Importing from South Korea 2026: KORUS FTA Rates & Duty Savings

South Korea is one of the best-positioned sourcing countries for US importers right now. Under the KORUS FTA, roughly 95% of Korean goods enter duty-free on the MFN base rate — and unlike Chinese imports, Korean products face zero Section 301 tariffs.

The catch: Section 122 still applies. That's 15% on top of whatever your KORUS rate is. And if you're importing steel, aluminum, or copper, Section 232 tariffs (50% or 25%) stack on top of that.

For most consumer goods, electronics, and auto parts, your total duty from South Korea lands between 15% and 20% — compared to 40–55% from China for the same products. That gap is why Korean imports have been growing in categories where China once dominated.

Calculate your exact rate: Enter your HTS code in our calculator to see KORUS preferential rates plus all surcharges.

By VatCheck Research Team. Data: USITC Harmonized Tariff Schedule, KORUS FTA text, CBP trade agreement guidance, Census Bureau trade data, Federal Register.

US-South Korea Trade: The Numbers

South Korea is the United States' 6th largest source of goods imports. The trade relationship is substantial and growing:

$115.6 billion in total bilateral goods trade (2025)
Key Korean exports to US: semiconductors, passenger vehicles, auto parts, display panels, industrial machinery, K-beauty cosmetics, batteries
Duty collected on Korean imports: Section 232 tariffs on steel and aluminum remain the primary revenue source — KORUS eliminates most other duties

The KORUS FTA has been in force since March 15, 2012. Over the agreement's first decade, bilateral trade grew 40%, and tariffs on approximately 95% of bilateral trade in consumer and industrial products were eliminated. Korea is the second-largest US FTA partner by trade value, behind only Mexico (USMCA).

KORUS FTA: Your Biggest Cost Advantage

The US-Korea Free Trade Agreement is one of the most comprehensive FTAs the United States has. Here's what it actually does for importers:

What KORUS Covers

Most manufactured goods: 0% tariff rate
Electronics and semiconductors: 0% tariff rate (KORUS), though Section 232 may apply to some semiconductor categories
Automotive parts: 0% for most components (vehicles themselves have separate treatment)
Textiles and apparel: 0% for qualifying goods meeting yarn-forward rules of origin
Agricultural products: Reduced or eliminated tariffs with some exceptions (rice remains protected)
Cosmetics and skincare: 0% tariff rate — K-beauty products enter duty-free

What KORUS Doesn't Cover

The FTA eliminates MFN base tariffs. It does not override:

Section 122 surcharge (15%) — applies to all Korean imports unless the product falls in the 1,655 exempt HTS entries
Section 232 tariffs — steel (50%), aluminum (50%), copper (25%) are imposed under national security authority and cannot be waived by trade agreements
Automobiles: The auto tariff situation is complicated — see below

The Auto Tariff Situation

Vehicles from South Korea have a unique history under the current tariff regime:

The original KORUS agreement reduced auto tariffs to 0% over a staging period
Section 232 auto tariffs were initially set at 15% for Korea under a side deal
On January 26, 2026, auto tariffs on Korean vehicles were raised from 15% to 25% after the South Korean legislature failed to ratify updated trade terms
Korean automakers (Hyundai, Kia) with US manufacturing plants face 0% on domestically produced vehicles

Bottom line for auto parts importers: Most KORUS-qualifying auto parts still enter at 0% MFN + 15% Section 122 = 15% total. Finished vehicles face 25% Section 232 + 15% Section 122 = 40%.

Current Tariff Rates: What Korean Imports Actually Cost

Here's the real math for Korean imports in May 2026:

Category 1: Standard Consumer Goods (KORUS-Qualifying)

| Layer | Rate | |---|---| | MFN base rate (KORUS) | 0% | | Section 122 | 15% | | Section 301 | None (Korea not targeted) | | Section 232 | N/A | | Total | 15% |

Most electronics, machinery, cosmetics, packaged food, auto parts, and consumer goods from Korea pay just 15% total. Compare that to 40–55% for the same products from China.

Category 2: Steel and Aluminum

| Layer | Rate | |---|---| | MFN base rate (KORUS) | 0% | | Section 122 | Exempt (Section 232 product) | | Section 232 | 50% | | Total | 50% |

Korean steel and aluminum face the same 50% rate as every other country except USMCA partners (25%). The KORUS FTA cannot override Section 232. See how tariff layers stack for the full calculation methodology.

Category 3: Copper and Copper Products

| Layer | Rate | |---|---| | MFN base rate (KORUS) | 0% | | Section 122 | Exempt (Section 232 product) | | Section 232 | 25% | | Total | 25% |

Category 4: Passenger Vehicles

| Layer | Rate | |---|---| | MFN base rate | 2.5% | | Section 122 | 15% | | Section 232 (auto) | 25% | | Total | 42.5% |

Worked Example: Samsung Display Panel (HTS 9013.80)

A $50,000 shipment of flat-panel displays from Samsung's Asan factory:

| Layer | Rate | Amount | |---|---|---| | MFN (KORUS) | 0% | $0 | | Section 122 | 15% | $7,500 | | Section 301 | 0% | $0 | | Total duty | 15% | $7,500 |

The same display panel from a Chinese factory would face roughly 40% total duty ($20,000). That's $12,500 in duty savings per shipment by sourcing from Korea.

Worked Example: POSCO Steel Coil (HTS 7210.49)

A $100,000 shipment of galvanized steel coil from POSCO:

| Layer | Rate | Amount | |---|---|---| | MFN (KORUS) | 0% | $0 | | Section 122 | Exempt | $0 | | Section 232 | 50% | $50,000 | | Total duty | 50% | $50,000 |

No advantage over Chinese steel here — Section 232 applies equally regardless of origin.

Top Korean Product Categories for US Importers

Semiconductors and Electronics

South Korea's semiconductor industry (Samsung, SK Hynix) is the world's second-largest. Memory chips, display panels, and electronic components enter at just 15% total under KORUS + Section 122. With China facing 50–65% on similar products (Section 301 + Section 122 + MFN), Korean electronics have a significant cost advantage.

Watch for: A potential Section 232 investigation into semiconductors could change this landscape. The existing 25% tariff on some advanced semiconductor categories (effective January 2026) is narrowly scoped for now.

Vehicles and Auto Parts

Hyundai and Kia are the 4th and 5th largest auto brands in the US by sales. While finished vehicle imports face steep tariffs (42.5%), both companies have expanded US manufacturing — Hyundai's Alabama plant and Kia's Georgia plant produce most of their US-market vehicles domestically.

Auto parts, however, remain a major import category. KORUS-qualifying parts enter at just 15% — a major advantage for supply chain managers sourcing components.

K-Beauty Cosmetics and Skincare

The K-beauty market in the US has grown 15% annually since 2020. Korean skincare products classified under HTS Chapter 33 enter at 0% KORUS + 15% Section 122 = 15% total. No Section 301, no Section 232.

Major brands like Innisfree, Laneige, Sulwhasoo, and COSRX benefit from KORUS duty-free treatment. For Amazon FBA sellers sourcing Korean beauty products, the 15% total duty is one of the lowest available for any cosmetics origin.

Food Products

Korean food exports (kimchi, instant noodles, soju, seaweed snacks) qualify for KORUS preferential rates. Most processed food enters at 0% KORUS + 15% Section 122 = 15% total. FDA registration and food facility requirements apply regardless of tariff status.

Batteries and Energy Storage

Korean battery manufacturers (LG Energy Solution, Samsung SDI, SK Innovation) have invested heavily in US production. Batteries manufactured in Korea face Section 122 (15%) but no Section 301 tariffs — compared to 25% Section 301 + 15% Section 122 = 43.4% for Chinese batteries. This cost gap has accelerated Korean battery investment in the US.

How to Use the KORUS FTA

Getting the preferential rate isn't automatic. You need to meet rules of origin and provide proper documentation.

Step 1: Verify Rules of Origin

Your product must qualify as Korean-origin under KORUS rules. The three main tests:

Wholly obtained: Products entirely grown, harvested, or extracted in Korea (agricultural, mineral). Straightforward.

Tariff shift: The product underwent a change in tariff classification (at the chapter, heading, or subheading level) in Korea. This is the most common test for manufactured goods. Example: raw materials from Japan classified under HTS 3901 are transformed into plastic packaging classified under HTS 3923 in Korea — the tariff shift qualifies.

Regional value content (RVC): The product contains a minimum percentage of Korean (or US) value. Two methods:

Build-up method: Korean content ÷ adjusted value ≥ 35%
Build-down method: (Adjusted value – non-originating materials) ÷ adjusted value ≥ 45%

For automobiles, the RVC requirement is 35% under the build-up method. For textiles, the "yarn-forward" rule applies — yarn must be formed in Korea or the US.

Step 2: Obtain a Certificate of Origin

Unlike USMCA (which has a formal CBP certification), KORUS uses an importer self-certification model. The importer makes the origin claim on or before the entry summary.

Required information:

Importer name, address, phone, email
Exporter and producer names and addresses (if known)
Description of goods and HTS tariff classification number
Statement that the goods qualify as originating under KORUS
Origin criterion met (wholly obtained, tariff shift, or RVC)
The blanket period if applicable (up to 12 months)

Key difference from USMCA: The exporter doesn't need to provide a certificate. The importer self-certifies. But you need records to support the claim if CBP requests verification.

Step 3: Claim Preferential Treatment on Entry

Your customs broker claims the KORUS preferential rate on the entry summary (CBP Form 7501). The "Special" column in the HTS schedule shows the KORUS rate — look for the "KR" indicator.

Post-importation claims: If you forgot to claim KORUS on original entry, you can file a Post-Summary Correction within 300 days to retroactively apply the preferential rate and get a duty refund.

Documentation Checklist

Before shipping from Korea, make sure you have:

[ ] Commercial invoice with full product description
[ ] Packing list with quantities and weights
[ ] Bill of lading (ocean) or airway bill (air)
[ ] KORUS origin certification (importer self-certification)
[ ] Records supporting origin claim (supplier declarations, production records)
[ ] FDA registration if food/cosmetics/medical devices
[ ] FCC compliance documentation if electronic devices
[ ] CPSC certificates if consumer products (toys, children's items)
[ ] Customs bond (required for commercial imports over $2,500)

Korea vs. China: The Sourcing Math

For importers considering Korea as a China alternative, here's the real comparison:

| Product Example | China Total Duty | Korea Total Duty | Savings per $100K | |---|---|---|---| | Consumer electronics | 40% | 15% | $25,000 | | Auto parts | 43% | 15% | $28,000 | | Cosmetics/skincare | 39% | 15% | $24,000 | | Furniture | 40% | 15% | $25,000 | | Steel | 78% | 50% | $28,000 | | Apparel | 47% | 15% | $32,000 |

The duty savings are substantial — $24,000 to $32,000 per $100,000 in merchandise value. For a mid-size importer doing $5M annually, switching from Chinese to Korean suppliers could save $1.2–1.6 million in duties per year.

But consider: Korean manufacturing costs are typically higher than Chinese costs. The duty savings must outweigh any increase in product cost. For commoditized products where labor cost matters most, the math may not work. For high-value goods like electronics, auto parts, and cosmetics, Korea is often the better deal even at higher factory prices.

What Happens When Section 122 Expires July 24?

If Section 122 expires without replacement (see our full analysis):

Standard Korean goods drop from 15% to 0% total duty (KORUS fully restored)
Steel/aluminum stay at 50% (Section 232 is independent of Section 122)
If Section 301 country-specific tariffs replace Section 122: Korea's rate depends on the USTR's determination. Korea was included in the March 2026 Section 301 overcapacity investigation targeting 16 economies — so a new Section 301 tariff is possible but would likely be lower than China's rate.

For Korean importers, the best-case scenario is a gap period between July 24 (Section 122 expiration) and any replacement tariffs. During that gap, KORUS goods would enter truly duty-free.

If you paid IEEPA tariffs on Korean imports during April 2025, you may be eligible for refunds through the CAPE portal. Check your eligibility.

Frequently Asked Questions

Are Korean imports duty-free under KORUS?

For the MFN base rate, yes — about 95% of Korean products qualify for 0% duty under KORUS. But Section 122 still adds 15%, and Section 232 applies to metals. So "duty-free" in practice means 15% for most goods as of May 2026. If Section 122 expires July 24, qualifying Korean goods drop to genuine 0%.

How do I get a KORUS certificate of origin?

Unlike USMCA, KORUS uses importer self-certification. You (the importer) certify that the goods qualify under KORUS rules of origin. No formal certificate from the Korean exporter is required, though you should maintain records supporting your claim. Include the certification with your entry summary.

What tariffs apply to Korean electronics?

Most Korean electronics qualify for 0% KORUS + 15% Section 122 = 15% total. There's no Section 301 on Korean goods (it only targets China). Some advanced semiconductor categories may face 25% Section 232 tariffs imposed January 2026. Check your specific HTS code.

Is South Korea subject to Section 301 tariffs?

Not currently. Section 301 tariffs were imposed specifically against China. However, South Korea was named in the March 2026 Section 301 overcapacity investigation covering 16 economies. If the investigation results in tariff actions, Korea could face new Section 301 tariffs — though at lower rates than China.

How does Korea compare to other sourcing countries?

Korea's 15% total duty (KORUS + Section 122) is lower than China (40–55%), similar to Vietnam and India (15–30% depending on product), and higher than Mexico (0–15% under USMCA). Korea's advantage is in high-value manufactured goods like electronics, auto parts, and cosmetics where both quality and tariff savings matter.

Can I get a refund if I didn't claim KORUS on my original entry?

Yes. File a Post-Summary Correction (PSC) within 300 days of the original entry summary. CBP will recalculate duties using the KORUS preferential rate and issue a refund for the difference. Your customs broker can handle this.

Last updated: May 20, 2026. Tariff rates subject to change — Section 122 expires July 24, 2026, and Section 301 overcapacity investigation could affect Korean imports. For current rates on any HTS code, use our calculator.

Importing from South Korea in 2026: KORUS FTA Rates, Duty Savings & Compliance