./.RESTRICTEDWORLD TRADE
ORGANIZATIONG/SG/Q1/KOR/6
24 June 1998
(98-2550)
Committee on Safeguards Original:  English
NOTIFICATION OF LAWS AND REGULATIONS UNDER
ARTICLE 12.6 OF THE AGREEMENT
Replies from KOREA1 to Questions
Posed by CANADA2
The following communication, dated 17 June 1998, has been received from the Permanent
Mission of Korea.
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Question 1
The Korean Foreign Trade Act sometimes uses the term "serious injury" and other
times merely the term "injury", leaving unclear the standard applied by the Korean Trade
Commission in making determinations.  In particular, Article 27 of the Act refers to a"determination as to the existence of injury to  the domestic industry …", and Article 28 of the
Act authorizes the Commission to make a reme dy recommendation when it has "determined
that there exists any injury to the domestic industry as a result of the investigation into injury to
the domestic industry …".  Please explain what injury test Korea applies in making safeguard
determinations and how Korea defines "injury".
Answer
1. The standard of "injury test" under the Foreign Trade Act (FTA) means "serious injury or
threat thereof" as defined in Article 4 of the Agreement on Safeguards.  It is prescribed in detail in
Article 26(1)1 of the FTA and Articles 69(1)2 and 69(1)3 of the Enforcement Decree of the FTA in
conformity with the Agreement on Safeguards.
2. According to Article 26(1)1 of the FTA, interested parties may request the investigation of an
injury caused by the import of specified goods to the relevant domestic industry, when an increase in
import of specified goods causes or threatens to cause serious injury to a domestic industry producing
like or directly competitive goods.
3. In addition, according to Articles 69(1)2 and 69(1)3 of the Enforcement Decree, when the
Korean Trade Commission (KTC) determines under Article 27(2) of the FTA whether or not the
domestic industry is injured, it shall examine whether or not serious injury is caused to the domestic
industry, and whether or not serious injury is threatened to the domestic industry.
                                                     
1 G/SG/N/1/KOR/3
2 G/SG/Q1/KOR/4G/SG/Q1/KOR/6
Page 2
4. Therefore, the standard of "injury" test under Article 27(2) of the FTA is the same as the
definition of "serious injury or threat thereof" in Article 4 of the Agreement on Safeguards.
Articles 69(2) and 69(3) of the Enforcement Decree de fine "serious injury" as a situation in which the
domestic industry is suffering from significant overall impairment, while defining "threat of serious
injury" as a situation in which the "serious injury" is clearly imminent.
Question 2
Does Korea allow interested parties the opportunity to respond to the presentations of
other parties as required by Article 3.1 of the WTO Safeguards Agreement?
Answer
1. The Enforcement Decree prescribes interested parties opportunities to present their opinions
on or to respond to the presentations of other parties.
2. Under Article 63(2), when the KTC determines to initiate an investigation, it shall publish
such determination in the Official Gazette.  Under Article 65.3, any interested parties may request theKTC to hold a public hearing for statements of opinion or consultation with opposite interested
parties.
3. Furthermore, an interested party may request a perusal of materials submitted by other
interested parties under Article 65(5), and may state or submit in writing at any time their opinions onor responses to the presentation of other parties during the investigation period under Article 65(4).
Question 3
Are the remedial measures described in Article 73 of the Korean Foreign Trade Act,
including "support from various funds to which the Government contributes to protect,
promote or convert the domestic industry or support with regard to taxation, "measures that
the Korean Trade Commission can recommend in a safeguard case?  Are these government
subsidies?
Answer
1. Support from funds contributed by the Government or support with regard to taxation under
Article 73 of the Enforcement Decree can be recommended by the KTC as remedial measures in a
safeguard case.  However, there has been no such case so far.
2. Such support as remedial measures, if any, will be applied only to the extent necessary to
prevent or remedy serious injury of domestic industry and to facilitate adjustment under Article 5 of
the WTO Agreement on Safeguards.
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