Korean Used Car Proforma Invoice: Complete PI Guide (2026)

A korean used car proforma invoice (PI) is a non-binding pre-payment document issued by the Korean exporter that lists the exact vehicle (VIN, year, mileage, trim), itemized FOB price, payment terms (typically 30% deposit and 70% balance), shipping route, and a 7–14 day validity window. The PI is what international buyers use to apply for Letter of Credit, foreign-exchange approval, and import permits before wiring any deposit. It carries the exporter's company stamp and signature but, unlike the commercial invoice issued after payment, the PI has no customs or accounting effect until accepted.

For a typical $14,500 FOB Sonata, the korean used car proforma invoice shows the 30% deposit ($4,350) and 70% balance ($10,150) line-by-line, plus the SWIFT routing for the Korean exporter's KEB Hana or KB Kookmin corporate account. SH GLOBAL Co., Ltd. issues fully-fielded PIs with KITA-verified business registration numbers — browse our live Hyundai inventory or request a quotation from SH GLOBAL to receive a same-day PI you can take to your bank.

Live Hyundai inventory at SH GLOBAL — browse units to anchor your proforma invoice request

What Is a Korean Used Car Proforma Invoice?

A korean used car proforma invoice is the second formal document in the Korean export trade flow. It comes after the quotation (initial price discovery) and before the commercial invoice (the post-payment customs document attached to the Bill of Lading). The Korean term is 견적송장 (gyeonjeok-songjang), often shortened to PI in English correspondence.

Its function is dual: (a) the buyer uses it to fund the trade — L/C application, foreign exchange approval, deposit wire, marine cargo insurance binding — and (b) the exporter uses it to lock the VIN against other prospects and trigger pre-export workflows like de-registration sourcing and yard reservation. Once the buyer signs the PI and wires the deposit, it converts to an executed Sales Contract under Korean Civil Code Article 528.

For an end-to-end view of how the PI sits inside the broader buying journey, see our step-by-step buying guide — the PI typically arrives on day 1–2 after a quotation request and triggers wire transfer on day 3–5.

What a Korean PI Is Not

It's worth being precise about what the proforma invoice is not:

• Not a quotation — quotations are emailed numbers; PIs are formal documents with all 19 fields, stamp, and signature
• Not a commercial invoice — PIs do not clear customs and do not attach to the B/L; the CI does both
• Not a sales contract — until accepted, it's a unilateral exporter offer, not a bilateral contract
• Not a tax document — Korean exporters do not declare PI revenue to the National Tax Service
• Not a freight invoice — if Incoterm is FOB, the PI excludes ocean freight (those appear on a separate freight invoice from the carrier)

Confusing PI with CI is one of the most common mistakes new buyers make. We address the difference in detail in our Korean used car export invoice guide, which walks through the commercial invoice in depth.

Why You Need a PI Before Wiring a Deposit

Five concrete uses of a korean used car proforma invoice make it indispensable for international buyers:

1. L/C Application — Korean Eximbank, KEB Hana, KB Kookmin, Shinhan, Woori, and IBK all require the PI as a supporting document for Letter of Credit issuance. See our L/C payment guide for the full L/C workflow.
2. FX Approval — Central Bank of Nigeria Form M, Kazakhstan NBK FX permit, Tajikistan NBT approval, Tanzania BoT permit — all reference the PI document number and FOB amount.
3. Customs Pre-Clearance Ruling — Korea Customs Service (관세청) and many destination customs agencies issue binding import-value rulings against the PI, locking buyers' duty exposure before they wire a deposit.
4. Import Permit — Tanzania TRA, Kenya KRA Import Declaration Form, Nigeria SONCAP, Iraq COSQC — all accept the PI as the import value baseline.
5. Marine Cargo Insurance Binding — underwriters bind cover against PI line items (vehicle ID + insured value), even before the goods are loaded.

Without a PI, none of the above bank, FX, customs, or insurance workflows can start. That's why a PI is functionally the permission slip that unlocks the rest of the trade.

PI vs Commercial Invoice — Key Differences

The proforma invoice and commercial invoice are siblings — same VIN, same FOB amount, similar layout — but they serve different purposes and have very different legal weight. Mixing them up can stall a shipment for weeks.

The two documents must show identical VIN and FOB amount. If the CI doesn't match the PI, destination customs will flag the shipment for inspection and the buyer faces 5–14 days of demurrage. If the FOB has legitimately changed between PI and CI (e.g., revised after FX shift), the exporter must issue a revised PI first — never a CI that diverges from the original PI.

For more on what happens when the CI is wrong, see our commercial invoice guide.

Document Flow: Quotation → PI → Commercial Invoice

The Korean used car export trade follows a strict eight-step document flow. The PI is step 2 — the gate that unlocks payment, customs, and shipping.

Step 1 is the quotation — an emailed price-discovery exchange. Step 2 is the formal PI. Steps 3 and 7 are the deposit and balance wires; for the deposit mechanics see our advance payment guide. Step 5 (commercial invoice) only happens after the deposit is cleared, which is why the PI must be near-perfect — you cannot pre-validate the CI; you can only pre-validate the PI.

The 19 Mandatory Fields on a Korean PI

Every legitimate korean used car proforma invoice contains these 19 fields, organized into five blocks. Missing any one is a red flag — either the exporter is unregistered, or they are obscuring something, or both.

Header Block (Fields 1–4)

Exporter Block (Fields 5–8)

Consignee Block (Fields 9–11)

Vehicle Block (Fields 12–14)

Pricing & Payment Block (Fields 15–19)

For Incoterm specifics (FOB vs CIF vs CFR), see our Korean used car Incoterms guide. The Incoterm chosen on the PI determines who pays freight and insurance — a frequent source of buyer-exporter dispute.

PI Validity, Expiry, and Re-Issuance

Korean PIs typically carry 7–14 day validity. SH GLOBAL standard is 14 days for GCC buyers (Saudi, UAE, Kuwait) and 21 days for African and Central Asian buyers because FX-approval workflows in Lagos, Nairobi, Tashkent, and Almaty take longer.

What happens after expiry:

• The exporter is no longer bound to the quoted FOB price — KRW/USD swung in a 6.7% range across 2025, so prices can shift 1–3% in a fortnight
• The vehicle is no longer reserved — another buyer's funded order takes priority
• L/C banks reject PIs older than 30 days — you'd have to re-apply
• Customs pre-clearance rulings tied to the expired PI lapse

How re-issuance works: a buyer requests an extension by email before expiry. The exporter issues PI-001-R1 (revision 1) with new dates. If the FOB has changed, the new PI carries the updated price; if not, only the dates change. KITA-registered Korean exporters typically turn revisions in 4–24 hours.

Using the PI for L/C, FX, and Import Permit Applications

L/C Application

The PI is mandatory for opening a Letter of Credit. Banks require:

• Original PI signed and stamped (or color scan with bank-attested copy)
• Exporter business registration number on PI — cross-checked against KITA tradenavi (tradenavi.or.kr)
• SWIFT BIC matching the exporter's actual bank — verified on the bank's own website
• Validity window covering the L/C lead time (usually 21 days)

Korean banks that handle Korean used car export L/C: KEB Hana (most common — ~45% of trades), KB Kookmin (~20%), Shinhan (~15%), Woori, IBK Industrial Bank.

Foreign Exchange Approval (Country-Specific)

• Nigeria (CBN Form M): PI uploaded to Nigerian Trade Portal — requires CET HS code, FOB ≤ Form M ceiling. See our Africa export guide for end-to-end Form M procedure.
• Tanzania (BoT permit): PI required for any USD purchase > $5,000
• Kazakhstan (NBK): PI required for trade payments > $50,000 — see our Central Asia export guide
• Kenya (CBK): No FX restriction but PI required for KRA Import Declaration Form (IDF)
• Tajikistan (NBT): PI required for all USD imports
• Iraq (COSQC + CBI): PI required, sometimes notarized at Korean consulate in Seoul

Customs Pre-Clearance Ruling

The Korea Customs Service (customs.go.kr) issues binding advance import-value rulings against PI document number. Buyers in Mozambique, Côte d'Ivoire, and Iraq use this to lock customs duty exposure before paying the deposit, shifting risk back onto the exporter if the customs valuation is later disputed.

8 Red Flags in a Korean Proforma Invoice

If a korean used car proforma invoice shows any of these eight issues, stop the trade and re-verify the exporter:

1. No Korean business registration number (사업자등록번호) — biggest red flag; a registered Korean exporter never omits this
2. Bank account name doesn't match the exporter name in Field 5 — almost always fraud or a third-party "broker" shell
3. No customs export code (통관고유번호) — means the exporter cannot legally clear customs in Korea
4. Vague vehicle description — missing VIN, mileage, or trim; legitimate exporters always provide all three
5. Inflated or wrong HS code — affects buyer's destination import duty; verify against actual fuel/displacement
6. No payment milestones — only "100% upfront" or undefined — legitimate exporters offer 30/70 or 50/50 unless FOB < $5,000
7. Validity ≤ 3 days — pressure tactic; legitimate exporters give 7–14 days
8. SWIFT/BIC code that doesn't match the bank — verify on the bank's own website; never accept the link the exporter provides

For a deeper exporter-verification framework see our how to verify a Korean car exporter checklist and scam prevention guide. Always cross-check the business registration number on KITA's tradenavi before wiring any deposit. SH GLOBAL Kia inventory illustrates legitimate PI sourcing — every unit references a verifiable KITA-registered customs code.

Sample Korean PI — Real $14,500 FOB Sonata

Here is what a fully-fielded korean used car proforma invoice looks like in practice. This sample uses real SH GLOBAL field values for a 2021 Hyundai Sonata DN8 destined for Mombasa, Kenya:

Every field on this sample maps to one of the 19 mandatory fields above. The buyer can take this PI directly to their bank for L/C application, to KRA for the IDF, and to a marine insurance broker for cover binding — all in parallel. Total time from receiving this PI to clearing the deposit wire is typically 3–5 business days.

Negotiating Changes to the PI

A korean used car proforma invoice is explicitly designed to be revised before deposit acceptance. Common revisions:

• Consignee change — from individual to a clearing agent or company name (most common in GCC and West Africa)
• Incoterm change — FOB → CIF if exporter agrees to handle freight and insurance
• Payment terms change — 30/70 → 10/40/50 for first-time buyers, or 50/50 for fleet/luxury
• Validity extension — request before expiry; standard +7 days
• Multi-vehicle line items — adding or removing units on a fleet PI
• Bank change — from KEB Hana to KB Kookmin, etc.; rare but happens during bank holidays

Best practice: list all change requests in a single email, then accept the revised PI in writing within the new validity. SH GLOBAL turnaround for revised PI is 24 hours; the new document carries an R1, R2 revision suffix on the PI number (e.g., PI-2026-05-1019-R1).