KOTRA partners with Korean American chambers to help small firms break into US market

Korea's state trade promotion agency KOTRA is stepping up support for Korean small and medium-sized enterprises seeking to enter the US market by tapping a nationwide network of Korean American chambers of commerce. The initiative aims not only to help companies find new sales channels but also to address the tax, customs and legal difficulties they commonly encounter when setting up operations in the United States.

The Korea Trade-Investment Promotion Agency (KOTRA) announced Sunday that it signed a memorandum of understanding with the Korean American Chamber of Commerce USA (KACCUSA) on Thursday at its headquarters in Seocho-gu, Seoul, to support Korean small and medium-sized enterprises' entry into the US market and expand economic exchanges between the two countries.

KACCUSA, founded in 1980, is an umbrella body representing 80 regional Korean American chambers of commerce across the United States. It serves as a private-sector network for Korea-US economic exchanges, including co-organizing the World Korean Business Convention hosted by the Overseas Koreans Agency.

Under the agreement, the two organizations will use their respective networks to promote business exchange events. They will work together to help Korean small and medium-sized enterprises open new sales channels in the US market and connect companies with the professional services they need to establish a local presence.

KOTRA plans to provide market intelligence to companies looking to enter the United States. It will also work with the KACCUSA network to help firms already operating there resolve tax, customs and legal issues.

The agreement is particularly significant because it combines KOTRA's overseas organizational network with KACCUSA's private-sector reach. Market conditions, regulations and retail distribution networks vary considerably by region across the United States, making local connections essential. For small and medium-sized enterprises, ties with a Korean American business organization that knows the local landscape can help reduce the costs and missteps of an initial market entry.

Demand from Korean companies to enter the US market has been growing across a wide range of sectors — not only consumer goods but also components, food, beauty and healthcare. However, practical burdens such as logistics costs, customs procedures and finding local partners remain significant, heightening the need for on-the-ground support for smaller firms.

KOTRA said it plans to expand support by drawing on a database of US-based specialists and private-sector networks through the partnership. The agency aims to improve the prospects of Korean companies entering the US market by providing tailored local information and facilitating business matching.

"The United States is the market our companies are most focused on and, along with China, one of our two largest export markets," KOTRA President Kang Gyeong-seong said. "By working together, KOTRA and KACCUSA will help companies enter the US market more effectively and contribute to expanding Korea-US economic exchanges on that foundation."