Korean suppliers have worked with Russian businesses for years. Some buy production equipment, others order car parts, cosmetics or electronics. Once the deal is agreed, the first question is almost always the same:
"How do we make the payment so the money reaches the supplier and the paperwork holds up?"
In practice, the settlement stage raises the most questions. The counterparty has issued an invoice, the factory is waiting for a prepayment, deadlines are tight — and the buyer is still working out which documents are needed and how to structure the transfer.
Here are the key points worth thinking through before you pay.
Where payment to a Korean supplier begins
The supplier normally sends the buyer a commercial offer, after which the parties agree the terms of the deal and an invoice is issued.
Before you send the money, it is important to check:
- the recipient's bank details;
- the company name;
- the payment amount;
- the settlement currency;
- the delivery terms;
- the production or shipment schedule.
The earlier mistakes surface, the less likely they are to cause delays later.
Which documents you may need
The set of documents depends on the nature of the deal.
The most commonly used are:
- the invoice;
- the agreement or contract;
- the specification;
- annexes to the contract;
- shipping documents for the goods;
- documents confirming that the services were provided.
For recurring purchases, the paperwork is usually prepared under a single cooperation agreement.
Which currencies are normally used
Most international contracts with Korean companies are denominated in US dollars.
Settlements are also made in:
- Korean won (KRW);
- euros (EUR);
- Chinese yuan (CNY).
The specific currency is set by the contract terms and the supplier's requirements.
What usually causes problems
The most common mistake is focusing on the exchange rate and paying almost no attention to the documents.
In practice, delays tend to come from elsewhere:
- data that does not match across documents;
- errors in the bank details;
- missing documents for the deal;
- additional queries from financial institutions;
- an imprecise description of the goods or services.
Checking the documents before you pay usually saves far more time than hunting for a better exchange rate.
If you are paying for services rather than goods
Services work a little differently.
It is important to agree in advance on:
- the list of services;
- the delivery timeline;
- the price;
- how the result of the work will be confirmed.
The more precisely the subject of the deal is described, the smoother both the document check and the payment itself will be.
Should you vet the supplier
If this is your first time working together, checking the counterparty is a sensible precaution.
It is worth looking at:
- the company's registration data;
- its corporate website;
- its track record;
- its contact information;
- its bank details.
This takes very little time but helps you avoid serious risks.
How long a payment takes
There is no single timeframe.
Speed depends on:
- the settlement currency;
- the payment route;
- the banks on both sides of the deal;
- the document package;
- whether additional checks are required.
That is why payment should be arranged well ahead of time, not on the day the shipment is due.
The main thing to remember
A successful international deal starts not with the transfer of money, but with preparing the documents and checking the settlement terms.
When the structure of the deal is clear, the documents are ready in advance and the supplier has been vetted, the payment goes through far more smoothly — and you can focus on what matters: receiving the goods or the finished service on the agreed date.