When you say "A is made out of B" it means A is made from B, B is used as a material for making A, B is transformed into A. For example: "People used to live in tents made out of animal skin". When you say "A is made in B" it means that B is the place where A is made. For example: "A lot of stuff is made in China these days" So "it is made in Korea" means that something is created in Korea, while "It is made out of Korea" wouldn't make sense. Hope this helps.

Yes. "Made in Korea" is the correct - although not literal - translation. It's probably a literal translation from the original Korean. I think I read somewhere that "KIA" means "coming out of Asia", so the original Korean text was probably "coming out of Korea", which is not how we represent the origin of a foreign-made product in English. We typically say, "made in <insert country>".