SEOUL, September 02 (AJP) - South Korean online retailers are rushing to adapt after the United States eliminated a duty-free exemption for packages under $800, a move that threatens to raise costs and dampen demand in one of their most important overseas markets.
Beginning Aug. 29, American consumers ordering from Korean platforms face a 15 percent tariff on purchases that had previously entered the country without customs duties.
The policy shift, announced by the Trump administration, has rattled Korea’s cross-border e-commerce sector, which relies heavily on U.S. shoppers for sales of fashion and beauty products.
The change affects a significant slice of business.
In the second quarter, Korean companies’ direct online sales abroad totaled 738.8 billion won, or about $530 million, according to Statistics Korea. The United States accounted for 138.2 billion won, or $99 million — nearly a fifth of the total — making it the third-largest destination after China and Japan.
To soften the blow, retailers are retooling their systems. Musinsa, a popular fashion marketplace, said it will now include U.S. tariffs in the final checkout price rather than charging customers separately on delivery, while also warning of potential customs delays.
Beauty company CJ Olive Young has adopted a similar approach, automatically applying a 15 percent duty at checkout.
Other companies are placing the burden directly on customers. Amorepacific said U.S. buyers will be billed not only a 15 percent tariff but also an $18.30 clearance fee, collected by DHL on delivery.
For Korean sellers, the worry is whether higher costs will blunt the enthusiasm of U.S. consumers for K-beauty creams, trendy streetwear and other cultural exports that have powered sales overseas.
“We’re keeping a close eye on how this develops,” one industry official said. “Discounts and promotions may be the only way to keep American customers coming back.”
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