KONIVO Service — IoR & SoR Operations

What KONIVO
actually does

From customs declaration to marketplace sales, settlement, and transfer — we break down, step by step, every operational task KONIVO handles as your IoR and SoR.
New to the IoR/SoR concept? → Read the structure guide first

Customs & import declaration handled Seller operations across 5 channels Every settlement line item disclosed 30-Day Transfer Guarantee

Service Scope at a Glance

What KONIVO handles vs.
what you prepare

We clearly separate the items you no longer need to handle yourself once the contract begins from the items you must prepare in advance.

KONIVO handles this end to end
You don't have to do this
  • ✓Korean customs import declaration (IoR under KONIVO's name)
  • ✓Advance payment of customs duty and import VAT, then deducted at settlement
  • ✓Operating seller accounts on Coupang, Naver, Kakao, and 11st
  • ✓First-line CS by native Korean speakers (inquiries, exchanges, refunds)
  • ✓VAT (10% VAT) filing and payment
  • ✓Coordinating 3PL inbound, outbound, and return logistics
  • ✓Issuing monthly settlement statements + overseas remittance of net profit
  • ✓Responding to platform policy changes and maintaining listings
  • ✓Monitoring regulatory changes and notifying you in advance
You prepare this yourself
Must be resolved before the contract
  • !Obtaining mandatory category certifications (KC, MFDS, etc.) — cost borne by you
  • !Producing and affixing Korean-language labels and instructions
  • !Arranging transport to the Korean port of entry on DDP terms
  • !Deciding product, pricing strategy, and marketing direction
  • !Confirming export clearance in the country of origin
  • !Confirming whether Korean trademarks / IP are registered
  • !Home-country tax and accounting
Cannot be handled: We do not handle firearms, bladed weapons, narcotics, unlicensed pharmaceuticals, endangered species, or counterfeit goods.
Whichever plan you choose, the brand stays yours.
KONIVO operates under a consignment sales agency agreement. Ownership of the products, brand, pricing strategy, and customer relationships stays with you, and KONIVO is neither a distributor, nor a buying entity, nor an equity partner.
When you are ready, you can transition to a Korean entity under your own name (Plan C / D) at any time.
Book a free consultation

IoR · Customs Clearance Process

From purchase order to warehouse receipt
a 7-step flow

We break down the operational flow of how each step is handled in KONIVO's IoR structure, from an overseas brand's goods to their listing on Korean marketplaces.

Step 01
Purchase order & shipping preparation
You notify KONIVO of the Korea-bound shipping schedule in advance and share the product HS codes, invoice, and packing list.
You → KONIVO
Step 02
Advance certification check
KONIVO checks whether the mandatory certifications for the category are met. If anything is missing, we notify you before shipment to prevent customs rejection.
KONIVO review
Step 03
Shipment on DDP terms
You ship on DDP (Delivered Duty Paid) terms to the designated warehouse in Korea or the bonded area at Incheon Airport.
You ship
Step 04
Customs declaration under KONIVO's name
As the importer of record (IoR), KONIVO files the import declaration with the Korea Customs Service, pays the customs duty and VAT, and completes clearance.
KONIVO handles
Step 05
3PL inbound & inspection
After clearance, goods are received into the 3PL warehouse. We inspect quantity and condition and report the results to you. Coupang Rocket Growth inbound also takes place at this step.
KONIVO manages
Step 06
Marketplace inventory allocation
Received inventory is distributed across channels such as Coupang and Naver according to each channel's sales plan. If a stock shortage is forecast, we notify you proactively.
KONIVO operations
Step 07
Inbound completion report
We deliver the inbound quantities, any discrepancies, and the full set of customs documents to you. Sales performance from then on is included in the monthly settlement statement.
You receive
About clearance costs: Customs duty is calculated as customs value (CIF: goods value + international freight + insurance) × the item-specific duty rate, and import VAT as (customs value + customs duty + individual consumption tax, etc.) × 10%. The deadline for paying customs duty is within 15 days of the date the tax declaration is accepted. Customs duty, VAT, and the customs clearance agency fee arise per inbound shipment and are transparently disclosed as deduction line items on the monthly settlement statement. When shipping on DDP terms, you bear the freight, and costs arising after clearance are paid in advance by KONIVO and deducted at settlement. Goods covered by an FTA agreement may receive a preferential tariff rate with a certificate of origin.

Certification · Regulatory Requirements

Korean import certifications by category

Korea's statutory certifications that must be obtained before import and sale differ by category.
Below are the key certification requirements for the categories KONIVO most commonly handles. The cost and process of obtaining certifications are borne by you; KONIVO supports you with requirement guidance and introductions to the relevant agencies.

Category Governing agency Mandatory certification Key details
Food · health functional food MFDS Import declaration required Import food declaration required. Health functional foods require a separate functionality recognition process. Korean-language labeling is mandatory.
Cosmetics · skincare MFDS Import declaration required Cosmetics responsible distributor registration, or handling via an agent, is required. Korean-language full ingredient labeling and expiry date labeling are mandatory.
Electronics · home appliances RRA (National Radio Research Agency) KC certification required KC certification under the Electrical Appliances and Consumer Products Safety Control Act is required. Without it, customs clearance is not possible.
Children's products KATS (Korean Agency for Technology and Standards) KC certification required The Special Act on the Safety of Children's Products applies. Distribution and sale are not allowed without the KC mark. Safety testing is mandatory.
Quasi-drugs · hygiene products MFDS Product approval required If classified as a quasi-drug, product approval or notification is required. Import business registration and GMP documentation may be required.
Agricultural food · livestock products Ministry of Agriculture, Food and Rural Affairs Quarantine required Animal and plant quarantine is required. Some items are prohibited from import or subject to separate admissibility criteria. Country-of-origin labeling is mandatory.
Apparel · textiles Ministry of Environment Environmental labeling recommended No mandatory certification, but voluntary KC safety confirmation is recommended. Fiber composition labeling and care instruction labeling are mandatory.
Pet products Ministry of Agriculture, Food and Rural Affairs / MFDS Varies by item Feed and treats require an import declaration. Accessories (leashes, apparel, etc.) require no separate certification. Item-by-item confirmation is essential.
General consumer goods · sundries — No separate certification required If not subject to electrical, food, or chemical regulations, no separate mandatory certification applies. Korean-language labeling and country-of-origin labeling are mandatory.
The above is general guidance; actual certification requirements may vary depending on a product's detailed specifications, ingredients, and intended use. KONIVO reviews the specific certification requirements for your products separately during the consultation.

Official Resources

Official government materials

Check customs clearance, duties, and import requirements against the official government materials below. A more detailed practical explanation is compiled in the import customs clearance guide.

Import customs procedure guide (Ministry of Government Legislation) Customs duty & VAT payment guide (Easy Law) Overseas direct-purchase customs guide (Easy Law) Korea Customs Service UNI-PASS electronic customs · customs ID code Customs Law Information Portal (tariff rates · HS code lookup) Ministry of Food and Drug Safety (MFDS) Product Safety Information Center (KC certification) KOTRA Invest KOREA (foreign investment & incorporation)

Links go to each agency's official site. Rules change periodically, so confirm the source text and check with KONIVO before you rely on this for an actual customs clearance.

SoR · Channel Operations

SoR operating approach
by major marketplace

We explain in detail how KONIVO actually operates each channel as the seller of record (SoR), with an operating approach tailored to each platform's characteristics.

Coupang
Rocket Growth · Marketplace
●Products are listed on the marketplace through KONIVO's seller account, using your brand name and store name as they are.
●Rocket Growth inbound: your inventory is stocked in advance at a Coupang Fulfillment Center (CFC) to enable same-day and next-day delivery.
●We localize the product detail page (PDP) for Korean consumers and improve search visibility through keyword optimization.
●Based on Coupang Wing (seller admin) statistics, we share sales status, returns, and CS issues in a monthly report.
●We run on-platform advertising based on Rocket Ad and support performance optimization.
Coupang-specific: Rocket Growth inbound secures the same-day/next-day delivery badge → improved conversion rate
Naver Smart Store
Smart Store · Shopping Search
●We open a Smart Store under KONIVO's name and operate it as your brand store. Store design, banners, and promotional features are produced in line with your brand guidelines.
●We run Naver shopping search ads (Shopping Search / Shopping Brand) and maximize new customer acquisition by optimizing search ranking.
●We collect revenue in line with the Naver Pay settlement cycle and consolidate the deduction details into the monthly settlement statement.
●Review management: we monitor purchase reviews, respond to negative reviews, and support reward-point campaign planning.
●We operate targeted messaging to customers who have opted in to Smart Store notifications (brand notification messages).
Naver-specific: shopping-search visibility + repurchase-rate management based on Smart Store followers
Kakao Gift
Gift · Kakao Store
●Kakao Gift is Korea's largest gifting channel. After onboarding through KONIVO's seller account, we structure your products to fit the gift categories.
●We provide gift-set composition and box-packaging guidance, and maximize exposure by participating in holiday and seasonal promotions.
●Kakao Pay checkout integration minimizes consumer payment friction and drives fast purchase conversion.
●We support message marketing planning integrated with the KakaoTalk Channel (formerly Plus Friends).
Kakao-specific: given the nature of the gifting channel, premium positioning and gift-set composition are key
11st
Open market · Amazon Global Selling
●One of Korea's three major open markets. Its broad general-category coverage makes it useful for testing new categories.
●Where linked with Amazon Global Selling Korea, we build a launch strategy that leverages existing Amazon sales data.
●By analyzing traffic and conversion-rate data per SKU, we optimize which products to focus on which channels.
11st-specific: used as a channel for Amazon integration and category-expansion testing
Live commerce channels
Coupang Live · Naver Shopping Live
●We plan live broadcast sales via Coupang Live and Naver Shopping Live, and support Korean-speaking host booking and script preparation.
●Live-only coupons and limited-quantity offers drive immediate purchase conversion.
●We analyze live broadcast performance (viewers, conversion rate, revenue) and feed it into the strategy for the next broadcast.
Live-specific: effective for new product launches, clearing inventory, and spreading brand awareness
Additional channel expansion
Discussed according to your goals
●Onboarding additional channels such as SSG.com (Shinsegae), Lotte On, and Gmarket is discussed individually based on your category and revenue targets.
●Onboarding vertical platforms such as Musinsa, Olive Young, and Kurly involves separate screening conditions, so it proceeds after a prior consultation.
●Based on performance data, we make quarterly recommendations on which channels offer the highest return on additional investment.
Channel strategy is custom-designed to fit your category during the consultation

SoR · Settlement Structure

From revenue to net-profit remittance
the full settlement flow disclosed

We transparently disclose, line item by line item, how channel revenue is deducted in KONIVO's SoR structure and how the final net profit is remitted to you.

Total channel revenue
100%
Revenue collected from
platforms such as Coupang and Naver
→
Deduction items
−costs
Fees, logistics, VAT, and
operating costs disclosed by line item
→
Your net profit
Remittance
Monthly remittance
to an overseas account
Settlement status dashboard

Check net profit by channel
in real time

Compare revenue, deductions, and net profit across all channels — Coupang, Naver, Gmarket, and more — month by month on a single screen. See at a glance which channel is the most profitable.

  • Automatic aggregation of total revenue / total deductions / net profit by channel
  • Real-time display of month-over-month change
  • Spot trends with a monthly bar chart
Coming Soon — to be released as SaaS
dashboard.konivo.com/settle
Total channel revenue
$82.4K
▲ 8.3%
Total deductions
−$28.6K
▲ 1.2%
Your net profit
$53.8K
▲ 12.1%
Monthly channel net-profit trend (H1 2025)
Jan
Feb
Mar
Apr
May
Jun▸
Settlement statement management

Deduction details
transparent by channel

Every month we automatically issue a settlement statement that itemizes all deductions — platform fees, logistics costs, advertising costs, VAT, and more — separated by channel and by line item. You can download a statement for each individual item as a PDF.

  • All 8 deduction items itemized separately
  • Automatic PDF issuance of settlement statements by channel
  • Track month-over-month change by line item
Coming Soon — to be released as SaaS
dashboard.konivo.com/invoice
Home
Settlement statements
Reports
Settings
Deduction detail — May 2025
Item Channel Amount (USD)
Platform fee Coupang $7,280
Platform fee Naver $3,140
Domestic logistics Coupang $4,920
Advertising All channels $4,200
VAT All channels $3,100
Operating fee KONIVO $2,400
Settlement automation

Monthly settlement
handled automatically

When the settlement cycle comes around, KONIVO automatically calculates the deductions and remits the net profit to your account. Email notifications immediately inform you of settlement completion and any anomalies.

  • Automatic settlement calculation and remittance once a month
  • Email alerts for settlement completion and anomaly detection
  • Multi-currency support (USD/KRW/EUR)
Coming Soon — to be released as SaaS
Automatic settlement processing
June 2025 · in progress
Total channel revenue $94,280
Total deductions −$31,440
Your net profit $62,840
Scheduled remittance date 2025. 07. 10
Settlement complete
$53,800 has been remitted to your account.
Profit analysis channel performance in numbers

See in the data which channel generates the highest net profit and which deduction items erode it.

Learn more
Automatic settlement statements instant PDF download

A settlement statement is generated automatically every month. You can instantly download a PDF that includes the breakdown by channel and by line item.

Learn more
Anomaly detection alerts nothing slips through

If a deduction item increases abnormally versus the previous month, we send an email alert immediately so you can review it.

Learn more

SoR · Brand Control

What you decide vs.
what KONIVO executes

Even though sales are made under KONIVO's name, final authority over brand, pricing, and strategy rests with you. We clearly separate which items you approve and which items KONIVO executes independently.

Your decision · approval
Final authority held by the brand
  • ◆Price setting: list price, discounted price, and promotional price can all be changed only after your written approval.
  • ◆Listing / delisting products: you decide which SKUs are listed on which channels.
  • ◆Brand content: product images, copy, and store design follow your brand guidelines.
  • ◆Advertising budget limits: you set the monthly advertising spend cap per channel in advance.
  • ◆Promotion participation: you decide whether to join platform events such as Coupang Wow Deals and Naver promotions.
  • ◆CS policy standards: you define the refund window, exchange conditions, and defective-goods handling standards.
  • ◆Channel priorities: you approve which channels to focus on and whether to enter new channels.
  • ◆Inventory disposition: at contract termination or upon your request, you direct whether inventory is recovered, disposed of, or returned.
Every price, content, and budget change must be preceded by your written (email) approval. KONIVO does not make changes on its own.
KONIVO independent execution
The operational areas you delegate
  • ◆Platform listing / upload: we list your approved products and content on the channels and keep them up to date.
  • ◆Order processing / shipping instructions: after an order is received, we issue 3PL outbound instructions and track delivery status in real time.
  • ◆First-line Korean CS: within the scope of your CS policy, native speakers respond directly to inquiries and complaints.
  • ◆Review monitoring: we routinely monitor negative reviews and rating issues and share draft responses with you.
  • ◆Advertising operations: within your approved budget cap, we independently manage bidding and creative optimization.
  • ◆Inventory status reporting: we monitor inventory by channel in real time and notify you proactively when a shortage is forecast.
  • ◆VAT / settlement processing: KONIVO directly handles VAT filing and payment, monthly settlement statement issuance, and overseas remittance.
  • ◆Platform policy response: we immediately apply channel policy changes and listing requirement updates.
KONIVO is the operating agent for your brand. It holds no decision-making authority, and all execution takes place only within the scope of your policies and approvals.

Structure Comparison

The difference between a typical distributor and KONIVO

We have summarized the key differences between a conventional local distributor / agency contract and KONIVO's IoR/SoR structure.

Item Typical local distributor KONIVO IoR/SoR
Brand pricing authorityHeld by the distributorHeld by you
Customer data ownershipHeld by the distributorHeld by you
Transfer after contract terminationNegotiation requiredGuaranteed and stated in the contract
Settlement transparencyLow (based on wholesale price)Disclosed by deduction line item
Whether entity setup is requiredRequires negotiation with the distributorNot required
VAT filingHandled by the distributor (opaque)Under KONIVO's name, with details disclosed
Store account ownershipIn the distributor's name (hard to transfer)In KONIVO's name → transfer guaranteed

Frequently Asked Questions

Questions about IoR / SoR

If sales are made under your name, can't you change prices at will?
No. The contract explicitly states that any price change requires your written approval. KONIVO cannot adjust prices at its discretion outside your guidelines. The same standard applies to promotions and discounts.
The importer and seller are under KONIVO's name — how do consumers actually perceive it?
The store's appearance, brand name, product images, and descriptions are presented as your brand. The legal importer and seller is KONIVO, but the brand identity the consumer experiences is your brand. On some platforms the seller's corporate name may be displayed, but the brand name and store name can use your naming.
Who handles MFDS and KC certifications?
Obtaining certifications and the associated cost are borne by you. However, KONIVO provides the list of required certifications by category, a process guide, and introductions to accredited agencies. Products in a category cannot be imported or sold without the certification, so this must be confirmed in advance.
What happens if you set up your own entity during the contract?
If you establish your own entity (a Plan C branch or a Plan D entity) while KONIVO is operating, we run a transition roadmap together to transfer the existing store accounts, customer data, and operating assets to your entity. This transition follows the transfer procedure stated in the contract.
How is settlement carried out?
Each month we provide a settlement statement showing revenue with platform fees, logistics costs, VAT, and KONIVO's operating fee deducted line item by line item. The net profit is then remitted to the overseas account you designate. All deduction items are stated in advance in the contract.
Can we ship on DAP or EXW terms instead of DDP?
We generally recommend DDP (Delivered Duty Paid — delivered with customs duty and freight included). When you ship DDP, KONIVO handles all customs clearance and logistics after arrival in Korea, making it the simplest structure. For DAP (delivered without customs duty) or EXW (ex works), prior coordination with your logistics partner is required, and the cost settlement method can become somewhat more complex. During the consultation we review the terms that fit your logistics situation together.
What happens if customs clearance is rejected?
Customs rejection mainly arises from four causes: ① missing mandatory certification, ② label mismatch, ③ prohibited or restricted items, ④ documentation errors. KONIVO prevents this as much as possible at the advance certification check step before shipment. If a customs rejection does occur, we notify you immediately and support cause analysis and either re-filing or return handling. However, additional costs arising from missing certification or documentation errors on your side (bonded storage fees, return shipping fees, etc.) are borne by you.
If certification takes a long time, does that delay the start of sales?
Yes — without the mandatory certification, that product cannot be imported or sold. For example, KC certification for electronics typically takes 4–8 weeks, and a food import declaration takes 1–2 weeks. During this period it is also possible to launch other products that need no certification first, then add the product once its certification is complete. During the consultation KONIVO builds a certification roadmap by category together with you.

Start your Korea market entry with the IoR/SoR structure

We propose a concrete structure tailored to your category and target channels in writing. Delivered as a review document only, with no sales calls.

Book a free consultation →