Frequently Asked Questions

A traditional distributor takes your margin (typically 35–55%), your customer data, store ownership, and pricing control. When the contract ends, the store, the reviews, and the customers belong to the distributor.
KONIVO provides only the operating infrastructure — beneficial ownership of every revenue-generating asset stays with you. With the 30-Day Transfer Guarantee, you can move to independent operations at any time.

You do. Each channel's API tokens and data streams are assigned individually to your brand. Reviews, ratings, and purchase cohorts are attached to the store node, so they stay in place even after the operating relationship with KONIVO ends. Pixel history and audience segments can be exported to your account on request.

We support most categories — health supplements, cosmetics & beauty, sports nutrition, food & beverage, household goods, electronics, toys, fashion & accessories, pet products, and more. Heavily regulated items such as pharmaceuticals and medical devices require a separate consultation. Tell us your category when you request a consultation and we'll outline the applicable compliance path.

A structured 30-day transfer procedure begins. Store accounts, ad accounts, pixels, customer data, and API tokens are moved to your designated entity or successor operator. The transfer is a checklist procedure defined in the MSA — not a renegotiation. It is contractually guaranteed.

Within 3 business days you receive a consultation report covering: (1) a recommended entry structure for your category and goals (Plan A/B/C/D), (2) direction on KC / MFDS / PIPA / labeling / IoR requirements, (3) a proposed set and sequence of channels to open first, and (4) an expected timeline with clear transfer / termination terms. No sales calls. It starts with a few simple questions.

It depends on the category. In most cases it is handled with a Korean supplementary label applied over the original, without modifying the original label. KONIVO reviews the MFDS and Korea Customs Service labeling requirements that apply to your product and provides specific guidance.

Plan B (proxy operations) runs on a consignment sales agency agreement. KONIVO is your consignment sales agent — not a distributor, a buying entity, or an equity partner. Ownership of the product and the brand stays with you from start to finish. KONIVO sells on your behalf, then remits net proceeds after deducting agreed costs and commissions.

Yes. Through the Plan B (proxy operations) structure, KONIVO's Korean entity acts as Importer of Record (IoR) and Seller of Record (SoR), so you can sell legally through a store under your brand name without your own entity. The store account is registered under your brand identity and can later be transferred to your entity.

Yes. Under Plan A, KONIVO is registered as Importer of Record (IoR) and handles duties and customs clearance. You can sell legally on the Coupang cross-border channel without a Korean entity.

Most categories are possible except food, health supplements, cosmetics, and medical devices. Food and cosmetics require MFDS certification, and some categories require KC certification. Your brand must obtain those certifications; KONIVO provides requirement guidance and a procedural guide. Confirm the specific requirements for your category in a free consultation.

Parcels ship directly from your overseas warehouse (or 3PL) to the Korean consumer. For Coupang cross-border, Coupang's designated logistics route is used. KONIVO handles customs clearance only; you are the shipper.

All assets — store account, brand name, reviews — are yours. Plan A and Plans B/C/D are separate services: this is "parallel operation," not a "switch." The channel accounts stay in place.

Net proceeds — sales revenue minus KONIVO's commission and customs costs — are remitted monthly to your overseas account, together with a transparent settlement statement.

Yes. Every asset — store account, brand name, customer data, reviews — belongs to you from the start of the contract. KONIVO manages your account as an operating agent only; ownership is never transferred.

You do — 100%. KONIVO provides per-channel competitor pricing and promotion data and makes recommendations, but you approve the final retail price, discount rate, and whether to run a promotion.

After 90 days' written notice before contract end, we fully transfer store accounts, inventory, customer data, and all compliance documentation to you or an entity you designate within 30 days. The transfer procedure is written into the contract.

KONIVO registers, files, and pays Korean VAT under its own name. You don't need to be involved in VAT handling, and you receive net proceeds — excluding VAT — in your overseas account at settlement.

From contract signing to being ready for inventory inbound takes about 3–4 weeks (IoR/SoR registration, channel setup, product page build). Once you ship inventory on DDP terms, sales begin within 2–4 weeks after inventory arrives. The full timeline can vary with your brand's readiness and your category's compliance requirements.

A Korean branch is an extension of the head office and has no separate legal personality. It is faster and cheaper to set up, but the head office bears unlimited liability for the branch's debts.
A Korean subsidiary has its own independent legal personality, so the head office's liability is ring-fenced. For long-term operations, building a local team, and tax optimization, a subsidiary is generally better.

Yes. A foreign company's Korean branch can hire employees under the Korean Labor Standards Act. KONIVO supports all procedures — social insurance enrollment, employment contract drafting, and more.

Yes. We provide a roadmap — timeline, cost, and procedure — for converting from a branch to Plan D (a full entity) from day one, so you can make the transition naturally as the business grows.

Korean commercial law sets no statutory minimum capital. However, to be recognized as an FDI-registered foreign-invested enterprise under the Foreign Investment Promotion Act, you need foreign capital of at least KRW 100 million plus acquisition of at least 10% of the voting shares. Incentives such as cash grants, local tax (acquisition / property tax) reductions, and location support can only be applied for with this status (income and corporate tax reductions for foreign investment were abolished for applications filed from 2019).

Even if FDI status is not the goal, per KONIVO's assessment (2026-08), stricter tax office review means we recommend a minimum capital of KRW 10 million in practice. Around the statutory floor (~KRW 1 million) the rejection risk is high.

Per KONIVO's assessment (May–August 2026), some tax offices have been rejecting applications where (1) a non-resident foreign representative, (2) a virtual / co-working office address, and (3) minimal capital (around KRW 1 million) all apply at once. There is no official notice; it is administered at the discretion of the reviewing officer and may change over time.

KONIVO's mitigation: (1) a physical-address registered office (no virtual office), (2) capital of KRW 10 million or more recommended, (3) a Korea-resident representative registered as managing member — addressing all three risk factors.

No. This is the detail most often missed in real operations. A new corporate account starts as a limited account with a daily transfer limit of around KRW 1.3 million (approx. USD 700, varies by bank) — far too low for e-commerce payments, 3PL costs, or VAT payments.

To raise the limit: submit one quarter of VAT filing and payment records to the bank. In practice it takes 1–2 quarters (3–6 months) after entity formation before the limit is resolved. KONIVO helps design your operating cash flow during this period.

No. Entity formation and Coupang seller onboarding are entirely separate review processes. Coupang reviews the business registration certificate, corporate bank account, and category-specific certification documents against its own KYC standards, and a newly formed entity undergoes a separate review. KONIVO runs the two processes in parallel to minimize the gap to first revenue.

Once formation and transfer are complete, your entity operates fully independently. KONIVO can then provide tax advisory, compliance, and channel operations as optional services — or step away entirely if they're not needed.

Yes. Every KONIVO plan is designed with a phased transition as the default. When moving from Plan B or C to Plan D, store accounts, brand assets, contracts, and logistics are fully transferred to the entity's name.

Customs duty and import VAT (10%) apply. Duty is calculated as CIF value (goods + international freight + insurance) × the item's duty rate, and VAT is 10% of that amount plus the duty. Duty rates vary by HS code, and goods covered by an FTA such as the Korea–US FTA can qualify for a preferential rate with a certificate of origin. Under Plan B, KONIVO prepays the duty and VAT and deducts them at cost in the monthly settlement statement. See the import customs guide for details.

Failure to meet category-specific import requirements (items subject to customs verification). Cosmetics require compliance under the Cosmetics Act, food and health supplements require an MFDS import declaration, and electrical goods and children's products require KC certification before clearance. KONIVO checks that requirements are met before shipment to prevent refusal — but obtaining the certification itself (testing, fees) is borne by your brand.

No — it is illegal. Declaring below the actual transaction value is subject to penalties for duty evasion (up to 3 years' imprisonment or a fine of up to 5× the evaded amount) and price manipulation, and customs can assess additional tax through post-clearance review. When KONIVO is the Importer of Record, the primary tax liability and declaration responsibility sit with KONIVO, so accurate invoices and documentation are a contractual obligation.

Under the Foreign Trade Act, the country of origin ("Made in ___") must be marked on the product or its packaging so the consumer can identify it, and the marking method is declared with the import declaration. Missing or incorrect marking leads to clearance hold, a corrective order, and penalty surcharges. KONIVO advises on the position, size, and language rules at the label design stage.

If goods that differ from the contract (non-conforming goods) are re-exported or disposed of, and in cases of overpayment, the duty paid can be refunded (Customs Act; Act on Special Cases Concerning the Refund of Customs Duties). KONIVO handles the refund application and customs procedure.