Verifying a Korean supplier before you pay a deposit

Most losses in cross-border trade do not come from elaborate fraud. They come from paying a business that had already closed, or wiring money to an account that was never the supplier’s. Both are cheap to guard against.

1. Check the number is real before anything else

A Korean business registration number has a check digit, so an invalid number can be detected instantly without contacting anyone. Do this first — there is no point pursuing further checks on a number that cannot exist.

2. Confirm the business is currently trading

Registration status tells you whether the business is active, suspended or closed today. This is the check most often skipped, because a certificate was seen at some earlier point and treated as settled. Status changes silently — see 휴업 and 폐업 explained.

3. Verify the certificate’s details together

If you have been sent a 사업자등록증, check the number, opening date and representative’s name as a set. This confirms the three belong to the same registered business, which a number alone cannot.

4. Establish the VAT position before agreeing price

Find out whether the supplier can issue a 세금계산서. If they cannot, you are not getting reclaimable input VAT, and that should be reflected in the price rather than discovered during your next filing.

5. Confirm banking details out of band

6. Re-check before large payments

For a significant deposit or a first order, repeat the status check on the day you pay rather than relying on onboarding checks from months earlier. It takes seconds and closes the only window that matters.

What none of this covers

These checks establish that a business exists, is trading, and is who it claims to be. They say nothing about whether it can deliver, whether it is solvent, or whether its product meets your specification. Registration is an administrative fact, not a recommendation — trade references and sample orders remain the way to assess capability.