If you want to reach customers in South Korea with your online ads, you need to know the legal requirements and best practices for this market. In this blog post, we will explain why you need a Korean Business Registration Number (BRN), what it is, how to get it, and how to use it for your Shopping ads and other online advertising campaigns.
What is a Korean Business Registration Number (BRN)?
A BRN is a unique identifier for businesses operating in South Korea. It is issued by the National Tax Service when you register your company in Korea. It consists of 10 digits and is usually formatted as XXX-XX-XXXXX.
Why do you need a BRN for online advertising in South Korea?
South Korea has strict laws and regulations that aim to protect consumers and ensure fair and transparent online commerce. Some of the relevant laws for online advertising are:
- The Act on Fair Labelling and Advertising, which regulates the content and format of advertisements, prohibits false or misleading claims, and requires disclosure of certain information.
- The Enforcement Decree of the Act on Fair Labelling and Advertising, which provides detailed rules and guidelines for online advertising, such as the size, location, duration, and frequency of ads, as well as the information that must be displayed or linked to the ads.
- The Act on Promotion of Information and Communications Network Utilization and Information Protection, which governs the collection, use, and protection of personal information on the internet, including online behavioral information for customized advertising purposes.
- The Guidelines on Online Customized Advertisements by the Korea Communications Commission, which set standards for online customized advertisements that use users' online behavioral information, such as browsing history, search keywords, or app usage.
These laws and regulations apply to both domestic and foreign businesses that target Korean customers with their online ads. To comply with these laws and regulations, you need to have a valid BRN and display it on your your website or landing page. This way, you can show that you are a legitimate business and that you respect the Korean legal system.
How to get a BRN for your business?
To get a BRN, you need to register your company in South Korea. There is no way to obtain a BRN without setting up a legal entity in Korea. There are different types of business registration in Korea, such as: Local Company, Foreign Direct Investment (FDI) Company, Branch Office and Liaison Office.
Depending on the type of business registration you choose, you will need to prepare different documents and follow different procedures. Once you register your company in Korea, you will receive a Tax Business Registration Certificate from the National Tax Service. This certificate contains your BRN, which you can use for your online advertising campaigns.
How to use your BRN for online advertising in South Korea?
If you use Google Ads for your online advertising, you can specify your BRN in the Business Information section of your Merchant Center account. Same applied to Naver Ads and/or Facebook Ads. This will allow you to show Shopping ads in South Korea. You can also use your BRN for other types of online ads, such as Search ads or Display ads.
You also need to make sure that your ads comply with other requirements for online advertising in South Korea, such as:
- Displaying the price of your products or services in Korean Won currency.
- Providing accurate and truthful information about your products or services.
- Disclosing any additional charges or fees that may apply to your products or services.
- Obtaining consent from users before collecting or using their personal information for customized advertising purposes.
- Providing an opt-out option for users who do not want to receive customized advertisements.
By following these steps, you can ensure that your online advertising campaigns in South Korea are legal and effective. You can also build trust and credibility with your potential customers and increase your chances of conversion and sales.
