South Korea ranks as Australia’s fourth-largest trading partner. AU$67 billion worth of goods crosses between the two countries annually – Korean vehicles, electronics, and refined petroleum coming into Australia, while Australian coal, iron ore, and beef head to Korea.

The Korea-Australia Free Trade Agreement came into force in December 2014. It celebrated its 10-year anniversary in December 2024. Now, 99% of Australian goods entering Korea enjoy duty-free or preferential access. Trade has grown substantially since the agreement hit.

Most businesses on this route handle both imports and exports. Korea needs Australian resources. Australia buys Korean manufactured goods. TSL has managed this route for over 25 years, both directions.

Here’s what you need to know about freight, customs, and making the most of KAFTA benefits.

Why Businesses Import from South Korea

Korean manufacturing competes globally. Electronics, vehicles, machinery – Korean products offer quality at competitive prices. With KAFTA eliminating or reducing most duties, the economics work well for Australian importers.

KAFTA Changed the Economics

The Korea-Australia Free Trade Agreement came into force on 12 December 2014. Duties on most products vanished immediately. Some phased out progressively. By now, 99% of Australian goods entering Korea get duty-free or preferential treatment. Korea’s tariffs on Australian goods have dropped similarly.

Ten years on, the results are clear. Trade has grown significantly. Investment flows both ways. The agreement works.

You still pay GST at 10% on Australian imports. But zero or reduced duty on the Korean side for Australian exports, and duty savings on imports from Korea, changes the numbers considerably.

What Gets Imported

Refined petroleum products lead Korean exports to Australia at US$9.50 billion in 2024. Korean refineries process crude oil and export refined products including to Australia. That’s the single largest category by value.

Vehicles come next at US$3.67 billion. Hyundai and Kia have built strong Australian market presence. Korean cars offer value and quality. Australian buyers know the brands. Parts and accessories follow the vehicle sales.

Electrical and electronic equipment totals US$622 million. From consumer electronics to industrial electronics, Korean manufacturing serves Australian markets. Samsung and LG products are household names in Australia.

Machinery and boilers bring US$487 million. Industrial equipment, manufacturing systems, construction machinery – Korean manufacturers produce across categories.

Plastics at US$251 million, plus various other manufactured goods, complete the main import categories.

Sea Freight: The Primary Mode for Korea-Australia Trade

Ocean freight handles most cargo between Korea and Australia. The distance is manageable – shorter than routes from Europe or the USA.

Full Container Load (FCL)

When you book FCL, you’re hiring an entire container. Your goods travel alone. Standard containers come in 20-foot and 40-foot sizes, with 40-foot high cube versions for lighter, bulkier cargo.

FCL makes economic sense when you’re shipping enough volume to justify the container space. We can calculate the crossover point for your specific cargo.

Rates fluctuate with demand, fuel costs, and seasonal patterns. The period before Korean holidays – Lunar New Year (similar timing to Chinese New Year) and Chuseok in autumn – sometimes sees higher volumes as businesses move goods before shutdowns.

Less than Container Load (LCL)

LCL means your cargo shares space with other shipments. Your goods get consolidated at the Korean port, shipped with other cargo, then separated at the Australian destination.

This works for smaller shipments, or when you’re testing products before committing to full containers. The trade-off is extra handling time at both ends, plus slightly higher damage risk.

Key Ports on the Korea-Australia Route

Busan dominates Korean container traffic. It’s Korea’s largest port, sitting on the southeast coast. Most Australia-bound cargo ships from Busan. Multiple shipping lines offer weekly services to Australia.

Incheon, on the west coast near Seoul, handles solid volumes too. It’s particularly useful for cargo from the Seoul metropolitan area.

Gwangyang serves Korea’s southern industrial regions.

Transit time from Korean ports to eastern Australian ports typically runs 10 to 16 days. That’s faster than most other international routes Australian importers deal with.

In Australia, most Korean cargo arrives through Port of Melbourne, Port Botany in Sydney, or Port of Brisbane. Fremantle takes some western-bound cargo.

Air Freight from South Korea

Air freight costs more. But Korea-Australia is a short air route, and for certain cargo types, the premium makes sense.

Time-sensitive shipments – urgent automotive parts for dealerships, electronics components for manufacturing, samples for product launches – need air freight. Transit drops to 2 to 4 days.

High-value, low-weight items often justify air freight economics. Electronics components, specialized machinery parts, pharmaceutical products commonly fly.

Air freight pricing is based on actual weight or dimensional weight, whichever is higher. Bulky but light items cost more than you might expect because of cargo space.

Incheon International Airport serves as Korea’s main air cargo hub, with direct flights to Sydney, Melbourne, and Brisbane.

Understanding Shipping Costs

The initial freight quote rarely reflects your complete landed cost. Understanding all components helps with accurate budgeting.

Several factors drive freight rates. Weight and volume are primary – you’re charged on whichever works out higher. Hazardous goods or special-handling items attract surcharges. Timing matters – peak seasons see higher rates.

Beyond base freight, expect charges at origin in Korea (collection, export clearance, port handling, documentation) and destination in Australia (import clearance, inspections where required, port handling, delivery). Fuel surcharges and currency adjustments are standard.

Port-to-port quotes look cheaper than door-to-door quotes, but you’re arranging and paying for collection and delivery yourself. We provide full door-to-door pricing so you know your true landed cost.

Customs Clearance and KAFTA Benefits

KAFTA eliminated or reduced duties on nearly all goods. But the documentation needs to be right.

Claiming KAFTA Duty Benefits

To claim preferential duty rates under KAFTA, three things must align.

First, your goods must genuinely originate in South Korea. Most products manufactured in Korea qualify. Your Korean supplier can confirm origin status.

Second, you need valid origin documentation. Under KAFTA, specific certificate requirements apply. Your supplier arranges this, but they need to understand KAFTA procedures.

Third, your customs entry must correctly declare the KAFTA preference. Our customs brokers handle this part, ensuring you claim all duty savings you’re entitled to.

Many importers pay full duties on goods that qualify for reduced or zero rates under KAFTA. Don’t make that mistake.

Australian Border Force Requirements

Every commercial import requires declaration to the Australian Border Force through the Integrated Cargo System before arrival. You’ll need commercial invoice, packing list, and bill of lading or airway bill. For KAFTA benefits, add the Certificate of Origin.

Depending on products, additional permits or certificates may be required. Our customs team advises on specific requirements.

Biosecurity Requirements

The Department of Agriculture, Fisheries and Forestry enforces strict biosecurity controls. BICON specifies requirements for your particular goods. Check it before shipping.

Wooden packaging needs treatment certificates. Food products require permits. Standard biosecurity rules apply.

GST and Duties

GST applies at 10% on imports. Even if your goods enter duty-free under KAFTA, you still pay GST.

For goods not covered by KAFTA, standard duties apply based on HS code classification.

Exporting from Australia to South Korea

Korea imports massive volumes from Australia. Resources particularly.

What Australia Exports to Korea

Coal leads at US$6.97 billion in 2024. Korean power generation and industry runs partly on Australian coal.

Iron ore comes next at US$6.55 billion. Korean steel mills need Australian iron ore.

Beef totals US$1.64 billion. Korean consumers value Australian beef. Under KAFTA, the beef tariff is progressively reducing – full elimination comes in 2028.

Precious stones and metals hit US$1.61 billion. Aluminum exports total US$1.03 billion.

Wool, wheat, and various agricultural products complete the export mix.

Export Documentation and Korean Requirements

Exporting to Korea means meeting Korean customs and food safety requirements. Beef exports need health certificates from Australian authorities. Proper certification is essential.

Your Korean buyer or their customs broker handles import clearance. But getting your export documentation right avoids delays.

TSL works with partners across Korea to coordinate delivery to your buyers.

How TSL Manages Korea-Australia Shipments

We handle logistics both directions.

For imports, our Korean partner network collects your cargo, handles export documentation, and books optimal shipping. On the Australian side, our customs brokers prepare import entries, ensure KAFTA benefits are claimed, and arrange delivery.

For exports, we collect from your Australian location, handle documentation and clearance, book freight, and coordinate with our Korea partners for delivery.

When issues arise, we sort them. We’ve managed this route for over 25 years.

You get real-time tracking. When you call, you speak to someone who knows your shipment.

What We Need to Quote Your Shipment

To provide an accurate quote, we need: what you’re shipping (product description and HS codes if available), pickup and delivery locations, and approximate weight and volume.

We’ll provide a full door-to-door quote covering freight, customs clearance, and delivery.

If you’re not sure about HS codes, KAFTA eligibility, or biosecurity requirements, we can guide you.

Get in Touch

Importing from South Korea? Exporting Australian products? Either way, talk to us.

Contact TSL Australia:
Phone: 03 9533 8886
Request a quote

We’ll respond within 24 hours with a full quote for your shipment.