WT/REG431/1  
 
14 July  2022 
(22-5296) Page: 1/44 
Committee on Regional Trade Agreements   
 
FACTUAL PRESENTATION  
FREE TRADE  AGREEMENT BETWEEN THE UNITED KINGDOM  AND THE REPUBLIC OF KOREA  
(GOODS AND SERVICES ) 
Report by the Secretariat  
This report, prepared for the consideration of the Free Trade  Agreement between the 
United Kingdom  and the Republic of Korea , has been drawn up by the WTO Secretariat 
on its own responsibility and in full consultation with the Parties. The factual 
presenta tion reproduces as closely as possible the terminology used in the Agreement 
and in the comments provided and does not imply official endorsement or acceptance 
by the Secretariat of such terminology. The report has been drawn up in accordance 
with the rule s and procedures contained in the Decision for a Transparency Mechanism 
for Regional Trade Agreements (WT/L/671) and thus does not imply any value 
judgement by the Secretariat regarding the contents of the Agreement.  
Any technical questions arising from th is report may be addressed to Alberto Osnago 
(tel: + 41 22 739 69 .69). Any statistical questions arising from this report may be 
addressed to Rowena Cabos  (tel: +41 22 739 5185). 
 
 
  WT/REG431/1  
 
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  Table of Contents  
 
1   TRADE ENVIRONMENT  ................................ ................................ ................................ . 4 
1.1   Merchandise trade  ................................ ................................ ................................ ..... 4 
1.2   Trade in services and investment  ................................ ................................ .................  6 
2   CHARACTERISTIC ELEMENTS OF THE AGREEMENT  ................................ ....................  10 
2.1   Background information  ................................ ................................ ............................  10 
3   PROVISIONS ON TRADE IN GOODS  ................................ ................................ ...........  11 
3.1   Import duties and charges, and quantitative restrictions  ................................ ................  11 
3.1.1   General provisions  ................................ ................................ ................................ . 11 
3.1.2   Liberalization of trade and tariff lines  ................................ ................................ ........  11 
3.1.3   Liberalization schedule ................................ ................................ ............................  11 
3.1.3.1    Korea  ................................ ................................ ................................ ................  11 
3.1.3.2    United Kingdom  ................................ ................................ ................................ .. 13 
3.1.4   Tariff rate quotas  ................................ ................................ ................................ ... 15 
3.2   Rules of origin  ................................ ................................ ................................ ..........  16 
3.3   Export duties and charges, and quantitative restrictions  ................................ .................  16 
3.4   Regulatory provisions on trade in goods  ................................ ................................ ....... 16 
3.4.1   Standards  ................................ ................................ ................................ .............  16 
3.4.1.1   Sanitary and phytosanitary measures  ................................ ................................ .... 16 
3.4.1.2    Technical barriers to trade  ................................ ................................ ....................  17 
3.4.2   Safeguard mechanisms  ................................ ................................ ...........................  17 
3.4.2.1    Global safeguards  ................................ ................................ ...............................  17 
3.4.2.2    Bilateral safeguards  ................................ ................................ .............................  17 
3.4.2.3    Special safeguards  ................................ ................................ ..............................  17 
3.4.2.4    Balance of payments  ................................ ................................ ...........................  17 
3.4.3   Anti-dumping and countervailing measures  ................................ ...............................  18 
3.4.4   Subsidies and state -aid ................................ ................................ ...........................  18 
3.4.5   Customs -related procedures  ................................ ................................ ....................  18 
3.4.6   Other regulations  ................................ ................................ ................................ ... 19 
3.5   Sector -specific provisions on trade in goods  ................................ ................................ . 19 
3.5.1   Electronics  ................................ ................................ ................................ ............  19 
3.5.2   Motor vehicles and parts  ................................ ................................ .........................  19 
3.5.3   Pharmaceutical products and medical  ................................ ................................ ....... 20 
3.5.4   Chemicals  ................................ ................................ ................................ .............  20 
4   PROVISIONS ON TRADE IN SERVICES  ................................ ................................ ....... 20 
4.1   Scope and definitions  ................................ ................................ ................................  20 
4.2   Denial of benefits  ................................ ................................ ................................ ..... 21 
4.3   General provisions on trade in services  ................................ ................................ ........  21 
4.3.1   Market access  ................................ ................................ ................................ ....... 21 
4.3.2   National treatment and MFN  ................................ ................................ ....................  21 WT/REG431/1  
 
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  4.3.3   Commercial presence  ................................ ................................ .............................  21 
4.3.4   Movement of natural persons  ................................ ................................ ..................  22 
4.4   Liberalization commitments  ................................ ................................ ........................  22 
4.4.1   Korea  ................................ ................................ ................................ ...................  22 
4.4.1.1    MFN and horizontal commitments  ................................ ................................ ..........  22 
4.4.1.2    Sector specific commitments  ................................ ................................ ................  23 
4.4.2   United Kingdom  ................................ ................................ ................................ ..... 26 
4.4.2.1    MFN and horizontal commitments  ................................ ................................ ..........  26 
4.4.2.2    Sector specific commitments  ................................ ................................ ................  26 
4.5   Regulatory provisions  ................................ ................................ ................................  29 
4.5.1   Domestic regulation  ................................ ................................ ...............................  29 
4.5.2   Recognition  ................................ ................................ ................................ ...........  30 
4.5.3   Subsidies  ................................ ................................ ................................ ..............  30 
4.5.4   Safeguards  ................................ ................................ ................................ ...........  30 
4.5.5   Other  ................................ ................................ ................................ ...................  30 
4.6   Sector specific provisions on trade in services  ................................ ...............................  30 
4.6.1   Computer services  ................................ ................................ ................................ . 30 
4.6.2   Postal and courier services  ................................ ................................ ......................  31 
4.6.3   Telecommunications services  ................................ ................................ ...................  31 
4.6.4   Financial services  ................................ ................................ ................................ ... 31 
4.6.5   International maritime transport services  ................................ ................................ .. 32 
5   GENERAL PROVISIONS OF THE AGREEMENT  ................................ .............................  32 
5.1   Transparency  ................................ ................................ ................................ ...........  32 
5.2   Current payments and capital movements  ................................ ................................ .... 32 
5.3   Exceptions  ................................ ................................ ................................ ...............  33 
5.4   Accession and withdrawal  ................................ ................................ ..........................  33 
5.5   Institutional framework  ................................ ................................ .............................  33 
5.6   Dispute settlement  ................................ ................................ ................................ ... 33 
5.7   Relationship with other agreements concluded by the parties  ................................ ..........  34 
5.8   Government procurement  ................................ ................................ ..........................  36 
5.9   Intellectual property rights  ................................ ................................ .........................  37 
5.10   Competition  ................................ ................................ ................................ ...........  38 
5.11   Environment and labour  ................................ ................................ ...........................  38 
5.12   Electronic commerce  ................................ ................................ ...............................  38 
5.13   Small and medium -sized enterprises  ................................ ................................ .........  39 
ANNEX 1  ................................ ................................ ................................ ........................  40 
ANNEX 2  ................................ ................................ ................................ ........................  44 
 
  WT/REG431/1  
 
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Key Facts  
 
Parties to the Agreement:  United Kingdom and the Republic 
of Korea  
 
Date of Signature:    22 August 2019  
 
Date of Entry into Force:  01 January 2021  
 
Date of Notification:   31 December 2020  
 
Full implementation:    01 July 2031  
 
 
The Factual Presentation describes the Free Trade Agreement between the United Kingdom and the 
Republic of Korea (hereinafter the Agreement) which was concluded by the Parties and entered into 
force on 01 January 2021. The Agreement is based on the Free Tr ade Agreement between the 
European Union and its Member States and the Republic of Korea (hereinafter the EU-Korea 
Agreement), signed at Brussels on 6 October 2010  and is a comprehensive agreement which 
establishes an economic association between the UK an d Korea. The purpose of the Agreement is to 
maintain the effects and continuity of the EU -Korea Agreement in a bilateral context.  
 
1  TRADE ENVIRONMENT  
1.1.  The Agreement is one of the 38 RTAs in force notified to the WTO by the United Kingdom and 
the 20th RTA in force and notified to the WTO by Korea.  
1.1  Merchandise trade  
1.2.  In 2020, the UK recorded a global merchandise trade deficit with exports of USD 403.9 billion 
and imports of USD 632.6 billion  in 2020 ( Chart 1.1). In the same period , Korea's global merchandise 
trade balance was positive with exports totalling USD 512.7 billion and imports  equal to  USD 467.5 
billion  in 2020 . In the same year, Korea was  the 6th largest global exporter and the 7th largest 
global importer of merchandise (respectively 2.9% of world exports and 2.6% of world imports) , 
while the UK was the 8th largest exporter and the 5th largest importer (respectively 2. 3% of world 
exports a nd 3.6% of global imports).1 Both Parties' trade is dominated by manufactured products 
which made up 87.3% and 60.2% of Korea 's merchandise exports and imports respectively, and 
71.6% and 66.1% of exports and imports respectively for the UK . 
1.3.  Korea  was UK's 16th largest source of imports ( 0.8% of UK's total imports) and 12th largest 
destination for exports ( 1.3% of UK's total exports), while the UK was Korea 's 20th largest source 
of imports and export destination ( 0.9% of total imports and exports ).2 Data from UNSD Comtrade 
(left panel of Chart 1.1) shows a positive balance in favour of Korea in 2019 and 2020 and a negative 
balance in 2018 ; data provided by the UK authorities ( right panel of Chart 1.1) show a positive trade 
balance in favour of the UK in 2018 and 2020 and a negative balance in 2019 . 
 
1 WTO Trade Profiles 202 1. Data exclude intra -EU trade . 
2 Data provided by UK authorities and UNSD Comtrade. Data exclude intra -EU trade.  WT/REG431/1  
 
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  Chart 1.1 Korea -UK: Merchandise bilateral and glo bal trade, 2018 -2020  
 
Source:  Based on data provided by the Parties and UNSD, Comtrade database.  
 
1.4.  The commodity structure of global and bilateral trade of the Parties in the period 2018 -2021 is 
shown in Chart 1.2 on the basis of Harmonized System (HS) sections. The U K's imports from Korea 
were less diversified than its global imports with v ehicles and machinery accounting for almost two 
thirds of the UK's goods imports from Korea. The same products were Korea's largest exports 
respectively accounting for 15% and 43% o f its exports. The bilateral and global commodity 
structure of Korea's imports are relatively similar. The four commodities most imported by Korea 
from the UK were machinery,  minerals, vehicles and chemicals , with shares between 15% and 20% 
of bilateral imports . Machinery, vehicles and chemicals were also the largest UK's global exports  with 
shares of 21%, 15% and 14% of its global exports.  
02468101214161820
0100200300400500600700800
2018 2019 2020A. Korea
(USD B illions)
Imports from United Kingdom (Right
Axis)
Exports to United Kingdom (Right
Axis)
Total Imports
Total Exports
02468101214161820
0100200300400500600700800
2018 2019 2020B. United Kingdom
(USD Billions)
Imports from Korea (Right Axis)
Exports to Korea (Right Axis)
Total Imports
Total ExportsWT/REG431/1  
 
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  Chart 1.2 Korea -UK: Product  composition of merchandise trade by HS Section, annual 
average (2018 -2020)  
 
Source:  Based on data provided by the Parties and UNSD, Comtrade database.  
 
1.2  Trade in services and investment  
1.5.  In 2020 and excluding intra -EU trade , Korea was the world's 9th large st exporter and importer 
of commercial services, while the UK ranked the world's 3rd largest exporter and 4th largest 
importer . Korea 's share in commercial services trade corresponded to 1.8% of global commercial 
services exports (valued at USD 86 billion)  and 2.2% of world commercial services imports (valued 
at USD 102 billion). In comparison, the UK ’s corresponding shares were 6.9% of world exports 
(valued at USD 339 billion ) and 4.4% of world imports (valued at USD 201 billion ).  
1.6.  Chart 1.3 depicts Korea's trade in commercial services for the period 2018 -2020. Both imports 
and e xports to the world decreased over the period , with i mports decreasing faster , leading to a 
reduction in Korea's global trade deficit. There have not been significant changes in the  sector al 
composition of Korea 's services exports and imports. Transport services, o ther business services and 
travel services a ccounted for around 66% of total exports and 69% of total imports in 2020. 
37
2886517UK's imports from Korea (%)
21
12
12
9855522UK's Global Imports (%)
43
15987711Korea's Global Exports (%)
20
19
18158515Korea's imports from UK (%)
29
2797423Korea's Global Imports (%)21
15
14109527UK's Global Exports (%)
Total: USD 5.2 billion Total: USD 667 billion
Total: USD 502 billionTotal: USD 453 billion
Total:  USD 553 billionTotal: USD 5.1 billion
ChemicalsMineralsPrepared foods
Precious 
stonesTextilesPlastics
VehiclesMachineryBase metals
OtherOpticalWT/REG431/1  
 
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  Chart 1.3 Korea: Trade in commercial services with world (2018 -2020)  
 
Source: Korean authorities.  
 
1.7.  Chart 1.4 shows the evolution of global and bilateral trade in commercial services for the UK 
for the period 201 8-2020. Both imports and exports to the world decreased over the period with 
imports decreasing faster leading to an increase in the UK's global trade surplus. There have not 
been significant changes in the sector composition of UK's services exports and imports except for 
the sharp decline of travel services trade. Other business s ervices are by far the largest imported 
and exported sector and accounted for around 40% of total exports and 46% of total imports in 
2020. Financial services and telecommunication services are the second and third largest global 
exports while financial se rvices and travel are the second and third largest global imports.  
1.8.  While imports from Korea decreased in 2019 to increase in 2020, exports to Korea declined 
over the period causing a reduction  in UK's bilateral trade surplus in 2020. As for global trade, o ther 
business services and financial services  are the largest trade categories  with Korea in 2020, 
corresponding to 30.1% and 21.4% of exports and 42.7% and 22.8% of imports respectively .  
020406080100120140
2018 2019 2020Imports
Korea's trade in commercial services with 
world (USD billion)
020406080100120140
2018 2019 2020Exports WT/REG431/1  
 
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  Chart 1.4 United Kingdom : Trade in commercial services with world and Korea 
(2018 -2020)  
 
Notes:  Exchange rates from GBP to USD: 0.75 (2018), 0.78 (2019), 0.78 (2020)  
 No bilateral exports on manufacturing services on physical inputs owned by others and maintenance 
and repair services, n.i.e. for 2019.  
 No bilateral imports on manufacturing services on physical inputs owned by others, maintenance and 
repair services, n.i.e. and personal, cultura l and recreational services for 2018 -2020; construction 
for 2019 and 2020 ; charges for the use of intellectual property, n.i.e for 2018 ; telecommunications, 
computer and information services for 2019.  
Source:  UK authorities.  
 
1.9.  Chart 1.5 and Chart 1.6 depict the Parties' global and bilateral foreign direct investment stocks 
and flows for the period 201 8-2020. Korea was a net source of FDI stocks . The UK was a net recipient  
of FDI stocks in 2018 and 2020 and of flows throughout the period . At a bilateral level, the UK's 
outward FDI stocks were larger than inw ard stocks . Bilateral inward and outward flows declined in 
2019 but recovered in 2020 although inward flows remained negative .  
050100150200250300350400450500
2018 2019 2020Imports
05001,0001,5002,0002,5003,0003,5004,000
2018 2019 2020Exports United Kingdom's trade in commercial 
services with world (USD billion)
United Kingdom's trade in commercial services 
with Korea (USD million)050100150200250300350400450500
2018 2019 2020Exports 
05001,0001,5002,0002,5003,0003,5004,000
2018 2019 2020Imports WT/REG431/1  
 
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  Chart 1.5 Korea: FDI stock and flow with the United Kingdom and the world  
 
Note:  No bilateral FDI stock.  
Source:  Korean authorities and UNCTADStat (2017 and 2020 global FDI data).  
 
Chart 1.6 United Kingdom: FDI stock and flow with Korea and world, 2017 -2019  
 
Notes:  No bilateral outwar d FDI Flow for 2017.  
 Exchange rates GBP per USD: 0.78 (2017), 0.75 (2018) and 0.78 (2019).  
Source:  UK authorities.  
0100200300400500600
2018 2019 2020Korea FDI stock with world
2018 -2020 
(USD Billions )
Inward Outward
051015202530354045
2018 2019 2020Korea FDI flow with world
2018 -2020
(USD B illions ) 
0123456789
2018 2019 2020UK FDI stock with Korea
2018 -2020 
(USD Billions) 
-600-400-2000200400600800
2018 2019 2020UK FDI flow with Korea
2018 -2020
(USD Millions) 05001,0001,5002,0002,5003,000
2018 2019 2020UK FDI stock with world
2018 -2020 
(USD Billions )
Inward Outward
-80-60-40-20020406080100
2018 2019 2020UK FDI flow with world
2018 -2020
(USD B illions ) WT/REG431/1  
 
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  2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT  
2.1  Background information  
2.1.  The Agreement was signed on 22 August 2019  and notified to the WTO on 31 Dec ember 2020 
under Article XXIV:7(a) of GATT 1994 and Article V:7(a) of the GATS (see documents 
WT/REG4 31/N/1 - S/C/N/10 29). It entered into force on 1 January 2021 . 
2.2.  The text of the Agreement, together with its annexes, is available on the Parties' official 
websites:  
Republic of Korea:  https://www.fta.go.kr/main/situation/kfta/lov3/uk/2/   
 
United Kingdom:  https://www.gov.uk/government/publications/ukkorea -free-trade-agreement -
with-exchange -of-notes -cs-korea -no12019  
 
2.3.  The Agreement is composed of fifteen  Chapters. A number of Annexes, including the Parties' 
tariff elimination schedules and the lists of services and investment commitments and three  Protocols 
also form part of the Agreement.  The Agreement replicates the provisions of the EU -Korea 
Agreement which are described in the factual presentation of the EU -Korea Agreement (document 
WT/REG269/1/Rev.1)  which should be read in conjunction with this factual presentation . Box 2.1 
below summarizes the structure of the Agreement.   
Box 2.1 Structure of the Agreement  
Chapters  Description  
Chapter One  Objectives and gen eral definitions  
Chapter Two  National treatment and market access for goods  
Chapter Three  Trade remedies  
Chapter Four  Technical barriers to trade  
Chapter Five  Sanitary and phytosanitary measures  
Chapter Six  Customs and trade facilitation   
Chapter Seven  Trade in services, establishment and electronic commerce  
Chapter Eight  Payments and capital movements  
Chapter Nine  Government procurement  
Chapter Ten  Intellectual property rights  
Chapter Eleven  Competition  
Chapter Twelve  Transparency  
Chapter Thirteen  Trade and s ustainable development  
Chapter Fourteen  Dispute settlement  
Chapter Fifteen  Institutional, general and final provisions  
Protocols:  
Protocol concerning the definition of "originating products " and methods of administrative cooperation  
Protocol on cultural cooperation  
Protocol on mutual administrative assistance in customs matters  
Source:  WTO Secretariat based on the Agreement.  
2.4.  The Agreement establishes a free trade area on goods, services, establishment and associated 
rules (Article 1.1).  
2.5.  References in the Agreement to European Union or Korean legislation are to be read as 
references to that legislation as amended or replaced on the date of entry into force of the WT/REG431/1  
 
- 11 - 
 
  Agreement, provided that they do not red uce market access or increase barriers to trade 
(Article  1.3).  
2.6.  The Agreement applies to i) the territory of the UK and the territories for whose international 
relations it is responsible  to the extent that and  under the conditions which the EU-Korea  Agree ment 
applied immediately before that agreement ceased to apply to the UK3 and ii) the territory of Korea  
(Article 15.5) . 
3  PROVISIONS ON TRADE IN GOODS  
3.1.  Chapters 2-6 of the Agreement cover trade in goods with provisions on national treatment and 
market acces s, trade remedies, technical barriers to trade, sanitary and phytosanitary measures  and 
customs and trade facilitation .  
3.1  Import duties and charges, and quantitative restrictions  
3.1.1   General provisions  
3.2.  The Parties eliminate their customs duties on originating goods in accordance with the 
schedules in Annex 2 -A of the Agreement (Article 2.5). Acceleration and broadening of the scope of 
the elimination of customs may take place as a result of consultations  between the Parties which 
may take place at the request of a Party three years after the entry into force of the Agreement.  
3.3.  Import prohibition s or restriction s that are  inconsistent with GATT Article XI obligations and 
with any other relevant provision u nder the WTO Agreement are prohibited (Article 2.9).  
3.1.2   Liberalization of trade and tariff lines  
3.4.  Tariff liberalization under the Agreement is a continuation of the liberalization under the 
EU-Korea Agreement. Annex 2 -A includes the Parties' schedules for the elimination of customs duties 
which follows 12 linear  staging categories with equal annual stages beginning on 1 July 2011, 
4 non-linear staging categories and 2  staging categories  for seasonal duties . The Annex also includes  
category "E" indicating that duties shall remain at base rates and category "X" indicating no 
obligations regarding customs duties.4  
3.1.3   Liberalization schedule  
3.5.  The tariff analysis below provides a comparison between the liberalization under the Agreement 
and the MFN applied tariff in order to show the reciprocal preferential access to each other's market 
compared to the conditions for third parties subject to MFN rates .  
3.1.3.1   Korea  
3.6.  Table 3.1 shows the tariff and trade liberalization offered by Korea under the Agreement. In 
2021, 19.6% of Korea's tariff lines were duty free on an MFN basis, corresponding to 17.8% of its 
imports from the UK in 2018 -2020.5 At the beginning of 202 1 74.2% of Korea's tariff (81.6% of 
imports) was already duty free for products originating in the UK  as a result of the liberalization 
afforded by the EU -Korea Agreement . On 1 July 2021, an additional 486 lines became duty free 
under the Agreement. Most o f the dutiable tariff are to be  eliminated in different stages leaving 
duties on 69 lines a t the end of the implementation in 203 1.6 
 
3 Notwithstanding this paragraph, the Agreement shall not apply to the Sovereign Base Areas of Akrotiri 
and Dhekelia in Cyprus.  
4 Given that the staging categories are the same as under the EU -Korea Agreement implementing the 
liberalization starting from 1 J uly 2011, not all staging categories are relevant for the Agreement as the 
liberalization was already completed before the entry into force.  
5 Of the 12,242 lines in Korea’s schedule, 12,154 (99.3%) were ad valorem  while 8 8 lines (0.7%) were 
mixed.  
6 Under the EU -Korea Agreement 57 lines are to remain dutiable at the end of implementation (see 
document WT/REG296/1/Rev.1).  The difference between the two agreements is due to the different HS 
nomenclature utilized.  WT/REG431/1  
 
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  Table 3.1 Korea: Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase -out 
period  Number 
of lines  % of total lines 
in Korea's tariff 
schedule  Value of Korea's 
imports from the UK  
(2018 -2020)  
USD million  % of Korea's 
total im ports 
from  
the UK  
(2018 -2020)  
MFN 2021  2,404  19.6 909.5  17.8 
2021 (from 1 January 
to 30 June)  9,083  74.2 4,176.9  81.6 
2021 (from 1 July)  486 4.0 22.2 0.4 
2023 28 0.2 3.0 0.1 
2024 39 0.3 1.2 0.0 
2026 116 0.9 1.0 0.0 
2028 1 0.0 0.0 0.0 
2029 14 0.1 0.0 0.0 
2031 2 0.0 0.0 0.0 
Remain dutiable  69 0.6 2.3 0.0 
TOTAL  12,242  100.0  5,116.1  100.0  
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by the Korean authorities and the WTO -IDB. 
 
3.7.  Table 3.2 shows Korea's tariff liberalization by HS Section. The 69 remaining dutiable lines for 
imports from the UK are in HS Section s I (animal products), II (vegetable products) and  IV (prepared 
foodstuffs). The average final tariff s for those lines remain high , reaching 392% in for prepared 
foods.  
Table 3.2 Korea: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 
Avg 
% Number 
of lines  Duty -
free 
lines 
under 
MFN 
2021  Number of duty -free lines under the Agreement  
Remaining dutiable 
lines  
Avg. Final Tariff  
(Dutiable)  2021 (from 1 
January to 30 
June)  
2021 (1 July)  
2023  
2024  
2026  
2028  
2029  
2031  
I 20.4 805 21 444 256 6 17 44    17 106.8  
II 107.9  699 29 409 117 7 21 56 1 13 2 44 382.8  
III 13.7 105  97 4 3    1    
IV 29.3 548 3 413 100 8  16    8 392.3  
V 3.8 388 45 343          
VI 7.4 2,222  197 2,011  9 4 1       
VII 6.6 379 6 373          
VIII 7.8 236 26 210          
IX 5.7 344 50 294          
X 0.0 285 285           
XI 9.7 1,282  28 1,254           
XII 10.1 100  100          
XIII 7.8 343 1 342          
XIV 5.1 115 5 110          
XV 4.2 1,029  411 618          
XVI 4.5 2,093  818 1,275           
XVII 5.9 345 85 260          
XVIII 4.3 548 241 307          WT/REG431/1  
 
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  HS 
Section  MFN 
Avg 
% Number 
of lines  Duty -
free 
lines 
under 
MFN 
2021  Number of duty -free lines under the Agreement  
Remaining dutiable 
lines  
Avg. Final Tariff  
(Dutiable)  2021 (from 1 
January to 30 
June)  
2021 (1 July)  
2023  
2024  
2026  
2028  
2029  
2031  
XIX 3.4 81 47 34          
XX 5.4 280 91 189          
XXI 0.0 15 15           
Total  13.9 12,242  2,404  9,083  486 28 39 116 1 14 2 69 315.9  
Note:  Tariff lines subject to in -quota rates are excluded in the computation . For the calculation of 
averages, specific rates are excluded, and the ad valorem  parts of alternate rates are included.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by the Korean authorities and the WTO -IDB. 
 
3.8.  At a more disaggregated level, duties will remain in twelve Chapters concerning agricultural 
products ( Chart 3.1). With the exception of Chapters 3 and 8, all duties at the end of implementation 
are equal to the MFN  rates. The highest tariffs will b e applied to a total of 10 lines in Chapters 11 
(products of the milling industry), 18 (cocoa) and 19 (preparations of cereals) with average rates 
equal to 513%.  
Chart 3.1 Korea: Average of dutiable rates, by HS Chapter  
 
Note:  For the calculation of averages, specific rates are excluded, and the ad valorem  parts of alternate 
rates are included.  Based on the HS 2017 nomenclature . 
Source:  WTO estimates based on data provided by the Korean authorities.  
 
3.1.3.2   United Kingdom  
3.9.  Table 3.3 shows the tariff and trade liberalization offered by the UK under the Agreement. In 
2021, 47% of the UK's tariff lines were duty free on an MFN basis, corresponding to 47.1% of its 
imports fro m Korea in 2018 -2020.7 At the beginning of 2021 , 52.6% of the UK's tariff ( 52.9% of 
 
7 Of the 9,494 lines in the UK ’s sched ule, 8,613 (90.7%) were ad valorem , 647 lines ( 6.8%) had specific 
duties, 230 (2.4%) had compound duties and 4 had mixed duties . 
0100200300400500600
3 4 7 8 9 10 11 12 17 18 19Average Duty Rate (%)
HS ChapterPreferential MFNWT/REG431/1  
 
- 14 - 
 
  imports) were already duty free for products originating in Korea as a result of the liberalization 
afforded by the EU -Korea Agreement.  36 lines remain dutiable at the end  of the implementation.8 
Table 3.3 United Kingdom: Tariff elimination commitments under the Agreement and 
corresponding average trade s 
Duty phase -
out period  Tariff lines in UK's tariff schedule  UK's imports from Korea, Republic of 
(2018 -2020)a 
Number  % Value (USD million)b % 
2021 (MFN)  4,462  47.0 2,384.0  47.1 
2021 4,996  52.6 2,677.5  52.9 
Remain 
dutiable  36 0.4 0.3 0.0 
Total 9,494  100.0  5,061.8  100.0  
a Import coverage is for HS chapters 1 -97.  
b Exchange rates from GBP to USD:  0.750 (2018), 0.783  (2019) and 0.7 80 (2020).  
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by UK.  
 
3.10.   Table 3.4 shows the UK's tariff liberalization by HS Section. The 36 remaining dutiable lines 
for imports from Korea are in HS  Sections II (vegetable products) and IV (prepared foodstuffs) with 
average tariff of 6%.  
Table 3.4 United Kingdom: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 2021  Duty Free Lines  
under  
the Agreement 
(2021)  Remain 
Dutiable  Avg. Dutiable 
Tariff  Avg. 
Tariff 
(%) No. of 
lines  Duty free 
lines  
I 8.9 956 109 847   
II 4.4 554 213 307 34 6 
III 4.8 129 30 99   
IV 12.9 869 119 748 2 6 
V 0.4 231 202 29   
VI 2.7 1,226  550 676   
VII 3.7 301 86 215   
VIII 1.4 130 73 57   
IX 1.1 235 189 46   
X 0.0 195 195    
XI 7.0 1,149  243 906   
XII 7.3 106 17 89   
XIII 2.0 234 162 72   
XIV 0.5 58 47 11   
XV 0.6 955 804 151   
XVI 0.7 1,338  981 357   
XVII 3.7 286 121 165   
XVIII 0.6 299 218 81   
XIX 1.4 22 7 15   
XX 1.4 214 89 125   
XXI 0.0 7 7    
Total  3.8 9,494  4,462  4,996  36 6 
Note: Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of 
averages, specific rates are excluded, and the ad valorem  part of alternate rates are included.  
 For the tariff lines subject to seasonal duties  (0302.41.00, 030 2.43.90, 0302.44.00, 0303.51.00, 
0303.53.90, 0303.54.10, 0303.89.40, 0304.59.50, 0304.99.23, 0702.00.00, 0708.10.00, 
0805.10.22, 0805.10.24, 0805.10.28, 0808.10.80, 0808.30.90, 0809.29.00 and 0809.40.05 ) the 
average rate for the entire year is used for the  calculation. The products classified beyond the 
HS 8-digit level are counted once and their tariff rates are averaged to the 8 -digit level.  
Source:  WTO estimates based on data provided by the UK.  
 
8 Under the EU -Korea Agreement 42 lines are to remain dutiable once full implementation is achieved  
(see document WT/REG296/1/R ev.1).  The difference between the two agreements is due to the different HS 
nomenclature utilized.  WT/REG431/1  
 
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  3.11.  At a more disaggregated level, duties will remain in Chapte rs 10, 11 and 19 ( Chart 3.2). All 
remaining duties at the end of implementation are equal to the MFN  rates with tariff lines in Chapter 
11 subject to specific duties .  
Chart 3.2 United Kingdom: Average of dutiable rates, by HS Chapter  
 
Note:  Tariff lines subject to in -quota rates are excluded from the computation. For the calculation of 
averages, specific rates are excluded, and the ad valorem  part of alternate rates are included.  
 For the tariff lines subject to seasonal duties, the average rate for the entire year is used for the 
calculation. The  products classified beyond the HS 8 -digit level are counted once and their tariff 
rates are averaged to the 8 -digit level.  
Source:  WTO estimates based on data provided by the UK.  
 
3.12.  Appendix 2 -A-2 of the Agreement contains the modifications to the entry pri ce scheme for 
certain fruits and vegetables  that were already  included in the EU -Korea Agreement . The UK 
commit ted to remove the ad valorem customs duty  for the products listed in the Appendix . The 
specific duty component for some of the products (includin g cucumber, fresh pears and cherries, 
unfermented grape juice and must , and other fruits and vegetables ) were eliminated before the 
entry into force of the Agreement as a consequence of the EU -Korea Agreement . Specific duties on 
other products such as citr uses, table grapes and fuji apples will be  eliminat ed in 15 or 20 years  of 
the entry into force of the EU-Korea Agreement. Specific duties on fresh or chilled tomatoes, fresh 
sweet oranges and fresh or dried monreales and satsumas remain in force.  
3.1.4   Tariff rate quotas  
3.13.  Appendi x 2-A-1 sets out modifications  to the harmonised tariff schedule of Korea reflecting 
TRQs under the Agreement . Korea scheduled TRQs on 6 products of malt and malting barley, and 
animal supplementary feeds .9 Table A2. 1 in Annex 2 of the factual presentation shows the specific 
HS codes, in and out  of quota rates and quantities  and their evolution over time . The TRQ quantities  
for imports from the  UK shall not be counted towards the quot a quantity  of any TRQ provided for 
such goods in the Harmonised Tariff Schedule of Korea suggesting that the TRQ commitments are 
in addition to Korea's WTO TRQs.  
3.14.  The UK does not impose TRQs under the Agreement.10  
 
9 In 2020, in addition to the products included in the Agreement , Korea maintained TRQs at the WTO 
on, inter alia , a number of animal and animal products (e .g. cattle and swine), milk products (e.g. milk powder 
and butter), honey, vegetables (e.g. potatoes, onions and peppers), citrus, cereals (e.g. rice and maize), 
fermented alcohol and  silk.  
10 In 2021, the UK imposed TRQs at the MFN level on a number of products such as certain animal 
products, vegetables, fruits, cereals, meat, foodstuffs, wine and wood products.  
0%1%2%3%4%5%6%7%
10 11 19
HS ChapterPreferential MFNAverage Duty Rate
*
*Tariff lines subject to specific duties onlyWT/REG431/1  
 
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  3.2  Rules of origin  
3.15.  Rules of origin are included in the Protocol concerning the definition of originating products 
and methods of administrative cooperation  and are the same as under the EU -Korea Agreement . 
3.16.  Products are considered as originating in a Party i f they are i) whol ly obtained, ii) obtained in 
a Party incorporating materials which have not been wholly obtained there, provided that such 
materials have undergone sufficient working or processing or iii) obtained in a Party exclusively from 
materials that qualify as orig inating (Article 2 of the Protocol).  
3.17.  Product specific rules are contained in Annex II of the Protocol. For most products in HS 
Chapters 1 to 16, origin is conferred when manufactur ed from wholly obtained materials in a Party. 
For other products, a change i n tariff classification (CTC), a value -added rule or a combination of 
the two is used.11 For textiles and textiles articles, the specific rules are in most cases a specific 
manufacturing operation, with a maximum value of non -originating materials rule use d only for a 
few cases. The value -added criterion is also generally used as a determining condition for products 
of HS Chapters 84 to 94.  Article 5 also provides  for a tolerance rule allowing non -originating materials 
in the manufacture of a product as lon g as their total value does not exceed 10 percent of the 
ex-works price of the product and any of the percentages given in the list in Annex II for the 
maximum value of non -originating materials are not exceeded.  
3.18.  Article 3 of the Protocol provides for bilateral cumulation and cumulation of EU materials and 
processing for 3 years after the entry into force of the Agreement. Not later than two years after the 
entry into force of the Agreement, the Parties shall review the Article to ensure continued, mutually  
beneficial rules of origin in bilateral trade.  
3.19.  Annex II(a) includes origin quotas under the Agreement. Compared to the EU -Korea 
Agreement, origin quotas have been modified based on their past usage: quotas for products such 
as biscuits, cigarettes, cotto n sewing thread, cotton yarn, sewing thread and yarn have been 
removed while quotas on preparations of surimi and woven fabrics have been reduced.  
3.20.  Article 12 of the Protocol includes a principle of territoriality . At the same time, i t allows 
outward proces sing on materials exported from Korea and  subsequently re -imported, provided that 
the working or processing is done in the areas designated by the Parties  pursuant to Annex IV 
establishing a Committee on Outward Processing Zones on the Korean Peninsula. Th e Committee 
shall meet at least once a year to identify areas that may be designated outward processing zones. 
The Parties agreed to hold the first meeting of the Committee on Outward Processing Zones after 
the first year of entry into force. However, the Committee has not yet had reason to meet.  
3.3  Export duties and charges, and quantitative restrictions  
3.21.  Export prohibition or restriction inconsistent with GATT Article XI obligations and with any 
other relevant provision under the WTO Agreement, and duties, taxes or other fees and charges on 
exports are prohibited (Articles 2.9 and 2.11).  
3.4  Regulatory provis ions on trade in goods  
3.4.1   Standards  
3.4.1.1   Sanitary and phytosanitary measures  
3.22.   Chapter 5 covers SPS measures. The Parties affirm their rights and obligations under the WTO 
SPS Agreement (Article 5.4). In addition, it includes, inter alia , transparency and cooperatio n 
measures (Article  5.5) and also the application and development of international standards (Article 
and 5.6). A Committee on SPS measures is established in Article 5.10. The first Committee meeting 
was held on 24 May 2022.  The dispute settlement mechanis m of the Agreement is not applicable to 
SPS matters (Article 5.11).   
 
11 The maximum value for non -originating materials ranges  between 25% and 60% of t he ex -works 
price of the product . WT/REG431/1  
 
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  3.4.1.2   Technical barriers to trade  
3.23.  Chapter 4 covers TBT measures. The Parties affirm their rights and obligations under the WTO 
Agreement on TBT which is incorporated into and made part of the A greement (Article 4.1).  Chapter 
4 does not apply to governmental  bodies' technical specifications for their production or consumption 
requirements, or SPS measures  (Article 4.2) . It contains provisions on joint cooperation (Article 4.3), 
technical regulati ons (Article 4.4)  and standards  (Article 4.5).  
3.4.2   Safeguard mechanisms  
3.4.2.1   Global safeguards  
3.24.  Section C of Chapter Three covers  global safeguard measures. The Parties' rights and 
obligations under G ATT Article XIX and the WTO Agreement on Safeguards are retained, and the 
Agreement does not confer any additional right on the Parties (Article 3.7). At the request of the 
other Party,  the Party intending to take safeguard measures shall provide immediately ad hoc written 
notification of all pertinent information on the initiation of a safeguard investigation, the provisional  
and final findings of the investigation. Neither Party may ap ply at the same time a global and a 
bilateral safeguard measure on the same good.  
3.25.  The Parties cannot use the RTA's dispute settlement mechanism for any matter arising under 
Section C of Chapter Three  (global safeguard measures) . 
3.4.2.2   Bilateral safeguards  
3.26.  A Part y may adopt bilateral safeguard measures if, as a result of the reduction or elimination 
of a customs duty under the Agreement, originating goods of the other Party are imported in such 
increased quantities, in absolute terms or relative to domestic produc tion, and under such conditions 
as to cause or threaten to cause serious injury to a domestic industry producing like or directly 
competitive goods (Article 3.1). Bilateral safeguard measures can take the form of i) a suspension 
of further reductions in th e rate of customs duty for the goods in question or ii) an increase in the 
rate of customs duty on the good to a level which does not exceed the lesser of the MFN applied 
rate in effect at the time a measure is taken or the base rate as specified in Annex 2-A of the 
Agreement.  
3.27.  Bilateral safeguard measures can be applied only during the transition period except with the 
consent of the other Party  (Article 3.2) . The transition period for safeguard measures is good -specific 
and is defined in Article 3.5 as the  period from the date of entry into force of the Agreement until 
10 years from the date of completion of tariff reduction or elimination  for a specific good . Provisional 
measures can be taken  in critical circumstances (Article 3.3). Compensation is provide d for, based 
on consultations in Article 3.4.  
3.4.2.3   Special safeguards  
3.28.  Article 3.6 provides for agricultural safeguard measures  that Korea can impose on the 
agricultural goods listed in Annex 3 .12 The Annex also specifies the trigger levels  quantities  for 
applyi ng safeguard measures , the maximum safeguard duties applicable  and the dates after which 
safeguards cannot be maintained .13 
3.4.2.4   Balance of payments  
3.29.  Where a Party has serious balance of payments and external financial difficulties, or threat 
thereof, it can adopt or maintain restrictive measures in relation to trade in goods , services and 
establishment  (Article 15.8). The Article also establishes a consultation mechanism to assess the 
situation and address the compliance of the measures with the provisions of  the Agreement.  
 
12 The products listed in Annex 3 include beef, pork, apples, malt and malting barley, potato starch, 
ginseng, sugar, alcohol and dextrins.  
13 1 July 2035 is the latest date and applies to apples.  WT/REG431/1  
 
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  3.4.3   Anti-dumping and countervailing measures  
3.30.  The Parties maintain  their rights and obligations under GATT Article VI and the WTO 
Agreements on Antidumping, and Subsidies and Countervailing measures (Article 3.8). The 
Agreement does not prohibit  the Parties from taking countervailing measures against each other's 
products. It confirms the de minimis  standard defined by the WTO Agreement on antidumping but 
introduces a lesser duty rule (Article s 3.13 and  3.14).  
3.31.  The Parties cannot use the RTA's dis pute settlement mechanism for any matter arising under 
Section D of Chapter 3 (anti-dumping and countervailing duties).   
3.4.4   Subsidies and state -aid 
3.32.  Section B of Chapter 11 includes provisions on subsidies  and appl ies to subsidies for goods 
with the exception of fisheries subsidies, subsidies related to products covered by Annex 1 of the 
Agreement on Agriculture and other subsidies covered by the Agreement on Agriculture 
(Article  11.15) .  
3.33.  The Parties agree to use their best endeavours to remedy or remove distor tion of competition 
caused by subsidies (Article 11.9). Subsidy and specificity are defined as in Articles 1.1 and 2 of the 
SCM Agreement (Article 11.10).  
3.34.  Article 11.11 provides that i) subsidies granted under any legal arrangement whereby a 
government or any public body is responsible for covering debts or liabilities of certain enterprises 
within the meaning of Article 2.1 of the SCM Agreement without any limitation  to the amount of 
those debts and liabilities or the duration of responsibility  and ii) subsidies to insolvent or ailing 
enterprises without a credible restructuring plan based on realistic assumptions are deemed to be 
specific and prohibited .14 Subsidies for small and medium -sized enterprises granted in accordance 
with objective criteria or conditions as provided for in Article 2.1 (b) and footnote 2 attached thereto 
of the SCM Agreement are not prohibited.  
3.35.   Article 11.12 states  that each Party s hall report annually to the other Party on the total 
amount, types and the sectoral distribution of subsidies which are specific and may affect 
international trade. The report is deemed to have been provided if sent to the other Party, or if the 
relevant i nformation is made available on a publicly accessible  website.  
3.36.  The provisions in the Section are without prejudice to the rights of a Party in accordance with 
relevant provisions of the WTO Agreement to apply trade remedies or to take dispute settlement or  
other appropriate action against a subsidy granted by the other Party (Article 11.13).  
3.37.  The Parties shall keep under constant review the matters to which reference is made in Section  
B of Chapter 11 and e ach Party may refer such matters to the Trade Committee. Unless both Parties 
agree otherwise, t he Parties agree to review progress in implementing the Section every two years 
after the entry into force of this Agreement  (Article 11.14).  
3.4.5   Customs -related pr ocedures  
3.38.  The Parties shall adopt and apply simplified and efficient customs and other trade -related 
requirements and procedures in order to facilitate trade between the Parties (Article 6.2).  Article 6.3 
includes a  best-endeavour provision to apply simplif ied import and export procedures for traders or 
economic operators which meet specific criteria decided by a Party.  
3.39.  Fees and charges shall only be imposed for services, different from consular services, provided 
in connection with the importation or expor tation in question or for any required formality, they shall 
not exceed the approximate cost of the service provided and they shall not be  calculated on an  
ad valorem  basis (Article 6.9).  
 
14 The Article applies to s ubsidies received only after the entry into force of the Agreement. 
Article  11.11(b) does not apply to subsidies granted as compensation for carrying out public service obligations 
and to the coal industry.  WT/REG431/1  
 
- 19 - 
 
  3.40.  The WTO Customs Valuation Agreement is incorporated into and made pa rt of the Agreement, 
mutatis mutandis  (Articles 2.12 and 6.12).15  
3.41.  Upon written request from traders, each Party shall issue written advance rulings, through its 
customs authorities , prior to the importation of a good into its territory in accordance with its laws 
and regulations, on tariff classification, origin or any other such matters as the Party may decide 
(Article 6.6). Article 6.7 provides for appeal procedures.  
3.42.  Articles 6.5  and 6.15 provide for transparency requirements and customs contact points. 
Provisions on c ooperation and mutual administrative assistance in customs matters are included in 
Articles 6.13 and  6.14. 
3.43.  The Customs Committee is established to ensure the proper functioning of Chapter 6 of the 
Agreement , the Protocol concerning the Definition of "Originating Products" and Methods of 
Administrative Cooperation and the Protocol on Mutual Administrative Assistance in Customs Matters 
and examine all issues arising fro m their application. (6.16 ). 
3.4.6   Other regulations  
3.44.  There are no other specific regulations in the Agreement.  
3.5  Sector -specific provisions on trade in goods  
3.5.1   Electronics  
3.45.  Annex 2 -B includes provisions specific to electronics  defined in Appendix 2 -B-1. Article 2 of 
Annex 2 -B highlights the role of the International Organization for Standards, the Electrotechnical 
Commission and the International Telecommunications Union as the relevant international 
standard s-setting bodies for electromagnetic compatibility and safet y of covered products.  
3.46.  Article 3 provides, inter alia , a list of conformity assessment procedures that a Party 
recognizes in case it requires a positive assurance of conformity with technical regulations on 
electromagnetic compatibility and safety. Korea may continue to require positive assurance of 
conformity with its technical regulations on  the safety of covered products with a certificate  based 
on a test report issued by testing laboratories under certain conditions for the products listed in 
Appendix 2 -B-3 (Article 4).16 Exceptions and emergency measures are included in Article 6.  
3.47.  Three years after the entry into force of the Agreement, and every five years thereafter, the 
Parties shall review the possibility of gradually eliminating technica l and administrative requirements 
including mandatory third -party testing (Article 5).  
3.5.2   Motor vehicles and parts  
3.48.  Annex 2 -C of the Agreement contains provisions addressing non -tariff measures applicable to 
motor road vehicles, systems and parts.  The Parties commit to cooperate on more regulatory 
convergence , using in particular , the World Forum for Harmonization of Ve hicle Regulations (WP29), 
within the framework of the United Nations Economic Commission for Europe (UN/ECE), which is 
recognized as the relevant international standard s setting body for the products  covered by the 
Annex . They accept any product that compl ies with the requirements listed in Table 1 of 
Appendi ces 2-C-2 (74 products for the UK) and 2 -C-3 (51 products for Korea)  and harmonize the 
regulations listed in Table 2 of the Appendices  (one regulation for the UK and 29 for Korea) . A review 
of these req uirements, to enhance the acceptance of products on the basis of their compliance with 
UN/ECE Regulations, is foreseen every three years.  
3.49.  Article 4 of Annex 2 -C provides for the consolidation of regulatory convergence , including 
refraining from introducin g new technical regulations diverging from UN/ECE Regulations  and a 
 
15 The reservations and options provided for in Ar ticle 20 and paragraphs 2 through 4 of Annex III of the 
WTO Customs Valuation Agreement  are not applicable.  
16 53 products are listed in the Appendix.  WT/REG431/1  
 
- 20 - 
 
  requirement to review any that do diverge at least every three years from the  entry into force of the  
Agreement . 
3.50.  With respect to internal taxes and emission regulations on motor vehicles a nd parts, MFN 
treatment is granted to products originating in the other Party in relation with like products 
originating in any non -party, including as provided in any free trade agreement with such non -party 
(Article 5 of Annex 2 -C). 
3.51.  Unless it can demonstrate, based on scientific or technical information, that a new technology 
or new features of motor vehicles create a risk for human health, safety or the environment, neither 
Party shall prevent or unduly delay the placing on its market of a new pro duct (Article 6 of 
Annex  2-C). Any refusal must be immediately notified to the other Party .  
3.52.  An accelerated dispute settlement mechanism is established to ensure compliance with the 
specific rules applicable to the motor vehicle sector (Article 10 of Annex  2-C). Moreover, monitoring 
of the implementation of commitments is undertaken through a Working Group on Motor Vehicle 
and Parts (Article 9 of Annex 2 -C). 
3.5.3   Pharmaceutical products and medical  
3.53.  Annex 2 -D of the Agreement contains  provisions specific to phar maceutical products and 
medical devices. T he Parties  commit to promote the development of and to facilitate access to 
high-quality patented and generic pharmaceutical products and medical devices  (Article 1 of 
Annex  2-D). 
3.54.  Article 2 of Annex 2 -D provides fo r fair, transparent, reasonable, and non -discriminatory 
procedures, rules, criteria and guidelines for the listing, pricing and reimbursement of 
pharmaceutical products and medical devices. I mproper inducements by manufacturers and 
suppliers to health care  professionals or institutions for the listing, purchasing or prescribing of 
pharmaceutical products and medical devices eligible for reimbursement under health care 
programmes  is prohibited  (Article 4 of Annex 2 -D). Transparency and regulatory cooperation  
provisions are included in Articles 3 and 5 of Annex 2 -D. A Working Group on pharmaceutical 
products and medical devices is established with the objective of monitor ing the implementing  
Annex  2-D.  
3.5.4   Chemicals  
3.55.  Annex 2 -E of the Agreement reaffirms the Partie s rights and obligations under the WTO TBT 
Agreement and underlines the importance of transparency and due process when regulating and 
operating chemical management regimes. It also commits the Parties to applying, whenever 
possible, best practices with re spect to the adoption and implementation of legislation, risk 
assessment and registration, authorization, notification and treatment of confidential business 
information, and to cooperating in the area of Good Laboratory Practices and Test Guidelines. With  
a view to promoting co -operation, a Working Group on Chemicals is established by the Agreement.  
4  PROVISIONS ON TRADE IN SERVICES  
4.1.  Chapter 7 of the Agreement and its Annexes contain provisions specific to trade in services, 
establishment and electronic comme rce. It is divided into seven Sections: general provisions,  cross-
border supply of services,  establishment,  temporary presence of natural persons for business,  
regulatory framework,  electronic commerce, and  exceptions.  
4.1  Scope and definitions  
4.2.  The Parties rea ffirm their rights and obligations under the WTO Agreement (Article 7.1). 
Chapter 7 does not apply to subsidies or grants provided by a Party, to measures affecting natural 
persons seeking access to the employment market of a Party, to measures regarding c itizenship, 
residence or employment on a permanent basis. Nothing in the Chapter shall be construed to impose 
any obligation with respect to government procurement.  WT/REG431/1  
 
- 21 - 
 
  4.3.  Section B and C of Chapter 7 do not apply to measures affecting the cross -border supply or 
establishment of audiovisual services, national maritime cabotage, domestic and international air 
transport services and services directly related to the exercise of  traffic rights, other than i) aircraft 
repair and maintenance services, ii) the selling and marketing of air transport services, iii) CRS 
services and iv) other services auxiliary to air transport services (Articles 7.4 and 7.10). Moreover, 
Section C does  not apply to measures affecting the establishment of mining, manufacturing and 
processing of nuclear materials and the production of, or trade in, arms, munitions and war material.  
4.2  Denial of benefits  
4.4.  The Agreement does not contain a specific provision on denial of benefits but, as customary in 
trade agreements of the EU, a Party may deny the benefits of Chapter 7 to a juridical person, 
registered in the UK or in Korea, if it does not engage in substantive business operation s (Article  7.2). 
4.3  General provisio ns on trade in services  
4.3.1   Market access  
4.5.  Market Access commitments for cross -border supply and establishment are contained in Annex 
7-A. For modes 1, 2 and 3 in the sectors and  sub-sectors included in the Annex, limitations are 
defined in terms of  i) the numb er of service suppliers  or establishment , ii) the total value of 
transactions or assets in the form of numerical quotas or the requirement of an economic needs 
test, and  iii) the total number of operations or on the total quantity of output (Article 7.5  and 7.11 ). 
In addition, for mode 3, limitations can take the form of maximum percentages on the participation 
of foreign capital or requirements on specific types of legal entity or joint ventures and restriction s 
on the total number of natural persons emplo yed (Article 7.11).  
4.3.2   National treatment and MFN  
4.6.  National Treatment is granted , subject to conditions and qualifications set out in Annex 7 -A, 
by a Party , to services , service providers , establishments and investors of the other Party for the 
sectors where market access commitments were taken (Articles 7.6 and 7.12).  
4.7.  The Parties agree to grant MFN treatment to services , service providers , establishments and 
investors in relation with othe r preferential treatment which may be granted through economic 
integration agreements signed after the entry into force of the Agreement  unless such preferential 
treatment is granted under sectoral or horizontal commitments for which the regional economic 
integration agreement stipulates a significantly higher level of obligations than that undertaken in 
the context of Section s B and C of the Agreement. Annex 7 -B of the Agreement clarifies that 
"significantly higher level"  means that obligations stipulated in a regional economic integration 
agreement shall either create an internal market on services and establishment or encompass both 
the right of establishment and the approximation of legislation.  Exemptions from the application of 
the MFN treat ment are foreseen also for i) measures providing for the recognition of qualifications, 
licences or prudential measures in accordance with Article VII of GATS or the GATS Annex on 
Financial Services ii) any international agreement or arrangement relating w holly or mainly to 
taxation and iii) measures listed in Annex 7 -C. 
4.3.3   Commercial presence  
4.8.  The Agreement does not contain general provisions on commercial presence requirements, but 
some  specific  requirements are listed in the Schedule of Specific commitments for the UK and Korea  
in specific sub -sectors.17  
 
17 Commercial presence is required , for example,  for the supply of architectural services, real estate 
brokerage and appraisal services, testing and analysis services of physical properties, surface surveying and 
map-making services excluding services related to cadastral survey in Korea.  WT/REG431/1  
 
- 22 - 
 
  4.3.4   Movement of natural persons  
4.9.  Section D of Chapter 7 covers  the temporary presence of natural persons for business  and 
applies to measures concerning the entry and temporary stay  of key personnel, graduate tra inees, 
business services sellers, contractual service suppliers and independent professionals  (Article 7.17) . 
4.10.  Article 7.18 establishes that for every sector liberalized in accordance with Section C (on 
establishment) and subject to any reservation listed i n Annex 7 -A, each Party shall allow investors 
of the other Party to transfer employees as long as they are key personnel , graduate trainees  or 
business service sellers. Prohibited measures are defined as limitations on the total number of 
natural persons t hat an investor may transfer and discriminatory limitations. Unless otherwise 
provided in Annex 7 -A, nationality or residency requirements for senior management positions are 
not allowed.  
4.11.  The maximum periods indicated for the temporary entry and stay for different categories of 
businessperson are i) three years for intra -corporate transferees, ii) 90 days in any 12 -month period 
for business visitors and business service sellers and iii) one year for graduate trainees.  The duration 
of stay under the Agreeme nt differ from those under the GATS: for the UK, the duration of temporary 
stay of intra -corporate transfer ees, business visitors and contractual service suppliers  is defined by 
the UK laws and regulations regarding entry, stay and work ; neither Party made  commitments for 
graduate trainees  in the GATS . 
4.12.  No later than two years after the conclusion of negotiations on Article XIX of the GATS and 
the Doha Declaration, t he Parties shall also adopt a decision on commitments concerning the access 
of contractual service supplier and independent professionals  (Article 7.20) . 
4.4  Liberalization commitments  
4.13.  The liberalization of trade in services and investment takes the form of a positive list of specific 
commitments, comparable to the approach used in the G ATS. The sectors liberalized by each Party 
are listed in Annex 7 -A containing market access and national treatment limitations and conditions 
applicable  to services, service suppliers, establishment and investors of the other Party (Articles 7.7 
and 7.13) . Neither Party may adopt new or more discriminatory measures as compared to those 
listed in Annex 7 -A. Korea's liberalization commitments under the Agreement are identical to those 
under the EU -Korea Agreement.  
4.14.  For the UK, market access and national treat ment specific commitments are contained in 
Annex 7 -A-1 for cross -border supply of services, Annex 7 -A-2 for establishment and Annex 7 -A-3 
for key personnel and graduate trainees. For Korea, Annex 7 -A-4 contains Korea's market access 
and national treatment specific commitments for all modes of supply.  The UK's liberalization 
commitments under the Agreement are identical to those under the EU -Korea Agreement.  
4.4.1   Korea  
4.4.1.1   MFN and horizontal commitments  
4.15.  In its horizontal GATS commitments, Korea maintains market acces s and national treatment 
limitations on commercial presence : i) the acquisition  of outstanding stocks and bonds of existing 
domestic companies is restricted with some specific exceptions, ii) the amount of foreign direct 
investment must be at least 50 mill ion Won, iii) the acquisition of land  is unbound with some 
exceptions, iv) only companies established in Korea are eligible for subsidies, including tax benefits, 
and v) research and development subsidies are unbound . Horizontal limitations are also schedu led 
for mode 4.  
4.16.  Under the Agreement, Korea maintains  a different set of  horizontal limitations on market 
access for mode 3 with respect to i) the acquisition of outstanding stocks of existing domestic 
companies  in areas such as energy and aviation , ii) the  transfer of equity interests or assets held by 
state enterprises or governmental authorities and the privatization of services provided in the 
exercise of governmental authorit y, iii) the rights or preferences granted to socially or economically 
disadvantaged groups and iv) measures related to state -owned electronic information system s. 
Horizontal limitations on national treatment are also maintained for measures with respect to i) the WT/REG431/1  
 
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  acquisition of arms  (for modes 1, 2 and 3) , ii) the export of controlled commodities, software, and 
technology (for modes 1 and 2) and iii) the acquisition of land in certain situation s (for mode 3) . 
Horizontal limitations are also registered for mode 4.  
4.17.  In Annex 17 -C, Korea included 14 MFN exemptions. Two exceptions apply to all sectors,  and 
one refers to disadvantaged groups. T he remainder are sector specific and relate to transport 
(6 exceptions ), social services (2), communication services (1), education services (1) and 
recreational  services (1).  
4.4.1.2   Sector specific commitments  
4.18.  Annex 7 -A-4 includes Korea's list of commitments for cross -border services, establishment 
and movement of people (in conformity with Articles 7.18 and 7.19 - Key personnel and graduate 
trainees and business service se llers).18 Table 4.1 provides a comparison of Korea's GATS 
commitments in modes 1 -3 with those taken under the Agreement. Horizontal limitations and MFN 
reservations are not considered in the table which should be read in conjunction with Annex 7 -A-4 
to the Agreement.  
Table 4.1 Korea:  Comparison between the GATS and Agreement specific commitments  
Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  Investment  
Sector 
coverage  Commit -
mentsa Sector 
coverage  Commit -
mentsa 
1. Business services        
A. Professional  Services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Computer  and Related  Services  Full Same  Full Full Full Full 
C. Research  and Development  Services  Partial  Improved  Full Partial  Partial  Partial  
D. Real  Estate  Services  --- New Partial  Partial  Partial  Full 
E. Rental/Leasing  Services  without   
Operators  Partial  Improved  Partial  Partial  Partial  Partial  
F. Other  Business  Services  Partial  Improved  Partial  Partial  Partial  Partial  
2. Communication services        
A. Postal  services  ---   --- --- --- --- --- 
B. Courier  services  --- New Partial  Partial  Partial  Partial  
C. Telecommunication  services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Audiovisual services  Partial  --- --- --- --- --- 
E. Other  --- --- --- --- --- --- 
3. Construction and related 
engineering services        
A. General  construction  work for buildings  Partial  Improved  Full Full Full Full 
B. General  construction  work for civil  
Engineering  Partial  Improved  Full Full Full Full 
C. Installation  and assembly  work  Partial  Improved  Full Full Full Full 
D. Building  completion  and finishing  work  Partial  Improved  Full Full Full Full 
E. Other  Partial  Improved  Full Full Full Full 
4. Distribution services        
A. Commission  agents'  services  Partial  Improved  Partial  Partial  Partial  Full 
B. Wholesale  trade  services  Partial  Improved  Partial  Partial  Partial  Partial  
C. Retailing  services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Franchising  Partial  Improved  Partial  Full Partial  Full 
E. Other  --- --- --- --- --- --- 
5. Education services        
A. Primary education services  --- --- --- --- --- --- 
B. Secondary education services  --- --- --- --- --- --- 
C. Higher education services  --- New Partial  Partial  Partial  Partial  
D. Adult education  --- New Partial  Partial  Partial  Partial  
E. Other education services  --- --- --- --- --- --- 
6. Environmental services        
A. Sewage services  Partial  Improved  Partial  Full Partial  Partial  
B. Refuse disposal services  Partial  Improved  Partial  Full Partial  Full 
C. Sanitation and similar services  --- --- --- --- --- --- 
D. Other  Partial  Improved  Partial  Full Partial  Full 
7. Financial services        
A. All insurance  and insurance -
related  services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Banking  and other  financial  services  Partial  Improved  Partial  Partial  Partial  Partial  
 
18 Part B of Annex 7 -A-4 includes reservations on establishment in agriculture and manufacturing  
sectors . WT/REG431/1  
 
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  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  Investment  
Sector 
coverage  Commit -
mentsa Sector 
coverage  Commit -
mentsa 
8. Health related and social services        
A. Hospital services  --- --- --- --- --- --- 
B. Other Human Health Services  --- --- --- --- --- --- 
C. Social Services  --- --- --- --- --- --- 
D. Other  --- --- --- --- --- --- 
9. Tourism and travel related services        
A. Hotels  and restaurants (including 
catering)  Partial  Improved  Partial  Partial  Partial  Full 
B. Travel  agencies  and tour operators   
services  Partial  Improved  Full Full Full Full 
C. Tourist  guides  services  Partial  Improved  Full Full Full Full 
D. Other  --- --- --- --- --- --- 
10. Recreational and cultural and 
sporting services        
A. Entertainment  services  --- New Partial  Partial  Partial  Partial  
B. News agency services  --- New Full Partial  Full Partial  
C. Libraries, archives, museums and other 
cultural services  --- --- --- --- --- --- 
D. Sporting and other recreational services  --- --- --- --- --- --- 
E. Other  --- New Partial  Full Partial  Full 
11. Transport services        
A. Maritime Transport Services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Internal Waterways Transport  --- --- --- --- --- --- 
C. Air  Transport  Services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Space  Transport  --- --- --- --- --- --- 
E. Rail  Transport  Services  --- New Partial  Partial  Partial  Partial  
F. Road  Transport  Services  Partial  Improved  Partial  Partial  Partial  Partial  
G. Pipeline  Transport  --- New Partial  Partial  Partial  Full 
H. Services  auxiliary  to all modes  of  
transport  Partial  Same  Partial  Full Partial  Full 
I. Other  Transport  Services  Partial  Improved  Partial  Partial  Partial  Full 
12. Other services not included 
elsewhere  --- New Partial  Full --- --- 
Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations are not included.  
a Information in this column refers only to commitments in sectors or sub -sectors covered under the 
Agreement.  
Full: Specific commitments not subject to limitation( s) under market access or national treatment.  
Partial:  Specific commitments subject to some limitation(s) under market access or national treatment.  
---: No specific commitment; sector or subsector excluded from the GATS and /or the Agreement.  
New: New commitments full or partial, with or without limitations.  
Improved: Overall improved commitments under the Agreement compared to those under the GATS.  
Source :  Korea 's schedules annexed to the Agreement  and Korea's Draft consolidat ed Schedule of Specific 
Commitments  (S/DCS/W/KOR/Rev.1 ). 
 
4.4.1.2.1   Business services  
4.19.  Improvements of commitments in professional  services  include the addition, with some 
limitations, of legal services , veterinary services , investigation and security services, building -
cleaning services, some publishing services and specialty design services . Korea also allows certified 
public accountants of the UK and other services providers to supply services such as, inter alia , 
accounting  and taxation  services  under certain conditions. Cross -border trade and consumption 
abroad of r esearch and development services on natural sciences and interdisciplinary research and 
development services are liberalized compared to the GATS while commercia l presence remains 
unbound . New commitments in r eal estate  brokerage and appraisal services are included with some 
limitations in modes 1 and 2.  Rental/leasing services without operator relating to ships , market 
research and public opinion polling services , consulting services related to agriculture, fishing and 
mining  are fully liberalized for mode s 1 and 2 under the Agreement compared to GATS  where no 
commitments were made .  
4.4.1.2.2   Communication services  
4.20.  Some courier services are partially liberalized under the Agreement but limited to  being 
provided by air or sea only and requiring a license subject to an economic needs test for trucking WT/REG431/1  
 
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  businesses. As for telecommunication services, the cross -border supply of television and radio 
signals transmission services t hrough satellite facilities is allowed without commercial arrangements 
and limitations on resale -based telecommunications services are removed.  
4.4.1.2.3   Construction and related engineering services  
4.21.  All limitations on market access and national treatment scheduled  under the GATS for all 
construction services when technically feasible  are eliminated under the Agreement . 
4.4.1.2.4   Distribution services  
4.22.  Improvements in distribution services include the removal of all limitations on market access 
for mode 2 of commission agents services, the removal of needs test requirements for some 
wholesale services such as large markets and wholesale trade centres. In retail services, the 
establishment of department stores and shopping centres is allowed  under the Agreement . And 
market access for retail trade and gas station business es related to LPG remains unbound but no 
limitations are kept on national treatment.  Franchising is  limited to the items allowed under 
wholesale trade and retailing services . 
4.4.1.2.5   Education services  
4.23.  Korea made commitments in certain higher and adult education services provided by private 
institutions which are not included in its GATS schedules.  
4.4.1.2.6   Environmental services  
4.24.  In environmental services, Korea liberalized c ollection and treatment services for 
non-industrial wastewater with limitations on mode 3 while it eliminated commercial presence 
requirements for industrial refuse disposal services. It also fully liberalized other environmental 
services not included in its GATS schedules such as s oil remediation and groundwater purification 
and environment consulting services.  
4.4.1.2.7   Financial services  
4.25.  Financial services are subject to a number of provisions listed in the headnotes of the specific 
commitments including, inter alia , the limitation that in order to establish or acquire a controlling 
interest in a financial service supplier in Korea, a foreign investor must own or control a financial 
service supplier that engages in supplying financial services within the same financial services sub -
sector in its home country and Korea's ability to impose a residenc y requirement on the chief 
executive officer of financial service suppliers. Insurance a nd insurance -related services remain 
unbound except for insurance of risks relating to maritime shipping , commercial aviation , space 
launching and freight (including satellites), goods in international transit, reinsurance and 
retrocession, services auxili ary to insurance and insurance intermediation. At the same time, 
limitations on commercial presence are eliminated except that only two employees of a commercial 
bank, mutual saving bank, or securities company may sell insurance products at any one time at  a 
single location. The cross -border supply of b anking and other financial services remain s unbound 
except for the provision and transfer of financial information and the provision and transfer of 
financial data processing and related software for banking and other financial services and advisory 
and other auxiliary services, excluding intermediation.  Among other limitations for mode 3 scheduled 
in the Agreement, certain types of business such as credit unions, mutual savings banks, specialized 
capital fina nce companies  and merchant  banks , may not be conducted by a branch of a financial 
service supplier constituted under the laws of another country . Ownership of more than 10% of the 
shares of a Korean commercial bank or bank holding company is allowed only f or internationally 
recognized financial institution s defined as any financial institution that has been rated by an 
international rating organisation at a level acceptable to the relevant Korean regulator.19  
 
19 A financial institution can demonstrate by alternative means acceptable to the relevant Korean 
regulator that it has an equivalent status.  WT/REG431/1  
 
- 26 - 
 
  4.4.1.2.8   Tourism and travel related services  
4.26.  The coverage of hotels and restaurant s under the Agreement is slightly wider with the 
inclusion of beverage serving services without entertainment ( except rail and air transport related 
facilities).  
4.4.1.2.9   Recreational and cultural and sporting services  
4.27.  In entertainm ent services, Korea liberalized, with some limitations, services provided by 
individual artists or group s and new agency services . Recreation Park  services , excluding beach 
services,  are fully liberalized.  
4.4.1.2.10   Transport services  
4.28.  Regarding maritime transport services, c abotage services remain unbound . The cargo 
preference system applicable to certain products in relation to b ulk, tramp, and other international 
shipping services and the registration requirement for the establishment of a company to op erate a 
fleet under the national flag of Korea for cargo transport have been removed under the Agreement . 
Additional commitment s were made for the rental of vessels  and aircrafts  with crew, pushing and 
towing , tally, measuring and survey service s, maintena nce and repair of aircraft and rail, 
ground -handling services, some services auxiliary to rail transport services, which were not included 
in the GATS. Passenger and freight rail transportation are also partially liberalized  under the 
Agreement . Rental of non-scheduled services of buses with operators and maintenance and repair 
of road equipment are also liberalized except that mode 1 remains unbound and the establishment 
of commercial presence is subject to an economic needs test for maintenance  and repair . As for 
other transport services, the coverage is the same as under the GATS but licences and business area 
restrictions for combined transport services and freight forwarding for rail transport are removed.   
4.4.1.2.11   Other services not included elsewhere  
4.29.  Under ot her services, hairdressing and other beauty services are liberalized except for mode 
3 which remain s unbound.  
4.4.2   United Kingdom  
4.4.2.1   MFN and horizontal commitments  
4.30.  In its horizontal GATS commitments, the UK maintains a market access limitation on 
commercial presence for public utilities which may be subject to public monopolies or to exclusive 
rights granted to private operators. National treatment limitations on mode 3 are maintained with 
respect to i) legal entities of branches, age ncies, and representative offices and subsidiaries, 
ii) subsidies for branches established in the UK by a company of another WTO Member and subsidies 
for research and development. Horizontal limitations are also scheduled for mode 4.  
4.31.  Under the Agreement, t he UK maintains the limitation on public utilities and treatment 
accorded to subsidiaries of Korean companies formed in accordance with UK law and having their 
registered office, central administration or principal place of business within the UK is not ex tended 
to branches or agencies.  
4.32.  In Annex 7 -C the UK lists 9 MFN exemptions , two of which apply to all sectors. T he other 
exceptions are sector specific and refer to transport  and auxiliary services (6 exceptions ) and 
fisheries (1  exception ).  
4.4.2.2   Sector speci fic commitments  
4.33.  Annexes 7 -A-1 and 7 -A-2 include the UK's list of commitments for cross -border services and 
establishment respectively.20 Annex 7 -A-3 includes the list of reservations in conformity with 
Articles  7.18 and 7.19 (Key personnel and graduate tra inees and business service sellers).  
 
20 Annex 7 -A-2 also inclu des reservations on establishment in agriculture and manufacturing  sectors . WT/REG431/1  
 
- 27 - 
 
  4.34.  Table 4.2 provides a comparison of the UK's GATS specific commitments in modes 1 -3 with 
those taken under the Agreement.21 Horizontal limitations and MFN reservations are not considered 
in the table which should be read in conjunction with Annexes 7 -A-1, 7-A-2 and 7 -A-3 to the 
Agreement.  
Table 4.2 United Kingdom : Compari son between the GATS and Agreement specific 
commitments  
Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  Investment  
Sector 
coverage  Commit -
mentsa Sector 
coverage  Commit -
mentsa 
1. Business services        
A. Professional  Services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Computer  and Related  Services  Full Same  Full Full Full Full 
C. Research  and Development  Services  Partial  Improved  Full Partial  Full Partial  
D. Real  Estate  Services  Full Same  Full Full Full Full 
E. Rental/Leasing  Services  without   
Operators  Partial  Improved  Partial  Partial  Partial  Partial  
F. Other  Business  Services  Partial  Improved  Partial  Partial  Partial  Partial  
2. Communication services         
A. Postal  services  --- New Partial  Full Partial  Full 
B. Courier  services  ---  New Partial  Full Partial  Full 
C. Telecommunication  services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Audiovisual  services  ---  --- --- --- --- --- 
E. Other  --- --- --- --- --- --- 
3. Construction and related 
engineering services          
A. General  construction  work for buildings  Partial  Improved  Full Full Full Full 
B. General  construction  work for civil  
Engineering  Partial  Improved  Full Full Full Full 
C. Installation  and assembly  work  Partial  Improved  Full Full Full Full 
D. Building  completion  and finishing  work  Partial  Improved  Full Full Full Full 
E. Other  Partial  Improved  Full Full Full Full 
4. Distribution services         
A. Commission  agents'  services  Partial  Same   Partial  Full Partial  Full 
B. Wholesale  trade services  Partial  Same  Partial  Full Partial  Full 
C. Retailing  services  Partial  Same  Partial  Full Partial  Full 
D. Franchising  Partial  Same  Partial  Full Partial  Full 
E. Other  --- --- --- --- --- --- 
5. Education services         
A. Primary education services  Partial  Narrower  Partial  Full Partial  Partial  
B. Secondary education services  Partial  Narrower  Partial  Full Partial  Partial  
C. Higher education services  Partial  Narrower  Partial  Full Partial  Partial  
D. Adult education  Partial  Same  Partial  Full Partial  Full 
E. Other education services  --- --- --- --- --- --- 
6. Environmental services         
A. Sewage services  Partial  Improved  Partial  Full Full Full 
B. Refuse disposal services  Partial  Improved  Partial  Full Full Full 
C. Sanitation and similar services  Partial  Improved  Partial  Full Full Full 
D. Other  Partial  Improved  Partial  Full Full Full 
7. Financial services         
A. All insurance  and insurance -
related  services  Partial  Improved  Partial  Partial  Partial  
 Partial  
 
B. Banking  and other  financial  services  Partial  Improved  Partial  Partial  Partial  
 Partial  
8. Health related and social services         
A. Hospital services  Partial  Same  Partial  Partial  Partial  Partial  
B. Other Human Health Services  --- New Partial  Partial  --- --- 
C. Social Services  Partial  Same  Partial  Partial  Partial  Partial  
D. Other  --- --- --- --- --- --- 
9. Tourism and travel related 
services         
A. Hotels  and restaurants (including 
catering)  Partial  Same  Partial  Partial  Partial  Full 
B. Travel  agencies  and tour operators   
services  Full Same  Full Full Full Full 
C. Tourist  guides  services  Full Same  Full Full Full Full 
D. Other  --- --- --- --- --- --- 
 
21 As of the date of this factual presentation, there is no certified UK Schedule of Specific Commitments 
therefore the proposed draft (circulated as document S/C/W/380) is used for  the comparison.  WT/REG431/1  
 
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  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  Investment  
Sector 
coverage  Commit -
mentsa Sector 
coverage  Commit -
mentsa 
10. Recreational and cultural and 
sporting services         
A. Entertainment  services  Partial  Same  Partial  Full Partial  Full 
B. News agency services  Full Same  Full Full Full Full 
C. Libraries, archives, museums and 
other cultural services  --- --- --- --- --- --- 
D. Sporting and other recreational 
services  Partial  Same  Partial  Full Full Full 
E. Other  --- New Partial  Full Partial  Full 
11. Transport services         
A. Maritime Transport Services  --- New Partial  Partial  Partial  Partial  
B. Internal Waterways Transport  --- New Partial  Partial  Partial  Partial  
C. Air  Transport  Services  Partial  --- --- --- --- --- 
D. Space  Transport  --- --- --- --- --- --- 
E. Rail  Transport  Services  Partial  Improved  Partial  Partial  Partial  Partial  
F. Road Transport  Services  Partial  Same  Partial  Partial  Partial  Partial  
G. Pipeline  Transport  ---  New --- --- Partial  Full 
H. Services  auxiliary  to all modes  of  
transport  Partial  Improved  Partial  Partial  Partial  Partial  
I. Other  Transport  Services  Partial  Improved  Partial  Partial  Partial  Partial  
12. Other services not included 
elsewhere  ---  New Partial  Partial  Partial  Full 
Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations are not included.  
a Information in this column refers only to commitments in sectors or sub -sectors covered under the 
Agreement.  
Full: Specific commitments not subject to limitation(s) under market access or national treatment.  
Partial:  Specific commitments subject to some limitation(s) under market access or national treatment.  
---: No specific commitment; sector or subsector excluded from the GATS and /or the Agreement.  
New: New commitments full or partial, with or without limitations.  
Improved:  Overall improved commitments under the Agreement compared to those under the GATS.  
Narrower: Some additional limitations as compared to GATS commitments.  
 
Source:  The UK schedules annexed to the Agreement  its GATS Specific Commitments  (S/C/W/380) . 
 
4.4.2.2.1   Business services  
4.35.  The coverage of p rofessional services under the Agreement is expanded with the inclusion of 
commitments on certain legal services and veterinary laboratory and  technical services which are 
not included in the UK's GATS schedules. The UK also liberalized, with some limitations, research 
and development services on  natural sciences and interdisciplinary R&D . In rental/leasing services 
without operators , the UK has  added telecommunications equipment rental services . In other 
business , photographic  services, packaging  services , telecommunications consulting services and 
telephone answering services are fully liberalized  under the Agreement . 
4.4.2.2.2   Communication services  
4.36.  The UK removed all limitations to a number of postal and courier services relating to the 
handling of postal items with some exceptions depending on the price relative to the public basic 
price and the weight of the items of correspondence.  In telecommunications, satellite broadcast 
transmission services are liberalized subject to the obligation to safeguard general interest objectives 
related to the conveyance of content in line with the United Kingdom regulatory framework for 
electronic co mmunications.  
4.4.2.2.3   Education services  
4.37.  Privately funded education services are fully liberalized for modes 1 and 2 as under the GATS. 
However, participation of private operators in primary, secondary and higher  education network s is 
subject to concession for mod e 3. WT/REG431/1  
 
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  4.4.2.2.4   Environmental services  
4.38.  The UK improved its GATS commitments for environmental services by liberalizing cross -
border trade in consulting services . 
4.4.2.2.5   Financial services  
4.39.  Under the GATS, the UK largely liberalized financial services and it commits to make i ts best 
endeavours to consider within 6 months complete applications for licenses to conduct direct 
insurance and underwriting business, banking activities , investment services in securities through 
the establishment in the UK of a subsidiary of undertakin gs governed by the laws of another WTO 
Member. Under the Agreement, direct insurance services and direct insurance intermediation 
services remain unbound except for insurance of risks relating to activities such as maritime 
shipping, commercial aviation, s pace launching and freight (including satellites) and goods in 
international transit. In banking and other financial services, cross-border trade remains largely 
unbound (with the exception of the provision of financial information and financial data proce ssing 
and for advisory and other auxiliary services excluding intermediation) while no limitations are 
maintained for mode 2. For mode 3, only firms having their registered office in the United Kingdom 
can act as depositories of the assets of investment fu nds. The establishment of a specialised 
management company, having its head office and registered office in the United Kingdom, is required 
to perform the activities of management of unit trusts and investment companies.  
4.4.2.2.6   Health related and social services  
4.40.  The UK removed all limitations on residential health facilities other than hospital services for 
mode 2 . 
4.4.2.2.7   Recreational and cultural and sporting services  
4.41.  While not included in the UK's GATS schedules, r ecreation park and beach services are fully 
liberalized  under the Agreement.  
4.4.2.2.8   Transport services  
4.42.  Under the Agreement, the UK included international maritime passenger and freight transport, 
except for cabotage, with no commitments on the establishment of a registered company for the 
purpose of operating a fleet  under the national flag of the UK. Internal waterways transport services 
are also included with limitations on some traffic rights to operators , nationality criteria regarding 
ownership  and the establishment of a registered company for the purpose of operating a fleet under 
the national flag of the UK. Rail transport services are included with no limitations for mode 2 and 
subject to a p ublic utilities ' reservation for mode 3. Limitation s in mode 3 are eliminated for pipeline 
transport of goods other than fuel. The coverage of services auxiliary to transport goes beyond 
storage and warehouse services, freight transport agency services and preshipment inspection. In 
other transport service s, combined transport services are fully liberalized conditional on the 
limitations affecting any given mode of transport.  
4.4.2.2.9   Other services not included elsewhere  
4.43.  In other services, the UK made new commitments on a number of other services such as 
washing, cleaning and dyeing, hairdressers and cosmetic treatments  
4.5  Regulatory provisions  
4.5.1   Domestic regulation  
4.44.  Article 7.23 contains general provisions on domestic regulation. It borrows language from 
paragraphs 2(a) and 3 of the GATS. It also calls for the  Parties to endeavour to ensure  that 
qualification requirements and procedures, technical standards and licensing requirements  are based 
on objective and transparent criteria  and, in the case of licensing procedures, are not in themselves 
a restriction on the supply of the services.  WT/REG431/1  
 
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  4.45.  The Parties will review the results of the negotiations on disciplines on qualifications, technical 
standards and licensing requirements by WTO Members under GATS Article VI:4, with a view to 
incorporating them into the Agreemen t. 
4.5.2   Recognition  
4.46.  The Agreement requests the Parties to encourage their relevant national representative 
professional bodies to jointly develop and provide recommendations to the Trade Committee on 
mutual recognition  (Article 7.21) . If the recommendation is c onsistent with the Agreement and there 
is a sufficient level of correspondence between the Parties' relevant regulations, they shall, through 
their competent authorities, negotiate an agreement on mutual recognition (MRA) of requirements, 
qualifications, l icences and other regulations.  The Agreement also establishes a Working Group on 
MRAs to consider mutual recognition -related matters and act as a contact point for issues relating 
to mutual recognition raised by relevant representative bodies in either Par ty. 
4.5.3   Subsidies  
4.47.  Article 11.15 states  that the Parties shall use their best endeavours to develop rules applicable 
to subsidies to services, taking into account developments at the multilateral level, and to exchange 
information upon the request of either Par ty. The Parties agree to hold the first exchange of views 
on subsidies to services within three years after the entry into force of the Agreement.  
4.5.4   Safeguards  
4.48.  The Agreement does not contain a safeguard mechanism for services but Article 7.30, 
described in Section 5.10   of the factual presentation, provides for competitive safeguards on major 
suppliers.  
4.49.  Where a Party has serious balance of payments and external financial difficulties, or threat 
thereof, it can adopt or maintain restrictive measures in relation to trade in services and 
establishment (Article 15.8). The Articl e also establishes a consultation mechanism to assess the 
situation and address the compliance of the measures with the provisions of the Agreement.  
4.5.5   Other  
4.50.  The Parties commit to respond to all requests for information on, inter alia , MRAs, standards 
and cri teria for licensing and certification through the mechanisms established under Chapter 12 
(Article 7.22 ), on transparency. The Parties ' regulatory authorities are required  to make publicly 
available all requirements for completing applications for the supp ly of a service and on request by 
the applicant  and provide the applicant with details of the status of the application.  
4.51.  The Parties shall  ensure that internationally agreed standards for regulation and supervision 
in the financial services sector and for  the fight against tax evasion and avoidance are implemented 
and applied (Article 7.24).  
4.6  Sector specific provisions on trade in services  
4.6.1   Computer services  
4.52.  Sub-section B of Section E of Chapter Seven  clarifies the meaning of computer services in the 
contex t of the liberalization of all modes of supply under the Agreement. The Parties understand 
that Division 84 of the CPC covers the basic functions used to provide all computer and related 
services (Article 7.25).22 At the same time, the Parties recognize th at there is a distinction between 
 
22 More specifically, computer and related services include all services that provide any of the following 
or any combination thereof:  
a) consulting, strategy, analysis, planning, specification, design, development, installation, 
implementation, integration,  testing, debugging, updating, support, technical assistance or management of or 
for computers or computer systems,  
 WT/REG431/1  
 
- 31 - 
 
  the enabling service , such as web -hosting or application hosting , and the core service that is being 
delivered electronically , such as banking, which  is not covered by CPC 84.  
4.6.2   Postal and courier services  
4.53.  Sub-section C of Section E of Chapter Seven  includes specific provisions for postal and courier 
services. The Trade Committee shall set out the principles of the regulatory framework applicable to 
postal and courier services not reserved to a monopoly  to address issues such as anti -competitive 
practices, universal service, individual licenses and the nature of the regulatory authority 
(Article  7.26).  
4.6.3   Telecommunications services  
4.54.  Sub-section D of Section E of Chapter Seven  sets out the principles of the regulatory 
framework for basic telecommunications services other than broadcasting (Article 7.27). It provides 
for the independence of regulatory authorities, simplified authorization procedures, competitive 
safeguards on ma jor suppliers, interconnection, number portability, allocation and use of scarce 
resources, universal service, confidentiality of information and a process for the resolution of 
telecommunications disputes.  
4.6.4   Financial services  
4.55.  Sub-section E of Section E of Chapter Seven  sets out the principles of the regulatory 
framework for all financial services liberalized under the Agreement (Article 7.37).  
4.56.  Article 7.38 provides for a prudential carve -out for the protection of investors, depositors, 
policy -holders or per sons to whom a fiduciary duty is owed by a financial service supplier , and the 
integrity and stability of the Parties' financial system.  
4.57.  Each Party shall permit a financial service supplier of the other Party to supply any new 
financial service that it would permit its own like financial service suppliers to supply without 
additional legislative action required (Article 7.42).  
4.58.  The dispute settlement mechanism of the Agreement applies to the settlement of disputes on 
financial services arising exclusively u nder Chapter 7 with some modifications (Article 7.45). The 
members of the arbitration panel are selected from a list of 15 individuals with expertise or 
experience in financial services law or practice established by the Trade Committee no later than six 
months after the entry into force of the Agreement. The complaining Party may suspend benefits in 
the financial services sector only if the measure under disputes is found to be inconsistent with the 
Agreement affects the financial services sector  (and any other sector) .  
4.59.  Article 7.46 provides for the possible recognition of prudential measures in determining how 
a Party's measures relating to financial services shall be applied. If a Party recognizes the prudential 
measures of a third party through an agree ment or arrangement, it shall afford adequate opportunity 
to the other Party to negotiate its accession to such agreement or arrangement, or to negotiate a 
comparable one. If the recognition is accorded autonomously, it shall afford adequate opportunity 
to the other Party to demonstrate that equivalent regulations exist.  
4.60.  The Sub -section also includes provisions on transparency, self -regulatory organizations, 
access to payment and clearing systems, data processing and specific exceptions.  
 
b) computer programs plus consulting, strategy, analysis, planning, specification, design, development, 
installation, implementation, integr ation, testing, debugging, updating, adaptation, maintenance, support, 
technical assistance, management or use of or for computer programs,  
c) data processing, data storage, data hosting or database services,  
d) maintenance and repair services for office m achinery and equipment, including computers, and  
e) training services for staff of clients, related to software, computers or computer systems, and not 
elsewhere classified.  WT/REG431/1  
 
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  4.61.  Additional commitments on financial services covering, inter alia , transfer of information, 
supply of insurance by the postal services to the public and sectoral cooperatives selling insurance, 
are included in Annex 7 -D 
4.6.5   International maritime transport ser vices  
4.62.  Sub-section F of Section E of Chapter Seven  sets out the principles regarding the liberalisation 
of international maritime transport (Article 7.47).  
4.63.  The Parties shall apply the principle of unrestricted access to international maritime markets 
and t rades on a commercial and non -discriminatory basis . They  shall grant  treatment no less 
favourable than that granted to domestic or third party ships, whichever is better, with regard to, 
inter alia , access to ports, the use of infrastructure and auxiliary maritime services of the ports  and 
access to berths and facilities for loading and unloading.  
4.64.  Future and existing c argo-sharing arrangements with third parties concerning international 
maritime transport services and unilateral measure s, which could const itute a disguised restriction 
or could have discriminatory effects , are not allowed .  
4.65.  Subject to the conditions inscribed in the Parties' schedules of commitments, e stablishment 
by international maritime service suppliers in a Party's territory is allowe d with treatment no less 
favourable than that accorded to domestic or third party suppliers.  
4.66.  The Article finally lists the services at the port  (such as pilotage, towing, fuelling, etc.)  that 
each Party shall make available to international maritime transpor t suppliers of the other Party on 
reasonable and non -discriminatory terms and conditions.  
5  GENERAL PROVISIONS OF THE AGREEMENT  
5.1  Transparency  
5.1.  Chapter 12 contains transparency provisions. It provides for the publication of , and the 
establishment or maintenance of , appropriate mechanisms for responding to and for administrative 
proceedings allowing for a consistent, impartial, and reasonable administration of enquiries 
regarding measures of general application that may have an impact on any matter cov ered by the 
Agreement (Article s 12.3, 12.4 and 12.5 ). 
5.2.  Article 12.6 provides for the establishment or maintenance of impartial and independent 
tribunals or procedures for review and appeal of administrative action. T he Parties shall co -operate 
in promoting regulatory quality and performance and to ensure good administrative behaviour 
(Article 12.7). Transparency standards used by the Parties shall ensure non -discrimination between 
nationals and persons from the other Party (Article 12.8).  
5.2  Current payments an d capital movements  
5.3.  The Parties shall authorize any payments and transfers on the current account of the balance 
of payments between their residents, in freely convertible currency and in accordance with the 
relevant IMF provisions (Article 8.1).  
5.4.  They shall not impose restri ctions on the movement of capital relating to direct investments 
made in accordance with the laws of the host country, investments, other transactions liberalized in 
accordance with Chapter 7, and to the liquidation and repatriation of related capital and generated 
profit (Article 8.2). Moreover, the Parties shall ensure the free movement of credits related to 
commercial transactions, financial loans and credits and capital participation in a juridical person 
with no intention of establishing or maintaining  lasting economic links. Article 8.2 also contains a 
stand -still commitment concerning any new restrictions on the movement of capital between 
residents of the Parties. Consultations are foreseen if necessary to further facilitate the movement 
of capital.  
5.5.  A Party may take , in exceptional circumstance, s afeguard measures with regard to capital 
movements (Article 8.4 ).  WT/REG431/1  
 
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  5.3  Exceptions  
5.6.  For trade in goods, GATT Article XX is incorporated into the Agreement (Article 2.15). For trade 
in services and establishment, Ar ticle 7.50 of the Agreement builds on GATS Article XIV. Exceptions  
for payments and capital movements , including for measures necessary to protect public security 
and public morals, to maintain public order, or to secure compliance with certain laws or reg ulations, 
are included in Article 8.3.  
5.7.  Security exceptions are also included in the Agreement through Article 15.9, which borrows 
language from GATT Article XXI, GATS Article XIVbis, and TRIPS Article 73.  
5.4  Accession and withdrawal  
5.8.  The Agreement has no provi sions for accession by third parties.  
5.9.  The Agreement is valid indefinitely. However, a Party may notify in writing the other Party of 
its intention to denounce it. In such a case, the denunciation takes effect six months after the 
notification (Article 15.1 1).  
5.5  Institutional framework  
5.10.  Chapter 15 of the Agreement includes institutional provisions. A Trade Committee is 
established in Article 15.1. Its functions include ensuring the proper operation of the Agreement and 
supervising its implementation and applic ation. The Trade Committee supervises the work of the 
specialized committees, working groups and other bodies established under Articles 15.2 and 15.3. 
It has the power to take decisions on all matters provided by the Agreement except on matter 
covered by the Protocol on Cultural Cooperation.  
5.11.  Article 15.2 establishes six Specialized committees : on Trade in Goods,  on SPS Measures, on 
Customs, on Trade in Services, Establishment and Electronic Commerce, on Trade and Sustainable 
Development and on Outward Processing Zones on the Korean Peninsula .  
5.12.  The first meeting of the Committee on Trade in Goods was held on 16  September 2021 . The 
Parties agreed to finalise the adoption of the Rules of Procedure for the Committee, to share their 
respective notifications of the Agreement to the WTO 's CRTA and methodological information on the 
development of data on preference utilisation rates, and to continue building on the trading 
relationships and to provide continuity and certainty for business following the UK’s exit from the 
EU.  
5.13.  To supervise and assess the implementation of Chapter 7 and to consider all related matters, 
the Agreement establishes  a Committee on Trade in Services, Establishment and Electronic 
Commerce (Article 7.3). The first meeting of the Committee was held on 21 December 2021. The 
Parties discussed a number of issues suc h as financial services market access barrier s related to 
data localisation and cooperation on digital trade.  
5.6  Dispute settlement  
5.14.  Chapter 14 establishes a dispute settlement mechanism based on and largely similar to the 
WTO Dispute Settlement Understanding except for the absence of an appeal stage and with some 
shortened deadlines.  
5.15.  Recourse to the dispute settlement provisions of Chapter 14 is without prejudice to dispute 
settlement action in the WTO framework. Where a Party initiates a dispute settlement proceeding in 
one forum with regard to a particular measure , it may not institute a dispute settlement proceeding 
regarding the same measure in the other forum until the first proceedings has been concluded.  
Additionally, a Party cannot seek redress of an identical obligation under the  Agreement and the 
WTO Agreem ent in the two  fora. The Party  must select one forum and use it to the exclusion of the 
other unless the forum selected first fails for procedural or jurisdictional reasons to make findings 
on the claim seeking redress of that obligation (Article 14.19) .  WT/REG431/1  
 
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  5.16.  Consultations with the aim of reaching a mutually agreed solution  are the first step in the 
process but if there is no agreement, the arbitration procedure outlined in Sub -section A of Section 
C is followed. A n arbitration panel, composed of three  arbitrators chosen by the Parties,23 can be 
established at the request of the complaining Party (Article 14.4 ). The panel shall issue an interim 
report within 90 days of the date of its establishment. Following the issuing of the interim panel 
report, the  arbitration panel ruling shall be issued within 120 days (or 60 days in urgent cases) of 
the date of the establishment of the panel.  
5.17.  Compliance with the arbitration panel ruling is disciplined by Sub -Section B of Section C. The 
Parties endeavour to agree  on the period of time to comply with the ruling. In case of disagreement, 
the original arbitration panel can be asked to determine the length of the reasonable period of time 
for compliance.  Before the end of the reasonable period of time, the Party compl ained against shall 
notify the complaining Party and the Trade Committee of any measure taken to comply with the 
ruling. In case of non -compliance, the Party complained against shall present , if requested by the 
complaining Party,  an offer for temporary co mpensation and if no agreement can be found, the 
complaining Party is entitled, upon notification, to suspend its obligations. A review of measures 
taken to comply after the suspension of obligations is conducted by the original panel, upon request 
by the Party complained against.  
5.18.  The Parties may reach a mutually agreed solution to a dispute under Chapter 14 at any time 
(Article 14.13).  
5.19.  Dispute settlement procedures under the Chapter are governed by Annex 14 -B and any 
hearing of the arbitration panel shall be open to the public in accordance with the Annex 
(Article  14.14).  Annex 14 -C includes the code of conduct for members of arbitration panels and 
mediators.  
5.20.  The Agreement also contains a mediation mechanism that the Parties may use to facilitate 
reaching a mutually agreed solution to non -tariff measures adversely affecting trade (Annex 14 -A 
of the Agreement). It may be used alternatively to or in parallel with the dispute settlement 
mechanism described above.  
5.7  Relationship with other agreements concluded by the parties  
5.21.  Unless specified otherwise, previous agreements between the UK and Korea are not 
superseded or terminated by the Agreement (Article 15.14). The Parties agree that nothing in the 
Agreement requires them to act in a manner  inconsistent with their obligations under the WTO 
Agreement.  Table 5.1 shows participation by the Parties in other RTAs in force, both notified and not 
notified to the WTO.  
Table 5.1 United Kingdom and Republic o f Korea : participation in other RTAs (notified 
and non -notified in force), as of 14 June 2022  
RTA Name  Entry into 
forcea Coverage  GATT/WTO Notification  
Year  WTO Provision  
UNITED KINGDOM  
United Kingdom – Iceland, 
Liechtenstein and Norway  01-Dec-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V   
United Kingdom – Mexico  01-Jun-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom - Serbia  20-May-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom - Albania  03-May-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom - Jordan  01-May-21 Goods  2021 GATT Art. XXIV  
United Kingdom - Ghana  05-Mar-21 Goods  2021 GATT Art. XXIV  
 
23 If the Parties are unable to agree, the arbitrators are picked from a list of 15  individuals established 
by the Trade Committee no later than six months after entry into force of the Agreement . The list of arbitrators 
was agreed in the first Trade Committee meeting in Feb ruary  2022 and the list can be found through: 
https://www.gov.uk/government/publications/arbitrators -for-uk-free-trade -agreements -ftas/arbitrators -for-
the-uk-republic -of-korea -free-trade -agreement -fta. WT/REG431/1  
 
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  RTA Name  Entry into 
forcea Coverage  GATT/WTO Notification  
Year  WTO Provision  
EU - United Kingdom  01-Jan-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom - Cameroon  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Canada  01-Jan-21 
01-Apr-21 Goods  
Services  2020 
2021 GATT Art. XXIV  
GATS Art. V  
United Kingdom - CARIFORUM 
States  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Central America  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom – Chile 01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Colombia  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Côte d'Ivoire  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Eastern and 
Southern Africa States  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Ecuador and Peru  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Egypt  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Faroe Islands  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Georgia  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Israel  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Japan  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Kenya  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Kosovob 01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Lebanon  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Morocco  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - North Macedonia  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Norway and 
Iceland  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Pacific States  01-Jan-21 Goods  2020 GATT Art. XXIV  
• United Kingdom - Pacific States - 
Accession of Samoa  01-Jan-21 Goods  2020 GATT Art. XXIV  
• United Kingdom - Pacific States - 
Accession of Solomon Islands  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Palestine  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Republic of 
Moldova  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - SACU and 
Mozambique  01-Jan-21 Goods  2021 GATT Art. XXIV  
United Kingdom – Singapore  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Switzerland - 
Liechtenstein  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Tunisia  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Türkiye  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Ukraine  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Viet Nam  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
REPUBLIC OF KOREA  
Republic of Korea - Central America  01-Oct-19 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Colombia  15-Jul-16 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  
China - Republic of Korea  20-Dec-15 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  
Republic of Korea - New Zealand  20-Dec-15 Goods & 
Services  2015 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Viet Nam  20-Dec-15 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  WT/REG431/1  
 
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  RTA Name  Entry into 
forcea Coverage  GATT/WTO Notification  
Year  WTO Provision  
Canada - Republic of Korea  01-Jan-15 Goods & 
Services  2015 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Australia  12-Dec-14 Goods & 
Services  2014 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Türkiye  01-May-13 
01-Aug-18 Goods  
Services  2013 
2022 GATT Art. XXIV  
GATS Art. V  
Republic of Korea - United States  15-Mar-12 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
Peru - Republic of Korea  01-Aug-11 Goods & 
Services  2011 GATT Art. XXIV & GATS Art. V  
EU - Republic of Korea  01-Jul-11 Goods & 
Services  2011 GATT Art. XXIV & GATS Art. V  
ASEAN - Republic of Korea  01-Jan-10 
14-Oct-10 Goods  
Services  2010 GATT Art. XXIV, Enabling Clause  
GATS Art. V  
Republic of Korea - India 01-Jan-10 Goods & 
Services  2010 GATT Art. XXIV, Enabling Clause 
& GATS Art. V  
EFTA - Republic of Korea  01-Sep-06 Goods & 
Services  2006 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Singapore  02-Mar-06 Goods & 
Services  2006 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Chile 01-Apr-04 Goods & 
Services  2004 GATT Art. XXIV & GATS Art. V  
Global System of Trade Preferences 
among Developing Countries 
(GSTP)  19-Apr-89 Goods  1989 Enabling Clause  
Asia Pacific Trade Agreement 
(APTA)  17-Jun-76 
17-Sep-13 Goods  
Services  1976 
2019 Enabling Clause  
GATS Art. V  
• APTA - Accession of China  01-Jan-02 Goods  2004 Enabling Clause  
• APTA - Accession of Mongolia  01-Jan-21 Goods & 
Services  Not notified  
  
Protocol on Trade Negotiations 
(PTN)  11-Feb-73 Goods  1971 Enabling Clause  
Regional Comprehensive Economic 
Partnership (RCEP)  01-Feb-22 Goods & 
Services  Not notified  
a Dates of the first entry into force/provisional application for at least one of the Parties. Where dates 
of provisional application have been provided by the Parties, further notifications to confirm the 
dates of entry into force are awaited.  
b Reference to Kosovo in this table shall be understood to be in the context of the United Nations 
Security Council resolution 1244 (1999).  
Source:  WTO Secretariat. Further information on these Agreements and on specific dates of entry into 
force/provisional applications may be found in the WTO Database on RTAs: http://rtais.wto.org .  
 
5.8  Government procureme nt 
5.22.  In Article 9.1, the Parties reaffirm their rights and obligations under the WTO Agreement on 
Government Procurement  (GPA).24 For all procurement covered by Chapter 9, the Parties agree to 
apply the revised GPA tex t with the exceptions of most favoured treatment for goods, services and 
suppliers of any other Party ( Article IV:1b  and Article IV:2 ), special and differential treatment for 
developing countries  (Article V ), conditions for participation  (Article VIII:2 ), institutions ( Article XXI ) 
and final provisions ( Article XXII ). The thresholds for covered procurement are the same as under 
the revised GPA.  
5.23.  Compared to the coverage of the GPA, the Agreement expands procurement opportunities to 
build-operate -transfer contr acts and public works concessions above 15  million SDR, as defined in 
and disciplined by Annex 9 of the Agreement  (Article 9.2) .25  
 
24 Korea and the UK are both Parties to the GPA.  
25 As regards the United Kingdom, Annex 9 covers public works concessions of the entities listed in 
Annexes 1 and 2 of the EU's Appendix I of the GPA. As regards Korea, Annex 9 covers build-operate -transfer 
contracts of the entities listed in Annexes 1 and 2  of Korea's Appendix I of the GPA and of all local 
governments located in Seoul City, Busan City, Incheon City and Gyonggi -do. WT/REG431/1  
 
- 37 - 
 
  5.24.  Article 9.3 establishes a Working Group on Government Procurement to address any matter 
related to the operation of Chapter 9. 
5.9  Intellectual property rights  
5.25.  Chapter 10 of the Agreement covers intellectual property  and complements and specifies the 
rights and obligations between the Parties under the TRIPS Agreement (Article 10.2) . The Parties 
shall ensure the implement ation of the international treaties on intellectual property to which they 
are party, including the WTO TRIPS Agreement.  They agree to exchange views and information on 
their practices and policies affecting the transfer of technology and to take measures to prevent or 
control licensing practices or conditions which may adversely affect technology transfer and which  
constitute abuses of intellectual property rights by right holders (Article 10.3).  
5.26.  Section B of Chapter 10 provides for standards concerning in tellectual property rights with 
specific sub -sections for A) c opyright and related rights , B) trademarks, C) geographical indications, 
D) designs, E) patents and F) other provisions.  
5.27.  Regarding copyright, the Parties expand their TRIPS commitment by agreei ng to comply with 
certain articles of the Rome Convention, the Berne  Convention, the WIPO Copyright Treaty and the 
WIPO Performances and Phonograms Treaty (Article 10.5) . Where the term of protection of a work 
is to be calculated on the basis of the life o f a natural person, t he duration of authors' rights is fixed 
at least the life of the author and 70 years after the author's death (Article 10.6) and the rights  of 
broadcasting organizations is not less than 50 years after the first transmission of a broad cast 
(Article 10.7).  
5.28.  With respect to  trademarks , the Parties shall provide for a system of registration 
(Article  10.14) and agree to comply with the Trademark Law Treaty and make reasonable efforts to 
comply with the Singapore Treaty on the Law of Tradema rks (Article 10.15) . Limited exceptions to 
the rights conferred by a trademark may also be provided by the Parties (Article 10. 16). 
5.29.  For geographical indications (GIs), the Parties  agree on a number of elements for the 
registration and control of GIs includ ing, inter alia , a register listing protected GIs, an administrative 
process verifying that GIs identify a good as originating  in a territory, region or locality of Korea or 
the UK, control provisions applying to production and an objection procedure (Article 10.17).26 The 
Parties commit to protect the GIs listed in Annex 10 -A (including 63 Korean agricultural products 
and foodst uffs) and 10 -B (including two British and one Korean spirits) of the Agreement.  
Article  10.24 provides that the Working Group on GIs established pursuant to Article 15.3 may 
decide to modify the Annexes  10-A and 10 -B. 
5.30.  In relation with designs, the TRIPS ob ligations are confirmed and , in some cases , expanded. 
The Parties agree to provide protection for independently created designs that are new  and that are  
original or have individual character  (Article 10.26) . The protection conferred by the Agreement is 
at least 15 years (compared to 10 years in the TRIPS Agreement) for registered designs and three 
years for unregistered appearance  (Article 10. 29).  
5.31.  With respect to  patents, the Parties agree to make all reasonable efforts to comply with 
Articles 1 through 1 6 of the Patent Law Treaty ( Article 10.32 ). The Agreement provides for the 
possible extension of up to five years of the duration of patent protection for pharmaceutical and 
plant protection products (Article 10.34). The protection  of data related to pharm aceutical and plant 
protection products should be respectively at least five and ten years starting from the date of the 
first marketing authorization obtained in the territory of the respective Party (Article s 10.35 and 
10.36 ). 
5.32.  Sub-section F includes other provisions on plant varieties, genetic resources, traditional 
knowledge and folklore.  
5.33.  Section C covers enforcement and complements the Parties' TRIPS commitments  in particular 
Part III  (Article 10.40) . The Section provides dis ciplines on i) civil measures, procedures and 
 
26 The elements for the registration and control of GIs are contained in the Agricultural Products Quality 
Control Act of Korea an d in the EU's Council Regulations (EC) No 510/2006 and No 1234/2007.  WT/REG431/1  
 
- 38 - 
 
  remedies , ii) criminal enforcement  and iii) liability of online service providers. Provisions on 
enforcement through border measures , codes of conduct and cooperation are also included . 
5.10  Competition  
5.34.  In Section A  of Chapter 11, the Parties shall maintain comprehensive competition laws , 
defined in Article 11.2,  which effectively address restrictive agreements, concerted practices and 
abuse of dominance by one or more enterprises, and which provide effective control  of 
concentrations between enterprises (Article 11.1). The Parties shall maintain an authority or 
authorities responsible for and appropriately equipped for the implementation of competition laws 
(Article 11.3). The Article  also states  that, upon request, the other Party shall make available public 
information concerning its competition law enforcement activities and legislation related to the 
obligations covered by this Section.  
5.35.  Public enterprises and enterprises entrusted with special or exclusive rights are subject to 
each Party's competition laws (Article 11.4).  Article 11.5 states that each Party shall adjust State 
monopolies of a commercial character so as to ensure that no discriminatory measure regarding the 
conditions under which goods are procured and marketed exists between natural or legal persons of 
the Parties.  
5.36.  Article 11.6 provides for c ooperation provisions between the Parties while Article 11.7 includes 
provisions on consultations for both Parties . Competition -related matters are excluded from the 
Agreement's dispute settlement mechanism (Article 11.8).  
5.37.  Article 7.30 allows the Parties to maintain measures to prevent service suppliers who , alone 
or together , are a major service supplier from engaging i n or continuing anticompetitive practices 
such as cross -subsidisation, using information obtained from competitors with anti -competitive 
results and not making available to other service suppliers on a timely basis technical information 
about essential fac ilities and commercially relevant information which are necessary for them to 
provide services.  
5.11  Environment  and labour  
5.38.  Chapter 13 applies to measures adopted or maintained by the Parties affecting trade -related 
aspects of labour and environmental issues (A rticle 13.2) . The Parties stress that labour and 
environmental standards should not be used for protectionist purposes.  Article s 13.3, 13.4 and 13.5  
recognize the Parties' right to regulate and establish levels of labour and environmental  protection 
and th e value of international co -operation and agreement on employment and labour affairs . The 
Parties reaffirm their commitments to the implementation in their laws and practices of the 
multilateral labour and environmental agreements to which they are party s uch as the 2006 
Ministerial Declaration of the UN Economic and Social Council on Full Employment and Decent Work 
and the ILO Declaration on Fundamental Principles and Rights at Work and its Follow -up, the United 
Nations Framework Convention on Climate Change and its Kyoto Protocol  (Article s 13.4 and  13.5).  
They commit to upholding levels of labour and environmental protection in the application and 
enforcement of laws, regulations or standards (Article 13.7).  
5.39.  Article 13.9 provides for transpare ncy while Article 13. 11 provides for cooperation on the 
topics included in the indicative list in Annex 13.  Article 13. 12 establishes institutional mechanism s, 
such as the  designation of contact points, the creation of a Committee on Trade and Sustainable  
Development and the establishment of Domestic Advisory Groups. A civil society dialogue 
mechanism  is created in Article 13.13 .  
5.40.  The dispute settlement mechanism of the Agreement is not applicable to matters arising under 
the Chapter. D isputes on environme ntal issues shall be resolved only through Government 
consultations (Article 13.14) , and a panel of experts , if the issue has not been satisfactorily 
addressed through Government consultations (Article 13.15).  
5.12  Electronic commerce  
5.41.  Section F of Chapter 7 covers electronic commerce.  Article 7.48 provides for the prohibition 
of customs duties on deliveries by electronic means.  Moreover, the Parties agree to promote the WT/REG431/1  
 
- 39 - 
 
  development of electronic commerce  which must be fully compatible with the international stan dards 
of data protection  to ensure the confidence of users of electronic commerce . They also agree to 
maintain a dialogue on regulatory issues such as the recognition of certificates of electronic 
signatures, the protection of consumers and the development  of paperless trading . 
5.13  Small and medium -sized enterprises  
5.42.  The Agreement does not include provisions specific to small and medium -sized enterprises 
except that subsidies for SMEs are not prohibited (Article 11.11).  
 WT/REG431/1  
 
- 40 - 
 
  ANNEX 1  
1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the duty rates applied by them on MFN imports is shown in Table A1. 1 and Table A1. 2, 
by HS Chapters 1 -24 (agricultural products), 25 -97 (industrial products) and total products. Applied 
MFN duty rates in 2021 serve as a comparison.  
2. Korea's overall average applied MFN tariff rate in 2021 was 13.9%. The average applied tariff 
on agricultural goods in HS Chapters 1 -24 was 50. 7%, compared to an average applied tariff of 
6.1% on industrial goods. The overall average tariff for imports fro m the UK fell to 3.3%, while the 
tariff for industrial and agricultural products was respectively 0.1% and 18.3%. As a result , exporters 
from the UK had a relative margin of preference of 76.3% overall, and 98.4% and 63.9% respectively 
for industrial and a gricultural products. Duty -free tariff lines for imports from MFN sources accounted 
for 19.6% of all tariff lines, 23.3% for industrial products and only 2.5% for agriculture. Under the 
Agreement, the share of duty -free tariff lines overall in 2021 was 93. 8% (65.7% for agricultural 
products and 99.7% for industrial products). By the end of implementation in 2031, UK exporters 
will face zero duties on 99.4% of Korea's tariff lines (100% for industrial products and 96.8% for 
agricultural products).  
Table A1. 1 Korea: Indicators of MFN tariff rates and preferential rates for imports from 
the United Kingdom  
Origin 
of 
goods  Year  ALL PRODUCTS  HS Chapters 1 -24 HS Chapters 25 -97 
Average applied 
tariff  
Share of 
duty-free 
tariff 
lines (%) Average 
applied tariff  Share of 
duty-free 
tariff 
lines 
(%) Average 
applied tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2021 13.9 17.3 19.6 50.7 52.0 2.5 6.1 7.9 23.3 
UK 2021 
(from 
01 
January 
to 30 
June)  3.3 53.1 93.8 18.3 53.2 65.7 0.1 42.3 99.9 
 2021 
(from 1 
July) 2.9 131.6 97.8 16.3 133.1  87.8 0.02 48.3 99.95  
 2022 2.7 120.8 97.8 15.0 122.6  87.8 0.01 24.2 99.95  
 2023 2.4 122.7  98.0 13.7 123.3 88.9 0.0 1.4 99.99  
 2024 2.2 133.0 98.4 12.5 133.0 90.6 0.0 0.0 100 
 2025 2.0 122.6  98.4 11.5 122.6 90.6 0.0 0.0 100 
 2026 1.9 263.6  99.3 10.5 263.6  96.0 0.0 0.0 100 
 2027 1.8 260.3 99.3 10.4 260.3 96.0 0.0 0.0 100 
 2028 1.8 259.9 99.3 10.2 259.9 96.1 0.0 0.0 100 
 2029 1.8 307.1 99.4 10.1 307.1 96.7 0.0 0.0 100 
 2030 1.8 307.0  99.4 10.1 307.0  96.7 0.0 0.0 100 
 2031 1.8 315.9  99.4 10.1 315.9  96.8 0.0 0.0 100 
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of 
averages, specific rates are excluded, and the ad valorem  parts of alternate rates are included.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by the Korean authorities and the WTO -IDB. 
 
3. The UK's overall average applied MFN tariff rate in 2021 was 3.8%. The average applied tariff 
on agricultural goods in HS Chapters 1 -24 was 8.9%, compared to an average applied ta riff of 2.5% 
on industrial goods. As a result, Korean exporters had a relative margin of preference of 99.95% 
overall and respectively 100% and 99.9% for industrial and agricultural products. Duty-free tariff WT/REG431/1  
 
- 41 - 
 
  lines on an MFN basis accounted for 47% of all tariff lines. Under  the Agreement  in 2021 , the share 
of duty -free tariff lines overall was 99.6% (98.6% for agricultural products and 100% for industrial 
products).  
Table A1. 2 United Kingdom: Indicators of MFN and preferential rates for imports from 
Korea, Republic of  
Origin of 
goods  Year  ALL PRODUCTS  HS Chapters 01 -24 HS Chapters 25 -97 
Average 
applied tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share 
of duty -
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2021 3.8 7.8 47.0 8.9 12.0 18.8 2.5 5.8 57.1 
Korea, 
Republic of  2021 0.002  6.0 99.6 0.01 6.0 98.6 0.0 0.0 100.0  
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of 
averages, specific rates are excluded, and the ad valorem  part of alternate rates are include d. 
 For the tariff lines subject to seasonal duties  (0302.41.00, 0302.43.90, 0302.44.00, 0303.51.00, 
0303.53.90, 0303.54.10, 0303.89.40, 0304.59.50, 0304.99.23, 0702.00.00, 0708.10.00, 
0805.10.22, 0805.10.24, 0805.10.28, 0808.10.80, 0808.30.90, 0809.29.00 and 0809.40.05 ) the 
average rate for the entire year is used for the calculation. The products classified beyond the 
HS 8-digit level are counted once and their tariff rates are averaged to the 8 -digit level.  
Source:  WTO estimates based on data  provided by the UK.  
 
4. Table A1. 3 shows the market access opportunities in Korea for the UK's top 25 exports, which 
in 2018 -2020 covered 202 HS lines and accounted for 38 .4% of the UK's global exports. 58 lines 
were already duty free on an MFN basis in Korea's market in 2021 while the remaining 144 became 
duty-free under the Agreement.  
Table A1. 3 Korea: Market access opportunities under the agreem ent for United 
Kingdom's top 25 exports to the world  
United Kingdom's top export products  
in 2018 -2020  Access Conditions to Korea's 
import markets  
HS number and description of the product  
Share in global 
exports (%)  MFN 2021  
Duty Free under the 
Agreement  
Remain dutiable  Avg. MFN 
applied 
rate (%)  Number of 
lines  
duty-
free  duti-
able 
710813  Gold, incl. gold plated with platinum, in semi -
manufactured forms, for non -monetary purposes  5.6 3.0  5 5  
270900  Petroleum oils and oils obtained from bituminous 
minerals, crude  4.9 3.0  10 10  
300490  Medicaments consisting of mixed or unmixed products 
for therapeutic or prophylactic purposes,  3.2 8.0  7 7  
880330  Parts of aeroplanes or helicopters, n.e.s.  2.9 0.0 2    
841112  Turbojets of a thrust > 25 kn  2.6 6.3  3 3  
870323  Motor cars and other motor vehicles principally designed 
for the transport of <10 persons, of a cylinder capacity 
> 1.500 cm³ but <= 3.000 cm³  2.4 8.0  4 4  
841191  Parts of turbojets or turbopropellers, n.e.s.  2.1 5.5  2 2  
870324  Motor cars and other motor vehicles principally designed 
for the transport of<10 persons, of a cylinder 
capacity>3.000 cm³  1.7 8.0  4 4  
220830  Whiskies  1.3 20.0  4 4  WT/REG431/1  
 
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  United Kingdom's top export products  
in 2018 -2020  Access Conditions to Korea's 
import markets  
HS number and description of the product  
Share in global 
exports (%)  MFN 2021  
Duty Free under the 
Agreement  
Remain dutiable  Avg. MFN 
applied 
rate (%)  Number of 
lines  
duty-
free  duti-
able 
271012  Light oils and preparations  1.3 2.8  6 6  
970110  Paintings, e.g. oil paintings, watercolours and pastels, 
and drawings executed entirely by hand  1.3 0.0 3    
870322  Motor cars and other motor vehicles principally designed 
for the transport of <10 persons, of a cylinder capacity 
> 1.000 cm³ but <= 1.500 cm³  1.2 8.0  2 2  
711319  Articles of jewellery and parts thereof, of precious metal 
other than silver  1.0 8.0  3 3  
271019  Medium oils and preparations, of petroleum or 
bituminous minerals, not containing biodiesel, n.e.s.  1.0 6.3  41 41  
870332  Motor cars and other motor vehicles principally designed 
for the transport of <10 persons, of a cylinder capacity 
> 1.500 cm³ but <= 2.500 cm³  0.7 8.0  4 4  
300220  Vaccines for human medicine  0.6 0.0 1    
870340  Motor cars and other motor vehicles principally designed 
for the transport of <10 persons, of a cylinder capacity 
> 1.500 cm³ but <= 2.500 cm³  0.6 8.0  2 2  
711021  Palladium, unwrought or in powder form  0.6 3.0  1 1  
300215  Immunological products, for retail sale  0.6 0.0 1    
851762  Machines for the reception, conversion and transmission 
or regeneration of voice, images or other data  0.6 0.0 33    
382200  Diagnostic or laboratory reagents on a backing, 
prepared diagnostic or laboratory reagents  0.5 7.7 15 32 32  
490199  Printed books, brochures and similar printed matter  0.5 0.0 2    
870333  Motor cars and other motor vehicles principally designed 
for the transport of <10 persons, incl. station wagons 
and racing cars, with only diesel engine of a cylinder 
capacity > 2.500 cm³  0.5 8.0  2 2  
840890  Compression -ignition internal combustion pist on engine 
"diesel or semi -diesel engine"  0.4 5.9 1 6 6  
870899  Parts and accessories, for tractors, motor vehicles for 
the transport of ten or more persons  0.4 8.0  6 6  
 Total of above  38.4  58 144 144 0 
Note:  For the calculation of averages, specific rates are excluded, and the ad valorem  parts of alternate 
rates are included.  
Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on the data provided by the Korean and the UK authorities and the WTO -IDB. 
 
5. Table A1. 4 shows the market access opportunities in the UK for Korea's top 25 exports, which 
in 2018 -2020 covered 100 HS lines and accounted for 47.1% of Korea's global exports. 63 HS lines 
were already duty free on an MFN basis in the UK's market in 2021 while the remaining 37 became 
duty-free under the Agreement.  WT/REG431/1  
 
- 43 - 
 
  Table A1. 4 United Kingdom: Market access opportunities under the agreement for 
Korea's top 25 exports to the world  
Korea's top export products  
in 2018 -20 Access Conditions to UK's markets  
HS number and description  Share in 
global 
exports 
(%) MFN 2021  No. of 
duty free 
lines 
under the 
agree -
ment  
Remain 
Dutiable  
Avg. 
Tariff 
(%) No. of 
duty-
free 
lines  No. of 
dutia -
ble 
lines  2021  
854232  Electronic integrated circuits as 
memories  11.4 0.0 10    
271019  Medium oils and preparations  4.9 1.2 12 13 13  
854231  Electronic integrated circuits as 
processors and controllers  4.0 0.0 3    
870323  Motor cars and other motor vehicles  3.3 10.0  3 3  
847330  Parts and accessories of automatic 
data-processing machines  2.2 0.0 2    
890120  Tankers  2.0 0.0 2    
851770  Parts of telephone sets, telephones for 
cellular networks or for other wireless 
networks  1.9 0.0 1    
271012  Light oils and preparations  1.5 3.3 2 9 9  
852990  Parts suitable for use solely or 
principally with transmission and 
reception apparatus  1.5 0.0 8    
870899  Parts and accessories, for tractors, 
motor vehicles  1.5 2.7  3 3  
901380  Liquid crystal devices  1.3 0.0 3    
290243  p-xylene  1.0 0.0 1    
852351  Solid-state, non -volatile data storage 
devices  1.0 0.0 2    
870322  Motor cars and other motor vehicles  1.0 10.0  2 2  
890190  Vessels for the transport of goods and 
vessels for the transport of both 
persons and goods  1.0 0.0 2    
854239  Electronic integrated circuits  1.0 0.0 3    
330499  Beauty or make -up preparations  0.9 0.0 1    
851712  Telephones for cellular networks  0.9 0.0 1    
853400  Printed circuits  0.9 0.0 3    
850760  Lithium -ion accumulators  0.8 1.9  1 1  
847989  Machines and mechanical appliances  0.7 0.0 4    
854140  Photosensitive semiconductor devices  0.7 0.0 2    
870324  Motor cars and other motor vehicles  0.6 10.0  2 2  
870840  Gear boxes and parts thereof  0.5 3.0  4 4  
848630  Machines and apparatus for the 
manufacture of flat panel displays  0.5 0.0 1    
Total of above  47.1 1.7 63 37 37 0 
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of 
averages, specific rates are excluded, and the ad valorem  part of alternate rates are included.  
 The products classified beyond the HS 8 -digit level are counted once and their tariff rates are 
averaged to the 8 -digit level.  
Source:  WTO estimates based on data provided by UK and UNSD Comtrade Database.  WT/REG431/1  
 
- 44 - 
 
  ANNEX 2  
Table A2. 1 Korea: Tariff Rate Quotas under the Agreement  (metric tonnes, MT)  
 
 Malt and Malting Barley  Supplementary feeds, 
animal   
  
1003 001000  1107100000   
2309902010, 
2309902020, 
2309902099, 
2309909090   
 
Quantity  
In-quota 
rate (%)  
Out-of-
quota 
rate (%)  
In-quota 
rate (%)  
Out-of-
quota 
rate (%)  
Quantity  
In-quota 
rate (%)  
Out-of-
quota 
rate (%)  MFN 
2020 30,000a 30 513 30 269 4,171.4  5 50.6 Agreement  2021 (from 1 
January to 30 
June)  1,567  0 192.3  0 100.8  627 0 11.6 
2021 (from 1 
July) 1,614  0 160.3  0 84 646 0 7.7 
2022 1,662  0 128.2  0 67.2 665 0 3.8 
2023 1,712  0 96.1 0 50.4 Unlimited  0 
2024 1,764  0 64.1 0 33.6 Unlimited  0 
2027 1,816  0 32 0 16.8 Unlimited  0 
2028 Unlimited  0 0 Unlimited  0 
a  The MFN quantity for 1107100000 is 40,000 metric tonnes.   
Note:  Based on the HS 20 07 nomenclature.  
Source:  Based on the data provided by the Korean authorities and the WTO -IDB. 
__________