways of business.
  • A young, energetic company will tend to be flexible, innovative and trying to prove their worth. The downside is they may have limited experience or contacts.

Want to learn more? Explore our other South Korea information categories or download the Korea Country Starter Pack.