Payment Methods — Exporting to South Korea

Essential guide for Indian exporters

🇰🇷 South Korea

Capital

Seoul

Currency

Won

Trade Agreement

APTA, India-Korea CEPA

Export Rank

#13

Continent

Asia

Payment Methods for Exports to South Korea

Local currency: Won. Most international trade is conducted in USD or EUR.

Letter of Credit (L/C)

Most Secure

Bank-backed guarantee of payment upon presentation of compliant documents. Recommended for high-value first-time transactions.

Documentary Collection (D/P, D/A)

Moderate

Documents are released through banks either against payment (D/P) or acceptance of a bill of exchange (D/A). Lower bank fees than L/C.

Advance Payment / Wire Transfer

Secure for Exporter

Buyer pays before shipment via SWIFT transfer. Ideal for small orders or established relationships.

Open Account

Buyer-Friendly

Goods shipped and paid for later (typically 30-90 days). Only recommended with trusted, established buyers.

For first-time exports to South Korea, a confirmed Letter of Credit is recommended. As the trading relationship strengthens, you may transition to Documentary Collection or Open Account terms.

More Export Guides for South Korea

Documents Required

Customs Duties & Tariffs

Shipping & Logistics

Quality Standards & Certifications

Business Culture & Etiquette

Trade Agreements with India

Market Entry Strategy