[Financial News] Since the 29th of last month, the United States has abolished the duty-free benefit for small parcels under $800 (about 1.11 million won), and the price burden for American consumers seeking Korean products such as K-beauty and fashion is becoming a reality. As a 15% tariff is automatically imposed when American consumers make reverse direct purchases (overseas consumers directly purchasing Korean products online), there are concerns that it may adversely affect the export of rapidly growing Korean Wave products. The related industry is responding by strengthening discounts and promotions to reduce the price increase burden. According to the distribution industry on the 2nd, Musinsa Global has changed its system to include the tariff burden of American reverse direct purchase customers implemented at the end of last month in the final payment amount, so that it is processed at the payment stage without a separate payment procedure upon receipt of the product. In addition, as the customs clearance review by US Customs has been strengthened, some orders may experience delivery delays, so local consumers are advised to allow ample time for delivery when ordering. CJ Olive Young also announced that it would reflect a 15% tariff on US customer payments in the same way through its global store. Kurly is also applying a plan to include tariffs at the time of payment in its 'Kurly USA' service, which boasts delivery within 48 hours across the United States. A Kurly representative said, "Even before the imposition of tariffs, there were many cases where K-products were purchased at several times the domestic selling price," and "demand is expected to remain steady as it is ahead in quality and trends." Gmarket Global Shop is mainly operated in Hong Kong, Taiwan, and Macau rather than the United States, so the impact of this policy change is limited. However, there are concerns in the distribution industry that the imposition of tariffs on small parcels may weaken price competitiveness and could dampen the growth of reverse direct purchases in the US market in the long term. In the second quarter of this year, the amount of online overseas direct sales (reverse direct purchase) was 738.8 billion won, an increase of 7.5% compared to the same period last year, with the United States accounting for 138.2 billion won (19%), making it the third-largest market after China and Japan. The industry believes that the tariff burden directly affects the major market of the United States, which could have a significant impact on growth, but they are closely monitoring the situation as the policy is in its early stages. Therefore, K-beauty companies are quickly responding by expanding promotions and discount benefits to alleviate consumer price burdens. A Musinsa representative said, "With the imposition of a 15% tariff, the price burden on consumers may inevitably increase, so we plan to prepare various promotions and discount benefits," and "although the policy has not been in place for long, and the immediate response of the consumer market is not yet clear, we will closely monitor the situation to minimize consumer attrition." Olive Young also stated, "As additional barriers such as customs procedures and tariff payments have arisen, we will respond by strengthening promotions and differentiating products." The food industry has shown no significant impact, as fresh food quarantine procedures are strict and shipping costs for processed foods such as ramen may increase during reverse direct purchases. A food company representative said, "The impact of reverse direct purchases due to tariffs affects distribution companies and does not significantly impact manufacturers." A ramen industry representative also explained, "There are hardly any cases of reverse direct purchasing ramen overseas due to shipping costs." Some in the industry view the imposition of tariffs as a short-term variable. An industry representative predicted, "It is true that the perceived burden on North American consumers has increased, but it is not enough to shake the competitiveness of K-beauty and K-food," and "even if there is an adjustment phase, it is unlikely to last long." clean@fnnews.com Lee Jeong-hwa, Jeong Sang-hee, Lee Hwan-joo Reporter