Korean Cosmetics Export Glossary
Plain-English definitions of the ingredient, formulation, regulatory, packaging and trade terms you meet when sourcing Korean cosmetics — written for overseas B2B buyers.
A
Trade & logistics
Arbitration clause
Names the forum and rules for resolving a dispute — for Korean export contracts usually the KCAB in Seoul or the SIAC in Singapore.
Trade & logistics
Artwork approval cycle
The rounds of proofing between the buyer, the regulatory reviewer and the printer before packaging goes to press.
Trade & logistics
AWB (Air Waybill)
The air-freight equivalent of a bill of lading.
B
Trade & logistics
B/L (Bill of Lading)
The ocean carrier's document that acts as receipt, contract of carriage and — for an original negotiable B/L — title to the goods.
Trade & logistics
Bank guarantee / L/G
A bank undertaking to pay if one party defaults, sometimes required from a new distributor in place of a large deposit.
Trade & logistics
Beauty trade shows
The sourcing calendar runs on Cosmoprof (Bologna, Hong Kong, Las Vegas), in-cosmetics, Beautyworld, and Korea's own K-Beauty Expo and Cosmo…
Trade & logistics
Bonded warehouse
A customs-supervised facility where imported goods sit before duty is paid.
C
Trade & logistics
CBM (cubic metre)
The volume measure ocean freight is priced on, calculated from carton dimensions rather than weight.
Trade & logistics
Certificate of Origin (C/O)
A document certifying where the goods were produced, issued in Korea by a chamber of commerce or by customs.
Trade & logistics
CFR (Cost and Freight)
Like CIF but without insurance: the seller pays ocean freight to the destination port, and the buyer carries both the risk and the duty to…
Trade & logistics
CIF (Cost, Insurance and Freight)
The seller pays ocean freight and minimum marine insurance to the named destination port, but risk still transfers to the buyer once the go…
Trade & logistics
CIP (Carriage and Insurance Paid To)
The seller pays carriage and insurance to a named destination, usable for any transport mode.
Trade & logistics
Commercial invoice
The final invoice issued at shipment and used by customs on both sides to assess duty and value.
Trade & logistics
Consignment stock
Stock held by the retailer or distributor but still owned by the supplier, paid for only as it sells.
Trade & logistics
Container types (20GP / 40HQ)
The standard dry containers: a 20ft general purpose holds roughly 28 CBM in practice and a 40ft high cube roughly 68 CBM.
Trade & logistics
Cross-border e-commerce (CBEC)
Selling directly to overseas consumers from stock held outside their country, or from a bonded warehouse.
Trade & logistics
Customs clearance
The import formalities of declaring goods, paying duty and tax and satisfying any product-specific controls before release.
D
Trade & logistics
Dangerous goods (DG)
Cargo classified as hazardous for transport — for cosmetics that mainly means aerosols and high-alcohol products.
Trade & logistics
DAP (Delivered At Place)
The seller delivers to a named destination ready for unloading, but import duty, tax and clearance remain the buyer's responsibility.
Trade & logistics
DDP (Delivered Duty Paid)
The seller delivers to the buyer's address with all export and import duties, taxes and clearance paid — the maximum obligation on the sell…
Trade & logistics
Demurrage and detention
Penalty charges for leaving a container at the terminal beyond the free days (demurrage) or keeping the carrier's equipment too long after…
Trade & logistics
Distribution agreement
The contract governing territory, channel, exclusivity, minimum volumes, pricing policy, trademark use, marketing contribution and terminat…
E
Trade & logistics
Exclusive distribution
A contract granting one buyer the sole right to sell a brand in a defined territory and channel.
Trade & logistics
EXW (Ex Works)
The buyer collects the goods at the seller's factory or warehouse and takes on every subsequent cost, including Korean export clearance.
F
Trade & logistics
FCA (Free Carrier)
The seller delivers the goods, cleared for export, to a carrier the buyer nominates at a named place.
Trade & logistics
FCL (Full Container Load)
Ocean freight where you book a whole 20ft or 40ft container.
Trade & logistics
FOB (Free On Board)
The seller delivers the goods on board the vessel at the named port of shipment and clears them for export; from that point freight, insura…
Trade & logistics
Force majeure
A contract clause excusing performance during events outside either party's control.
Trade & logistics
Freight forwarder
The agent who books carriage, consolidates cargo, prepares transport documents and coordinates customs on your behalf.
Trade & logistics
FX exposure
Korean exports are usually invoiced in USD, so both sides carry currency risk against KRW and against the buyer's local currency.
H
I
L
Trade & logistics
L/C (Letter of Credit)
A bank undertaking to pay the seller once compliant shipping documents are presented, which protects both sides on larger orders.
Trade & logistics
Landed cost
The true per-unit cost at your warehouse: ex-works price plus freight, insurance, duty, tax, clearance fees and inland delivery.
Trade & logistics
Late delivery penalty
A pre-agreed deduction when the supplier misses the shipment window, usually a percentage per week up to a cap.
Trade & logistics
LCL (Less than Container Load)
Ocean freight where your cargo shares a container with other shippers, priced by cubic metre.
Trade & logistics
Lead time
The elapsed time from confirmed order to goods ready for shipment.
Trade & logistics
LOI (Letter of Intent)
A non-binding statement of intended volumes and terms, used to open serious negotiation or to secure exclusivity discussions before a full…
M
Trade & logistics
Made in Korea labelling
The mandatory origin statement on pack. It follows where the product was substantially manufactured, not where the brand is registered, so…
Trade & logistics
Marine cargo insurance
Cover for loss or damage in transit, usually written on Institute Cargo Clauses A (all risks), B or C.
Trade & logistics
MOQ (Minimum Order Quantity)
The smallest quantity a supplier will produce or ship in a single order.
Trade & logistics
MSQ (Minimum Shipment Quantity)
The smallest quantity that can move in one consignment, which is not always the same as the MOQ.
N
Trade & logistics
NDA (Non-Disclosure Agreement)
A mutual confidentiality agreement, normally signed before a manufacturer shares a full formulation, cost breakdown or clinical data.
Trade & logistics
Net terms / open account
Payment due a set number of days after invoice or delivery — net 30, net 60 — rather than before shipment.
O
P
Trade & logistics
Packing list
A shipment document listing carton contents, carton counts, net and gross weights and dimensions.
Trade & logistics
Pallet and palletisation
Cartons stacked and stretch-wrapped onto a standard pallet for handling.
Trade & logistics
Parallel import (grey market)
Genuine product imported outside the brand's authorised channel, usually bought cheaply in one market and resold in another.
Trade & logistics
Payment terms
The agreed timing and instrument of payment, such as "30% deposit / 70% before shipment by T/T" or "L/C at sight".
Trade & logistics
PO (Purchase Order)
The buyer's binding order document referencing the agreed proforma invoice, quantities, prices, Incoterms and delivery window.
Trade & logistics
Pre-shipment inspection (PSI)
A third-party or buyer-side check of quantity, labelling, packaging and visible quality before the goods leave Korea, usually against an AQ…
Trade & logistics
Price validity
How long a quoted price stands, typically 30 to 90 days for Korean cosmetics.
Trade & logistics
Private label
A product manufactured by one company and sold under a retailer's or distributor's own brand, typically on an ODM basis.
Trade & logistics
Proforma invoice (PI)
A pre-shipment quotation in invoice form covering products, quantities, unit prices, Incoterms, payment terms and validity.
R
Trade & logistics
Rebate
A retrospective discount paid once an annual volume target is met, common in exclusive distribution deals.
Trade & logistics
Reefer container
A temperature-controlled container. Rarely needed for finished cosmetics, but worth pricing for balm, high-actives or probiotic formats cro…
Trade & logistics
Retention of title
A clause keeping legal ownership with the seller until payment clears, even after delivery.
Trade & logistics
RFQ (Request for Quotation)
A formal request asking a supplier to quote price, MOQ, lead time and terms against a defined specification.
S
Trade & logistics
Sample order
A small paid shipment — typically a few units per SKU by courier — for formulation, texture and packaging evaluation before committing to M…
Trade & logistics
Shipping mark
The printed markings on an export carton — consignee, order number, carton number, gross and net weight, origin.
Trade & logistics
Sourcing agent
A local intermediary who finds suppliers, negotiates and inspects on the buyer's behalf, paid by commission or retainer.
T
Trade & logistics
T/T (Telegraphic Transfer)
A bank-to-bank wire transfer, and the default payment method in Korean cosmetics exports.
Trade & logistics
Telex release
An instruction from the shipper's forwarder to the destination agent to release cargo without the original bill of lading, used once the se…
Trade & logistics
Tiered pricing
A price table that steps down at defined quantity breaks.
Trade & logistics
Tooling / mould cost
The one-off charge for a custom bottle, cap or compact mould, typically several thousand to tens of thousands of dollars.
Trade & logistics
Trial order
A reduced first production order used to test sell-through before scaling.
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