# Merchant of Record in South Korea

> See how South Korean SaaS companies use a Merchant of Record to manage global payments, tax compliance, and invoicing without building local entities.
- **Author**: Joshua D'Costa
- **Published**: 2025-07-07
- **Category**: Merchant of Record, Global Payments
- **URL**: https://dodopayments.com/blogs/merchant-of-record-in-southkorea

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## FAQ

### What is a Merchant of Record in South Korea?

> The checkout is the most underoptimized part of most SaaS products. Showing the right currency, the right payment method, and the right tax treatment for each customer's location is worth more than most A/B tests.
>
> \- Ayush Agarwal, Co-founder & CPTO at Dodo Payments

A Merchant of Record is the legal entity that sells to the customer, processes payments, and takes responsibility for tax and compliance obligations. For Korean software businesses, this can simplify cross-border expansion significantly.

### Do Korean SaaS companies need an MoR to sell internationally?

It depends on your internal tax and legal capacity, but many teams use an MoR to avoid setting up local compliance workflows in each country. An MoR can reduce launch time when entering multiple markets at once.

### Can an MoR handle VAT and invoicing for overseas customers?

Yes, most MoR platforms calculate the right indirect tax based on buyer location and issue compliant invoices. They also remit taxes to authorities in covered jurisdictions.

### How is a Merchant of Record different from a payment gateway?

A gateway only routes payments, while an MoR also becomes the seller of record and assumes compliance liability for transactions. This broader scope is why MoRs are often used for global SaaS sales.
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