WT/TPR/M/414/Add.1  
24 November 2021  
(21-8876) Page: 1/241 
Trade Policy Review Body  
13 and 15 October 2021  Original: English/anglais/inglés  
Spanish/espagnol/español  
 
  
TRADE POLICY REVIEW  
THE REPUBLIC OF KOREA 
MINUTES OF THE MEETING  
Addendum  
Chairperson: H.E. Mr. Mr Didier Chambovey (Switzerland)  
This document contains the advance written questions and additional questions by WTO 
Members, and replies provided by  the Republic of Korea .1 
 
 
Organe d'examen des politiques commerciales  
13 et 15 octobre 2021  
EXAMEN DES POLITIQUES COMMERCIALES  
RÉPUBLIQUE DE CORÉE 
COMPTE RENDU DE LA RÉUNION  
Addendum  
Président : S.E.  M. Mr Didier Chambovey (Suisse)  
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses  fournies par  République de Corée .1 
 
 
Órgano de Examen de las Políticas Comerciales  
13 y 15 de octubre de 2021  
EXAMEN DE LAS POLÍTICAS COMERCIALES  
REPÚBLICA DE COREA 
ACTA DE LA REUNIÓN  
Addendum  
Presidente: Excmo.  Sr. Mr Didier Chambovey (Suiza)  
En el presente documento figuran las preguntas presentadas anticipada mente por escrito y 
las preguntas adicionales de los Miembros de la OMC, así como las respuestas facilitadas por  
República de Corea .1 
  
 
1 In English only./En anglais seulement./En inglés solamente.  WT/TPR/M/414/Add.1  
 
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  Contents  
ARGENTINA  ................................ ................................ ................................ .....................  4 
ARGENTINA – ADDITIONAL QUESTIONS  ................................ ................................ ....... 12 
ARGENTINA  – REVISED ANSWERS  ................................ ................................ ................  15 
AUSTRALIA  ................................ ................................ ................................ ...................  18 
BRAZIL  ................................ ................................ ................................ ..........................  26 
BRUNEI DARUSSALAM  ................................ ................................ ................................ .. 32 
CANADA  ................................ ................................ ................................ ........................  33 
CANADA  – REVISED ANSWERS  ................................ ................................ ......................  47 
CHILE  ................................ ................................ ................................ ............................  48 
CHINA  ................................ ................................ ................................ ...........................  53 
CHINA  – REVISED ANSWERS  ................................ ................................ .........................  55 
COLOMBIA  ................................ ................................ ................................ ....................  57 
COLOMBIA – REVISED ANSWER  ................................ ................................ ....................  65 
COSTA RI CA ................................ ................................ ................................ ..................  66 
COSTA RICA – ADDITIONAL QUESTIONS  ................................ ................................ ...... 69 
DOMINICAN REPUBLIC  ................................ ................................ ................................ . 70 
DOMINICAN REPUBLIC  – REVISED ANSWERS  ................................ ...............................  76 
ECUADOR  ................................ ................................ ................................ ......................  77 
EUROPEAN UNION  ................................ ................................ ................................ ........  81 
EUROPEAN UNION  – REVISED ANSWERS  ................................ ................................ .... 109  
EUROPEAN UNION – FOLLOW -UP QUESTIONS  ................................ ............................  111  
EUROPEAN UNION - APPENDIX TO FOLLOW -UP QUESTION 3  ................................ ..... 115  
GUATEMALA  ................................ ................................ ................................ ................  117  
HONG KONG, CHINA  ................................ ................................ ................................ .... 119  
ICELAND  ................................ ................................ ................................ .....................  122  
INDONESIA  ................................ ................................ ................................ .................  123  
ISRAEL  ................................ ................................ ................................ ........................  133  
ISRAEL – REVISED ANSWER  ................................ ................................ .......................  136  
JAPAN  ................................ ................................ ................................ .........................  137  
MALAYSIA  ................................ ................................ ................................ ...................  139  
MEXICO  ................................ ................................ ................................ .......................  155  
NORWAY  ................................ ................................ ................................ .....................  164  
THE PHILIPPINES  ................................ ................................ ................................ ....... 166  
THE PHILIPPINES  – REVISED ANSWERS  ................................ ................................ ..... 183  
SAUDI ARABIA  ................................ ................................ ................................ ............  185  
SINGAPORE  ................................ ................................ ................................ .................  186  
SWITZERLAND  ................................ ................................ ................................ ............  189  
CHINESE TAIPEI  ................................ ................................ ................................ .........  197  
THAILAND  ................................ ................................ ................................ ...................  199 
THAILAND – ADDITIONAL QUESTIONS  ................................ ................................ ....... 204  WT/TPR/M/414/Add.1  
 
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  TURKEY  ................................ ................................ ................................ .......................  205  
UNITED KINGDOM  ................................ ................................ ................................ ....... 207  
UNITED STATES  ................................ ................................ ................................ ..........  222  
UNITED STATES  – REVISED ANSWER  ................................ ................................ ..........  235  
UNITED STATES – FOLLOW -UP QUESTIONS  ................................ ................................  236  
URUGUAY  ................................ ................................ ................................ ....................  238  
VIET NAM  ................................ ................................ ................................ ....................  241  
 
 
 
  WT/TPR/M/414/Add.1  
 
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  ARGENTINA  
I. INFORME DE LA SECRETARÍA (WT/TPR/S/414)  
 
I. INFORME DE LA SECRETARÍA (WT/TPR/S/414)  
 
A. Acuerdo de Asociación Económica Amplia (RCEP)  
- Página 47, punto 2.5.2.1, RCEP 2.46 al 2.54.  
El 15 de noviembre de 2020, 15 partes, incluida la República de Corea, firmaron el Acuerdo de 
Asociación Económica Amplia (RCEP) que abarca, entre otras cosas, el comercio de mercancías, el 
comercio de servicios, la inversión y el comercio electrónico. El Acuerdo aún se encuentra bajo 
evaluación por parte de Corea y pendiente de ratifica ción. 
 
Pregunta 1:  
El artículo 5.17.2 del capítulo de Medidas Sanitarias y Fitosanitarias del RCEP establece que, luego 
de dos años de entrado en vigor el Acuerdo, las partes revisen la no aplicación para dicho capítulo 
del capítulo 19 sobre Solución de Co ntroversias prevista en el artículo 5.17.1.  
En ese sentido, ¿Cuál sería la posición de la República de Corea sobre la eventual futura aplicación 
del capítulo 19 de Solución de Controversias al capítulo 5 sobre Medidas Sanitarias y Fitosanitarias?  
 
Questio n 1(Section 2.5.2.1 RCEP):  
Article 5.17.2 of the chapter on Sanitary and Phytosanitary Measures of the RCEP establishes that, 
after two years of the Agreement's entry into force, the parties review the non -application for said 
chapter of Chapter 19 on Disp ute Resolution provided for in article 5.17. 1.  
In this regard, what would be the position of the Republic of Korea on the eventual future application 
of Chapter 19 on Dispute Settlement to Chapter 5 on Sanitary and Phytosanitary Measures?  
 
ANSWER : 
As stipulated in Article 5.17.2 of the RCEP, the Dispute Settlement of Article 19 of the RCEP are to 
be determined through consultation with member states at the time two years have elapsed.  
The republic of Korea is based on the application of WTO dispute set tlement procedures.  
 
B. Medidas Sanitarias y Fitosanitarias  
 
- Párrafo 3.163 - Marco para el establecimiento de normas alimentarias  
Pregunta 2:  Allí se indica que el Sistema reglamentario de Corea toma en cuenta las opiniones de 
los consumidores y de la in dustria. Podría Corea indicar si se considera asimismo información 
científica/técnica a la hora de elaborar nuevas regulaciones en materia sanitaria / fitosanitaria?  
 
Question 2 (Para.3.163)  
It indicates that the Korean Regulatory System takes into account the opinions of consumers and 
the industry. Could Korea indicate whether scientific / technical information is also considered when 
developing new sanitary / phytosanitary regulations?  
 
ANSWER : 
Korea establishes and revises relevant sanitary and phytosanitary regulations based on scientific 
and technical information. Korea refers to standards provided by international organizations.  
For phytosanitary matters, it refers the International Standard s for Phytosanitary Measures(ISPM) 
of the IPPC, and for sanitary matters, it refers to the Terrestrial Animal Health Code(TAHC) of the 
OIE. 
 
- Párrafo 3.173 a 3.178 - Reglamentaciones cuarentenarias  
Pregunta 3:  Podría indicar Corea cuantas solicitudes recibe en promedio por año para apertura 
sanitaria de mercados de productos agroalimentarios (origen animal, vegetal y alimentos 
derivados)?  
 
Question 3 (para.3.173, 3.178)  
Could Korea indicate how many applications it receives on average per y ear for the sanitary opening 
of markets for agri -food products (animal, vegetable and derived foods)?  
 WT/TPR/M/414/Add.1  
 
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  ANSWER : 
Korea receives applications all year round on occasions of bilateral or multilateral meetings or 
consultations.  
Korea receives an average of 18 applications for import authorization per year: 8 applications fo r 
plants and 10 for animals  
 
Pregunta 4 Teniendo en cuenta que Corea solicita establecer prioridades de interés para realizar 
los análisis de riesgo para un producto por vez, ¿podría indicar Corea cuántos requisitos de 
importación aprueba por año aproximadamente?  
 
Question 4 (para.3.173, 3.178)  : Taking into account that Korea requests to establish priorities 
of interest to carry out risk analyses  for one product at a time, could Korea indicat e how many import 
requirements it approves per year approximately?  
 
ANSWER : 
Korea is carrying out risk analysis on  import quarantine for aquatic animals. Such analysis is done 
based on diseases. No priority is set for risk analysis of a specific product.  
For the last three years, an annual average of 7 cases was approved for the market access of 
agricultural, animal and livestock products. For  the agricultural products, based on the international 
standard of the IPPC, Korea carries out pest risk analysis, and average of 4 cases was approved 
annually for the last three years . 
 
Pregunta 5.  ¿Podría indicar Corea si ademá s de los principios relativos al análisis de riesgos, Corea 
tiene en cuenta otros factores a la hora de determinar si realizará o no un análisis de riesgos a una 
solicitud de algún país?   
 
Question 5. (para.3.173, 3.178) Could Korea indicate whether in add ition to risk analysis principles, 
Korea takes into account other factors when determining whether or not to conduct a risk analysis 
on a request from a country?  
 
ANSWER : 
The import risk analysis is carried out according to the international standards (IPPC and OIE 
standards) and relevant domestic laws.  
Other factors do not have impact on the decision whether or not to conduct risk analysis  
Regarding import quarantine for aquatic animals, Korea is only taking into account risk analysis 
principles.  
 
Pregunta 6.  ¿Tiene en cuenta volumen de producción del país exportador u otro tipo de 
consideraciones económicas al momento de  definir si realizará un análisis de riesgos?  
 
Quest ion 6. (para.3.173, 3.178) Do you take into account the production volume of the exporting 
country or other economic considerations when defining whether to carry out a risk analysis?  
 
ANSWER : 
Korea takes into account the risk of the introduction of diseases and pests, outbreak situations of 
animal diseases and a request from an exporting countries when carrying out import approval 
procedures for animal and livestock products and import risk analysis of plants.  
Risk analysis on import quarantine for aquatic animals follows international standards and does not 
consider an exporting country's GDP or economic factors.  
 
- Párrafo 3.170 a 3.172 - Productos modificados genéticamente y organismos vivos modificados.  
Pregunta 7.  Considerando lo  informado por notificación G/SPS/N/KOR/723 que introduciría un 
tratamiento diferenciado para las New Breeding Techniques , ¿podría Corea informar de qué manera 
diferencia entre revisión y examen preliminar que se aplica a las NBT y la evaluación de riesgo que 
se realiza para los OGM?   
 
Question 7 (para 3.170 ). Considering what was informed by notification G/SPS/N/KOR/723 that 
would introduce a differentiated treatment for New Breeding Techniques, could Korea inform how it 
differentiates between review and p reliminary examination applied to NBT and the evaluation risk 
that is carried out for GMOs?  
 WT/TPR/M/414/Add.1  
 
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  ANSWER : 
The reviewal of NBTs will require much simpler information than the risk evaluation of LMOs . Details 
will be handled later under decrees, after the modification of the current law which process is ongoing. 
Korea is planning to require information that is predictable, and datas that are easy to prepare.  
The preliminary review of NBT will be condu cted with much more simplified data rather than the 
current risk review of living modified organisms (LMO). The draft of specific procedures will be dealt 
with in lower statutes after the LMO Act amendment in progress. The data to be submitted for the 
preliminary review needs to be predictable and easy -to-write. These  contents were derived through 
the consultation/discussion process of all ministries related to LMO safety management in Korea.  
 
- Párrafo 3.176  
 
Pregunta 8:  Allí se ha señala que Corea levantó las restricciones a la importación de carne bovina 
procedente de distintos países como Países Bajos y Dinamarca. ¿Podría Corea explicar qu é criterios 
utilizó para priorizar dichas aperturas por sobre otras solicitudes c on igual status sanitario?  
 
Question 8 (para 3.176):  There it has been pointed out that Korea lifted restrictions on the 
importation of beef from different countries such as the Netherlands and Denmark. Could Korea 
explain what criteria it used to prioriti ze these openings over other requests with the same sanitary 
status?  
 
- Párrafo 3.178  
 
ANSWER : 
 
Korea conducts import risk assessment of countries according to the order of arrival of applications 
pursuant to domestic legislation. No other criteria applies.  
 
Pregunta 9:  En el párrafo arriba mencionado se hace referencia a condiciones sanitarias 
simplificadas para la importación a partir del Acuerdo de Asociación Económica Amplia Regional 
(RCEP) y el Tratado Integral y Progresista de Asociación Transpacífico (CPTPP).  
Podría Corea indicar en qué consisten estas condiciones sanitarias simplificadas?  
 
Question 9 (para 3.176) : In the above -mentioned paragraph, reference is made to simplified 
sanitary conditions for imports based on the Regional Comprehensive Economic Partnership 
Agreement (RCEP) and the Comprehensive and Progressive Treaty of Trans -Pacific  Partnership 
(CPTPP).  
Could Korea indicate what these simplified sanitary conditions consist of?  
 
[ANSWER]  
The first sentence is an excerpt from the reference which describes the policy environment in which 
there is tendency of simplifying the procedure related to sanitary conditions for import in multilateral 
trade agreements, such as RCEP and CPTPP. The follo wing sentences describe MFDS measures that 
facilitate import of safe product and therefore, is not related to sanitary conditions for import. 
Sanitary conditions for import should be determined  via consultations between the exporting country 
and the import ing country.  
 
C. Indicaciones geográficas  
- Párrafo 3.256  
Teniendo en cuenta que el Acuerdo ADPIC contempla la protección de IGs homónimas en el 
artículo  23.3. 
 
Pregunta 10 . ¿Cómo se protegen las IGs que son homónimas con aquellas que sean iguales o 
similares a otras protegidas por  Corea en  acuerdos multilaterales o bilaterales?  
 
Question 10. ( para 3.256 ) 
How are GIs that are homonymous with those that are the same or similar to others protected by 
Korea in multilateral or bilateral agreements protected?  
 
[ANSWER]  
If a GI protected by Korea in multilateral or bilateral agreements is registered as a collective mark 
with GI,  a homonymous GI can be registered as another collective mark with GI (Trademark WT/TPR/M/414/Add.1  
 
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  Law (34)(4) and (35)(5)(ii)) and is allowed to be used even though it is unregistered (Trademark 
Law (90)(2)(iii)).  
 
C. Indicaciones geográficas  
 - Párrafo 3.256  
Teniendo en cuenta que el Acuerdo ADPIC contempla la protección de IGs homónimas en el 
artículo  23.3. 
 
Pregunta 11 . ¿Cuáles son los  procedimientos y criterios que se establecen para el registro de IGs 
extranjeras? ¿Qué costo tiene el registro?  ¿Existe intervención del país que reconoce la IG o  queda 
sólo a cargo de los productores el registro?  Tiene Corea más de un si stema de protección de las 
indicaciones geográficas? ¿Podría indicar Corea de que depende que las IGs se registren como 
marcas o bajo un sistema sui generis?  ¿Podría especificar claramente las diferencias entre uno y 
otro sistema en cuanto a: el cumplimien to de la definición de IGs del artículo 22 de TRIPS, la 
excepción de protección cuando existen marcas previas, la excepción del genérico, las variedades 
vegetales, los nombres comerciales en el curso de operaciones comerciales. ¿Podría indicar además 
si el plazo de protección es el mismo bajo ambos sistemas? ¿Podría indicar cuales son los causales 
de caducidad o suspensión de la protección a una IGs bajo ambos sistemas?  
 
Question 11. (para 3.256)  
What are the procedures and criteria established for the regi stration of foreign GIs? How much does 
the registration cost? Is there an intervention by the country that recognizes the GI or is the 
registration only left to the producers? Does Korea have more than one GI protection system? Could 
Korea indicate that it  depends on GIs being registered as trademarks or under a sui generis system? 
Could you clearly specify the differences between one system and the other in terms of: compliance 
with the definition of GIs in article 22 of TRIPS, the protection exception whe n there are previous 
trademarks, the generic exception, plant varieties, trade names in the course of business operations. 
Could you also indicate if the term of protection is the same under both systems? Could you indicate 
what are the reasons for the exp iration or suspension of protection to a GI under both systems?  
 
ANSWER : 
In order to register a foreign GI in Korea, you can apply separately as a collective mark with GI or 
request overall protection when negotiating an FTA between countries.  
 
The registration fee for the collective mark with GI (trademark) is basically KRW  211,000 (about 
USD 180). If you submit it as an electronic document and designate a product using the product 
name of Nice Classification, you will receive a discount.  
There is n o registration fee if it is protected under the FTA.  
 
In order to register the collective mark with GI, you must undergo a trademark examination by the 
government (Korean Intellectual Property Office).  
In order to protect a GI under the FTA, you must go th rough an opposition process from the same 
industry.  
 
Korea protects GI under the Unfair Competition Prevention Act (GI protected under the FTA), the 
Trademark Act (Collective mark with GI), and the Agricultural and Fishery Product Quality Control 
Act (Dome stic GI).  
 
In the case of foreign GI, the trademark system is used to apply for separate  protection, and the sui 
generis system (Unfair Competition Prevention Act) is used to apply for overall protection to the 
Korean government through their own governmen t. 
 
The GI definition in Article 22 of the TRIPS satisfies both GIs under the Trademark Act and GIs under 
the Unfair Competition Prevention Act.  WT/TPR/M/414/Add.1  
 
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  Exceptions to GI protection  
 
The infringement of collective marks with GI has criminal punishment, but the infringement of GIs 
of the Unfa ir Competition Prevention Act has no criminal punishment.  
 
A registered collective marks with GI may be cancelled  due to reasons for cancellation of trademarks 
such as non -use or protection may be terminated if  registration fees are not paid, but in order to 
terminate GI protection under the Unfair Competition Prevention Act, they must be removed from 
the FTA's protec tion list.  
 
Pregunta 12:  El Acuerdo de Corea con la UE protege las indicaciones geográficas de la UE bajo un 
sistema sui generis. ¿Podría indicar si dicho nivel de protección está  abierto a la protección de 
indicaciones geográficas de terceros países?  
 
Question 12 (para 3.256):  Korea's Agreement with the EU protects EU geographical indications 
under a sui generis system. Could you indicate whether this level of protection is open to the 
protection of geographical indications from third countries?  
 
ANSWER : 
The Unfair Competition Prevention Act of Korea that regulates GI protection stipulated in the Korea -
EU FTA applies equally to the  GIs protected by every multilateral and bilateral FTAs.  
 
Pregunta 13:  ¿Qué criterio se establece si una marca de amplia reputación y conocida es similar a 
una IG de un tercer país con el cual Corea tiene acuerdos  para la protección de Indicaciones 
Geográficas?  
 
Question 13 (para 3.256):  What criteria is established if a wel l-known and well -known brand is 
similar to a third -country GI with which Korea has agreements for the protection of Geographical 
Indications?  
 
ANSWER : 
In the case of famous trademarks similar to GI protected under the FTA, they can be protected if 
they wer e used even before the GI was protected. (Article 3 -2 (3) of the Unfair Competition 
Prevention Act)  
 
- Párrafo 3.257  
Pregunta 14 . ¿Podrían explicar cómo es el proceso de registro establecido en la Ley de Gestión de 
la Calidad de los Productos Agrícolas, el cual  incluye  las indicaciones geográficas para los productos 
agrícolas?  
 
Question 14. (para. 3.257)  
 Could you explain how is the registration process established in the Law on Quality Management of 
Agricultural Products, which includes geogr aphical indications for agricultural products?  
 
ANSWER : 
A person who applies for registration of a geographical indication, shall file an application and 
prescribed documents to the National Agricultural Products Quality Management Service. The Classification  In the case of conflict with 
the Collective marks with GI  In the case of conflict with the GI of 
the Unfair Competition Prevention 
Act 
Existing trademark (First -to-
file/First -to-use trademark)  -First-to-file trademark: 
Available  
(Trademark Act 90(2)(iv))  
 
- First-to-usetrademark: 
Available  
 (Trademark Act 99(1))  - First-to-file trademark: No regulations  
 
- First-to-usetrademark: Available  
 (Article 3 -2(3) of the Unfair 
Competition Prevention Act)  
Common name  Available  
(Trademark Act 90(2)(i))  No regulations.  
Plant variety name  Available  
(Trademark Act 90(2)(i))  No regulations.  
Your name used in the 
transaction process  Available  
(Trademark Act 90(2)(i))  No regulations.  WT/TPR/M/414/Add.1  
 
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  subcommitte e for deliberation on the registration of geographical indications will review the items 
eligible for registration and qualifications for applications based on submitted materials.  
After going through an official announcement for two months and application  of formal objection, 
and if there is no objection filed from a third person, the registration is confirmed.  
 
- Párrafo 3.258  
Pregunta 15. ¿Qué ocurre en el caso de marcas registradas en el país de origen, con anterioridad 
al registro de una IG, la cual contiene indicaciones geográficas de vinos o bebidas espirituosas 
originarios de cualquier Miembro de la OMC?  
 
Question 15 (3.258)  
What happens in the case of trademarks registered in the country of origin, prior to the registration 
of a GI, which contains geographical indications for wines or spirits originating from any WTO 
Member?  
 
ANSWER : 
If you apply for a trademark, which includes a wine or distilled liquor GI from a WTO member state, 
to use on wine or distilled liquor, the trademark cannot be registered. However, legitimate users of 
the GI can receive a trademark registration if they apply for the registration of a collective mark 
with GI (Trademark Act 34(1)(xvi).  
 
- Párrafo 3.255  
Pregunta 16.  ¿Podría indicar de qué depende que una Indicación Geográfica se proteja a través de 
la ley de marcas o de la Ley de Gestión de la Calidad de los Productos Agrícolas y Pesqueros?  ¿Podría 
especificar cuáles son las diferencias en cuanto a los niveles de pro tección bajo ambas leyes?  
Question 16. (para 3.255)  
Could you indicate what depends on whether a Geographical Indication is protected through the 
trademark law or the Law on the Quality Management of Agricultural and Fishery Products? Could 
you specify wha t are the differences in terms of the levels of protection under both laws?  
 
ANSWER : 
The Law on the Quality Management of Agricultural and Fishery Products applies to agricultural, 
fisheries products, and products that processes them. Also, base material p roduction, manufacture 
and processing should all be in the relevant geographical area. In addition, strict post management 
should be done based on Quality Control Plans. On the other hand, the Trademark Law includes 
industrial products such as claypots, an d require only one out of the three requirements; production, 
manufacture and processing.  
 
Classifcation  Collective marks with GI 
(Trademark Act)  GI under the Agricultural and Fishery 
Products Quality Control Act.  
 Subject to 
application  Foreign and domestic GIs  Only domestic GI  
 Purpose  Indication of source  Quality certification  
Geographic 
requirements  Protection only when one of the 
production, manufacturing, and 
processing of goods is related to 
geographical characteristics  Protection only when produced, 
manufactured and processed in a specific 
area 
Protection level  Civil and criminal liability  Civil liability  
 
ANSWER : 
According to the Agricultural and Fishery Products Quality Control Act, the registration of 
geographical indications requires agricultural products to be both produced and processed in the 
relevant area subject to the geographical indication. Whereas, in regard to the collective mark with 
geographical indication under the Trademark Act, it can be registered w hen satisfying either of two 
requirements.  
In accordance with the two Acts, a person who registered a geographical indication has an exclusive 
right to use it, and civil and criminal remedies applied to the infringement on his/her rights are the 
same. For geographical indications, a product bearing a geographical indication can have indication 
labels on its surface. On the other hand, collective marks with geographical indications have no 
labels and may be renewed every ten years.  
 
Pregunta 17. El párrafo 3.255 establece todas las leyes que regulan la protección de las indicaciones 
geográficas, y entre ellas destaca que "....la Ley de Prevención de la Competencia Desleal y WT/TPR/M/414/Add.1  
 
- 10 - 
 
  Protección del Secreto Comercial protege las indicaciones geográficas no r egistradas cuando su 
protección en virtud de la Ley de Marcas de Fábrica o de Comercio o la Ley de Gestión de la Calidad 
de los Productos Agrícolas y Pesqueros se ha vuelto ineficaz." ¿Podría ampliar información sobre 
esta situación, en qué casos la ley de  marcas de fábrica y de Comercio y la Ley de Gestión de la 
Calidad de los Productos Agrícolas y Pesqueros resultan ineficaces para proteger las IGs?  
Question 17.  Paragraph 3.255 establishes all the laws that regulate the protection of geographical 
indicati ons, and among them it stands out that "... the Law on Prevention of Unfair Competition and 
Protection of Trade Secret protects unregistered geographical indications when their protection 
under the Trademark Law or the Law on Quality Management of Agricult ural and Fishery Products 
has become ineffective. " Could you expand information on this situation, in which cases the 
trademark law and the Law on Quality Management of Agricultural and Fishery Products are 
ineffective in protecting GIs?  
 
ANSWER : 
Protecti on of GIs become ineffective with regard to post management results. The Law on Prevention 
of Unfair Competition and Protection of Trade Secret does not directly protect GIs, but prohibits 
erred references. Thus, there are no enrightments of exclusive use such as patents, but only 
indirectly protects GIs by prohibiting wrongful uses of GIs.  
A GI which has been decided to be protected under the FTA signed by Korea means that it is 
protected under the Unfair Competition Prevention Act, even if it is not a "r egistered GI" under the 
Trademark Act or the Agricultural and Fishery Products Quality Management Act.  
The Agricultural and Fishery Products Quality Control Act protects a geographical indication of 
agricultural products, only when the products are both produced and processed in the relevant area 
subject to the geographical indication.  
 
- Párrafo 3.257  
Pregunta 18:  ¿Podría indicar cuales son las medidas de " enforcement " que garantizan la protección 
de las Indicaciones geográficas bajo la Ley de Gest ión de la Calidad de los Productos Agrícolas y 
Pesqueros?  
 
Question 18:  Could you indicate what are the "enforcement" measures that guarantee the 
protection of geographical indications under the Law on Quality Management of Agricultural and 
Fishery Product s? 
 
ANSWER : 
Article 119 states that a person who wrongfully indicates GIs to a  Agricultural or Fisheries product, 
which is not protected by GI, will be under imprisonment up to 3 years, or be fined up to 
KRW 30 million.  
 
In order to maintain the quality of products and protect consumers, an appropriate public official 
may be requir ed to conduct inspection duties such as collecting and examining the samples of 
products, according to the Agricultural and Fishery Products Quality Control Act. Any breaches can 
result in administrative dispositions (corrective measures, suspension of the  indication, cancellation 
of registration, etc.) and be punished with imprisonment or a fine under the act.  
 
Pregunta 19:  De acuerdo al informe de la Secretaría de la OMC: "Las indicaciones geográficas 
extranjeras pueden registrarse de conformidad con los mismos procedimientos y criterios que rigen 
para las mercancías nacionales y están protegidas por diversas leyes; reciben la misma protección 
que las indicaciones geográficas nacionales registradas."  
En virtud de ello, ¿Es posible registrar en Corea una In dicación Geográfica extranjera bajo el 
sistema previsto en la Ley de Marcas de Fábrica o de Comercio coreana?  
 
Question 19 (para 3.257)  
According to the WTO Secretariat report: "Foreign geographical indications can be registered in 
accordance with the same procedures and criteria that apply to domestic goods and are protected 
by various laws; they receive the same protection as geographical indications. registered nationals."  
By virtue of this, is it possible to register a foreign Geographical Indicatio n in Korea under the system 
provided in the Korean Trademark Law?  
 
ANSWER : 
Foreign GIs can also be protected as a trademark by being registered as a "collective mark with GI 
or certification mark" under the Trademark Act.  WT/TPR/M/414/Add.1  
 
- 11 - 
 
   
D. Notificaciones a la OMC  
- Sección 4.1.2.3.  
Pregunta 20: Tiene pensado Corea en el futuro realizar la notificación de los textos que acompañan 
a las notificaciones a la OMC, en alguno de los idiomas oficiales del organismo?  
Question 2 0(Section 4.1.2.3)  
Does Korea plan to notify the texts accompanying notifications to the WTO in any of the official 
languages of the body in the future?  
 
ANSWER : 
Among the official languages of the WTO, namely English, French and Spanish, Korea is notifying 
the texts in English.  
 
II. INFORME DEL GOBIERNO  (WT/TPR/G/414)  
 
A. Política Económica  
- Párrafo 3.2 - Políticas para hacer frente a la pandemia de COVID -19 
En el informe, Corea menciona las políticas economías basada en tres pilares, que aplicó durante la 
pandemia del COVID -19 para poder hacer frente a la incertidumbre de la economía internacional.  
Pregunta 21 : ¿Podría indicar Corea cuáles son las medidas económicas  que hoy siguen vigentes en 
el sector agrícola y si después de un año y medio de la pandemia del COVID -19 Corea tomará nuevas 
medidas económi cas en el sector agrícola?  
 
Question 21  
Could Korea indicate which economic measures are still in force today in the agricultural sector and 
whether after a year and a half of the COVID -19 pandemic Korea will take new economic measures 
in the agricultural sector?  
 
ANSWER : 
In relation to COVID -19, Korea is taking measures focusing on the supply of agricultural labor  and 
promotion of consumption. For example, the measures include: support for manpower in rural areas 
including labor brokerage and insurance premiums, promotion of consumption of environment -
friendly agricultural products due to suspension of school meals  as well as promotion of flower 
consumption which was weakened following limited gatherings and activities; and purchase of food 
and beverage for vulnerable groups who have poor access to food.  
Further measures will be reviewed while observing the spread o f COVID -19. 
 
 
  WT/TPR/M/414/Add.1  
 
- 12 - 
 
  ARGENTINA – ADDITIONAL QUESTIONS  
3 TRADE POLICIES AND PRACTICES, BY MEASURE  
Section 3.2 explains that trade facilitation measures were introduced during the period under review, 
including certain initiatives to mitigate the damage caused by  the COVID -19 pandemic.  Regarding 
customs valuation, the Customs Administration introduced services to protect taxpayers' rights and 
strengthened cooperation systems against tax evasion.  Rice imports continued to be subject to 
tariffs.  Many tariff items re mained subject to import licensing requirements, and certain prohibitions 
were maintained.  During the period under review, the levels of initiation of anti -dumping 
investigations remained relatively stable.  Price-based special safeguard provisions were app lied 
under the WTO Agreement on Agriculture.  
 
1. Korea describes that trade facilitation measures were introduced during the period under review, 
including certain initiatives to mitigate the damage caused by the COVID -19 pandemic;  Could Korea 
elaborate on  the trade facilitation measures that were introduced due to the pandemic and explain 
in detail what the effects of their application were?  
 
[Answer]  
KCS has been taking various measures to minimize the impact of COVID 19. First of all, KCS has 
been addres sing businesses' clearance difficulties with a support center, operating a 24 -hour 
clearance system for fast customs clearance and 24 -hour issuance of certificates of origin, and 
extending the deadline of registration for post -application of proof of origi n. With such measures, 
KCS has been providing fast customs clearance service, contributing to maintaining global supply 
chain despite the pandemic.  
 
3.1 Measures that directly affect imports  
3.1.1.1 Procedures  
 
In 3.13 it says that in order to further faci litate trade, since August 2018, the KCS has launched 
several pilot projects that use blockchain technology to share logistics documents in real time (for 
example, certificates of origin and electronic commerce).  In addition, in May 2021 the possibility of  
establishing a new UNI -PASS platform based on blockchain technology was being studied to reinforce 
data accuracy, process reliability, speed and efficiency.  
 
2. Could you explain which were the pilot projects that Korea applied that used blockchain technology 
to share logistics documents in real time that were launched since 2018?  Please describe what were 
the achievements obtained by joining each of them . 
 
[Answer]  
From 2018 to 2019, KCS did a blockchain pilot project on three areas: expo rt clearance, exchanging 
certificates of origin, and e -commerce among nations. As a result, the e -commerce pilot project in 
2018 was successful, and through advancement in 2019, a pilot project interconnected with UNI -
PASS succeeded in 2020. The main advan tage of this is that each participant's data was strictly 
sorted, since e -commerce is simple and digitized in comparison with ordinary trade. Through the 
pilot projects, we were able to verify blockchain technology as well.  
 
3.1.1.2 Customs valuation  
 
Point 3.22 of the report explains that between 2016 and 2020 KRW 172.2 billion were collected on 
undervalued imports, compared to KRW 99.4 billion in the period 2012 -2015.  The SIREN 2007 
system, a KCS immediate alert system aimed at blocking undervalued im ports of agricultural 
products, plants and fishery products, remains in effect.  Based on the results, undervalued products 
are audited, while normal products are dispatched quickly.  The SIREN system appears to have 
increased tax revenues and prevented the undervaluation of products.  
 
3. Could Korea describe in detail what the SIREN 2007 system consists of?  Please indicate in detail 
the concrete results obtained as a result of its incorporation.  
 
[Answer]  
KCS has established and is operating SIREN (early ala rm system to detect undervaluation of a good) 
in collaboration with the Ministry of Agriculture, Food and Rural Affairs, the Ministry of Oceans and 
Fisheries, and Korea Forest Service to inhibit customs undervaluation of agriculture and fisheries. WT/TPR/M/414/Add.1  
 
- 13 - 
 
  SIREN is  systemized to buzz whenever an agricultural good lower than the set price (determined by 
the price based on collateral, and the rate set on SIREN based on the item's name and size) is 
declared by importers. Such declared goods are subject to customs inves tigation and to be 
investigated by customs officers. They will be investigated once a collateral compatible with the 
difference rate (between the reported price and the price based on collateral) is given. The number 
of agricultural goods subject to SIREN is 27, including garlic, onion, pepper, sesame and peanut, out 
of 118 agricultural goods, whose name and size have been recently standardized.  
Investigating customs duty was difficult, as there are many factors that influence the price of 
agriculture and f isheries, such as type, region and time of production, size and quality. However, 
after launching SIREN, discovering undervalued declarations became fast and efficient.  
 
3.1.3.1 MFN rate applied  
 
In subsection 3.32, it is explained that given that they gra nt different and high levels of protection 
to certain industries, especially agriculture, tariffs distort competition by favoring some activities. 
The reduction of high tariffs (mainly the duties applied to agriculture outside the quota) would allow 
a bett er distribution of resources and increase national welfare, but the authorities do not share this 
view.  According to the authorities, agricultural tariffs, including out -of-quota tariffs, are maintained 
in accordance with international and national laws, t aking into account market conditions.  
 
4. Does the Korean government plan to reduce the high tariffs registered in the agricultural sector?  If 
the answer is positive, please indicate what those plans are in detail.  
 
[Answer]  
Korea's agricultural tariffs were decided through consultations with WTO members at the Uruguay 
Round negotiations in 1994.  
Korea has signed 17 FTAs with 57 countries including agricultural products for market access.  
 
In point 3.33 it is commented that m ore than 99% of the tariffs are applied as ad valorem duties 
and are therefore transparent.  There are about 129 (130 in 2016) different rates (88 ad valorem 
and 41 alternative duties) of which about 39 ad valorem tariffs (ie excluding the ad valorem part o f 
the alternative rates) are decimal rates;  alternative duties apply to 0.7% of all tariff lines (88).  Tariff 
rates continue to vary from zero to 887.4%.  Almost 85% of rates are 10% or less, and rates of more 
than 30% apply to 3.4% of tariff lines.  Korea's  tariff regime could be streamlined, for example, by 
reducing the large number of different rates and eliminating decimal rates.  
 
5. Could Korea provide information on whether it plans to rationalize its tariff regime by reducing 
the large number of differ ent rates and eliminating decimal rates?  If the answer is positive, please 
indicate the schedule and the details of the plan for this purpose.  If no, please indicate the reasons 
why Korea does not plan to undertake such a rationalization.  
In section 3.34 o f the report it is commented that alternative duties are also applied to 43 agricultural 
tariff lines as out -of-quota duties;  its ad valorem components consist of very high minimum rates, 
reaching 566.8% for pine nuts, 611.5% for jujubes and 630% for sesam e seeds.  
 
[Answer]  
Korea has been improving overall tariff regime through the consideration of domestic conditions and 
the results of multilateral negotiations every year, and will continue to improve the related policies 
by respecting the results of ongoi ng FTA, RTA, WTO DDA and multilateral negotiations as well as the 
opinions of related organizations and interested parties.  
 
6. Could Korea indicate if it plans to reduce these high tariffs?  If the answer is yes, please indicate 
in detail the plan for this. If no, please indicate the reasons why Korea does not plan such tariffs.  
 
[Answer]  
Korea has been improving overall tariff regime through the consideration of domestic conditions and 
the results of multilateral negotiations every year, and will conti nue to improve the related policies 
by respecting the results of ongoing FTA, RTA, WTO DDA and multilateral negotiations as well as the 
opinions of related organizations and interested parties.  
 
3.1.3.3 "Flexible" tariffs  
3.38.  The number of items covered by flexible tariffs decreased from 145 (at the HS 6 -digit level) in 
2016 to 184 in 2021. As indicated by the authorities when the previous review was conducted, the WT/TPR/M/414/Add.1  
 
- 14 - 
 
  fundamental principle regarding flexible tariffs is to keep its application to a minimum in  accordance 
with what is established by law.  The Government intends to gradually reduce or eliminate these 
tariffs in line with the tariff reduction resulting from the DDA and FTA negotiations.  
 
7. Regarding Flexible Tariffs, Korea informs that it intends to gradually reduce or eliminate tariffs in 
line with the tariff reduction resulting from the DDA and FTA negotiations;  Can Korea provide more 
precise information on when it will finalize the reduct ion or elimination of tariffs?  
 
[Answer]  
Korea has been improving overall tariff regime through the consideration of domestic conditions and 
the results of multilateral negotiations every year, and will continue to improve the related policies 
by respectin g the results of ongoing FTA, RTA, WTO DDA and multilateral negotiations as well as the 
opinions of related organizations and interested parties.  
 
Adjustment rights  
Paragraph 3.39 explains that adjustment duties are intended to protect domestic industries against 
surges in imports and mitigate the impact of trade liberalization.  They only affect MFN rates and are 
set annually by the MOEF in accordance with the request of the competent government authorities.  
 
8. Could you explain in detail the criteria used  to apply the adjustment rights?  Could you indicate 
all the cases in which you have used them during the period under review?  
In paragraph 3.40 it is mentioned that the alternative duties, in which case the applicable duties are 
the highest of the ad valor em duties or the specific duties, affect four 6 -digit tariff lines in 2021. 
Several products subject to adjustment duties, like some fish and plywood items, they remain 
unbound;  the adjustment rights for the four consolidated items are below the consolidat ed level.  In 
2017, the adjustment tariff applied to frozen saury was reduced from 28% to 26%, due to the 
increased demand for fish baits.  In 2021, this tariff was adjusted to 24%, in response to the 
COVID -19 outbreak and the situation of the domestic and i nternational market.  
 
[Answer]  
The authorities first receive applications from related ministries and industries, select the items in 
consideration of import prices and import volume trends, domestic prices and supply trends, and 
finally decide through rev ision of laws. Adjustment tariffs are announced in the official gazette or 
website and are implemented on January 1 every year.  
 
9. Could Korea explain why various products subject to adjustment duties, such as some fish and 
plywood articles, have not been  bound?  Given that the consolidation of customs duties is an element 
that provides the first step of transparency in international trade relations, does Korea intend to 
consolidate such positions and thus provide a minimum degree of certainty to the commer cial 
operations of products whose tariffs have not been consolidated ? 
 
[Answer]  
According to the order of application of tariff stipulated in the Customs Act, if the adjustment duty 
is higher than the WTO concession duty, the concession duty is applied and  adjustment tariff cannot 
exceed 100%, so there is no issue even if some products subject to adjustment duties have not 
been bound.  
 
3.1.3.6 Tariff rates "based on use"  
In paragraph 3.48 of the report it is explained that imported inputs that are destined for certain uses 
may be exempted from customs duties under the regime of tariff rates "based on use" (Article 83 of 
the Customs Law).  Korea continues to use "use -based" tariffs, autonomous TRQs, and input duty 
concessions as part of the country's industrial policy to encourage some manufacturing activities 
(sections 3.1.3.5 and 3.3.1) .  Since 2012, "use -based" tariff rates have been applied to inputs for 
activities such a s planting, feed production and semiconductor manufacturing.  No further 
information could be obtained from the authorities on this policy instrument.  
 
10. Could Korea provide more information on in which cases this instrument has been used?  Could 
you provi de a report on the economic impact of its application on industrial activity?  
 
[Answer]  
There is not any report on economic impact of its application. If an importer wishes to apply usage 
tariff, she or he should submit an application for usage tariff rat e to the Korean Customs office for WT/TPR/M/414/Add.1  
 
- 15 - 
 
  approval at the time of import declaration. The application should include the information of usage, 
description, size, etc. of the goods.  
 
3.1.5.3 Licenses  
Subsection 3.63 explains that the application of the Korean imp ort approval and authorization regime 
is the responsibility of 15 ministries or agencies, compared to 13 in 2016; This increase is due to 
the reorganization and restructuring of some agencies. As stated by the authorities when the above 
review was conducte d, import license applications are examined and verified in a "fair" manner.  
 
Question 11. Could Korea explain what it means by "fairly"? Could you indicate the reasons why 
the number of public bodies in charge of imports has increased to 15 ministries?  
 
[Answer]  
Import approval or authorization is fairly implemented in accordance with the export and import 
certification requirements stipulated in 64 separate laws of 15 ministries. Regarding the reasons of 
the number of concerned public bodies, please refer  to paragraph 3.63 in the Secretariat Report.  
 
 
ARGENTINA  – REVISED ANSWERS  
C. Indicaciones geográficas  
- Párrafo 3.256  
Teniendo en cuenta que el Acuerdo ADPIC contempla la protección de IGs homónimas en el 
artículo  23.3. 
 
Pregunta 11 . ¿Cuáles son los  procedimientos y criterios que se establecen para el registro de IGs 
extranjeras? ¿Qué costo tiene el registro?  ¿Existe intervención del país que reconoce la IG o  queda 
sólo a cargo de los productores el registro?  Tiene Corea más de un si stema de protección de las 
indicaciones geográficas? ¿Podría indicar Corea de que depende que las IGs se registren como 
marcas o bajo un sistema sui generis?  ¿Podría especificar claramente las diferencias entre uno y 
otro sistema en cuanto a: el cumplimien to de la definición de IGs del artículo 22 de TRIPS, la 
excepción de protección cuando existen marcas previas, la excepción del genérico, las variedades 
vegetales, los nombres comerciales en el curso de operaciones comerciales. ¿Podría indicar además 
si el plazo de protección es el mismo bajo ambos sistemas? ¿Podría indicar cuales son los causales 
de caducidad o suspensión de la protección a una IGs bajo ambos sistemas?  
 
Question 11. (para 3.256)  
What are the procedures and criteria established for the registration of foreign GIs? How much does 
the registration cost? Is there an intervention by the country that recognizes the GI or is the 
registration only left to the producers? Does Korea have more than one GI protection system? Could 
Korea indicate tha t it depends on GIs being registered as trademarks or under a sui generis system? 
Could you clearly specify the differences between one system and the other in terms of: compliance 
with the definition of GIs in article 22 of TRIPS, the protection exception  when there are previous 
trademarks, the generic exception, plant varieties, trade names in the course of business operations. 
Could you also indicate if the term of protection is the same under both systems? Could you indicate 
what are the reasons for the  expiration or suspension of protection to a GI under both systems?  
 
ANSWER : 
In order to register a foreign GI in Korea, you can apply separately as a collective mark with GI, and 
the detailed criteria for the registration of a collective mark with GI is shown in the Trademark 
Examination Guidelines.  The basic application fee is 72,000 won (about 60 US dollars) and 
registration is 211,000 won (about 180 US dollars) for a collective mark with GI (trademark). But if 
you submit the application as an electroni c document and designate a product using the product 
name of the Nice Classification, you will receive a discount.  In order to register the collective mark 
with GI, you must undergo a trademark examination by the government (Korean Intellectual 
Property Of fice). Korea protects GIs under three systems, Collective mark with GI, GI of the 
Agricultural and Fishery Product Quality Control Act, GI protected under FTAs. They are respectively 
protected against unauthorized use by others under the Trademark Act, the  Agricultural and Fishery 
Product Quality Control Act, and the Law on Prevention of Unfair Competition and Protection of Trade 
Secret. And, they are protected against registration  by others under the Trademark Act .  
Collective mark with GI, GI of the Agric ultural and Fishery Product Quality Control Act and GI 
protected under FTAs all comply with the definition of GIs in Article 22 of TRIPS  The term of WT/TPR/M/414/Add.1  
 
- 16 - 
 
  protection of a collective mark with GI is 10 years, which can be renewed.  The terms of protection 
of other GI systems are indefinite . A collective mark with GI expires if it is not renewed after the 
term of protection( 10 years). Rights are not suspended in case of GIs  
 
Question 12  (para 3.256):  Korea's Agreement with the EU protects EU geogr aphical indications 
under a sui generis system. Could you indicate whether this level of protection is open to the 
protection of geographical indications from third countries?  
 
ANSWER:  
The Unfair Competition Prevention Act where the regulation for the prot ection of GIs under the 
Korea -EU FTA is reflected applies equally to the GIs protected by every multilateral and bilateral FTA.  
 
Question 15  (3.258)  
What happens in the case of trademarks registered in the country of origin, prior to the registration 
of a GI, which contains geographical indications for wines or spirits originating from any WTO 
Member?  
 
ANSWER:  
Any trademark intended to be used on wine or distilled beverages, which consists of a geographical 
indication of the place of production of wine or distilled beverages or contains such geographical 
indication in a member of the World Trade Organization: Provided, That where a legitimate user of 
the geographical indication applies for registration of a collective mark with geographical indication 
under  Article 36 (5) by designating the relevant goods as the designated goods, he or she may 
obtain trademark registration (Trademark Act 34(1)(xvi).  
 
- Párrafo 3.255  
Pregunta 16.  ¿Podría indicar de qué depende que una Indicación Geográfica se proteja a través  de 
la ley de marcas o de la Ley de Gestión de la Calidad de los Productos Agrícolas y Pesqueros?  ¿Podría 
especificar cuáles son las diferencias en cuanto a los niveles de protección bajo ambas leyes?  
 
Question 16.  (para 3.255)  
Could you indicate what depends on whether a Geographical Indication is protected through the 
trademark law or the Law on the Quality Management of Agricultural and Fishery Products? Could 
you specify what are the differences in terms of the levels of protection under both laws?  
 
ANSWER : 
According to the Agricultural and Fishery Products Quality Control Act, the registration of 
geographical indications requires agricultural products to be both produced and processed in the 
relevant area subject to the geographical indication. Wher eas, in regard to the collective mark with 
geographical indication under the Trademark Act, it can be registered when satisfying either of two 
requirements.  
 
In accordance with the two Acts, a person who registered a geographical indication has an exclusive 
right to use it, and civil and criminal remedies applied to the infringement on his/her rights are the 
same. For geographical indications, a product bearing a geographical indication can have indication 
labels on its surface. On the other hand, c ollective marks with geographical indications have no 
labels and may be renewed every ten years.  
 
 Collective mark with GI  GI of the Agricultural and Fishery 
Product Quality Control Act  
Subject of application  Incluging Foreign GIs Only domestic GIs 
Nature  Indication of the place of origin  Quality certification  
Geographical 
requirment  Goods produced, manufactured, or 
processed in the specific area  
(The Trademark Act  2(1)(vi)) Goods produced, manufactured, and 
processed in the specific area (The 
Agricultural and Fishery Product Quality 
Control Act  2(1)(viii)) 
Level of protection  Civil and criminal liability (The 
Trademark Act  107, 109, 230)  Civil liability (The Agricultural and 
Fishery Product Quality Control Act  36, 
37) 
 
Pregunta 17.  El párrafo 3.255 establece todas las leyes que regulan la protección de las 
indicaciones geográficas, y entre ellas destaca que "....la Ley de Prevención de la Competencia 
Desleal y Protección del Secreto Comercial protege las indicaciones geográficas no registradas 
cuando su protección en virtud de la Ley de Marcas de Fábrica o de Comercio o la Ley de Gestión de WT/TPR/M/414/Add.1  
 
- 17 - 
 
  la Calidad de los Productos Agrícolas y Pesqueros se ha vuelto inefica z." ¿Podría ampliar información 
sobre esta situación, en qué casos la ley de marcas de fábrica y de Comercio y la Ley de Gestión de 
la Calidad de los Productos Agrícolas y Pesqueros resultan ineficaces para proteger las IGs?  
 
Question 17.  Paragraph 3.255 e stablishes all the laws that regulate the protection of geographical 
indications, and among them it stands out that "... the Law on Prevention of Unfair Competition and 
Protection of Trade Secret protects unregistered geographical indications when their pr otection 
under the Trademark Law or the Law on Quality Management of Agricultural and Fishery Products 
has become ineffective. " Could you expand information on this situation, in which cases the 
trademark law and the Law on Quality Management of Agricultu ral and Fishery Products are 
ineffective in protecting GIs ? 
 
ANSWER:  
The Agricultural and Fishery Products Quality Control Act protects a geographical indication of 
agricultural products, only when the products are both produced and processed in the relevant area 
subject to the geographical indication.  An unauthorized use of a GI protected under a FTA signed by 
Korea cannot be protected under the Trademark Act or the Agricultural and Fishery Products Quality 
Management Act, but can be protected under the Unfair Competition Prevention Act.  Thus, there are 
no enrightments of exclusive use such as patents, but only indirectly protects GIs by prohibiting 
wrongful uses of GIs.  
 
  WT/TPR/M/414/Add.1  
 
- 18 - 
 
  AUSTRALIA  
Report by the Secretariat (WT/TPR/S/414)  
 
3 Trade Policies and Practices by Measure  
3.3 Measures Affecting Production and Trade  
3.3.2 Standards and other technical requirements  
3.3.2.3 Food, health related and other measures  
Page 95, Paragraph 3.141  
 
Australia notes that legislative responsibility for food safety, qua lity and sanitary requirements is 
shared between the Ministry of Food and Drug Safety (MFDS) and Ministry of Agriculture, Food and 
Rural Affairs (MAFRA).  Both ministries are often involved in negotiation of sanitary certificates with 
trading partners to su pport trade, and each Ministry undertakes separate regulatory functions such 
as foreign establishment audits.   
 
Question 1  
What actions does the Republic of Korea take to coordinate activities between relevant Ministries to 
avoid duplicative regulatory and/or administrative processes and costs for trading partners ?  
 
ANSWER : 
MOTIE has been operating the "Trade Promotion Committee," which is a committee for collaboration 
in trade with relevant ministries and discussion on trade -related issues o n a regular basis . 
 
MAFRA  operates its approval system for export establishments for quarantine inspection on animal 
diseases under the Act on the Prevention of Contagious Animal Diseases, while the Ministry of Food 
and Drug Safety (MFDS) administers a registration system to inspe ct sanitation and safety of 
livestock products pursuant to the Special Act on Imported Food Safety Control.  
MAFRA and MFDS have different responsibilities but in some cases, with consideration of minimizing 
the burden on exporting countries, the two Minis tries can conduct joint on -site inspection.  
 
Question 2:  
Is Korea considering undertaking joint regulatory functions between MAFRA and MFDS so, for 
example, a foreign food or livestock establishment would only be subject to one audit process 
(covering foo d safety and sanitary/quarantine issues) rather than two separate audit processes?  
 
ANSWER : 
The Ministry of Agriculture, Food and Rural Affairs (MAFRA) of Korea conducts quarantine inspection 
on animal diseases under the Act on the Prevention of Contagious Animal Diseases, while the Ministry 
of Food and Drug Safety (MFDS) is responsible for sanitation and safety of livestock products 
pursuant to the Special Act on Imported Food Safety Control. There are two separate inspection 
procedures put in pl ace.  
MAFRA and MFDS have different responsibilities but in some cases, considering to minimize the 
burden on exporting countries, the two Ministries can conduct joint on -site inspection.  
 
Report by the Secretariat (WT/TPR/S/414)  
3 Trade Policies and Pract ices by Measure  
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and Phytosanitary Requirements  
3.3.3.2 Quarantine Regulations  
Page 105, Paragraph 3.174  
 
Question 3  
Noting the adoption of single window e -document management system used for the efficient and 
secure exchange of customs certificates,* what are Korea's plans for utilising the global e -Phyto Hub 
for the efficient exchange of phytosanitary certificates?  
 
ANSWER : 
Korea has participated in global e -Phyto Hub pilot project of IPPC in 201 7 and implemented a pilot 
project with the U.S. to exchange e -phytosanitary certificates in 2020.  WT/TPR/M/414/Add.1  
 
- 19 - 
 
  Since May 2021, as Korea has secured compatibility with the U.S., it recently started 
commercialization with the U.S. It is also reviewing to gradually expan d the partners for the 
exchange of e -phytosanitary certificates.  
 
* Report by the Secretariat (WT/TPR/S/414)  
3 Trade Policies and Practices by Measure  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs Procedures, Valuation and Requirements  
3.1.1.1 Procedures  
Page 55, Paragraph 3.7  
 
Report by the Secretariat (WT/TPR/S/414)  
3 Trade Policies and Practices by Measure  
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and Phytosanitary Requirements  
3.3.3.3 Transparency  
Page 106, Paragrap h 3.179  
 
Australia welcomes Korea's ongoing use of SPS notifications to advise of new or revised sanitary and 
phytosanitary measures, and to provide trading partners an opportunity to comment. For a number 
of recent SPS notifications (including G/SPS/N/ROK /727, G/SPS/N/ROK/728, G/SPS/N/ROK/733, 
G/SPS/N/ROK/734) relating to changes to maximum residue limits, Australian notes that Korea has 
provided only limited periods (as little as 18 days) for comment.  
 
Question 4  
How will the Republic of Korea ensure that future notifications required by the Agreement on the 
Application of Sanitary and Phytosanitary Measures allow for a suitable comment period that helps 
trading partners respond, particularly where notifications include extensive technical detai l?  
 
[ANSWER]  
As the positive list system (PLS) will be implemented from January 1, 2022, a default MRL of 
0.01 mg/kg will be applied to pesticides and agricultural products for which permanent MRLs are not 
established. Therefore, Korea's recent SPS notifi cations were made to set permanent MRLs (higher 
than 0.01 mg/kg) for all foods including imported goods within this year and Korea unavoidably 
provided limited periods as the end of the year approaches. Korea will continue to provide enough 
time (60 days) for comment as it did for previous SPS notifications.  
 
Report by the Secretariat (WT/TPR/S/414)  
3 Trade Policies and Practices by Measure  
3.3. Measures Affecting Production and Trade  
3.3.6 Government Procurement  
3.3.6.1 Legislation  
Page 118 - 119, Paragraph 3.214  
 
It is understood that since 2020 Korea has implemented a regime to ensure that innovative products 
account for 1% of the total goods purchased through government procurement.  
 
Question 5  
Could Korea please elaborate on the requirements of  this regime, particularly the technical 
specifications used to identify innovative products.  
 
ANSWER : 
The Innovative Product designation is made among technologically developed products which have 
gone through the technical evaluation and on -site inspecti on based on technological levels, 
marketability and innovative properties of the concerned products.  
 WT/TPR/M/414/Add.1  
 
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  Report by the Secretariat (WT/TPR/S/414)  
 
3 Trade Policies and Practices by Measure  
3.3. Measures Affecting Production and Trade  
3.3.6 Government Procurement  
3.3.6.1 Legislation  
Page 119, Paragraph 3.216  
 
Changes have been made to Korea's 1995 Act on those Contracts Where the State Is a Party. These 
changes included amendments that ent ered into force on 20 March 2018 involving competition 
among tenders eligible for preferential purchase.  
 
Question 6  
Could Korea please elaborate on what the changes involved, and whether international suppliers will 
be eligible for preferential purchase  conditions?  
 
ANSWER : 
The amendments that entered into force on 20 March 2018 contain the following provisions:  
(3) Where there is competition among tenders eligible for preferential purchase prescribed in other 
Acts in offering a contract under paragraph (1), a counterparty to the contract shall be chosen in 
consideration of the purpose and scale of the contract, consideration for the socially disadvantaged, 
etc. 
 
Regarding the new provisions, the Act on Contracts to which the State Is a Party does not treat 
international suppliers less favorably than domestic suppliers.  
 
Report by the Secretariat (WT/TPR/S/414)  
3 Trade Policies and Practices by Measure  
3.3. Measures Affecting Production and Trade  
3.3.6 Government Procurement  
3.3.6.1 Le gislation  
Page 120, Paragraph 3.218  
 
The 2005 Act on Encouragement of Purchase of Green Products (known as the Law on the Promotion 
of Environmentally Friendly Products) requires government agencies and SOEs to purchase 
environmentally friendly products.  
 
Question 7  
Does Korea have any updated information on how environment -friendly products are defined under 
the 2005 Act on Encouragement of Purchase of Green Products? Could Korea share examples of 
technical specifications used to identify environment -friendly products under the Act?  
*This question was previously raised at the 2016 Trade Policy Review Meeting, but Korea did not 
have the information available to response at the time and noted that further updated information 
would be made available (page 14 of the 2016 Trade Review Meet ing Minutes).  
 
[ANSWER]  
In accordance with each subparagraph of Article 2 -2 of the Green Product Purchase Promotion Act, 
eco-label certified products, so called environment -friendly products,  (Article 17, Paragraphs 1 and 
3 of the Environmental Technology  and Environmental Industry Support Act), low -carbon products 
(Article 2, Item 9 of the Framework Act on Low Carbon, Green Growth), Good Recycled product (GR) 
products (Article 33 of the Resource Saving and Recycling Promotion Act, Article 15 of the Indust rial 
Technology Innovation Promotion Act) are defined as green products. Among them, low -carbon 
products were newly included by the 2020 law amendment.  
 
Here is a link that provide information about Eco -Label certification criteria on each of the product 
groups. http://el.keiti.re.kr/enservice/enpage.do?mMenu=2&sMenu=1 . 
 WT/TPR/M/414/Add.1  
 
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  Report by the Secretariat (WT/TPR/S/414)  
 
4 Trade Policies by Sector  
4.1 Agriculture and Livestock  
4.1.2 Policy, Institutional and Regulatory Developments  
Page 140, Paragraph 4.13  
 
Australia notes the Republic of Korea's self - sufficiency targets for a range of food and staples.  
Question 8  
Does Korea's definition of self -sufficiency include investments in offshore agricultural production for 
supply into Korea, of only agriculture p roducts grown/raised in Korea?  
 
ANSWER : 
When calculating self -sufficiency under the Framework Act on Agriculture, Rural Community and 
Food Industry, domestic production only includes agricultural products grown and raised in Korea.  
For reference, self -sufficiency ratio is also defined as the percentage of food consumed that is 
produced domestically by FAO.  
 
Question 9  
Does Korea have policies to actively promote investment in offshore agricultural production to 
support self -suffici ency and food security policies?  If so, what commodities/countries are identified 
as investment opportunities?  
 
ANSWER : 
Korea established an Act on Overseas Agriculture and Forest Resources Development and 
Cooperation in 2012 to support the development and  cooperation for overseas agriculture.  
But Korea does not support a specific product or country. Korea supports loans for facilities and 
equipment of agricultural companies advancing into overseas countries, provides training programs 
to nurture experts i n international agriculture, and shares information on overseas agricultural 
investment.  
 
Report by the Secretariat (WT/TPR/S/414)  
 
4 Trade Policies by Sector  
4.1 Agriculture and Livestock  
4.1.3 Key subsectors  
4.1.3.2 Livestock – meat Pages  148-149, Paragraphs 4.56, 4.57 and 4.59, Chart 4.3 and 
Table 4.4  
 
The report states that per capita consumption of beef and veal has grown while domestic production 
has remained steady. The report also states that, based on 2019 UN Comtrade data, 59.9% of  beef 
imports come from the United States and 35.5% of beef imports come from Australia. Australia 
notes that the equivalent figures for 2016 were that 46.2% of beef imports came from the United 
States and that 47.6% of beef imports came from Australia. Ta ble 4.4 shows that the MFN tariff on 
beef is 40% and that there is a large disparity in the applied duties on beef between the United 
States and Australia under the KORUS FTA and the Korea -Australia FTA respectively. Table 4.4 also 
notes that there is an a gricultural safeguard for beef in the KORUS FTA and the Korea -Australia FTA. 
However, the table does not disclose the respective volumes of beef permitted under the KORUS 
FTA and the Korea -Australia FTA before safeguard duties can be triggered.  Nor does th e table 
disclose that the agricultural safeguard for beef under the Korea -Australia FTA has been applied by 
the Republic of Korea in each year of the operation of the Korea -Australia FTA, while the agricultural 
safeguard for beef under the KORUS FTA has ne ver been triggered. Finally, Australia notes that the 
report states that the domestic price of beef and veal was 1.4 times world levels in 2018.  
 
Question 10  
To what extent does the Republic of Korea consider that the MFN tariff on beef, the applied duties 
on beef under the KORUS FTA and the Korea -Australia FTA, and the annual application of the 
agricultural safeguard for beef under the Korea -Australia FTA, act to support the domestic production 
of beef in the Republic of Korea?  
 WT/TPR/M/414/Add.1  
 
- 22 - 
 
  ANSWER : 
Through the M FN tariff and FTA applied tariff rate, Korea has opened its market to bilateral and 
multilateral partners. Moreover, the ASG is a system to impose additional tariff rate when the import 
volume of applied products exceeds a certain level.  
After the KOR -AUS FTA came into effect in December 2014, the production volume of Korean beef 
has decreased from 261,000 tons in 2014 to 245,000 tons in 2019, and it is presumed that the 
degree of the fall in production was alleviated due to the ASG.  
 
Question 11  
Has the Republic of Korea undertaken any studies or reviews to assess the extent to which its import 
tariff arrangements for beef support the domestic production of beef in the Republic of Korea? If so, 
what did they conclude?  
 
ANSWER : 
There has  been no studies or  reviews in that regard since the tariff rate for beef has fixed upon the 
UR.  
According to the Korea  Rural Economic Institute regarding the evaluation on KOR -AUS FTA 
Implementation issued in April 2021, compared to the scenario where the FTA is not implemented, 
it is analysed  that the beef production has decreased by 5 -year average of KRW 12.2 billion.  
 
Question 12  
To what extent does the Republic of Korea con sider that the MFN tariff on beef, the disparity between 
the applied duties on beef under the KORUS FTA and the Korea -Australia FTA respectively, and the 
annual application of the agricultural safeguard for beef under the Korea -Australia FTA, are adversely  
affecting competition in the imported beef market?  
 
ANSWER : 
It is inevitable that some of the FTA benefits at a national level are offset by import substitution. 
Part of the increase in imports of Australian beef has reduced imports of beef from other countries 
such as the United States and New Zealand.  
As the ASG measures from the KOR -AUS FTA prevent rapid increase in import volume, the ASG 
might be presumed to decrease the degree of the fall in the import volume from other countries 
than Austral ia. 
 
Question 13  
Has the Republic of Korea undertaken any studies or reviews to assess the effects of its import tariff 
arrangements for beef on competition in the imported beef market? If so, what did they conclude?  
 
ANSWER : 
According to report of Korea Rural Economic Institute regarding the evaluation on KOR -AUS FTA  
Implementation issued in April 2021, the impact assessment of KOR -AUS FTA implementation was 
conducted.  
Following the KOR -AUS FTA coming into effect, compared to the scenario where the KOR -AUS FTA 
is not introduced, the import volume of American beef has decreased by five -year average of 
3,453  tons.  
 
Question 14  
Does the Republic of Korea consider that better outcomes for c onsumers, including with respect to 
the price of imported beef and the current and future availability of imported beef, could be achieved 
through revised import tariff arrangements?  
 
ANSWER : 
Currently, beef is imported at a tariff lower than the MFN tariff through several FTAs.  
Due to lower tariff rates from the FTA, the imported beef market has been expanded and consumers 
have more options than before.  
 WT/TPR/M/414/Add.1  
 
- 23 - 
 
  Report by the Secretariat (WT/TPR/S/414)  
 
4 Trade Policies by Sector  
4.5 Services  
4.5.3 Financial  Services  Page 169, Paragraph 4.165  
 
The Secretariat's Report states that during the review period, more foreign financial companies left 
than entered the Korean market. The Report also indicates that the market share of foreign financial 
institutions has declined since the last review. This withdrawal of foreign firms is despite strong 
growth in the sector over the period, reported to be 9.1 per cent in 2020.   
 
Question 15  
Are authorities concerned by the decline in foreign participation in the financial sector, including any 
implications for competition in the sector?  
 
ANSWER : 
Due to the low interest rate, economic contraction caused by Covid19 pandemic and development 
of non -face-to-face business in the financial sector, the withdrawal of off -line branches is a global 
trend.  
Korea is pursuing policies regarding stabilizing fin ancial markets and establishing an advanced 
financial order abiding by the principle of FTA, such as National Treatment and Most Favoured 
Treatment between local financial institutions and foreign ones.  
 
Question 16  
If so, are authorities considering meas ures to address those concerns?  
 
ANSWER : 
Due to the low interest rate, economic contraction caused by Covid19 pandemic and development 
of non -face-to-face business in the financial sector, the withdrawal of off -line branches is a global 
trend.  
Korea is pu rsuing policies regarding stabilizing financial markets and establishing an advanced 
financial order abiding by the principle of FTA, such as National Treatment and Most Favoured 
Treatment between local financial institutions and foreign ones.  
 
Report by the Secretariat (WT/TPR/S/414)  
 
1 Economic Environment  
1.1 Main Features of the Economy  
Pages 15 -17, Paragraphs 1.1 and 1.2  
 
Report by the Secretariat (WT/TPR/S/414)  
4 Trade Policies by Sector  
4.5 Services  
4.5.3 Financial services  
4.5.3.1 Banking  
4.5.3.1.3 Non -banking  
Page 173, Paragraph 4.189  
 
The report states that the Republic of Korea has a rapidly ageing population, that the old -age 
dependency ratio will be the highest of OECD Member States by 2060, and that the Republic of 
Korea has the worst old -age relative poverty rate in the OECD due to limited pension income and 
low incomes for many of those still working. The report also notes that the asset management sector 
comprises both public and private funds markets and that the National Pension Servi ce manages the 
world's third -largest pension fund.  
 
Question 17  
What measures is the Republic of Korea considering increasing the returns from the management of 
pension assets to increase pension income for its old -age citizens?  
 
ANSWER : 
To support for diversifying retire pension products and increasing return rate of them, the 
Supervision regulation of a retire pension has been amended and implemented since 2018 as below.  WT/TPR/M/414/Add.1  
 
- 24 - 
 
  - For Determined Contribution(DB) and Individual Retirement Pension(IRP), TDF(Target Date 
Fund) can be included in asset of retirement pension up to 100%.  
- For DB, Reits can be included in alternative investment asset.  
 
Question 18  
What role does the Republic  of Korea see for foreign funds managers and foreign financial institutions 
in the Republic of Korea's old -age pension system?  
 
ANSWER : 
The accumulated amount of individual pension exceeded 300 Trillion won and that of retire pension 
exceeded 200 trillion won as of 2020. As its market volume has been continuously increased, we 
hope foreign funds manager and financial institution participate in the market actively.  
 
Report by the Republic of Korea (WT/TPR/G/414)  
 
3 Economic Policy  
3.3 Sectoral Policies  
3.3.2 Manufacturing: Becoming a Strong Industrial Powerhouse  
Page 7, Paragraph 3.16  
 
The report also states the Korean Government has placed its focus on regulatory improvements, 
standardisation, and industrial reorganisation to advance Korea's in dustrial ecosystem and promote 
innovation in the manufacturing sector. Through its Modern Manufacturing Strategy, Australia is 
pursuing regulatory improvements and digital opportunities, and is interested in Korea's experience 
in its pursuit of the same.  
 
Question 19  
Can Korea share any information about its experiences relating to the pursuit of advances in Korea's 
industrial ecosystem and the promotion of innovation in the manufacturing sectors and share any 
lessons learned from this approach?  
 
ANSWER : 
Korean Government announced 'Manufacturing  Renaissance Vision and Strategy ' in June, 2019 and 
declared ambitious goal to be the renowned major manufacturing powerhouse. The Strategy 
contains policies with respect to structural  innovation of industry, growth of emerging new industries, 
and establishment of industrial ecosystem. To  promote innovation, Korean government implemented 
policies such as building smart industrial complex and promoting companies to manufacture 
eco-friendly commodities. To grow emerging industries including semiconductor industry, future 
mobility industry an d bio-tech industry, the government implemented standardization policies and 
set incentives for private companies to enhance their investment with regard to emerging industries. 
To establish ecosystem, Korean government enhanced educational opportunities f or both workers 
and students, while promoting challenging R&D. It seems that Korea has successfully  built strong 
manufacturing base with those policies, and it led Korea to provide qualified stable jobs for workers 
and good foundation for production, which  worked as a strong engine for Korea to perform better 
than other countries under the COVID -19 crisis.  
 
Report by the Republic of Korea (WT/TPR/G/414)  
 
3 Economic Policy  
3.3 Sectoral Policies  
3.3.2 Manufacturing: Becoming a Strong Industrial Powerhouse  
Page 7, Paragraph 3.17  
 
The report states that to develop new services, enhance quality, and strengthen safety in the era of 
the 4th industrial revolution, Korea is making continued efforts to build necessary standards for 
different sectors, such as electric  and autonomous vehicles, energy (hydrogen) and non -memory 
semiconductors. Korea is also planning to propose 300 international standards by 2023. Through its 
Supply Chain Resilience Initiative, Australia is working with industry to better understand 
semico nductor supply chain vulnerabilities and potential mitigations.  
 WT/TPR/M/414/Add.1  
 
- 25 - 
 
  Question 20  
Can Korea share its experience with building standards for semiconductors and how they see this 
contributing to the resilience of semiconductor supply chains?  
 
ANSWER : 
Korea has mainly developed standards on semiconductors through standardization activities in IEC 
TC 47(Semiconductor Devices). Therefore, if Australian experts participate in the committee, we 
believe that practical experiences can be exchanged between the  two countries by the experts.  
In addition, we understand that the resilience of semiconductor supply chains is closely related to 
the quantity of the semiconductor rather than standards we develops. In this regard, we determine 
that the issue on the resi lience of semiconductor supply chain needs to consider the aspect of the 
manufacturing capability.  
 
Question 21  
Australia is also interested in understanding Korea's experience building standards for hydrogen, 
and how that is driving innovation in manufac turing in that area. Can Korea share more information 
about this?  
 
ANSWER : 
Korea has accumulated its rich experience and data by conducting various research and development 
projects for hydrogen vehicles and hydrogen fuel cells. Based on this, Korea has su ggested 
4 international standards, and is currently establishing/improving its national standards of 
performance and quality of hydrogen and fuel cell products. Going forward, Korea hopes to 
contribute to establishing international standards by sharing its  hydrogen safety standards as 
references.  
 
Question 22  
What is Korea's appetite for international collaboration on clean energy and recycling, as well as 
critical mineral processing supply chain opportunities?  
 
ANSWER : 
As the demand for critical minerals for secondary batteries and permanent magnets is increasing 
due to carbon neutrality and energy transition in Korea, it is necessary to secure a stable supply 
chain for critical minerals . 
In this regards, Korea is strengthening bilateral cooperati on with major producers to secure 
overseas mineral resources.  
Korea also has a willingness to cooperate internationally in renewable energy of various countries 
and can promote bilateral multilateral cooperation.  
  WT/TPR/M/414/Add.1  
 
- 26 - 
 
  BRAZIL  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
II TRADE policy REVIEW: TRADE POLICIES BY SECTOR  
Page 176 (Para 4.207)  
- The main legislation regulating the communications sector are the Telecommunications Business 
Act and its Enforcement Decree of 2021 (on registration r equirements for telecommunication 
businesses and standards for mandatory wholesale services).  
 
Question : 
1. Which markets are defined as mandatory wholesale services and how are they chosen? Also, 
could Korea elaborate on the nature of the mandated standards?  
 
[Answer]  
Mobile telecommunication services (3G, LTE, 5G) provided by SKT, the No. 1 mobile 
telecommunication market operator, are designated as mandatory wholesale services. Article 38(2) 
of the Telecommunications Business Act and Article 39 -7(1) of the Enforcement Decree of the same 
Act stipulate that each unit market should be determined in consideration of market size, number of 
users, and competitive conditions.  
 
Page 177 (Para 4.212)  
The MSIT determines and publicly notifies the scope of, and guidelines for, the conditions, 
procedures, methods, and calculations of interconnection charges.  
 
Question : 
2. Could Korea give more details on how interconnection charges are calculated?  
 
[Answer]  
The Korean government calculates the costs related t o Interconnection accounting separately from 
the telecommunications or internet service provider's investment and operating expenses.  
 
Question:  
3. Is there a cost model in place with this objective? If so, on which methodology is it based on?  
 
[Answer]  
The Korean government calculates the Interconnection rates based on LRIC(;Long Run Incremental 
cost)effectiveness  
 
Page 177 (Para 4.214)  
In 2019, Korea rolled out a comprehensive strategy named 5G+, aimed at promoting a "5G 
ecosystem" where 5G is the underl ying infrastructure connecting advanced devices and innovative 
services.  
 
Question:  
4. Considering its pioneer role on the implementation of 5G worldwide, could Korea elaborate on the 
strategies adopted and the subsequent results of its spectrum awarding p rocess for 5G?  
 
[Answer]  
In April 19, the Korean government announced a "5G+ strategy" to realize pan -governmental 
innovative growth in line with the world's first commercialization of 5G. The main content is to 
implement the five core services of realisti c content, smart factories, digital healthcare, smart 
factories, and smart cities on top of 5G infrastructure and foster 10 core industries such as network 
equipment, next -generation smartphones, and edge computing. In addition, this strategy includes 
investment in public leading project, expansion of private investment, creation of an industrial 
foundation, system maintenance, and promotion of overseas expansion support to build a 5G 
ecosystem.  
After announcing the "5G+ Spectrum Plan" in December 2019, the following subsequent measures 
were implemented. In order to improve unlicensed technology to 5G level, the 6GHz band was first 
supplied as the next -generation Wi -Fi frequency (October 2020), wh ich contributes to fostering 5G+ 
industries such as smart cities, and regulatory improvement for other types of unlicensed technology 
(e.g. IoT, sensing) is under way. In addition, the Korean government introduced a frequency band WT/TPR/M/414/Add.1  
 
- 27 - 
 
  maintenance evaluation an d forecasting system that notifies users of the maintenance time and 
expected measures in advance, and established a clearing house system in charge of recovery and 
relocation and joint use. The future plan is to secure 1,870 MHz bandwidth by the end of 20 21 and 
additional 770 MHz bandwidth by 2026.  
 
II TRADE policy regime: framework and objectives  
Page 176 (Para 4.206)  
4.206. The Korea Internet and Security Agency (KISA) specializes in promoting Internet and 
information security in the private sector. The National Information Society Agency (NIA) is 
responsible for the overall implementation and support of the informatization of the country. The 
National IT Industry Promotion Agency (NIPA) engages in a variety of initiatives to raise national 
competitivenes s and secure growth engines for the future by promoting increased use of, inter alia , 
AI, virtual reality/augmented reality (VR/AR), 5G, and cloud computing in conventional industries. 
It also helps promising SMEs and start -ups expand into global markets.  
 
Page 178 (Para 4.220)  
4.220. In the ITU's Global Cybersecurity Index (GCI), Korea was ranked 15th in 2018 among 
155 participants.89 The Government considers cyberspace crucial to people's daily lives, economic 
activities, and the Government's operations.  Interconnection across various information and 
communications devices, including the application of IoT and the borderless nature of cyberspace, 
makes cyberspace safety control complex. In 2019, the Government devised Korea's first National 
Cybersecurity Strategy, which elaborates on the roles and responsibilities of all members of society 
to create a national culture of security practice, with a view to enhancing the country's cyber -defence 
capacity.90 The Government established the Private Sector Informa tion Protection Comprehensive 
Plan 2019, to secure cyber -safety in the private sector and promote innovation in the information 
security industry. In addition, Korea promulgated privacy -related laws: the Act on Promotion of 
Information and Communication Ne twork Utilization and Information Protection (most recently 
revised in June 2020) and the Personal Information Protection Act.  
 
Question:  
5. Can the Republic of Korea elaborate more on the security policies and regulations that KISA are 
responsible? Does t he referred Agency is responsible for cybersecurity, data protection and other 
security related policies? Please specify which areas KISA is involved in, and if there are other 
Agencies that have a complementary role in that matter.  
 
[Answer]  
KISA is an af filiated organization of the Ministry of Science and ICT and takes its role and plays its 
responsibility based on related laws such as the Act on Promotion of Information and 
Communications Network Utilization and Information Protection, Electronic Signatu re Act, Internet 
Address Resources Act, and the Act on the Promotion of Information Security Industry.  
The duties of the KISA are specified in each subparagraph of Article 52 (KISA) (3) of the Act on 
Promotion of Information and Communication Network Util ization and Information Protection.  
 
Question:  
6. Can the Republic of Korea give more information regarding the National Cybersecurity Strategy, 
especially on the specific Agencies and Governmental Entities that have a role in that strategy and 
how they c oordinate on cybersecurity policy and in dealing with cyberthreats?  
 
[Answer]  
Regarding national cyber security governance, in Korea, with the Blue House National Security Office 
taking  central role, the Ministry of Science and ICT in the private sector, t he National Intelligence 
Service in the public sector, and the Ministry of National Defence in the defence  sector have 
established a response system for each sector in charge of cyber security. In 2019, the Blue House 
National Security Office announced the  "National Cybersecurity Strategy" including cybersecurity 
strategies in the private sector, public sector, and defence  sector.  
 
Page 176 (Para 4.209)  
4.209. Foreign investment in radio broadcasting and in over -the-air broadcasting is prohibited. 
Foreign e quity restrictions (up to 49%, 20%, or 10%) apply to programme broadcasting services as 
defined under the Broadcasting Act84, cable network providers, broadcasting via satellite and other 
broadcasting, wired communications and wireless and satellite commun ications, and other electronic 
communications (Table 2.1).  WT/TPR/M/414/Add.1  
 
- 28 - 
 
  Question:  
7. In the context of audiovisual content distribution, how are Over -the-top streaming products and 
services, either Video on demand or Linear TV, treated in the Republic of Korea's Regula tory 
Framework? Are those products and services licensed? If yes, which license apply . 
 
[Answer]  
Foreign investment prohibition and foreign equity restrictions according to the Broadcasting Act do 
not apply to Over -the-top streaming products and services, either Video on demand or Linear TV 
which are provided through information and telecommunications network. Otherwise, to provide 
those products and services, the business operators shall report thereon to the Minister of Science 
and ICT, as the v alue-added telecommunications business, under the Telecommunication Act 21(1).   
 
Page 177 (Para 4.210)  
4.210. Universal service covers the provision of any basic telecommunications service at a 
reasonable fee, regardless of time and place. Fixed broadband was designated as a universal service 
in 2020. All telecommunications business operators have the obligation to provide universal service, 
or compensate any loss caused by the provision of such service; the MSIT may exempt operators 
from this obligation. T he authorities state that, by presidential decree, telecommunications business 
operators with an annual sale value from telecommunications services less than or equal to 
KRW 30 billion are exempted from this obligation. All value -added telecommunications b usiness 
operators are also exempted.  
 
Question:  
8. Can the Republic of Korea elaborate more on the usage/application of the universal service fund? 
Which operators and/or projects are funded with this fund? Which is the process in place to allow 
for the a pplication/usage of the fund?  
 
[Answer]  
The universal service in Korea consists of service rate reduction and service provision. In the case 
of rate reduction, the telecommunication business operators provide reduction at their own expenses 
for the vulnera ble social groups. For service provision, the business operator designated by the 
government becomes a mandatory service provider, and the telecommunication business operators 
with annual sales exceeding KRW 30 billion share the loss caused by the service provider's universal 
service provision. The loss shares are calculated according to government regulations and are paid 
through direct transactions between operators.  
 
Page 176 (Para 4.208)  
4.208. The Telecommunications Business Act was most recently amend ed in 2020 (Act No. 17352). 
It classified telecommunications business into facilities -based and value -added operators.83 Foreign 
investment in facilities -based telecom services is subject to a ceiling of 49%, while value -added 
telecom services are fully op en to foreign investment. For facilities -based telecom services, foreign 
corporations from certain RTA partners and that passed the public interest review are not subject to 
this equity restriction. The MSIT may prohibit a foreign shareholder from becoming  the largest 
individual shareholder (5% or more of shares) in KT.  
 
Page 177 (Para 4.211)  
4.211. The authorities state that facilities -based telecommunications business operators must report 
the terms of use (charges and conditions) of each telecommunicatio ns service it intends to provide 
to the MSIT. However, the terms of use reported by KT on an urban phone, and that of SK Telecom 
on a mobile phone, may be rejected within 15 days if the MSIT deems there is a risk of harming 
users' interests or fair competi tion. Telecommunication tariffs that do not require MSIT approval 
need to be notified to the MSIT.  
 
Question for paras 4.208 and 4.211 : 
 
Question:  
9. Can the Republic of Korea give more information regarding its licensing framework? Can either 
facilities -based, value -added operators licenses or any other licenses incentivize the development of 
the supply on the telecom market of the Open -RAN model and the 5G standalone service 
architecture? If yes, how so.  
 WT/TPR/M/414/Add.1  
 
- 29 - 
 
  [Answer]  
Regarding the Korean licensing system, th e registration system is applied to facility -based 
telecommunications businesses and the reporting system is applied to value -added 
telecommunications businesses. The registration system is carried out by the Ministry of Science 
and ICT issuing a registrat ion card when the applicant for registration meets the registration 
requirements prescribed by law and applies for registration. In the case of the reporting system, it 
is operated as having effect of reporting when the reporter meets the reporting require ments 
prescribed by law and reports it to the Ministry of Science and ICT. Registration requirements and 
reporting requirements are stipulated in Articles 6 and 22 of the Telecommunications Business Act 
and Articles 8 and 29 of the Enforcement Decree of th e same Act.  
 
Page 178 (Para 4.218)  
4.218. In December 2019, the MSIT announced a 5G+ Spectrum Plan, which incorporates three 
policy directions:  
• Advance unlicensed technologies to the 5G performance level. Licensed frequency assignments 
are to be concentrated on strategic 5G+ industries including smart city, smart factory, autonomous 
vehicles, drones, and digital healthcare. The Government plans to release unlicensed frequencies to 
each strategic 5G+ industry and improve technology regulations to help advance unlicensed 
technologies (Wi -Fi, Internet of Things (IoT), sensing, etc.) to the 5G level of performance.  
• Secure the world's widest 5G ban ds. The MSIT plans to secure additional spectrum, up to 
2,640  MHz, which will increase spectrum availability from 2,680 MHz now to 5,320 MHz by 2026.  
• Innovate spectrum management and systems, as well as institutional systems. The MSIT is to 
improve freq uency supply approaches and management systems to respond to diversifying demand.  
 
Question:  
10. In the context of 5G, are there coverage obligations related to spectrum auctions in place or 
planned in the auction proceedings?  
 
[Answer]  
There are no specif ic auction plans for 5G frequencies yet.  
 
Question:  
11. Infrastructure sharing is critical for the deployment of service in certain areas. Given that, can 
the Republic of Korea supply additional  information regarding spectrum sharing in their regulatory 
regime?  
 
[Answer]  
Korea shares frequencies within the scope of no interference through geographical separation in the 
regulatory framework, and is developing a Korean -style co -use technology, Korea -Frequency Control 
(KFC), to share frequencies in neighbouring  regions in the future.  
 
PART I: QUESTIONS REGARDIN G THE SECRETARIAT REPORT  
 
III TRADE POLICIES AND PRACTICES BY MEASURE  
Page 73 (Paras 3.65 – 3,67)  
3.65. According to Korea's last WTO notification on laws and regulations, the main legal framework 
governing contingency measures remained virtually unchanged  since March 2011.77 Contingency 
(trade remedy) measures remain authorized under the Customs Act (last amended in 2020) and the 
Act on the Investigation of Unfair International Trade Practices and Remedy Against Injury to 
Industry (2001) (last amended in 2 017), and implemented under their Enforcement Decrees last 
amended in 2020 and 2016, respectively.78 The revision of the Enforcement Decree of the Customs 
Act, in force as of 1 January 2021, involved the strengthening of the procedural interest protection 
of parties, supplementing the investigation procedure, and amending the industry injury 
investigation procedures.  
 
3.66. Korea's RTAs haven specific trade remedies provisions. At the time of the previous Review, 
five of its RTAs contained a specific trade remedies chapter in which the parties' WTO rights and 
obligations on the application of safeguard, anti -dumping, and countervailing measures were 
preserved.79 Certain provisions requiring clarification included: (i) the possibility of excluding 
imports of products covered under the relevant bilateral agreement from the application of safeguard 
measures80; (ii) the provision of written notice of an application for anti -dumping measures81, or 
anti-dumping and countervailing measures, prior to the initiation o f an investigation82; (iii) the WT/TPR/M/414/Add.1  
 
- 30 - 
 
  possibility of holding a meeting or consultations prior to the initiation of an anti -dumping and 
countervailing measure investigation83; (iv) the transmission of written information regarding 
procedures for requesting price undertakings and an obligation to duly consider or give reasonable 
consideration to undertakings proposed or requested by exporters84; (v) the consideration of 
applications for anti -dumping measures with respect to goods on which anti -dumping measures have  
been terminated in the previous 12 months as a result of a review85; (vi) the application of the de 
minimis dumping margin threshold set out in Article 5.8 of the Anti -Dumping Agreement in new 
shipper reviews86; and (vii) the creation of a Committee on Tr ade Remedies, to be convened at 
least once a year, to oversee the trade remedies chapter of the relevant RTA and to discuss various 
other matters relating to trade remedies agreed by the parties.87  
 
3.67. The Korea Trade Commission (KTC), under MOTIE, admi nisters the measures and investigates 
and determines whether imports are dumped or subsidized and whether they cause or threaten to 
cause injury to the domestic industry. KTC investigations under emergency safeguard provisions 
determine whether imports hav e caused or threatened to cause "serious" injury to the domestic 
industry. The decision on the imposition of anti -dumping and countervailing duties is taken by the 
MOEF.  
 
Question:  
12. In the context of Free Trade Agreements, has Korea ever applied bilateral safeguard measures 
or agricultural bilateral safeguard measures? If so, could the Korean delegation please provide us 
with a list of those measures, including the dates of imposi tion, the products subject to them and 
the countries against whose exports the measures were applied?  
 
[Answer]  
In the context of FTAs, Korea does not have applied any bilateral safeguard or agricultural bilateral 
safeguard measure.  
 
Question:  
13. Does Ko rea have, in its internal legislation, an established timeline for global safeguards 
investigations? If so, which is the period of investigation? Is it mandatory?  
 
[Answer]  
Pursuant to relevant legislation, the period of the global safeguards investigation s shall be four 
months from the initiation, while it can be extended up to two months.  
*Act on Investigation of Unfair International Trade Practices and Remedy against Injury to Industry, 
Article 16.  
 
Question:  
14. Has Korea ever applied global safeguards ? If so, did Korea exclude FTA partners from the 
measures? If so, which were the exempted countries and upon which legal basis has the exclusion 
occurred?  
 
[Answer]  
The latest global safeguard measure by Korea has been applied in 2001. Including this case and 
other previous cases, there is no case in which Korea has excluded any FTA partners from a global 
safeguard measure. (The first FTA which was signed by Korea and entered in force is the Korea -Chile 
FTA in 2004.)  
 
Question:  
15. According to the Korean i nternal legislation, is it possible to open trade remedies investigations 
either "ex officio" by the investigating authority or upon other governmental bodies petitions? If so, 
could you please elaborate on how this would work, particularly regarding the d ata that has to be 
analysed  by the investigating authority in order to take the decision to open the process or not?  
 
[Answer]  
Pursuant to relevant legislation, the KTC may initiate a SG ex officio or upon the request from the 
central governmental agency w hich covers the subject industrial sector. For the AD or SCM, the KTC 
may not initiate an investigation ex officio, but the central governmental agency which covers the 
subject industrial sector can request the initiation. However, there has been no cases regarding the 
SG investigation initiated by the KTC or upon the request from a central government agency, even WT/TPR/M/414/Add.1  
 
- 31 - 
 
  though the decision to open the process or not should be made under objective and due 
consideration of particular aspects of each individual case .  
 
Page 105 (Paras 3.174 – 3,175)  
3.174. Imports of plants and plant products must have a phytosanitary certificate issued by the 
competent authority in the exporting country. Imports of soil, plants with soil, and certain plants or 
vegetable materials ar e banned. Imports of rice in the husk, chaff, and rice straw from all origins, 
except Japan and Chinese Taipei, are prohibited for pest reasons. Plants for planting from countries 
with prohibited quarantine pests, such as Citrus huanglongbing (greening) di sease and Radopholus 
similis, etc., are also prohibited or restricted.  
3.175. Animal and animal products are subject to inspection and quarantine. Document and 
organoleptic inspections and laboratory testing, if necessary, are undertaken to verify that no 
contagious animal disease is brought into Korea and that no hazard is posed to public health. Korea 
bans the import of animals and their products from countries affected by exotic animal diseases, 
such as foot -and-mouth disease and African swine fever ( ASF). Upon request of the exporting 
country, the import ban may be lifted depending on the outcome of import risk analysis. Imports 
from countries affected by highly pathogenic avian influenza (HPAI) are banned, but those of poultry 
meat that is heat -proce ssed to inactivate the HPAI virus are allowed. Suspension of imports because 
of an ASF outbreak in several countries was also enforced during the review period. The 
comprehensive list of all HPAI -, ASF -, and bovine spongiform encephalopathy (BSE) -related i mport 
suspensions by product and origin is available on the APQA website 
(https://www.qia.go.kr/english/html/Animal_livestock/02AnimalLivestock_quar_ins_info_eng.jsp). 
Cheese imports must meet Korea's pasteurization requirements.22  
 
Question:  
16. According  to paragraph 3.174 and 3.175 of the Report by the Secretariat, imports of plants and 
plant products must have a phytosanitary certificate issued by the competent authority in the 
exporting country and animal and animal products are subject to inspection a nd quarantine. In 
Brazil's experience, some of these procedures take a long time to be undertaken. In this sense, 
could Korea please inform if there are plans to simplify the present approval procedures?  
 
[Answer]  
Import quarantine for plants and plant pro ducts is carried out in accordance with the domestic law 
(Plant Protection Act), and a certain amount of time is required to conduct quarantine process. 
Therefore, Korea does not consider to simplify the procedures.  
The import permit of animal and livesto ck products is reviewed and determined upon request by an 
exporting country, in accordance with the domestic law (Act on the Prevention of Contagious Animal 
Diseases). The approval time may be reduced according to prompt provision of information by the 
exporting country, as well as the on -site inspection.  
  WT/TPR/M/414/Add.1  
 
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  BRUNEI DARUSSALAM  
Questions regarding Secretariat Report  
 
2 TRADE AND INVESTMENT REGIMES  
2.5 Trade Agreements and Arrangements  
2.5.2.1 RCEP  
 
Pg. 44  
 
2.54. The RCEP Agreement is to enter into force for those signatory States that have deposited their 
instrument of ratification, acceptance, or approval 60 days after the date on which at least six ASEAN 
signatories and three non -ASEAN signatories have deposited their instrument of ratification, 
accepta nce, or approval with the Depository. Currently, Korea is examining the Agreement and its 
impact assessment. After that, the Agreement is to be submitted for presidential approval, and then 
for ratification at the National Assembly.  
 
Question  1: Can the Re public of Korea provide details or elaborate on its examination and impact 
assessment, and provide updates on the status of its procedures for the ratification, acceptance, or 
approval of the RCEP Agreement?  
 
ANSWER : 
For the 20years after the EIF , Korea's GDP is expected to grow about 0.14% and consumer benefit 
will be expand around USD  1.2 billion.  
Korea is on the final phase of domestic procedures for the ratification. We have submitted the request 
for ratification to the National Assembly on t he first of October and expect  to complete the process 
within this year.  
 
4 TRADE AND INVESTMENT POLICY  
4.4 Investment Policies  
 
Pg. 13  
 
Promoting foreign investment and enhancing the substantiality  
 
4.39. The Korean Government is making an effort to promote re -investment by foreign -capital 
invested companies, to encourage foreign investment in high value -added sectors and to advance 
infrastructure to induce investment.  
 
4.40. On 4 February 2020, the Foreign Investment Promotion Act was amended to allo w the 
recognition of investment of unappropriated retained earnings in the establishment or extension of 
plants as foreign investment, thereby promoting re -investment within Korea by foreign -capital 
invested companies.  
 
4.41. In addition, to attract substa ntive foreign investment, the Government is taking into account, 
inter alia, the market competitiveness of the products by investors, their presence at home, and the 
possibility of attracting domestic investment.  
 
Question  2: Can the Republic of Korea provide details on the high value add sectors identified for 
reinvestment by foreign -capital invested companies, and what benefits or inducements these 
companies are given? Does the Government have any statistics or data on the success of this 
programme thus far?  
 
[ANSWER]  
High-quality Investment projects are often characterized by high levels of job -creating effect (new 
employments planned), more value -added created(e.g. R&D investment, regional headquarter), or 
engagement of c utting -edge technologies,  
For the re -investments of such areas, same incentives as new investments are 
provided.( e.g. taxation incentives, cash grants)  
(Data: Since the policy change ('20.8.5.) until '21.9.30, total re -investments amount to 
KRW 731 billion , whereas approved (total*ratio of foreign shares of the firm) re -investments amount 
to KRW  668 bilion ).   WT/TPR/M/414/Add.1  
 
- 33 - 
 
  CANADA  
Secretariat Report – Korea  
 
SUMMARY  
 
I ECONOMIC ENVIRONMENT  
Page 15, paragraph 1.1  
The report indicates that Small and medium -sized enterprises (SMEs) continue to play a considerable 
role in the economy but are affected by higher labour costs, despite government aid and continuous 
widespread support to help them adjust, raise their compe titiveness, and strengthen partnerships 
with large conglomerates.  
 
Question 1: How are SMEs defined for the purposes of statistical and policy analysis?  
 
ANSWER : 
According to the Framework Act on Small and Medium Enterprises, small and medium -sized 
enterprises (SMEs) must meet both the size and independence standards.  
As for the size criteria, the total assets must be less than 500 billion won and the average sales over 
3 years must meet the criteria for each major industry. Previously, the size criteria must meet the 
number of employees and capital amount by industry, but since 2015, a single criteria of the average 
sales over 3 years has been applied.  
For example, reflecting the characteristics of the detailed manufacturing industry,  
- 6 manufacturing business types including electrical equipment manufacturing: KRW 150 billion or 
less (USD 125 million)  
- 12 manufacturing business types including food manufacturing: KRW 100 billion or less 
(USD 84 million)  
 - 6 manufacturing business typ es including manufacturing of medical, precision, optics and clocks 
and wholesale and retail businesses : KRW 80 billion won or less (USD 42 million)  
For independence criteria, the total assets of the affiliated must be less than 500 billion won, the 
compa ny must not belong to a corporate group subject to disclosure, and the average sales amount 
of the affiliate's (as much as the investment ratio) must meet the size standards for each industry.  
 
Question 2: Please provide any available statistics on the role s of SMEs in Korea's economy and 
participation in international trade, specifically: 1) percentage of businesses that are SMEs; 
2) employment profiles of SMEs (e.g. percentage of total employment generated by SMEs); and 
3) exports and imports by SMEs (e.g.  percentage of all exports and imports for SMEs, total number 
of SMEs that are exporting and importing).  
 
ANSWER : 
(1) Korea SMEs make up around 99.9% of total number of enterprises, (As of 2018, SMEs were 
6,638,694 vs large companies were 5,062)  
 
(2) and a ccount for 83.1% of employment across all industries. (As of 2018, SMEs employed 
17,103,938, and large enterprises employed 5,062)  
 
(3-1) Korea's total exports in 2020 amounted to USD 512.8 billion, of which SME exports were 
USD 100.8 billion, accounting f or 19.7% of total exports.  
 
* Exports and proportion by company size (cumulative in 2020, USD billion, %): Large enterprises 
3,214 (62.7), middle -market enterprises 894 (17.6), SMEs 1,008 (19.7)  
 
(3-2) As of 2020, the total number of exporting companies in  Korea was 98,187, of which 
94,934  were exporting SMEs, accounting for 96.7% of the total exporting companies.  
 
* Number and proportion of exporting companies by company size (cumulative in 2020, number of 
companies, %): large enterprises 923 (1.0), middle -market enterprises 2,330 (2.4), SMEs 94,934 
(96.7)  
 
Question 3: Does Korea collect statistics on SME ownership by diverse groups (e.g. women, youth, 
Indigenous peoples, etc.)? If so, please provide that information.  
 WT/TPR/M/414/Add.1  
 
- 34 - 
 
  ANSWER : 
According to the basic statistics of SMEs surveyed as of 2018, there are 2.66 million Women 
enterprises, accounting for 40% of the total SMEs, and the number of disabled enterprises is 95,000, 
accounting for 1.4%.  
 
Question  4: Does Korea include provisions in its trade agreements that support SMEs in cross -border 
trade (e.g. cooperation, investme nt, etc.)? If so, please provide an overview of these provisions.  
 
ANSWER : 
RCEP, which was recently signed by the Government, has a chapter on SMEs. The chapter provides 
articles on sharing information and promoting cooperation between the Parties to enhance the ability 
of SMEs to enjoy the benefits of RCEP.  
 
Question  5: What othe r types of barriers do Korean SMEs face when participating in international 
trade?  
 
ANSWER : 
Korean SMEs, like SMEs in other countries, face the barriers to participating in international trade 
as they lack information and experience for overseas market, an d difficulties in manpower and 
financing.  
 
Question  6: Do women and Indigenous peoples face unique barriers to participating in international 
trade?  
 
ANSWER : 
In South Korea, women's enterprises, disabled enterprises, and local SMEs are regarded as policy 
targets that should be taken care of by government policy. Similar to other SMEs in general, they 
feel the lack of information and experience in international trade as the biggest challenge.  
 
Question  7: Does Korea conduct impact assessments for the ir FTAs and if so, what process or 
framework does Korea use?  
 
ANSWER : 
When the Parties agree on the text of the free trade agreement, the Government shall conduct an 
impact assessment of the free trade agreement, including the impact on national finances, domestic 
economy, industries, and employment. The Government may request the heads of relevant central 
administrative agencies or other relevant research institutes, including government -funded research 
institutes, to conduct an impact assessment.  
 
Page 23, Paragraph 1.11  
It is noted that the July 2020 Korean New Deal strategy is to develop new growth drivers in the 
post-pandemic world and increase inclusiveness.  
 
Question  8: Can Korea provide details on the Korean New Deal and how the government is looking 
to increase inclusiveness in a post -pandemic world?  
 
ANSWER : 
The Korean New Deal consists of three pillars of the Digital New Deal, the Green New Deal and a 
strengthened safety net, and it was announced in the midst of overcoming the pandemic in July  2020 
as a post -Covid -19 national development strategy.  
The Digital New Deal aims to promote digital transition across economies including expansion of and 
convergence between 5G and AI technologies; the  Green New Deal seeks a transition to wards a 
low-carbon, green economy; and a strengthened safety net aims to increase inclusiveness by 
bolstering social safety net and establishing a future -oriented vocational training system to alleviate 
a widening wealth gap and unemployment.  
 
Question  9: Will the intention to increase inclusiveness apply to Korea's trade policy priorities? If so, 
can Korea provide additional details on what this might look like?  
 
ANSWER : 
The inclusiveness of trade can be interpreted in several ways.  WT/TPR/M/414/Add.1  
 
- 35 - 
 
  In the case  of Korea, trade inclusivity is being promoted in the direction of creating a trade 
environment in which not only large -scale companies, but also small and medium -sized enterprises 
(SMEs) and individuals with the will or ability to trade can participate.  
 We provide overseas market information and marketing support so that SMEs can enter overseas 
markets smoothly, and we are promoting the establishment of an online infrastructure where anyone 
can easily participate in trade.  
 
2 TRADE AND INVESTMENT REGIMES  
Page 36, paragraph 2.1  
It is noted that, in 2017, the Small and Medium Business Administration was reorganized and 
expanded into the Ministry of SMEs and Startups (MSS ). Korea continued its efforts to improve 
transparency in public administration. Under the Five -year Plan for the Administration of State 
Affairs, launched in 2017, job creation is considered as the top economic policy priority. In 2019, a 
vision for an in novative and inclusive nation was announced. Regulatory reforms were conducted to 
reduce trade and investment barriers.  
 
Question  10: Can Korea provide additional details on the mandate of the Ministry of SMEs and 
Startups, including what types of program s and services the Ministry is providing SMEs and Startups 
currently?  
 
ANSWER : 
The Ministry of SMEs and Startups(MSS) is a government organization whose objective is to 
strengthen competitiveness and support innovation of Small and Medium -sized Enterprises  (SMEs) 
and Micro Enterprises (MEs). MSS's mission is to develop and implement government policies over 
the following three areas.  
 
◦ Promoting Business Growth  
We recognize that growth of Enterprises is directly related to national economy's growth. Thus, MSS 
implements various policies aimed at promoting the growth of Enterprises at all stages of 
development - from start -ups to SMEs, from SMEs to global enterprises or Hidden Champions. 
Nuturing/ fostering  Start ups  and Venture Business, Supporting the growth of SMEs through Tech 
Innovation and Market development, developing Human Resource, Protecting and Strengthening 
regilience of Small Businesses and Traditional Market, Promoting Inclusive Growth and Local 
Busines s, Supporting the export and internationalization of SMEs, Removing Barriers and regulations, 
Improving Business Environment of SMEs  
 
◦ Fostering Business Start -ups 
Technology and knowledge -based start -ups can bring innovation and energy to the entire busi ness 
ecosystem. For this purpose, MSS strives to foster new ideas to turn into new businesses.  
 
Question  11: Does the Five -year Plan for the Administration of State Affairs give consideration to 
SMEs?  
If so, can Korea provide additional information on some of the achievements to date under the Plan 
in regards to SMEs?  
Does the Plan give consideration to women and Indigenous peoples?  
 
ANSWER : 
The Moon Jae -in government has established and is implementing a five -year plan for national tasks, 
and describe national strategy of "Startups and innovative growth led by SMEs and Startups" under 
the national goal of a "Economy that lives prosperous together".  
 
The five national tasks related to SMEs and Startups are as follows: ① Win-win cooperation with 
large and small companies. that develop together, ② Strengthening the capabilities of small business 
and the self -employed, ③ Creating a start -up nation that supports innovation, ④ Establishing a 
strong growth environment for SMEs, and ⑤ Resolving the manpower shortage of SMEs by narrowing 
the wa ge gap between large and small companies.  
 
Since its elevation to ministeria l level, the Ministry of SMEs and Startups has been promoting the 
expansion of growth engines for SMEs and Startups and stabilization of management for SMEs based 
on "innovation and inclusiveness" as the main direction of economic policy.  
 WT/TPR/M/414/Add.1  
 
- 36 - 
 
  Page 47, paragr aph 2.68 -2.76?  
It is noted that in 2020, Korea tightened its FDI review mechanism for foreign investment where 
there is high possibility of leakage of core national technologies  
 
Question  12: Could Korea explain the rational that prompted this tightening, and explain what the 
perceived results of this policy change have been?  
 
ANSWER : 
Previously, policy measures to prevent the leakage of national core technologies were rather 
incomplete, thus there was a need for the complementation/elaboration of related policy measures 
to decrease uncertainties/risks for domestic and foreign enterprises and enhance national securities 
for core technologies.  
As a result, the amendments of the Act on Prevention of Divulgence and Protection of Industrial 
Technolog y and Foreign Investment Promotion Act, thereby  allowing the competent authorities to 
review the investment if needed.  
As a result, there are preventive and ex post policy effects on the protection of leakage  of core 
national technologies.  
 
Page 47, paragr aph 2.7.1  
It is noted that Korea's institutional framework for FDI promotion includes a Foreign Investment 
Committee, which is in charge of policy coordination.  
 
Question  13: What bodies have representation on the Foreign Investment Committee?  
 
ANSWER : 
The Minister of Trade, Industry and Energy shall be the Chairperson of the Foreign Investment 
Committee, and the following persons shall be its members:   
1. The Vice Minister of Strategy and Finance, the Vice Minister of Education, the Vice Ministe r of 
Ministry of Science and ICT, the Vice Minister of Foreign Affairs, the Vice Minister of the Interior and 
Safety, the Vice Minister of Culture, Sport and Tourism, the Vice Minister of Agriculture, Food and 
Rural Affairs, the Vice Minister of Environmen t, the Vice Minister of Employment and Labor, the Vice 
Minister of Land, Infrastructure and Transport, the Vice Minister of Oceans and Fisheries, and the 
Vice Chairperson of the Financial Services Commission;  
2. The vice president of NIS  
3. The Vice Minist ers, vice chairpersons, or deputy administrators of central administrative agencies 
related to the agendas submitted to the Foreign Investment Committee, the Vice Mayor of Seoul 
Special Metropolitan City, Mayors/Do Governors (excluding the Seoul Special Me tropolitan City 
Mayor) and the president of the Korea Trade -Investment Promotion Agency.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
Page 54, Paragraph 3.1  
The Secretariat Report notes that Korea has bound rates on 90.7% of its tariff lines and has 
continued to use this gap between the average bound and applied MFN tariff rates to apply higher 
duties (e.g. adjustment duties) termed "flexible tariffs".  
 
Quest ion 14: Could Korea provide details on the criteria and mechanisms used to determine when 
and under what circumstances the applied tariffs are to be lowered/raised within the bound limits?  
 
ANSWER : 
Korea has the criteria and mechanism in the Customs Act wh ich is priority order of tariff rate 
application. Tariff rates are applied in an orderly basis, which may increase or decrease the applied 
tariffs when laws and regulations are amended.  
The first priority such as anti -dumping tariffs, countervailing tariff s, retaliatory tariffs, and 
emergency tariffs is applied preferentially with any condition regardless of more or less of tariff 
rates. In the second order, international cooperation tariffs such as WTO concession tariffs or FTA 
tariffs are considered.  
In the third order, adjustment tariff, autonomous tariff and seasonal tariff are considered and in the 
fourth order, General Preferential tariff for LDCs are considered, and finally, basic tariff rate is 
considered to be applied.  
In particular, international cooperation tariffs are applied only if they are lower than those applied 
later.  WT/TPR/M/414/Add.1  
 
- 37 - 
 
  For example, if the adjustment tariff is higher than the international cooperation tariff, the 
adjustment tariff is not applied and international cooperation tariff such as th e WTO concession tariff 
is applied.  
In most cases, regulations and provisions related to tariff rate are revised in every January, but 
autonomous tariffs are revised throughout the year at the request of other authorities or 
stakeholders.  
 
Page 55, paragr aph 3.7  
 
The report notes that, from March 2018, the KCS has operated a YES FTA Mobile Consulting Service 
through its FTA Portal (https://www.customs.go.kr/engportal/main.do), which in 2017 helped 
1,092  businesses, to support SMEs that cannot afford to vis it customs offices for consultation in 
utilizing FTAs; this service supported 385,833 businesses in 2020, and their exports to FTA partner 
countries decreased by 3.9% year -on-year.  
 
Question  15: Does the KCS target SMEs owned and/or led by women, Indigenous peoples, youth or 
other underrepresented groups for this service?  
 
ANSWER : 
KCS provides various support for every SME to freely utilize Traders Support Center  and FTA portal. 
KCS has recently begun online consultation via online platforms as well.  
 
Page 73, paragraph 3.65  
 
The report mentions that Korea revised its Enforcement Decree of the Customs Act to strengthen 
the procedural interest protection of partie s and to amend the industry injury investigation 
procedures. This revision came into force on January 1, 2021.  
 
Question  16: Could Korea please indicate when the revised Enforcement Decree of the Customs Act 
will be notified to the WTO committee on anti -dumping practices and the WTO committee on 
subsidies and countervailing measures?  
 
ANSWER : 
We will notify it within this year, including other revisions being prepared currently.  
 
Page 74, paragraph 3.67:  
 
The report notes that the Korea Trade Commission (KTC) is responsible for investigating whether 
imports are dumped and subsidized and whether they cause injury, whereas the decision to impose 
duties is taken by the MOEF.  
 
Question  17 : Can you please elaborate on the respective powers of the K TC and MOEF as regards 
to recommendations on whether or not to apply duties and on the amount of duties? For example, 
if the KTC makes an affirmative determination, can MOEF decide not to impose duties, or can they 
increase or decrease the amount of duties ? 
 
ANSWER : 
MOEF has the power of determination of imposing AD duties. When MOEF considers whether or not 
to apply duties and the amount of duties, we respect the opinions of the KTC as much as possible. 
However, if necessary, MOEF also reflects various fac tors, such as domestic market structure, price 
stability, etc.  
 
Page 79, paragraph 3.86  
 
Korean exporters continue to benefit from promotional activities of the state -owned Korea Trade 
and Investment Promotion Agency (KOTRA). With 127 (126 in 2016) Korea B usiness Centers (KBCs) 
in 84 countries, the agency operates a "business matchmaking" service introducing foreign importers 
to Korean businesses.115 KOTRA also organizes or assists with trade missions and exhibitions 
domestically and overseas, providing SME s with export -related information and consulting services.  
 WT/TPR/M/414/Add.1  
 
- 38 - 
 
  Question  18: Can Korea provide further details on the business missions and exhibitions held 
domestically and overseas? Are any of these activities specific to SMEs owned and/or led by women, 
Indigenous peoples, youth or other underrepresented groups?  
 
ANSWER : 
Korea organizes trade missions in collaboration with local governments and/or authorities to help 
SMEs enter overseas markets. About 150 -200 trade missions are held per year and a  mission 
consists of 10~15 SMEs in average. Korea also creates the opportunity for foreign companies to 
meet with industry -leading Korean companies at international exhibitions or major exhibitions in 
Korea. For example, the Korea Pavilion is organized at BIE-International Expositions like Dubai Expo 
2020 to introduce Korea technology. Trade missions and exhibitions are open to all Korean SMEs, 
not being specific to a certain underrepresented group.  
 
Question  19: Does Korea provide promotional activities to  specific sectors? If so, can Korea provide 
some examples?  
 
ANSWER : 
Korea provides various overseas promotional opportunities  to SMEs  such as exhibitions for help 
SMEs establishing business partnership with global automobile manufacturers (Korea Autoparts 
Plaza), promoting activities for Korean culture and business with Korean celebrities(Korea Brand & 
Entertainment Expo),business platfo rm in the consumer goods industry(Consumer Goods Showcase 
Korea), etc.  
 
Page 83, paragraph 3.96  
It is noted that the liquor tax on alcoholic beverages changed in 2021. However the taxation rate 
for takju (KRW 41,700 / kl (~CAD$45)), a traditional Korean al coholic beverage, remains significant 
less by volume than other alcoholic beverages (KRW 830,300 / kl (~CAD$896)).  
 
Question  20: Can Korea provide a rationale as to why takju is taxed at a significantly lower rate per 
volume, than other alcoholic beverage s? 
 
ANSWER : 
In the case of takju and beer, the liquor tax system was changed from the ad valorem tax to the 
specific tax last year, but  the level of taxation rate was similar to that of previous years.  
 
Page 87, paragraph 3.114  
State -owned financial institutions retain a major role in assisting Korea's industrial development. 
State intervention dominates the large venture capital market, which benefits mainly SMEs.  
 
Question  21: Do any of Korea's lending or financing programs ta rget SMEs or micro -enterprises 
owned and/or led by women, Indigenous peoples, youth or other underrepresented groups?  
 
ANSWER : 
MSS would like to inform you that MSS do not operate any programs that are many  focused on the 
companies owned by women, indigeno us peoples, youth and other minority group.  
 
Page  88, paragraph  3.118  
 
The report notes that the Korea Development Bank (KDB) provides industrial capital and loans 
targeted to SMEs, micro enterprises, and "industries of the future."  
 
Question 22: Could Korea elaborate on how the KDB identifies "industries of the future" and what 
the target sectors are currently?  
 
ANSWER : 
Funding Instruments for Supporting Industries  of the Future  
Names of Funding Instruments  Types of Funding 
Provided  Target Compa nies and Use of Proceeds  
Innovative Growth industry Support 
Program  Loan 
Investment  • AllCompanies  
• For financing capex, R&D, and 
workingCapital  WT/TPR/M/414/Add.1  
 
- 39 - 
 
  Names of Funding Instruments  Types of Funding 
Provided  Target Compa nies and Use of Proceeds  
Structure Acceleration Support 
Program Industrial  Loan 
Investment  • SMEs and MEs  
• For financing capex, R&D, and 
workingCapital  
Start-up Support Program  Loan 
Investment  • Start-upsand SMEs  
• For financing capex, R&D, and 
workingCapital  
 
• The KDB  classifies industries of the future into nine macro themes such as advanced 
manufacturing and automation, renewable energy, and ICT, with a further breakdown of the 
themes into 300 specific categories. In 2020, the volume of funding provided to companies 
eligible under the nine thematic categories totalled KRW21.6trillion(Loan: KRW  21.1trillion, 
Fixed Income investment:  KRW 0.3trillion, Stock investment:  KRW 0.2trillion).  
 
Nine Thematic Categories of Industries  of the Future  
Themes  #ofitems  Examples of ite ms 
State -of-the-art manufacturing and automation  31 Robot,SmartCar,3Dprinting  
Chemicals and new materials  37 Carbonfiber  
Energy  40 Clean/Renewableenergy,  
Energystorage  
Environment and sustainability  30 SmartFarm  
Health and diagnostics  40 Biosimilar  
Information and communications  43 5gnetwork,BigData  
Electrical and electronic  29 SystemSemiconductor  
Sensor and measurement  23 ADAS,Lidar  
Knowledge -based service  27 Game,MediaContents  
 
Page 94, paragraph 3.134  
It is noted that key policy goals in the inter -ministerial fourth National Standards Plan (2016 -20) 
included the development of standards for new growth engine activities for improving people's daily 
life and the eradication of redundant certification systems.  
 
Question  23: Could the Republic of Korea elaborate on how these redundant certification systems 
were identified? Which certification systems were identified as redundant? What steps were taken, 
or are planned, to eradicate these redundant certification systems?  
 
ANSWER : 
"Technical Regulatory Impact Assessment" is conducted on technical regulations that are newly 
established or strengthened by all Ministries and Government agencies.  
This prevents the establishment of a r redundant  certification system by evaluating whether  it 
overlaps with other existing technical regulation.  
 
It is noted that the Korean Agency for Technology and Standards (KATS) implemented 
standardization strategies required for competitiveness in emerging industries and adaption to 
technological changes of the Fourth Industrial Revolution, and also undertook efforts for Korean 
Industrial Standards (KS) to be reflected in the fields of the Fourth Industrial Revolution.  
 
Question  24: Can the Republic of Korea elaborate on the types of standardization strategies 
implemented and their results? What efforts were undertaken to reflect KS in the fields of the Fourth 
Industrial Revolution and what were the results of these efforts?  
 
ANSWER : 
KATS has undertaken efforts to connect the R&D(Resea rch and Development) achievements in the 
fields of the Fourth Industrial Revolution to the standards.  
Also, KATS contributes to promoting the international standardization in the fields of the Fourth 
Industrial Revolution by proposing the results as intern ational standards of ISO, IEC, etc.  
 WT/TPR/M/414/Add.1  
 
- 40 - 
 
  Page 101 -106 Paragraph 3.163 -3.179  
The report notes the main legislation covering SPS measures, including legislation relating to 
sanitary and phytosanitary measures and the main sanitary and phytosanitary requirements and 
procedures.  
 
Question  25: Does the Republic of Korea have any planned upcoming sanitary and phytosanitary 
regulatory initiatives not referenced in the TPR reports that will impact Canadian exports of 
agriculture, forestry, or aquatic products?  
 
ANSWER : 
In accordance with interna tional standards, Korea is planning to require quarantine tests to imported 
amphibians. Details have been circulated to Members 23rd September.(G/SPS/N/KOR/737)  
In addition, K orea does not consider introducing additional measures other than regulations inc luded 
in the Report. Provided that, if a new pest or disease is found or a new infectious animal disease 
spreads in a new area, a new measure would be introduced accordingly.  
 
Page 120, paragraph 3.218  
Footnote 294 indicates the following:  
Reportedly, the Act [on Facilitation of Purchase of Small and Medium Enterprise -manufactured 
Products and Support for Development of Their Markets] categorizes companies by size, with 
multinationals frequently labelled as "large" (regardless of their actua l size) simply by 
virtue of them being foreign -based or multinational , while local companies get categorized as 
"small" or "medium." As such, "large" foreign companies are only able to bid on (the rare) projects 
larger than USD 220,000, while most local co mpanies can bid on the majority of projects available. 
[emphasis added].  
 
Question  26: Can Korea please clarify the company classification criteria it uses for determining 
small, medium, and large enterprises – particularly vis -à-vis foreign -based or multi national 
enterprises – for the purposes of the Act on Facilitation of Purchase of Small and Medium Enterprise -
manufactured Products and Support for Development of Their Markets?  
 
ANSWER : 
The competition between large and small companies is uneven playing f ield when it comes to brand 
value, funds, manpower and all other resources. So the Korean government, like other countries 
has spared no effort to protect and foster SMEs, ensuring a fair competition. Even if a branch or 
subsidiary of a multinational corpo ration established in Korea is small at the individual entity level, 
it can be superior to the competition through the brand value or financial support of the multinational 
corporation.  
 
This is the reason why the independence criteria is applied when MSS check that the company meet 
SME size standard, and accordingly, when reviewing whether the subject companies meet the upper 
limit of the size standard, which is total assets of 500 billion won (USD 420 million), it is applied by 
adding up the assets of  the parent company of a multinational corporation and its Korean subsidiaries.  
 
Page 122, paragraph 3.224  
It is noted that the PPS handles procurement from SMEs and socially disadvantaged sectors, such 
as regional companies, women -owned businesses, busine sses owned by persons with disabilities, 
and social enterprises.  
 
Question  27: How does the PPS promote procurement opportunities for SMEs and socially 
disadvantaged groups?  
 
ANSWER : 
In order to protect SMEs and the socially disadvantaged, the government i s applying a mandatory 
public purchase ratio of 5% for women companies and 1% for products from companies with 
disabilities for the central government, local governments, and public institutions.  
 
Public procurement policies and measures to promote procurement opportunities for SMEs and 
socially disadvantaged groups are  stated in the paragraphs 3.234 and 3.235.  
 
In addition, the Public Procurement Service has established and operated malls dedicated to SMEs 
and socially disadvantaged groups (women -owned businesses, social enterprises and businesses  WT/TPR/M/414/Add.1  
 
- 41 - 
 
  owned by persons with disability)at the KONEPS Online Shopping Mal l so that public user entities 
can readily purchase their products at the malls.  
 
Page 125, paragraph 3.234  
It is noted that the government of the Republic of Korea has elaborated a national IP masterplan for 
2017-2021, which sets the policy direction and strategic goals in order to provide advancement of 
the IP system and economic ripple effects.  
 
Question  28: In addition to the total amount of IP -backed financing between 2016 -2020 noted in 
the same paragraph, could the Republic of Korea provide additional  details on other major outcomes 
of the national IP masterplan 2017 -2021?  
 
ANSWER : 
The Korean government is expanding its policy on copyright and cultural content investment. In 
particular, since 2020, new venture investment funds have  been established to invest intensively in 
the early stage of production and in marginalized genres. Korea's exports of cultural contents 
increased by 69.8% from USD  6 billion in 2016 t o USD  10.19 billion in 2019, and copyright exports 
also increased by 93% from USD  5 billion in 2016 to USD  9.65 billion in 2019. Also, a MOU was 
signed among the Ministry of Culture, Sports and Tourism, Interpol and National Police Agency 
(30 Jan 2021) to respond to online copyright infringements, and cooperative projects is being carried 
forward to counter online copyright infringement.  
 
Patent trend analysis results were provided during the planning stage of R&D projects to create 
superior patents. Compar ed to those without the patent trend analysis, the R&D project with this 
information achieved a 1.48 times higher patent transfer rate and 3.77 times higher royalties per 
technology transfer contract than those that did not.  
A Special Judicial Police on tr ademarks was established and customs and border measures were 
strengthened which led to an increase in the detection of intellectual property infringement goods  
Also, the intellectual property curriculum in universities was strengthened. In 2020, a total o f 
14 universities were designated as leading IP education universities and 27 high schools were 
designated as leading schools which would include intellectual property rights as a core subject.  
 
Page 137, Paragraph 3.289  
The report indicates that the "aver age time for handling cases rose from 204 to 237 days for 
revocations and from 137 to 286 days for civil appeals, whereas the cases in which at least one 
party was a foreigner dropped from 301 (2018) to 190 (2019)" [emphasis added].  
 
Question  29: Can Korea provide any information on why the average time for handling some cases 
rose, while the average time for a case involving at least one foreigner dropped considerably by 
comparison?  
 
ANSWER : 
Paragraph 3.289 states that the average time for handling ca ses for revocations and civil appeals 
rose and that the "number of cases" in which at least one party was a foreigner dropped. The 
question may have misinterpreted the paragraph as to the "average time for handling cases" 
dropped. Thus the question needs t o be revised or clarified.  
 
Page 182, Paragraphs 4.240 – 4.242  
Regarding international maritime transportation services, the report indicates that "sea water" 
transport is open to foreign investment.  
 
Question  30: Is the only international maritime transport services that foreign registered vessels 
may engage in limited to goods and passenger transport between the Democratic People's Republic 
of Korea and the Republic of Korea, as minority joint -venture partners w ith a firm in the Republic of 
Korea?  
 
ANSWER : 
Yes.  
 
Question  31: What is the maximum level of foreign ownership allowed in international maritime 
transport services company operating vessels registered in the Republic of Korea?  WT/TPR/M/414/Add.1  
 
- 42 - 
 
  Korea's regulatory framework seems to contemplate foreign participation in domestic marine 
transport (i.e. cabotage).  
 
ANSWER : 
Regarding cabotage between North -South Korea, foreign ownership is allowed up to less than 50 %.  
 
Question  32: What are the conditions that the MOF considers for allowing foreign vessels participate 
in domestic marine transport (cabotage) of goods or people?  
 
ANSWER : 
According to Article 6 of the Seafarers Act, when there are other legal grounds, when it is to b e 
distressed from marine accidents or it is to avoid unintended capture, and when there is permission 
from the minister of MOF, it is allowed.  
 
Page 182, Paragraph 4.244  
The report notes that the various tax incentives apply to the marine transport sector,  including a 
voluntary tonnage tax system.  
 
Question  33: Are tax incentives available for Republic of Korea shippers that use Republic of 
Korea -registered vessels for transporting their goods to international destinations?  
 
ANSWER : 
Korean shipping companies can decide between TTS and normal corporation tax systems. The same 
goes to cases where they transport their goods overseas.  
 
Page 182, Paragraphs 4.246 - 4.247  
The report notes that ports are state -owned, but that certain Port Authorities, inclu ding Busan and 
Incheon may some have foreign ownership.  
 
Question  34: How many port authorities are there and what level of foreign ownership is allowed, 
and under what conditions? Are the terminals at the state -owned ports privately owned and 
operated, or are they owned and operated by the state?  
 
ANSWER : 
There are four Port Authorities; Busan, Incheon, Yeosu, Ulsan. Port Authorities are funded by 
central/provincial governments, public organizations , and government -run banks. So far, there is no 
foreign investment (September 2021). Terminals could be privat ely owned and operated according 
to related laws, investment method, the terms and conditions of the contract etc.  
 
Page 183, Paragraphs 4.253 - 4.255  
The report makes reference to airline operators, but not air transport operators such as specialty air 
services.  
 
Question  35: Are foreign operators allowed to engage in the cross -border supply of specialty air 
services (e.g. crop spraying, aerial mapping/surveying)?  
 
ANSWER : 
In the case of distribution of crops mentioned as a special aviation service supply, it is judged that 
it falls within the scope of the "aircraft use business" under the Aviation Business Act.  
Anyone who intends to run an aircraft use business must register for the aircraft use business 
pursuant to Article 30 of the Aviatio n Business Act, and in this case, foreigners will be restricted 
from registering for the aircraft use business under Article 30 (3) of the Aviation Business Act.  
 
Page 186, Paragraphs 4.266  Regarding transport of cargo by truck the report states that such 
transport is regulated by the Trucking Transport Business Act, and that permission [to operate 
trucking services?] does not vary depending on the nationality of the operator.  
 
Question  36: Is foreign ownership of truck cargo companies allowed? If so, under  what conditions?  
 
ANSWER : 
If you intend to run a business of transporting cargo for a fee using a freight car in Korea, you must 
obtain permission for the transportation business pursuant to Article 3 of the "Freight Vehicle WT/TPR/M/414/Add.1  
 
- 43 - 
 
  Transportation Business Act." There is no separate restri ction on the nationality of the carrier. 
However, permission may be restricted if it falls under the grounds for disqualification under Article 
4 of the same Act.  
 
4 TRADE POLICIES BY SECTOR  
Page 153, Table 4.7:  
It is mentioned that Korea maintains support  for management of overseas fisheries, particularly that 
"grants are provided to support distant -water fishermen, to ensure stable supply and demand of 
fisheries products."  
 
Question  37: Can Korea please explain how this support aligns with the future deve lopment plan of 
the Ministry of Oceans and Fisheries (MOF) to ensure sustainable fisheries, mentioned on page 151 
(para. 167)?  
 
ANSWER : 
The business mentioned is not included inside the future development plan.  
 
Page 155, paragraph 4.81; page 158, Paragraph 4.100  
The report notes that the 3rd Energy Master Plan supports an energy transition that includes 
considerations to strengthen the global competitiveness of the energy industry including by fostering 
renewables like hydrogen. The report also not es South Korea is the third largest importer of LNG 
globally.  
 
Question  38: What potential role does South Korea see for its LNG imports, paired with carbon 
sequestration, in developing domestic hydrogen capacity?  
 
ANSWER : 
In order to realize a hydrogen economy, not only green hydrogen but also blue hydrogen are 
important. In this regard, Korea plans to produce a large amount of blue hydrogen by establishing 
hydrogen extraction and CCUS facilities around existing LNG receivi ng terminals or pipelines.  
 
Page 157, paragraph 4.92  
According to the Secretariat report, Korea continued the diversification of its crude oil supply, and 
surcharges on imported crude oil are partly returned if they are from non -Middle East countries.  
 
Question  39: As South Korea continues to diversify its oil imports, will there be greater consideration 
for ESG standards and performance? Will South Korea demonstrate preference for oil producers with 
reliable ESG performance?  
 
ANSWER : 
Domestic refining com panies, which are all private entities, are working on developing ESG 
performances on their own.  
 
Page 157, paragraph 4.94; page 17, table 3.4; and, page 25, paragraph 1.15  
The Secretariat report states that Korea National Oil Corp (KNOC) is an SOE  that manages domestic 
and overseas oil exploration and development, export, import stockpiling, transportation, lease and 
sale of crude oil and its products. The report also notes that, despite Korea's commitment to 
privatization, there has been no progre ss in this area since the previous review (2016).  
 
Question  40: When does South Korea intend to resume its privatization process? Does Korea expect 
a change in KNOC's activities abroad in this context?  
 
ANSWER : 
The Korean government continues to expand the  private sector opening to the public sector and 
reduce the competing areas between public sector and private sector. Through this, public 
institutions improve management efficiency by concentrating on the key functions of the public 
sector and give privat e operators an opportunity to participate in public sector projects.  
 
For example, in the case of Korea Gas Corporation,  the direct import ratio of private LNG gas 
increased from 5.7% in 2015 to 22.4% in 2020 through efforts to promote direct import of private 
LNG gas. Also, in the case of Korea Electric Power Corporation (KEPCO), it is expanding the opening 
to private businesses by suspending the optical communication network construction project in 2017, WT/TPR/M/414/Add.1  
 
- 44 - 
 
  which is concerned about overlap with the privat e sector, and allowing private business operators 
for small -scale power brokerage business in 2021.  
 
If additional privatization is necessary, the government can comprehensively review the quality of 
public services, public interests, and competition with the private sector and so on. The government 
can review this issue after collecting opinions from various stakeholders, including academic experts, 
and discussions with the National Assembly.  
 
Page 158, Paragraph 4.103  
 
Question 41. The re port notes that on January 6, 2020, MOTIE approved a new pricing scheme for 
wholesale price for natural gas, and that KOGAS may offer individual tariffs to power generators.  
Question: Under the new pricing scheme, what mechanisms does KOGAS have to keep i ts prices for 
local power utilities lower than those of overseas suppliers in the context of fluctuating LNG prices 
in the global market?   
 
[ANSWER]  
Individualized Gas Tariff system that KOGAS  adopted is not to supply natural gas to power 
generation operators at lower prices than the price levels of its natural gas import contracts.  
The newly introduced tariff system is intended to secure KOGAS' gas price competitiveness in the 
domestic market  by matching each power plant operator with KOGAS' LNG import contracts with 
optimal terms and conditions for them respectively. With a lot of LNG procurement experience and 
knowhow, KOGAS can offer better and reasonably -priced deals for power plant operat ors through 
the system, instead of the inexperienced or novice power operators(including small and mid -sized 
power generators) buying natural gas directly from overseas LNG sellers  
 
Page 160, paragraph 4.123   
The Secretariat report states that, pursuant to  the Act on Development, Use and Diffusion of New 
and Renewable Energy (Renewable Energy Act), MOTIE formulates basic national plans for the 
promotion of new and renewable energy every five years. MOTIE also oversees the regulations for 
renewable electrici ty generation, including the allocation of permits. The Korean Energy Agency 
(KEA) and the Korea New and Renewable Energy Center under it promote new and renewable energy 
by issuing renewable energy certificates (RECs) that serve as certified proof of rene wable energy 
power generation.  
 
Question  42: Can Korea provide further information as to how biomass energy from wood pellets 
will be regarded within the renewable energy certificate system going forward?  
 
[ANSWER]  
Wood pellets are subject to REC weights for electricity generated from biomass  
 
Pages 180 -181, Paragraph 4.233 -4.236:  
The report describes Korea's five -year plan for revitalizing the shipping industry and becoming a 
global powerhouse in shipping.  
 
Question  43: As part of the five -year plan, are there financial incentives that directly support the 
production and/or sale o f ships or containers? If so, can you please provide information as to the 
nature of these support measures and their eligibility criteria?  
 
[ANSWER]  
The Korean Ocean Business Corporation gives financial supports to shipping companies to promote 
transfer to eco -friendly, efficient vessels in accordance to the 5 year plan. KOBC also provides 
financial services for container box purchases. Financial progr ams are based on market level 
interests.  
 
Government Report – Korea  
 
3 ECONOMIC POLICY  
Page 7, paragraph 3.19 and Secretariat Report: Page 160 – footnote 42  
The report notes that, in December 2020, Korea established plans for the power industry and new 
and renewable energy sectors. For the power industry, the Korean Government adopted the 
"9th Master Plan for Power Supply and Demand," which includes forecasts for power supply and WT/TPR/M/414/Add.1  
 
- 45 - 
 
  demand for 2020 -2034 alongside plans for demand management, power facilities, improvement of 
the power market system, and reduction of greenhouse gas emissions. According to the Secretariat 
report (S414), Korea removed waste and wood pellets from the definition of renewable energy since 
October 2019 (cf. footnote 42 p.16 0). 
 
Question  44: Considering that biomass held 6.5% of renewable energy -generation capacity in 2019, 
what role will forest biomass play in the 9th Master Plan for Power Supply and Demand, now that 
waste and wood pellets have been removed from the definiti on of renewable energy?   
 
[ANSWER]  
Wood pellets were not excluded from the definition of renewable energy. And in the view of forest 
protective policy, government  plans to expand the use of unused forest biomass.  
 
Page 6, paragraph 3.5:  
The report notes that the Korean government is pushing for a "Green New Deal" with the goal of 
achieving carbon neutrality by 2050. Key elements of the initiative include: laying the groundwork 
for carbon neutrality, realizing a green transition in urban, spatial, life infrastructure, promoting low -
carbon energy and a distributed energy system, and building an ecosystem for innovation of the 
green industry.  
 
Question  45: What specific trade policy measures would fall under the ''groundwork for carbon 
neutra lity''?  
 
[ANSWER]  
A detailed carbon -neutral action plan by 2050 has not been decided, therefore the specific trade 
policy measures have not been established as well. However, the policy direction for so -called green 
trade, which requires a balance between  the value of the environment and the growth of trade scale, 
is expected to increase. In this respect, the Government would have a role to play in enhancing the 
capability of exporting SMEs and burgeoning SMEs to comply with procedures to achieve the carbo n-
neutral goal and use it as an new opportunity to expand their entry into the greener global market.  
 
Question  46: Could Korea share tangible targets that would be included in its Green New Deal?  
 
ANSWER : 
The practical goal of Korea's Green New Deal is to become a leading green country that fulfills its 
responsibility for the international community by achieving a net -zero and accelerating its transition 
to a low -carbon, green economy in harmony with people, environment and growth. The sector -
specific go als of the Green New Deal are as follows:  
"Establishing the basis of carbon neutrality" is to provide a firm basis to implement carbon neutrality 
policy by 2050 in a continued, efficient manner."  
"Green transition to urban, space, living and infrastructure " is to create a green -friendly daily lives 
of people so as to realize a future society where humans and nature coexist."  
"Expanding a low -carbon, decentralized energy" is to prepare for a paradigm shift to future energy 
that spreads sustainable, renewable  energy throughout the society."  
"Establishing the innovation ecosystem of green industry" is to identify green industries that can 
respond to future climate change and environmental crisis, and create the basis of green innovation 
such as R&D."  
 
Question  47: Could Korea elaborate on its objective of building an ecosystem for innovation of the 
green industry? What concrete steps would be taken towards this objective?  
 
[ANSWER]  
Strategies to foster the green industry ecosystem are currently being established , and plans to 
materialize them through the "Visions and Strategies for Industrial Transformation to Achieve Carbon 
Neutrality by 2050" at the end of the year . 
 
Page 6, paragraph 3.7  
In the agricultural sector, Korea newly adopted the "New Direct Payment Program", which also 
contributes to sustainability and multifunctionality of agriculture such as the conservation of the 
environment and rural landscape.  
 WT/TPR/M/414/Add.1  
 
- 46 - 
 
  Question  48: Are farmers receiving payments through the "New Direct Payment Program" required  
to take measures related to forest conservation and sustainability?  
 
ANSWER : 
The New Direct Payment Program is in principle based on farmlands and does not impose 
responsibilities directly related to forest conservation.  
For environmental protection and sustainability, the Program imposes responsibilities on farmers 
including the observation of maximum residual limits, safe use of pesticides, maintenance of 
functions and shapes of farmlands and observation of standards in the usage of chemical fertilizers . 
 
4 TRADE AND INVESTMENT POLICY  
Page 9, paragraph 4.9:  
The report notes that Korea is making its utmost effort to provide improved access to trade related 
information for MSMEs and assistance for their digitalization under the declarations.  
 
Question  49: With regard to SMEs and in particular, women -owned busi nesses, what is Korea doing 
to provide women and women MSMEs access to trade related information and assistance for their 
digitalization?  
 
ANSWER : 
MSS has established 15  support centers  national wide in South Korea, to promote SME export and 
provide consulting services, and to guide various export support projects through an online 
integrated export support platform to support participating in international trade export and 
overseas adva ncement of Korean women enterprises.  
 
MSS support digitalization and manufacturing innovation to lay foundation for innovative growth of 
SMEs and Startups, including women's enterprises, and related support programs are as follows:  
 
① Promote the introductio n of 30,000 smart factories by 2022 to support the digital 
transformation of SMEs. In the case of Women enterprises, 3 points of preferential treatment 
are awarded when evaluating an applications.  
 
② Support for digitalization of MSMEs such as conversion  into smart stores (100,000 by 2025) 
and digital traditional markets (500 by 2025)  
 
③ Create a women -only venture investment fund to enhance competitiveness and promote 
growth of promising women enterprises.  
 
Page 11, paragraph 4.24:  
The report notes that Korea is also expected to help build trade capacity in developing countries in 
relation to the environment by announcing to provide a total of USD 300 million to the Green Climate 
Fund (GCF), which is located in Korea, and establishing a trust fund under the Glo bal Green Growth 
Institute (GGGI) to strengthen capabilities to respond to climate change and provide assistance to 
reduce greenhouse gas emissions and adapt to changes in the climate.  
 
Question  50: Could Korea provide more information on the modalities of  the new trust fund to be 
created under the GGGI?  
 
ANSWER : 
① Global Green Growth Institute (GGGI) is planning to set up and operate the Korean Green New 
Deal Fund (KGNDF ) to support development of climate change -related projects, such as for green 
energy, green transportation, green smart city, water management and hygiene and smart farming, 
in developing countries  
② This fund will be used mainly to help developing count ries build capacity against climate change 
(consulting on policy improvements, etc.) or develop climate projects (feasibility studies, consulting 
on technical assistance, etc.).  
*Korea and the GGGI are working on a guideline and an agreement on the detail s of this trust 
fund and its operations.  
 
 WT/TPR/M/414/Add.1  
 
- 47 - 
 
  CANADA  – REVISED ANSWERS  
Page 125, paragraph 3.234   
It is noted that the government of the Republic of Korea has elaborated a national IP masterplan for 
2017-2021, which sets the policy direction and strategic goals in order to provide advancement of 
the IP system and economic ripple effects.  
 
Question  28: In addition to the total amount of IP -backed financing between 2016 -2020 noted in 
the same paragraph, could the Republic of Korea provide additional  details on other major outcomes 
of the national IP masterplan 2017 -2021?  
 
[Answer]  
Patent trend analysis results were provided during the planning stage of R&D projects to create 
superior patents.  
 
A Special Judicial Police on trademarks was established a nd customs and border measures were 
strengthened which led to an increase in the detection of intellectual property infringement goods  
 
Also, the intellectual property curriculum in universities was strengthened. In 2020, a total of 14 
universities were de signated as leading IP education universities and 27 high schools were 
designated as leading schools which would include intellectual property rights as a core subject.  
 
Page 155, paragraph 4.81; page 158, Paragraph 4.100  
The report notes that the 3rd Ener gy Master Plan supports an energy transition that includes 
considerations to strengthen the global competitiveness of the energy industry including by fostering 
renewables like hydrogen. The report also notes South Korea is the third largest importer of LN G 
globally.  
 
Question  38: What potential role does South Korea see for its LNG imports, paired with carbon 
sequestration, in developing domestic hydrogen capacity?  
 
ANSWER  
In order to realize a hydrogen economy, not only green hydrogen but also blue hydrogen is 
important. In this regard, Korea plans to produce a large amount of blue hydrogen by establishing 
hydrogen extraction and CCUS facilities around existing LNG receivin g terminals or pipelines.  
 
In line with the global transition to a low -carbon economy and greenhouse gas reduction movements, 
there is an increasing demand and need for fostering renewable energy sectors such as hydrogen to 
replace fossil fuels especially in the transport, power generation, and industrial sectors. Accordingly, 
it is expected that some volume of LNG imports will be replaced with hydrogen energy. However, it 
will take a consider amount of time before achieving a full -fledged transi tion to the hydrogen 
economy, given the existing barriers such as establishing renewables infrastructure, 
transportation -related limits, and economics of hydrogen production. During the initial stages of the 
transition, Korea will produce and supply blue h ydrogen by reforming natural gas to facilitate its 
journey to the hydrogen economy. Subsequently, Korea plans to produce and utilize green hydrogen 
and other renewables as energy sources, to turn itself into an eco -friendly hydrogen economy.  
  WT/TPR/M/414/Add.1  
 
- 48 - 
 
  CHILE  
WT/TPR /S/414 - Informe de Secretaría OMC  
 
RESUMEN  
 
Párrafo 13, pág. 12  
Pregunta:  El párrafo 13 indica que "a  pesar de que no se utilizaron planes de preferencias 
en materia de precios, al parecer la contratación pública se sigue utilizando como un 
instrumento de política para promover las pymes, las empresas en situación de desventaja 
(empresas que son propiedad  de mujeres o personas con discapacidad), el desarrollo 
regional y la contratación verde."  Al respecto, Chile agradecería a Corea compartir 
información sobre qué medidas en particular existen en el sistema de contratación pública 
de Corea para promover la participación de las pymes y empresas que son propiedad de 
mujeres.  
 
1. Question: Paragraph 13 indicates that "although price preference schemes were  not used, it 
appears that public procurement is still used as a policy  instrument to promote SMEs, disadva ntaged 
companies(companies that are owned and operated of women or people with disabilities ), regional 
development and green contracting. " In this regard , Chile would appreciate Korea sharing 
information on what particular  measures exist in Korea's public procurement system to promote  the 
participation of women -owned SMEs and businesses.  
 
ANSWER : 
In order to protect SMEs and the socially disadvantaged, the government is applying a mandatory 
public purchase ratio of 5% for w omen companies and 1% for products from companies with 
disabilities, which the central government, local governments, and public institutions must comply 
with. 
 
Párrafo 1.2, págs. 18 -19 
Pregunta : La sección 1.1 del informe de la Secretaría OMC, particularm ente su párrafo 1.2, 
se refiere a la especialización en unos cuantos sectores claves y su interconexión con los 
mercados extranjeros a través de su alta participación en las cadenas globales de valor 
(séptimo a nivel mundial según la OCDE). Al respecto, Ch ile agradecería a Corea compartir 
cuál ha sido su enfoque en materia de políticas públicas, específicamente políticas 
comerciales, para hacer frente a posibles perturbaciones duraderas en las cadenas de 
valor mundiales producto de los efectos de la pandemi a (tales como: la logística global, 
las interrupciones en las cadenas de suministro, la inestabilidad en el precio de las 
materias primas y las fluctuaciones inesperadas de los mercados financieros).  
 
2. Question: Section 1.1 of the WTO Secretariat report, particularly its paragraph  1.2, refers to 
specialization in a few key sectors and their  interconnection with foreign markets through their high 
participation  in global value chains (seventh worldwide according to the OECD).  In this rega rd, Chile 
would be grateful to Korea for sharing its  approach to public policy, specifically trade policies, to face 
possible  lasting disruptions in global value chains as a result of the effects of  the pandemic (such 
as: global logistics , disruptions in supply chains,  instability in the price of raw materials and 
unexpected fluctuations in  financial markets).   
 
[ANSWER]  
International cooperation and coordination is crucial  to recover and futher strengthen  global supply 
chains. In this aspect,  Korea is expanding trade cooperation based on our manufacturing capabilities 
and advanced technologies in key industries encompassing semiconductors and batteries while 
seeking to add diversity to supply chains through Korea's FTA network and attraction o f foreign 
investments.  
 
1.2 Evolución económica reciente  
1.2.4 Políticas estructurales  
1.2.4.5 Políticas relativas al mercado laboral  
 
Párrafo 1.20, pág. 29  
Pregunta:  El párrafo 1.20 indica que  "Se adoptaron medidas para aumentar la calidad de 
los servici os de guardería, mejorar el equilibrio entre la vida profesional y la vida privada, WT/TPR/M/414/Add.1  
 
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  y facilitar la reincorporación laboral de quienes hayan interrumpido su carrera 
profesional. Se espera que estas medidas promuevan la participación y el liderazgo de las 
mujeres en el mercado de trabajo".  Al respecto, Chile agradecería a Corea compartir 
detalles de las medidas mencionadas en el párrafo, que buscan promover la participación 
y el liderazgo de las mujeres en el ámbito laboral.  
 
3. Question: Paragraph 1.20 indicates that "Measures were taken to increase the  quality of day  care 
services, improve the balance between  professional life and private life, and facilitate the return to 
work of  those who have interrupted their professional careers. These  measures are  expected to 
promote participation and leadership of  women in the labor market ". In this regard, Chile would 
appreciate  Korea sharing details of the measures mentioned in the paragraph, which seek to promote 
the participation and leadership of women in the workplace  
 
ANSWER : 
The Ministry of SMEs and Startups of the Republic of Korea operates the Women's Startup  Incubation 
Centre (BI) to promote women's entrepreneurship. The purpose of this program is to invigorate 
women's entrepreneurship and strengthen the competitiveness of women's businesses by providing 
comprehensive support for women such as incubation spac e for start -up, information, and other 
measures to help women to start and grow their business. The main target of support is preliminary 
female entrepreneurs and female entrepreneurs within 3 years of starting a business and the 
applicant are able to stay  in BI for up to 3 years from the date of move -in. currently, there are 
18 metropolitan cities centres nationwide and 238 rooms are being in operation.  
The Korean government is striving to guarantee  women's equal rights and opportunities to work by 
continu ously increasing women's economic participation.  
In particular, the joint measure by related ministries to recover from women's employment crisis 
has been in place since March 2021, in the efforts to stop women's employment crisis caused by 
COVID -19 from t urning into a prolonged, structural crisis.  
 
*Key policies: ▴Creating jobs for women in the areas expected to see growing demands, such as 
caregiving and digital services and epidemic prevention and control, by allocating supplementary 
budget ▴Increasing e mployment and start -up support tailored for women forced to leave the labor 
market to promptly reenter the workforce ▴ Providing increased public childcare services, among 
other measures intended to ease caregiving burden on women and help women maintain 
employment  
 
The government  is also making continuous efforts to enhance women's representation in corporate 
boards. The Capital Markets Act was amended to ban companies with total assets valued at KRW 2 
trillion or more from forming corporate boards with members of a specific sex o nly. In addition, the 
gender ratio of executives in listed corporations is routinely analyzed and released in an effort to 
draw corporate attention and promote a social consensus on increasing gender diversity.  
 
3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MED IDAS  
3.1 Medidas que afectan directamente a las importaciones  
3.1.3 Aranceles  
3.1.3.3 Aranceles "flexibles"  
Derechos de Ajuste  
 
Párrafos 3.39 y 3.40, pág. 73  
Pregunta : En los párrafos 3.39 y 3.40 del informe de la Secretaría, se mencionan que los 
derechos de ajuste " solo afectan a los tipos NMF y son fijados anualmente por el MOEF ". 
Se menciona entre los ejemplos las maderas contrachapadas, las que efectivamente 
tienen un arancel NMF de 8% y un " Adjustment Duty " de 10%. Al respecto, Chile 
agradecer ía a Corea si pudiera indicar si esta información es publicada, y en caso 
afirmativo, compartir el sitio web donde estaría publicada dicha información.  
 
4. Question: In paragraphs 3.39 and 3.40 of the Secretariat's report, it is mentioned  that adjustment 
duties "only affect MFN rates and are set annually  by the MOEF." Examples include plywood, which 
effectively has  an MFN tariff of 8% and an "Adjustment Duty" of 10%. In this regard , Chile would 
appreciate Korea if it could indicate whether this information  is published, and if so, share the website 
where such information  would be published.  
 WT/TPR/M/414/Add.1  
 
- 50 - 
 
  ANSWER : 
Adjustment tariffs are announced in the official gazette or website www.law.go.kr.  
 
3.1.6 Medidas antidumping, compensatorias y de salvaguardia  
 
Párrafo 3.66, pág. 82  
Pregunta : El literal vii ) del párrafo 3.66 menciona la creación de un comité de medidas 
comerciales correctivas. Al respecto, Chile agradecería a Corea compartir si dicho comité 
se ha reunido. De ser así, Chile agradecería también indicar como el comité ha 
desarrollado los objeti vos mencionados en el mismo literal vii) y si existen actas públicas 
de dichas reuniones.  
 
5. Question: Paragraph vii) of paragraph 3.66 mentions the creation of a Committee on trade and 
remedies measures committee. In this regard, Chile would appreciate  Korea sharing if the committee 
has met. If so, Chile would  also appreciate indicating how the committee has developed  the 
objectives mentioned in the same paragraph vii) and if there are public  minutes of the meetings . 
 
ANSWER : 
Korea  (KTC) holds a committee on trade & remedies measures with the counties that signed an 
separate MOU , and runs the committee in the way of addressing key issues the parties want to deal 
with. There 's no public minutes of the meeting in this regard.  
 
3.3 Medidas que afecta n a la producción y al comercio  
3.3.4 Política de competencia y controles de precios  
3.3.4.1 Política de competencia  
3.3.4.1.1 Marco de políticas, institucional y normativo  
 
Párrafo 3.182, pág. 121  
Pregunta: El párrafo 3.182 menciona un examen que realiza la KFTC a proyectos de ley. 
Al respecto, Chile agradecería si Corea pudiera indicar cual es el procedimiento por el cual 
la autoridad de competencia KFTC examina proyectos de ley, junto con aclarar si dicho 
examen es un requisito mandatorio para todos los proyectos de ley en Corea.  
 
3.3.4.1.2 Cambios operacionales  
 
6. Question: Paragraph 3.182 mentions a review that the KFTC conducts on bills. In this regard, 
Chile would appreciate if Korea could indicate the procedure  by which the KFTC competition authority 
reviews bills, along  with clarifying whether such review is a mandatory  requirement for all bills in 
Korea.  
 
ANSWER : 
If the government intends to establish or reinforce regulations, it must undergo a regulatory review 
by the Regulatory Reform Committee. The KFTC is in charge of "competitive impact assessment" to 
analyze how new regulations affect competition during the r egulatory review process. Competition 
impact assessment is conducted in the following order: relevant market definition, preliminary 
evaluation, and in -depth evaluation. Lastly, the evaluation results are delivered to the competent 
administrative agency.  
 
Párrafo 3.192, pág. 124  
Pregunta:  El párrafo 3.192 menciona análisis de mercado realizados por la KFTC  en el 
2019 y 2020 en diferentes sectores. Al respecto, Chile agradecería a Corea indicar los 
elementos que toma en consideración la autoridad de competencia KFTC para decidir 
cuáles serán los sectores a los cuales someterá a un análisis de mercado.  
 
7. Question: Paragraph 3.192 mentions market analyzes conducted by the KFTCin 2019 and 2020 
in different sectors. In this regard, Chile would appreciate  Korea to indicate the elements that the 
competition authority  KFTC takes into consideration when deciding wh ich sector s will be subjected 
to a market analysis.  
 
ANSWER : 
The share of the national economy (shipping amount or sales) and market concentration when  
selecting industries subject to market analysis. The selection is based on the need and possibility of WT/TPR/M/414/Add.1  
 
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  system improvement, focusing on areas where addiction oligopoly is fixed, areas where repeated 
violations of the law occur due to institutional factors,  and areas where consumer complaints persist 
due to competition restrictions.  
 
4 POLÍTICAS COMERCIALES, POR SECTORES  
4.5 Servicios  
4.5.6 Servicios de distribución centrados específicamente en el comercio electrónico  
 
Párrafos 4.269 y 4.270, pág. 213  
Pregunta : bajo el título "4.5.6 Servicios de distribución centrados específicamente en el 
comercio electrónico" se indican datos estadísticos que por la redacción de los párrafos 
4.269 y 4.270, parecieran referirse al sector de distribución en general. En ese sentido, 
Chile agradecería a Corea aclarar si la afirmación que se hace en el párrafo 4.269 de que 
los servicios de distribución aportaron 7,6% del PIB en 2020, se refiere a los servicios de 
distribución centrados específicamente en el comercio electró nico, o si esa cifra se refiere 
a los servicios de distribución en general.  
 
8. Question: U nder the heading "4.5.6 Distribution services focused specifically on electronic  
commerce", statistical data are indicated which, due to the wording  of paragraphs 4. 269 and 4.270, 
seem to refer to the distribution  sector in general. In this regard, Chile would appreciate clarifying  
whether the statement made in paragraph 4.269 that distribution  services contributed 7.6% of GDP 
in 2020 refers to distribution  services s pecifically focused on electronic commerce, or if that figure 
refers to distribution services in general.  
 
ANSWER : 
The Wholesale and retail sector, which is one of the GDP components, includes both online and 
offline services.  
 
Párrafo 4.276, pág. 214  
Pregunta: El párrafo 4.276 hace un interesante desglose de las proporciones de los bienes 
y servicios adquiridos por Corea desde el extranjero que fueron adquiridos por medios 
electrónicos. Al respecto, Chile agradecería a Corea indicar si existe informaci ón 
disponible sobre el tipo de adquisiciones que se realizaron desde Corea de productos 
digitales.  
 
9. Question: Paragraph 4.276 makes an interesting breakdown of the proportions  of goods and 
services purchased by Korea from abroad that were  purchased electronically. In this regard, Chile 
would be grateful to  Korea to indicate if there is information  available on the type of acquisitions 
that were made from Korea of  digital products.   
 
[ANSWER]  
The information is not available.  
 
WT/TPR/G/414 - Informe de Gobierno (Rep. de Corea)  
 
4 POLÍTICA COMERCIAL Y DE INVERSIONES  
4.2 Cooperación comercial regional y bilateral  
4.2.1 Política en materia de ALC  
 
Párrafo 4.25, pág. 12  
Pregunta: el párrafo 4.25 menciona la red de ALC en los que participa Corea. Entre ellos, 
17 han sido implementados. Al respecto, Chile agradecería si Corea pudiera compartir 
información sobre el proceso mediante el cual estos 17 ALCs fueron incorporados a su 
legisl ación nacional.  
 
10. Question: Paragraph 4.25 mentions the network of LACs in which Korea participates . Among 
them, 17 have been implemented. In this regard , Chile would appreciate if Korea could share 
information on the  process by which these 17 FTAs were incorporated into its national  legislation.  
 
ANSWER : 
Under Korea's domestic legislative procedure, once a free trade agreement (FTA) is signed, the 
Governm ent submits to the National Assembly the request to consent the ratification of the FTA, WT/TPR/M/414/Add.1  
 
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  including any necessary enactment and amendment of domestic laws for implementing the FTA.  
Pregunta : Adicionalmente, Chile agradecería si Corea pudiera compartir infor mación 
sobre el proceso de incorporación a su legislación nacional, de las decisiones adoptadas 
por los organismos administrativos de estos ALCs.  
 
11. Additionally, Chile would appreciate if Korea could share information on  the process of 
incorporation into its national legislation of the decisions  adopted by the administrative bodies of 
these FTAs.  
 
ANSWER : 
It depends on decisions  adopted by the FTA Committee. Sometimes, it may require administrative 
process only, or in oth er cases, require approval from the National Assembly.  
 
 
  WT/TPR/M/414/Add.1  
 
- 53 - 
 
  CHINA  
1. What is the main reason for Korea 's constant low FDI stock levels compared with other OECD 
countries?  
 
ANSWER : 
A low inward FDI stock level is not necessarily deemed definitively negative. In addition, the FDI 
inflow level is determined by various factors such as average wage rate, abundance of natural 
resources, market size, and industrial structure, which make it ha rd to specify the exact reason for 
the question.  
 
2. Regarding the MFN tariff rate, does Korea  have any plan to further implement tariff concessions 
or drawbacks? If yes, please introduce the main content and schedule of the plan.  
 
ANSWER : 
Currently , Korea doesn 't have any plan to further implement tariff concessions or drawbacks 
regarding the MFN.  But a number of FTAs and multilateral trade agreements in which Korea 
participated are having the effect of lowering the tariff rates.  
 
3. Please elaborate on how the Office of the Foreign Investment Ombudsman handles complaints 
from foreign investors . What is the legal effect of the ruling? Whether the ruling is a final decision?  
 
ANSWER : 
The OFIO is rather a staff organization which focuses on addressing/supporting and providing 
consulting for the difficulties of foreign -invested enterprises , not an organization which has any right 
to "rule" or to make any authorized administrative decisions towards foreign -invested firms.  
However, according to the Foreign Investment Promotion Act(Article 15), it does have the right to 
require relevant docum ents, request for cooperation, and (officially) advise to improve issues 
addressed to the related domestic authorities.  
 
4. Please specify the approval procedures and standards for foreign investors to invest in financial 
services.  
 
ANSWER : 
Foreign financial companies should be approved or licenced by the  Financial Services Commission 
(FSC) to enter into the financial market and run a financial service business.  
The FnHub established under the Financial Supervisory Service (FSS) supports fore ign financial 
companies to facilitate relevant procedures.  
Please refer to the imagebelow for theordinary procedure.  
 
 
 
WT/TPR/M/414/Add.1  
 
- 54 - 
 
  5. Does Korea plan to reintroduce the corporation tax relief policy for foreign investment enterprises? 
How will Korea  provide foreign investment enterprises with safe and stable investment environment 
in the context of the COVID -19 pandemic?  
 
ANSWER : 
The corporation ta x relief policy in regards to foreign investment enterprises was rescinded according 
to international standards. The Korean government, therefore, has  no plan to reintroduce 
corporation tax relief to foreign investment enterprises located in free trade zon es. 
 
6. The COVID -19 pandemic and its prevention and control measures have caused varying degrees 
of impact and restrictions on trade remedy investigation agencies and various parties involving in 
the investigation. What measures have the investigation age ncies of Korea taken to ensure smooth 
trade remedy investigations and reduce the burden of relevant parties?  
 
ANSWER : 
For the investigation involving interested parties in the domestic region, the KTC  has been employing 
both face -to-face investigation and non -contact investigation methodology. The face -to-face 
investigation such as on -site visit  to verify the documentation  is implemented as in the 
pre-COVID -19 environment, but in such a way to minimize  the potential hazard  of the pandemic. 
Non-contact investigation, normally performed via remote conference tools, is also adopted as a key  
part of the investigation process mainly for public hearing, meetings with interested parties, or any 
other investiga tion activities as necessary. Since there is no restriction in the KTC's regulatory 
framework for choosing between face -to-face or non -contact investigation methods, it opts the best 
approach to ensure efficient and effective investigation.  
 
Similarly, th e Korea Trade Commission is conducting both face -to-face and non -contact 
investigation methodologies for investigations on overseas interested parties. However, since it is 
burdensome to carry out overseas on -site investigation due to each country's self -quarantine policy 
for the COVID -19 pandemic, the KTC minimizes on -site investigations as much as possible and 
exchanges written questionnaires and conducts online due diligence investigation through video 
conference in order to reduce the burden of the rele vant parties.  
 
7. According to the K -REACH, most chemicals must be registered before entering the Korea nmarket. 
Please specify the registration procedure and relevant registration cost.  
 
ANSWER : 
Article 10 of the Act on Registration and Evaluation of Chemical Substances states that any person 
who intends to manufacture or import a new substance greater than or equal to 100kg per year or 
an existing substance greater than or equal to one ton per ye ar shall register it before manufacturing 
or importing the chemical substance. In addition, any person who intends to manufacture or import 
a new substance less than 100kg per year shall notify the government of it. The registration and 
notification for ma nufacturing or importing chemical substances shall be applied online by submitting 
an application and relevant additional documents on the Chemical Data Processing System website 
at: https://kreach.me.go.kr .  
The cost for registering a chemical substance v aries widely, which depends on the followings: the 
chemical substance's type, the annual amount manufactured or imported, the method to generate 
or have hazard data, and intended use. Therefore, it is difficult to calculate the general cost for 
registratio n. 
 
8.The home appliances exported to Korea are subject to KC certification in Korea's domestic 
laboratories, which is an expensive cost burden to companies. Does Korea consider approving the 
electrical product test reports issued by foreign laboratories?  
 
ANSWER : 
As an IECE CB Scheme member, Korea recognizes  IECEE test reports and IECEE certificates issued  
by foreign laboratories (CBTL: Certification Body Testing Laboratories), if test reports and certificates  
meet the relevant Korean Safety Standard , in accordance with the relevant Korean law (ELECTRICAL 
APPLIANCES AND CONSUMER PRODUCTS SAFETY CONTROL ACT) .  
 
9. Please specify the content of the Intellectual Property Research and Development (IP -R&D) 
plan. 
 WT/TPR/M/414/Add.1  
 
- 55 - 
 
  ANSWER : 
IP-R&D is an approach to R& D that uses intellectual properties as starting points rather than just 
the outcome of R&D to improve the efficiency of R&D and acquire core patents. IP -R&D is carried 
out in the stages of environmental analysis, patent/paper analysis, and strategy establi shment. As 
a result, it presents strategies for avoiding existing core patents, setting the optimal direction of 
R&D, and acquiring intellectual properties.  
 
10. Please specify measures to improve capabilities of examining new technologies (such as 
technologies related to the Fourth Industrial Revolution, big data, and bio -health , etc.). 
 
ANSWER : 
The Korean Intellectual Property Office restructured its organizational arrangement to newly create 
a bureau dedicated to the examination of convergence tec hnologies, such as big data and bio -health 
(Nov. 2019), and expanded consultative examination among examiners of different technology fields. 
In addition, KIPO provided an examination guideline in the field of convergence technology and 
modified the criter ia for examination.  
 
11.Please elaborate on the background and purpose of the revision of the Trademark Act  in 2020.  
 
ANSWER : 
The Trademark Act was amended in 2020 due to the possibility that one could gain more profit by 
infringing on a trademark then compensating later rather than paying a fair licensing fee. Accordingly, 
the amendment allows compensation up to three times the damages for willful infringement 
(amended in  Oct. 2020), revises the previous regulation that did not consider damages due to 
infringement of products that exceed the right holder's production capacity, and sets a more 
reasonable calculation of compensation damages (amended in  Dec. 2020).  
 
12. T he FSC  has approved many sandbox projects. How does the sandboxes program support 
emerging technologies and services? Do these supporting policies also apply to foreign -invested 
enterprises?  
 
ANSWER : 
The Financial Regulatory Sandbox program is established to promote the development of innovative 
fintech services and to increase consumer benefits.  
In the approval process, the committee reviews the comprehensive adequacy of applied services in 
light of the evaluating criteria stipulated by the law .  
The program provides a temporary waiver, of no longer than four years, of the relevant financial 
regulation to approved fintech companies so that those companies can test their services in the 
market.  
Financial companies subject to the Special Law on F inancial Innovation Support, or any other 
companies which operate business offices in Korea under the Commercial Law, are eligible for the 
program. Thus, any foreign -invested enterprise which operates business offices in Korea and is 
subject to the Commerc ial Law is also eligible for the program.  
 
PART III. OTHER QUESTIONS  
13. Will Korea consider implementing differentiated management for foreign -funded branches and 
subsidiary banks to facilitate the local operation of foreign -funded branches?  
 
ANSWER : 
The Korean government treats nondiscriminatory foreign -funded branches with local financial 
companies, subject to relevant regulations.  
 
 
CHINA  – REVISED ANSWERS  
Question 9. Please specify the content of the Intellectual Property Research and Development 
(IP-R&D) plan.  
 
ANSWER  
IP-R&D uses FTO (freedom to operate) in the approach to R&D which is based on patent documents 
and non -patent literature to improve efficiency of R&D and acquire core patents. IP -R&D is carried 
out in the stages of environmental analysis, patent/paper analysis, and strategy establishment. As WT/TPR/M/414/Add.1  
 
- 56 - 
 
  a result, it presents strategies for avoiding existing core patents, setting the optimal direction of 
R&D, and acquiring intellectual properties.  
 
Question 11. Please elaborate on the background and purpose of the revision of the Trademark Act  
in 2020.  
 
ANSWER  
The Trademark Act was amended in 2020 to increase the amount awarded as damage compensation 
in order to deter situations where one could gain more profit by infringing on a trademark then 
compensating later rather than paying a fair licensing fee. Accordingly, the amendment allows 
compensation up to three times the damages for willful infringement (amended on Oct. 2020) and 
revises the prev ious regulation that did not consider damages due to infringement products that 
exceed the right holder 's production capacity and set a more reasonable calculation of compensation 
damages (amended on Dec. 2020).  
 
  WT/TPR/M/414/Add.1  
 
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  COLOMBIA  
INFORME DE LA SECRETARÍA - DOCUMENTO WT/TPR/S/414  
 
2. REGÍMENES DE COMERCIO E INVERSIÓN  
2.6.1 Visión general  
 
Para 2.72. La Oficina del Mediador en materia de Inversión Extranjera (OFIO ) (y su organismo de 
tramitación de reclamaciones), integrada en el KOTRA, atiende las reclamaciones concretas de los 
inversores extranjeros establecidos en Corea. En 2020, el número de casos gestionados por la OFIO 
fue de 357 (462 en 2015).  
 
1. ¿Podría Corea  indicar de los 357 casos que fueron gestionados por la OFIO, en cuántos de 
ellos pudo darse una solución, total o parcial, a las reclamaciones de los inversionistas 
extranjeros? Adicionalmente, ¿podría Corea indicar, de manera general, qué tipo de 
reclama ciones presentadas por los inversionistas extranjeros fueron las más comunes y en 
qué sectores?  
 
1. Could Korea indicate of the 357 cases that were handled by OFIO, in how many of them could 
a solution, total or partial, be given to the claims of foreign i nvestors? Additionally, could Korea 
indicate, in a general way, what types of claims filed by foreign investors were the most common 
and in which sectors.  
 
ANSWER : 
The number of the cases handled here, 357, refers to the number of cases resolved, which means 
all 357 cases could be provided with total or partial solutions.  
((Types) "Standards, certifications, Inspections(61 cases) " and "Environment(60 cases) " were the 
most common types of the claims.  
 
2.6.2 Restricciones en materia de IED  
 
Para 2.77. Se aplican restricciones a la inversión extranjera si: i) amenaza la seguridad nacional y 
el orden público; ii) tiene efectos dañinos para la higiene pública o la protección del medio ambiente 
o va en contra de la moral o las costumbres coreanas ; y iii) contraviene las leyes y las disposiciones 
de menor rango de la República de Corea. Según lo prescrito por el Reglamento sobre Inversiones 
Extranjeras y el Compendio de Avisos Públicos sobre Inversiones Extranjeras, de las 
1.196  categorías de empre sas que figuran en la Clasificación Industrial Uniforme de Corea, no se 
admiten inversiones extranjeras en 61 categorías, entre ellas las correspondientes al ámbito de la 
administración pública, la diplomacia y la defensa nacional (categoría de empresa no permitida), lo 
que representa una categoría más que en 2016 (60 categorías); las autoridades indican que ello se 
debe a la reclasificación de las categorías en 2016.  
 
2. Derivado la lectura del párrafo 2.77, se entendería que no se permite la inversión extran jera 
en empresas correspondientes, entre otras, al ámbito de la defensa nacional. Sin embargo, 
en el párrafo 2.74 se señala que la  autorización del Gobierno es obligatoria únicamente en 
el caso de la inversión en servicios financieros o la industria de la defensa. En virtud de lo 
expuesto, no sería claro si estaría o no permitida la inversión extranjera en el sector defensa. 
Podría entonces Corea clarificar la situación del sector defensa frente al régimen actual de 
inversión extranjera.  
 
Derived from reading paragraph 2.77, it would be understood that foreign investment is not 
allowed in companies corresponding, among others, to the field of national defense. 
However, paragraph 2.74 states that government authorization is mandatory only fo r 
investment in financial services or the defense industry. By virtue of the foregoing, it would 
not be clear whether or not foreign investment in the defense sector would be allowed. Korea 
could then clarify the situation of the defense sector vis -à-vis the current foreign investment 
regime.  
 
ANSWER : 
"National defense administration " is wholly closed to foreigners.  
However, defense sector mentioned in paragraph 2.74  (i.e. defense  enterprises allowed to operate 
after government authorization) refers to manufacturers of defense supplies stated in "Defense WT/TPR/M/414/Add.1  
 
- 58 - 
 
  Industry Act ", such as firearms or aircrafts.  
 
3. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
 
En el párrafo 3.1 la Secretaria informa que  "Desde el anterior examen de las políticas comerciales, 
la tendencia general de la política comercial de la República de Corea se ha mantenido casi sin 
cambios. El régimen arancelario sigue siendo uno de los principales instrumentos de la política 
comercial de Corea y una fuente relativamente sustancial, aunque decreciente, de ingresos fiscales. 
El Arancel de Aduanas de 2021 sigue siendo transparente, pero resulta relativamente complejo, con 
sus múltiples tipos. El promedio de los ara nceles NMF aplicados disminuyó ligeramente, del 14,1% 
en 2016 al 13,9% en 2021. Las crestas de los tipos ad valorem no se han modificado y siguen 
concentradas en artículos agrícolas. Corea mantiene tipos consolidados para el 90,7% de sus líneas 
arancelaria s, y ha seguido utilizando la diferencia entre los promedios de los tipos arancelarios NMF 
consolidados y aplicados para imponer derechos más elevados (por ejemplo, derechos de ajuste) 
denominados "aranceles flexibles". Corea mantiene contingentes arancela rios en virtud de sus 
compromisos multilaterales de acceso a los mercados agrícolas, así como otras medidas que reducen 
selectivamente los aranceles aplicados a los insumos."  
 
Y en el párrafo 3.32 se indica que "La estructura arancelaria de Corea apenas ha  experimentado 
cambios desde el último examen. El promedio aritmético (no ponderado) de los tipos NMF aplicados 
en 2021 disminuyó ligeramente al 13,9% (14,1% en 2016) (cuadro 3.1 y gráfico 3.1), 
principalmente como resultado de la aplicación de los comprom isos relativos a la ampliación del 
Acuerdo sobre Tecnología de la Información.36 La protección arancelaria varía notablemente entre 
los distintos sectores y dentro de ellos, y el promedio en 2021 es del 60,4% (60% en 2016) para 
los productos agrícolas y de l 6,3% (6,6% en 2016) para los productos industriales (definiciones de 
la OMC).37 Los promedios arancelarios más elevados, del 107,9%, se aplican a los productos del 
reino vegetal (sección II del SA) (gráfico 3.1). Los aranceles más altos aplicados a los p roductos 
manufacturados son del 10,1% para el calzado y los sombreros (sección XII del SA) y del 9,7% para 
las materias textiles y sus manufacturas (sección XI del SA). Dado que otorgan niveles distintos y 
elevados de protección a determinadas ramas de pro ducción, especialmente a la agricultura, los 
aranceles distorsionan la competencia al favorecer algunas actividades. La reducción de los aranceles 
elevados (principalmente los derechos aplicados a la agricultura fuera del contingente) permitiría 
una mejor distribución de los recursos y aumentaría el bienestar nacional, pero las autoridades no 
comparten esta opinión. Según las autoridades, los aranceles agrícolas, incluidos los aranceles fuera 
del contingente, se mantienen de conformidad con las leyes intern acionales y nacionales, teniendo 
en cuenta las condiciones del mercado."  
 
3. El informe de la Secretaría refleja que desde el examen anterior no se aprecian mayores 
cambios en la estructura y niveles aplicados del arancel de Corea. Los promedios 
arancelarios básicamente se mantienen inalterados, sin variaciones en crestas y distintas 
categorías. Dado el contexto de recuperación post pandemia, sería de interés conocer si 
Corea está contemplando ajustes o modificaciones a su estructura arancelaria que 
simplifiqu en el acceso a su mercado, particularmente para productos agrícolas (60,4% en 
promedio, ligeramente superior a lo registrado en 2016), donde se concentran las principales 
crestas.  
 
The Secretariat's report reflects that since the previous review, there are no major changes in 
the structure and applied levels of Korea's tariff. The tariff averages basically remain unchanged, 
without variations in peaks and different categories. Given the context of post -pandemic 
recovery, it would be interesting to know if Korea is contemplating adjustments or modifications 
to its tariff structure that simplify access to its market, particularly for agricultural products 
(60.4% on average, slightly higher than that registered in 2016 ), where the main ridges are 
concentrated  
 
ANSWER : 
Currently Korea does not plan to simplify or modify tariff structure. But Korea has implemented the 
tariff concession precisely without delay according to WTO agreement, including agricultural products. 
And, Korea has signed a number of F TAs and multilateral  trade agreements with Colombia, U.S., EU 
and China, etc., so it makes effects of lowering tariff rates.   
 WT/TPR/M/414/Add.1  
 
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  3.1 Medidas que afectan directamente a las importaciones  
3.1.1 Procedimientos y requisitos aduaneros y valoración en aduana  
3.1.1.1 Procedimientos  
 
En el párrafo 3.12 se informa que" Corea ratificó el Acuerdo sobre Facilitación del Comercio (AFC) 
de la OMC el 30 de julio de 2015, y lo puso plenamente en vigor el 22 de febrero de 2017.14 En 
enero de 2021, Corea presentó su notif icación sobre la aplicación (categorías A, B y C), en la que se 
designaban todas las disposiciones contenidas en los artículos 1 a 12 del AFC como disposiciones de 
la categoría A, y su notificación en materia de transparencia de conformidad con los artícul os 1.4, 
10.4.3, 10.6.2.  y 12.2.2. Corea se adhirió al Convenio de Kyoto revisado (Convenio Internacional 
para la Simplificación y Armonización de los Regímenes Aduaneros) en febrero de 2003, y la 
adhesión estaba sujeta a algunas reservas en la fecha del ex amen anterior; el Convenio entró en 
vigor en febrero de 2006.16 Las autoridades no han facilitado información sobre si esas reservas se 
han levantado o si se han firmado nuevos acuerdos internacionales desde 2016"  
 
4. Corea es uno de los países líderes en materia de facilitación al comercio y su récord de 
asistencia a terceros países también es destacado. Se resalta especialmente su notificación de 
enero de 2021 en torno a la designación de todas las disposiciones del T FA como Categoría A. 
Es por esto que, ¿Podría Corea compartir, (si las tiene), sus iniciativas en materia de construcción 
de capacidad para países en desarrollo, en el marco del TFA?.  
 
Korea is one of the leading countries in trade facilitation and its rec ord of assistance to third 
countries is also outstanding. Its notification of January 2021 regarding the designation of 
all provisions of the TFA as Category A is especially highlighted. This is why, could Korea 
share, (if it has them), its initiatives on capacity building for countries under development, 
under the TFA?  
 
[ANSWER]  
Korea is carrying out various capacity -building projects to aid developing countries with TFA every 
year. Also, we are working relentlessly to strengthen developing countries' digi tal capabilities, as 
well as risk management, cargo management, etc.  
 
3.1.3 Aranceles  
 
La Secretaría, en su Informe, plantea que "el régimen arancelario sigue siendo uno de los principales 
instrumentos de la política comercial de Corea y una fuente relativamente sustancial, aunque 
decreciente, de ingresos fiscales. El Arancel de Aduanas de 2021 sigue siendo transparente, pero 
resulta relativamente complejo, con sus múltiples tipos". También se menciona que "Corea mantiene 
contingentes arancelarios en  virtud de sus compromisos multilaterales de acceso a los mercados 
agrícolas, así como otras medidas que reducen selectivamente los aranceles aplicados a los 
insumos", tal como se plantea en el literal  
 
3.1.3.3 Aranceles "flexibles" (párrafo  3.37):  "El sis tema permite que las autoridades aumenten 
o reduzcan ciertos aranceles discrecionalmente, de modo que cuentan con un margen considerable 
para alentar o desalentar la importación de determinados artículos a fin de estabilizar los precios, 
proteger a los pro ductores nacionales, asegurar un abastecimiento constante y aplicar otra política 
industrial".  
 
5. ¿Podría indicar Corea si las autoridades cuentan con algunos lineamientos de política o un 
instructivo con criterios para seleccionar los productos que serán ob jeto de modificación 
para "alentar o desalentar la importación a fin de estabilizar los precios, proteger a los 
productores nacionales y asegurar un abastecimiento constante?   
 
Could Korea indicate whether the authorities have any policy guidelines or an i nstruction manual 
with criteria for selecting the products to be modified to "encourage or discourage imports in order 
to stabilize prices, protect domestic producers, and ensure a constant supply?  
 
ANSWER : 
In order to select flexible tariff items such as adjustment tariffs, the authorities first receive 
applications from related ministries and industries, select the items in consideration of import prices 
and import volume trends, domestic prices and supply trends, and finally decide through revision of  
laws. WT/TPR/M/414/Add.1  
 
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  6. ¿A cuáles sectores o subsectores agropecuarios se les aplicó aranceles flexibles en el período 
objeto de Examen de la Política Comercial?   
 
Which agricultural sectors or subsectors were applied flexible tariffs in the period under the Trade 
Policy R eview?  
 
ANSWER : 
From 2016 to 2020, Korea administered autonomous tariff quotas, adjustment tariffs and special 
safeguard duties for 42 items relating to agriculture.  
Autonomous tariff quotas (26) : hatching eggs, fresh eggs, processed egg products, sweet w hey 
powder, manioc pellet, unhulled barley, oat, maize(corn) for feed, soybean, cotton seeds, alfafa, 
fodder roots, animal or vegetable fats and oils, lactose, molasses, bran, beet -pulp, DDGS, soybean 
meal, cottonseed meal, cottonseed hulls, preparations o f a kind used in animal feeding, material for 
manufacturing agricultural chemicals, urea, manioc chip, sugar.  
 
Adjustment tariffs (4) : steamed or boiled rice, Chinese vermicelli, Gochujang, mixed seasonings  
Special safeguard duties(2) : rice, ginseng  
 
7. ¿Cuándo se aplican aranceles "flexibles", se exceptúan los productos con preferencia 
arancelaria bajo los Acuerdos de libre comercio vigentes?  
 
When "flexible" tariffs are applied, are products with a tariff preference excepted under existing free 
trade ag reements?  
 
ANSWER : 
Comp ared to flexible tariff rate, when FTA tariff rate is lower than flexible tariff, the FTA tariff rate 
can be applied, but, if, reversely, FTA tariff rate is higher than flexible tariff rate, the flexible tariff 
rate can be applied. But especially, anti -dumping, countervailing, retaliatory, emergency duties shall 
be applied as a top priority.  
 
Derechos de ajuste  
 
Tomando como referencia lo planteado por la Secretaría en el párrafo 3.39: "Los derechos de ajuste 
tienen por fin proteger a las ramas de producción nacionales frente a los aumentos súbitos de las 
importaciones y atenuar las repercusiones de la liberalización del comer cio. Solo afectan a los tipos 
NMF y son fijados anualmente por el MOEF de conformidad con la solicitud de las autoridades 
gubernamentales competentes".  
 
8. Sobre el particular, Colombia agradece a Corea, aclarar si los derechos de ajuste reemplazan 
la adopci ón de medidas de defensa comercial, específicamente las salvaguardias y cuál es 
procedimiento que sigue el MOEF para atender las solicitudes de las autoridades 
gubernamentales competentes.   
 
In this regard, Colombia thanks  Korea for clarifying whether adju stment rights replace the 
adoption of trade defense measures, specifically safeguards and what is the procedure 
followed by the MOEF to respond to requests from the competent government authorities.  
 
ANSWER : 
In order to proceed adjustment tariff system, MOEF first receives applications from related ministri
es and industries, selects the items in consideration of import prices and import volume trends, do
mestic prices and supply trends, and finally decides thro ugh revision of laws.  
 
En el párrafo 3.178. se señala que "En el período examinado, la demanda de condiciones sanitarias 
simplificadas para la importación ha sido mayor a consecuencia de la proliferación de acuerdos 
comerciales multilaterales, como el Acu erdo de Asociación Económica Amplia Regional (RCEP) y el 
Tratado Integral y Progresista de Asociación Transpacífico (CPTPP). En noviembre de 2019, el MFDS 
introdujo el Sistema de Despacho Rápido de las Importaciones Previstas, con el que las empresas 
fiables con un largo historial de importaciones de productos alimenticios de forma segura sin 
antecedentes de incumplimiento pueden efectuar el despacho de aduana inmediatamente tras la 
declaración de importación; en 2020, podían beneficiarse de este sistema 72  artículos de importación 
prevista de 23 empresas. Desde abril de 2020 es posible bloquear con rapidez el despacho de aduana 
de productos alimenticios (y medicamentos), al relacionar la información sobre productos peligrosos WT/TPR/M/414/Add.1  
 
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  con el sistema Gestión Integral  de Riesgos -PASS (IRM -PASS) de la KSA. Además, en 2019, el MFDS 
introdujo el Sistema de Órdenes de Inspección para la Fase de Distribución, para fomentar que las 
empresas, de manera voluntaria, examinen las importaciones de productos alimenticios distribui dos 
que puedan causar daños y demuestren la inocuidad de sus productos; se dictaron órdenes para 
inspeccionar los productos de brotes de cebada en polvo (con un contenido superior al 50%) 
distribuidos que tenían muchos antecedentes de incumplimiento en la fase de despacho de aduana."  
 
9. En el informe la Secretaría, señala que, durante el período de examen, la demanda de 
condiciones sanitarias simplificadas para la importación ha sido mayor a consecuencia de la 
proliferación de acuerdos comerciales (regionales ). A pesar de los desarrollos de Corea en 
esta materia en cuanto a reconocimientos mutuos, los tiempos para la culminación de 
procesos de admisibilidad sanitaria siguen siendo extensos y complejos.  
 
¿Existe algún plan de la administración coreana que teng a como objetivo reducir los períodos 
actuales de revisión y aprobación de protocolos sanitarios?  
 
In the report, the Secretariat notes (para 3.178)  that, during the review period, the demand for 
simplified sanitary conditions for imports has been greater as a result of the proliferation of (regional) 
trade agreements. Despite Korea's developments in this area in terms of mutual recognition, the 
times  for the completion of sanitary admissibility processes remain long and complex.  
Is there a plan of the Korean administration that aims to reduce the current review and approval 
periods of sanitary protocols?  
 
ANSWER : 
The import permit of animal and livest ock products is reviewed and determined upon request by an 
exporting country, in accordance with the domestic law (Act on the Prevention of Contagious Animal 
Diseases).  
 
* Import Permit Procedure (8 steps) : ① Review on the possibility of market access , 
② Submission of Animal Health Questionnaire , ③ Review of the answers to the 
questionnaire , ④ On-site inspection , ⑤ Decision on market access , ⑥ Consultation on 
Import Health Requirements , ⑦ Enactment and notific ation of IHR , ⑧ Consultation on 
template import health certificate . 
 
The approval time may be reduced according to prompt provision of information by the exporting 
country, as well as the on -site inspection.  
 
3.1.2 Normas de Origen  
 
3.28. El KCS  sigue realizando actividades de promoción de los ACR y los ALC para ayudar a las 
empresas a utilizar preferencias comerciales con sujeción a normas de origen diversas y complejas. 
Para simplificar la prueba del origen y los documentos de prueba, el KCS ma ntiene desde 2010 un 
sistema en virtud del cual un exportador capaz de demostrar el país de origen de sus productos es 
designado como exportador autorizado. Desde el 7 de septiembre de 2010, funciona también un 
sistema FTA -PASS electrónico para la determin ación del origen y la gestión; el sistema FTA -PASS 
puede conectarse con UNI -PASS (sección 3.1.1.1) de modo que pueden emitirse documentos para 
demostrar el origen de manera rápida y conveniente. Desde 2010, el KCS gestiona un sistema de 
alerta electrónica para la utilización de los ALC que indica qué mercancías son objeto de trato 
arancelario preferencial en el sistema de despacho electrónico de aduanas en el momento de la 
importación. Desde septiembre de 2010 se ha distribuido en línea, para su uso por las  pymes, un 
programa gratuito de autogestión de trámites relacionados con el origen que permite determinar la 
condición de las mercancías en cuanto al origen. Por otra parte, desde octubre de 2010, el KCS 
mantiene un sitio web (https://www.origin.or.kr) que  permite obtener información y datos sobre 
todos los ACR y ALC formalizados hasta el momento. Se han hecho esfuerzos por aumentar la 
conciencia del público mediante seminarios, talleres, concursos y cursos relacionados con los ACR y 
ALC. 
 
10. ¿Podría el go bierno de Corea del Sur ampliar información acerca de los diferentes 
mecanismos y herramientas implementados para ayudar a las PYMES a utilizar las 
preferencias comerciales sujetas a normas de origen diversas y complicadas?   
 WT/TPR/M/414/Add.1  
 
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  Could the South Korean government provide more information about the different 
mechanisms and tools in place to help SMEs use trade preferences subject to diverse and 
complicated rules of origin?  
 
[ANSWER]  
In addition, KCS offers 13 curriculums related to utilizing FTA, including HS Code, Approve Exporter, 
and FTA -PASS. We also operate 'Consultants Visitation', where customs officials personally visit the 
SMEs.  
 
3.3 Medidas que afectan a la producción y al comercio   
3.3.7 Derechos de propiedad intelectual  
3.3.7.1.1  Patent es y modelos de utilidad  
 
3.247.  Durante el período objeto de examen, la KIPO aplicó políticas encaminadas a fomentar la 
utilización de datos sobre patentes en el proceso de I+D. Entre 2019 y 2020, amplió drásticamente 
la aplicación del plan de I+D en mate ria de propiedad intelectual de la KIPO, con el objetivo de 
mejorar la eficiencia de los proyectos de I+D y garantizar tecnologías esenciales. Este plan consiste 
en ampliar los programas de I+D relacionados con la propiedad intelectual en el marco de los 
proyectos públicos de I+D, fomentar una I+D relacionada con la propiedad intelectual adaptada a 
cada fase de crecimiento de una empresa, y fortalecer los cimientos para la proliferación de la I+D 
relacionada con la propiedad intelectual en la industria, el mundo académico y los centros de 
investigación.  
 
11. ¿Podría Corea informar con mayor detalle acerca del funcionamiento y resultados del plan 
de I+D en materia de propiedad intelectual de la KIPO , haciendo especial referencia a la 
ampliación de los programas de I+D relacionados con la propiedad intelectual en el marco 
de los proyectos públicos de I+D, ¿y el fomento de la I+D relacionada con la propiedad 
intelectual adaptada a las fases de crecimie nto de las empresas?  
 
Could Korea provide further details on the operation and results of KIPO's IP R&D plan, with special 
reference to expanding IP -related R&D programs under the of public R&D projects, and the 
promotion of R&D related to intellectual pro perty adapted to the growth phases of companies?  
 
ANSWER : 
IP-R&D is an approach to R&D that uses intellectual properties as starting points rather than just 
the outcome of R&D to improve efficiency of R&D and acquire core patents. IP -R&D is carried out in 
the stages of environmental analysis, patent/paper analysis, and strategy establishment. As a result, 
it presents strategies for avoiding existing core patents, setting the optimal direction of R&D, and 
acquiring intellectual properties.  
 
3.3.7.3  Observancia  
 
3.285.  El MCST puede incautarse, eliminar o destruir programas informáticos adquiridos de forma 
ilegal y ordenar a los proveedores de servicios de Internet que rechacen, suspendan o limiten los 
productos y servicios piratas.  
 
12. ¿Podría C orea ampliar la información relativa al funcionamiento de la competencia que tiene 
el MCST para ordenar a los proveedores de servicios de Internet que rechacen, suspendan 
o limiten los productos y servicios piratas y adicionalmente nos gustaría conocer com o esta 
competencia se articula con el régimen de responsabilidad de los proveedores de servicios 
de internet por material infractor a los derechos de propiedad intelectual que se aloja en 
sus plataformas?  
 
Could Korea expand the information regarding the o peration of competition that MCST has to order 
Internet service providers to reject, suspend or limit pirated products and services and additionally 
we would like to know how this competition is articulated with the liability regime of internet service 
providers for material infringing intellectual property rights that is hosted on their platforms?  
 
ANSWER : 
The Minister of Culture, Sports and Tourism may order the online service provider to warn the 
copiers/transmitters of illegal reproductions, delete or stop transmitting illegal reproductions in 
accordance with Article 133 -2 of the Copyright Act. A fine up to 10 million KRW may be imposed if WT/TPR/M/414/Add.1  
 
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  the order is not implemented. Also, the Korea Copyright Protection Agency may recommend online  
service providers to warn against copiers /transmitters of illegal reproductions, delete or stop 
transmitting illegal reproduc tions, after deliberation at the Copyright Protection Deliberation 
Committee(Copyright Act 133 -3) 
 
Online service providers are  sometimes  the direct or indirect subjects of copyright infringement, 
however they are in the most effective position to prevent infringement related to the service. Korean 
copyright legislation system certain roles on online service providers to prevent, deter and stop 
copyright infringement and limit their liability accordingly. The Copyright Act classifies the types of 
the online  service, stipulates the requirements for limiting liability for each type, and exempts liability 
if the online service providers satisfy the requirements or the satisfaction is technically 
impossible(Copyright Act 102, 103(5)).In addition, the Copyright A ct limits the measures that the 
court can order when there is a criminal prosecution against online service providers who meet the 
requirements(Copyright Act Article 103 -2). 
 
4 POLÍTICAS COMERCIALES, POR SECTORES  
 
4.2. Pesca  
 
Refiere el Informe de la Secretaría que el Gobierno de Corea sigue luchando contra la pesca ilegal, 
no declarada y no reglamentada (INDNR), y otorga ayuda interna para el desmantelamiento de 
embarcaciones y la ordenación de los recursos pesqueros. Sigue promoviendo el desarrollo d e una 
producción pesquera y acuícola sostenibles.  
 
En la sección  4.2.3 Ayuda interna, párrafo  4.72,  se plantea que "Corea notificó a la OMC, de 
conformidad con el artículo XVI.1 del GATT de 1994 y el artículo 25 del Acuerdo sobre Subvenciones 
y Medidas Com pensatorias, que sigue prestando apoyo financiero al sector pesquero. El apoyo se 
presta en forma de donaciones o préstamos a bajos intereses (cuadro 4.7), de conformidad con la 
Ley de Pesca, la Ley de Gestión de los Recursos Pesqueros, la Ley de Fomento d e la Industria de la 
Acuicultura, la Ley de Fomento de la Pesca en Aguas Distantes y la Ley de Mejoras Estructurales y 
Ayuda a la Pesca Nacional".  
 
13. A la luz de lo planteado, Colombia está interesada en conocer si Corea en el marco de las 
negociaciones sobr e las disciplinas relativas a las subvenciones a la pesca, mantiene su 
compromiso de  no solicitar el trato especial y diferenciado previsto para los países en 
desarrollo en las negociaciones en curso y futuras en la Organización, planteado en la 
sección  2.5 Acuerdos y arreglos comerciales,  2.5.1 OMC, párrafo 2.36  
 
In light of the above, Colombia is interested in knowing whether Korea, in the framework of 
the negotiations on disciplines related to fisheries subsidies, maintains its commitment not 
to request the special and differential treatment provided for developing countries. in 
ongoing and future negotiations in the Organization, raised in section 2.5 Trade Agreements 
and Arrangements, 2.5.1 WTO, paragraph 2.36  
 
ANSWER : 
Regarding the fisheries sector, Korea has not been nor will not be a demandour for Special and 
Differential Treatment.  
 
INFORME DEL GOBIERNO - DOCUMENTO WT/TPR/G/414  
 
3 POLÍTICA ECONÓMICA  
3.1 Los elementos centrales de la política económica: innovación, inclusión y equidad  
 
3.2. En cuanto a la innovación, Corea trata de promover la innovación en el ecosistema industrial 
mediante la eliminación de normas superfluas. Por lo que respecta a la inclusión, está trabajando 
para mejorar la calidad de los puestos de trabajo y reforzar las redes de protección de las personas 
de bajos ingresos y vulnerables con objeto de reducir la desigualdad y crear una economía más 
inclusiva. Y en cuanto a la equidad, Corea está combatiendo las prácticas comerciales desleales y 
alentando la cooperación entre las grandes empresas y las pequeñas y medianas empresas a fin de 
sentar unas bases firmes para una economía de mercado sólida.  
 WT/TPR/M/414/Add.1  
 
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  14. El gobierno de Colombia desea conocer ¿De qué manera el gobierno de Corea del Sur alienta 
la coope ración entre grandes y pequeñas y medianas empresas? ¿Existe algún mecanismo 
especial para alcanzar este objetivo?  
 
The government of Colombia wants to know how the government of South Korea encourages 
cooperation between large and small and medium -sized companies? Is there a special mechanism 
to achieve this goal?  
 
ANSWER : 
The Korean government is promoting various policies to create a culture of voluntary win -win 
cooperation between large and small companies led by the private sector and sup ported by the 
government.  
Korea Commission for Corporation Partnership (KCCP) as a committee in the private sector is being 
formed to discuss ways to achieve win -win cooperation between large and small companies, and the 
win-win growth index where large corporations participate voluntarily is evaluated and published the 
results every year to identify excellent win -win cooperation cases and to promote a cooperative 
culture.  
The Ministry of SMEs and Startups try to discover and spread various win -win cooperation models 
by designating a large company as a "Inclusive Company" that share their strengths and know -how 
with not only SMEs with business relationships but also non -trading companies and small business 
owners.  
 
3.3.2 Sector manufacturero: desarro llo de una gran potencia industrial  
 
3.14. En el marco de esos esfuerzos, Corea ha acelerado el proceso de transición hacia una industria 
más inteligente y más verde. En 2020, Corea había construido unas 20.000 fábricas inteligentes y 
siete complejos industriales inteligentes para mejorar la productividad del sector manufacturero. 
Además, Corea ha creado diversos grupos de trabajo para la transformación digital en la esfera de 
la movilidad, los electrodomésticos y otros sectores con objeto de promover la utilización de 
tecnologías digitales en  diferentes ámbitos del ecosistema industrial (incluidos el desarrollo, la 
producción y el consumo). A fin de establecer un marco institucional para estas iniciativas, el 
Gobierno coreano está actualmente preparando la aprobación de la Ley de Transformació n Digital 
de los Sectores.  
 
15. En la evaluación de la OCDE de 2019 se señalaron como aspectos con espacio a mejorar los 
relacionados con el número de procedimientos agilizados electrónicamente. Dado el énfasis del 
gobierno coreano por asegurar un crecimi ento económico basado en la innovación y en el uso 
de tecnologías digitales, ¿Cuál es la proyección en esta materia? y ¿Cuáles son los objetivos 
fijados?  
 
In the 2019 OECD evaluation, those related to the number of electronically expedited 
procedures were identified as aspects with room for improvement. Given the Korean 
government's emphasis on ensuring economic growth based on innovation and the use of digital 
technologies, what is the projection in this matter? and What are the objectives set?  
 
[ANSWER]  
The Ministry of Justice has been dealing with the online issuance of visa through the visa 
portal( www.visa.go.kr) . Electronic visa can be issued when the Minister of Justice recognizes that 
examination from the head o f the diplomatic mission is deemed unnecessary in light of the principle 
of reciprocity of each State or the interest of the Republic of Korea.  
At the current moment, the application and issuance of electronic visas has been temporarily 
suspended due to t he current situation of COVID -19. However, once the COVID -19 situation 
improves, normalization of this operation and the expansion of electronic visa issuance will be 
favorably reviewed.  
 
3.17. Además, para desarrollar nuevos servicios, mejorar la calidad  y reforzar la seguridad en la era 
de la cuarta revolución industrial, Corea sigue elaborando las normas necesarias para diferentes 
sectores, como el sector de los vehículos eléctricos y autónomos, la energía (hidrógeno) y los 
semiconductores sin memoria. Corea tiene previsto asimismo proponer 300 normas internacionales 
para 2023. Por otra parte, la Ley Especial de Revitalización de las Empresas, promulgada en 2016, 
prevé exenciones reglamentarias y procedimientos simplificados que permiten a las empresas 
proceder a su reestructuración voluntaria en poco tiempo y desarrollar nuevas actividades WT/TPR/M/414/Add.1  
 
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  prometedoras para evitar la insolvencia. En 2020 se concedieron autorizaciones de reestructuración 
a un total de 166 pequeñas y medianas empresas.  
 
16. Se destaca en el in forme de Gobierno el significativo desarrollo en materia de normas 
técnicas durante los últimos años, con desarrollos que apuntan a fortalecer el crecimiento 
en nuevos sectores como vehículos eléctricos y autónomos, el uso del hidrógeno como 
fuente de ener gía y los semiconductores. También se menciona que Corea tiene previsto 
proponer 300 normas internacionales para 2023.  
 
¿Podrían las autoridades coreanas elaborar sobre el tipo de normas que tienen previsto 
presentar? ¿Cómo es su proceso de elaboración? ¿Qué sectores abarcarán?  
 
The government report highlights the significant development in terms of technical standards in 
recent years, with developments that aim to strengthen growth in new sectors such as electric and 
autonomous vehicles, the use of hydrogen as a source of energy and semiconductors . It is also 
mentioned that Korea plans to propose 300 internat ional standards by 2023  
Could the Korean authorities elaborate on the type of standards they plan to present? How is your 
production process? What sectors will they cover?  
 
ANSWER : 
KATS tries to link research and development results in the 4th industry div ision to standards, and 
standardizes performance requirements and test methods. We contribute to the promotion of 
international standardization in the 4th industry by actively suggesting the results as international 
standards such as ISO and IEC.  
 
 
COLOMBI A – REVISED ANSWER  
3.3.7.1.1  Patentes y modelos de utilidad  
 
3.247.  Durante el período objeto de examen, la KIPO  aplicó políticas encaminadas a fomentar la 
utilización de datos sobre patentes en el proceso de I+D. Entre 2019 y 2020, amplió drásticamente 
la aplicación del plan de I+D en materia de propiedad intelectual de la KIPO, con el objetivo de 
mejorar la eficie ncia de los proyectos de I+D y garantizar tecnologías esenciales. Este plan consiste 
en ampliar los programas de I+D relacionados con la propiedad intelectual en el marco de los 
proyectos públicos de I+D, fomentar una I+D relacionada con la propiedad intel ectual adaptada a 
cada fase de crecimiento de una empresa, y fortalecer los cimientos para la proliferación de la I+D 
relacionada con la propiedad intelectual en la industria, el mundo académico y los centros de 
investigación.  
 
11. ¿Podría Corea informar c on mayor detalle acerca del funcionamiento y resultados del plan de 
I+D en materia de propiedad intelectual de la KIPO, haciendo especial referencia a la ampliación de 
los programas de I+D relacionados con la propiedad intelectual en el marco de los proyec tos públicos 
de I+D, ¿y el fomento de la I+D relacionada con la propiedad intelectual adaptada a las fases de 
crecimiento de las empresas?  
 
Could Korea provide further details on the operation and results of KIPO's IP R&D plan, with special 
reference to ex panding IP -related R&D programs under the of public R&D projects, and the 
promotion of R&D related to intellectual property adapted to the growth phases of companies?  
 
Answer  
IP-R&D uses FTO  (freedom to operate) in the approach to R&D which is based on patent documents 
and non -patent literature to improve efficiency of R&D and acquire core patents. IP -R&D is carried 
out in the stages of environmental analysis, patent/paper analysis, and strat egy establishment. As 
a result, it presents strategies for avoiding existing core patents, setting the optimal direction of 
R&D, and acquiring intellectual properties.  
 
  WT/TPR/M/414/Add.1  
 
- 66 - 
 
  COSTA RICA  
A. Informe de la Secretaría  
 
Página 191, párrafo 4.153  
 
4.153. Las exportaciones de servicios aumentaron de USD 94.800 millones en 2016 a 
USD 103.800  millones en 2019, antes de descender a USD 90.100 millones en 2020 (cuadro 1.4). 
Los principales destinos de las exportaciones de servicios son China, los Estados Unidos, la  
Unión  Europea y el Japón.58 Las importaciones de servicios aumentaron de USD 112.100 millones 
en 2016 a USD 130.700 millones en 2019, antes de descender a USD 106.300 millones en 2020. 
Los principales servicios comercializados son los servicios de transpo rte, otros servicios prestados a 
las empresas y los servicios relacionados con los viajes.  
 
Pregunta : 
 
• ¿Podría Corea por favor brindar mayor detalle sobre los principales servicios que componen 
sus importaciones?  
 
Page 191, paragraph 4.153 : Could Korea  explain  detail about the main services  that make up your 
imports?  
 
ANSWER : 
According to the Bank of Korea's service trade balance data, the top five areas of service income as 
of 2020 are transportation, travel, construction, processing services, and insurance.  
 
Página 192, párrafo 4.161  
 
4.161. Durante el período objeto de examen, Corea también notificó a la OMC los acuerdos que 
había firmado con el Estado de Texas (Estados Unidos) y con Australia sobre el reconocimiento 
mutuo de las licencias de inge niero profesional.69  
 
Preguntas : 
 
• ¿Podría Corea por favor brindar mayor detalle sobre los acuerdos de reconocimiento mutuo y 
si estos derivan de la implementación de compromisos adquiridos en el marco de un acuerdo 
comercial?  
• ¿Podría por favor Corea indicar, de conformidad con estos acuerdos, cuáles requisitos debe 
presentar un ingeniero australiano y uno del Estado de Texas para poder ejercer en Corea?  
 
Page 192, paragraph 4.161  
• Could Korea explain  more detail about mutual recognition  agreeme nts and whether they stem 
from the implementation  of commitments made under a trade agreement?  
• According to the data these agreements , what requirements must an Australian engineer and 
a Texas state engineer meet to be able to practice in Korea?  
 
ANSWER : 
Korea has signed MRAs(Mutual Recognition Agreement) with engineering organizations in Australia 
and Texas, USA, as follow -up on FTA.  Any person intending to perform professional engineers' duties 
under professional engineers Act shall register with the Minister of Science and ICT.A summary of 
the conditions for recognition as a Korean Professional Engineer through mutual recognition 
agreement is as follows.  
 
Organization  Mutual Recognition Provisions  
Australia(EA)  APEC Engineer Registered in Australia satisfying the requirements below  
① The person has completed an accredited or recognised engineering program, or 
assessed  and recognisedas equivalent.  
② The person has been assessed within their own economy as eligible for 
independent practice.  
③ The person has gained a minimum of seven years of practical experience since 
graduation.  
④ The person has spent at least two years in respons ible charge of significant 
engineering work.  WT/TPR/M/414/Add.1  
 
- 67 - 
 
  Organization  Mutual Recognition Provisions  
⑤ The person has maintained their continuing professional development at a 
satisfactory level  
⑥ The person has agreed to be bound by the codes of professional conduct 
established and enforced by their home jurisdict ion and by any other 
jurisdiction within their practice and responsibility for legal proceeding.  
Texas(TBPELS)  ① Registered/Licensed Engineer in the Home Jurisdiction.  
② Pass any examination or interview whose sole purpose is to ensure that the 
applicant unde rstands local practices, legislation, etc.  
③ One year of Korean or Korean equivalent experience to show familiarity with 
Korean codes of conduct and engineering practice to enable Registration in the 
Republic of Korea.  
④ Experience Requirement: Provide a verif ied record of engineering experience 
demonstrating seven years of practical experience since graduation, including 
three years of experience after initial licensure.  
⑤ Agreed to conform to the ethical standards of the Host Jurisdiction.  
 
Korea has made Mutual Recognition Agreements on Professional Services  with 
Texas -USA(engineering) and Australia(engineering). These MRAs stem from the implementation of 
commitments made under the Free Trade Agreements between the countries. By signing the MRAs, 
Korean Engineers can be recognised as domestic engineers in Texas and Australia without additional 
license examination.  
 
Página 194, párrafo 4.166  
 
4.166. La incorporación de tecnologías digitales, un sector en rápido crecimiento, está provocando 
importantes cambios en el sector de los servicios financieros. Las repercusiones de la pandemia de 
COVID -19 y el cierre de sucursales físicas han acelerado este proceso, como consecuencia del cual  
• se han creado recientemente dos bancos que operan solo por I nternet; (…)  
 
Pregunta : 
 
• ¿Podría Corea por favor indicar si entidades extranjeras pueden operar bancos que prestan 
servicios exclusivamente por Internet?  
 
Page 194, paragraph 4.166  
• Could Korea please indicate that foreign entities  can operate banks that exclusively over the 
Internet ? 
 
ANSWER : 
(On the premise that the question means foreign entities operate banks as Mode1) Foreign entities 
cannot operate banks only over internet without commercial presence within Korea.  
 
Página 211, párrafo 4.255  
 
4.255. La propiedad extranjera de compañías aéreas coreanas está limitada a menos del 50%, y las 
empresas deben registrar su aeronave en Corea. Se permite en la actualidad la inversión extranjera 
sin restricciones en las actividades de apoyo al transporte aéreo, incluido el mantenimiento, la 
reparación y revisión de aeronaves, y en 2017 se eliminó el límite del 50% en la participación 
extranjera en el capital que existía con anterioridad (sección 2.6.2). Las empresas nacionales pueden 
encargar la reparación  o el mantenimiento de su aeronave en el extranjero, pero solo por mecánicos 
que posean el correspondiente certificado de mecánico de mantenimiento en el extranjero. No hay 
un proveedor monopolístico de servicios de sistemas de reserva informatizados, ni e s obligatorio 
recurrir a un proveedor en concreto para esos servicios. Se permite la autoasistencia, la prestación 
mutua de servicios y la prestación de servicios por terceros, y no hay límites al número de 
proveedores de servicios de escala en los princip ales aeropuertos.  
 
Pregunta : 
 
• ¿Podría Corea por favor brindar más información sobre el certificado de mecánico de 
mantenimiento en el extranjero?  
 WT/TPR/M/414/Add.1  
 
- 68 - 
 
  Page 211, paragraph 4.255  
Could Korea please provide more  information  about the overseas maintenance mechan ic certificate?  
 
ANSWER : 
Those who have obtained aviation technician qualifications abroad can take the exam to convert to 
domestic qualifications. However, it should have been acquired in accordance with the standards set 
by the International Civil Aviation Organization(ICAO). Th ose who pass the exam can  take the 
domestic qualifications. Details of the conversion procedure are stipulated in the test guide for airline 
workers' certification (notification by the Ministry of Land, Infrastructure and Transport).  
 
 
  WT/TPR/M/414/Add.1  
 
- 69 - 
 
  COSTA RICA – ADDIT IONAL QUESTIONS  
Page 138, paragraph 3.223  
3,223. All bidders who want to participate in the PPS tenders must register in its registry. For 
construction contracts under KRW 10 billion, a system for selecting eligible candidates is used. Offers 
"abnormally l ow or dumped" are rejected.305The most advantageous bid award method is used for 
contracts exceeding KRW 10 billion: a pre -qualification evaluation is carried out to designate the 
winner, followed by a general evaluation of the bid price, performance and s ocial responsibility . A 
pre-qualification system is also applied to determine which bidders meet the necessary conditions. 
Contracting entities can choose whether or not to use the pre -qualification system, but its use is 
mandatory for construction projec ts subject to the most advantageous bid award method. A 
pre-qualification list based on objective criteria is kept for each construction project.306 The results 
of the tender, including the bids, the pre -qualification evaluation and the award of the contracts, can 
be consulted on the KONEPS website (http://www.g2b.go.kr). As stated by the authorities at the 
time of the previous review, there are no spe cial prequalification requirements or restrictions on 
foreign suppliers.  
Offers are evaluated based on estimated prices prepared by the PPS. Those that exceed these 
estimates are excluded, as well as those below a certain level.  
 
Question 1:  
Could Korea pl ease provide more information on the criteria used and the methodology applied to 
define the "estimated prices" that are prepared by the PPS, to identify "abnormally low or dumped" 
bids in construction works contracts?  
 
[Answer]  
In accordance with ENFORCEMENT DECREE OF THE ACT ON CONTRACTS TO WHICH THE STATE IS 
A PARTY, the term "estimated price" means a price calculated before determining a budget price so 
as to take the price as a criterion including for deciding a method to det ermine a winning bidder and 
deciding whether a contract shall undergo an international tendering procedure in  making a contract 
for the procurement of goods, construction works, or services, etc.;  
For a construction works contract below KRW10billion, an "e ligibility screening system" is used. The 
best value award method (a pre -qualification system is mandatorily  used) is used for a construction 
contract exceeding KRW10billion to determine a successful bidder. Hence, with these screening 
systems, "abnormally  low or dumped" bids are rejected.  
 
Page 141, paragraph 3.231  
3,231. According to the available information, centralized procurement has proven beneficial in 
Korea to increase the transparency and efficiency of public procurement through the establishment 
of an electronic procurement system, mainly run by the PPS, with the possibility for various procuring 
entities to do so. use. However, it seems that there are doubts about the purchase price through 
the PPS and the level of commissions that the contractin g entities pay to the PPS.321 According to 
an evaluation of the PPS contracting system carried out by the OECD in 2015, the KONEPS 
contributes significantly to the efficiency and integrity of public procurement in Korea.322 According 
to the OECD's Governme nt at a Glance 2019 report, KONEPS offers the highest connectivity with 
external databases, as it is interconnected with more than 200.323 So far, the KONEPS has been 
exported to seven countries, including Viet Nam and Costa Rica. Between 2021 and 2023, th e PPS 
would have to rebuild the current KONEPS to become Inno -KONEPS, based on digital technologies 
(for example, cloud computing, big data and artificial intelligence), to reduce the overlap of 
operations and the waste of public funds, as well as to impro ve public access to procurement 
information by integrating the respective local government contracting systems into Inno -KONEPS.  
 
Question 2  
Could Korea please provide more information on the doubts that have been raised about the 
purchase price through th e PPS and the level of commissions that the contracting entities pay to the 
PPS? 
 
[Answer]  
PPS does only charge commissions to public user entities, not suppliers. And there is no link between 
purchasing prices and commissions.  
 
  WT/TPR/M/414/Add.1  
 
- 70 - 
 
  DOMINICAN REPUBLIC  
1 ENTO RNO ECONÓMICO  
1.2 Evolución económica reciente  
1.2.4 Políticas estructurales  
1.2.4.1 Reforma fiscal  
Pág. 25  
Párrafo1.12. "Durante el período examinado se emprendió una reforma fiscal en consonancia con 
los objetivos de política, en particular para hacer fr ente a los efectos de la pandemia de COVID -19 
en la economía (recuadro 1.1, sección 3.3.1). La reforma de 2016 introdujo incentivos fiscales para 
revitalizar la economía (por ejemplo, en actividades de investigación y desarrollo, sectores que 
constituyen n uevos motores de crecimiento, tecnologías básicas, contenidos culturales -como 
películas y obras televisivas - e inversiones de capital de riesgo); aumentó las bonificaciones fiscales 
para los hogares de ingresos bajos y medianos, las pymes, los trabajadore s autónomos y los 
pescadores/agricultores; mejoró la equidad fiscal e introdujo regímenes que eliminan los 
gravámenes o eximen de ellos en determinadas esferas (por ejemplo, impuesto sobre las plusvalías, 
base impositiva extraterritorial y paquetes de medi das fiscales para aumentar los ingresos de los 
hogares); y racionalizó el sistema fiscal en el marco de la revisión del Código Fiscal de 2016. En 
2017 se adoptaron las siguientes medidas: revisión de los programas fiscales para promover la 
creación de empl eo de calidad (por ejemplo, mediante una bonificación fiscal para las empresas que 
crean empleo); aumento de los impuestos aplicados a personas con ingresos elevados y reducción 
de impuestos para las personas de ingresos medios, los trabajadores y los pequ eños empresarios; 
aumento del tipo del impuesto sobre sociedades a su nivel anterior para las grandes empresas que 
disponen de fondos suficientes; y mayor racionalización del régimen fiscal. En la reforma fiscal de 
2018 se rediseño y amplió el crédito del impuesto sobre la renta; se racionalizaron los gravámenes 
fiscales sobre la propiedad inmobiliaria; se ofrecieron mayores incentivos fiscales a las empresas 
que crean puestos de trabajo en determinadas zonas y se reforzaron las ayudas fiscales a las 
empres as que comiencen a operar en regiones en riesgo (exención del impuesto sobre las sociedades 
y el impuesto sobre la renta de las personas físicas); y se siguió racionalizando el régimen fiscal 
general (ajustando, por ejemplo, los impuestos aplicados a la hu lla bituminosa y el gas natural 
licuado (GNL) en función de sus costos ambientales). Los elementos fundamentales de la reforma 
fiscal de 2019 fueron la introducción de ayudas fiscales para contribuir al dinamismo de la economía 
(por ejemplo, instalaciones para la mejora de la producción, red de seguridad pública, exención del 
impuesto sobre el consumo individual que grava los vehículos de pasajeros, gastos de investigación 
y desarrollo de los sectores que constituyen nuevos motores de crecimiento y tecnolog ías fuente); 
la mejora del régimen fiscal para apoyar a la clase trabajadora y media y las pymes y para respaldar 
la creación de empleo (empresas que contratan a trabajadores locales); el aumento de la equidad 
fiscal y de la transparencia de las fuentes de  ingresos fiscales; y la mayor racionalización del régimen 
fiscal (por ejemplo, sanciones y multas administrativas por incumplimiento del deber de declarar las 
cuentas financieras en el extranjero y verificación del recargo tributario aplicado a las accion es de 
las grandes compañías por acciones)."  
 
1. ¿Cuáles son los nuevos regímenes introducidos para mejorar la equidad 
fiscal?  
Question 1. What are the new regimes introduced to improve tax equity?  
 
[Answer]  
The income tax rate on annual earnings exceeding KRW 1billion rose to the 45% by newly 
establishing a tax base section. In addition, the simplified tax system for value -added tax was 
reformed to ease the burden of the self -employed. By raising the threshol d of simplified taxation, 
the number of simplified taxable person was greatly increased, and the threshold for payment 
exemption was also raised to KRW 48 million. Lastly, in order to support low -income households, 
expansion of Earned Income Tax Credit(EIT C) in under consideration.  
 
2. ¿En cuáles esferas se eliminó el gravamen?  
Question 2. In which areas was the levy eliminated?  
 
[Answer]  
Although it differs for each system, tax support has been strengthened for the areas except for the 
overpopulated constrain t district (Seoul, Incheon and other cities in Gyeonggi) according to the 
Seoul Metropolitan Area Readjustment Planning Act.  
 WT/TPR/M/414/Add.1  
 
- 71 - 
 
  3. ¿Qué impacto tuvieron estas medidas en la reducción de la evasión fiscal?  
Question 3. What impact did these measures have on reduc ing tax evasion?  
 
[Answer]  
Tax revenue was increased by strengthening institutional mechanisms to prevent offshore tax 
evasion, taxing evasion income, and reorganizing unnecessary non -taxation reduction and 
exemption systems.  
 
4. ¿Cómo impactaron estas medidas en la clase media y pobre?  
Question 4. How did these measures impact the poor and middle class?  
 
[Answer]  
The tax rate was raised mainly for high -income earners, such as the establishment of a tax base 
section of income tax rate on annual earnings exceeding KRW 1 billion and alignment of non -taxation 
and reduction on high -income household. The resources from this tax rate increase are being used 
to expand financial support for the middle class and the vulnerable, resulting in an effect of improving 
comprehensive income redistribution.  
* Trend of Gini coefficient improvement rate in Korea (%): ('14)8.6 ('15)11.1 ('16)11.7 ('17)12.8 
('18)14.2 ('19)16.1  
 
Pág. 26  
Párrafo1.13. "Además de las medidas fiscales adoptadas en el primer semestre de 2020 (recuad ro 
1.1, cuadro 1.1 y sección 3.3.1.1.2), en julio de 2020 se aprobaron otras medidas de reforma fiscal 
encaminadas a reducir la desigualdad y promover la recuperación económica de la pandemia de 
COVID -19, entre las que cabe mencionar la introducción de un nuevo tramo para el tipo máximo del 
impuesto sobre la renta y de desgravaciones fiscales para las pequeñas empresas. Estas reformas 
se llevaron a cabo mediante la aprobación de modificaciones de la legislación fiscal el 30 de 
noviembre de 2020; los decreto s y reglamentos de aplicación correspondientes se promulgaron y 
entraron en vigor en febrero y marzo de 2021. En cuanto a la imposición personal, se introdujo un 
nuevo tramo para el tipo máximo del impuesto sobre la renta para los ingresos anuales superior es 
a KRW 1.000 millones; el nuevo tipo impositivo es del 45% (frente al anterior tipo del 42% aplicado 
a los ingresos anuales superiores a KRW 500 millones). Este nuevo tramo empezó a aplicarse el 
29 de diciembre de 2020 (revisión del artículo 55 1) de la Ley del Impuesto sobre la Renta). En lo 
que afecta a las empresas, se amplió el procedimiento simplificado de presentación de las 
declaraciones tributarias y se eximió del IVA a las empresas cuyas ventas anuales sean inferiores a 
KRW 48 millones. Las modif icaciones relacionadas con el IVA entraron en vigor el 22 de diciembre 
de 2020 (modificación del artículo 69 1)). El impuesto sobre las plusvalías, que a partir del 1 de  enero 
de 2023 gravará con un tipo del 20% los beneficios derivados de transacciones de  acciones cotizadas 
en bolsa superiores a KRW 50 millones, fue modificado el 29 de diciembre de 2020."  
 
5. ¿Cuál ha sido el impacto del aumento del ITBIS en 3 puntos porcentuales?  
Question 5. What has been the impact of increasing the ITBIS by 3 percentage p oints?  
 
[Answer]  
Considering the growing difficulties of the low -income class due to the continued COVID -19, the top 
income tax bracket for personal income was raised as part of strengthening social solidarity by 
overcoming the COVID -19 crisis. The tax bur den has been limited to super -high income earners who 
have relatively little impact from COVID -19 and can afford to pay taxes.  
 
6. ¿Cuál es la posición de la sociedad y el sector privado acerca de este 
aumento?  
Question 6. What is the position of society and the private sector regarding this increase?  
 
[Answer]  
There were both pros and cons on the increase in the top income tax bracket for personal income, 
but the revision to the income tax law, including an increase in the income tax rate, was passed 
through the National Assembly discussion process.  
 
7. ¿Cuál fue el impacto de estas nuevas medidas en las recaudaciones, 
especialmente en el impuesto sobre la renta?  
Question 7. What was the impact of these new measures on collections, especially income tax?  
 WT/TPR/M/414/Add.1  
 
- 72 - 
 
  [Answer]  
It is estimated that KRW 0.9 trillion in tax revenue will increase due to the increase in the top income 
tax bracket for personal income.  
 
1.2.4.4 Gobernanza empresarial y costo del capital  
Pág. 27  
Párrafo1.17. "La buena gobernanza empresarial co ntribuye al desarrollo económico sostenible, al 
potenciar los resultados de las empresas y darles mayor acceso al capital exterior.46 Algunos de los 
cambios que tuvieron lugar en este ámbito durante el período examinado fueron la eliminación del 
"sistema d e votación en la sombra". (2018), la creación de un sistema electrónico de registro de 
valores (2019), la revisión de reglamentación de la Comisión de Servicios Financieros (FSC) relativa 
al balance consolido de las empresas que cotizan en la Bolsa de Valo res de Corea (KRX) y la 
publicación de las directrices de la KRX sobre divulgación de información relativa a la gestión 
empresarial (2019). Dado que el brote de COVID -19 impediría a muchas empresas (en especial, 
aquellas que tienen filiales en China u oper an en zonas sometidas a un control especial de 
enfermedades infecciosas) cumplir los plazos de presentación de informes financieros, las 
autoridades anunciaron que quedarían exentas de las sanciones administrativas previstas aquellas 
empresas que no pudier an presentar en plazo sus estados financieros o informes de empresa a 
causa de cuestiones relacionadas con la pandemia. El plazo se prorrogó hasta el 31 de agosto de 
2020. Pese a los esfuerzos por reformar las prácticas empresariales de los grandes conglom erados, 
su posición dominante sigue reflejándose en la gobernanza empresarial y contribuye al llamado 
"descuento coreano" (10% -40% menos en 2010), es decir, la cantidad que los inversores restan al 
valor de las acciones coreanas debido a que consideran que  el riesgo de invertir en Corea es más 
alto que en otros países. Cuando se realizó el examen anterior, las autoridades señalaron que esta 
relación de causalidad  era dudosa. Según un estudio de 2019, la relación precio -beneficio de las 
acciones coreanas es,  por término medio, considerablemente inferior (30%) a la de las acciones de 
los mercados desarrollados y emergentes, así como a la de las de la región de Asia y el Pacífico; 
este fenómeno generalizado afecta a la mayor parte de las acciones coreanas.49 El  descuento afecta 
al parecer tanto a los grandes conglomerados como a los conglomerados de menor tamaño. Se ha 
informado de que el descuento de los grandes conglomerados es considerablemente inferior al de 
otras empresas coreanas, lo que podría deberse al hecho de que su reputación y visibilidad 
internacionales inducen a los inversores a considerarlas de un modo distinto a las empresas coreanas 
menos conocidas."  
 
8. ¿Qué medidas exactas han tomado para promover la competencia de 
mercado?  
Question 8. What exact steps have you taken to promote market competition?  
 
[Answer]  
The KFTC actively corrects abuse of dominance, cartels, and anti -comeptitive M&As that hinder 
competition in the market, and cooperates with other ministries to improve regulations of othe r 
ministries that restrict competition .  
 
9. ¿Cuáles son los sectores priorizados en estas políticas?  
Question 9. What are the priority sectors in these policies?  
 
[Answer]  
The KFTC prioritizes law enforcement and system improvement to create a market environ ment that 
promotes competition in new industries, new technologies, and areas closely related to people's lives 
such as health and safety.  
 
2.5 Acuerdos y arreglos comerciales  
2.5.2 Acuerdos regionales y preferenciales  
2.5.2.3 ACR con el Reino Unido  
Pág. 4 8 
Párrafo2.58. "Anteriormente, la relación comercial preferencial del Reino Unido con Corea se regía 
por el ACR entre los dos países. El ACR bilateral entre Corea y el Reino Unido establece una zona de 
libre comercio para el comercio de mercancías y de ser vicios, así como compromisos en materia de 
obstáculos técnicos al comercio, medidas sanitarias y fitosanitarias, aduanas y facilitación del 
comercio, protección de los derechos de propiedad intelectual, contratación pública, competencia y 
transparencia, co mercio y desarrollo sostenible, solución de diferencias y mecanismos de mediación, 
entre otras cosas."  WT/TPR/M/414/Add.1  
 
- 73 - 
 
  10. ¿Cómo es el funcionamiento de las zonas libres de comercio para el 
comercio de servicios?  
Question 10. How does the free trade zones for trade in services work?  
 
[Answer]  
There are two types of liberalization modes for opening up the service market. If the mode of 
liberalization is positive, the Parties prepare a list of specific commitments. If the mode of 
liberalization is negative, the Parties pr epare a list of reservation.  
 
2.6 Inversión extranjera directa  
2.6.3 Incentivos a la IED  
2.6.3.2 Donaciones en efectivo  
Pág. 55  
Párrafo2.82. "Según el KOTRA , las donaciones en efectivo a empresas con inversión extranjera 
fueron objeto de revisión en 2019. El Gobierno amplió el derecho a recibir donaciones en efectivo 
para abarcar a las industrias de alta tecnología, de conformidad con la Ley de Desarrollo Ind ustrial 
(artículo 5) y el Aviso Público Nº 2019 -121 del MOTIE, publicado el 26 de julio de 2019 (que entró 
en vigor en 2020)."  
 
11. ¿Cuánto representaron estas donaciones en el PIB en 2019 y 2020?  
Question 11. How much did these donations represent in GDP in 2019 and 2020?  
 
[Answer]  
Cash grants only represent insignificant portion compared to GDP, thus no substantial number can 
be cal culated.  
* (in reality) 0.00031% of GDP in 2019, 0.00142% in 2020.(based on executed cash grants)  
 
3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
Pág. 59  
Párrafo  3.3. "Corea se reservó la opción de restringir o supervisar determinadas exportaciones para 
asegurar un abastecimiento interno adecuado; en respuesta a las necesidades de la pandemia de 
COVID -19, impuso una prohibición temporal a la exportación de determinados productos sanitarios. 
Por otra parte, se han mantenido las subvenciones directas a la e xportación para reducir los costos 
de comercialización de ciertos productos agrícolas. Mediante un sistema de devolución se han 
seguido reintegrando los impuestos en frontera sobre las materias primas utilizadas en las 
exportaciones, al tiempo que se reemb olsan los impuestos indirectos internos aplicados a las 
exportaciones. A partir de 2019 se suprimió la exención del impuesto sobre las sociedades aplicable 
a las empresas de inversión extranjera situadas en zonas francas. Los exportadores siguen 
beneficián dose de la financiación, los seguros y las garantías proporcionados por las instituciones 
públicas."  
 
12. ¿Cuánto representan estos productos del total exportado en 2020 versus años 
anteriores?  
How much do these products represent of the total exported in 2020 versus previous years?  
 
[Answer]  
Among the health products regulated by the MFDS, export restriction due to COVID -19 was imposed 
only on filtering respirators and surgical masks. For reference, only in 2020 did it become mandatory 
to report export volumes of quasi -drugs. Export data prior to 2020 is therefore not available. 
(Exports of filtering respirators and surgical masks recorded 288 million dollars in 2020.)  
In 2020, an export control measure was put in place for filtering respir ators and surgical masks. On 
February 6, 2020, export of filtering respirators and surgical masks was restricted to 10 per cent of 
the daily production volume, and later on March 6, 2020, export of filtering respirators and surgical 
masks was practically b anned. Subsequently, export restrictions began to be gradually relaxed. 
Finally, the filtering respirators and surgical masks export control was lifted on October 23, 2020.  
 
3.2 Medidas que afectan directamente a las exportaciones  
3.2.5 Financiación, segu ro y garantías de las exportaciones  
Pág. 90  
Párrafo3.90. "La Corporación de Seguros de Comercio de Corea (K -SURE, antes conocida como 
KEIC), entidad estatal dependiente del MOTIE, sigue proporcionando seguros del crédito a la 
exportación para cubrir el rie sgo de impago (Ley de Seguros de Comercio a la Exportación de 1968), WT/TPR/M/414/Add.1  
 
- 74 - 
 
  y en el período objeto de examen prestó apoyo especialmente a las pymes. La K -SURE promueve 
las exportaciones asegurando contra los riesgos para los que no pueden obtenerse seguros privad os 
y, según las autoridades, trata de fomentar la igualdad de condiciones para el apoyo oficial, a fin de 
fomentar la competencia entre los exportadores sobre la base de la calidad y el precio de los bienes 
y servicios exportados. La K -SURE proporciona seg uros de exportación para cubrir las pérdidas 
derivadas de riesgos políticos y comerciales y pólizas de seguro de facturación total, con un 
descuento del 50% en el caso de ciertas pólizas. Sigue ofreciendo 13 tipos diferentes de seguros 
para la exportación y 2 tipos de garantías, pero la mayor parte de los seguros siguen tomando la 
forma de seguros de corto plazo. La cobertura máxima del seguro de exportación a medio y largo 
plazo es, en principio, del 85% del valor del contrato, de conformidad con las Direc trices de la OCDE 
relativas a los créditos a la exportación concedidos con apoyo oficial. Durante el período objeto de 
examen, la K -SURE llevó a cabo, entre otras, las siguientes actividades: introdujo un seguro de red 
de seguridad de las exportaciones (20 16), el seguro Power Plus+ (2017), y la garantía del crédito a 
la exportación (previo a la expedición) y la garantía del crédito a la exportación (negociación) 
basadas en un contrato (2019); abrió nuevas oficinas de representación (en Ciudad de México y 
Dubai (2016), Chengdu (2018), y Hanoi (2019)); alcanzó KRW 47,9 billones (2017) y 
KRW 52 billones (2018) en forma de apoyo a las pymes; abrió un centro de consultoría (Trade Sure 
Consulting Center) para apoyar las exportaciones de las pymes (2018); y abrió u n centro de 
investigación en línea K -SURE que ofrece información sobre empresas, industrias y países 
extranjeros (2018). Para hacer frente a las previsiones de una caída de las exportaciones en 2020 
debido a la pandemia de COVID -19, la K -SURE se centró en reforzar la ayuda para avanzar en 
nuevos mercados e industrias innovadoras, fortalecer la competitividad de las pymes, implantar 
infraestructura de tecnología financiera y mejorar la satisfacción de los clientes. El volumen (de 
negocio) de seguros de la K -SURE descendió hasta KRW 144,8 billones y aumentó progresivamente 
hasta KRW 155,8 billones en 2019, sin alcanzar su nivel de 2014; la parte de ese volumen 
correspondiente a las pymes aumentó de manera constante, pasando del 28,3% en 2016 al 36,1% 
en 2019. El total de exportaciones aseguradas por K -SURE representaba el 21,7% (22% en 2016)de 
las exportaciones totales y el 91% (88% en 2016) de las exportaciones cubiertas por seguros a 
corto plazo."  
 
13. ¿Cuáles son los requisitos para las PYMES acceder al seguro d e crédito a la 
exportación en Corea?   
Question 13. What are the requirements for SMEs to access export credit insurance in Korea?  
 
[Answer]  
First, the SMEs should get credit assessment from K -SURE. If they do not meet K -SURE's credit 
rating standards, thei r use of export insurance is restricted.  
 
14. ¿Existe una alguna facilidad o flexibilidad especial para promover el acceso de 
las PYMES al seguro de crédito a la exportación?  
Question 14. Is there any special facility or flexibility to promote the access of SMEs to export credit 
insurance?  
 
[Answer]  
To promote the access of SMES to export credit insurance, K -SURE has been  
(1) operating exclusive products for SMEs,  
(2) putting more active promotion of the export insurance system by various ways such  as holding 
a briefing session on trade insurance system, and  
(3) providing TRADE -SURE consultation.  
 
15. ¿Cómo es financiada la figura del seguro de crédito a la exportación en Corea?  
Question 15. How is the figure of export credit insurance financed in Kore a? 
 
[Answer]  
The figure stood at 155.8 trillion KRW in 2019 and 165.1 trillion KRW in 2020.  
 WT/TPR/M/414/Add.1  
 
- 75 - 
 
  3.3 Medidas que afectan a la producción y al comercio  
3.3.1 Incentivos  
3.3.1.2.2 Incentivos extrafiscales  
3.3.1.2.2.2 Otras ayudas  
Pág. 104  
Párrafo3.131. "En virtud de la Ley de Asistencia a las Empresas Coreanas en el Extranjero en 
materia de Repatriación, de 2013 (modificada por la Ley Nº 16805, de 10 de diciembre de 2019), 
las denominadas empresas "U -Turn" disfrutan de diversos beneficios f iscales y no fiscales. El 
impuesto sobre las sociedades y el impuesto de la renta se reducen en proporción a la disminución 
de las ventas de las operaciones en el extranjero durante cinco a siete años, y la inversión en 
instalaciones y equipos se subvencio na sin especificar sectores, empresas y regiones. Las pymes 
pueden disfrutar de incentivos al empleo durante dos años. Las empresas también pueden estar 
sujetas a límites preferenciales de garantía de los fondos de garantía fiduciaria, los fondos de 
garant ía tecnológica y los fondos de garantía comercial, al tiempo que reciben subvenciones para la 
construcción de fábricas inteligentes. Con la modificación de la Ley efectuada en 2019, la ayuda se 
amplió a las empresas de servicios informáticos y de informaci ón y comunicaciones. Las empresas 
con sede fuera de las áreas metropolitanas pueden optar a reducciones en los alquileres a largo 
plazo (de 50 años) y a la autorización para ejecutar contratos privados. Con el fin de dar cabida a 
las empresas que solicitan  las calificaciones U -Turn, el KOTRA presta desde 2019 servicios de 
ventanilla única para ayudar a recibir y enviar los formularios de solicitud."  
 
16.  ¿Pueden detallar los resultados de estos incentivos?   
Question 16. Can you detail the results of these ince ntives?  
 
[Answer]  
Since companies reshore for various reasons, it is difficult to say exactly as a results of these 
incentives.  
 
3.3 Medidas que afectan a la producción y al comercio  
 
3.3.6.3 Servicio de Contratación Pública  
Pág. 138  
Párrafo3.222. "Corea ha concentrado cada vez más esfuerzos en la contratación centralizada 
(véase infra).300 Una parte importante de la contratación del Gobierno Central, los Gobiernos locales 
y las empresas públicas es llevada a cabo por el organismo central de contratación, el Servicio de 
Contratación Pública (PPS). Los organismos del Gobierno central deben recurrir al PPS para adquirir 
bienes y servicios por valor igual o superior a KRW 100 millones; el umbral para los bienes y servicios 
extranjeros sigue siendo de más de US D 200.000.301 Por debajo de ese límite, cada organismo 
oficial puede llevar a cabo directamente su propia contratación. Todas las demás instituciones 
públicas, incluidas las empresas estatales, pueden contratar bienes y servicios directamente o a 
través de l PPS. Los Gobiernos locales están autorizados a contratar bienes y servicios de forma 
independiente y a realizar contrataciones en el extranjero; sin embargo, en el caso de obras de 
construcción cuyo valor estimado supera los KRW 10.000 millones, el PPS r evisa la base del cálculo 
de costos del presupuesto de construcción antes de que se inicie el procedimiento de licitación, a fin 
de evitar posibles despilfarros del presupuesto. Las funciones principales del PPS siguen siendo las 
siguientes: suministrar bi enes y servicios para uso oficial; contratar y gestionar las obras públicas; 
mantener reservas de 15 materias primas esenciales y materiales de construcción para garantizar 
la estabilidad de los precios y el abastecimiento; coordinar y dirigir la auditoría  de la gestión de los 
bienes públicos muebles e inmuebles; y administrar el Sistema Electrónico de Contratación en Línea 
de Corea (KONEPS)."  
 
17. ¿Está considerando el gobierno de Corea utilizar un sistema distinto al actual 
(licitación internacional) para el suministro de metales básicos (aluminio, 
cobre, plomo, cinc, estaño y níquel)?  
Question 17. Is the Korean government considering using a different system than the current one 
(international bidding) for the supply of base metals ( aluminium , copper, lead, zinc, tin and nickel)?  
 
[Answer]  
PPS is not considering the use of the different system to stockpile the mentioned base metals  
 
 WT/TPR/M/414/Add.1  
 
- 76 - 
 
  DOMINICAN REPUBLIC  – REVISED ANSWERS  
2.6 Inversión extranjera directa  
2.6.3 Incentivos a la IED  
2.6.3.2 Donaciones en efectivo  
Pág. 55  
Párrafo2.82. "Según el KOTRA, las donaciones en efectivo a empresas con inversión extranjera 
fueron objeto de revisión en 2019. El Gobierno amplió el derecho a recibir donaciones en efectivo 
para abarcar a las industrias de a lta tecnología, de conformidad con la Ley de Desarrollo Industrial 
(artículo 5) y el Aviso Público Nº 2019 -121 del MOTIE, publicado el 26 de julio de 2019 (que entró 
en vigor en 2020)."  
 
11. ¿Cuánto representaron estas donaciones en el PIB en 2019 y 2020?  
 
Answer  
The amount of total cash grants for foreign -invested firms represent for insignificant portion of GDP, 
only about 0.00031% in 2019 and 0.00142% in 2020.  
 
3.3 Medidas que afectan a la producción y al comercio  
3.3.1 Incentivos  
3.3.1.2.2 Incentivos extrafis cales  
3.3.1.2.2.2 Otras ayudas  
Pág. 104  
Párrafo3.131. "En virtud de la Ley de Asistencia a las Empresas Coreanas en el Extranjero en 
materia de Repatriación, de 2013 (modificada por la Ley Nº 16805, de 10 de diciembre de 2019), 
las denominadas empresas "U -Turn" disfrutan de diversos beneficios fiscales y no f iscales. El 
impuesto sobre las sociedades y el impuesto de la renta se reducen en proporción a la disminución 
de las ventas de las operaciones en el extranjero durante cinco a siete años, y la inversión en 
instalaciones y equipos se subvenciona sin especif icar sectores, empresas y regiones. Las pymes 
pueden disfrutar de incentivos al empleo durante dos años. Las empresas también pueden estar 
sujetas a límites preferenciales de garantía de los fondos de garantía fiduciaria, los fondos de 
garantía tecnológica  y los fondos de garantía comercial, al tiempo que reciben subvenciones para la 
construcción de fábricas inteligentes. Con la modificación de la Ley efectuada en 2019, la ayuda se 
amplió a las empresas de servicios informáticos y de información y comunicac iones. Las empresas 
con sede fuera de las áreas metropolitanas pueden optar a reducciones en los alquileres a largo 
plazo (de 50 años) y a la autorización para ejecutar contratos privados. Con el fin de dar cabida a 
las empresas que solicitan las calificac iones U -Turn, el KOTRA presta desde 2019 servicios de 
ventanilla única para ayudar a recibir y enviar los formularios de solicitud."  
 
16. ¿Pueden detallar los resultados de estos incentivos?   
 
Answer  
Since companies reshore for various reasons such as cost -efficiency factors, local market factors or 
strategic necessity of the enterprise, and since the incentive are not as critical a factor for firms to 
reshore, it is difficult to say exact results of the incentives. However, by providing such incentives, 
we support reshoring firms to re -locate in Korea successfully, and thus activate local economies by 
boosting employment, for instance.  
 
  WT/TPR/M/414/Add.1  
 
- 77 - 
 
  ECUADOR  
In accordance with page 28, paragraph 1.18, in relation to countervailing subsidies to SMEs  
 
1. Could Korea tell us what these countervailing subsidies consist of, if they apply to all SMEs or are 
they targeting a certain group of SMEs?  
 
[Answer]  
Korea's Subsidies for Employment Promotion are largely divided into Subsidy for Job Creation and 
Subsidy for Employme nt Stability. The former grants subsidies to the employers who have increased 
the number of employees by hiring the unemployed among the vulnerable groups, and the latter is 
for the employers who have retained employment by working hour reduction, or conve rted non -
regular workers to regular status. These incentives differ in the payment period or amount by the 
size of business, but do not target a certain group of SMEs.  
 
2. What requirements must they meet to benefit from this grant? Are they companies that  sell 
products for the local or export market?  
 
[Answer]  
Requirements for these subsidies include the aforementioned eligibilities such as new employment 
of the vulnerable groups, employment retention, and converting non -regular workers into regular 
ones; irrespective of selling products for the local or export market.  
 
3. How is this compensation linked to the labor market policy referred to in the Secretary's report?  
 
[Answer]  
Subsidies for Employment Promotion are fundamental programs of Active Labor Mar ket Policies to 
reduce labor market duality. These programs aim to improve labor market outcomes including 
promoting the employment of the vulnerable, operating flexible working arrangements, and 
enhancing employment stability  
 
4. Could Korea inform us wha t measures are taken in favour  of companies to save this increase in 
net costs?  
 
[Answer]  
Regulations  that fall under the scope of the CICO(Cost -in, Cost -out) system are new and amended  
regulations  that impose a cost burden on companies, SMEs and private b usiness.  
In case of facing with difficulties in deregulatory actions for every regulatory action, the CICO system 
has adopted the applicability assessment of the cost management system and the cost banking 
system of central administrative agencies through  cost analysis verification. Central administrative 
agencies are mandatory to submit the total cost through CICO system to the Regulatory Reform 
Committee ( RRC) biannually and publish officially, which is evaluated in terms of government's 
performance.  
 
5. Are companies that must adopt technical regulations included in these compensations?  
 
[Answer]  
There is no compensations to the specific  company in regarding with cost offset, which is a kind of 
criteria for reviewing  regulations  required when establishing a new regulation or reinforcing existing 
regulations.  
 
6. Are there minimum compensation values or are all the costs identified in t he regulatory impact 
assessments covered?  
 
[Answer]  
There is no compensations to the specific  company in regarding with RIA, which is a tool for judging 
for regulatory validity  by using objective and scientific methods to predict and analyse  the diverse 
effects of regulation  on peoples' daily lives and on society, economy and government administration .  
 
According to page 70, paragraph 3.34, the alternative duties would be non - ad valorem  . As can be 
seen in Table A3.2, an  ad valorem  or specific  customs  duty is established  for the products indicated 
there.  In relation to what was stated by the Secretariat: "Korea applies the highest component WT/TPR/M/414/Add.1  
 
- 78 - 
 
  (agricultural products) or the lowest component (the other items), that is, an  ad valorem duty  or a 
specific duty, an d consequently the alternative  ad valorem rate.  constitutes the minimum or 
maximum rate of the import duty ":  
 
7. Could Korea inform us how, between the  ad valorem  and specific  component  , the charge  is 
defined  for agricultural products and if there is any  specific variable that helps with that definition?  
 
[Answer]  
In case of alternative duties on some agricultural products, "whichever is the greater/higher" rule is 
applied.  
 
8. Is the value of the imported merchandise considered for the same definition?  
 
[Answer]  
In case of imported merchandise under hs chapters 37 and 38 which includes cinematographic film, 
it is slightly different from other alternate duties applied to agricultural products. The taxpayer can 
choose whatever they prefer, but most of them adopt "lower rule" since the Korean authorities 
indicated that no specific regulations of application of alternate duties existed for imported 
merchandise.  
 
9. In relation to AVEs, what actions could Korea implement to prevent the consolidated ceilings of  
the product in question from being exceeded, by choosing one of the components of the alternative 
tariff that would be applied to the prices of imported agricultural goods?  
 
[Answer]  
Korea applies ad -valorem tariffs which are allowed under WTO agreements.  
 
Footnote 39 indicates that "... specific regulations on the application of the upper or lower component 
of alternative duties for manufactured products remain to be developed; therefore, taxpayers are 
free to choose the component to apply"  
 
10. In the ca se of agricultural goods: Could we proceed in the same way?  
 
[Answer]  
No. In case of alternative duties on some agricultural products, "whichever is the greater/higher" 
rule is applied  
 
11. In case of a negative answer: What would be the reasons for the taxpayer not being able to use 
that alternative?  
 
[Answer]  
The application of the tax rate is stipulated in the Customs Act.  
 
Pursuant to page 75, paragraph 3.48: "Imported inputs for certain uses may be exempted from 
customs duties under the 'based on use ' rate regime (Article 83 of the Customs Law)" . 
 
12. Could Korea inform us how the products that would benefit from the autonomous tariff quotas 
are defined and if it is established under an MFN regime, that is, regardless of the origin of the 
goods?  
 
[Ans wer]  
Usage tariff allows a lower tax rate to be applied in consideration of the purpose of the usage of 
goods in accordance with Article 83 of the Customs Act. Therefore, MFN applies regardless of country 
of origin.  
 
13. Could Korea inform us what actions are taken to avoid eroding concessions granted to products 
originating in a country with which a trade agreement is maintained?  
 
[Answer]  
Since a lower tax rate than the concession rate is applied, there is no concern about concession 
erosion  WT/TPR/M/414/Add.1  
 
- 79 - 
 
  In accordance  with page 77, paragraph 3.52, regarding the mechanism for allocating quotas to State 
trading companies and what was stated by the Secretariat: "State trading companies impose 
additional price increases on various products in addition to the tariff within the quota"  
 
14. Could Korea inform us how this measure, based on price issues, would fulfill the purpose or 
principle of granting minimum access to products covered by tariff quotas?  
 
[Answer]  
For TRQ items to be imported and distributed in the domestic ma rket, essential costs including 
shipping, unloading and temporary storage are incurred. The markups mostly include those costs.  
Markups are charged based on the WTO rules and domestic regulations such as "the Grain 
Management Act" etc. The markup system i s objectively administered in accordance with these 
regulations  
 
15. Could Korea inform us to which items this price increase would correspond?  
 
[Answer]  
Korea administers its markup system for TRQ  items based on domestic regulations such as "the 
Grain Management Act" etc.  
6 items were charged with markups in 2019, namely soybeans, adzuki beans, mung beans, 
buckwheat, sesame and potatoes. Relevant information can be found in the notification of stat e 
trading enterprises(G/STR/N/18/KOR)  
 
16. Would this measure, which would affect the price of a merchandise imported under tariff quotas, 
contemplate the principle of national treatment when referring to merchandise that is similar or 
directly competitive  with domestically produced merchandise?  
 
[Answer]  
Agricultural products, both imported through TRQ system or locally grown, incur costs during 
distribution stage as they go through steps including shipping, distribution and storage. 
Consequently, markups include essential costs involving transport, unloading and temporary storage 
of TRQ agricultural products.  
A markup system is allowed by the WTO rules and the system is objectively administered based on 
domestic regulations such as "the Grain Management Ac t". Thus, the system does not discriminate 
between imported and domestic products.  
 
Pursuant to page 80, paragraph 3.60: "... the authorities noted that since Korea continued to impose 
an in-quota tariff of 5% after tariffication, the application of a 513%  out-of-quota tariff would not 
affect that ratio. ; most rice imports are made within the quota ":  
 
17. Could Korea inform us if this tariff corresponds to an additional value to the intra -quota duty, as 
stated by the Secretariat?  
 
[Answer]  
From 1995 to 2014 before rice tariffication, Korea imposed a 5% of tariff on the MMA quantity. After 
tariffication in 2015, Korea imposes an in -quota tariff of 5% and thus there is no additional value to 
the intra -quota duty  
The in -quota tariff of 5% for rice and out -of-quota of 513% were newly established in 2015 through 
the WTO process.  
 
18. If so, what would that item correspond to?  
 
[Answer]  
Korea has imposed an in -quota tariff of 5% and out -of-quota tariff of 513% for rice and rice -related 
items composed of 16 tar iff lines  
For information, the MMA tariff of 5% during the period of 1995 to 2014 was same as the in -quota 
tariff of 5% today. There is no additional value to the intra -quota duty  
 
19. Would the measure be different from the increase in additional prices in addition to the in -quota 
tariff, cited by the Secretariat regarding the administration of the quota by state trading companies 
(page 77, paragraph 3.52)?  
 WT/TPR/M/414/Add.1  
 
- 80 - 
 
  [Answer]  
Korea's tariff by item was established through consultations between WTO members and stipulated 
in the WTO schedule. On the other hand, imposing markups is authorized in writing by the WTO and 
managed transparently under the relevant domestic regulations. Thus, markups include shipping 
and storage costs of items, subject to dual tariff pur suant to WTO rules, for their distribution in the 
domestic market. There is no additional value to the intra -quota duty  
 
Pursuant to page 93, paragraph 3.96, regarding the inflation -linked tax rates for takju and beer 
marketed for sale or declared for impo rt after March 1, 2021 are set using a specific formula [base 
rate as of December 31 of the previous year × (1 + rate of increase of the consumer prices of the 
previous year announced by the Commissioner of Statistics Korea)]:  
 
20. Could Korea inform us if  this rate of increase excludes currency fluctuation from the calculation 
for imported products?  
 
[Answer]  
The rate of increase does not directly reflect currency fluctuation.  
 
21. How is the tax assessment carried out for that case?  
 
[Answer]  
Pursuant to the answer of 30 -20, the case does not exist.  
 
In accordance with page 116, paragraph 3.165, in relation to the three categories of MRLs contained 
in the Korean Food Code:  
 
22. Could Korea inform us if these categories refer to MRLs established by relevant  international 
organizations, such as  FAO's  Codex Alimentarius  , for example?  
 
[Answer]  
Korea establishes MRLs based on data submitted by applicants and in the process, international 
standards such as Codex Alimentarius are considered.  
 
23. From which coun tries are the residue data generally taken to set tolerances, as described in 
category "ii) import tolerances based on third country residue data"?  
 
[Answer]  
Import tolerances are established based on the submitted data of pesticides, which is approved for 
use in the exporting country. The direct quote of "ii) import tolerances based on third country residue 
data" means residue data from tests conducted in countries in which the relevant pesticide is legally 
used.  
 
24. When an MRL is set, is the re an implementation period for trading partners that must comply 
with the measure?  
 
[Answer]  
Changes in MRLs  are notified to WTO member states in advance of implementation, and generally a 
60-day period is given to trading partners for comments, inquiry and compliance.  
 
25. Countries that could be affected by these limits, are they considered in the process of e stablishing 
MRLs?  
 
[Answer]  
Korea establishes MRLs based on data submitted by applicants. If the MRLs need to be adjusted in 
order to minimize possible trade concerns, trading partners may file an application for import 
tolerance and have the MRLs re -evalu ated. 
 
  WT/TPR/M/414/Add.1  
 
- 81 - 
 
  EUROPEAN UNION  
WT/TPR/G/414 – Government report  
 
3 ECONOMIC POLICY  
3.3 Sectoral Policies  
3.3.1 Agriculture and Fisheries: Implementation of the Agreement on Agriculture and 
Systemic Management of Fisheries Resources  
Paragraph 3.7, page 6:  The report describes the "New Direct Payment Program", revising the 
existing direct payment system includ ing the "Rice Income Compensation Scheme." The programme 
separates qualifications for direct payment from the production or prices of agricultural products, 
removing possible distortion in the market and trade. The new programme also contributes to 
sustain ability and multifunctionality  of agriculture - such as the conservation of the environment and 
rural landscape - as farmers who receive direct payments are required to comply with more stringent 
obligations concerning the environment, safety, and community . 
 
EU question 1:  Could Korea provide details of these more stringent criteria concerning environment, 
safety, and community?  
 
ANSWER : 
The New Direct Payment Program has five criteria consisting of 17 requirements, and some 
requirements are as below;  
a. Environmental performance: water quality managements, prevent nutrient runoff  
b. Ecosystem protection: landscape and biodiversity conservation, pest management  
c. Community activities: support rural community activities, farm waste management  
d. Food safety: safe use of pesticides and harmful substances  
e. Institutional requirements: farm record keeping, complete compliance training  
 
Producers who fail to comply will be given payment with 10% reduction by each compliance.  
 
3.3.2 Manufacturing: Becoming a Strong Industrial Powerhouse  
Paragraph 3.15, page 7:  The report mentions that " to reduce pollutants produced at manufacturing 
sites, the Korean Government introduced a total of 98 clean factories and designated around 
50 products for remanufacturing by 2020". The report also refers to the plan regarding "Visions and 
Strategies for Industrial Transformation to Achieve Carbon Neutrality by 2050."  
 
EU question 2 : Could Korea be more specific about the role of the Korean Government in 
"introducing" clean factories, th e way the chosen products were designated and what exactly is 
meant by "remanufacturing"? Could Korea provide more information on the main measures of 
"Visions and Strategies for Industrial Transformation to Achieve Carbon Neutrality by 2050."?  
 
ANSWER : 
The role of the Korean Government in "introducing" clean factories operates supporting programs 
for process analyses and R&Ds to apply Cleaner Production to manufacturing company.  
 
Remanufacturing refers to industrial activities in which products are recovered  after use and return 
them to their original performance or higher performance through processes such as disassembly, 
washing, inspection, repair, adjustment, and reassembly. Products (or parts) for remanufacturing 
are designated under the consult ation with the Ministry of Trade, Industry and Energy and the 
Ministry of Environment in consideration of environmental and economic performance.  
 
3.3.3 Energy: Achieving Sustainable Growth and Enhancing Quality of Life through Energy 
Transition  
Paragraph  3.19, page 7 -8: The report mentions the "5th Master Plan for New and Renewable 
Energy".  
 
EU question 3:  Could Korea provide the references of the original document, as well as an English 
version, if available?  
 
ANSWER : 
The original text (Korean version)  can be shared at any time, and the English version will be shared 
later when it is prepared.  WT/TPR/M/414/Add.1  
 
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  Paragraph 3.21, page 8:  In October 2020, Korea pledged to achieve carbon neutrality by 2050 and 
announced the 2050 Carbon Neutral Strategy in December 2020.  
 
EU question 4 : Could Korea provide information on how it plans to advance this objective and what 
impact this policy woul d have on its trade policy?  
 
ANSWER : 
A detailed carbon -neutral action plan by 2050 has not been decided, so there is a limit to answering 
the specific impact on trade policy.  
However, it is true that the need to re -establish the existing trade paradigm cen tered on quantitative 
expansion is growing.  
The policy direction for so -called green trade, which requires a balance between the value of the 
environment and the growth of trade scale, is expected to increase.  
In particular, carbon neutrality can become a new regulation for small and medium -sized enterprises 
(SMEs) with relatively limited financial resources or information.  
Therefore, in preparation for the implementation of the carbon -neutral goal, the main goal of future 
trade policy is to enhance the cap ability of exporting SMEs and SMEs from the product design stage 
to comply with procedures to achieve the carbon -neutral goal and use it as an opportunity to expand 
their entry into the global market.  
 
3.3.4 Services: Building the Foundation for Trade in S ervices  
Paragraph 3.23, page 8 : However, unlike trade in goods, it is difficult to clearly identify the status 
of exports and imports in services, as these do not go through customs procedures. The Bank of 
Korea has been announcing the volume of trade in services in the form of balance of payments 
(service balance) based on foreign exchange transaction data collected from foreign exchange 
banks. However, there is no clear distinction between different types of businesses and sectors, 
creating difficulties for analysing relevant data and establishing trade policies. To gain a clear and 
detailed understanding of the exact export volumes, trends, and major export destinations of 
emerging service businesses, Korea has started developing statistics on trade in s ervices and is now 
cooperating with relevant government agencies and organizations.  
 
EU question 5 : Korea's efforts with developing new methods for understanding trade in services 
statistics seems to address an issue of great interest to many Members. Could Korea provide some 
examples of the solutions identified so far?  
 
ANSWER : 
Discussion is undergoing to improve trade in service statistics with related agencies, but nothing has 
been specified so far.  
 
4 TRADE AND INVESTMENT POLICY  
4.1 Multilateral Trade Cooperation  
4.1.2 Cooperation through Multilateral Fora including the APEC  
Paragraphs 4.6, page 9; paragraph 4.20, page 10; and Secretariat report paragraphs 4.7, page 139 
and paragraph 4.279, page 187 : Korea currently applies a general prohibition of all alcohol sales 
through the internet with two exceptions applying to domestic products. Sales of Korean traditional 
liquor are allowed through online platforms run by public institutions, such as the postal service and 
those promoting expo rts. Besides, licensed restaurants may sell and deliver beer in conjunction with 
food sales.  
 
EU question 6:  Could Korea indicate if there are plans to modify ecommerce regulatory framework 
to allow the sale of all alcoholic beverages, domestic and import ed? If no plans to change, could 
Korea explain how the current ecommerce rules for alcoholic beverages fulfil GATT Article III.4?  
 
ANSWER : 
 
There are o  plans to revise regulations on telecommunications sales of alcoholic beverages this year. 
Regarding GATT Article 3.4, traditional liquor and imported liquor are not like products, and they are 
not competitive in domestic liquor market due to the differenc e of price and manufacturer.  
Related to sales through online platforms, only Korean traditional liquor is differently treated 
comparing with non -traditional liquor including both domestic and imported liquor. Like imported 
alcoholic beverages, other domest ic liquor also cannot be sold online.  WT/TPR/M/414/Add.1  
 
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  To be specific, as of 2019, the price of realeased traditional liquor is around 0.5% cheaper than the 
average price of realeased total liquor, and the traditional liquor is differentiated from imported 
liquor in the se nse that it is manufactured by special manufacturers (such as intangible cultural 
properties holders or Korean food masters).  
 
4.2 Regional and Bilateral Trade Cooperation  
4.2.2 New Southern and New Northern Policies  
Paragraphs 4.29 -31, page 12: New Sou thern and New Northern Policies.  
 
EU question 7:  Could Korea provide its assessment of the New Southern Policy in view of achieving 
mutual prosperity with ASEAN countries and India over the past few years. As for the New Northern 
Policy, could Korea provid e the envisaged timeline for finalising the agreement for services and 
investment with Russia; and if it would provide for any WTO -plus elements and provisions. Could 
Korea also explain the envisaged timeline for concluded an FTA with the Eurasian Economic  Union?  
 
ANSWER : 
Since announcing the New Southern Policy in 2017 centering  on '3P' (People, Prosperity and Peace), 
Korea has enhanced cooperation across diverse areas including human resources, culture, economy, 
and diplomatic security. In the economic sector, Korea has expanded its FTA network via RCEP as 
well as bilateral FTAs  with ASEAN countries including Indonesia and Cambodia. In addition, Korea 
has made efforts at enhancing supply -chain connectivity and increasing investments by supporting 
business activities through technological exchanges via ODAs, strengthening business  networks and 
establishing communication channels between local governments. As a result, from 2016 to 2020, 
the trade volume between Korea and ASEAN increased by 21% while Korea's investment in ASEAN 
rose by 82.8%.  
Since launching Services and Investment  negotiations with Russia in 2019, Korea is engaging in 
negotiations with a view to reaching WTO -plus agreement. However, due to the challenges posed 
by the COVID -19, it is difficult to project the timeline for finalizing the agreement. As for the EAEU, 
Korea completed Joint Study with the EAEU and have not launched negotiations yet.  
 
4.3 Trade Policies  
Paragraphs 4.32 -34, page 12 : Digital transition in trade.  
 
EU question 8 : Could Korea provide more information about several digital partnership agreements 
under negotiation or consideration? More specifically, could Korea provide information on the 
Korea -Singapore agreement and its scope; the timeline of the Korea's accession to the Digital 
Economy Partnership Agreement (DEPA) with Singapore, New Zealand and Chile; and the state of 
play of a possible Korea -ASEAN Digital Trade Agreement under consideration. Could Korea provide 
its view how all these bilateral/plurilateral agreements would complement or impact the ongoing 
WTO discussion on e -commerce ? 
 
ANSWER : 
Korea is currently negotiating the Korea -Singapore Digital Partnership Agreement (K -S DPA) as well 
as in the process of joining the Digital Economic Partnership Agreement(DEPA) with Singapore, New 
Zealand and Chile. Korea also understands that the EU is exploring the possibility of launching a 
Digital Partnership Agreement with Korea.  
 
Korea and Singapore have now reached the final stage of their negotiations for the K-S DPA , which 
were launched in July 2020. The Agreement inclu des digital trade rules as well as cooperation 
measures for emerging technology sectors such as fintech, AI, technical standards, and others. More 
details will be disclosed following the conclusion of the negotiations.  
 
Regarding the DEPA,  Korea officially  notified the Depositary of the DEPA of Korea's intention to join 
the Agreement on 13th September 2021. The DEPA joint committee announced its decision to 
commence the accession process for Korea on 5th October 2021.  
 
With a view to expanding our digital cooperation with ASEAN countries, Korea proposed a joint study 
for a Korea -ASEAN Digital Trade Agreement during the ASEAN -Korea Economic Ministers' 
Consultations, which was held on 13th September 2021.  
 
Through bilateral and plurilateral Agreements , Korea aims to facilitate digital trade and enhance 
cooperation with other countries in the emerging area of digital industry. Korea believes that such WT/TPR/M/414/Add.1  
 
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  Agreements will not only complement the relevant discussions underway at the WTO but also 
contribute th e proliferation of digital trade rules.  
 
5 INTERNATIONAL COOPERATION TO RESPOND TO COVID -19 
Paragraph 4.35, page 12 : Establishing a pan -government cooperation system to overcome the trade 
crisis caused by the COVID -19 pandemic.  
 
EU question 9:  The EU fully  supports Korea's efforts in facilitating trade and services to fight against 
the pandemic. Could Korea provide information about the efforts to further facilitate the movement 
of natural persons?  
 
ANSWER : 
The Korean government has actively participated in discussions on the initiative for the safer 
international travel during the COVID -19 pandemic which was led  by OECD. In addition, as COVID -19 
vaccination expands, bilateral and multilateral consultations a re underway in cooperation with 
related ministries regarding the introduction of an efficient mutual authentication system for 
quarantine such as vaccination certification to promote global exchange. In particular, discussions 
are underway on mutual certif ication methods, certificate inclusion, confirmation of compliance with 
international standards, and establishment of an integrated verification system by standardizing 
technical standards between mutual systems.  
 
Korea  also has implemented several measure s facilitating essential movement of people across 
borders. Korea has issued Quarantine Exemption Certificates for those visiting for important and 
urgent business activities, academic events, matter of public interests, or other humanitarian 
reasons. Also , Quarantine Exemption Certificates are available for people holding A -1 (Diplomat), 
A-2 (Government Official), or A -3 (Agreement) visas. Especially, Korea has taken several measures 
to assist the movement of business people. Korea implemented, upon bilate ral arrangement, Special 
Entry Procedure (called Fast Track Procedure) with various economies  to allow business people to 
carry out economic activities upon arrival in Korea without the 14 -day quarantine.  
* Exempted cases include important business purpos es, academic or public affairs, humanitarian 
purposes, and overseas business trips of government workers.  
* Entrants must go through diagnostic tests right after arrival, install a mobile app for self -diagnosis, 
and conduct active monitoring (inputting sy mptoms, etc.).  
In addition, Asia-Pacific Economic Cooperation ( APEC) Business Travel Card (ABTC ) holders who are 
granted pre -clearance can enter Korea without the need to apply for a separate visa.  
 
Paragraph 4.36, page 13: The report mentions that "the Korean Government is committed to 
improving the quality of foreign investment, enhancing the lin kage with Korean industrial policies".  
 
EU question 10:  Could the Korea explain how the "quality" of foreign investment is determined and 
what policies it pursues to improve the quality of foreign investment and enhance the linkage with 
Korean industrial p olicies?  
 
ANSWER : 
After the IMF period, Korea used to focus on increasing the amount of foreign currency reserves for 
a while. However, as Korea became able to secure enough amount of foreign currency reserves, the 
synergy or linkage with other industrial  policies and contributions to economic growth, became to 
be prioritized.  
In detail, high -quality Investment projects are often characterized by high levels of job -creating 
effect(new employments planned), more value -added created(e.g., R&D investment, reg ional 
headquarter), or engagement of cutting -edge technologies,  
In order to enlarge the proportion of these 'high -quality' investments, the priorities of different target 
companies are determined and managed through database, according to the factors such as the 
market competitiveness of the products by investors, their presence at home, and the possibility of 
attracting domestic investment. This allows to concentrating IR capabilities on the projects of high -
quality.  
 
Paragraph 4.42, page 13:  The report mentions  "surveys  (that) have been conducted every three 
years to inquire into the effect foreign investment has on job creation in Korea".  
 
EU question 11:  Could the Korean government provide the references of these surveys and explain 
how the results of these surveys hav e influenced policies to promote foreign investment?  WT/TPR/M/414/Add.1  
 
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  ANSWER : 
- Legal basis for the mandatory employment status surveys for foreign -invested enterprises were 
only established in 2019. Accordingly, the first survey report conducted by KOTRA  ('2020 
employment  status survey on foreign -invested companies ', open to public) was published in 2020.  
- The report contains analysis on comprehensive employment status and demands for 
foreign -invested firms, such as employment plans, required talents for the potential emp loyees, 
grievances in recruiting process.  
- The government attempts to encourage foreign -invested firms to increase domestic employment, 
by referring to the result of the survey and thus provide relevant policies accordingly.  
 
OTHER ISSUES  
The Government's report does not cover health and policy of determining the prices of innovative  
pharmaceuticals . 
 
EU question 12 : Could Korea provide information on how it sets prices for innovative pharmaceuticals 
and if there is any difference for conditions and for foreign and domestic producers and products?  
 
ANSWER : 
The Korean government is incorporating premium pricing policy to recognize the value of innovative 
medicine, and is applying premium price to new drugs that have high contribution to the field of 
health and medical treatment and improved clinical usefulnes s through Premium Pricing Policy for 
Global Innovative New Drugs. The requirements for the system do not discriminate foreign and 
domestic companies and products, and the system itself is being operated in away that there are no  
discriminatory  elements.  
 
WT/TPR/S/414 – WTO Secretariat report  
 
SUMMARY  
Paragraph 12, page 11 and paragraph 3.178, page 105:  The report notes that a Rapid Clearance 
System for Planned Import for reliable business operators with a long -time record of safe food 
imports was introduce d in 2019, allowing reliable business operators with a long -time record of 
importing food safely with no record of non -compliance to pass the customs clearance procedure 
immediately after import declaration.  
 
EU question 13:  Could Korea provide more detail s on the mentioned Rapid Clearance System for 
Planned Import? Could Korea indicate whether there is a publicly available list of reliable businesses 
operators with a long -time record of safe food imports and, if so, where this list can be accessed? 
Could K orea clarify under what conditions an importer is included on this list and how the importer 
is informed that it has become part of it?  
 
[ANSWER]  
The Rapid Clearance System for Planned Import is allowed only when a person registered as a "Good 
Importer" ap plies for and is approved of the System. Information regarding this is available on the 
website called Imported Food Information Maru (impfood.mfds.go.kr).)  
 
Paragraph 20, page 13: The report notes that the Government plans to increase subsidies to some 
services activities (such as transport and tourism). Subsidies have also been allocated to various 
services sectors to mitigate the impact of the COVID -19 pandemic.  
 
EU question 14:  Could Korea provide details on the plans to increase subsidies to som e services 
activities (such as transport and tourism)?  
 
ANSWER : 
Please be informed that it is not available to provide details on the plans to increase subsidies since 
it is currently in the process of finalizing and confirming budgetary outlays.  
 
1 ECONOMIC ENVIRONMENT  
1.2 Recent Economic Developments  
1.2.4 Structural policies  
1.2.4.2 Privatization  
Paragraph 1.15, page 25:  the report notes that "as at the previous Review and despite a commitment 
to privatization, there has been no progress in this area".  WT/TPR/M/414/Add.1  
 
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  EU question 15:  Considering the lack of progress on privatisation over the period covered by this 
and the previous Review, is Korea still committed to privatisation? What are Korea's policy 
guidelines, objectives and concrete plans in this respect?  
 
ANSWER : 
The Korean government continues to expand the private sector opening to the public sector and 
reduce the competing areas between public sector and private sector. Through this, public 
institutions improve management efficiency by concentrating on the key functions of the public 
sector and give private operators an opportunity to participate in public sector projects.  
 
For example, in the case of Korea Gas Corporation, the direct import ratio of private LNG gas 
increased from 5.7% in 2015 to 22.4% i n 2020 through efforts to promote direct import of private 
LNG gas. Also, in the case of Korea Electric Power Corporation (KEPCO), it is expanding the opening 
to private businesses by suspending the optical communication network construction project in 201 7, 
which is concerned about overlap with the private sector, and allowing private business operators 
for small -scale power brokerage business in 2021.  
 
If additional privatization is necessary, the government can comprehensively review the quality of 
public services, public interests, and competition with the private sector and so on. The government 
can review this issue after collecting opinions from various stakeholders, including academic experts, 
and discussions with the National Assembly.  
 
1.2.4.3 Com petition policy  
Paragraph 1.16, page 25:  the report notes that an IMF report found that manufacturing sector 
continues to be highly concentrated compared to similar countries.  
 
EU question 16:  Could Korea provide more information what measures the KFTC envisages to 
address this problem of concentration?  
 
ANSWER : 
In addition to policies to promote competition in individual markets, the KFTC is also promoting 
policies to prevent large business gr oups from abusing their economic power to expand their 
dominance expediently or undermine the basis of fair competition for SMEs through unfair internal 
transactions and serving private interests of their families.  
 
EU question 17:  Could Korea provide more  information on its competition policy regarding the 
potential dominant positions of digital companies and the impact of such polices on foreign 
companies?  
 
ANSWER : 
Like other industries, businesses in the digital sector may be subject to the MRFTA, for restricting 
competition in related markets or using unfair competition means such as consumer deception. The 
same law enforcement standards as domestic companies are a pplied to foreign companies that affect 
the Korean market.  
1.2.4.5 Labour market policies  
Paragraphs 1.18 -1.20, page 26 -27: Labour market policies.  
 
EU question 18:  Despite recent progress, including the ratification the ILO Convention No 87 on 
Freedom of Association and Protection of the Right to Organise in April 2021 (entering into force in 
April 2022), Korea's regulatory environment for trade unions and freedom o f association remains 
very challenging, e.g. difficulties for joining trade unions for self -employed or dismissed workers and 
the registration process of trade unions. Could Korea provide an update about the recent state of 
play in this respect?  
 
ANSWER : 
Korea ratified fundamental ILO conventions on April 20, 2021 and amended the Labor Relations  
Act to be consistent with the spirits of the Conventions on Freedom of Association.  
The amended Act stipulates that the dismissed may join a union regardless of un ion type, and the 
dependent self -employed are allowed to join a union provided that they fall under the category of 
"worker " under this Act.  
Various unions of delivery workers, chauffeur service drivers, delivery riders, and etc., have been 
established and  in active since 2017.  WT/TPR/M/414/Add.1  
 
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  Meanwhile, the Constitution provides for the freedom of association of the self -employed.  
 
EU question 19:  In the ILO Centenary Declaration for the future of work (2019), ILO members 
unanimously committed to work towards ratificatio n of outstanding ILO fundamental conventions. 
In this regard, could Korea inform of latest developments towards ratification of ILO Convention No 
105 on Abolishment of Forced Labour?  
 
ANSWER : 
ILO Convention No.105 prohibits the imposition of forced labor* as a punishment for expressing 
political views or participating strikes.  
* (concept) All work or service which is exacted from any person under the menace of any penalty 
and for which the said person has not offered himself voluntarily. (Article 2 o f Convention No. 29 on 
forced labor)  
Under Korea's penal system, some cases of expressing political views and participating strikes in 
violation of the positive law are subject to sentences of imprisonment with labor*. Consequently, 
penal provisions of this kind are incompatible with the Convention.  
* National Security Act, Trade Union and Labor Relations Adjustment Act, etc.  
A research project is being conducted to identify how to amend domestic provisions to ensure 
compliance  with the pro visions of the Convention.  
 
1.3 Developments in Trade and Investment  
1.3.2 Trends and patterns in FDI  
Paragraph 1.29, page 34 : the report presents the trends and patterns of inward FDI. The structure 
of the Korean economy (i.e. the share of industrial ma nufacturing) is often cited as one of the main 
reasons behind the low inward FDI. However, in the past four years, the Korean economy has seen 
an increase in the service sector share of the GDP, to the detriment of the industry. Still, the influence 
of FDI  on the local economy has been declining in recent years.  
 
EU question 20:  Could Korea provide information what specific measures were taken in the areas 
such as labour -management relations, regulatory environment to foster inward FDI?  
 
ANSWER : 
- Office of Foreign Investment Ombudsman  (OFIO) operates labor management task force to support 
foreign -invested enterprises to manage sustainable and sound labor -management relat ions. 
- It also provides an English version of new  (newly enacted/ to -be enacted) regulatory laws which 
have high relevance to foreign firms. (570 laws were translated and provided in 2020)  
- Although OFIO does not hold any legal authority to enact or amen d laws, it can advise related 
authorities to improve the grievances addressed. (Foreign Investment Promotion Act Article 15 -2) 
 
2 TRADE AND INVESTMENT REGIMES  
2.6 Foreign Direct Investment  
2.6.1 Overview  
Paragraph 2.75, page 48 : the amended Foreign Investment Promotion Act allows the competent 
Minister or the heads of the relevant agencies to require the Foreign Investment Committee to review 
a foreign investment project where there is a "high" possibility of leakage of core national 
technologies, an d where a foreigner's acquisition of de facto control over the management of an 
existing domestic company may threaten national security.  
 
EU question 21:  Could Korea provide more information how this aspect is implemented?  
 
ANSWER : 
The "high possibility o f leakage of core national technologies " has been added to possible situations 
where investment can be restricted.  
According to the Article 5 of Enforcement Decree to Foreign Investment Promotion Act, in the 
situation where is a "high possibility of leakage of core national technologies " stated in the 'Act on 
Prevention of Divulgence and Protection of Industrial Techno logy', competent Minister or the heads 
of the relevant agencies now hold authority to require the Foreign Investment Committee to review 
a foreign investment project. According to the review, the Minister of MOTIE can restrict the 
investment case.  
 
Table 2 .1 FDI restricted sectors, page 49:  The table indicates that FDI in the farming of animals is 
allowed, except for beef cattle, where only minority foreign investment is allowed.  WT/TPR/M/414/Add.1  
 
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  EU question 22:  Could Korea explain the reason of this investment restriction  in the beef sector?  
 
ANSWER : 
As set forth by Article 4 of the Foreign Investment Promotion Act, Korea does not restrict foreign 
invest except threatens national security and public order or has harmful effects on public health 
and sanitation or environmen tal preservation and so on.  
The livestock industry takes up a significant portion of total agricultural output value (40 percent in 
2019). Accounting for a large share of the livestock industry, the Korean cattle sector is an industry 
where the related industries such as feed and dairy farming are integrated. The sector is open from 
2001 allowing foreign investment up to 50 percent.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valua tion, and requirements  
3.1.1.1 Procedures  
 
Paragraph 3.10, page 57:  the report notes that to ensure consumer safety, foodstuff subject to 
inspection quarantine requirements and certain medication are not eligible for the simplified process; 
they involve g oods deemed inappropriate by the head of a customs office.  
 
EU question 23:  Could Korea specify if there is a database of specific items which are considered 
inappropriate for each means of transport and which is used by the head of customs office to state 
a final decision on appropriateness or inappropriateness of goods?  
 
[ANSWE R] 
According to 「Public Notice on Import Clearance of Express Cargo, a total of 11 items on the express 
cargo exclusion list are excluded from List Declaration (Simplified Declaration). Such excluded items 
are required to go through the official general import declaration process, customs inspection, and 
evaluation before entry.  
 
3.1.6 Anti -dumping, countervailing, and safeguard measures  
Paragraph 3.67, page 74:  injury margin calculation in anti -dumping investigations:  
 
EU question 24 : Could Kore a indicate if it has plans to improve its methodology when establishing 
the target profit and the target price in the process of injury margin calculations, in order to make 
it more accurate and more fair for cooperating exporters.  
 
ANSWER : 
Accurate calculation of injury margin is required to determine the level of anti -dumping tariff rate. 
The KTC has revised its regulation(*) to ensure sufficient opportunity for the interested parties such 
as domestic producers, exporters or importers to pr esent all relevant evidence regarding the injury 
margin. The revised regulation has been in effect since 1 February 2021.  
 
* Regulation on the operation of application, investigation and determination of anti -dumping tariff 
and countervailing tariff  
 
According to the regulation, the KTC should determine the appropriate level of target price that 
accounts for the profit and costs of domestic industry which are expected under the normal condition 
of market competition. The level of profit and costs, in turn,  can be calculated considering various 
factors based upon the evidence submitted by the interested parties, including profit level before 
the increase of the dumped imports, coverage for investment or R&D, environmental costs, volume 
effect of dumped impor ts, etc.  
 
The KTC continues to evaluate the needs for further improvement of anti -dumping investigation 
process with the aim of realizing advancing trade remedy system.  
 WT/TPR/M/414/Add.1  
 
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  3.3 Measures Affecting Production and Trade  
3.3.1 Incentives  
3.3.1.1 Taxation  
3.3.1.1.1 Indirect taxation  
 
Paragraph 3.100, page 83:  Korea imposes environmental waste charges on certain items that 
contain harmful substances and are difficult to recycle (Act on Promotion of Saving and Recycling of 
Resources). The ch arge is intended to ensure that manufacturers bear the cost of processing waste. 
It applies equally to imports and domestic goods.  
 
EU question 25:  Could Korea review its system of environmental fees to make it non -discriminatory 
and compliant with WTO la w, i.e. applying the same level of taxes to products with a similar 
recyclability grading?  
 
[ANSWER]  
Products subject to the environmental waste charges pursuant to Article 12 of the Act on the 
Promotion of Saving and Recycling of Resources (hereinafter i ndicated "Act") are not subject to the 
packaging recyclability evaluation and labelling of the results under Article 9 -3 of the same Act. The 
environmental waste charges system is operated in such a way that the amount calculated by 
applying a fixed rate f or each item to its quantity delivered or imported is charged annually to the 
producers of the subjected item, and the same fixed rate is applied both to the domestic and 
imported products.  
However, the target of the packaging recyclability evaluation is p roducers who is obligated to recycle 
in accordance with Article 16 of the same Act. In order to jointly fulfill the duty of recycling under 
the Act, the producers establish a recycling cooperative and pay the recycling contribution 
determined by the Joint Steering Committee every year. As Article 29 of the same Act requires that 
recyclability be taken into account when calculating the contribution, the 2nd Joint Steering 
Committee in 2020 decided to apply an increased unit price for the contribution to some  of the 
packaging materials that were graded as 'Difficult to Recycle'.  It should be noted that the recycling 
contribution which is charged differently depending on recyclability and the environmental waste 
charges are completely different in nature.  
 
3.3.1.1.2 Direct taxation  
3.3.1.2 Tax and non -tax incentives  
3.3.1.2.2 Non -tax incentives  
3.3.1.2.2.1 Access to finance  
Paragraph 3.114, page 87:  the report states that State -owned financial institutions retain a major 
role in assisting Korea's industrial development. State intervention dominates the large venture 
capital market, which benefits mainly SMEs. The government -backed Korea Fund of Funds  has 
invested in limited partnership funds (LPFs) and contributed to the formation of the private venture 
investment market.  
 
EU question 26:  Could the Korean government explain in more detail how the government -backed 
Korea Fund of Funds contributes to th e formation of the private venture investment market?  
 
ANSWER : 
◦ Venture investment is an important sources of funding for startups that have brilliant ideas but 
lack of resources. However, since venture investment is characterized  as a high -risk, high -return 
business, the role of the government is very crucial to mitigate risk in the early stages and to 
promote venture investment.  
 
As the MSS established Korea Venture Investment Corporation  (KVIC) as fund of fund in South  Korea 
in 2005 and started to supply stable funding to the venture investment market, venture investment 
in Korea continues to increase. The Korean government has invested about 7 trillion won 
(USD 5.9 billion) in the fund, and about 8,000 start -ups and venture companies have been inve sted 
about KRW 23 trillion (8.3 billion USD) since then.  
 
* Venture Investment : ('2000, 1st venture investment boom in South Korea) KRW  2 trillion 
(USD  1.6 billion) → ('2020, 2nd venture investment boom)KRW 4.3 trillion (USD  3.6 billion)  
 WT/TPR/M/414/Add.1  
 
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  3.3.1.2.2.2 Other support  
Paragraph 3.124, page 90:  In light of the COVID -19 pandemic circumstances, certain manufacturing 
activities, including medical supplies, mobile telephone distribution and telecommunication 
equipment, and 5G network infrastructure , have benefited from additional support.  
 
EU question 27:  Could Korea indicate if both domestic and foreign enterprises could access such 
additional support  on equal terms? If there are specific or different criteria and conditions for foreign 
enterprises , could Korea provide more information on these, and explain how these ensure non -
discriminatory treatment?  
 
ANSWER : 
Supports measures  in mobile phone distribution in response to COVID -19 were temporary measures 
carried out by the government for COVID -19 crisis management. Currently, there are no measures 
supported by the Government. Domestic telecommunication companies have provided fun ds to their 
small and medium -sized handset distribution stores such as agencies. Thus, it is not categorized as 
discriminatory treatment of foreign companies over their domestic counterparts.  
 
Paragraph 3.125, page 91: Under the Digital New Deal initiative , several support measures, including 
vouchers, funds, grants, and guarantees, for four sectors (strengthening the DNA ecosystem, 
digitalizing educational infrastructure, nurturing the contactless industry, and digitalizing social 
overhead capital) are env isaged.  
 
EU question 28:  As regards subsidies and other support measures to be taken under the Korea 
Digital New Deal, could Korea clarify if it has a single window for compiling and managing such 
measures in a systematic manner? If such single window is n ot yet available, does Korea have any 
plans to introduce one in the future?  
 
ANSWER : 
Support measures of the Digital New Deal initiative are implemented by competent ministries and 
institutions, which have expertise in each sector, taking into account various policy environments 
such as beneficiaries, business size, and business type of pr ojects (crowd sourcing, infrastructure 
construction, etc.) Henceforward, this system  will be maintained.  
 
3.3.2 Standards and other technical requirements  
3.3.2.2 Voluntary, compulsory, national, and aligned standards  
Paragraph 3.139, page 95: the reports  provides information on Korean standards.  
 
EU question 29:  Could Korea provide further information in which sectors have the 3% of Korean 
standards been established without any reference to international standards, and what are the 
reasons for such deviations?  
 
ANSWER : 
Most KSs have been harmonized with correspon ding international standards. Non -harmonized 
Korean standards are in the sector of internal guideline(e.g. vocabulary, graphic symbol, method for 
specification), korean foods(e.g. kimchi, korean soy sauce, Fish paste), domestic  services(ie. Funeral 
home se rvices, Postnatal care center services, Furniture removal for households) that are either 
unique to Korea, with no corresponding international standards , or cannot be harmonized because 
of their link to other domestic regulations  
 
3.3.2.3 Food, health -related, and other measures  
Paragraph 3.147, page 97:  AREC requires manufacturers and importers of chemical substances to 
register or notify it before manufacture or import. Concerns relating to the lack of guidance around 
implementation, the insuff icient time for companies to implement the requirements, and AREC's lack 
of protection for confidential business information have been raised.  
 
EU question 30:  Could Korea provide information if, and if so, how, the concerns of producers and 
importers are taken into account in its Act on Registration and Evaluation (AREC)?  
 
[ANSWER]  
First, Korea continues developing AREC -related guidance, and publishing them at the following 
website: https://www.chemnavi.or.kr/chemnavi/spkreach/implementation.do . 
 WT/TPR/M/414/Add.1  
 
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  Second, Korea already provides companies with sufficient grace period of registration according to 
Article 10(2) of AREC to enable them to prepare their registration of existing substances.  
 
Third, Korea already has institutional measures to protect confid ential business information: the 
appointment of only representative (OR) for overseas manufacturer or producer pursuant to Article 
38 of AREC, the request on data protection of registered substance pursuant to Article 45 of AREC, 
and an approval system whe re reviewing CBI application to be excluded from submission of chemical 
safety information according to Article 35(2) of the Enforcement Rule.  
 
Paragraphs 3.147 and 3.148, page 97:  During the review period, further action was taken in the 
areas of registe ring and notification of toxic chemicals.  
 
EU question 31:  Could Korea explain whether it considers any action in order to simplify its 
certification and testing procedures?  
 
[ANSWER]  
As Korea needs the clarification about your question and background the reof, it would be appreciated 
if you clarify the question when the below answer is not sufficient. Therefore, the below answer is 
made based on literal meaning of the question.  
 
Regarding registration, Korea indicates the requirements for exemption from registration in 
Article  11 of AREC, the substances that submission of some data can be waved in Article 13 of the 
Enforcement Decree, and the data that can be waved from submission  in Article 5 of the Enforcement 
Rule.  
 
In addition, for the data that requires long time to be produced, Korea allows that a registration 
applicant can submit a test plan for registration prior to the submission of the test data in accordance 
with Articl e 14(3) of AREC, so that the applicant can apply for registration.  
 
3.3.2.4 Conformity assessment  
Paragraph 3.149, page 98:  the Korea Laboratory Accreditation Scheme (KOLAS), which accredits 
testing, calibration, and medical testing laboratories.  
 
EU quest ion 32:  Could Korea provide further information on how foreign certificates are recognised 
under bilateral and multilateral agreements?  
 
ANSWER : 
KOLAS generally recognizes the equivalence of the conformity assessment bodies (CABs) accredited 
by accreditation bodies (ABs) under the ILAC MRA.  
 
However, the recognition of foreign certificates issued by CABs under the ILAC MRA is determined 
by the var ious regulatory authorities in KOREA depending on the relevant fields.  
 
3.3.2.5 Transparency  
Paragraph 3.156, page 99:  The report notes that Korea made 348 new notifications (281 in 
2012-15), of which 323 were regular, under the WTO TBT Agreement.  
 
EU ques tion 33:  Does Korea in general have a policy of replying to WTO member comments on TBT 
notifications? What is the average time taken to reply to these comments?  
 
ANSWER : 
In Accordance with Articles 2.9 and 5.6 of the WTO TBT Agreement, comments from WTO Me mbers 
on TBT notifications are conveyed via TBT Enquiry Points to Korea's competent regulatory authorities. 
The comments are then fully reviewed, and Korea endeavors to reply within 60 days in general.  
 
Paragraph 3.157, page 99:  During the review period, Members raised specific trade concerns (STCs) 
at the Committee on Technical Barriers to Trade regarding several measures under consideration or 
taken by Korea (e.g. ballast water, textile products for infants, warning on alcoholi c beverages 
drinking, package recycling, energy efficiency management equipment, household chemical and 
biocidal products, and wood products). The testing regime for textile products for infants applicable 
in Korea is not in line with the standards applied  in most developed countries, significantly increasing 
the cost of distribution for retailers.  WT/TPR/M/414/Add.1  
 
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  EU question 34:  Is Korea considering a reform of its practices in this matter?  
 
ANSWER : 
For STCs  raised against Korea in regular meetings of the WTO TBT Committees, the requests are 
reviewed by Korea's competent regulatory authorities. The review results are then officially 
submitted, and additional replies are conveyed via Members' TBT Enquiry Point s as necessary.  
 
Paragraphs 3.166 and 3.167, pages 102 -103: Maximum residue levels (MRLs)  
 
EU question 35 : Could Korea provide more information on how Korea will set import tolerance on 
generic pesticides and veterinary drugs?  
 
[ANSWER]  
Korea provides a manual in English for Import Tolerance (IT) application on the designated website 
(http://www.foodsafetykorea.go.kr) of the ministry in charge, the Ministry of Food and Drug Safety 
(MFDS). For more information, member states can contact MFDS(The Residue and Contaminants 
Standards Division  
 
3.3.3.2 Quarantine regulations  
Paragraph 3.174, page 105 : Imports of plants and plant products must have a phytosanitary 
certificate issued by the competent authority in the exporting country.  
 
EU question 36 : What policies is the government of Korea considering to reduce the burden of this 
SPS trade barriers f or agri -food products? More specifically, once a protocol has been negotiated for 
a given product and EU Member State, could this market access be extended or the procedure 
simplified for other EU Member States having requested market access for the same p roduct?  
 
ANSWER : 
When Korea receives a market access request for agri -food products from an exporting country, 
import approval is determined in accordance with the Plant Protection Act and relevant domestic 
legislation.  
If another EU Member State applies for market access of the same product, the review period for 
pest risk assessment may be reduced when its disease, pest and ecology share similarities with 
previous cases.  
 
Paragraph 3.175, page 105:  Korea bans the impor t of animals and their products from countries 
affected by exotic animal diseases, such as foot -and-mouth disease and African swine fever (ASF). 
Upon request of the exporting country, the import ban may be lifted depending on the outcome of 
import risk ana lysis. Imports from countries affected by highly pathogenic avian influenza (HPAI) 
are banned, but those of poultry meat that is heat -processed to inactivate the HPAI virus are allowed.  
 
EU question 37 : Is the government envisaging any measure to find a b alanced mechanism to carry 
out analysis and at the same time minimize value loss for importers?  
 
ANSWER : 
In conducting import risk analysis of animal and livestock products, protecting human and animal 
health by stopping the introduction of infectious animal diseases from other countries to Korea is a 
top priority for Korea. Korea does not take into account o ther factors.  
 
EU question 38:  Does Korea have a procedure in place to recognise the regionalisation measures 
implemented by WTO Members for exotic animal diseases (for diseases listed by the World 
Organisation for Animal Health)? If such a procedure exis ts in Korea, on which web link can this 
information/procedure/legislation be found? Could Korea describe the steps of this procedure 
together with an indicative timeframe for each of the steps in this procedure? If such a procedure 
does not exist, how and when will Korea align its import conditions with the WTO SPS Agreement, 
in particular its Article 6?  
 
ANSWER : 
Korea recognizes the regionalization principles pursuant to international regulations and domestic 
standards. The Act on the Prevention of Contagious Animal Diseases and Guidelines on Import Risk 
Analysis of Designated Items subject to Quarantine (Public n otice of MAFRA) stipulate matters WT/TPR/M/414/Add.1  
 
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  relating to regionalization. Relevant information is posted on the website 
(https://www.mafra.go.kr/english/index.do).  
Estimated timelines for the completion of regionalization procedures may vary case by case.  
 
EU questio n 39: Could Korea clarify how it applies the quarantine principles where FTAs exist and 
quote the specific case of the EU (e.g. for BSE), in which although same food safety rules apply 
across the EU, Korea still carries out an analysis EU Member State by E U Member State?  
 
ANSWER : 
Korea conducts import approval procedures in accordance with international standards including OIE 
Codes and SPS Agreement.  
Under domestic regulations, Korea conducts import risk analysis for market access applications 
country by c ountry in order to prepare for the risk of introduction of infectious animal diseases.  
 
EU question 40:  Could Korea provide more information on how it assesses pest -free status for African 
Swine Fever and Avian Influenza?  
 
ANSWER : 
The assessment of disease -free status for ASF and HPAI -affected countries is carried out in 
accordance with the standards of fre e status in the OIE Terrestrial Code and domestic regulations 
including the Guidelines on Import Risk Analysis of Designated Items subject to Quarantine (Public 
notice of MAFRA).  
Korea assesses the disease -free status of an exporting country based on info rmation on livestock 
industry, infectious animal disease outbreak, surveillance and measures of the country submitted 
by its veterinary authorities.  
 
Paragraph 3.176, page 105:  the report refers to the fact that in May 2019, Korea lifted import 
restrictions on beef from the Netherlands and Denmark in place since 2000 in response to the 
outbreak of BSE in Europe; applications from some other EU member States concerning the liftin g 
of these restrictions are being considered.  
 
EU question 41 : To guarantee a high level of safety of beef produced in the European Union, all EU 
Member States implement the same stringent and harmonised EU legislation with regard to food 
safety and animal  disease control, resulting in identical conditions prevailing in all EU Member States. 
Could Korea indicate a time -line for the lifting of import restrictions on beef for other EU Member 
States? In this context, how will Korea respect its obligation under  the WTO SPS Agreement, in 
particular with regard to Article 2.3 on non -discrimination?  
 
ANSWER : 
Under domestic regulations, Korea conducts import risk analysis for market access applications for 
livestock products country by country in order to prepare for the risk of introduction of infectious 
animal diseases.  
Korea carries out import risk analysis  country by country to determine the safety of livestock 
products, because the animal disease outbreak situations, veterinary organizations (e.g. the number 
of veterinarians) and current state of livestock industry are different across EU member States.  
Meanwhile, in regard to the points EU has made, Korea will continue to carefully examine them 
considering international discussions on regionalisation and characteristics of each disease.  
 
3.3.4 Competition policy and price controls  
3.3.4.1 Competi tion policy  
3.3.4.1.1 Policy, institutional, and regulatory framework  
Paragraph 3.185, page 107:  the report states that " Competition law covers all sectors and all 
undertakings, including state entities. However, liner shipping conferences are exempted…."  
 
EU question 42 : Could Korea explain the reasons for this exemption and offer insight as to whether 
there are any considerations to end the exemption?  
 
ANSWER : 
The current legal system for liner shipping conferences does not grant an indefinite exemption to 
competition law.  WT/TPR/M/414/Add.1  
 
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  Despite the great harm to joint actions, Article 29 of the Shipping Act allows legal conference 
exceptionally under certain requirements* in consideration of the characteristics of the shipping 
industry.  
* (Procedural requirem ents) Written consultation with the shipper's association and reporting the 
contents of conference to the Minister of Oceans and Fisheries.  
(Content requirements) Do not restrict withdrawal from conference, and do not substantially restrict 
competition thr ough unfair fare increases.  
However, the MRFTA is applied to illegal conferences of liner shipping made without complying with 
the above requirements specified in Article 29 of the Shipping Act.  
 
3.3.4.1.2 Operational developments  
Paragraph 3.189, page 109 : Monopoly power seemingly remains unchanged and market 
concentration relatively high.  
 
EU question 43:  Does Korea envisage any additional measures or changes to the legislation in the 
making as part of efforts to promote competition in certain industries, such as in the digital sector, 
and to prevent abuse of dominant position in forward and backward transaction s? Could Korea 
provide more information about the role and the modus operandi of the special ICT Task Force?  
 
ANSWER : 
The OPA( Online Platform Act) is being enacted in order to strengthen transaction transparency in 
the field of online platforms and establish fair market rules,. Currently, the proposed bill has been 
submitted to the National Assembly, and legislative discussions are underway at the National 
Assembly. The main contents are to provide more information about key transaction conditions 
between the platform and online stores, and to establish a dispute settlement system and a win -win 
agreement system specialized in the online platform field.  
 
The ICT Task Force, currently run by the KFTC, is in charge of handling major MRFTA violations such  
as abuse of market power in the ICT field and unfair trade practices. For each major case, a division 
is formed with KFTC investigators, but if necessary, it is also cooperating with external experts.  
 
3.3.4.3 Consumer protection  
Paragraph 3.205, page 114: consumer protection.  
 
EU question 44:  How does Korea justify its limit of 17% ABV for broadcast advertisements of spirits, 
which de facto prevents most imported spirits from being advertised, while Soju products can benefit 
from broadcast advertisements?  
 
ANSWER : 
The limit of 17% ABV for broadcast  advertisement s of spirits was introduced to protect the Korean 
people's health in consideration of their alcohol consumption pattern and is applied to most 
domestically produced spirits  including Soju. The OECD has also recommended that Korea reinforce 
its regulations on advertisements of alcohol products, in order to prevent harmful consequences 
caused by alcohol consumption (OECD,2020).  
 
Soju products  with over 17% ABV cannot be advert ised through broadcast advertisements the same 
way as imported spirits. As of 2019, more than 70% of Korean Soju products are over 17% ABV and 
broadcast advertisement is prohibited. Thus, it is hard to say that Korean Soju products benefit from 
broadcast a dvertisements.  
 
Also, in Korea, the use of broadcast and printed media for advertising alcohol products is declining 
while the use of online media is rapidly increasing. There is no limit on the type and ABV of the 
alcohol products for online advertisement s, so imported spirits can equally appear in advertisements 
online. Therefore, this  shows that the Korean government is not treating imported spirits any 
differently from domestic  alcohol products.  
 
In addition , limits in different forms of advertisement for alcohol products based ABV  is a policy that 
is being implemented in the EU and other countries including Spain. The level of ABV is also similar 
to Korea.  
 WT/TPR/M/414/Add.1  
 
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  3.3.5 State trading, state -owned enterprises, and privatization  
3.3.5.2 State invo lvement in the economy and privatization  
Paragraph  3.212, page 116 : the report notes that "State involvement in the economy persists, as a 
result of the limited privatization efforts during the review period; at the same time, the level of 
government share holding at several entities rose for different reasons (Table 3.4)."  
 
EU question 45:  Could Korea explain the measures it is taking to ensure a level playing field among 
SOEs and private operators on the Korean and global markets? Likewise, what measures is Korea 
taking to ensure that its SOEs are not distorting the level playing field when Korean SOEs are trading 
and investing in overseas markets?  
 
ANSWER : 
In accordance with the Act on the Management of Public Institutions, the Korean government 
guarantees the autonomous operation of public institutions and promotes privatization plans by 
checking the adequacy of functions performed by public institutions.  
In addition, in order to prevent distortions of domestic and foreign markets that may occur due to 
the government's non -commercial assistant for public institutions, Korea continues to resolve anti -
competition elements through the revision of laws and Ministe rial Meeting on International Economic 
Affairs.  
For reference, there has been no case in which the government has compensated for losses on public 
institutions in the last 10 years, and in the case of debt repayment guarantee, the only case for 
supporting key industries was due to the recent COVID19.  
 
3.3.6 Government procurement  
Paragraph 3.215, page 119:  Korea operates international tendering and other procurement 
procedures in accordance with its commitments under the WTO Plurilateral Agreement on 
Government Procurement (GPA).  
 
EU question 46:  Could Korea provide information on the public tenders awarde d to foreign firms? 
Specifically: What is the percentage of tenders awarded to foreign firms in general and as a share 
of those tenders where there were foreign participants? What are the respective shares of foreign 
firms in terms of value of the contract s awarded?  
 
ANSWER : 
The percentage  of PPS'tenders awarded to foreign firms  is about 1.2% and PPS may provide the 
contract information concerned.  
 
3.3.6.3 Public Procurement Service (PPS)  
Paragraph 3.230, page 124:  As at March 2021, KONEPS  had links with 225 external systems (194  in 
2016), including 5 (banks same as in 2016), 23 guarantee corporations (21 in 2016), 
8 construction -related associations (same as in 2016), 5 industrial associations (4 in 2016), 10 credit 
rating authorities (10 in 2016), 5 certified authorities (same as in 2016), and 5 e -signature 
authorities (same as in 2016).  
 
EU question 47:  Could Korea provide more information on how credit rating is used in its 
procurement system and how this element is taken into account fo r domestic and for foreign 
enterprises  ? If there is any differentiation of the conditions or procedures, could Korea provide 
explanations how non -discrimination between foreign and domestic enterprises is ensured?  
 
ANSWER : 
The credit rating is utilized to  check the management status of an applicant in the prequalification 
evaluation. Both domestic and overseas suppliers should obtain credit ratings from credit rating 
agencies or credit inquiry companies falling under Article 4(Type and Permission of Credit  
Information Business) of the Credit information Use and Protection Act or Article 335 -3 of the 
Financial Investment Services and Capital Markets Act  
 
3.3.7 Intellectual property rights  
3.3.7.1 Industrial property  
Section 3.3.7.1, page 126  
 
EU question 48: Could Korea clarify whether point 3.3.7.1 concerns also geographical indications 
(protected under the "Trademark Act" and the "Agricultural and Fishery Products Quality Control WT/TPR/M/414/Add.1  
 
- 96 - 
 
  Act"), including the administrative and judicial proceedings (IPR disputes,  competent 
authorities/judicial bodies, etc.)? Could Korea indicate which fora/judicial body is responsible in case 
of a dispute related to GIs (protected under the "Trademark Act" and the "Agricultural and Fishery 
Products Quality Control Act")?  
 
[ANSWER]  
 
Classification  Collective marks with GI 
(Trademark Act)  GI under the Agricultural and 
Fishery Products Quality 
Control Act.  
Administrative procedures  the Intellectual Property Trial and 
Appeal Board  GI committee  
Judicial procedures  Court  Court  
 
Paragraph 3.240, page 127: the reports includes data on the application and registration numbers of 
various industrial property rights and length of examination (except geographical indications).  
 
EU question 49 : Could Korea indicate how many GIs are applied, protected and registered in Korea? 
Is there a publicly available database? Does Korea has a separate database for GIs protected under 
bilateral or multilateral agreements (FTAs, RTAs)? Could Korea indicate how long it takes to register 
a GI in  Korea (length of examination and registration)?  
 
[ANSWER]  
In 2020, 12 collective marks with GI were filed, and the number of registrations is not managed 
separately. As of the end of 2020, there are 101 agricultural products, 26 marine products, and 
54 forest products which have been registered as GI under the Agricultural and Fishery Products 
Quality Control Act.  
Collective marks with GI can be found at www.kipris.or.kr Agricultural products, marine products, 
and forest products GI can be found at the web sites of the National Agricultural Products Quality 
Management Service, the National Fisheries Quality Management Service, and the Forest Service, 
respectively.  
A database for GI protected under the FTA is currently not operated separately, and the list fo r GI 
protection can be found in each FTA agreement.  
We have not monitored the period from application to registration of a collective mark with GI 
separately. For reference, it took about 8.9 months in 2020 until the first office action in the case of 
trademark examination (including GI collective mark).  
 
Paragraph 3.242, page 127:  refers to Penal provisions involving imprisonment or fines for right 
infringements of patents, utility models, trademarks, and industrial designs were revised. Civil 
remedies include injunctions against further infringement and damages. Provisional measures for 
preventing infringements are provided in each industrial property act and the Civil Execution Act. 
Specific criteria exist for increasing or decreasing fi nes.  
 
EU question 50:  Could Korea clarify whether this point is applicable for GIs (protected under the 
"Trademark Act" and the "Agricultural and Fishery Products Quality Control Act") as well?  
 
ANSWER : 
Under the Agricultural and Fishery Products Quality Control Act, Korea checks on registered products 
by production/retail stages more than once every 6 months. Also, the Act provides punishment for 
frauds (imprisonment up to 3 years) or infringements (pena lty up to 10 million won). Registration  
will be cancelled when production is no longer available, the GI is fraud, or the GI does not meet the 
registration criteria.  
Products bearing a geographical indication according to the Agricultural and Fishery Prod ucts Quality 
Control Act, are applied with the provisions on penalty and civil remedies under the act.  
 
3.3.7.1.2 Trademarks  
Paragraph 3.255, page 130:  the report indicates that Geographical indications (GIs) remain 
protected under the Trademark Act, the Agricultural and Fishery Products Quality Control Act, and 
the Unfair Competition and Trade Secrets Protection Act. The Trademark Act and the Fishery 
Products Quality Control Act protect GIs that are registered and provide a registration process, while 
the Unfair Competition and Trade Secrets Protection Act protects unregistered GIs when their 
protection under the Trademark Act or the Agricultural and Fis hery Products Quality Control Act has 
become ineffective  WT/TPR/M/414/Add.1  
 
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  EU question 51:  Could Korea clarify whether agricultural and non -agricultural products' names also 
can be protected under the relevant legislation?  
 
ANSWER : 
Geographical indication for agricultural products and processed agricultural products can be 
protected when registered under the Agricultural and Fishery Products Quality Control Act.  
 
EU question 52:  Could Korea clarify what is the scope of protection for unregistered GIs? Can Korea  
provide a list for unregistered GIs?  
 
ANSWER : 
An unregistered GI is a GI that has not been filed and registered under the Trademark Act or the 
Agricultural and Fishery Product Quality Management Act and is protected under the FTA signed by 
Korea, such as the Korea -EU FTA, etc. Therefore, the applied scope of protection is as stipulated in 
each of the agreement signed by the parties of the FTA.  
 
The lists of  unregistered GI can be found in the agreements of the Korea -EU FTA, the Korea -Canada 
FTA, the Korea -Turkey FTA, the Korea -Chile FTA, the Korea -Peru FTA, and the Korea -UK FTA.  
 
Paragraph 3.256, page 120: The report states that "the trademark legislation pr events registration 
of trademarks consisting of a "conspicuous geographical name"; it allows them to be registered as 
geographical collective marks. The owner of a GI collective mark has the right to use it exclusively 
and prevent others from using identic al or similar signs for identical goods, where it might result in 
confusion".  
 
EU questions 53 : Could Korea explain how a 'trademark consisting of conspicuous geographical 
name' should be understood and, if possible, give an example of such trademark? Con sidering that 
in principle GI and trademark would be different types of IP rights, Korea is also invited to clarify 
what is meant by a term 'GI collective mark'. Could Korea indicate which Article(s) of the Foreign 
Trade Act deals with GIs? Does the Foreig n Trade Act has implementing rules or are there any 
guidelines available?  Could Korea also clarify who is entitled to register such "GI collective mark"? 
Is any GI producer installed in the relevant geographical area allowed to use such "GI collective 
trademark"?  
 
ANSWER : 
According to the Article 4(1) of the Act on the investigation of Unfair International Trade Practices 
and Remedy Against Injury to Industry, the Unfair Trade Practices include the acts  exporting or 
importing goods with infrining GI. Decisions regarding GI infringement of subjected  goods are based  
on the Trademark Act  and the Agricultural and Fishery Products Quality Control Act. Corrective  
measures* and/or Penalty Surcharges may be imposed on the actor exporting or importing goods 
with infringing GI.  
* suspending import or export, banning the landing of or abandoning such goods, making corrective  
advertising, publishing the fact of receivi ng a corrective order and/or other necessary measures to 
correct unfair trade practices.  
 
A trademark with a conspicuous geographical name or its abbreviation alone cannot be registered 
as a trademark (ex. Oxford, Manhattan, Georgia). ( Trademark Act 33(1) (iv)) 
However, collective marks with GI can be registered even in this case. (Trademark Act 33(3))  
Collective mark with GI refers to a mark used directly by a corporation jointly established by a person 
who produces, manufactures, or processes products tha t can use geographical marks or allows its 
members to use them. (Trademark Act 2(1)(vi))  
The applicant for the collective mark with GI is limited to corporations composed of those who 
produce, manufacture, or process products on which geographical indications is used. (Trademark 
Act 3(2))  
The collective mark with GI does not restrict the use of the product by those who produce, 
manufacture, or process it in the area. (Trademark Act 90(2)(iii))  
 
EU question 54:  Could Korea clarify whethe r under the Agricultural and Fishery Product Quality 
Management Act foreign GIs also can be registered/protected? Are the GIs registered under this Act 
have a publicly available database? In case of dispute which bodies (administrative/judicial) have 
compe tence to act?  
 WT/TPR/M/414/Add.1  
 
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  [ANSWER]  
Korea government implements a geographical indication registration system to improve the quality 
of agricultural and fishery products or processed agricultural and fishery products having 
geographical characteristics, to foster regi onal specialty industries, and to protect consumers.  
 The geographical indication database of agricultural products registered under the Act is available 
on the website (www.naqs.go.kr).  
 When there is a dispute over the right to geographical indication r egistered in Korea, a person 
whose rights have been infringed can go through judicial procedures by the Patent Court.  
 
Paragraph 3.258, page 130: indicates that a trademark containing GIs for wines or spirits originating 
in any WTO Member may not be registered (Trademark Act, Article 7(1)(xiv)). The use of GIs to 
identify wines or spirits that do not originate in the place indicated is prohibited, even if the true 
origin is given or the GI uses expressions such as "kind", "type", "style", or "imitatio n". 
 
EU question 55:  Article 10.21 of the EU -Korea Free Trade Agreement does not differentiate between 
geographical indications, namely wines, spirits, aromatised wines and foodstuffs shall be protected 
under the same level of protection. Could Korea clari fy how the high level of protection provided 
under the FTA for all GIs is implemented in the trademark legislation? If it is not implemented, are 
the relevant Articles of the FTA directly applicable in Korea?  
 
ANSWER : 
Under the Korea -EU FTA, all GIs protected in Korea, including wine, distilled wine, aromatic wine, 
and food, are protected under the same high level of protection. Protection (prohibition of 
unauthorized use) under Article 10.21 of the Korea -EU FTA is enforced in Article 3 -2 of the Unfai r 
Competition Prevention Act, and protection (prohibition of trademark registration) under Article 
10.23 of the Korea -EU FTA is enforced in Trademark Act 34(1) (xix).  
 
3.3.7.1.3 Plant variety protection  
Paragraph 3.259, page 130:  Protection for plant varieties is provided under the Patent Act and the 
New Varieties of Plants Protection Act. Breeders' rights are protected for 20 years from the 
registration date (25 years for fruit and forest trees). Protection is administered by MAFRA and the 
MOF. The registration of plant varieties remains entrusted to the Korea Seed and Variety Service 
(KSVS) for agricultural plants, MAFRA's National Forest Seed Variety Center (NFSV) for forest plants, 
and the MOF's National Institute of Fisheries Service (NIF S) for aquatic plants.  
 
EU question 56:  Could Korea indicate whether there is a publicly available database where plant 
variety rights are listed?  
 
ANSWER : 
Korea has the Korea Seed & Variety Service (KSVS ) responsible for agricultural plants, National 
Forest Seed and Variety Center (NFSV) for forest plants and National Institute of Fisheries Science 
(NIFS) for aquatic plants. These institutions publicly open the database of applications and 
registrations f or plant variety protection (PVP) on their respective website both in Korean and English. 
The relevant websites are as follow:  
- (Agricultural plants) https://www.seed.go.kr/seed_eng/index..do   
- (Forest plants) https://nfsv.forest.go.kr  
- (Aquatic plants)  http://www.nfis.go.kr/apvc/06_manage/01  
 
3.3.7.2 Copyright and related rights  
 
EU question 57 : As the report does not make reference to the issue of public performance rights for 
which there is an overly broad exception in the existing law, could Korea provide information on the 
changes made or foreseen in this regard? Could Korea provide more information on its efforts to 
improve collection, including for venues of smaller than 3000m2, and to expand the type of places 
subject to collection such as  fast food chains and bakeries?  
 
ANSWER : 
In August 2018, the revised enforcement  decree of the Copyright Act has been implemented to 
extend the application of public performance rights to cafe, draft beer pub, and fitness gym. 
Regarding the venues of small er than 3000m2, approximately 92,000 stores that were not obligated 
to bear public performance fee for performing music prior to the revision of the enforcement decree 
has been subject to the collection of the public performance  right fee. Collective manag ement WT/TPR/M/414/Add.1  
 
- 99 - 
 
  organizations are working to promote the right to users, raising awareness about public performance 
right. However, reflecting Covid -19 situation, performance  fees are exempted for the store that runs 
less than 10 days a month, and reduced 50% for th e store that runs 10 -20 days a month.  
 
3.3.7.3 Enforcement  
Paragraph 3.279, page 134: the report states that Korea continues to generally provide strong IPR  
protection and enforcement. Reportedly, IP -related concerns relate to, inter alia: counterfeit 
transhipments, especially via small express -shipped parcels; GIs; and a lack of deterrent -level civil 
and criminal penalties for IP violations.  
 
EU question 58 : Could Korea provide more information regarding the enforcement concerns related 
to GIs? Are there any available data on the value and volume of counterfeit products?  
 
ANSWER : 
In Korea, GIs are well protected at a level that satisfies the Korea -EU FTA (see answer to question 
55). Concerns over intellectual property, such as GIs in Korea, are briefly mentioned in the USTR's 
Trade Barrier Report (NTEp.329), and there is no additio nal information.  
Regarding counterfeit products of GIs protected under the FTA, there have been a total of two reports 
so far, one has been given recommendation  for corrective measures ('18), and one has been 
withdrawn ('19).  
 
Paragraph 3.280, page 134: The report explains the approach taken by enforcement authorities 
against online counterfeiting and piracy.  
 
EU question 59 : Could Korea indicate whether it also applies a policy which supports and/or 
facilitates business -to-business solutions to fight onl ine infringements, such as Memoranda of 
Understanding between platform providers and right holders?  
 
ANSWER : 
There is no applicable Korean Intellectual Property Office policy.  
 
Paragraph 3.280, page 134:  
 
EU question 60:  Could the Korean government provi de information about the enforcement of IPR in 
the pharmaceutical sector? What actions has the government of Korea taken or intends to take in 
order to enhance the patent filing system, in particular in the pharmaceutical sector?  
 
[ANSWER]  
For the convenience of applicants, the Korean government introduced a system to accept "free -form 
patent specifications" which has the same effect as "provisional applications" of the US and other 
countries. Applicants in all sectors, including the pharmaceutical sector, can use this system.  
 
Paragraph 3.289, page 137 : Between 2015 and 2020, trial requests concerning industrial property 
issues increased to 63,430 (54,172 in 2011 -14) cases; most cases involve patents (53%) and 
trademarks (41%) and were mostly reques ted by Korean holders (65%). Between 2016 and 2019, 
there were 3,559 cases (5,283 in 2011 -15) (mostly patent -related) filed at the Patent Court 
(Section  3.3.7.1), an appellate -level court, of which 3,548 were handled. The average time for 
handling cases ro se from 204 to 237 days for revocations and from 137 to 286 days for civil appeals, 
whereas the cases in which at least one party was a foreigner dropped from 301 (2018) to 
190 (2019).379 At the time of the previous Review, it seemed that sentences for IP infringements 
remained lower than international norms, and in particular compared with other countries in Asia 
and Europe. The authorities indicate that, in the case of other countries, there is a distinction 
between similar and identical infringement, whe reas in Korea, they are penalized under the same 
sentencing, thus making them hard to compare.  
 
EU question 61 : Is the Korean government planning to make a distinction between similar and 
identical infringements, and therefore increase the sentences and s anctions for IP infringements 
when necessary, in order to ensure adequate protection of IPR?  
 
ANSWER : 
We are in the process considering regulations to distinguish between the identical and similar 
infringements, but no specific plans have been made yet. WT/TPR/M/414/Add.1  
 
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  4 TRADE POLICIES BY SECTOR  
4.1 Agriculture and Livestock  
Paragraph 4.8, page 139:  The report notes that although agriculture contributed the same share of 
GDP (2%) in 2020 as in 2016, its share in employment has grown significantly, from 4.8% in 2016  
to 2020.  
 
EU question 62:  How does the Korea explain this increase in agricultural employment in spite of the 
stagnating share of the sector in GDP?  
 
ANSWER : 
The GDP of Korea and the GDP of the agricultural sector have shown similar growing from 2018 to 
2020, resulting in the same share of the GDP. The employment in the agricultural sector has grown, 
with number of employees in agricultural sector rising from 1,273 in 2016 to 1,445 in 2020.  
Scaling of agricultural companies and increased number of agricul tural corporations led to increased 
employment opportunities in agriculture, and this results from increased number of people returning 
to agriculture and rural villages, expanded employment and startups in agriculture, and support for 
relevant policies.  
 
Paragraph 4.12, page 140:  indicates that Korea plans to strengthen its agricultural innovation 
capacity to produce environmentally friendly and safe foods. Key policies include introducing 
environmental compliance conditions to direct payments and a new a gricultural environment 
preservation programme. The Government also aims to improve the environmental performance of 
livestock production by supporting the modernization of cattle sheds, and to revitalize the rural 
economy by promoting the return of people  to rural areas to engage in agriculture.  
 
EU question 63:  Could Korea provide more information on when the new agricultural environment 
preservation programme is planned to be introduced? Is there a draft programme available?  
 
ANSWER : 
The Agricultural Environment Conservation Programme was introduced in 2019 and it  includes 
individual and joint activities, implemented as tasks of the programme, by each area of agricultural 
environment, such as soil, water, landscape, living, heritage an d ecology.  
 
The overview of this programme is as below;  
a. Purpose: Enhancing public value of agriculture and creating a foundation to improve 
agricultural environment at the local level  
- Based on Article 9 (Prevention of Environmental Pollution from Agriculture and Fisheries) 
of the Act on the Promotion of Environment -friendly Agriculture and Fisheries and the 
Management of and Support for Organic Foods, etc.  
b. Contents of the Programme by Year: (Year 1) Education and consulting services for residents, 
environmental analysis and establishment of project implementation plan, (Year 2 -5) 
Implementation and evaluation of individual and joint activities  
c. Main activities: Various individual and joint activities are implemented by each agricultural 
environment area, including soil, water, landscape, heritage and ecology  
 
4.3 Mining and energy  
4.3.2 Energy  
 
Paragraph 4.81, page 155:  the report notes that Korea's Third Energy Master Plan aims at 
"strengthening the global competitiveness of the energy industry, by fostering future energy 
industries such as renewable energy".  
 
EU question 64:  Could Korea explain how it intends to promot e the global competitiveness of its 
clean energy sector? In particular, how does Korea assess the impact of local content requirements 
for clean energy projects (for instance in offshore wind) on the competitiveness of its clean energy 
industry?  
 
[ANSWER]  
Following the establishment of its hydrogen roadmap, Korea is creating a hydrogen ecosystem that 
covers the entire lifecycle from production and distribution to storage and utilization. Going forward, 
Korea will strengthen the clean hydrogen ecosystem by i ) establishing a clean hydrogen production 
system, ii) building distribution infrastructure to safely transport a large amount of hydrogen, and WT/TPR/M/414/Add.1  
 
- 101 - 
 
  iii) facilitate the utilization of hydrogen in a variety of sectors, including power generation, industries 
and transportation.  
 
Energy efficiency global markets such as high -efficient materials and energy solution services are 
expected to expand continuously. In order to support the increasing domestic and international 
demand for energy efficiency enterprises, we intend to foster related  industries by supporting  the 
development of energy efficiency -related technologies . 
 
4.3.2.2 Regulatory and institutional framework  
Paragraph 4.86, page 156  and paragraph 3.127: the report notes that during the period under 
review, sector -specific support measures benefited, among others, also the energy sector.  
 
EU question 65:  Could Korea provide an overview of the total amount and the rationale of public 
financial support gran ted to the energy/sector, in particular as regards renewable energy?  
 
[ANSWER]  
The budget for deploying renewable energy and improving technologies is about KWR 1.7 trillion in 
2021.  
 
4.3.2.3 Policies  
4.3.2.3.1 Border policies  
Paragraph 4.89, page 157 : As Korea relies on imported energy products, import tariffs are often low.  
 
EU question 66:  What is the tariff on hydrogen, and how does it relate to tariffs on fossil fuels, such 
as oil and gas? Is Korea considering to differentiate tariffs between CO2 -neutral and fossil -based 
new energy carriers, such as hydrogen and its derivatives? Is Korea planning to support initiatives 
related to a certification of green hydrogen or considering to establish its own certification scheme 
for green hydrogen in internati onal value chains?  
 
ANSWER : 
The WTO concession tariff on  hydrogen  of Korea is 5.5%, and the FTA tariff on hydrogen is 0% in a 
number of FTAs that Korea signed, between EU, U.S., China, etc. On the other hand, the tariff rates 
for major fossil fuels are 3% for motor spirit, 3% for gas oil, 0% for anthracite, 0% for bituminous 
coal. On the other hands, Korea is not considering to differentiate tariffs between CO2 -neutral and 
fossil-based new energy carriers.  
 
4.3.2.3.2 Domestic support  
Paragraph 4.91, page 157:  The Government allocated a significant part of its budget to implement 
the Green New Deal (Section 4.3.2 and 3.3.1.2). In addition, subsidies are provided to reduce 
emissions for old diesel vehicles, an d to support the purchase of natural gas, electric, and hydrogen 
fuel-cell vehicles. Prices of electricity are monitored or controlled (Sections 3.3.1.2 and 3.3.4.2).  
 
EU question 67:  How will Korea ensure technological neutrality of domestic support, not favouring 
one particular technology contributing to the objective of decarbonisation?  
 
[ANSWER]  
Korea provides purchase subsidies to expand the supply of electric vehicles and hydrogen vehicles, 
and the subsidies are provided differently depending on perfo rmance and price regardless of the 
country of production.  
 
4.3.2.4.2 Natural gas  
Paragraph 4.100, page 158:  the report mentions that Korea Gas Corporation (KOGAS), a 
state-owned vertically integrated company, purchases most of the LNG."  
Paragraph 4.101, pa ge 158:  says that Companies meeting the requirements of the Urban Gas 
Business Act and its Presidential Decree are allowed to import natural gas for their own use, or resell 
their unused LNG to overseas markets. They cannot sell their gas on the domestic m arket.  
Paragraph 4.102, page 158:  says KOGAS is the only wholesaler, and is also the transmission system 
operator, of gas in Korea.  
 
EU question 68:  Could Korea explain if, and if so, how, it will further reform its LNG and natural gas 
sector to allow more open and free trade, for instance by allowing  other companies than KOGAS to WT/TPR/M/414/Add.1  
 
- 102 - 
 
  import LNG (in addition to the companies who currently can import LNG t o cover their own demand), 
to become a wholesale LNG/natural gas trader within Korea, as well as to re -export LNG?  
 
[ANSWER]  
The wholesale business of natural gas in Korea is a public business that prioritizes the country's 
energy security by ensuring a re liable and uninterrupted supply. Since the wholesale business 
includes operations of LNG receiving terminals and pipeline networks, the Korean government 
granted the exclusive authority of natural gas wholesale to a state -owned company, Korea Gas 
Corporati on(KOGAS). However, the percentage of natural gas users who import gas for their own 
use instead of buying from KOGAS is increasing, hovering around 22%. Notably, the Korean gas 
market is growing more competitive.  
 
4.3.2.5 Electricity  
Paragraph 4.109, pa ge 159 : Retail prices are not set by the market; rather, they are regulated by 
the Government, through MOTIE, in accordance with the Electricity Utility Act and the Price 
Stabilization Act.  
Paragraph 4.113, page 159:  According to an IEA report, there is no independent electricity sector 
regulator in Korea. MOTIE remains the key regulatory entity. Its responsibilities include granting 
electricity business licences; approving market rules, transmission and distribution tariffs, and retail 
sales prices; and regulating wholesale electricity prices.  
Paragraph 4.115, page 159: KEPCO, a government -owned corporation, dominates the electricity 
sector.  
Paragraph 4.117, page 160 : KEPCO owns the electricity transmission and distri bution systems in 
Korea. It is the only operator of the distribution system, and the only electricity retailer.  
 
EU question 69:  Can Korea explain if and how it ensures a level playing field for domestic and 
international investors in renewable electricity  capacity?  
 
ANSWER : 
There is no discrimination against investment in domestic or overseas investment, and Korean 
government understand that global investment is actively being made in large -scale renewable 
energy businesses in Korea.  
 
4.3.2.6 New and renewable energy  
Paragraph 4.121, page 160 : Promoting energy from renewable sources is the core of Korea's energy 
target.  
 
EU question 70 : A central aspect of Korea's strategy to decarbonize the electricity supply is the 
expansion of rene wable energy capacity, in particular offshore wind. How is the Korean government 
ensuring unobstructed and equal access for international companies and transparency regarding 
offshore wind tenders?  
 
ANSWER : 
There is no discrimination against domestic overseas facilities in bidding related to offshore wind 
power.  
 
Paragraph 4.121, page 160:  Promoting energy from renewable sources is the core of Korea's energy 
target. Korea is committed to increasing the share of renewables in power generation to 20% by 
2030 and to 30% -35% by 2040. Currently, the share of new and renewable energy in TPES (2.4 % 
in 2019) is much lower than the IEA median (11%), and the share of renewable energy in power 
generation (4.9%) is also lower than the IEA median (27%).  
Paragraph 4.123, page 160: MOTIE formulates basic national plans for the promotion of new and 
renewabl e energy every five years. MOTIE also oversees the regulations for renewable electricity 
generation, including the allocation of permits.  
 
EU question 71 : Given the ambitious goals of the Green New Deal and the current rigid structure 
and vertically integr ated character of Korea's power sector, does Korea perceive a need to enhance 
competition in its power sector in order to reach the Green New Deal objectives in a cost -efficient 
way? 
 WT/TPR/M/414/Add.1  
 
- 103 - 
 
  ANSWER : 
Competition is enhanced  as the public share in the power generat ion sector falls in the mid - to 
long-term and the ratio of renewable energy increases thanks  to the expansion of renewable energy 
in the pursuit  of Korea's Renewable Energy 3020 policy.  
Competition has already been introduced in the power generation sector, especially in the case of 
LNG power generation projects  and thanks  to transition from coal to gas power , competition between 
KEPCO subsidiary  and private companies in Gas power generation is enhanced  
 
Paragraph 4.123, page 160:  Pursuant to the Act on Development, Use and Diffusion of New and 
Renewable Energy (Renewable Energy Act), MOTIE formulates basic national plans for the promotion 
of new and renewable energy every five years.  
 
EU question 72:  Currently, electricity generation from h ydrogen fuel cells is subsidized through the 
RPS and qualifies as renewable energy source, even though the hydrogen used as fuel might not be 
CO2-neutral. Is Korea planning to adjust the scheme, taking the emissions related to the fuel used 
into account?  
 
ANSWER : 
In order to expand the deployment of clean hydrogen in the future, we plan to operate "clean 
hydrogen portfolio standards  (chps) " 
 
4.4 Manufacturing  
4.4.2 Automotive  
Table 4.10, page 163:  Automobile supply and demand, 2016 -20. 
 
EU question 73 : Korea subsidises the purchase of electric cars and provides the respective charging 
infrastructure. What are the results so far? How many electric cars are on the streets (are 
registered)? Are there other measures to promote the shift to electromobility? I s there a deadline 
for the prohibition of combustion engine vehicles? Will Korea promote the deployment of fast 
charging stations for EV using international connection standards?  
 
[ANSWER]  
By September 2021, a cumulative total of 201,000 electric vehicles were registered, and a total of 
95,000 electric vehicle chargers were built. To accelerate the transition to zero -emission vehicles, 
the government is promoting support policies such as purchase subsidies, tax benefits, and charger 
installations. In addition, while imposing supply obligations on automobile manufacturers, we impose 
purchase obligations on public institutions and private companies.  
Currently, there is no separate ban period for internal combustion engine vehicles, and a fast charger 
using international connection standards is in the process of being established.  
 
4.4.3 Shipbuilding  
Paragraph 4.143, page 164:  Korea remains the second -largest shipbuilder in the world, after China.  
 
EU question 74:  as regard government support to shipbui lding, is Korea planning any future 
measures in order to avoid injurious pricing, as negotiated in the framework of the negotiations on 
the OECD shipbuilding agreement?  
 
[ANSWER]  
Korea has contributed to the progress and the policy direction of global shipbuilding industry in the 
WP6 of the OECD and will continue to do that.  
 
EU question 75:  Could Korea please explain the main characteristics of the Korean roadmap to 
respond to the LNG demand and indicate how the Korea ensures that no subsidies w ill be granted 
to ailing enterprises that do not have a credible restructuring plan based on realistic assumptions 
allowing the recipient to return to long term viability?  
 
[ANSWER]  
The roadmap is for promoting spread of environmental -friendly vessels to reduce pollution and 
protect marine environment. Only those who are certified as environmental -friendly can apply for 
those subsidies and a Committee will evaluate the soundness of those applicants by checking on 
credibility and performances  WT/TPR/M/414/Add.1  
 
- 104 - 
 
  Regarding Ecos hip, Korea announced in April 2021 the 14th long -term natural gas demand and 
supply plan spanning from 2021 to 2034, which contains LNG procurement strategy, demand and 
supply control measures, and natural gas infrastructure management plans. More specific ally, the 
plan covers natural gas infrastructure construction plans and the nation's gas demand and supply 
plan drawn in considerations of supply stability, price competitiveness, and strategic cooperation. 
② Korea does not provide natural gas subsidiaries  to neither public nor private companies.  
 
4.5 Services  
4.5.1 Features  
Paragraph 4.157, page 167:  SMEs may also benefit from digital technologies to reduce costs and 
expand markets. However, an OECD report considers that digital technologies are not used to their 
full potential in SMEs, which are concentrated in low -productivity and less knowledge -intensive 
services, such as wholesale and retail trade, transportation, accommodation, and food services. 
Compared with their counterparts in other OECD countries, Korean SMEs have more difficulties in 
hiring highly skilled university graduates because they o ffer less attractive jobs than do larger 
conglomerates. Korean authorities disagree and state that SMEs across the globe are now struggling 
to recruit new employees, and there is little evidence that Korean SMEs face a disproportionally 
challenging situati on compared to those in other OECD countries.  
With the goal of tackling the challenges described above, such as finding highly skilled university 
graduates, digitalization of SMEs and decarbonization of the most important economic areas, new 
policy underta kings might be needed.  
 
EU question 76:  Does Korea plan to take any specific measures in order to meet the challenges 
mentioned above?  
 
[ANSWER]  
The Ministry of SMEs and Startups  (MSS) of Republic of Korea declared "Transformation to the digital 
economy and Smart Korea" as its vision of the year 2020 and dedicated its resources , expertise and 
capabilities to achieve digitalization of MSMEs.  
 
As the unprecedented  pandemic hit hard  MSME in South Korea, the ministry has focused on 
strengthening the resilience of MSMEs through digitalization such as introduction of smart technology.  
The OECD conducted a study on South Korea's strategy for digitalization of MSME in the first half of 
2021, and the OECD recognizes the Korean government's  policies for MSMEs digitalization has 
achieved  the intended goal of enhancing SME's resilience and addressed the long standing challenge 
of low digital adoption among MSME in Korea.  
 
For more details, pl ease refer to the following policy report* jointly published on 30 June 2021 by 
the OECD and the Ministry of SMEs and Startups.  
 
 * Policy report: Enhancing SMEs' Resilience through digitalisation: The Case of Korea  
 
4.5.2 GATS and RTA commitments  
Paragraph 4.161, page 167:  During the review period, Korea also notified to the WTO its mutual 
recognition agreements  with the State of Texas (United States), and with Australia, on professional 
engineers.  
 
EU question 77:  Would a professional (engineer) covered by the MRAs listed in para 4.161 obtain 
any further rights beyond the commitments set out in Korea's GATS schedule (WTO document 
GATS/SC/48, 15 April 1994), in particular the horizontal commitments for entry and temporary stay 
of natural  persons in the category "(iii) Specialists" ?  
 
[ANSWER]  
Mutual Recognition Agreements with the State of Texas (United States), and with Australia, on 
professional engineers, regulate an duty that signing countries should recognise engineers from the 
other  signing countries as their domestic engineer. Both MRAs do not regulate any obligation related 
to entry or stay of natural persons.  
 
On the other side, WTO GATS regulates that natural persons in the category " "(iii) Specialists " is 
limited to a period no t exceeding three years that may be extended if extension is deemed to be 
necessary. This agreement is a commitment related to entry or stay of natural persons.  
 WT/TPR/M/414/Add.1  
 
- 105 - 
 
  Recognition of certificates or license should be separated with entry permission. Recognised 
engineers from Texas or Australia are not always permitted to enter Korean border. People who 
satisfy entry standard which is ruled by Korean laws is able to enter and stay in Korean territory.  
 
Since MRA and GATS regulated completely different duties(Mutua l recognition and Entry or Stay), 
it is impossible to judge whether a professional (engineer) covered by the MRAs  listed in para 4.161 
obtain any further rights beyond the commitments set out in Korea's GATS schedule.  
 
4.5.3 Financial services  
Table 4.12, page 168:  Structure of the financial system, 2015 and 2020.  
 
EU question 78:  Footnote (b) on specialised banks enumerates five of them whereas only three of 
them are referred to in the table. Could Korea add the missing ones?  
 
ANSWER : 
 
Institutions  No.of  
 establishments  Assets  
(\ billion)  Loans and discounts  
(\ billion)  
2015  2020  2015  2020  2015  2020  
Specialized banks  5 5 871,316  1,199,493  545,466  721,829  
 KDB  1 1 255,931  290,841  121,128  137,484  
 Korea EXIM  1 1 81,890  97,590  65,602  70,222  
 IBK  1 1 241,806  381,793  167,041  237,460  
 NH bank  1 1 261,295  376,702  172,783  241,879  
 SH bank  1 1 30,393  52,566  19,405  35,652  
 
Footnote(b) The Korea Development Bank (KDB), the Export -Import Bank of Korea (EXIM Bank), 
the Industrial Bank of Korea (IBK),the National Agricultural Cooperative Federation, and the National 
Federation of Fisheries Cooperatives.  
 
Paragraph 4.165, page 169:  The report notes that "during the review period, more foreign financial 
companies left than entered the Korean market", that "the number of foreign bank branches dropped 
from 39 in 2015 to 36 in 2020" and that "in 2021, foreign financial institutions accounted for about 
10.6% of financial sector assets (11% in 2015)".  
 
EU question 79:  How does the Korean government explain the reduced involvement and the 
declining share of foreign financial institutions on the Korean market? Does the Korean government 
consider this trend as problematic, and possibly related to any de facto  or de jure  discrimination 
against foreign financial institutions?  
 
ANSWER : 
Due to t he low interest rate, economic contraction caused by Covid19 pandemic and development 
of non -face-to-face business in the financial sector, the withdrawal of off -line branches is a global 
trend.  
Korea is pursuing policies regarding stabilizing financial m arkets and establishing an advanced 
financial order abiding by the principle of FTA, such as National Treatment and Most Favoured 
Treatment between local financial institutions and foreign ones.  
 
4.5.3.2 Insurance  
4.5.3.2.2 Regulatory framework  
Paragraph 4.200, page 175:  There are no foreign equity restrictions. Insurance companies, both 
domestic and foreign, must maintain funds of at least KRW 30 billion to do business in Korea. This 
requirement changed to KRW 3 b illion for insurance branches. If insurers seek to handle certain 
insurance products, but not all, they need to maintain funds of at least KRW 5 billion, pursuant to 
presidential decrees.  
 
EU question 80:  Could Korea add a similar brief description on fore ign equity restrictions, as well as 
the minimum capital requirements, in the banking sector – for instance at the end of the section on 
banking (after 4.190)?  
 
ANSWER : 
<Minimum Capital Requirement>  
A bank : KWR 100 billion  WT/TPR/M/414/Add.1  
 
- 106 - 
 
  A local bank & an Internet only bank: KWR 25 billion  
 
There are no foreign equity restriction. However, no same person shall hold stocks of a bank in 
excess 10/1000 of its issued stocks. Where a person who intends to hold stocks of a bank pursuant 
to the Banking Act is a foreign person, it should be a financial institution or a financial holding 
company constituted under the laws of another country.  
 
4.5.5 Transport services  
Paragraph 4.230, page 180:  Both road and air transportation are subject to compe tition laws, while 
the international liner transport segment of maritime transport is exempt.  
 
EU question 81:  Could Korea provide details on the reasoning behind the exemption of international 
liner transport from competition laws and the functioning of this exemption in practice?  
 
[ANSWER]  
According to Article 29 of the Marine Transportation Act, joint activities are limitedly allowed to 
international  liner transport companies, if a provider of overseas cargo transportation services enter 
into an agreement on cargo rates etc and file a report on its terms with the Ministry of Oceans and 
Fisheries.  
 
4.5.5.1 Maritime transport  
Paragraph 4.233, page180:  Following the bankruptcy of Hanjin Shipping – once one of the world's 
top 10 shipping companies – in February 2017, MOF announced its five -year plan in April 2018 to 
rebuild the shipping industry. The Plan aims to: secure stable cargo volumes based on comp etitive 
maritime services and freight rates, by operating a cooperative mechanism for mutual benefit 
between shipping companies and shippers; restore shipping competitiveness by increasing the 
number of low -cost and high -efficiency ships, expanding the nat ional flag fleet with an additional 
200 new vessels including ultra large container ships, and supporting the introduction of eco -friendly 
ships; and encourage shipping companies to continue maritime innovation by enhancing cooperation 
among themselves to secure their management stability, promoting cooperation among container 
shipping lines, supporting small and medium -sized shipping companies, securing domestic and 
overseas base port terminals, and monitoring shipping transactions.  
 
EU question 82:  Could Korea explain how the "cooperative mechanism for mutual benefit between 
shipping companies and shippers" functions, as well as the "enhanced cooperation" between shipping 
companies that is encouraged under the five -year plan? Could Korea give more details on the role 
and nature of support provided by the Korean public authorities in both of these mechanisms? Could 
Korea provide practical examples of the cooperation between shipping companies and shippers, and 
between shipping companies?  
 
ANSWER : 
The cooperative mechanism is a mere symbol that indicates the relationship between the restoration 
of shipping competitiveness and ship construction. There is no practical differentiated treatment  
between domestic and foreign ship builders regarding suppor t from public bodies such as the Korean 
Ocean Business Corporation. Cooperation between shipping companies refers to voluntary 
cooperation between companies. Reconstructing ship routes to prevent excessive competi tion can 
be an example.  
 
Paragraph 4.232, p age 180:  provides some details on the MOF's five -year plan to rebuild the 
shipping industry.  
 
EU question 83: Could Korea explain what they have done to keep freight rates in check in the 
current environment where container rates are reaching new record highs everywhere, particularly 
on the East -West and transpacific routes? Would the Korean government kindly expl ain what 
measures they are envisaging to promote innovation through cooperation among shipping lines?  
 
ANSWER : 
There are no special regulations for international freight rates, but companies should declare their 
rates before 15 days in case they apply flu ctuation rates for fair competition. There is no plan to 
promote innovation through cooperation among shipping lines currently.  
 WT/TPR/M/414/Add.1  
 
- 107 - 
 
  Paragraph 4.234, page 181:  the report states that the five -year plan helped HMM, formerly known 
as Hyundai Merchant Marine, move up its global ranking as the eighth -largest container carrier in 
the world in terms of capacity (up from 13th before 2018). It also helped increase the o perating 
revenue in the shipping sector, and the container shipping capacity.  
 
EU question 84:  Could Korea provide further information on the status of such five -year plan, what 
type of support has been granted to shipbuilding and/or shipping services and  how does Korea 
reconcile the compatibility of its plan with multilateral trading rules, namely the GATT 1994 and the 
ASCM?  
 
[ANSWER]  
The 5 year plan includes shipping finance and liquidity provisions for shipping companies. With 
regard to ship constructio n supports, there are no discrimination between domestic and foreign 
shipbuilders, and liquidity provisions are based on market based interest rates.  
 
Paragraph 4.235, page 181:  states that the Government has also been making efforts to build a 
global mar itime power hub by win -win partnerships between shipping and shipbuilding, and to 
enhance the competitiveness of the shipbuilding industry by developing technology to build 
eco-friendly vessels and supporting vessels going green. Progress made includes: (i ) adjusting 
overlapped routes and developing new routes; (ii) providing subsidies (to shipping lines) to replace 
coastal cargo ships by eco -friendly vessels, with a target to build up to 100 green vessels by 2022; 
(iii) establishing infrastructure for LNG -powered vessels; (iv) rehabilitating the shipbuilding industry 
by localizing materials for marine plants until 202295; and (v) implementing renewal projects.  
 
EU question 85:  What measures is the Korean government taking to ensure that its subsidies are 
not distorting the level playing field between Korean market players and their foreign competitors? 
What other measures is the Korean government taking to ensure that the desir ed enhancement of 
the competitiveness of the shipbuilding industry remains compatible with effective competition, 
notably in view of the global nature of the markets in question? Could Korea provide further 
information on what type of support has been gran ted to shipbuilding and/or shipping services and 
how does Korea reconcile the compatibility of such support with multilateral trading rules (such as 
the GATT 1994 and the ASCM)?  
 
ANSWER : 
For the former part, please look at the answer  for Q84. The Korean government  supports 
construction costs in cases where companies transfer their vessels to eco -friendly ones. However, 
the support is not limited to domestic ones, and there were 5 cases where foreign shipbuilders were 
subsidised. Korea is implementing measur es for fair trade.  
 
With the acknowledgement that the level playing field is one of the most important factors, Korean 
policy in shipbuilding industry has been made within the multilateral trading rules. From the private 
sector, it was known that each shipbuilding company in Korea is making efforts to enhance its 
competitiveness by increasing the productivity and reducing the cost through the technology 
development.  
 
Paragraph 4.241, page 182: the report states that under the Ship Act (Article 6), foreign vessels are 
not permitted to engage in cabotage. However, coastal trade is allowed if specified by law or treaty, 
approved by the MOF, or if it is to avoid marine accident or marine capture. Fo r example, coastal 
trade has been allowed to be carried by foreign vessels between Busan and Gwangyang ports since 
2003, and between Incheon and Gwangyang ports since 2005, both with no time limit.  
 
EU question 86 : Could Korea specify all the current exce ptions to the prohibition of cabotage services 
by foreign ship -owners (i.e. between which ports foreign service providers are allowed to operate)?  
 WT/TPR/M/414/Add.1  
 
- 108 - 
 
  ANSWER : 
 
 Starting 
Year Period  Scope   
Pusan~Gwangyang  2003 Continued  Export, import 
Containers  Permmision from the 
regional administration 
body required  
Incheon~Gwanyang  2005 Continued  Export, import 
Containers  Permmision from the 
regional administration 
body required  
Others  (Pyeongtaek Dangjin, 
Kunsan, Gwangyang, Masan, 
Incheon, Ulsan, Mokpo, 
Pusan)  2016 Untill 
30.06. 2022 Export, import 
mobilities  Permmision from the 
regional administration 
body required  
 
4.5.5.2 Air transport  
Section 4.5.5.2, page 183  
 
EU question 87 : In Europe policy aims to shift traffic to rail for short distances. Are there similar 
efforts in Korea? Is there an emissions trading system for air traffic other than Corsia?  
 
ANSWER : 
In order to realize carbon neutrality in the aviation sector, various policies are being promoted, 
including the introduction of high -efficiency eco -friendly aircraft, expansion of bio air  oil, and 
installation of hydrogen cars/electric vehicles and relate d infrastructure at airports. We are not yet 
considering how to reorganize the air route.  
In addition to CORSIA, the emission trading system has been in effect since 2015 for domestic flights 
operating in Korea.  
 
Paragraph 4.256, page 185 : Take -off and la nding slots are allocated in the order of priority, 
according to slots retained from the previous season for scheduled air services, slots used for 
scheduled air services in the previous equivalent and non -equivalent seasons, and new slots 
requested for sc heduled and non -scheduled air services. Slots are not transferable. Unused slots are 
collected according to relevant regulations and are re -allocated if necessary.  
 
EU question 88:  Could Korea indicate if any flexibility in slot allocation has been introdu ced in the 
wake of the pandemic?  
 
ANSWER : 
If the Minister of Land, Infrastructure and Transport admits that the reason for the suspension of 
aircraft is due to the spread of infectious diseases, the recovery of slots can be suspended during 
the period, and the above conditions are applied to non -operation of aircraft due to the global spread 
of COVID -19. 
 
4.5.6 Distribution services with a specific focus on e -commerce  
Paragraph 4.277, page 187 : E-commerce is mainly regulated under the Act on Con sumer Protection 
in Electronic Commerce (Act No. 15141), which was partially amended in November 2017. The 
authorities state that this Act is currently being fully revised, and the pre -announcement of 
legislation was made in March 2021.  
 
EU question 89:  Could Korea provide more information on the revision of the Act on Consumer 
Protection in Electronic Commerce, in particular regarding the scope of the envisaged changes and 
the timeline for the implementation of the revised legislation?  
 
ANSW ER: 
Since March 2021, amendments to the "E -commerce Act", which has similar details to the 
pre-announced bill by the government, have been proposed to the National Assembly and are set to 
be deliberated. However, it is unsure when the act will pass the Nat ional Assembly and take into 
effect. The core of these bills is to change the regulatory system to suit the new e -commerce 
environment, which has changed with online platform at the center of it, not sellers. Prior to the 
emergence of online platforms such  as open markets, online transactions took place directly between 
sellers and consumers. As a result, the original "E -commerce Act" enacted 20 years ago focused on 
the obligations and responsibilities of sellers to protect consumers, and what sellers shoul d not do. 
Now, 20 years later, the e -commerce environment has changed tremendously. Online platforms WT/TPR/M/414/Add.1  
 
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  such as open markets have emerged, connecting consumers and sellers, and are also deeply 
involved in transactions between them. Instead of looking for indi vidual online shops as in the past, 
consumers turn to open markets such as Coupang and Tmon for their shopping, and sellers are also 
using platforms provided by open markets instead of opening their own websites. It has been a long 
time since these platfor m-oriented transactions have become the norm of e -commerce, but the 
"E-commerce Act" still puts much emphasis on sellers' obligations and responsibilities without much 
change. The bills proposed at the National Assembly are intended to improve this problem  and 
impose platforms appropriate obligations and responsibilities for consumer protection.  
 
In addition, in the case of delivery of alcoholic beverages at restaurants, regulations do not 
discriminate between domestic and imported alcoholic beverages, and it is also possible to deliver 
imported alcoholic beverages with food.  
 
 
EUROPEAN UNION  – REVISED ANSWERS  
Paragraph 3.21, page 8:  In October 2020, Korea pledged to achieve carbon neutrality by 2050 and 
announced the 2050 Carbon Neutral Strategy in December 2020.  
 
EU question 4 : Could Korea provide information on how it plans to advance this objective and what 
impact this policy woul d have on its trade policy?  
 
ANSWER : 
In October 2020, the Korean government declared to move towards the goal of carbon neutrality by 
2050. Later in December 2020, related ministries jointly established the 2050 carbon -neutral action 
plan, and in May this year, set up the presidential committee of carbon neutrality, which acts as the 
center of governance in implementing the 2050 carbon neutrality.  
In August this year, the committee disclosed the first draft of 2050 carbon neutrality scenarios, 
laying out Korea 's vision for a carbon neutral future in 2050. In September this year, the government 
enacted the Framework Act on Carbon Neutrality and Green Growth, which enshrines the 2050 vision 
and its implementation mechanism in law. As a mid -term target to ach ieve the 2050 long -term goal, 
Korea plans to enhance its 2030 NDC target, which will be presented to the international community 
at COP26 in coming November.  
 
The policy direction for so -called green trade, which requires a balance between the value of th e 
environment and the growth of trade scale, is expected to increase.  
In particular, carbon neutrality can become a new regulation for small and medium -sized enterprises 
(SMEs) with relatively limited financial resources or information.  
 Therefore, in preparation for the implementation of the carbon -neutral goal, the main goal of future 
trade policy is to enhance the capability of exporting SMEs and SMEs from the product design stage 
to comply with procedures to achieve the carbon -neutral  goal and use it as an opportunity to expand 
their entry into the global market.  
 
Paragraph 4.36, page 13: The report mentions that "the Korean Government is committed to 
improving the quality of foreign investment, enhancing the linkage with Korean indust rial policies".  
 
EU question 10:  Could the Korea explain how the "quality" of foreign investment is determined and 
what policies it pursues to improve the quality of foreign investment and enhance the linkage with 
Korean industrial policies?  
 
ANSWER : 
High value -added(or high -quality) investment mainly refers to investment in  cutting -edge technolo
gy sectors or emerging industries legally/statutorily determined by related regulations which are re
viewed upon request or once in every 3 years.  
 
In order to att ract these high value -added(or high -quality) investment, the priorities of different 
target companies are determined and managed through database. This allows concentrating IR 
capabilities on the investments of higher qualities.  
 
3.3.7.1.2 Trademarks  
Paragraph 3.255, page 130:  the report indicates that Geographical indications (GIs) remain 
protected under the Trademark Act, the Agricultural and Fishery Products Quality Control Act, and WT/TPR/M/414/Add.1  
 
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  the Unfair Competition and Trade Secrets Prot ection Act. The Trademark Act and the Fishery 
Products Quality Control Act protect GIs that are registered and provide a registration process, while 
the Unfair Competition and Trade Secrets Protection Act protects unregistered GIs when their 
protection und er the Trademark Act or the Agricultural and Fishery Products Quality Control Act has 
become ineffective  
 
EU question 52:  Could Korea clarify what is the scope of protection for unregistered GIs? Can Korea 
provide a list for unregistered GIs?  
 
ANSWER:  
GIs protected under the FTAs signed by Korea are protected as unregistered GIs under the Unfair  
Competition and Trade Secrets Protection Act, so the scope of protection for unregistered GIs are 
as stipulated in the Unfair Competition and Trade Secrets Protect ion Act in line with the FTA signed 
by Korea.  The lists  of unregistered GI can be found in the agreements of the Korea -EU FTA, the 
Korea -Canada FTA, the Korea -Turkey FTA, the Korea -Chile FTA, the Korea -Peru FTA, and the Korea -
UK FTA.  
 
Paragraph 3.258, page  130: indicates that a trademark containing GIs for wines or spirits originating 
in any WTO Member may not be registered (Trademark Act, Article 7(1)(xiv)). The use of GIs to 
identify wines or spirits that do not originate in the place indicated is prohibi ted, even if the true 
origin is given or the GI uses expressions such as "kind", "type", "style", or "imitation".  
 
EU question 55:  Article 10.21 of the EU -Korea Free Trade Agreement does not differentiate between 
geographical indications, namely wines, spi rits, aromatised wines and foodstuffs shall be protected 
under the same level of protection. Could Korea clarify how the high level of protection provided 
under the FTA for all GIs is implemented in the trademark legislation? If it is not implemented, are 
the relevant Articles of the FTA directly applicable in Korea?  
 
ANSWER : 
In trademark legislation, a high level of protection provided for GIs  protected under the Korea -EU 
FTA is implemented through Article 34(1)(xix) of the Trademark Act . According to page 51902 of 
the Trademark Examination Guidelines corresponding to Article 34(1)(xix) of the Trademark, the 
registration of a trademark shall also be refused if the trademark consist of a GI protected under 
the FTA which is accompanied by ex pressions such as "kind", "type", "style", "imitation " or the like.  
 
3.3.7.3 Enforcement  
Paragraph 3.279, page 134:  the report states that Korea continues to generally provide strong IPR 
protection and enforcement. Reportedly, IP -related concerns relate to , inter alia: counterfeit 
transhipments, especially via small express -shipped parcels; GIs; and a lack of deterrent -level civil 
and criminal penalties for IP violations.  
 
EU question 58 : Could Korea provide more information regarding the enforcement concerns related 
to GIs? Are there any available data on the value and volume of counterfeit products?  
 
ANSWER:  
GIs are well protected in Korea at a level that satisfies the Korea -EU FTA (see answer to question 
55), and the concern over GIs in Korea is the USTR's opinion.  
 
The enforcement performance  of KIPO, KIPO -Police, KIPO -local government  
  2018  2019  2020  
Arrest (criminal ) People  361 376 617 
Confiscation (criminal ) Parcel  720 thousand  6,300 thousand  540 thousand  
Recommendation of 
correction (administative)  People  1,651  1,679  1,539  
 
 
  WT/TPR/M/414/Add.1  
 
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  EUROPEAN UNION – FOLLOW -UP QUESTIONS  
Paragraph 3.156, page 99: The report notes that Korea made 348 new notifications (281 in 2012 -15), 
of which 323 were regular, under the WTO TBT Agreement.  
EU question 33: Does Korea in general have a policy of replying to WTO member comments on 
TBT notifications? What is the average time taken to reply to these comments?  
ANSWER: In Accordance wit h Articles 2.9 and 5.6 of the WTO TBT Agreement, comments from 
WTO Members on TBT notifications are conveyed via TBT Enquiry Points to Korea's competent 
regulatory authorities. The comments are then fully reviewed, and Korea endeavours to reply within 
60 days in general.  
 
1. EU follow -up question : Could Korea clarify if Korea replies to comments that arrive after the 
deadline of the commenting period, or if Korea has a consistent policy of not replying to late 
comments?  
 
[Answer]  
Whether Korea can reply to comments that arrive after the deadline of the commenting period 
depends on various factors such as the regulatory enforcement schedule of each competent 
authorities. So if it is difficult to submit comments within commenting period, it is recommended to 
request an extension of the commenting period.  
 
Paragraph 3.157, page 99: During the review period, Members raised specific trade concerns (STCs) 
at the Committee on Technical Barriers to Trade regarding several measures under consideration or 
taken by Kore a (e.g. ballast water, textile products for infants, warning on alcoholic beverages 
drinking, package recycling, energy efficiency management equipment, household chemical and 
biocidal products, and wood products). The testing regime for textile products f or infants applicable 
in Korea is not in line with the standards applied in most developed countries, significantly increasing 
the cost of distribution for retailers.  
EU question 34: Is Korea considering a reform of its practices in this matter?  
ANSWER: For STCs raised against Korea in regular meetings of the WTO TBT Committees, the 
requests are reviewed by Korea's competent regulatory authorities. The review results are then 
officially submitted, and additional replies are conveyed via Members' TBT Enqui ry Points as 
necessary.  
 
2. EU follow up question : Could Korea please indicate its envisaged timeline to provide responses?  
 
[Answer]  
If EU delivers additional opinions on STCs  discussed in the last WTO TBT Committees, Korea will 
deliver the opinions reviewed by competent authorities via TBT Enquiry Points  
 
3.3.7.2 Copyright and related rights  
EU question 57: As the report does not make reference to the issue of public performa nce rights for 
which there is an overly broad exception in the existing law, could Korea provide information on the 
changes made or foreseen in this regard? Could Korea provide more information on its efforts to 
improve collection, including for venues of smaller than 3000m2, and to expand the type of places 
subject to collection such as fast food chains and bakeries?  
ANSWER: In August 2018, the revised enforcement decree of the Copyright Act has been 
implemented to extend the application of public perform ance rights to cafe, draft beer pub, and 
fitness gym. Regarding the venues of smaller than 3000m2, approximately 92,000 stores that were 
not obligated to bear public performance fee for performing music prior to the revision of the 
enforcement decree has b een subject to the collection of the public performance right fee. Collective 
management organizations are working to promote the right to users, raising awareness about public 
performance right. However, reflecting Covid -19 situation, performance fees are  exempted for the 
store that runs less than 10 days a month, and reduced 50% for the store that runs 10 -20 days a 
month.  
 
3. EU follow up question : Could Korea provide a reference to the 2018 revised enforcement decree 
of the Copyright Act mentioned in the answer? Is the decree publicly available and if yes, where can 
it be found?  
 
[Answer]  
Please find attached  2018 revised enforcement decree of the Copyright Act Article 11 and refer to WT/TPR/M/414/Add.1  
 
- 112 - 
 
  the law information center, www.law.go.kr .  
 
Paragraph 4.200, page 175: There are no foreign equity restrictions. Insurance companies, both 
domestic and foreign, must maintain funds of at least KRW 30 billion to do business in Korea. This 
requirement changed to KRW 3 billio n for insurance branches. If insurers seek to handle certain 
insurance products, but not all, they need to maintain funds of at least KRW 5 billion, pursuant to 
presidential decrees.  
 
EU question 80: Could Korea add a similar brief description on foreign equity restrictions, as well as 
the minimum capital requirements, in the banking sector – for instance at the end of the section on 
banking (after 4.190)?  
 
ANSWER: <Minimum Capital Requirement> A bank: 100 billion Won ; A local bank & an Internet 
only bank: 25 billion Won. There are no foreign equity restriction. However, no same person shall 
hold stocks of a bank in excess 10/1000 of its issued stocks. Where a person who intends to hold 
stocks of a bank pursuant to the Banking Act is a foreign person, it should be a financial institution 
or a financial holding company constituted under the laws of another country.  
 
4. EU follow -up question : Could Korea clarify if this means that any acquisitions above 10/1000 of 
the issued stock are possible, but subjec t to the conditions set out in the Banking Act?  
 
[Answer]  
The same person may hold stocks of a bank by obtaining approval from the FSC, exceeding the limit.  
 
Paragraph 4.235, page 181: states that the Government has also been making efforts to build a 
global maritime power hub by win -win partnerships between shipping and shipbuilding, and to 
enhance the competitiveness of the shipbuilding industry by developing technology to build eco -
friendly vessels and supporting vessels going green. Progress made inclu des: (i) adjusting 
overlapped routes and developing new routes; (ii) providing subsidies (to shipping lines) to replace 
coastal cargo ships by eco -friendly vessels, with a target to build up to 100 green vessels by 2022; 
(iii) establishing infrastructure f or LNG -powered vessels; (iv) rehabilitating the shipbuilding industry 
by localizing materials for marine plants until 202295; and (v) implementing renewal projects.  
 
EU question 85: What measures is the Korean government taking to ensure that its subsidies are 
not distorting the level playing field between Korean market players and their foreign competitors? 
What other measures is the Korean government taking to ensure  that the desired enhancement of 
the competitiveness of the shipbuilding industry remains compatible with effective competition, 
notably in view of the global nature of the markets in question? Could Korea provide further 
information on what type of suppor t has been granted to shipbuilding and/or shipping services and 
how does Korea reconcile the compatibility of such support with multilateral trading rules (such as 
the GATT 1994 and the ASCM)?  
 
5. EU follow -up question:  
As regards the government support to South Korean shipyards, the EU would like to know whether 
South Korea is planning any future measures at national or international level in order to avoid 
injurious pricing in accordance with the definition of the (not yet applied) OECD shipbuilding 
agreement (i.e. vessels of one Party are sold at less than their normal value to a national in another 
Party)"?  
 
[Answer]  
It is difficult to derive consensus on the injurious price in the shipbuilding sector, which is made to 
order that reflects the requirements of shipping companies(custom -method), so it is desirable to 
secure fair competition conditions through subsidy regulation rather than injurious price.  
Korea has been and will continue to participate constructively in the global shipbuilding in dustry 
policy discussion to secure such level playing field through the OECD Shipbuilding Working 
Group(WP6).  
 
Paragraph 4.277, page 187: E -commerce is mainly regulated under the Act on Consumer Protection 
in Electronic Commerce (Act No. 15141), which was partially amended in November 2017. The 
authorities state that this Act is currently being fully revised, and the pre -announcement of 
legislation was made in March 2021.  
 WT/TPR/M/414/Add.1  
 
- 113 - 
 
  EU question 89: Could Korea provide more information on the revision of the Act on C onsumer 
Protection in Electronic Commerce, in particular regarding the scope of the envisaged changes and 
the timeline for the implementation of the revised legislation?  
 
ANSWER: Since March 2021, amendments to the "E -commerce Act", which has similar deta ils to the 
pre-announced bill by the government, have been proposed to the National Assembly and are set to 
be deliberated. However, it is unsure when the act will pass the National Assembly and take into 
effect. The core of these bills is to change the re gulatory system to suit the new e -commerce 
environment, which has changed with online platform at the center of it, not sellers. Prior to the 
emergence of online platforms such as open markets, online transactions took place directly between 
sellers and co nsumers. As a result, the original "E -commerce Act" enacted 20 years ago focused on 
the obligations and responsibilities of sellers to protect consumers, and what sellers should not do. 
Now, 20 years later, the e -commerce environment has changed tremendous ly. Online platforms 
such as open markets have emerged, connecting consumers and sellers, and are also deeply 
involved in transactions between them. Instead of looking for individual online shops as in the past, 
consumers turn to open markets such as Coupa ng and Tmon for their shopping, and sellers are also 
using platforms provided by open markets instead of opening their own websites. It has been a long 
time since these platform -oriented transactions have become the norm of e -commerce, but the "E -
commerce Act" still puts much emphasis on sellers' obligations and responsibilities without much 
change. The bills proposed at the National Assembly are intended to improve this problem and 
impose platforms appropriate obligations and responsibilities for consumer protection.  
 
6. EU follow -up question : Could Korea provide more information on the obligations and 
responsibilities with regard to consumer protection that would be imposed on online platforms in the 
revised Act on Consumer Protection in Electronic Commerc e? 
 
[Answer]  
If the revision of the "E -commerce Act" passes the National Assembly, platforms will bear various 
obligations and responsibilities. First of all, platforms are obligated to inform consumers of:  
(a) how they determine product search ranking and how they co llect, manage and delete consumer 
reviews;  
(b) whether they use personalized advertising;  
(c) whether they are a direct seller or an intermediary of a certain product;  
(d) how they fulfil an order from order receipt and payment to delivery between sellers and buyers.  
They also assume liability for consumer harm if necessary:  
(a) they share the liability of consumer compensation with the seller, when they mislead consumers 
into believing that they are a first party platform, not third -party marketplace thr ough a false or 
misleading marketing and communication;  
(b) they also take responsibility for consumer compensation when consumer harm occurs from their 
brokerage during fulfilment from order receipt and payment to delivery between sellers and buyers.  
 
Paragraph 4.161: During the review period, Korea also notified to the WTO its mutual recognition 
agreements with the State of Texas (United States), and with Australia, on professional engineers . 
 
7. EU follow up question:  Could Korea provide more information if a professional (engineer) covered 
by the MRAs listed in para 4.161 obtains any further rights beyond the commitments set out in 
Korea's GATS schedule (WTO document GATS/SC/48, 15 April 1994), in particular the horiz ontal 
commitments for entry and temporary stay of natural persons in the category "(iii) Specialists" ?  
 
[Answer]  
Mutual Recognition Agreements with the State of Texas (United States), and with Australia, on 
professional engineers, regulate an duty that si gning countries should recognise engineers from the 
other signing countries as their domestic engineer. Both MRAs do not regulate any obligation related 
to entry or stay of natural persons.  
 
On the other side, WTO GATS regulates that natural persons in th e category " "(iii) Specialists " is 
limited to a period not exceeding three years that may be extended if extension is deemed to be 
necessary. This agreement is a commitment related to entry or stay of natural persons.  
 
Recognition of certificates or licens e should be separated with entry permission. Recognised 
engineers from Texas or Australia are not always permitted to enter Korean border. People who 
satisfy entry standard which is ruled by Korean laws is able to enter and stay in Korean territory.  WT/TPR/M/414/Add.1  
 
- 114 - 
 
  Since MRA and GATS regulated completely different duties(Mutual recognition and Entry or Stay), it 
is impossible to judge whether a professional (engineer) covered by the MRAs listed in para 4.161 
obtain any further rights beyond the commitments set out in Korea 's GATS schedule.  
 
  WT/TPR/M/414/Add.1  
 
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  EUROPEAN UNION - APPENDIX TO FOLLOW -UP QUESTION 3  
Article 11 (Exception of Public Performance with respect to Phonogram, etc. Published for 
Commercial Purpose)  "Cases prescribed by Presidential Decree " in the proviso to Article 29  (2) of 
the Act means any of the following public performances: Amended by Presidential Decree No.  20676, 
Feb. 29, 2008; Presidential Decree No.  21634, Jul.  22, 2009; Presidential Decree No.  21676, 
Aug. 6, 2009; Presidential De cree No.  26333, Jun.  22, 2015; Presidential Decree No.  26398, 
Jul. 13, 2015; Presidential Decree No.  27503, Sep.  21, 2016; Presidential Decree No.  27970, 
Mar. 29, 2017; Presidential Decree No.  28251, Aug.  22, 2017.  
1. The following public performances pre sented at a place of business pursuant to 
subparagraph  8 of Article  21 of the Enforcement Decree of the Food Sanitation Act:  
(a) A public performance presented at business establishments selling coffee or other 
alcohol -free drinks prescribed in the standar d classification concerning industries the 
Commissioner of the Statistics Korea publicly notify pursuant to Article  22 of the 
Statistics  Act (hereinafter referred to as the "Korean Standard Industrial Classification ") 
among rest restaurants prescribed in subparagraph  8 (a) of Article  21 of the Enforcement 
Decree of the Food Sanitation Act;  
(b) A public performance presented at business establishments, such as draft beer shops 
or other liquor establishments prescribed by the Korean Standard In dustrial Classification 
among general restaurants prescribed in subparagraph  8 (b) of Article  21 of the 
Enforcement Decree of the Food Sanitation Act;  
(c) A public performance presented at a karaoke bar or an entertainment bar prescribed in 
subparagraph 8  (c) or (d) of Article  21 of the Enforcement Decree of the Food  Sanitation 
Act; 
(d) A public performance presented at a place of business that does not fall under any of 
items  (a) through (c), whose part of the main contents of business is to allow the audi ence 
to appreciate music or cinematographic works, equipped with the equipments fit for 
appreciating music or cinematographic works;  
2. A public performance given at any racecourse prescribed under the Korea Racing Authority  Act 
and any bicycle race track or motorboat racing area prescribed under the Bicycle and Motorboat 
Racing Act;  
3. A public performance given at the following facilities prescribed by the Installation and 
Utilization of Sports Facilities Act:  
(a) Specialized sports facilities prescribed by Ordinance of the Ministry of Culture, Sports 
and Tourism among specialized sports facilities prescribed in Article  5 of the Installation 
and Utilization of Sports Facilities Act;  
(b) Golf courses, dance institutes, dance halls, skiing grounds, aerobic d ance halls, or 
physical training centers in attached Table  1 of the Enforcement Decree of the Installation 
and Utilization of Sports Facilities Act;  
4. A public performance given at any passenger plane operated by the air transport business 
under the Aviat ion Business Act, any ship for the marine passenger transport business under the 
Marine Transportation Act, or any passenger train under the Railroad Service Act;  
5. A public performance given at any hotel, resort condominium, casino, or amusement facility 
under the Tourism Promotion Act;  
6. A public performance given at a superstore (excluding a traditional market defined in 
subparagraph 1 of Article 2 of the Special Act on the Development of Traditional Markets and 
Shopping Districts) prescribed i n the attached Table of the Distribution Industry Development Act;  WT/TPR/M/414/Add.1  
 
- 116 - 
 
  7. A public performance of cinematographic works published for commercial purpose given at a 
lodging facility or a public bathhouse defined in Article 2  (1) 2 or 3  (b) of the Public Health 
Control  Act by installing the device for appreciating cinematographic works;  
8. A public performance in the form of playback of cinematographic works published for 
commercial purpose for which six months have not passed from the date of publication in any of the 
following facilities, which are equipped with an installation for the appreciation of cinematographic 
works:  
(a) Buildings and annexed facilities of the State and local governments (including 
subordinate institutions);  
(b) Public performance places prescribed under the Public Performance Act;  
(c) Museums and art galleries prescribed under the Museum and Art Gallery Support  Act; 
(d) Libraries prescribed under the Libraries Act;  
(e) Local cultural institutes prescribed under the Promotion of Local Cult ural Institutes  Act; 
(f) Social welfare service houses prescribed under the Social Welfare Services Act;  
(g) Woman resource development centers and the Women 's History Museum prescribed 
under Articles  47 and 50 of the Framework Act on Gender Equality;  
(h) Youth training centers prescribed under subparagraph 1  (a) of Article  10 of the Juvenile 
Activity Promotion Act;  
(i) Si/Gun/Gu residents halls among public facilities prescribed under Article  144 of the 
Local Autonomy Act.  
  WT/TPR/M/414/Add.1  
 
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  GUATEMALA  
3.152.Certification authorities are encouraged to negotiate MRAs with foreign counterparts. KOLAS 
is a signatory to the International Laboratory Accreditation Cooperation (ILAC) Multilateral 
Recognition Arrangement (MLA) for testing, calibration, and medical tes ting; as of March 2021, 
103 accreditation bodies from 105 economies had signed the ILAC MRA MLA. KAS is a signatory to 
the International Accreditation Forum (IAF) MLA for product certification. The Korean Accreditation 
Board (KAB) is a signatory to the IAF  MLA for management systems certification and certification of 
persons. KOLAS, KAS, and KAB are the signatories to the APAC (Asia Pacific Accreditation 
Cooperation) MRA. The main scope of KOLAS under the APAC MRA is testing, calibration, and medical 
testin g, while the main scope of KAS is product certification, and those of KAB are management 
systems certification and certification of persons. Korea is also a member of the Asia -Pacific 
Economic Cooperation (APEC) MRA on Conformity Assessment of Telecommunic ations Equipment 
(Phases I and II) and of Part I of the APEC Electrical MRA; it does not intend to participate in Parts 
II and III of the latter. It joined the MRA on Conformity Assessment of Electrical and Electronic 
Equipment in 2015.  
 
1. The Guatemalan  delegation, through its Accreditation Office (OGA) of the  National Quality System, 
requests clarification on the following : If within the framework of the ILAC Mutual Recognition 
Agreement , of which Guatemala is a part Could Korea, through its Accreditatio n bodies, recognize 
the evaluation bodies accredited by  OGA?  
 
ANSWER : 
 
KOLAS generally recognizes the equivalence of the bodies accredited by OGA under the ILAC MRA . 
However, the recognition of evaluation bodies under the APEC TEL MRA is determined by the Ministry 
of Science and ICT (National Radio Research Agency, RRA) as Korea's competent regulatory 
authority.  
 
3.247.  During the review period, KIPO implemented policies aimed at encouraging the use of patent 
data in the R&D process. Between 2019 and 2020, it expanded drastically the implementation of 
KIPO's IP R&D plan, aiming to improve the efficiency of R&D projects a nd secure core 
technologies.341 This plan consists of expanding IP -R&D programs in public R&D projects, supporting 
IP R&D customized to each stage of growth of business, and strengthening the foundation for IP 
R&D proliferation in industry, academia, and r esearch. Furthermore, in 2019 KIPO restructured its 
patent examination management structure in five of its bureaus.342 To improve patent examination 
capabilities, it established a new Convergence Technology Examination Bureau dedicated to the 
examination of technologies related to the Fourth Industrial Revolution, big data, and bio -health.  
 
2. Could the Korean delegation provide more information regarding how the Technology 
Convergence Review Office is structured? What are the main exam areas, as well as what other 
types of activities do you carry out?  
 
ANSWER : 
The Technology Convergence Examination Bureau, an organization  within the Korean Intellectual 
Property Office that examines patents for convergence technologies, such as big data and bio -health, 
expanded its  consultative examination among examiners of different technologies.  
 
3.272.  To create a healthy copyright ecosystem where the establishment of a virtuous cycle of 
creation -distribution -use would help to realize the Creative Economy, since 2018 Korea's policy goal 
has been the "Creation of a Copyright Ecosystem Promoting Balance a nd Coexistence" through four 
main projects: (i) strengthening the rights and interests of creators and preparing a fair and just 
rewards system; (ii) preparing a foundation to vitalize a fair copyright distribution system; 
(iii) strengthening responses to domestic and overseas copyright infringement and raising pan -
national awareness; and (iv) strengthening international competitiveness of cultural service 
copyright.363 To pre -emptively and proactively respond to the changing environment, set up a stable 
copyright ecosystem, and support development of relevant industries, Korea created a copyright 
policy vision in 2020 (Copyright Vision 2030) with the goal of being a "Copyright Powerhouse Where 
Culture Drives Economy" through four core tasks: (i) create a fo undation for copyright conducive to 
the era of the Fourth Industrial Revolution; (ii) forge an environment for fair and transparent use 
and distribution; (iii) tighten the response to copyright infringement; and (iv)  strengthen 
infrastructure for protectio n of works overseas.  WT/TPR/M/414/Add.1  
 
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  3. Could the Korean delegation share with us their national copyright policy, as well as information 
on the implementation mechanisms for it?  
 
ANSWER : 
The Annual Report on Copyright in Korea is available to the public via the website of the Korea 
Copyright Commission, regarding the national copyright policy and its implementation. The key 
players of the Copyright policy implementation are the Ministry of Culture, Sport and Tourism(MCST), 
the Korea Copyright Commission(KCC) and the Korea Copyright Protection Agency(KCOPA). The 
MCST administers copyright law, develops copyright related policies and strategies, and supervises 
the KCC and KCOPA. The KCC deliberates copyright -related issues, mediates copyright disputes, and 
researche s policies and legislation on copyrights. It also provides copyright education and public 
awareness programs, and serves as a copyright registration agency. KCOPA was established to 
enforce copyright protection policies and carries out projects for copyrig ht protection, including 
effective law enforcement and performing activities to handle copyright infringement.  
Korea continues its bilateral and multilateral cooperation regarding copyright, based on the MOUs 
between many countries. Also, Korea supports v arious projects for the development and 
international cooperation in the fields of copyright by contributing to the trust fund at WIPO.  
  WT/TPR/M/414/Add.1  
 
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  HONG KONG, CHINA  
Fisheries  
(WT/TPR/S/414:Page151,paras4.64 -4.68;Pages152 -153,paras4.72 -4.73& Table 4.7)  
It is noted  that, with a vision  to ensure  sustainable  fisheries,  Korea  has taken measures to effectively 
manage fisheries resources and fight against illegal , unreported and unregulated (IUU) fishing. 
Meanwhile, Korea is operating various subsidy programmes for the fisheries sector, including support 
for distant -water fishing . 
 
1. Does Korea envisage any major changes to its fisheries policies and fisheries support programmes 
if and when a WTO fisheries subsidies agreement is reached and implemented ? 
 
ANSWER : 
Korea implements various measures to manage fisheries resources and deter IUU and OFOC. It is 
yet difficult to say where the WTO fisheries subsidies negotiation will head, so Korea is continuously 
following up with the procedures and is ready to re act to the negotiation.  
 
Financial Services  
(WT/TPR/S/414: Page 169, para 4.165)  
During  the review period , more foreign  financial  companies  left than entered the Korean market; 
according to an Economist Intelligence Unit (EIU) report, they could not compete with bigger local 
rivals and could not find a growth niche in a maturing market. The number of foreign bank branches 
dropped from 39 in 2015 to 36 in2020.  
 
2. More foreign financial companies could not compete with bigger Korean local firms and lef t the 
market. Has Korea introduced any measures to address the issue and attract more commercial 
presence of these foreign financial companies ? 
 
ANSWER : 
As the non -face-to-face and digital business es in the financial sector has been accelerated due to 
the 4th industrial revolution, the withdrawal of off -line branches is a global trend especially in the 
banking industry.  
Korea is thoroughly abiding by the principle of the FTA and is thoroughly abiding  by its commitments 
with respect to financial services under the WTO GATS (GATS/SC/48/Suppl.3/Rev.1) and the 
principles under its FTAs, such as National Treatment and Most Favoured Treatment between local 
financial institutions and foreign ones.  
Neverthel ess, Korea is pursuing financial hub policies which encourage foreign financial institutions 
to invest into or establish commercial presence in Korea by giving them tax incentives and rent 
reductions incentives within Seoul and the B usan financial hub.  
 
Banking  
(WT/TPR/S/414: Page 169, para 4.165; Page 171, para 4.181)  
Foreign investment is allowed in financial institutions, except for specialized banks.  
The five specialized banks are the Korea Development Bank (KDB), the Export -Import Ban k of Korea 
(EXIM Bank), the Industrial Bank of Korea (IBK), the National Agricultural Cooperative Federation, 
and the National Federation of Fisheries Cooperatives. The Government fully owns the KDB, and 
68.7% of the EXIM Bank. The IBK specializes in provi ding loans to SMEs. As at 2020, the Government 
owned 59.2% of IBK's shares, up from 50.6% in 2015.  
 
3. What are the major considerations of forbidding foreign investment in specialized banks? With 
the growing government ownership of shares in the specializ ed banks, is there any plan to open up 
this particular sector to more private sector investment and also foreign investment to ensure 
competitiveness in the market?  
 
ANSWER : 
The Korea Development Bank (the "KDB") operates to supply and manage funds necessa ry for the 
development and promotion of industries, expansion of social infrastructure, development of regions, 
stabilization of financial markets and facilitation of sustainable growth, etc. The Korean government 
holds one hundred percent (100%) of the sh ares of the KDB in order to support KDB's operation as 
a specialized bank. Since IBK is a listed company, there are no restrictions on private investment 
and foreign investment.  
 WT/TPR/M/414/Add.1  
 
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  Telecommunications  
(WT/TPR/S/414: Page 176, para 4.208)  
TheTelecommunicationsBusinessActwasmostrecentlyamendedin2020 (Act No. 17352). It  classified 
telecommunications business into facilities - based and value -added operators. Foreign investment 
in facilities -based telecom services is subject to a ceiling of 49% , while value -added telecom services 
are fully open to foreign investment. For facilities -based telecom services,  foreign  corporations  from 
certain  RTA partners  and that passed  the public  interest  review  are not subject  to this equity  
restriction.  The Ministry of Science and ICT (MSIT) may prohibit a foreign shareholder from becoming  
the largest  individual  shareholder (5% or more of shares)  in Korea Telecom.  
 
4. There is a 49% ceiling set for the foreign investment in facilities - based telecom services, but 
foreign corporations from certain RTA partners are not subject to this equity restriction. Is there any 
plan to raise the foreign investment ceiling for non -RTA trading partners? Besides,  under  what 
circumstances  would  the MSIT prohibit  a foreign shareholder from becoming the largest individual 
shareholder in KoreaTelecom?  
 
ANSWER : 
In principle, Korea has eased investment limits through bilateral and multilateral agreements such 
as FTAs, and this stance remains unchanged. Restrictions on foreigners related to KT's largest 
shareholder are stipulated in the Addendum of the Telecommunic ations Business Act (Act No. 5385, 
amended on February 9, 2004).  
 
Land Transport  
(WT/TPR/S/414: Page 186, para 4.268)  
All railway operators must be licensed by MOLIT (Ministry of Land, Infrastructure and Transport), 
and meet the requirements listed in the  Railroad Enterprise Act. Foreign enterprises may supply rail 
transport services  for routes  built after 1 July 2005,  on the condition  that they comply  with an 
economic  needs  test and the licensing  requirements  stipulated  in the Railroad Enterprise  Act. 
 
5. What elements would be taken into account in the economic needs test and the licensing 
requirements that apply to foreign rail transport  services suppliers? Are domestic suppliers subject 
to the same economic needs test and licensing re quirements ? 
 
ANSWER : 
A person who intends to run a railroad business in Korea must be a corporation (Article 5 of the 
Railroad Business Act) and must obtain a railroad business license (Article 2 of the Railroad Business 
Act). The economic needs test means a license review und er the Railroad Business Act, and a person 
who intends to obtain a license for a railroad business must submit an application for a license to 
the Minister of Land, Infrastructure and Transport.  
License requirements such as railroad traffic safety and use r convenience (Article 6 of the Railroad 
Business Act) must be met. In addition, both domestic and foreign companies are subject to license 
requirements.  
 
Distribution services with a specific focus on e -commerce (WT/TPR/S/414: Page 187, para 4.277)  
E-comm erce is mainly regulated under the Act on Consumer Protection in Electronic Commerce (Act 
No. 15141), which was partially amended in November 2017. The authorities state that this Act is 
currently being fully revised, and the pre -announcement of legislatio n was made in March 2021.  
 
6. What is the current status of the revision of the Act on Consumer  Protection  in Electronic  
Commerce?  What are the changes  to be made to the  Act? 
 
ANSWER : 
Since March 2021, amendments to the "E -commerce Act" which contains content similar to the 
pre-announced bill by the government, have been proposed to the National Assembly and are set to 
be deliberated. The core of these bills is to change the regulatory system to suit the new e -commerce 
environment, which has ch anged with the online platform at its center , not sellers. Prior to the 
emergence of online platforms such as open markets, online transactions took place directly between 
sellers and consumers. As a result, the original "E -commerce Act" enacted 20 years a go focused on 
the obligations and responsibilities of sellers to protect consumers and what sellers should not do. 
Now, 20 years later, the e -commerce environment has changed tremendously. Online platforms 
such as open markets have emerged, connecting cons umers and sellers, and they are also deeply 
involved in transactions between the two. Instead of looking for individual online shops as in the WT/TPR/M/414/Add.1  
 
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  past, consumers turn to open markets such as Coupang and Tmon for their shopping, and sellers 
are also using plat forms provided by open markets instead of opening their own websites. It has 
been a long time since these platform -oriented transactions have become the norm of e -commerce, 
but the "E -commerce Act" still puts much emphasis on sellers' obligations and respo nsibilities without 
much change. The bills proposed at the National Assembly are intended to improve this problem and 
impose platforms appropriate obligations and responsibilities for consumer protection.  WT/TPR/M/414/Add.1  
 
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  ICELAND  
1. What is the participation of women in the economy of Korea?  
 
ANSWER : 
Trend in women's employment in Korea (aged 15 and older, as of 2020)  
(Unit: %)  
 Women 's economic 
participation rate  Unemployment rate  Employment rate  
2020 52.8 4.0 50.7 
Source:  Economically Active Population Survey by Statistics Korea.  
2. Have specific barriers that limit women's participation in trade been identified?  
 
ANSWER : 
In South Korea, women's enterprises are regarded as policy targets that should be taken care of by 
government policy, like disabled's enterprises and local SMEs. Similar to other SMEs in general, the 
Ministry of SMEs and Startups (MSS) believes that women's enterprises feel the lack of information 
and experience for overseas market and difficulties in manp ower and financing.  
 
3. Has Korea implemented any specific measures to encourage women's participation in trade and 
promote women's entrepreneurship, or are such measures being developed?  
 
ANSWER : 
The Ministry of SMEs and Startups  of the Republic of Korea (MSS) operates the Women's Startup 
Incubation Centre (BI) to promote women's entrepreneurship.  
 
The purpose of this program is to invigorate women's entrepreneurship and strengthen the 
competitiveness of women's businesses by prov iding comprehensive support for women such as 
incubation space for startups, information, and other measures to help women to start and grow 
their businesses.  
 
The main target of support is preliminary female entrepreneurs and female entrepreneurs within 
3 years of starting a business and the applicants are able to stay in the BI for up to 3 years from 
the date of move -in. Currently, there are 18 metropolitan cities centres nationwide and 238 rooms 
are being in operation.  
 
4. Are the effects of trade policy  on women and men measured and monitored, and if so, how?  
 
ANSWER : 
Since 2005, the Korean government has been conducting gender impact analysis on key government 
policies that are in place or to be established to evaluate their impacts on gender equality a nd 
contributions to achieving gender equality.  
To legislate or amend trade -related laws, gender impact analysis is carried out to make a 
comprehensive review and evaluation of the impact that they will have on  women and men.  
 
  WT/TPR/M/414/Add.1  
 
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  INDONESIA  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
SUMMARY  
Page 10 Para 6  
Since its previous TPR, Korea has maintained its general trade policy thrust, which has remained 
relatively unchanged though particular emphasis was placed on SMEs and innovation. While no  
unilateral liberalization has been undertaken, there have been regulatory or institutional 
developments in certain areas, including trade facilitation, anti -dumping, export control of strategic 
goods, enterprises in repatriation/re -shoring, standards, san itary and phytosanitary (SPS) 
requirements, government procurement, competition policy, and intellectual property rights. 
COVID19 circumstances led to the implementation of temporary trade -related measures in certain 
areas. Some measures continue to protec t domestic producers, especially farmers, from foreign 
competition.  
 
Question:  
1. Could the Korean government clarify which specific measures aims to protect domestic producers 
from foreign competition?  
 
[Answer]  
In the agriculture sector, several measures are included in RTAs, considering sensitivities for main 
items, such as exemption from tariff concession, maintaining current tariff levels and trade remedies 
through consultations  with the negotiating parties.  
No specific trade -related protection measures are implemented for farmers in response to COVID -19. 
In order to prevent disruptions in export supply chain due to COVID -19, Korea supports its farmers 
by adopting e -phytosanitary certificates and expanding onli ne export consulting services.  
 
 
Question:  
2. How will the Korean government ensure that the measures do not cause market distortions?  
 
[Answer]  
Korea does not have any export restriction policy on specific items for the adequate domestic 
supplies.  
The export  recommendation system for rice was operated until 2014 as part of the measure to 
implement effective limitation of domestic production according to the WTO Agreement on 
Agriculture, following the delay of rice tariffication from 1995 to 2014.  
 
3 TRADE PO LICIES AND PRACTICES BY MEASURE  
3.2.3.2. Restrictions and licensing  
Page 78 Para 3.81  
Korea may restrict exports of certain products periodically to ensure adequate domestic supplies, 
again potentially assisting downstream processing of these products. Du ring the review period, no 
quantitative export restrictions for rice or any other agricultural products were in place, as Article 
22 of the Implementing Regulation of the Grain Management Act and a related notification 
requirement were repealed in March 20 15. Until that time, rice was the only product requiring export 
authorization (termed a "recommendation" by the authorities)."  
 
Question:  
3. Please explain on how Korea maintains its "adequate domestic supplies", as well as the 
implementation of the policy.  
 
[Answer]  
After tariffication in 2015, rice became a freely traded item, there is no specific measurement.  
 
Question:  
4. Is there any specific measurement to determine the period to export rice based on domestic 
supply sufficiency? Please explain in d etail. 
 WT/TPR/M/414/Add.1  
 
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  [Answer]  
Korea always implements its rice policy in accordance with the WTO regulations, such as completion 
of rice tariffication  and management of TRQ system.  
 
Question:  
5. How does the Korean government ensure that its policy is consistent with its WTO commitments?  
 
[Answer]  
The new direct payment program aims to enhance the function of agriculture and rural communities 
in public interests and achieve stable income for small - and medium -sized farms.  
Under the new direct payment program, farmers recei ving the payment shall respect 17 areas of 
compliance, including protection of environment and ecosystem, community activities and food 
safety. Accordingly, farmers can contribute to the protection of rural environment and ecosystem by 
limiting excessive u se of pesticides and chemical fertilizers and by enabling them to dispose 
agricultural wastes in an appropriate manner. In addition, to support rural landscape conservation, 
direct payment is given to farmers growing landscape crops and carrying out activi ties to conserve 
landscape of the villages.  
 
3.3.1.1.1 Indirect taxation  
Page 81 Para 3.91  
 
Question:  
6. Indonesia notes that the indirect tax structure in Korea is quite complicated and remains 
unchanged. Could you please provide the legal basis, and is the Korean government planning to 
streamline the tax structure?  
 
[Answer]  
It should be considered very carefully to streamline the tax structure, and currently Korea does not 
have any plan.  
 
3.3.1.2.1 Tax incentives  
Page 85 Para 3.105  
(…) numerous and com plex tax incentives continued to be used extensively as an instrument of 
industrial policy to encourage investment, especially from overseas, and production of certain goods, 
including by SMEs (Special Tax Treatment Control Law, 1999 (STTCL), which was las t amended in 
2021). They cover a range of activities, and include income tax relief (rate reductions, exemptions, 
credits, special deductions, and other concessions), or credits and commodity tax concessions (such 
as VAT exemptions and zero -rating).  
 
Quest ion: 
7. Could Korea provide a more detailed explanation of the Special Tax Treatment Control Law 
(1999) as amended in 2021?  
 
[Answer]  
In March 2021, Korea extended the tax credits provided to businesses that reduced or exempted 
rents for SMEs affected by COVI D-19 until the end of 2021.  
 
Question:  
8. Are there additional categories covered by the regulation other than mentioned in the 
Secretariat Report?  
 
[Answer]  
There is no additional categories covered by STTCL.  
 
3.3.6 Government procurement  
Page 118 Para 3.214  
Korea's government procurement market (goods, services, and construction) grew almost steadily 
from KRW 116.9 trillion or 6.7% of GDP (2016) to KRW 123.4 trillion (2018) or 6.5% of GDP to an 
estimated KRW 1 34.98 trillion (May 2019) or 7% of GDP. (…)  
 
Question:  
9. Does Korea have statistics on government procurement market that divided into central and WT/TPR/M/414/Add.1  
 
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  local governments (based on type of procurement: goods, services, and construction? If so, are they 
accessible to the public?  
 
[Answer]  
The Korean government has retained and managed statistics on the government procurement 
market that are divided into central and local governments (based on type of procurement: goods, 
services, and construction works). The public can access the mentioned statistics.  
 
Page 119 Para 3.215  
Korea operates international tendering and other procurement procedures in accordance with its 
commitments under the WTO Plurilateral Agreement on Government Procurement (GPA). (…)  
 
Question:  
10. Are there opportunities for foreign suppliers (non -GPA parties) to participate in GP in Korea? 
Please explain in detail the procedure.  
 
[Answer]  
Companies from non -GPA parties can join the international bidding not subject to GPA. The 
international bidding tack les goods (foreign goods) or services not produced or supplied in Korea. 
To join the bidding, the companies should register as an overseas company at the Supplier 
Registration Team of PPS or PPS' regional branch offices. The documents required for the regi stration 
involve 'the Application for the Overseas Bidder Registration' and a certificate of business registration 
(or a corporation register) issued by the government agency or authorities concerned of the country 
in which the company is registered. And t hen they should be submitted via mail or through visit. If 
the applicant company's credit rating is confirmed as "Fair" or above, the company could be 
successfully registered as an overseas company.  
 
3.3.6.1 Legislation  
Page 119 Para 3.216  
During the review period, changes were made to the government procurement legislation. The 1995 
Act on Contracts to Which the State Is a Party (last amended by Act No. 16578, 26 November 2019) 
covers international and domestic procurement of goods and serv ices, including construction, by all 
central government agencies. Amendments that entered into force on 20 March 2018 involved the 
method of contracting, agreement on dispute resolution methods, state contract disputes 
conciliation, competition among tende rs eligible for preferential purchase,  and dispute 
resolution through arbitration or conciliation by the State Contract Disputes Conciliation Committee. 
Amendments enforced from 27 May 2020 related to, inter alia , principles of contracting, preparation 
of estimated price, determination of successful tenderer in competitive tendering 
procedure, and adjustment of contract amount according to price fluctuation. (…)  
 
Question:  
11. Please elaborate more regarding the crite ria and determination of successful tenderer in 
competitive tendering procedure.  
 
[Answer]  
The criteria and determination of the successful tenderer in competitive tendering procedure are 
spelled out in Article 10 of the Act on Contracts to which the State  Is a Party and Articles 41 and 42 
of the said Act's Enforcement Decree.  
 
Article 10 (Determination of Successful Tenderer in Competitive Tendering Procedure)(1) In a competitive 
tendering procedure that becomes a source of revenue, a person who tenders th e highest price shall be 
determined as a successful tenderer: Provided, That the foregoing shall not apply where criteria for successful 
bidders are prescribed by Presidential Decree, taking into consideration purposes of the contract, tendered 
prices, the  quantity, etc.  
(2) In a competitive tendering procedure that imposes a burden on the National Treasury, any of the following 
tenderers shall be determined as a successful tenderer:  
1. A person who is recognized as capable of performing a contract and tend ers the lowest price;  
2. A person whose tender offer is the most favourable  to the State according to the evaluation criteria specified 
in the tender notice or tender guidance;  
3. A person whose tender offer most closely conforms to criteria, where such cr iteria are specially prescribed 
by Presidential Decree, taking into consideration the nature, size, etc. of the contract.  
(3) Notwithstanding paragraph (2), the head or contract officer of each central government agency shall not 
determine a person who ten ders less than 98/100 of the sum of the following expenses as a successful WT/TPR/M/414/Add.1  
 
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  tenderer, in cases of a competitive tendering procedure for construction works whose estimated price is less 
than KRW  10 billion: <Newly Inserted by Act No. 16578,, Nov. 26, 2019>  
1. Material costs, labor costs, and expenses;  
2. Value -add tax on the costs under subparagraph 1.  
[This Article Wholly Amended by Act No. 11547, Dec. 18, 2012]  
 
Article 41 (Determination of Successful Tenderer in Competitive Tendering Procedure as Source of Revenue)In 
a competitive tendering procedure that becomes a source of revenue, a person who tenders the highest price, 
which shall not be less than the budget price, shall be determined as a successful tenderer.  
 
Article 42 (Determination of Succ essful Tenderer in Competitive Tendering Procedure Imposing Burden on 
National Treasury)(1) In a competitive tendering procedure that imposes a burden on the National Treasury, 
the head or a contracting officer of a competent central government agency shal l determine a successful 
tenderer by examining the capabilities of each tenderer to perform the relevant contract and the outcomes of 
job creation determined by the Minister of Economy and Finance, etc., starting from a tenderer whose tender 
price is the l owest and not more than the budget price. <Amended by Presidential Decree No. 16548, Sep. 9, 
1999; Presidential Decree No. 17019, Dec. 27, 2000; Presidential Decree No. 18155, Dec. 11, 2003; 
Presidential Decree No. 19483, May 25, 2006; Presidential Decree No. 29318, Dec. 4, 2018>  
(2) Deleted. <by Presidential Decree No. 29318, Dec. 4, 2018>  
(3) In a tendering procedure under Article 18, the head or any contracting officer of a central government 
agency shall determine a person who tenders the lowest price, which shall not be more than the budget price, 
as the successful tenderer, notwithstanding paragraph (1). <Newly Inserted by Presidential Decree No. 19483, 
May 25, 2006>  
(4) In a tendering procedure for any of the following construction or service projects , the head or a contracting 
officer of a competent central government agency shall conduct a comprehensive examination on the tender 
prices of each tenderer, capabilities of performing a construction project (referring to capabilities of performing 
a servi ce project in cases of a tendering procedure for a service project; in the proviso to Article 40 (2) and 
hereafter, the same shall apply), social responsibility, etc., and determine a person whose total points are the 
highest as the successful tenderer, no twithstanding paragraph (1): <Amended by Presidential Decree No. 
26829, Dec. 31, 2015; Presidential Decree No. 29318, Dec. 4, 2018; Presidential Decree No. 30078, Sep. 17, 
2019>  
1. A construction project, the estimated price of which is at least KRW  10 bil lion; 
2. A cultural heritage maintenance pursuant to subparagraph 1 of Article 2 of the Act on Cultural Heritage 
Maintenance, Etc., prescribed by the Administrator of the Cultural Heritage Administration.  
3. Services concerning construction project manage ment pursuant to Article 39 (2) of the Construction 
Technology Promotion Act, the estimated price of which is at least KRW  2 billion;  
4. Services concerning basic plan for construction works pursuant to Article 69 of the Enforcement Decree of 
the Construct ion Technology Promotion Act or services concerning basic design pursuant to Article 71 of the 
same Enforcement Decree, the estimated price of which is at least KRW  1.5 billion;  
5. Services concerning working design pursuant to Article 73 of the Enforcemen t Decree of the Construction 
Technology Promotion Act, the estimated price of which is at least KRW  2.5 billion.  
(5) In order to examine capabilities of performing a contract pursuant to the paragraph (1), detailed criteria 
for examination shall be establi shed in accordance with the criteria determined by the Minister of Economy 
and Finance for examination to determine qualification, taking into comprehensive consideration each 
tenderer's past records of performance, technical capacity, financial position, level of fidelity to performance 
of past contracts, reasonableness of prices for procuring materials and human resources, plan for management 
of subcontracts, plan for fulfilling working conditions of outsourced workers, level of compliance with 
contractua l order, level of quality of past construction works, tender price, etc., and the person found qualified 
as a result of the examination shall be determined as a successful tenderer: Provided, That the head of a 
central government agency him/herself may det ermine the criteria for examination in consultation with the 
Minister of Economy and Finance, where it is deemed necessary in light of the nature of a construction project 
or goods, etc.. <Amended by Presidential Decree No. 16548, 9  Sep. 1999; Presidential  Decree No. 17019, 
27 Dec. 2000; Presidential Decree No. 19035, 8  Sep. 2005; Presidential Decree No. 19483, 25  May 2006; 
Presidential Decree No. 20319, 10  Oct. 2007; Presidential Decree No. 20720, 29  Feb. 2008; Presidential 
Decree No. 30078, 17  Sep. 2019>  
(6) Where the head or a contracting officer of a central government agency intends to conduct the 
comprehensive examination pursuant to paragraph (4), he/she shall determine detailed criteria for 
examination in accordance with the standards determined by t he Minister of Economy and Finance, taking 
into comprehensive consideration the results of the performance of contracts, plan for arranging manpower, 
efforts to fulfill social responsibilities and tender price of each tenderer, etc., and shall make the cri teria 
available so that persons intending to participate in tendering can inspect the criteria before submitting a 
tender. <Amended by Presidential Decree No. 19483, 25  May 2006; Presidential Decree No. 20720, 
29 Feb. 2008; Presidential Decree No. 26829, 3 1 Dec. 2015; Presidential Decree No. 30078, Sep. 17, 2019>  
(7) The head or a contracting officer of a central government agency may establish the committee for the 
comprehensive examination on tendering system (hereafter in this Article, referred to as the  "Committee") to 
comprehensively examine the tender prices of each tenderer, capabilities of performing a construction project 
and social responsibility, etc. pursuant to paragraph (4). <Amended by Presidential Decree No. 19483, 
25 May 2006; Presidential D ecree No. 26829, 31  Dec. 2015; Presidential Decree No. 30078, 17  Sep. 2019>  
(8) The Committee in each central government agency shall be comprised of public officials of the central 
government agency (including public officials of the requesting agency, wh ere the execution of a contract for WT/TPR/M/414/Add.1  
 
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  a construction project is requested to the Administrator of the Public Procurement Service pursuant to Article 
15 of the Enforcement Decree of the Government Procurement Act) and persons that have abundant 
knowledge and experience in contracting, and detailed matters necessary for the formation and operation of 
the Committee shall be determined by the head of each central government agency. <Newly Inserted by 
Presidential Decree No. 19483, 25  May 2006>  
 
Question:  
12. Please elaborate more regarding the competition among tenders eligible for preferential 
purchase?  
 
[Answer]  
Under Article 7, Paragraph 3 of the Act on Contracts to Which the State Is a Party, when there is 
competition among tenders eligible for preferentia l purchase prescribed in other Acts, the successful 
tenderer shall be chosen in consideration of the purpose and scale of the contract, consideration for 
the socially disadvantaged, etc. This is to ensure that preferential purchase system is sensibly 
opera ted. 
Here, "other Acts" refers to the Special Act on the Preferential Purchase of Products Manufactured 
by Persons with Severe Disabilities; the Act on Welfare of Persons with Disabilities; the Act on the 
Promotion of Purchase of Green Products; and the Ac t on Facilitation of Purchase of Small and 
Medium Enterprise -Manufactured Products and Support for Development of Their Markets, among 
others.  
 
Page 120 Para 3.218  
(…) The 2005 Act on Encouragement of Purchase of Green Products (known as the Law on the 
Promotion of Environmentally Friendly Products) requires government agencies and SOEs to 
purchase environmentally friendly products; as of 2021, it applied to 52 central government agencies 
(50 in 2015), 245 local government bodies (438 in 2015), 36 public en terprises, 77 local public 
enterprises, 95 quasi -governmental organizations (Section 3.3.5.2), 93 education authorities, 
15 local research institutes, and 209 other public institutions (in total 922 agencies in 2021 and 893 
in 2015). (…)  
 
Question:  
13. Does Ko rea apply specific environmental standards for procurement of goods? If so, please 
explain standard and/or criteria of such standards.  
 
[Answer]  
PPS encourages public entities to purchase green products by designating products which have 
eco-friendly prope rties and thereby meet the least green standards. It announces the standards on 
energy efficiency, performance, recycling, etc. based on green technologies by product type. The 
mentioned standards are set in consideration of technological levels of the rel evant market, 
clarification, usability, etc.  
 
3.3.6.2 Procurement methods  
Page 121 Para 3.222  
(…) Korea has been increasingly focused on centralized procurement (see below). A substantive part 
of procurement for the Central Government, local governments,  and public enterprises is conducted 
by the central procurement agency, the PPS. Central government agencies must use the PPS to 
procure goods and services at KRW 100 million or above; the threshold for foreign goods and 
services remains at over USD 200,00 0. (…) 
 
Question:  
14. Could you please explain whether the threshold (over USD 200,000) which mentioned above 
is the opportunity for foreign companies to participate in government procurement market in Korea? 
If yes, is this opportunity also include foreign co mpanies from non -GPA parties and non -FTA 
bilateral/regional parties with no market access commitment?  
 
[Answer]  
Korean governmental organizations must purchase foreign goods or services through PPS if their 
amount exceeds USD  200,000. The bidding for overseas goods and services conducted by PPS is not 
subject to GPA. And so the non -GPA and non -FTA companies can also  join.  
 WT/TPR/M/414/Add.1  
 
- 128 - 
 
  Question:  
15. What is the procedure for foreign suppliers to participate?  
 
[Answer]  
To join the international bidding, applicant companies should register as an overseas company at 
the Supplier Registration Team of PPS or PPS' regional branch offices . The documents required for 
the registration involve 'the Application for the Overseas Bidder Registration' and a certificate of 
business registration (or a corporation register) issued by the government agency or authorities 
concerned of the country in w hich the company is registered. And then they should be submitted 
via mail or through visit. If the applicant company's credit rating is confirmed as "Fair" or above, the 
company could be successfully registered as an overseas company.  
 
Question:  
16. Where is the information of international tender opportunities conducted by central and local 
governments publicly published?  
 
[Answer]  
The tender notice for international bidding scan be found at the KONEPS website 
(http://www. g2b.go.kr ). 
 
Page 122 Para 3.223  
All bidders wishing to participate in PPS -conducted tenders must register with the PPS. (…)  
 
Question:  
17. What are the requirements to register with the PPS, including foreign suppliers? Is the 
registration subject to fee?  
 
[Answer]  
Depending on goods, services and public works, the registration requires an application form, 
permission, authorization or license in accordance with relevant legislation. In case of qualifications 
required, the applicant company should have relev ant permission, authorization or license, or  make 
report , or be qualified for the bidding, all valid for the year in question. (The applicant foreign 
companies should have facilities or offices necessary for the goods for the bidding owned or leased 
and also have relevant permission, authorization or license or be qualified for the bidding, all valid 
for the year concerned. Plus, the registration doesn't require fees.  
 
Page 123 Para 3.226  
(…) In 2020, 79.8% (73.9% in 2016) of total PPS procurement contracts for goods, services, and 
construction wor ks were awarded to SMEs. (…)  
 
Question:  
18. What is considered as small enterprise and medium enterprise?  
 
[Answer]  
According to the Framework Act on Small and Medium Enterprises, small and medium -sized 
enterprises (SMEs) must meet both the size and independen ce standards.  
As for the size criteria, the total assets must be less than KRW 500 billion and the average sales over 
3 years must meet the criteria for each major industry. Previously, the size criteria must meet the 
number of employees and capital amount  by industry, but since 2015, a single criteria of the average 
sales over 3 years has been applied.  
 
* For example, reflecting the characteristics of the detailed manufacturing industry,  
- 6 Manufacturing business types including electrical equipment manu facturing: KRW 150 billion or 
less (USD 125 million)  
- 12 Manufacturing business types including food manufacturing : KRW 100 billion or less 
(USD 84 million)  
- 6 Manufacturing business types including manufacturing of medical, precision, optics and clocks  
and wholesale and retail businesses : KRW 80 billion or less (USD 42 million) . 
 
For independence criteria, the total assets of the affiliated must be less than KRW  500 billion, the 
company must not belong to a corporate group subject to disclosure, and the average sales amount 
of the affiliate's (as much as the investment ratio) must meet the size standards for each industry.  WT/TPR/M/414/Add.1  
 
- 129 - 
 
  In accordance with Article 3 of the ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON SMALL 
AND MEDIUM ENTERPRISES, the c ompanies whose annual revenues are less than KRW  40billion ~ 
KRW 150  billion by business line and whose total amount of assets is less than KRW  500 billion are 
considered to be SMEs  
 
Page 123 Para 3.228  
The PPS handled 33.5% (30% in 2016) of Korea's total domestic and foreign government 
procurement of goods and services (excluding defense equipment) and construction contracting in 
2019. (…)  
 
Question:  
19. Does Korea have statistics on foreign government procurement market (excluding as 
committed in GPA)?  
 
[Answ er] 
PPS does not have statistics on the foreign government procurement market other than Korea's 
own. 
 
4 TRADE POLICIES BY SECTOR  
4.5 Services  
4.5.3 Financial Services  
Page 169 Para 4.165  
Foreign investment is allowed in financial institutions, except for specialized banks. During the review 
period, more foreign financial companies left than entered the Korean market; according to an 
Economist Intelligence Unit (EIU) report, they could not compete with bigger local rivals and could 
not find a growth niche i n a maturing market.71 The number of foreign bank branches dropped from 
39 in 2015 to 36 in 2020. In 2021, foreign financial institutions accounted for about 10.6% of 
financial sector assets (11% in 2015). The two foreign bank subsidiaries and 36 branches from 
16 countries make up about 11.6% of the banking sector (14% in 2015). In the insurance sector, 
12 foreign insurance companies' subsidiaries from 5 countries make up 9.8% of the domestic 
insurance sector. In the securities sector, 23 foreign companies from 11 countries make up about 
5.7% of the securities sector's assets. Foreign or local non -bank financial companies' ownership in 
any commercial bank is restricted to 4% (15% for regional banks). This limit may be increased to 
10% for special cases, if a pproved by the FSC.71 EIU (2021), Industry Report – Financial Services: 
South Korea. Viewed at: http://country.eiu.com/filehandler.ashx?issue_id=730761656&mode=pdf.  
 
Question:  
20. It is reported that the number of foreign banks has dropped and more foreign players left rather 
than came to the market because they could not compete with the local big banks. Could 
Republic of Korea (ROK) share the analysis pertaining the reason why foreign banks could not 
compete with the local big banks in ROK? Has the  banking industry in ROK been saturated? Are 
there specific programmes given to local banks? Please describe the purposes and scope.  
 
[Answer]  
Due to the low interest rate, economic contraction caused by Covid19 pandemic and development 
of non -face-to-face business in the financial sector, the withdrawal of off -line branches is a global 
trend. Korea is pursuing policies regarding stabilizing financial markets and establishing an advanced 
financial order abiding by the principle of FTA, such as National Trea tment and Most Favoured 
Treatment between local financial institutions and foreign ones.  
There are no specific programmes only for local banks.  
 
4.5.3.1 Banking  
4.5.3.1.1 Structure and ownership  
Page 171 Para 4.178  
Two Internet banks, Kakao Bank and K Ba nk, which do not have any physical branches, launched 
their operations in 2017. A third – Toss Bank, controlled by the operator of the Toss Mobile P2P 
payment platform – was granted a license in December 2019. Internet banks are regulated under 
the Special  Act on Establishment and Operation of Internet -Only Banks, which came into force in 
January 2019. This Act allows ICT firms to own up to 34% of an Internet bank.  
 
Question:  
21. Could ROK kindly explain whether the internet -only bank automatically included in the scope WT/TPR/M/414/Add.1  
 
- 130 - 
 
  of Korean Commitment in GATS?  
 
[Answer]  
An internet only bank provides some banking services listed in the commitment. Therefore, the 
banking business sector in the commitment is applied to an internet only bank provided that 
domestic regulations regarding minimum capital, limits on stockholding and scope of business is 
applied to an internet only bank.  
 
Question:  
22. Is it possible if the internet -only bank is established by a branch of foreign bank? If so, please 
explain.  
 
[Answer]  
An int ernet should meet requirements for capital and stockholders. Therefore, it should be a stock 
company.  
 
4.5.3.1.2 Prudential requirements, profitability, and non -performing loans  
Page 171 -172 Para 4.182  
Korea continues to apply Basel III capital -adequacy regulations for banks. Banks are required to 
meet capital -adequacy ratios (CARs) for each tier of capital: at least 4.5% of risk -weighted assets 
as common -equity capital and 6% as Tier 1 capital. They also must hold a capital conservation 
buffer, initially set at 0.625% but which rose to 2.5% in 2019. Internet banks have a three -year 
grace period to meet these CARs. Korean banks remain well capitalized: in 2020, their CAR was 
16.5% and their Tier 1 capital ratio was 12.7%, both well above t he Basel III requirements 
(Table  4.13).  
 
Question:  
23. Could ROK elaborate more on the CAR position of foreign banks in Korea? Is it below or above 
the average CAR of Industry?  
 
[Answer]  
Basel 1(8% capital adequacy ratios) applied to branches of foreign bank in Korea. The average CAR 
of branches of foreign bank is 25.7% which is well above the average of Koreanbanks(16.5%) as of 
the end of 2020.  
 
 
Question:  
24. Could ROK  kindly explain the capital requirement for foreign banks and whether there is any 
limitation or negative list for foreign banks to place their asset to be deemed as capital? Please 
explain in detail the differences between foreign and domestic banks.  
 
[Answer]  
The operating funds(capital) of a branch of foreign bank should be no less than KRW 3 billion.  
Any of the following funds recognized by the Financial Services Commission as operating funds of a 
branch of a foreign bank shall be deemed its capital sto ck:  
- Funds in Korean currency, which the head of office of a foreign bank has supplied to its branch 
office by selling funds in a foreign currency to any of the following financial institutions, for the 
purposes of the establishment of the branch office and business activities:  
 
(a) The Bank of Korea established under the Bank of Korea Act;  
(b) The Korea Development Bank established under the Korea Development Bank Act;  
(c) The Export -Import Bank of Korea established under the Export -Import Bank of Korea Act; 
(d) The Industrial Bank of Korea established under the Industrial Bank of Korea Act;  
(e) The Nonghyup Bank established under the Agricultural Cooperatives Act;  
(f) The Suhyup Bank established under the Fisheries Cooperatives Act;  
(g) A bank authorized  under Article 8 of the Act;  
 
- Funds transferred from the reserves by a branch of a foreign bank provided in Article 40 of the 
Act; 
- Funds transferred from earned surplus carried forward by a branch of a foreign bank 
prior-established in the Republic of Korea to establish an additional branch of the foreign bank;  WT/TPR/M/414/Add.1  
 
- 131 - 
 
  - Funds in Korean currency raised by selling funds in foreign currency by a branch of a foreign bank 
to the Bank of Korea;  
- Funds operated in the Republic of Korea, among those borrowed from the  head office or overseas 
branch of a foreign bank with a maturity of more than one year  
 
4.5.3.1 Banking  
4.5.3.1.3 Non -Banking  
Page 173 Para 4.187 -4.190  
 
Question:  
25. Could ROK  kindly clarify on why does the Secretariat Report put non -banking section under 
the subsection of banking? Is it due to banks could perform non -banking activities?  
 
[Answer]  
We see that the Secretariat report considers that MSBs and Credit Unions among N on-bank financial 
institutions are receiving deposits.  
 
Question:  
26. Regarding the asset management under paragraph 4.189, could ROK please confirm whether 
banks are allowed to conduct asset management activity, including hedging? Is there any capital 
require ment for banks to do such an activity? If any, could you please explain how it relates to the 
WTO principle of national treatment?  
 
[Answer]  
Banks are not allowed to conduct asset management activities in funds markets.  
 
Page 6 Para 3.7  
In the agricultural sector, Korea newly adopted the "New Direct Payment Program" in May 2020, 
revising the existing direct payment system including the "Rice Income Compensation Scheme." 
Direct payments under the Rice Income Compensation Scheme were originally gr anted based on the 
difference between the target price and the annual harvest -period price. However, the new 
programme separates qualifications for direct payment from the production or prices of agricultural 
products, removing possible distortion in the m arket and trade. (…)  
 
Question:  
27. Could the Korean government describe in detail the aim of the "New Direct Payment Program" 
and its further benefit for the environment and rural landscape so far?  
 
[Answer]  
The new direct payment program aims to enhance the function of agriculture and rural communities 
in public interests and achieve stable income for small - and medium -sized farms.  
Under the new direct payment program, farmers receiving the payment shall respect 17 areas of 
compliance, including protectio n of environment and ecosystem, community activities and food 
safety. Accordingly, farmers can contribute to the protection of rural environment and ecosystem by 
limiting excessive use of pesticides and chemical fertilizers and by enabling them to dispose 
agricultural wastes in an appropriate manner. In addition, to support rural landscape conservation, 
direct payment is given to farmers growing landscape crops and carrying out activities to conserve 
landscape of the villages.  
 
PART III : GENERAL QUESTIONS  
 
Question:  
28. Please provide detailed information on Korea's import policy for palm oil and its derivatives, as 
well as the consumer preferences.  
 
[Answer]  
Palm oil and its derivatives are freely imported in private sector.  
According to the impo rt statistics by the Korea Customs Service, palm oil from Indonesia has had 
the largest market share. Imported palm oil is used as the food processing ingredient for 
confectionary and noodles, or as bio -diesel.  
 WT/TPR/M/414/Add.1  
 
- 132 - 
 
  Question:  
29. In relation to the Act on the Prevention of Livestock Epidemics, could the Government of Korea 
provide more information on the implementation of the regulation, including the requirements for 
importing related products? What is the procedure for importers who already have international  
certification in their production process?  
 
[Answer]  
The import permit of animal and livestock products is reviewed and determined upon request by an 
exporting country, in accordance with the domestic law (Act on the Prevention of Contagious Animal 
Diseases).  
* Import Permit Procedure (8 steps): ① Review on  the possibility of market access,  
② Submission of Animal Health Questionnaire,  ③ Review of the answers to the 
questionnaire,  ④ On-site inspection,  ⑤ Decision on market access,  ⑥ Consultation on 
Import Health Requirements,  ⑦ Enactment and notification of I HR, ⑧ Consultation on 
template import health certificate . 
 
Even if the exporter has the international certification, the import will be approved when all 
necessary procedure has been gone through.  
  WT/TPR/M/414/Add.1  
 
- 133 - 
 
  ISRAEL  
2 TRADE AND INVESTMENT REGIMES  
2.6Foreign Direct Investment  
2.6.2 FDI restrictions  
Table 2.1 FDI restricted sectors, 2021  
Among the existing FDI restrictions, Israel would like to note that Korea is applying discriminatory 
restrictions on foreign ownership in parts of the telecommunicat ion sector (Wire 
communications/wireless and satellite communications, Other electronic communications). In these 
sectors, Korea does not allow more than 49% of foreign equity for the vast majority of 
WTO Members. However, for a small number of WTO Members  Korea is not applying any restrictions 
on foreign equity.  
 
1. Does Korea plan to allow foreign equity in telecommunication sector without discriminating 
between WTO Members?  
 
ANSWER  1: 
Korea does not have any plans on lifting the restrictions to all WTO members, since in most cases 
FTAs are regarded as exceptions for non -discriminatory or MFN treatment obligations.  Through  
bilateral and multilateral agreements with a small number of WTO member states, the restriction on 
foreign equity is eased "only for the acquisition of shares in the form of indirect investment" on the 
condition of "passing an examination of public benefits," and the same method will be applied to the 
rest of the WTO me mber states.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.3 Tariffs  
3.1.3.1 Applied MFN rate  
3.32. "The tariff structure has changed little since the last Review. The 2021 simple average 
(unweighted) MFN decreased slightly to 13.9% (14.1 % in 2016) (Table 3.1 and Chart 3.1), mainly 
as a result of the implementation of commitments relating to the expansion of the Information 
Technology Agreement. Tariff protection varies substantially across and within secto rs, averaging 
60.4% for agricultural products (60.0% in 2016) and 6.3% for industrial goods (6.6% in 2016) in 
2021 (WTO  definitions).37 Average tariffs are higher for vegetable products (HS Section 2), at 
107.9% (Chart 3.1). Manufacturing tariffs are highe r for footwear and headgear (HS Section 12) at 
10.1%, and for textiles and articles (HS Section 11) at 9.7%. By according varied and substantial 
levels of protection to selected industries, especially agriculture, tariffs distort competition by 
favouring s ome activities. Reducing high tariffs (mainly out -of-quota agricultural duties) would 
improve Korea's resource allocation and national welfare, a view not shared by the authorities. 
According to the authorities, agricultural tariffs, including out -of-quota  duties, are maintained in line 
with corresponding international and domestic laws, taking market conditions into account. "  
 
2. Israel would like to ask  if Korea has any planned tariff reduction initiatives for the near future. If 
so, which sectors or products are planned to be included in such initiatives?  
 
ANSWER : 
Korea has currently no planned tariff reduction initiatives. We have implemented the tarif f concession 
precisely without delay according to WTO agreements suchas the ITA Expansion. But a number of 
FTA and multilateral trade agreements in which Korea participated have the effect of lowering tariff 
rates.  
 
"3 TRADE POLICIES AND PRACTICES BY MEASU RE 
3.1 Measures Directly Affecting Imports  
3.1.5 Import prohibitions, restrictions, and licensing  
3.1.5.3 Licensing  
3.61. "During the review period, the legislative framework in this area was expanded and revised. 
Import approval or authorization continues  to be governed by the Foreign Trade Act and 64 other 
laws (56  in 2016).72 The Ministry of Trade, Industry and Energy (MOTIE ) regularly updates the 
Export Import Notice that lists items under import restriction; as of April 2021, the only item on the 
list remained aircraft parts. MOTIE also updates the Consolidated Public Notice containing all export 
and import certification re quirements. Import licensing procedures are maintained to: (i) protect 
public morals; (ii) protect human, animal, and plant life and health, hygiene, and sanitation; WT/TPR/M/414/Add.1  
 
- 134 - 
 
  (iii) protect aquatic animal and aquatic plant health; (iv) safeguard the environment; (v)  protect 
national security; and (vi) comply with international commitments.73 In 2016, these requirements 
covered some 3,000  six-digit HS tariff items, including petroleum, LPG (liquefied petroleum gas), 
agricultural fertilizers, crop seeds, animals and an imal products, nuclear materials, narcotics, foods 
and food additives, foreign publications, firearms, and explosives; no recent data were available 
from the authorities."  
 
3. a. It would be appreciated if Korea could provide a complete list of the product s which require an 
import license in order to be imported to Korea or provide a link to any publication of the 
abovementioned list on an official website.  
 
b. please elaborate on any recent changes to the list of products which require an import license.  
 
ANSWER : 
a. The Consolidated Public Notice, containing all export and import certification requirements 
stipulated in the 64 separate laws, is updated by the Ministry of Trade, Industry and Energy. 
With regard to the list of the products, please refer to paragraphs  2.29 and 3.61 inthe 
Secret ariat Report . 
 
b. Please refer to two Replies to the Questionnaire on Import Licensing Proce dures (for 2019 
and 2020) to the WTO Committee on Import Licensing, which are mentioned in paragraph 
3.64 in the Secretariat Report.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.2 Standards and other technical  requirements  
3.3.2.1 Standards, testing, and certification  
3.134. "Standard development remains government -led and a significant element of Korea's 
industrial policy. Under the inter -ministerial fourth National Standards Plan (2016 -20), key policy 
goals included the development of standards for new growth engine activiti es for improving people's 
daily life and the eradication of redundant certification systems. The Plan aimed to advance the 
national standards system, strengthen the standard technology infrastructure, promote active 
participation in international standardi zation activities, and assist the private sector in increasing its 
capacity to develop standards. A fifth National Standards Plan will be established in the second 
quarter of 2021. During the review period, KATS implemented standardization strategies requi red 
for competitiveness in emerging industries and adaption to technological changes of the Fourth 
Industrial Revolution; efforts for KS to be reflected in the fields of the Fourth Industrial Revolution, 
such as a smart factory, a smart city, the Internet of Things (IoT), and big data, were undertaken.  
 
4. Please elaborate regarding the fifth National Standards Plan which was supposed to be established 
in the second quarter of 2021, i.e. was the plan published? What are the main elements of the plan?  
 
ANSW ER: 
Korea has established the Fifth National Standards Plan (2021 -2025) with a view to achieving a 
digital transformation and developing carbon -neutral standards. The Plan was announced on 
14 June 2021.  
The Plan's key points are to develop standards for three major new -growth industries (i.e. Future 
Cars, System Semiconductors and Bio health  businesses) as well as standards for digital technologies 
such as Artificial Intelligence, Data and 6G technology. Standards will also be developed for new & 
renewable energies such as hydrogen, solar power and biofuel in order to promote the early 
commercialization of carbon -neutral technologies.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Produc tion and Trade  
3.3.2 Standards and other technical requirements  
3.3.2.4 Conformity assessment  
3.153.  "Korea maintains an APEC -TEL MRA Phase I with Canada (1997), the United States (2005), 
Viet Nam (2006), and Chile (2007) on recognition of test results for  telecommunications equipment 
and Phase II with Canada (2017) on recognition of certification results for telecommunications 
equipment; RTAs with the European Union (2011) and the United Kingdom (2021) with provisions 
on recognition of conformity assessmen t for electronics equipment; and an MRA with Singapore 
(2006) on electrical and electronic appliances under the Korea -Singapore RTA. Under the Industrial WT/TPR/M/414/Add.1  
 
- 135 - 
 
  Technology Innovation Promotion Act, the New Excellent Product (NEP) certification system 
continues to cover products manufactured with new technologies developed first in Korea or 
improved with innovative technologies.193 The certificate is valid for three years. NEP -certified 
products receive government support to expand sales channels and ac celerate technology 
development. NEP -certified products receive an additional qualification point in procurement by 
government and public organizations. According to the authorities, the NEP system does not affect 
international trade."  
 
5. Israel would lik e to understand more regarding Korea's decision -making process for signing MRAs: 
What are the criteria? What is the internal process in Korea? How are the sectors and partners for 
MRAs prioritized?  
 
ANSWER : 
Some of the MRA -related criteria include the standards stipulated in the Radio Wave Act, technical 
standards under the Enforcement Decree of the Radio Wave Act (EMC, wireless, SAR, wire, EMF), 
and others stipulated in public notices (notification of conformity evaluation s such as the Notice on 
Conformity Assessment of Broadcasting and Communications Equipment and Notice on Designation 
and Management of Testing Laboratories for Broadcasting and Communications Equipment). The 
domestic process of signing MRAs include exchang ing information, drafting, fine -tuning and signing 
of the agreement, issuing a public notification of the agreement, the two countries approving each 
other's designated agency  for the conformity assessment, and the MRA coming into effect. In 
addition, the sectors and partners for MRAs are prioritized by the deliberations by the Ministry of 
Science and ICT and the National Radio Research Institute.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.6 Government procurement  
3.3.6.1 Legislation  
3.218. "Procurement from SMEs remains covered by the main procurement legislation and the Act 
on Facilitation of Purchase of Small and Medium Enterprise -manufactured Products and Support for 
Development of Their M arkets; its company classification criteria seemingly raises concern.294 The 
2005 Act on Encouragement of Purchase of Green Products (known as the Law on the Promotion of 
Environmentally Friendly Products) requires government agencies and SOEs to purchase 
environmentally friendly products; as of 2021, it applied to 52 central government agencies (50 in 
2015), 245 local government bodies (438 in 2015), 36 public enterprises, 77 local public enterprises, 
95 quasi -governmental organizations (Section 3.3.5.2), 93 education authorities, 15 local research 
institutes, and 209 other public institutions (in total 922 agencies in 2021 and 893 in 2015).295 
Although the Law makes mandatory the purchase of environmentally friendly products, it provides 
exceptions for qua lity and availability reasons, as well as emergency procurement needs."  
 
6. a. Israel would like to ask Korea to specify the criteria for a company to be considered an SME 
under the AFPS Law, i.e. is the determination done on the basis of yearly revenue on ly? What 
is the threshold? What other factors are being considered?  
b. What are the considerations for adding or removing products from the list of 'competing 
sectors' under the AFPS Law? Are there any sectors that are excluded from the scope of the 
Law an d cannot be included in the list of 'competing sectors'?  
 
It would be appreciated if Korea could provide past statistics regarding the number of tenders and 
amount of procurement which was set aside and restricted for participation of SMEs only as a result  
of the AFPS Law. In addition, it would be appreciated if Korea could provide information on SME s 
which eventually won these tenders, i.e. were these Korean or foreign enterprises (including an 
indication of GPA/non -GPA country for foreign enterprises if p ossible), average yearly revenue of the 
enterprises which won the tenders and the sector under which the products were listed.  
 
ANSWER : 
According to the Framework Act on Small and Medium Enterprises, small and medium -sized 
enterprises (SMEs) must meet both the size and independence standards.  
 
As for the size criteria, the total assets must be less than 500 billion won and the average sales over 
3 years must meet the criteria for each major industry. Previously , the size criteria must meet the 
number of  employees and capital amount by industry, but since 2015, a single criteria of the average 
sales of over 3 years has been applied.  WT/TPR/M/414/Add.1  
 
- 136 - 
 
  * For example, reflecting the characteristics of the detailed manufacturing industry, 6 Manufacturing 
business types includi ng electrical equipment manufacturing: KRW 150 billion or less 
(USD  125 million), 12 Manufacturing business types including food manufacturing: KRW 100 billion 
won or less (USD 84 million), 6 Manufacturing business types including manufacturing of medical,  
precision, optics and clocks and wholesale and retail businesses: KRW 80 billion won or less 
(USD  42 million). For independence criteria, the total asset of the affiliated must be less than 500 
billion won, the company must not belong to a corporate group  subject to disclosure, and the average 
sales amount of the affiliate (as much as the investment ratio) must meet the size standards for 
each industry.  
 
Competitive products among SMEs are designated after consultation with the relevant ministries and 
deliberation by the operation committee of the competition system among SMEs with the 
recommendation of the chairman of the Korea Federation of Small and Med ium Business (K -BIZ) 
among products that are recognized as necessary to expand the sales channels of SMEs among 
products that are directly produced by Korean SMEs in Korea or in demand of public organization.  
 
When the minister of a relevant ministry requ ests the exclusion of the designation of the product, it 
may be decided in consideration of the possibility of competitive bidding among SMEs and the 
necessity of fostering SMEs related to the product, regarding whether or not to exclude it.  
 
Last but not least, please note that MSS is only involved in the deliberations on the designation of 
competitive products, which are valid for 3 years, and does not have any information on the number 
of nomination or limited competitive bids for SMEs, the amount of pro curement, and the sales of the 
winning company.  
 
 
ISRAEL – REVISED ANSWER  
2 TRADE AND INVESTMENT REGIMES  
2.6Foreign Direct Investment  
2.6.2 FDI restrictions  
Table 2.1 FDI restricted sectors, 2021  
Among the existing FDI restrictions, Israel would like to no te that Korea is applying discriminatory 
restrictions on foreign ownership in parts of the telecommunication sector (Wire 
communications/wireless and satellite communications, Other electronic communications). In these 
sectors, Korea does not allow more th an 49% of foreign equity for the vast majority of WTO 
Members. However, for a small number of WTO Members Korea is not applying any restrictions on 
foreign equity.  
 
Question 1. Does Korea plan to allow foreign equity in telecommunication sector without 
discriminating between WTO Members?  
 
ANSWER  
Korea currently allows the US, Australia, EU, Canada to own up to 100% of shares in 
telecommunication sector, according to the FTAs signed with these parties.  
 
As FTAs, in most cases, are regarded as exceptions f or non -discriminatory or MFN obligations, Korea 
is not planning to lift the restriction to all WTO members for now.  
 
However, Korea expects enlarging the scope of allowance to more WTO members, as more 
cooperation/IIAs become to be advanced between member s. 
  WT/TPR/M/414/Add.1  
 
- 137 - 
 
  JAPAN  
Report by the Secretariat (WT/TPR/S/414)  
3 Trade Policies and Practices by Measure  
3.1 Measures Directly Affecting Imports  
3.1.1 Custom procedures, valuation, and requirements  
 
(Question 1: Paragraph 3.6, page 54)  
 
We recognize that timber legality is confirmed following "the revised Act on the Sustainable Use of 
Timbers" and related regulation, which have influence on import declaration in Para  3.6. Please 
provide the following information.  
How is the timber legality of domestic timber chec ked and confirmed under the Act and related 
regulation?  
How many country specific guidelines of trading partners are prepared at present. Do you plan to 
make these guidelines public in the future?  
Whether any penalty in case of violation is stipulated in t he Act and the related regulations? If so, 
could you explain the detailed the content of penalty?  
We recognize the measures under the Act and related regulation put in force in October 2018. Is the 
revision of the related regulation under the Act scheduled  in the future, for example the review in 
the five years after the Act took into effect?  
 
ANSWER : 
Anyone who intends to operate a timber production business shall file a registration according to the 
Act on the Sustainable Use of Timbers of cutting, sawmil ling, or distributing standing timber or 
bamboo defined in the Creation and Management of Forest Resources Act (including sawmilling and 
distribution of raw timber and imported products).  
 
66 country specific guidelines have been prepared so far and provid ed to domestic importers as 
reference materials for their import declaration.  
 
The Minister of the Korea Forest Service may issue an order to suspend the sale of any timber or 
timber product, which has not been proven to be legally felled as a result of an inspection under the 
Act, or an order to return or destroy such timber or timb er product. Persons fail to comply this order 
or operate a timber production business without being registered shall be punished by imprisonment 
for not more than 3 years or by a fine not exceeding 30 million won.  
We are having an internal discussion for the revision of the related regulation, and the  schedule 
information is not available at this moment.  
 
We recognize that timber importers should submit the import declaration including the information 
of timber legality, following "the revised Act on the S ustainable Use of Timbers" and related 
regulation. Please provide the following information regarding custom clearance through UNI -PASS 
in Para 3.6.  
Average number of days which is necessary for custom clearance through UNI -PASS  
Whether custom clearance th rough UNI -PASS is conducted by checking on document basis only.  
If there is any insufficiency in examination through UNIPASS, how do you examine additionally to 
verify timber legality? If possible, please raise examples of additional examinations.  
 
ANSWER : 
The inspection before customs clearance is conducted focusing on the documents at present.  
 
The Wood identification  and species sampling with microscope is followed after customs clearance, 
and we are on the process of developing analysis technologies to strengthen the system.  
 
3.1.6.1 Anti -dumping and countervailing measures  
(Question 2: Paragraph 3.69, page 74)  
The report by the Secretariat refers to the panel report of Korea – Sunset Review of Anti -Dumping 
Duties on Stainless Steel Bars (DS553) published on 30 November 2020, which found the 
likelihood -of-injury determination in the third sunset review against Ja panese stainless steel bars is 
inconsistent with the Anti -Dumping Agreement.  
In this regard, Japan would like to ask whether Korea has any plan to withdraw its appeal of the 
panel report, comply with the panel's recommendation to bring the measure consiste nt with the WT/TPR/M/414/Add.1  
 
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  Anti-Dumping Agreement, and abolish the imposition of the anti -dumping duties determined by the 
fourth sunset review. If not, Japan would like to ask Korea to indicate the reasons why Korea still 
maintains the appeal and/or the imposition of an ti-dumping duties despite the panel's objective and 
sound findings of inconsistency with the Anti -Dumping Agreement.  
 
ANSWER : 
On 22 January 2021, Korea has exercised its right under Article 16 of the Understanding on Rules 
and Procedures Governing the Set tlement of Disputes to appeal the report of the panel in Korea – 
Sunset Review of Anti -Dumping Duties on Stainless Steel Bars  (DS553). Korea's decision to appeal 
the panel report was due to the deeply flawed nature of the panel's findings in Korea – Sunset  
Review of Anti -Dumping Duties on Stainless Steel Bars  (DS553). As articulated in detail in its Notice 
of Appeal (WT/DS553/6), Korea believes that some of the errors committed by the panel in in Korea 
– Sunset Review of Anti -Dumping Duties on Stainless Ste el Bars  (DS553) are so serious as to 
threaten not only the interest of Korea, but also the predictability  and stability of the WTO's dispute 
settlement regime. Given the systemic interest at stake, Korea finds it important to rectify the errors 
of the panel report in Korea – Sunset Review of Anti -Dumping Duties on Stainless Steel Bars  (DS553) 
through the appeal.  
That being so, Korea recalls that the panel in Korea – Sunset Review of Anti -Dumping Duties on 
Stainless Steel Bars  (DS553) has properly r ejected Japan's key claim in that dispute, that the Korean 
authorities erred in their likelihood -of-injury determination by failing to properly account for the 
product distinction between the Japanese and Korean stainless steel bars. As such, Korea conside rs 
that the anti -dumping duties in question can be maintained (without having to withdraw) simply by 
addressing such minor technical issues identified by the panel even if the panel report is to be 
adopted without appeal. As previously conveyed, Korea invi tes Japan to review the final 
determination of the Korean authorities in the fourth sunset review against Japanese stainless steel 
bars, in which all of the technical issues raised by the panel in Korea – Sunset Review of 
Anti-Dumping Duties on Stainless S teel Bars  (DS553) are properly addressed.  
 
3.3 Measures Affecting Production and Trade  
3.3.3.2 Quarantine regulations  
(Question 3: Paragraph 3.177, page 105)  
The "temporary measures" taken on Japanese foods pointed out in the Secretariat report should be 
consistent with WTO agreements, including the SPS Agreement, ensuring understanding and 
transparency of the measures for exporting Members. In this regard, Japan would like to request an 
explanation from the Korean government on the consistency of the meas ures with WTO Agreements, 
what conditions it requires to be satisfied to lift those measures, and whether necessary reviews are 
conducted as to if such conditions are satisfied.  
 
ANSWER : 
As confirmed in Korea – Radionuclide (DS495), the relevant "appropria te level of protection" (ALOP) 
adopted and applied by Korea is to "maintain radioactivity levels in food consumed by Korean 
consumers at levels that exist in the ordinary environment – in the absence of radiation from a major 
nuclear accident (such as Fuku shima Daiichi Nuclear Power Plant (FDNPP) accident) – and thus 
maintain levels of radioactive contamination in food that are 'as low as reasonably achievable' 
(ALARA), below the 1 mSv/year radiation dose limit". Stated differently, Korea's ALOP consists th ree 
integrated elements, with "absence of radiation from a major nuclear accident such as FDNPP 
accident" (i.e., zero additional radioactivity level) being the ultimate goal pursued in accordance with 
the principle of ALARA. If despite all reasonable measu res that are in place (including but not limited 
to the measures in question) the radiation dose exceeds 1 mSv/year limit, Korea's ALOP is pursued 
without being confined by the ALARA principle.   WT/TPR/M/414/Add.1  
 
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  MALAYSIA  
GOVERNMENT REPORT  
Page 5  
Digital New Deal  
3.4. The COVID -19 pandemic has sparked a sharp increase in demands for online and contactless 
services, accelerating the transition to a digital economy. In line with this trend, the Korean 
Government introduced a "Digital New Deal" to promote digital inno vation across the economy and 
to build infrastructure for online and digital industries. The Korean Government aims to create a 
strong ecosystem for the data, network, and AI industries, collectively referred to as the "D.N.A. 
industries," by supporting th e use of and convergence among data, 5G, and AI technologies across 
all industries. It is also going great lengths to build infrastructure for smart medical services using 
5G and IoT, all in an effort to promote online services in the areas closely related  to people's lives, 
and to invite small business owners to take full advantage of smart technologies.  
 
Question:  
1. Appreciate if the Republic of Korea could explain the framework of the "Digital New Deal" to 
promote digital innovation across the economy and  to build infrastructure for online and digital 
industries, and how it was implemented.  
 
ANSWER : 
Digital New Deal consists of four areas (strengthening the DNA ecosystem, digitalizing educational 
infrastructure, nurturing the contactless industry, and digitalizing social overhead capital). The 
Korean government has been investing in infrastructure tha t accelerates the use of and convergence 
among data, 5G, and AI technologies across all industries by collecting various data including data 
for AI training, and building 5G and networks. At the same time, it is pursuing digitalization of 
educational infra structure and SOC, and nurturing of contactless industry. Korea expects that such 
government investment serves as a catalyst to invite private sector's active participation in these 
efforts.  
 
2. What are the challenges identified and how did Republic of Korea overcome the challenges?  
 
ANSWER : 
The Korean government has drawn up the Korean New Deal to preemptively respond to economic 
and social structural transformation and economic crisis triggered by COVID -19. "The Korean New 
Deal" consists of three pilla rs: "Digital New Deal to respond to a growing demand for contactless 
services and the accelerating transition towards a digital economy; "Green New Deal" to respond 
to an increasing demand for a low -carbon, green economy, and a swift transition into a gree n 
economy; and lastly "strengthened safety net" to respond to diversified forms of employment and 
the aggravated wealth disparities. The Korean government is pushing forward the Korean New 
Deal by placing a focus on these three pillars.  
 
3. Report on the "D. N.A. industry" initiatives includes Korea's plan to develop a "data dam" project 
which aims to establish infrastructure for collecting and trading big data for use in finance, 
environment and transportation services. If Korea can share the more specifics o n this initiative.  
 
ANSWER : 
"The Data Dam", as the key task under the "Digital New Deal initiative", is the project that promotes  
Artificial Intelligence(AI) and data economy by strengthening the foundation for data collection, 
processing, and utilization.  This project consists of several core projects below such as 1) building 
data sets for training Artificial Intelligence(AI), 2) establishing big data platforms and centres, 
3) Artificial Intelligence(AI) Convergence project and 4) Cloud flagship project e tc. 
 
Project name  Contents of the projects  
Building data sets  for training 
artificial intelligence  Based on the demand of public and private sectors, building the large -
scale data sets for training AI, which is central to AI development and 
make them accessible.  
Establishing big data platforms 
and centres  Establishing big data platforms and centres  by each sector, in which 
high-quality data can be produced, analyzed, utilized, and traded.  
Artificiel  Intelligence convergence 
project (AI+X)  In order to promote innovation in each sector through convergence 
between AI and industries, supporting  AI developm ent & utilisation and 
AI safe -learning based on large -scale data collected from each sector.  WT/TPR/M/414/Add.1  
 
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  Project name  Contents of the projects  
Cloud flagship project  Supporting the development of integrated platforms and services in 
cloud computing services through business consortiums in order to 
maintain enterprise continuity and secure competitiveness in industries.  
 
4. What (if any) changes would this entail to the existing personal data protection regime in Korea?  
 
ANSWER : 
The Personal Information Protection Commission (PIPC ) is trying to adopt a right to data portability 
in the amendment to the Personal Information Protection Act (PIPA) as in the "Digital New Deal". 
The right to data portability would enable data subjects to strengthen the right to self -determination 
in the digital era by using and transferring  their own data. It is also expected to alleviate data 
monopoly through  which data  is concentrated to a few platform businesses and to pave a way for 
various economic actors including start -ups to safely use data.  
 
Page  7 
3.3.2  Manufacturing: Becoming a Strong Industrial Powerhouse  
3.15 To reduce pollutants produced at manufacturing sites, the Korean Government introduced a 
total of 98 clean factories and designated around 50 products for remanufacturing by 2020. Korea 
also aims to lead the new economic order in a greener society under the 2050 carbon neutrality 
vision, and is planning to establish the "Visions and Strategies for Industrial Transformation to 
Achieve Carbon Neutrality by 2050."  
 
Question:  
5. Appreciate it if the Republic of Korea could elaborate on the meaning of "clean factories" and the 
current progress including on the 50 products that have been designated for remanufacturing by 
2020. Additionally, appreciate further elaboration on "Visions  and Strategies for Industrial 
Transformation to Achieve Carbon Neutrality by 2050."  
 
[ANSWER]  
The role of the Korean Government in "introducing" clean factories operates supporting programs 
for process analyses and R&Ds to apply Cleaner Production to manu facturing company.  
Remanufacturing refers to industrial activities in which products are recovered  after use and return 
them to their original performance or higher performance through processes such as disassembly, 
washing, inspection, repair, adjustment,  and reassembly. Products (or parts) for remanufacturing 
are designated under the consultation with the  Ministry of Trade, Industry and Energy and the 
Ministry of Environment in consideration of environmental and economic performance.  
 
Page 7 to 8  
3.3.3.  Energy: Achieving Sustainable Growth and Enhancing Quality of Life through Energy 
Transition  
3.19.  In December 2020, Korea established plans for the power industry and new and renewable 
energy sectors. For the power industry, the Korean Government adopted  the "9th Master Plan for 
Power Supply and Demand," which includes forecasts for power supply and demand for 2020 -2034 
alongside plans for demand management, power facilities, improvement of the power market 
system, and reduction of greenhouse gas emission s. It also announced the "5th Master Plan for New 
and Renewable Energy," which aims to generate 25.8% of electricity from new and renewable energy 
sources by 2034. This plan covers improvement of the power system, the expansion of demand for 
renewable ener gy, and comprehensive policies on new and renewable energy such as hydrogen.  
 
Question:  
6. Are there any plans to use biogas in electricity generation?  
 
ANSWER : 
If biogas is used to produce electricity, it is still possible to issue a certificate (REC) under the RPS 
system.  
 WT/TPR/M/414/Add.1  
 
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  Page 8  
4 TRADE AND INVESTMENT POLICY  
4.1 Multilateral Trade Cooperation  
4.1.1 WTO Negotiations  
Plurilateral negotiations and other discussions  
4.9. Korea has also continued to participate in discussions on MSMEs since it co -sponsored  the Joint 
Ministerial Statement, Declaration on the Establishment of a WTO Informal Work Programme for 
MSMEs in 2017. It also joined in adopting a package of declarations for MSMEs in December 2020. 
Korea is making its utmost effort to provide improved ac cess to trade related information for MSMEs 
and assistance for their digitalization under the declarations.  
 
Question:  
7. Appreciate it if the Republic of Korea could explain how the government ensured the 
sustainability of the SMEs especially during the pandemic.  
 
ANSWER : 
Last year, MSMEs were hit hardest by the unprecedented pandemic, the ministry of SMEs and 
Startups has spared no efforts to help these small businesses overcome the crisis. In this context, 
MSS has focused on strengthening the resilience  of MSMEs through digitalization such as introduction 
of smart technology.  
 
8. What measures have been taken and how were they implemented?  
 
ANSWER : 
Last year, MSMEs  were hit hardest by the unprecedented pandemic, the ministry of SMEs and 
Startups has spared  no efforts to help these small businesses overcome the crisis. In this context, 
MSS has focused on strengthening the resilience of MSMEs through digitalization su ch as introduction 
of smart technology.  
A total of 16.2 trillion won (USD 13.5 billion) in direct support was provided five times to small 
business owners who suffered business losses due to prolonged quarantine measures due to 
COVID -19 and separately, new  loans and guarantees worth 7.87 trillion won (USD 6.57 billion) to 
MSME were granted.  
 
The MSS created a voucher program to allow SMEs to build up non -contact business environment in 
six service areas in 2020. The MSS created a voucher program to allow SM Es to build up non -contact 
business environment in six service areas in 2020.  
* ① teleworking ② video conferencing ③ network & security ④ online training ⑤ digital adoption 
consultations ⑥ day care services for children  
 
MSS quickly changed to "an online e xport video conference meeting ", replacing the offline export 
consultations and has supported building up 30,000 Smart factories by 2022 to assist manufacturing 
SMEs in strengthening their competitiveness.  
 
Page 9  
4.1.1 WTO Negotiations  
Plurilateral negotiations and other discussions  
4.10.  As an environment -related issues have assumed an increasing importance all across the world, 
the Trade and Environmental Sustainability (TESSD) was launched in November 2020 to generate 
concrete results  relating to environmental sustainability. Along with Australia and Singapore, Korea 
circulated a joint communication on liberalising trade and environmental goods and services and 
exchanging views on trade -related environmental measures.  
 
Question:  
9. Are there any tangible results or progress of TESSD since its establishment?  
 
ANSWER : 
Since its establishment, TESSD held four formal meeting that members exchange their views on 
various trade and environmental topics such as climate -related tra de measures and policies, 
Environmental goods and services liberalisation, and circular economy. As tangible results, TESSD 
members are now having a discussion to present the MC -12 TESSD statement.  
 WT/TPR/M/414/Add.1  
 
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  Page 10  
4.1.3 Development Cooperation and Support for Developing Countries  
4.18.  As a member of the international society, Korea is carrying out a wide range of activities to 
reinforce the trade capabilities of developing countries and to help them integrate with the 
multilateral trade system.  
 
Question:  
10. What are the activities undertaken by the Republic of Korea to reinforce the trade capabilities 
of developing countries? Appreciate it if the Republic of Korea could also list the beneficiary 
countries and in what ways they are benefiting from those activitie s? 
 
ANSWER : 
Korea Customs is carrying out several high -level, working -level invitation seminars and workshops 
to reinforce the capabilities of developing countries in customs administration. What is more, we are 
supporting the establishment of system through analyzing the customs -related infrastructure of 
developing countries and advising appropriate knowhow.  
 
4.20. Furthermore, Korea has provided a range of bilateral assistance to developing countries to 
help build their capacity related to trade and customs duties.  
 
Question:  
11. What are the bilateral assista nces provided to developing countries and what countries are 
involved and the types of assistances provided?  
 
ANSWER : 
Korea Customs has undertaken bilateral trainings to respond to the very needs of developing 
countries in the area of disruptive technolog ies, e -commerce and AEO based on the prior survey. 
The bilateral seminar contains expert -level presentation, consulting, on -site visit or programmes. 
We are grateful for the attention to bilateral seminar and we hope to have discussion on the bilateral 
advanced  seminar in the future.  
 
Page 13  
4.4 Investment Policies  
Promoting foreign investment and enhancing the substantiality  
4.39. The Korean Government is making an effort to promote re -investment by foreign -capital 
invested companies, to encourage foreign investment in high value -added sectors and to advance 
infrastructure to induce investment.  
4.40. On 4 February 2020, the Foreign Investment Promotion Act was amended to allow the 
recognition of investment of unappropriated retained earning s in the establishment or extension of 
plants as foreign investment, thereby promoting re -investment within Korea by foreign -capital 
invested companies.  
4.41. In addition, to attract substantive foreign investment, the Government is taking into account, 
inter alia, the market competitiveness of the products by investors, their presence at home, and the 
possibility of attracting domestic investment.  
 
Question :  
12. What current incentive schemes are being offered primarily to attract foreign investors 
during this  COVID -19 pandemic?  
 
ANSWER : 
No current incentive scheme was particularly more provided during the pandemic.  
Rather, during the pandemic, to complement current incentive schemes, digital/online IR events 
were actively held to make up for the sharp decline of FDI.  
 
SECRETARIAT REPORT  
 
Page 42  
2.5 Trade Agreements and Arrangements  
2.5.1 WTO  
2.4.2 Between June 2016 and June 2021, Korea was involved in seven disputes at the WTO: four 
as a complainant, and three as a respondent. It also participated as a third party in 30 cases.  
 WT/TPR/M/414/Add.1  
 
- 143 - 
 
  Question :  
13. Republic of Korea is an active user of the Dispute Settlement  Mechanism (DSM). As the 
Republic of Korea has several cases pending for appeal and the Appellate Body is now 
paralyzed , what would be Republic of Korea's proposal to resolve this issue?  
 
ANSWER : 
As the judicial arm of the WTO, the WTO dispute settlement system has been a central element in 
providing security and predictability to the multilateral trading system. However, due to the current 
impasse of the Appellate Body, a total of 21 disputes appealed  into the void remain unresolved. As 
a firm supporter of the multilateral trading system, Korea is ready to engage constructively in 
relevant discussions to find a solution to enhance the functioning of the dispute settlement system 
with a view to accommodating the needs of WTO members. At the same time, Korea would like to 
call on the whole Membership to work on the restoration of the system before the current paralysis 
inflicts critical damage on the very system.  
 
Page 51  
2.6.3 FDI  incentives  
2.6.3.3Industrial site support  
2.84. Under the industrial site support system, foreign investment zones (FIZs) designated by the 
Foreign Investment Promotion Act, free trade zones (FTZs) under the Act on Designation and 
Management of Free Trade Zones, and fre e economic zones (FEZs) prescribed by the Special Act on 
Designation and Management of Free Economic Zones are operated to attract foreign investment 
(Table 2.3).  
 
Question:  
14. How does an area or development get gazetted as an FTZ/FEZ and who is the overarching 
authority?  
 
ANSWER : 
Designation of FTZ is published after determined through the following process : review whether 
requirements for designation  of FTZs prescribed in th e laws are met; consultation  with the relevant 
authorities; and the FTZ committee. Such publication process is generally managed by the MOTIE. 
Besides, the administrative authorities of FTZs by classification(industrial complexes, airports, and 
harbors) ar e as follows: the Minist ry of Trade, Industry and Energy (MOTIE);t he Minist ry of Land, 
Infrastructure and Transport (MOLIT);and the Minist ry of Oceans and Fisheries (MOF), respectively.  
When the provincial governor applies to the Minister of Trade, Industry  and Energy  for the 
designation of a free economic zone, it shall be designated through deliberation and resolution by 
the Free Economic Zone Committee  belong to Ministry of Trade, Industry  and Energy . 
And overarching authority is Ministry of Trade, Industry and Energy.  
 
15. Are there any future plans for new FTZ/FEZ?  
 
ANSWER : 
Free economic zones were designated four times in 2003 and 2008 and 2013 and 2020, and new 
free economic zones will be reviewed to support the development of new industries and serv ice 
industries related to the Fourth Industrial Revolution  
With the purpose of strengthening the capacity of FTZs, 'FTZ 2030 innovation plan' was prepared in 
November 2020 and is being carried out.  
 
Page 52  
2.85.  Tax incentives granted by these zones to fo reign-invested enterprises vary (Table 2.4). 
Foreign -invested businesses may benefit from non -tax incentives, including, inter alia, cash grants, 
provision of infrastructure facilities, foreign education facilities and research facilities, rent reduction 
or exemptions, eased labour regulations, and free foreign exchange transactions.  
 
Question:  
16. How does the mechanism of funding assistance, including cash grants works?  
 
ANSWER : 
Incentives are provided in consultation with companies, local governments, and the central 
government within the scope prescribed by the Foreign Investment Promotion Act and the Free 
Economic Zone Act . WT/TPR/M/414/Add.1  
 
- 144 - 
 
  In terms of cash grants to foreign -invested businesses , FTZ applies the Foreign Investment 
Promotion Act generally, and such cash grants are identical to those of FIZ.  
cash grants, according to 'Foreign Investment Promotion Act ', is eligible for foreign investments 
those which have high levels of positive economic effect, such as high -technology investments or 
R&D centers. Certain  proportion of total investment amount, according to the review of Investment 
Committee, will be gran ted as cash.  
The specific process is as follows:  
1) reporting investment, consulting 2) submitting investment plan 3) committee review 
4) submitting application 5) contracting 6) granting cash  
Other than that, FTZ provides incentives such as rent reductio n, relaxation of labor regulations, etc.  
 
Page 56  
3.1 Measures Directly Affecting Imports  
3.1.1  Customs procedures, valuation, and requirements  
3.1.1.1  Procedures  
3.9. Clearance continues to proceed through a two -track control management system consisting of 
low-risk (safe track) fast clearance (e.g. exemption of inspection, and self -audits) and high -risk 
(non-safe track) clearance (e.g. document audits and physical ins pections). Since 2009, an 
Authorized Economic Operator (AEO) Programme has been in place for nine types of entities: 
exporters, importers, customs brokers, warehouse operators, bonded transporters, freight 
forwarders, sea carriers, air carriers, and ground  handlers. As from October 2017, the electronic 
clearance examination has been operational for all goods imported by AEO companies. As of 2020, 
under the Enforcement Rule on the Authorization and Management of Authorized Economic 
Operators (AEO Enforcement  Rule), 832 certified entities (815 in 2016), consisting of 143 importers, 
275 exporters, 309 logistics, and 105 brokers, were qualified for special treatment in customs 
procedures, including fewer physical inspections, exemption from customs audit, and fe wer 
administrative fines. In 2020, 26% (same as in 2015) of imports entered under the AEO system. 
Korea continued to expand its AEO -related mutual recognition arrangements (MRAs); as at 
June 2021, it had signed MRAs with 13 partners: the United States (25 June 2010); 
Canada  (25 June 2010); Singapore (25 June 2010); Japan (20 May 2011); 
New Zealand  (25 June 2011); China (27 June 2013); Hong Kong, China (13 February 2014); 
Mexico  (11 March  2014); Turkey (9  June 2014); Israel (22 March 2015); the Dominican Rep ublic 
(23 April 2015); India (8  October  2015); the Separate Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu (Chinese  Taipei) (22 December 2015); Thailand (27 December 2016); 
Australia  (6 July 2017); United Arab Emirates (6 July 2017); Malaysia (16 Oc tober 2017); 
Peru (14 December  2017); Uruguay (15 December 2017); Kazakhstan (22 April 2019); 
Mongolia  (30 September 2019); and Indonesia (6 February 2020). According to the KCS, MRA 
benefits for 286 (300 in 2018) importers and exporters in 2019 amounted t o USD 385.8 million 
(USD  357.7  million in 2018) and, inter alia, related to faster clearance and duty payment for the 
former and lower inspection fee in overseas customs territory for the latter.  
 
Question:  
17. What is the level of commitments of Other Govern ment Agencies (OGA) and Permit Issuing 
Agencies (PIA) in the Republic of Korea in providing preferential benefits to AEO companies?  
 
ANSWER : 
There are no benefits provided to AEO businesses by governmental organizations besides KCS. 
However, for SMEs that want to register for AEO, there are some policies where some governmental 
organizations provide certain fees (e.g. consultation) needed for AEO registration process.  
 
18. What is the amendment to laws or policies (if any) carried out in the Republic of Korea to 
provide such preferential benefits?  
 
ANSWER : 
At the time of the creation of the system, Customs Act was amended to allow AEO  companies to 
provide benefits related to customs clearance procedures.  
 
19. The 13 MRA's signed by the Republic of Korea with partner countries are bilateral in nature, 
does the Republic of Korea has intention to negotiate and sign multilateral or regional MR As? 
 WT/TPR/M/414/Add.1  
 
- 145 - 
 
  ANSWER : 
So far, Korea has signed 22 MRAs, and bilateral cooperations with three countries (Viet Nam, 
Russian  Federation, and United Kingdom) are currently underway. Korea is not initiating multilateral 
or regional AEO MRAs at the moment.  
 
20. How effectiv e and efficient are the AEO Programme in movement of goods and how receptive 
are the companies in the Republic of Korea towards the programme?  
 
ANSWER : 
Once a business becomes AEO in Korea, the customs inspection is estimated to decrease by 85%. 
There are no recent reports about the satisfaction rate of AEO businesses, however, most businesses 
renew their AEO status.  
 
Page 58  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements  
3.1.1.1 Procedures  
3.15. Korea's trade facilitation efforts remain appreciated at the international level, and the KCS is 
considered to be at the cutting edge of international best practice. According to World Bank Doing 
Business data, in 2020  Korea ranked 36th among 190 economies (31stof 189 economies in 2016) in 
ease of trading across borders, while gains from its trade facilitation by 2020 were estimated at 
2.18% of GDP (USD 29 billion) and 8.18% of exports (USD 52 billion). According to the  OECD trade 
facilitation indicators, as of 2019, Korea matched or exceeded best performance across the more 
than 160 participating countries in the areas of information availability, involvement of trade 
community, advance rulings, fees and charges, simpli fication and harmonization of documents, 
automation of border processes, streamlining of procedures, internal border agency cooperation, 
cross-border agency cooperation, governance, and impartiality. Between 2017 and 2019, 
performance improved in the areas  of involvement of the trade community and advance rulings. The 
2019 OECD appraisal indicated that possible improvements could involve the availability of 
comprehensive information about applicable fees and charges, the percentage of procedures 
expedited e lectronically, the expansion of the use of pre -arrival processing of goods and of 
post-clearance audits, and the expansion of the use of AEO programmes.  
 
Question :  
21. Malaysia commends the Republic of Korea on its achievement regarding the Korea Customs 
Service (KCS) which is considered to be at the cutting edge of international best practice. 
Could Republic of Korea please share the best practices and challenges faced and how did 
the Republic of Korea overcome the challenges?  
 
ANSWER : 
First of all, we expres s our gratitude for Malaysia's interest in KCS's capacity building. Every year, 
KCS conducts twelve capacity -building projects. We aim to strengthen our partners' capabilities by 
designing programs they request, dispatching experts, etc. We are happy to en hance the partnership 
with Malaysia in terms of capacity building and look forward to more opportunities to discuss the 
matter further.  
 
Page 65  
3.1.3.3  "Flexible" tariffs  
3.37.  Korea continues to apply temporary MFN duties (termed "flexible" tariffs). The flexible tariffs 
mechanism includes not just the adjustment and seasonal duties (see below), but also autonomous 
tariff quotas and "usage" tariffs, as well as safeguard and spe cial safeguard duties 
(Sections  3.1.3.8.2 and 3.1.6.2).The system allows the increase or decrease of certain tariffs at the 
authorities' discretion, providing considerable scope to encourage or discourage imports of particular 
items to stabilize prices, pr otect local producers, ensure a steady supply, and implement other 
industrial policy. In 2016, the authorities reduced the role of the flexible tariff system on price 
stabilization, considering the country's low inflation and continued drops in prices of o il and other 
raw materials and sought to increase its support for domestic companies and vulnerable industries; 
the situation remains unchanged. Furthermore, at the time of the previous Review, to help offset a 
rise in costs for farmers, the Government off ered lower import duties on animal feed.  
 WT/TPR/M/414/Add.1  
 
- 146 - 
 
  Question :  
22. Does the Republic of Korea plan to further reduce the tariffs?  
 
ANSWER : 
Currently Korea does not plan to reduce the tariffs. But Korea has implemented the tariff concession 
precisely without delay according to the WTO agreement such as the ITA Expansion. And a number 
of many FTAs and multilateral trade agreements in which Korea participated are having the effect 
of lowering the tariff rates.  
 
Page 66 & 207  
Adjustment duties  
3.40.  In 2021, adjustmen t duties applied to 19 six -digit tariff items (or 14 different types of 
product), covering mainly certain fish and seafood, rice preparations, sauces, plywood, and naphtha, 
compared to 18 six -digit tariff items (or 13 different types of product) in 2016 (T able A3.3). 
Ad valorem  adjustment duties now range from 0.5% on naphtha to 50% on steamed or boiled rice, 
compared to general rates ranging from 8% (e.g. rice, plywood, and sauces) to 30% (oak 
mushrooms), with the biggest difference affecting rice preparat ions. Alternate duties, where 
applicable duties are the higher of an ad valorem or a specific duty, affect four six -digit tariff lines 
in 2021. Several products subject to adjustment duties, such as certain fish and plywood items, 
remain unbound; adjustmen t duty rates for the four bound items are below their binding level. In 
2017, the adjustment tariff for frozen saury was lowered from 28% to 26% in consideration of 
increased demand for fish bait. In 2021, this tariff was adjusted to 24%, considering the o utbreak 
of COVID -19 and domestic and international market situations.  
 
Question:  
23. The Republic of Korea has applied the adjustment duties of 10% on plywood (4412.31, 
4412.33, 4412.34, 4412.39 and 4412.99) from 2020 to 2021. Furthermore, in November 
2020, t he Ministry of Economy and Finance has notified the imposition of anti -dumping duty 
(AD) on the imports of plywood more than 6mm in thickness (HS4412.31, 4412.33 or 
4412.34), originating from Malaysia, for three years, starting 6 November 2020 to 
5 Novembe r 2023. Imports of plywood declared after 8 May 2020 also have to abide by the 
AD duties. The AD duties range from 4.73% to 38.10%. The imposition of AD and adjustment 
duties of importation of plywood from Malaysia has formed trade barriers for Malaysia's 
export of plywood to the Republic of Korea, and it has been considered one of the major 
reasons for the declining export trend to the Republic of Korea in the recent years.  
 
ANSWER : 
 
Through the sunset review of the imposition of AD on imports of polywood, KTC(Korea Trade 
Commission) determined that there is a likelihood of continuation /recurrence of injury in case of 
cessation of duties. The imposition of AD according to the KTC's dec ision is unfair trade corrective 
measures under the WTO AD agreement, which is not a trade barrier.  
The imposition of the adjustment duties is equally applied to all importing countries to Korea. The 
adjustment duties, therefore, does not form a trade barr ier only to a specific country.  
 
24. Could Republic of Korea reconsider the imposition of the adjustment duties for plywood? 
Please provide more information on the specific rationale(s) for changing/raising the 
"adjustment tariff", and when would it be reviewe d? 
 
ANSWER : 
 
The adjustment duties may be assessed, inter alia, when there exist risks for the domestic market 
or the domestic industrial foundation to be undermined by an increase in the import of goods 
including agricultural, forest and livestock products, whose inte rnational competitiveness is weak, 
hence making it necessary to correct or prevent them from such risks.  
The relevant government authorities or interested party of private sector may request the imposition 
of the adjustment duties on specific goods. In ca se of plywood, the Korea Forest Service is 
responsible for reviewing the adjustment duty issue.  
 WT/TPR/M/414/Add.1  
 
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  Page 79  
3.2.4 Export support and promotion  
3.2.4.1 Subsidies  
3.84. Korea does not have export subsidy commitments; during the review period, it continued to 
use export subsidies for certain farm products under the provisions of Article 9.4 of the WTO 
Agreement on Agriculture for developing countries.113 Despite their intention at the time of the 
previous Review, the authorities notified to the Com mittee on Agriculture pending export subsidy 
data (2009 -13) in 2017 rather than in 2016, as well as relatively recent export subsidy data 
(2014 -17) in 2019.114 These subsidies totaled  KRW 32.92 billion (2015), KRW 36.72 billion (2016), 
KRW 39.6 billion (20 17), KRW 30.52 billion (2018), and KRW 34.41 billion (2019), and they 
continued to cover fruit, flowers, vegetables, kimchi, ginseng, livestock, grain and processed food, 
and traditional liquor. The subsidies were used to reduce exporters' marketing/logist ics costs in 
accordance with the Framework Act on Agriculture, Rural Community, and Food Industry 
(Article  59), and are exempt from WTO reduction commitments. Corporate income tax relief to 
industries located in export -oriented FTZs was eliminated in 2019 (Sections 2.7.3.1 and 
3.3.1.2.2.2); nevertheless, firms having applied for it on or before 31 December 2018 may still 
benefit.  
 
Question:  
25. Does the Republic of Korea support the oilseeds and vegetable oils sector, especially for 
export purposes, to help c ushion the impact of the COVID -19 pandemic?  
 
ANSWER : 
Korea did not support the export of oil seeds and vegetable oils sector to help cushion the impact of 
the COVID -19 pandemic.  
 
Page 91  
3.3.1.2.2.2 Other support  
Sector -specific  
3.125. A July 2020 Korean New Deal initiative (Sections 1.2.1 and 1.2.4) to invest KRW 160 trillion 
(USD 133 billion) over 2020 -25 based on two main policies, the Digital New Deal (KRW 58.2 trillion) 
and the Green New Deal (KRW 73.4 trillion), aimed to bolster jo b creation and enhance the 
competitiveness of the domestic manufacturing sector by increasing public investment in digital and 
green energy infrastructure.162 It aims to also to strengthen the employment and social safety net 
(KRW 28.4 trillion) by, inter alia, expanding unemployment insurance coverage to all forms of 
employment. Local governments and the private sector would contribute KRW 25.2 trillion and 
KRW 20.7 trillion, respectively, while the central Government would cover the remaining amount. 
The initiative includes projects for expanding the integration of 5G and AI into industries, promoting 
remote working in SMEs, promoting prospective businesses to lead the green industry, establishing 
low-carbon and green industrial complexes, promoting renewa ble energy use and supporting a fair 
transition, and expanding the supply of electric and hydrogen vehicles. Under the Digital New Deal 
initiative, several support measures, including vouchers, funds, grants, and guarantees, for four 
sectors (strengthening  the DNA ecosystem, digitalizing educational infrastructure, nurturing the 
contactless industry, and digitalizing social overhead capital) are envisaged.  
 
Question 26:  
SMEs, venture start -ups and micro enterprises that seek to create new services by utilizing AI and 
Data or contactless, digitalized workplace, and also promising start -ups with innovative ideas on 
contactless sectors are qualified for the support measures.   
 
ANSWER : 
SMEs, venture start -ups and micro enterprises that seek to create new services by utilizing AI and 
Data or contactless, digitalized workplace, and also promising start -ups with innovative ideas on 
contactless sectors are qualified for the suppor t measures.  
 
Question 27:  
Would also appreciate if Korea could share the breakdown of allocated funding for the offered support 
in these four sectors.  
 
ANSWER : 
The Korean government budget worth about KRW 44.8 trillion will be invested in the Digital New 
Deal over the period of 2020 -25. Specifically, KRW 31.9 trillion is allocated for Strengthening the WT/TPR/M/414/Add.1  
 
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  D.N.A. Ecosystem, and KRW 0.8 trillion for Digitalizing Educational Infrastructure, and 
KRW 2.1 trillion for Nurturing the Contactless Industry, and KRW 10 trillion for Digitalizing Social 
Overhead Capital(SOC).  
 
3.127. Subsidies for promotion of solar panels and  other renewable energy sources  to support 
the shifting away from nuclear and fossil fuel have been on the rise, from KRW 0.51 trillion in 2016 
to KRW 0.5 trillion in 2017, KRW 0.6 trillion in 2018, and KRW 0.64 trillion in 2019 on the basis of 
government budget expenditure.  
 
Question:  
28. Could the Republic of Korea list the renewable energy source that receives subsidies?  
 
ANSWER : 
There is no subsidy for a specific renewable energy source.  
 
Page 92  
3.129.  According to Korea's latest WTO notifications of April 2021, covering the period 2016 -18, the 
current total aggregate measure of support (AMS) rose from KRW  748.38 billion in 2016 to 
KRW 1,489.78 billion in 2017 and dropped to KRW  2.91 billion in 2018 (re maining below its final 
bound level of KRW  1.49trillion), in line with WTO provisions and scheduled commitments. Soybeans  
remained the only item subject to MPS; this support rose from KRW  7.26billion (2016) to 
KRW 33.27  billion (2017) and dropped to KRW  8.82 billion (2018). Total domestic agricultural 
support (including Green Box, development programmes subject to special and differential (S&D) 
treatment, and de minimis support not subject to reduction commitments), rose from 
KRW 8.6 trillion (KRW1.37 trill ion excluding Green Box and S&D assistance) in 2016 to 
KRW 9.1 trillion (about KRW  1.4 trillion in 2018 excluding Green Box and S&D assistance) 
(TableA3.7). In 2018, de minimis support included MPS (soybeans), other product -specific 
assistance (e.g. rice d eficiency payment of KRW  539.3 billion, milk deficiency payment of 
KRW15.0billion, and loan interest subsidies for numerous items), and non -product -specific support 
of KRW  789.4  billion (mainly crop insurance, direct payments, and self -help fund raising). In 2018, 
Green Box support remained over five times (virtually the same as in 2016) the size of Korea's total 
product -and non -product -specific AMS.  
 
Question:  
29. Appreciate if the Republic of Korea could explain on the details of its domestic subsidy 
scheme for soybean.  
 
[ANSWER]  
Korea has a domestic support program for soybean in place to ensure a stable food supply and 
proper level of self -sufficiency rate.  
The government makes contracts with farmers in advance, taking into account the production cost 
etc., and purchases from farmers during the harvest season. Considering the domestic market 
demand, it supplies to businesses with actual demand for processing food such as tofu, paste.  
 
Page 94  
3.3.2  Standards and other technical requirements  
3.3.2.1 Standards, testing, and certification  
3.134. Standard development remains government -led and a significant element of Korea's 
industrial policy. Under the inter -ministerial fourth National Standards Plan (2016 -20), key policy 
goals included the development  of standards for new growth engine activities for improving people's 
daily life and the eradication of redundant certification systems. The Plan aimed to advance the 
national standards system, strengthen the standard technology infrastructure, promote act ive 
participation in international standardization activities, and assist the private sector in increasing its 
capacity to develop standards.172 A fifth National Standards Plan will be established in the second 
quarter of 2021. During the review period, KA TS implemented standardization strategies required 
for competitiveness in emerging industries and adaption to technological changes of the Fourth 
Industrial Revolution; efforts for KS to be reflected in the fields of the Fourth Industrial Revolution, 
such as a smart factory, a smart city, the Internet of Things (IoT), and big data, were undertaken.  
 
Question:  
30. What is the significant achievement for the Fourth National Standards Plan (2021 -2025)?  
 WT/TPR/M/414/Add.1  
 
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  ANSWER : 
The results of the 4th National Standards Plan are as follows.  
1. Development of standards for new smart industries such as smart manufacturing, IoT and 
Bio-healthcare.  
2. Support for corporate growth through expansion of company -friendly standards certification base.  
3. Standa rdization for a pleasant and safe public life  
4. Private sector to respond to technological change establishment of the basis for activation the 
leading standardization system.  
 
31. What are the main goals for the Fifth National Standards Plan and significant changes 
from the previous plan?  
 
ANSWER : 
The difference between the 4th National Standards Plan and the 5th National Standards Plan is to 
strengthen international standard proposal activities centered on future core technologies such as 
security system technologies, the establishment of a technical regulation response system, and the 
development of service stan dards such as digital education, the linkage of developed technologies 
and standards.  
Page 94  
3.3.2.2 Voluntary, compulsory, national, and aligned standards  
3.138 . As of 2016, about 15% of all KSs  (3,072) were contained in 5,470 technical regulations 
issued by 19 government ministries. No recent data were available from the authorities.  
 
Question:  
32. Please provide further information on technical specifications or mandatory standards 
on formaldehyd e emission on wood -based panel products.  
 
ANSWER : 
In accordance with 'Annex 5 of the 'ELECTRICAL APPLIANCES AND CONSUMER PRODUCTS SAFETY 
CONTROL ACT', the surface -processed wood material(normal plywood, specially processed plywood, 
fiberboard, particle boa rd) used in furniture for homes, offices, schools, etc., should comply with the 
safety requirements for hazardoussubstances specified in the safety standards. (See Table 1.Safety 
Requirements for Hazardous Substances from Wood or Table 2.Safety Requirement s for Hazardous  
Substances from Wood). Safety standards are available on the website(www.kats.go.kr) of the 
Korean Agency for Technology and Standards. It is also related to the 'ACT ON THE SUSTAINABLE 
USE OF TIMBERS' of Korea Forest Service.  
 
Page 95  
3.140.In 2020, Korea maintained bilateral MOUs with 76 agencies (42 in 2016) from 41 countries 
(31 in 2016) for mutual cooperation in global standardization activities, exchange of technical 
information related to standards and conformity assessment, organizat ion of standardization 
meetings, operation of joint education programmes, and exchange of experts.177  
 
Question:  
33. Why are the number of bilateral MoUs  maintained since 2016? Any plan to add to the 
numbers?  
 
ANSWER : 
The number of bilateral MoUsis slightly  different  from year to year. Korea has been sign ing MoU with 
major standardization agencies, and renewal work has been  ongoing to update the field of 
cooperation  as well . Despite  of COVID -19, three MoUs will be signed in 2021, but the total number 
of MoUs will not increase  this year because all of three are  renewal signings, not new signings . If 
specific effects of mutual cooperation would  be expected, Korea is ready to sign a MoU with a new 
agency . 
 
34. What are the significant benefits of these bilateral MoUs to standardisation and 
conformity assessment in Republic of Korea?  
 
ANSWER : 
One of the most important cooperations  in the field of standardization and conformity assessment  
is information sharing. If any information in the field of standardization and conformity assessment  WT/TPR/M/414/Add.1  
 
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  is needed, Korea will contact the relevant agency based on MoU and receive support. Furthermore,  
it is also an important benefit that can serve as the basis for cooperation between experts.  
 
Page 119  
3.3.6.1 Legislation  
3.216.  During the review period, changes were made to the government procurement legislation. 
The 1995 Act on Contracts to Which the State Is a Party (last amended by Act No. 16578, 
26 November 2019) covers international and domestic procurement of goods and services, including 
construction, by all central government agencies. Amendments that entered into force on 20 March 
2018 involved  the method of contracting, agreement on dispute resolution methods, state contract 
disputes conciliation, competition among tenders eligible for preferential purchase, and dispute 
resolution through arbitration or conciliation by the State Contract Disput es Conciliation Committee. 
Amendments enforced from 27 May 2020 related to, inter alia, principles of contracting, preparation 
of estimated price, determination of successful tenderer in competitive tendering procedure, and 
adjustment of contract amount ac cording to price fluctuation. The latest amendment to the 
Government Procurement Act, passed on 17 January 2017 and enforced from 18 July 2017, was 
made for giving the PPS clear grounds for investigation into unfair procurement practices for demand 
commodi ties. Although purchase of agricultural, fisheries, and livestock products is not subject to 
international tendering under the GPA, their procurement is covered by the Act on Contracts to 
Which the State Is a Party . 
 
Question :  
35. Appreciate if the Republic of Korea could explain on the implementation of the 
adjustment of contract amount according to price fluctuation.  
 
ANSWER : 
Korea is implementing the adjustment of contract amount according to price fluctuation as follows:  
 
Article 64 (Adjustment of Contract Price According to Price Fluctuation)  In any of the 
following cases, the head or a contracting officer of a central government agency shall adjust the 
amount of a contract (referring to the amount of the entire construction p roject or the total 
production, etc., additionally stated in the initial contract: hereafter the same shall apply in this 
Chapter) after 90 days from the date on which a contract that imposes a burden on the National 
Treasury (referring to the initial cont ract in cases of a contract for a long -term continuing project 
or the long -term continuing manufacture, etc.) is made under Article 19 of the Act, as prescribed 
by Ordinance of the Ministry of Strategy and Finance. In such cases, the contract price shall n ot 
be adjusted again within 90 days from the reference date of adjustment (referring to the date on 
which the cause of adjustment arises; hereafter the same shall apply in this Article). <Amended 
by Presidential Decree No. 15661, 24 Feb. 1998; Presidential  Decree No. 16548, 9 Sep 1999; 
Presidential Decree No. 18359, 6 Apr. 2004; Presidential Decree No.  19035, 8 Sep  2005; 
Presidential Decree No. 19782, 29 Dec 2006; Presidential Decree No. 20720, 29 Feb  2008>  
1. Where the adjustment rate of goods, computed in accordance with a formula prescribed by 
Ordinance of the Ministry of Strategy and Finance on the tender date as reference date (referring 
to the date of execution of a contract in cases of a negotiated contract or the immediately 
preceding reference dat e of adjustment in cases of adjustment of a contract price for the second 
and subsequent contracts; hereafter the same shall apply in this paragraph and paragraph (6)), 
increases or decreases by not less than 3/100;  
2. Where the index adjustment rate, comp uted by the formula prescribed by Ordinance of the 
Ministry of Strategy and Finance on the tender date as its reference date, increases or decreases 
by not less than 3/100.  
(2) When the head or a contracting officer of a central government agency adjusts a  contract 
price pursuant to paragraph (1), he/she shall apply one of the methods specified in paragraph (1) 
to an identical contract and shall clearly stipulate in the written contract that the contract price 
shall be adjusted by the method specified in pa ragraph (1) 1, unless the counter -party to the 
contract wants to apply the method specified in paragraph (1) 2. <Amended by Presidential 
Decree No. 16548, 9 Sep 1999; Presidential Decree No. 19035, 8 Sep 2005>  
(3) If an advance payment has been made to the counter -party to a contract under the provisions 
of Article 40 of the Enforcement Decree of the Management of the National Funds Act, the amount 
calculated by the formula prescribed by Ordinance of the Ministr y of Strategy and Finance shall 
be deducted from the increased amount computed in accordance with paragraph (1). <Amended 
by Presidential Decree No. 16548, 9 Sep 1999; Presidential Decree No. 17824,  30 Dec. 2002; 
Presidential Decree No. 19035, 8 Sep 2005; Presidential Decree No. 20720, 29 Feb 2008>  WT/TPR/M/414/Add.1  
 
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  (4) If it is impracticable to procure goods by applying paragraph (1) when the head or a 
contracting officer of a central government agency purchases goods, the highest selling price of 
which shall be publicly no tified in accordance with relevant statutes, or in any other case, he/she 
may prescribe provisions different from paragraph (1) regarding the adjustment of a contract 
price at the time of execution of the contract. <Newly Inserted by Presidential Decree No . 16548, 
9 Sep 1999>  
(5) If it is deemed impracticable to perform a contract due to a natural disaster or rapid rise of 
raw material prices in applying paragraph (1), unless the contract price is adjusted within the 
period during which the adjustment is re stricted, the contract price may be adjusted within 90 
days from the date of execution of the contract or from the immediately preceding reference date 
of adjustment, notwithstanding the aforementioned paragraph. <Newly Inserted by Presidential 
Decree No. 18359, 6 Apr 2004; Presidential Decree No. 19035, 8 Sep 2005>  
(6) Notwithstanding paragraph (1), the head or a contracting officer of a central government 
agency shall adjust the contract price only for the material concerned, if the increase or decrease 
rate of the price for the material, computed on the tender date as its reference date due to the 
fluctuation of the price for the material in particular specifications (applicable only to a material, 
the cost of which exceeds 1/100 of the aggregate of mater ial cost, labor cost, and expenses that 
constitute the project cost) for the contract for a construction project is not less than 15/100. 
<Amended by Presidential Decree No. 19806, 29 Dec 2006; Presidential Decree No. 22282, 
21 Jul 2010>  
(7) The head or a contracting officer of a central government agency shall adjust a contract price, 
when the requirements for the adjustment of the contract price under paragraph (1) are met due 
to foreign exchange fluctuation. <Newly Inserted by Presidential Decree No. 212 02, 
31 Dec. 2008>  
(8) Notwithstanding paragraph (1), the head of each central government agency or a contracting 
officer shall adjust the contract price for simple labor services prescribed by Ordinance of the 
Ministry of Strategy and Finance, only with re spect to labor cost for which unit wages have 
changed after the budget price is made. <Newly Inserted by Presidential Decree No. 28690, 
6 Mar 2018>  
 
36. How do you manage the contract after the adjustment of price being done?  
 
ANSWER : 
Rewrite the relevant documents and notify the guarantee institution in writing.  
 
Page 121  
3.3.6 Government procurement  
3.3.6.3 Public Procurement Service (PPS)  
3.222. The PPS's main functions remain supplying goods and services for government use, 
contra cting and managing public works, stockpiling 15 types of essential raw and construction 
materials to secure price stability and supplies, coordinating and auditing government goods and 
real estate property management, and operating the Korea Online e -Procu rement System 
(KONEPS).  
 
Question:  
37. Since the PPS is used for Government Procurement and the KONEPS is part of that larger 
system, appreciate if Republic of Korea can clarify the following points:  
i. What roles do the different external systems linked to KONEPS have within the PPS?  
ii. Clarify how KONEPS has been exported to seven countries, including Viet Nam and 
Costa Rica?  
 
ANSWER : 
The external systems linked to KONEPS have contributed to ensuring trans parent and swift public 
procurement by allowing documents needed for registration, bidding, conclusion of contracts, 
reception of deposits, payment, etc. to be replaced by the linked electronic information.   
 
In most cases, KONEPS has been exported in the form of grant out of *KOICA's ODA fund.  
 
*KOICA: Korea International Cooperation Agency(KOICA)  
 WT/TPR/M/414/Add.1  
 
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  Page 122  
3.3.6 Government procurement  
3.3.6.3 Public Procurement Service (PPS)  
3.223.  All bidders wishing to participate in PPS -conducted tenders must register with the PPS. For 
construction works below KRW10 billion, it uses an eligibility screening system. "Abnormally low or 
dumping" tenders are rejected.305 The best value award method i s used for contracts exceeding 
KRW 10 billion after conducting a pre -qualification evaluation followed by a comprehensive 
evaluation on the bid price, performance, and social responsibility to determine the successful 
bidder. A prequalification system (PQ System) is also used to determine eligible bidders. While the 
procuring entities may decide to use the PQ system, its utilization is compulsory for construction 
projects subject to the best value award method. Separate prequalification lists are maintained  for 
each construction project, based on objective criteria.306 Bid results, including tenders, 
prequalification evaluation, and contract awards are released on the KONEPS site 
(http://www.g2b.go.kr). As indicated by the authorities at the time of the prev ious Review, there 
are no special prequalification requirements or restrictions imposed on foreign suppliers.  
 
Question:  
38. Appreciate if the Republic of Korea  could provide further explanation on how social 
responsibility is a part of best value award metho d? 
ANSWER : 
Social responsibility criteria taken into account for the evaluation involve construction 
safety(including evaluation of the number of violations in reports of industrial accidents), fair 
trade(including evaluation of compliance with fair trade laws), contribution to the local 
economy(evaluation of the share of participation by local suppliers in the works project site) and 
employment of construction workers(including evaluation of compliance with the Labor Standard Act)  
 
39. How do you evaluate soci al responsibility criteria during bidding process?  
 
ANSWER : 
The social responsibility performance is reflected in the form of additional points of up to 2 in the 
construction capability evaluation.  
 
Page 124  
3.3.6 Government procurement  
3.3.6.3 Public Procurement Service (PPS)  
3.231.  Reportedly, centralized procurement has proven to be beneficial in Korea in making public 
procurement more transparent and efficient by establishing an E -Procurement System, mainly led 
by the PPS, and allowing variou s procuring entities to use it. However, it seems that there are 
concerns about the purchase price via the PPS and the level of commission paid by procuring entities 
to the PPS. According to a 2015 OECD assessment of the PPS procurement system, KONEPS 
contributes substantially to the efficiency, effectiveness, and integrity of public procurement in 
Korea. According to the 2019 OECD Government at a Glance report, KONEPS provides the highest 
connectivity to external databases, as it is interconnected to over 200. So far, KONEPS has been 
exported to seven countries, including Viet Nam and Costa Rica. Between 2021 and 2023, the PPS 
would have to rebuild the current KONEPS into Inno -KONEPS based on digital technologies 
(e.g. cloud, big data, and AI) to reduce ove rlapped operation and waste in public funds, as well as 
to enhance public access to procurement information by integrating respective procurement systems 
of local governments into Inno -KONEPS.  
 
Question:  
40. How does the Republic of Korea  ensure that suppliers and bidders are not manipulative 
during the tendering process?  
 
ANSWER : 
PPS' bidding requires an applicant wishing to participate for an e -signature involving an accredited 
certificate, which prevents any manipulative attempts in the  process   
 
41. Appreciate if the Republic of Korea  could clarify on the revolving fund and level of 
commission in order to stabilise procurement price.  
 WT/TPR/M/414/Add.1  
 
- 153 - 
 
  ANSWER : 
PPS provides procurement services on goods, services and construction works. In return, the 
procuri ng agency charges commissions. The commission rate is 0.54% against the MAS contract 
price, which is relatively lower than 0.75% of the  U.S. counterpart.  
The commissions go to the revolving fund which are used to make early payments for suppliers 
(then the payments are collected from public user entities) in support of liquidity for those SMEs. 
And they are also spent for stockpile projects to ensure price stability     
 
Page 157  
4.3.2.3.2 Domestic support  
4.91.  The Government allocated a significan t part of its budget to implement the Green New Deal 
(Section 4.3.2 and 3.3.1.2). In addition, subsidies are provided to reduce emissions for old 
diesel vehicles, and to support the purchase of natural gas, electric, and hydrogen fuel -cell 
vehicles . Prices  of electricity are monitored or controlled (Sections 3.3.1.2 and 3.3.4.2).  
 
Question:  
42. The Republic of Korea is increasing its biofuels blending mandate to 5% (B5) by 2030, 
from 3% (B3). The B3 mandate has been in place since 2018 and will increase to 3.5%  
from July 2021 until 2023. It will then be set at 4% during 2024 -26 and 4.5% over 
2021-29, before rising to 5% from 2030. The use of biofuels or biofuels blending has 
proven to reduce the consumption of fossil fuels and thus reduce carbon dioxide 
emission s align with the implementation of the Green New Deal. Therefore, are there 
any plan subsidies provided to support the purchase of biodiesel for renewable fuel in 
the future ? 
 
ANSWER : 
Currently, the government does not provide subsidies to support the purchase of biodiesel. Nor is 
there a plan to introduce ones in regard to increasing biodiesel blending mandate to 5 % by 2030 
as scheduled.  
 
4.3.2.4.2 Natural gas  
4.98.  Natural gas accounted for 17.7% of TPES , and 25.6% of electricity generation in 2019. As 
domestic production covers only 0.5% of total gas consumption, Korea imports more than 99% of 
its demand for gas. Korea does not have international gas interconnections, thus all gas is imported 
as LNG.  Domestic production comes from two offshore gas fields. The field operator, KNOC, plans 
to operate the fields until 2022, when the reserves are to be depleted.  
 
Question:  
43. Is there any plan to replace the use of LPG with biogas/bio -CNG?  
 
[ANSWER]  
The Korean government is not involved in the LPG business sector, which is strictly private. However, 
when it comes to LNG, the government is considering mixing hydrogen with natural gas in the 
pipelines in order to reduce carbon emissions over the long te rm. A technical review will be conducted 
preemptively to look into (1)potential risks posed and (2)demage to the integrity of pipelines when 
hydrogen is injected into the pipelines and (3) impacts of degraded natural gas on customers.  
 
Page 160  
4.3.2.6 New  and renewable energy  
4.121.  Promoting energy from renewable sources is the core of Korea's energy target. Korea is 
committed to increasing the share of renewables in power generation to 20% by 2030 and to 
30%-35% by 2040. Currently, the share of new and r enewable energy in TPES (2.4% in 2019) is 
much lower than the IEA median (11%), and the share of renewable energy in power generation 
(4.9%) is also lower than the IEA median (27%).  
 
4.122.  In 2019, Korea had 19,651 MW of new and renewable energy -generatio n capacity, up from 
19,027 MW in 2018. Solar photovoltaic (PV) accounted for 84.6% of total new and renewable power 
capacity, followed by biomass (6.5%) and wind (4.3%).  
4.123 . Pursuant to the Act on Development, Use and Diffusion of New and Renewable Ene rgy 
(Renewable Energy Act), MOTIE formulates basic national plans for the promotion of new and 
renewable energy every five years. MOTIE also oversees the regulations for renewable electricity 
generation, including the allocation of permits. The KEA and the  Korea New and Renewable Energy WT/TPR/M/414/Add.1  
 
- 154 - 
 
  Center under it promote new and renewable energy by issuing renewable energy certificates (RECs) 
that serve as certified proof of renewable energy power generation.  
 
Question:  
44. What projects have been implemented in the Republic of Korea for the promotion of biomass -
derived energy?  
 
[ANSWER]  
Korea supports the deployment of biomass through the RPS system, which obliges electricity 
suppliers to produce a certain percentage of renewable energy, including bioenergy. Also, the 
government supports biomass under the RFS system, which mandates the us e of bioenergy for a 
portion of transport fuel.  
 
45. What are the challenges and problems in utilizing the biomass potential facing by the 
manufacturers in the Republic of Korea?  
 
[ANSWER]  
Systematic collection and transportation measures should be develop ed for the use of various types 
of biomass.  
 
46. Appreciate it if the Republic of Korea could give details on the type of biomass used to generate 
renewable energy.  
 
[ANSWER]  
It includes woods, biological waste, biogas etc.  
 
47. Are there any incentives or support to the industry players involved in producing renewable 
energy, especially from biomass?  
 
[ANSWER]  
Businesses can obtain 'renewable energy certificates' that can be traded when generating renewable 
energy power through biomass.  
 
Page 164  
4.4.2  Automotive  
4.141.  To purchase, own, and use automobiles, various taxes are imposed (Table 4.11). The 
Government has been facilitating the development of eco -friendly cars by providing tax incentives.  
 
Question:  
48. The Republic of Kore a is increasing its biofuels blending mandate to 5% (B5) by 2030, 
from 3% (B3). The B3 mandate has been in place since 2018 and will increase to 3.5% 
from July  2021 until 2023. It will then be set at 4% during 2024 -26 and 4.5% over 
2021-29, before rising t o 5% from 2030. The use of biofuels or biofuels blending has 
proven to reduce the consumption of fossil fuels and thus reduce carbon dioxide 
emissions align with the implementation of the Green New Deal. Therefore, is there any 
plan for providing tax incen tives on vehicles that use biodiesel for renewable fuel in the 
future?  
 
ANSWER : 
Korea is currently promoting the expansion of biofuel use, focusing on renewable Fuel Standards.  
  WT/TPR/M/414/Add.1  
 
- 155 - 
 
  MEXICO  
PREGUNTAS EN RELACIÓN AL INFORME DE COREA Documento WT/TPR/G/414 , 
Preguntas en materia de Política de Competencia  
 
Página 5 (párrafo 3.1)  
3.1 Corea ha hecho grandes esfuerzos por reorientar sus políticas para lograr una "economía 
centrada en las personas" a fin de resolver los problemas del lento crecimiento y la creciente 
desigualdad y abrir una senda hacia el crecimiento sostenible. El Gobierno coreano está realizando 
esfuerzos decididos por hacer realidad a través de sus políticas tres valores fundamentales: 
innovación, inclusión y equidad.  
 
Pregunta:  
Con relación a los elementos centrales de la política económica de Corea, ¿cómo la iniciativa " New 
Deal de Corea", en particular la estrategia " New Deal  Digital", ha contribuido para reducir la 
desigualdad y ayudado, si es el caso, a resolver los problemas de lento crecimiento?  
 
Question 1.  With regard to the core elements of Korea's economic policy, how has the "Korea New 
Deal" initiative, in particular the "New Deal Digital" strategy, contributed  to reducing inequality and 
helped, if any, to  solve slow growing problems?  
 
[Answer]  
First, The "Digital New Deal" initiative operated over 1,000 digital learning centers to provide digital 
capacity -building education to the vulnerable groups, and contrib uted to bridge the digital divide 
through digital accessibility policies, such as the rural communication networks advancement policy 
and the public Wi -Fi establishment policy.  
In addition, over 170,000 businesses and  institutions, mainly SMEs and start -ups, participated in 
government -led key  Digital New Deal projects(2020 -2021), which contributed to revitalize business 
activities. Through the 'Data Dam' project, various types of data in different fields including  finance, 
transportation, culture, and healt hcare are being collected, shared, and used. This  led the domestic 
data market to grow by 14.3% year -of-year, promoting innovation for the overall economy and 
industry.  
 
Página 6 (párrafo 3.4)  
 
3.4 La pandemia de COVID -19 ha provocado un fuerte incremento de la demanda de servicios en 
línea y sin contacto físico, acelerando la transición hacia una economía digital. En consonancia con 
esta tendencia, el Gobierno coreano ha aprobado un New Deal Digital para promover la innovación 
digital en toda la economía y  desarrollar la infraestructura necesaria para los sectores en línea y 
digitales. El objetivo del Gobierno coreano es crear un ecosistema sólido para los datos, las redes y 
la inteligencia artificial (conocidos como "sectores D.N.A.", por su acrónimo en in glés), apoyando el 
uso y la convergencia entre los datos, la tecnología 5G y la inteligencia artificial en todas las ramas 
de producción. También está haciendo todo lo posible por crear infraestructuras que faciliten la 
prestación de servicios médicos inte ligentes basados en la tecnología 5G y en la Internet de las 
Cosas -en el marco de un esfuerzo por promover los servicios en línea en esferas estrechamente 
relacionadas con la vida de las personas - y por alentar a los pequeños empresarios a aprovechar al 
máximo las ventajas que ofrecen las tecnologías inteligentes  
 
Pregunta:  
Considerando que la creación de la estrategia "New Deal Digital" fue en julio de 2020, hasta el 
momento, ¿hay algún avance en particular de dicha estrategia para las 4 áreas mencionadas en el 
gráfico 3.1.?  
 
Question 2.  Considering that the creation of the  "New Deal Digital" strategy was in July 2020, so 
far, is there any progress in particular of said strategy for the 4 areas mentioned in figure 3.1.?  
 
[Answer]  
There are largely four major achievements from the Digital New Deal strategy announced in 
July 2020: 
1) Strengthening the D.N.A. ecosystem: As the Data dam project facilitated collecting, sharing and 
use of various types of data in different fields, the domestic data market grew 14.3% year -on-year, 
and the participation of existing software and syste m integration companies in the data and artificial WT/TPR/M/414/Add.1  
 
- 156 - 
 
  intelligence business started to be activated in earnest.  
 
2) Digitalize educational infrastructure: Support was provided to create a blended learning 
environment that combines online and offline learning.  As part of this effort, the government 
supported installing high -performance Wi -Fi in elementary, middle, and high school classrooms 
across the country and distributed tablet PCs. Efforts were also put in to secure quality online 
educational content, name ly the K -MOOC service.  
 
3) Fostering contactless industries: Digital transformation support led to 8,000 factories and 
4,000  small businesses adopting smart technologies.  
 
4) SOC digitization: Enhanced the safety and convenience for people's everyday environment by 
distributing smart city platforms to a number of local governments and by establishing a flood 
management system and a disaster response early warning system.  
 
Página 14 (párrafo 4.33)  
 
4.33 El Gobierno de Corea ha actualizado sus s ervicios de comercio electrónico para favorecer la 
transición digital en el comercio. En particular, ha mejorado el sistema uTradeHub a fin de reducir 
sustancialmente los costos del comercio y hacer que las transacciones comerciales sean más 
inteligentes.  
 
Pregunta:  
 
¿Hay alguna normativa nacional que regule el uso de inteligencia artificial y la protección de datos 
obtenidos a través del sistema uTradeHub ?  
 
Question 3.  Are there any national regulations that regulate the use of artificial intelligence an d the 
protection of data obtained through the uTradeHub system?  
 
[Answer]  
uTradeHub system operation is guided by the Electronic Trade Facilitation Act, and Article 21 
(Disclosure of Electronic Transaction Documents and Transaction Information) of the Act articulates 
when the data can be disclosed. AI can't access confidential information such as sensitive business 
information of companies that are not permitted by the ACT.  
 
PREGUNTAS EN RELACIÓN CON EL INFORME DE LA SECRETARÍA Documento WT/TPR/S/414 , 
Pregu ntas en materia de Política de Competencia, Buenas Prácticas Regulatorias y 
Medidas Sanitarias y Fitosanitarias  
 
Página 27 (párrafo 1.16)  
 
1.16. Durante el período examinado, Corea elaboró una visión ("Elevar la calidad de vida de la 
población mediante la consolidación de una economía de mercado justa") con objeto de promover 
la innovación y la competencia, e introdujo varios cambios legislativos para responder a la evolución 
del panorama económico (sección 3.3.4.1.1). El grado de concentración del mercado y de la industria 
sigue siendo relativamente elevado, y los grandes conglomerados de empresas y del Estado siguen 
siendo objeto de vigilancia. Para mejorar la transparencia y la solidez de la estructura de la propiedad 
y la gestión de las empre sas, se mantiene la prohibición de las nuevas participaciones cruzadas (o 
circulares) en el capital entre filiales de grandes grupos empresariales (sección 1.2.4.4); no 
obstante, tal como observó el FMI en 2019, el sector manufacturero sigue estando muy co ncentrado, 
sobre todo en comparación con sus homólogos, y la intensificación de los vínculos verticales y 
comerciales ha acentuado la exposición de la economía a las perturbaciones internas y externas 
(sección 1.1).45 Por este motivo, una de las prioridade s de la política de competencia en Corea ha 
sido promover la competencia en determinados sectores y prevenir la transferencia de posiciones 
dominantes entre un sector y otro mediante el apoyo desleal a las filiales y el abuso de una posición 
negociadora su perior en las transacciones regresivas y progresivas.  
 
Pregunta:  
¿Con relación a la visión de Corea de promover la innovación y competencia, ¿cuáles fueron los 
sectores prioritarios o identificados para promover la competencia?  WT/TPR/M/414/Add.1  
 
- 157 - 
 
  Question 4.  In relation to Korea's vision of promoting innovation and competition, what were  the 
priority sectors or sectors identified to promote competition?  
 
[Answer]  
The KFTC prioritizes law enforcement and system improvement to create a market environment that 
promotes competition in new industries, new technologies, and areas closely relate d to people's lives 
such as health  and safety.  
 
Página 40 (párrafo 2.15)  
2.15. La reglamentación del mercado de productos de Corea es una de las más rigurosas de la OCDE. 
El grado de participación del Estado en las operaciones empresariales, los obstáculos  en los sectores 
de servicios y servicios de red y los obstáculos al comercio y la inversión es uno de los más altos de 
los países de la OCDE.8 En este contexto, Corea mantiene un compromiso de alto nivel con la 
reforma de la reglamentación. Sus reuniones ministeriales bianuales se centran en reducir la carga 
reglamentaria y crear un entorno más propicio a las actividades empresariales. La Oficina de 
Reforma Reglamentaria (RRO), dependiente de la Oficina del Primer Ministro, ejerce funciones de 
vigilancia y  dirección. El Comité de Reforma Reglamentaria (RRC), copresidido por el Primer Ministro, 
examina todas las propuestas de reglamentación presentadas por los órganos de la administración 
central.  
 
Pregunta:  
¿Cuáles son las funciones de vigilancia y direcció n que ejerce la Oficina de Reforma 
Reglamentaria (RRO)?, ¿cuáles son y en qué consisten los procedimientos que se llevan a 
cabo en dicha oficina?  
¿En qué consiste el procedimiento que usa el Comité de Reforma Reglamentaria (RRC) para 
examinar las propuesta s de reglamentación? De ser el caso, ¿cuáles son y en qué consisten 
los criterios que se usan en estas revisiones?  
 
Question 5.  What are the oversight and management functions exercised by the Regulatory Reform 
Office (RRO)? What are and what are the proc edures carried out in said office?  
 
[Answer]  
The RRC's executive office is run by the RRO (Regulatory Reform Office) under the Office for 
Government Policy Coordination. Under the Prime minister's supervision, the regulatory reform office 
plays a mediating  role among central administrative agencies related to regulatory issues and a 
supporting role for the RRC that acts as a central over sight body for regulatory reform.  
When conflicts of interests among central administrative agencies arise in regards to r egulatory 
direction (whether to relax or reinforce), and content (whether to focus on industrial rearing or public 
safety & environment), degree (whether to make the regulation more restrictive or less restrictive), 
the RRO takes the role of mediating and resolving the conflicts.  
 
Question 6.  What is the procedure used by the Regulatory Reform Committee (RRC) to review 
regulatory proposals? If so, what are and what are the criteria used in these reviews?  
 
[Answer]  
The Regulatory Reform Committee (RRC) take s on the role of assessing both the quality and 
legitimacy of proposal, with greater emphasis on evaluating its validity when establishing a new 
regulation or reinforcing existing regulations. The RRC deliberates on the quality of the impact 
assessment as well as its merits, which emphasizes on the  necessity of government intervention, 
review and selection of alternatives, considering cost -benefit analysis and implementations 
feasibility. Reviews of Regulations for Introduction or Reinforcement are submitte d to the RRC the 
preliminary review(online) which has mandated to determine whether the regulation is significant, 
followed by the RRC for a general review (meeting twice a month). If the regulation is determined 
to be insignificant during the preliminary review, the review will be concluded (the regulation is 
considered to have been reviewed by the committee). The RRC is the final decision - making and 
central oversight body reform in Korea. The RRC is mandated to review significant regulations by 
consultat ions not only from the executive, but also from different groups such as stakeholders, 
academic groups.  
 WT/TPR/M/414/Add.1  
 
- 158 - 
 
  párrafo 3.125, pág.102  
En relación al Nuevo Acuerdo Digital. ¿Este Acuerdo solo está enfocado a nivel nacional, o incluye 
de alguna manera negociaciones sobre acuerdos bilaterales o regionales para mejorar la innovación 
y la infraestructura digital?  
 
Question 7.  
In relation to the New Digital Agreement. Is this Agreement only focused on the national level, or 
does it include in some way negot iations on bilateral or regional agreements to improve innovation 
and digital infrastructure?  
 
[Answer]  
Korea has implemented the 'Digital New Deal Initiative', which includes innovation projects based 
on "Data, Network, and Artificial intelligence", in or der to overcome the COVID -19 economic crisis 
and promote digital transformation in the overall economy and society. This is to strengthen Korea's 
digital capabilities by integrating ICT into all industries. Although there is currently no Digital New 
Deal-related content included in bilateral and regional agreements, it is expected that this could be 
reflected, when there is a demand for ICT -related international cooperation.  
 
Página 119 (párrafo 3.173)  
3.173. … Se toman medidas sanitarias y fitosanitarias pr incipalmente para prevenir enfermedades 
de origen extranjero o que son desconocidas en Corea y que están sujetas a medidas de control 
estrictas a nivel nacional. Las cuarentenas e inspecciones veterinarias y fitosanitarias siguen siendo 
competencia del Org anismo de Cuarentenas Veterinarias y Fitosanitarias (QIA), dependiente del 
MAFRA, y de las pesquerías se ocupa el Servicio Nacional de Gestión de la Calidad de los Productos 
Pesqueros, dependiente del MOF.  
 
Pregunta:  
8. ¿Cómo lleva a cabo el MAFRA/QIA la atención a otros países que solicitan conocer los requisitos 
sanitarios o fitosanitarios para exportar más de un producto a Corea? ¿se puede atender más de 
una solicitud por país al mismo tiempo, de no ser el caso, existe alguna legislación que indique dic ho 
procedimiento?  
 
Question 8  
How does MAFRA / QIA serve other countries that request to know the sanitary or phytosanitary 
requirements to export more than one product to Korea? Can more than one request per country be 
handled at the same time, if not, is  there any legislation that indicates this procedure?  
 
[Answer]  
When there is a request for market access of agricultural products, Korea determines the import 
permit in accordance with the relevant domestic law.  
If one country applies for the market access for several items, the import approval procedure is 
carried o ut in an order of priority set by the exporting country.  
 
Página 121 (párrafo 3.182)  
 
3.182 En 2020, la KFTC  examinó 815 proyectos de ley (frente a 302 en 2018) que contenían normas 
nuevas o mejoradas, y determinó que 18 de ellos (frente a 15 en 2018) eran anticompetitivos. De 
esos 18 proyectos de ley, se revisaron 14 para eliminar o mejorar las normas nuevas o mejoradas 
que contenían (se aceptó el 77,8% de las opiniones formuladas)  
 
Preguntas:  
 
¿Las opiniones que emite la KFTC sobre proyectos normativos son vinculantes?  
¿Existen plazos para acatar las recomendaciones emitidas por la KFTC u obligación de informa r sobre 
las razones por las que no se aplican dichas recomendaciones?  
 
Question 9.  Are the opinions of the KFTC on draft regulations binding?  
 
[Answer]  
If the government intends to establish or strengthen regulations, it must undergo a regulatory review 
by the Regulatory Reform Committee. The KFTC conducts a "competitive impact assessment" before 
the regulatory review and delivers the results to the competent ministries. The competent ministries WT/TPR/M/414/Add.1  
 
- 159 - 
 
  may revise or withdraw the regulatory proposal by reflecting t he KFTC's opinion, or request a 
regulatory review without reflecting the KFTC's opinion. As a government member of the Regulatory 
Reform Committee, the KFTC can participate in the regulatory review and express opinions, and the 
KFTC's opinions are accepted  quite convincingly during the regulatory review process. If the 
regulatory review finds it necessary to reflect the KFTC's opinion, the Regulatory Reform Committee 
may recommend the competent ministries to withdraw or improve the regulation, and the 
recom mended ministries are obligated to comply with it unless there is a special reason. (Article 14 
of the Framework Act on Administrative Regulations)  
 
Question 10.  Are there deadlines for complying with the recommendations issued by the KFTC or 
obligation to  report on the reasons why such recommendations are not applied?  
 
[Answer]  
The competent ministries may revise the regulatory proposal by reflecting the KFTC's opinion on the 
competition impact assessment until they request a regulatory review from the Reg ulatory Reform 
Committee. Even if it does not reflect the KFTC's opinion, it is not obligated to report the reason. 
However, in the case of presenting an opinion on the competition impact assessment, it generally 
goes through a consultation process between  the KFTC and the relevant ministries During the 
consultation process, the positions of the relevant ministries, including reasons for non -reflection, 
will be delivered to the KFTC, and if consultation cannot  go ahead, whether to reflect the KFTC's 
opinion s will be finally decided during the regulatory review stage.  
 
Página 124 (párrafo 3.192)  
3.192 En 2019, la KFTC realizó un análisis del mercado referente a la distribución de productos 
agropecuarios y el sector de los medios de radiodifusión para examinar  la situación actual del 
mercado y las instituciones pertinentes y concebir medidas que fomentaran la competencia.242 El 
análisis del mercado oligopolístico al por mayor de productos agropecuarios revela que es necesario 
promover la competencia en el ámbit o de la distribución de productos agropecuarios y mejorar la 
reglamentación para los expedidores y los consumidores. La situación actual del mercado coreano 
demuestra que, a diferencia de lo que ocurre en otros países, es menos probable que los servicios 
de transmisión libre (over -the-top, OTT) sustituyan o pongan en peligro los servicios de radiodifusión 
actuales. En 2020, la KFTC realizó un análisis del mercado referente a la distribución al por mayor 
de productos marinos y el sector de la formación profe sional basado en las TIC a fin de supervisar 
la situación actual de esos mercados y de sus participantes y elaborar medidas para mejorar la 
política de promoción de la competencia.  
 
Preguntas:  
Con referencia al análisis del mercado de 2020 sobre la formación profesional basado en las TIC, 
¿cuáles fueron los resultados más relevantes en ese sector?  
 
Question 11.  With reference to the 2020 market analysis on ICT -based vocational training, what 
were the most relevant results in this sector?  
 
[Answer]  
As a result of market analysis in the vocational education industry, it has drawn implications that 
the market concentration of online education services is significant, and the burden of certification  
evaluation and restrictions of the content format can act as barriers to entry for new businesses. 
These results laid the foundation for reviewing measures to improve future systems.  
 
Página 126 (párrafo 3.196)  
 
3.196 La manipulación de las licitaciones da lugar a rigurosas sanciones y puede ser objeto de 
enjuiciamiento penal. El recargo máximo por la manipulación de licitaciones es del 10%. Una división 
de la KFTC, la División de Investigación de la Manipulación de Licitaciones, se ocupa de la tramitación 
eficiente de los casos de manipulación de licitaciones de contratos públicos para que se puedan 
resolver en plazo los asuntos que están pendientes desde hace mucho tiempo y cuyo período de 
prescripción finaliza e n breve. Entre 2016 y 2020, la KFTC descubrió 356 casos de manipulación de 
licitaciones, que representan el mayor porcentaje de los delitos, seguidos por los casos de fijación 
de precios (70). Los casos de manipulación de licitaciones durante este período experimentaron un 
aumento del 90,3% en comparación con los registrados en el período 2011 -2015 (187) […].  
 WT/TPR/M/414/Add.1  
 
- 160 - 
 
  Preguntas:  
¿Existen programas de cumplimiento o abogacía específicos que tomen en cuenta la alta incidencia 
de conductas anticompetitivas en procesos  de licitación?  
¿La ley de competencia contempla la inhabilitación de funcionarios o empresas culpables de 
participar en manipulación de licitaciones?  
 
Question 12.  Are there specific compliance or advocacy programs that take into account the high 
incidenc e of anti -competitive behaviour  in bidding processes?  
 
[Answer]  
There is no compliance program regarding the bidding process.  
 
Question 13.  Does the competition law provide for the disqualification of officials or companies 
guilty of participating in bid rigging?  
 
[Answer]  
The MRFTA does not disqualify officials or companies guilty of engaging in bid rigging. However, in 
the case of companies guilty of bid rigging, if they meet certain requirements, a request for 
restriction of bidding is made to the agenc y placing orders.  
 
Página 126 (párrafo 3.198)  
 
3.198 La aplicación extraterritorial por Corea de su legislación en materia de competencia no ha 
variado; como indicaron las autoridades durante el examen anterior, lo que se pretende con ella es 
proteger la competencia, no a las empresas coreanas. La KFTC tiene potestad para ocuparse de los 
cárteles internacionales que exportan a Corea, especialmente partes y materiales esenciales que 
pueden causar un daño directo e importante en el mercado interno.248 Si se establece un cártel en 
el país, Corea aplica la legislación procedente con arreglo a las normas internacionales, cualquiera 
que sea el origen de los participantes. Asimismo, cualquiera que sea el ámbito en el que opere un 
cártel, Corea aplica la ley de for ma extraterritorial si su establecimiento puede tener efectos 
negativos en el mercado interno […].  
 
Preguntas:  
¿La aplicación extraterritorial de la ley de competencia coreana se limita a cárteles o incluye 
conductas de abuso de poder de mercado y control de concentraciones?  
¿Cómo se establece el nexo local en caso de aplicación extraterritorial de la ley de competencia 
contra conductas unilaterales y en materia de control de concentraciones?  
¿Cuáles son las normas internacionales que la KFTC invoca  al momento de investigar o sancionar 
prácticas anticompetitivas que ocurren fuera de su jurisdicción?  
 
Question 14.  Is the extraterritorial application of Korean competition law limited to cartels or does 
it include conduct of abuse of market power and control of concentrations?  
 
[Answer]  
Yes, even if it is done abroad, if affecting the domestic market, it applies not only to cartels but also 
to acts such as abuse of dominant market positions and unfair trade practices.  
 
Question 15.  How is the local link established in the event of extraterritorial application of 
competition law against unilateral conduct and in matter s of concentration control?  
 
[Answer]  
The Supreme Court ruled that the extraterritorial application of the MRFTA should be limited to cases 
where "the case affecting the domestic market" has a direct, significant, and reasonable impact on 
the domestic mark et due to the foreign conduct in question. In accordance with this, we 
comprehensively consider the content and intention  of the act, the characteristics of goods and 
services, and the transaction structure to make a specific and individual judgment (Supre me Court 
Case No 2004 -du-11275). According to this judicial precedent, as to whether it has a direct, 
significant and reasonable impact on the domestic markets  decided by considering the content and 
intention of the act, the characteristics of goods and se rvices, and the transaction structure.  
 
Question 16.  What are the international standards that the KFTC invokes when investigating or 
sanctioning anti -competitive practices that occur outside its jurisdiction?  WT/TPR/M/414/Add.1  
 
- 161 - 
 
  [Answer]  
Article 2 -2 of the MRFTA stipulates the extraterritorial application , "If an act performed abroad 
affects the domestic market, this Act shall be applied."  
Meanwhile, the Supreme Court rules the "case of affecting the domestic market" as follows, and the 
KFTC is also enforcing the law accordi ng to this purpose.  
1) A case that affects the domestic market should be interpreted as a case that has a direct, 
significant, and reasonably predictable effect on the domestic market.  
2) In determining whether it is applicable, the content and intention o f the act in question, the 
characteristics of the goods (or services) subject to the act, the transaction structure, and the 
content and degree of the effect of the act on the domestic market must be comprehensively 
considered.  
3) However, if the domestic market is included in the subject of an anti -competitive agreement that 
occurred abroad, the MRFTA has extraterritorial application, as the agreement affects the domestic 
market unless there are special circumstances.  
 
Página 202 (párrafo 4.208)  
 
4.208 La Ley de Telecomunicaciones, modificada por última vez en 2020 (Ley Nº 17352), distingue 
dos tipos de empresas de telecomunicaciones: las empresas con instalaciones y las empresas que 
prestan servicios de valor añadido. La inversión extranjera en servicios de telecomunicaciones 
básicas está sujetas a un límite máximo del 49%, mientras que los servicios de telecomunicaciones 
de valor añadido están plenamente abiertos a la inversión extranjera. En el caso de los servicios de 
telecomunicaciones básicas, las emp resas extranjeras de determinados socios en ACR que hayan 
superado el examen de interés público no están sujetas a esa restricción en materia de participación 
en el capital. El MSIT puede prohibir que un accionista extranjero se convierta en el mayor accio nista 
individual (5% de las acciones o más) en KT.  
 
Preguntas:  
 
¿Cuáles fueron los principales cambios realizadas a la Ley de Telecomunicaciones (Ley Nº 17352), 
la cual fue modificada por última vez en 2020?  
¿Cuáles son las principales empresas de telecom unicaciones: las empresas con instalaciones y las 
empresas que prestan servicios de valor añadido, identificadas en el país?  
 
Question 17.  What were the main changes made to the Telecommunications Law (Law No. 17352), 
which was last modified in 2020?  
 
[Answer]  
Value -added telecommunication business operators with a certain number of users and traffic 
volume should take necessary measures suc h as securing service stability means and handling user 
requirements to provide convenient and stable telecommunication services to users (Article 22 -7 of 
the Act stipulated).  
Those who meet certain criteria such as the number of users and the traffic volu me as value -added 
telecommunication business operators without addresses or offices in Korea are required to 
designate a domestic agent in writing for handling user protection work (Article 22 -8 of the 
Act stipulated).  
The terms and conditions authorizati on system for service -specific fees for some key facilities -based 
telecommunications business operators is converted to a reporting system, but if it is recognized 
that there is a high risk of undermining users' interests or fair competition, the Minister of Science 
and ICT can reject the reporting. (Article 28 of the Act revised)  
 
Question 18.  What are the main telecommunications companies: companies with facilities and 
companies that provide value -added services, identified in the country?  
 
[Answer]  
Main telecommunication companies with  facilities include SKT, KT, LGU+, and SKB, and main value -
added telecommunication businesses include Naver and Kakao.  
Facilities -based telecommunication business operators install telecommunications line equipment 
(transm ission and line equipment, exchange equipment etc.) to provide facilities -based 
telecommunications services (telephones, high -speed Internet, etc.), and value -added common 
carriers provide value -added telecommunications service (SNS, OTT, searching service s, online 
content, etc.). Both operators are classified according to the service provided (facilities -based WT/TPR/M/414/Add.1  
 
- 162 - 
 
  telecommunications service vs. value -added telecommunication service), and in principle, 
facilities -based telecommunications service providers need to register with the Minister of Science 
and ICT, and value -added telecommunications service providers need to report to the Minister of 
Science and ICT.  
 
Página 202 (párrafo 4.209)  
 
4.209 Está prohibida la inversión extranjera en la radiodifusión por vía terrestre o inalámbrica. Las 
restricciones a la participación extranjera en el capital (de hasta el 49%, el 20% o el 10%) se aplican 
a los servicios de radiodifusión de programas según se definen en la Ley de Radiodifusión84, los 
proveedores de redes de cable, la radiodifusión por satélite y de otros tipos, las comunicaciones 
alámbricas, las comunicaciones inalámbricas y por satélite, y otros tipos de comunicaciones 
inalámbricas (cuadro 2.1)  
 
Pregunta:  
 
¿En qué año fue expedida la Ley de Radiodifusión, ha tenido alguna actualización y, de ser así, cuáles 
han sido los cambios más relevantes?  
 
Question 19.  In what year was the Broadcasting Law issued, has it been updated and, if so, what 
have been the most relevant changes?  
 
[Answer]  
The Korean Broadcasting Act was enacted in 1963 and came into force in 1964. Regarding the 
broadcasting service trade, an amendment was made in 2015 to ease foreign indirect investment in 
registered PPs for countries which signed FTAs with Korea. As a result o f the amendment, Korea 
allows 100% foreign indirect investment in registered PPs (excluding PPs on multi -genre 
programming, home shopping, news reporting) without restriction for the FTA parties designated 
and announced by the Minister of Science and ICT. Except for this additional opening in 2015, there 
have been no significant changes related to trade policy in the broadcasting sector.  
 
Página 203 (párrafo 4.214)  
 
4.214 En 2019, Corea puso en marcha una estrategia global denominada 5G+ cuyo objetivo es 
promover un "ecosistema 5G" en el que la tecnología 5G sea la infraestructura básica que conecta 
los dispositivos avanzados y los servicios innovadores. La tecnología 5G pe rmite conectar todos los 
objetos de una red y transmitir grandes volúmenes de datos a alta velocidad y en tiempo real 
(latencia ultra baja). La tecnología 5G puede multiplicar las grandes inversiones en las fases iniciales 
y ulteriores del proceso producti vo. El Gobierno considera que la tecnología 5G será un motor del 
nuevo crecimiento económico del país. Corea es el país de la OCDE con el objetivo más ambicioso 
de velocidad de descarga: 10 gigabits por segundo (Gbps) al 50% de los hogares urbanos 
(85 ciudades) para 2022.  
 
Pregunta:  
 
¿Cuáles han sido, hasta el momento, los principales avances de la estrategia global 5G+?  
 
Question 20.  What have been, so far, the main advances of the global 5G + strategy?  
 
[Answer]  
The Korean government promoted network inv estment by mobile telecommunication service 
providers by providing tax deductions for the construction of 5G networks and implementing 5G 
quality evaluations, and promoted the expansion of 5G services through R&D support for 
convergence service and investm ent in projects led by the public sector. In addition, we supported 
the establishment of the foundation for fostering 5G industries such as building test beds, fostering 
manpower, and improving regulations. We plan to continuously implement five core servi ces on top 
of 5G infrastructure: immersive content, smart factories, digital healthcare, smart factories, and 
smart cities, and foster ten core industries such as network equipment, next -generation 
smartphones, and edge computing.  
 WT/TPR/M/414/Add.1  
 
- 163 - 
 
  párrafo, 4.172., de la p ágina 195  
Se comenta que: "Una de las principales prioridades es la gestión y el almacenamiento de datos con 
miras a la digitalización de los servicios financieros. En diciembre de 2018, la FSC revisó el 
Reglamento de Supervisión de las Transacciones Finan cieras Electrónicas a fin de permitir que las 
instituciones financieras almacenen información crediticia personal e información identificativa en 
servidores en la nube . La utilización por las instituciones financieras de la computación en 
la nube en el ext ranjero se limitó a la "información no confidencial", lo que excluye la 
información crediticia personal de sus clientes y la información identificativa" …  
 
En ese sentido:  
 
 ¿Las instituciones financieras de la República de Corea, únicamente pueden contratar el servicio de 
cómputo  en la nube para almacenar información crediticia personal e información identificativa de 
sus clientes, cuando el prestador del servicio se encuent ra en territorio nacional?  
Si el proveedor de cómputo en la nube se encuentra en el extranjero, ¿la institución financiera tendrá 
prohibido contratar con el servicio en el extranjero si se trata de información crediticia personal e 
información identificati va? 
¿La República de Corea cuenta con disposiciones en sus tratados comerciales internacionales más 
recientes que sustenten la aplicación de esta distinción para que sus instituciones financieras 
contraten o no servicios de cómputo  en la nube nacionales o extranjeros atendiendo a la naturaleza 
de la información que puedan almacenar?  
 
Question 21.  Can financial institutions in the Republic of Korea only contract the cloud computing 
service to store personal credit information and identifying information of t heir clients, when the 
service provider is in national territory?  
 
[Answer]  
When financial companies processes customer's unique identification and personal credit information 
of their clients using the cloud, the CSP system must be located in Korea.  
 
Ques tion 22.  If the cloud computing provider is located abroad, will the financial institution be 
prohibited from contracting with the service abroad if it involves personal credit information and 
identifying information?  
 
[Answer]  
If CSP  system is in overseas, financial companies cannot process customer's unique identification 
and personal credit information of their clients using the cloud.  
 
Question 23.  Does the Republic of Korea have provisions in its most recent international trade 
treaties that  support the application of this distinction so that its financial institutions may or may 
not contract national or foreign cloud computing services, taking into account the nature of the 
information that can  they store?  
 
[Answer]  
The Financial service chapter in FTAs signed by Korea only allows transfer of information in ordinary 
course of business and has not included the provision regarding location of computing facilities for 
financial services.  
 
 
  WT/TPR/M/414/Add.1  
 
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  NORWAY  
Question number 1  
4. Trade policy by sector  
4.5.5.1 Maritime transport  
Para 4.233, on page 181 and 182, of the report contains information on the five -year plan in effect 
from 2018 to rebuild the shipping industry. Furthermore para 4.234 and 4.235 contains some 
information on the re sults of this plan so far.  
 
In this regard, Norway would appreciate further information to what extent this plan involves 
financial contributions from Korean authorities to both shipping and shipbuilding companies, and 
more specific, if there are any form of investment grants or direct or indirect government ownership 
and shareholding in Korean shipping and shipbuilding companies. Please indicate the amounts 
involved.  
 
[ANSWER]  
The 5 year plan includes shipping finance and liquidity provisions for shipping companies. With 
regard to ship construction supports, there are no discrimination between domestic and foreign 
shipbuilders, and liquidity provisions are based on market based interest rates. Meanwhile, the 
Korean government does not directly invest to or share ownership of shipping companies  
 
Question number 2  
Seafood has become very important for Norwegian exports of goods to the Republic of Korea, 
including a significant volume of fresh -farmed fish. This is a perishable commodity that is vulnerable 
to any delay in the transportation chain. According to our information, products that are subject to 
random testing in the Republic of Korea are kept in custody until the test results are ready, which 
could take up to five working days. During this delay, the q uality and shelf life of the products are 
reduced, sometimes to a level where destruction is the only option for the traders. Other countries, 
among them Norway and the EU countries, release products that are subject to random testing 
before the test resul ts are ready and recall products if necessary.  
 
Norway requests the Republic of Korea to describe any actions that are taken to ensure more efficient 
import control of fresh seafood, and particularly to explain the reasoning behind keeping perishable 
seafo od with no indications of any irregularities in custody until the test results are ready.  
 
[ANSWER]  
The Republic of Korea prioritizes ensuring the safety of imported foods to protect the public health. 
Therefore, the Ministry of Food and Drug Safety ( MFDS) requires divisions in charge to conduct 
necessary inspections on imported foods, for which an import declaration has been filed, before 
customs clearance procedure ends pursuant to Article 21 (1) of the Special Act on Imported Food 
Safety Control.  
Please note that MFDS issues certificates of confirmation of an import declaration for imported 
products that are subject to random testing and live, fresh or refrigerated fishery products on 
conditions that these products will not be sold on the market unt il the test results are ready pursuant 
to Article 31 (Conditional Import Inspection) of the Enforcement Rule of the Special Act on Imported 
Food Safety Control.  
 
Question number 3  
Norway directs the attention of the Korean Bare Boat Charter Hire Purchase scheme, BBCHP.  
The BBCHP is a long -term ship -financing scheme and available for Korean ship -owners, for ships 
built at Korean shipyards, for international deep -sea trade.  To our un derstanding, Korean 
ship‑owners are obliged to use Korean flag during construction and some short period after 
completion. After some time, the ship can be Bare -Boat chartered to another company on a 
long‑term contract.  The Bare Boat Charterer can choose a ny flag and jurisdiction for the ship, and 
use the services of any class society acknowledged by the chosen flag. However, for the ship owner 
to maintain the long term financing (the BBCHP) for the ship during the Bare Boat Charter, a 
mandatory annual surv ey of the ship must be performed by Korean Register . BBCHP vessels are 
subject to an obligatory annual class and statutory survey by Korean Register  irrespective of whether 
another classification society has certified the vessel, and the obligatory annual class and statutory 
survey of the KR adds like an extra cost.  
 WT/TPR/M/414/Add.1  
 
- 165 - 
 
  This rule in effect creates a competitive disadvantage for non -Korean classification societies that 
would like to provide their services to these vessels.  Against this background Norway would l ike to 
know if this Korean regulation on supply of services for vessels under foreign flag conforms to Korean 
WTO GATS commitments [for services].  
 
ANSWER : 
Domestic companies prefers BBCHP  due to reasons such as advantages from FoC or risk 
management. In this vein, Korea treats BBHCP ships identically as domestic vessels.  
 
  WT/TPR/M/414/Add.1  
 
- 166 - 
 
  THE PHILIPPINES  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
I. ECONOMIC ENVIRONMENT  
Para 1.2 (Page 17)  
Despi te Korea's solid fundamentals, supported by robust policy frameworks and a resilient financial 
system, downside risks to the economic outlook remain relatively unchanged and subject to 
COVID‑19 pandemic developments.8 Domestic/endogenous risks to the economy may stem from, 
inter alia, Korea's high reliance on manufacturing export -led growth, the r apidly ageing population, 
reduction in household incomes, downward pressures on demand and inflation, excessive reliance 
on monetary easing, and hindered empl oyment creation.9 Specialization in a few key industries 
(e.g. electrical and electronic equipment industry, cars, petrochemicals, and other heavy industrial 
products) dependent on a few large firms increasingly exposes the economy to domestic and external  
shocks, as they are highly interconnected with other domestic industries via upstream/downstream 
linkages and with foreign markets via export/import linkages, thus making Korea vulnerable to 
lasting disruptions in global value chains (GVCs). A permanent s lump in world trade, rising 
protectionism, retreat from multilateralism, geopolitical tensions, and/or weaker -than-expected 
global growth could adversely impact exports, further dampen investment, and push up 
unemployment.10 According to the IMF, as at 201 9, future prosperity depended on policies aimed 
at promoting balanced, private sector -led growth; fostering inclusion; enhancing productivity; 
promoting fair competition between large corporations and smaller firms; fostering innovation 
especially in SMEs;  and reducing the regulatory burden on firms, especially in the services sector.11 
Furthermore, outlook uncertainty reflecting external and domestic COVID -related risks remains 
elevated; reportedly, in addition, a strong currency and political factors coul d pose downside risks 
for growth.12 According to the IMF, as at 2021, building on the successful response to the COVID ‑19 
shock (Box 1.1), the priorities for the period ahead would be to nurture the ongoing recovery with 
additional fiscal and monetary poli cy accommodation, and solidify the foundations for resilient, 
greener, and more inclusive medium -term growth.  
 
Question:  
1. Considering the status of Korea's export and import success for the last years, how does 
the country maintain or minimize the effect of  the pandemic to maintain its trade surplus, 
especially in dealing with other economies greatly affected by COVID -19? What were the 
specific challenges faced by the Korean government on cross -border movement and global 
economic slowdown, and what measures were undertaken to lessen the impact it created?  
 
ANSWER : 
The reason that Korea's export and trade balance -related performance was able to occur despite 
COVID -19 is due to the composition of Korea's export portfolio.  
As the non-face-to-face, digital economy is revitalized due to the spread of Corona 19, the demand 
for semiconductors worldwide has surged. As a memory semiconductor powerhouse, Korea 
effectively responded to this global demand and achieved export performance tha nks to an increase 
in market share for system semiconductors, which are high value -added semiconductors.  
In addition, the main reason for Korea's trade performance last year was that it effectively responded 
to global quarantine demands such as masks and d iagnostic kits by utilizing well -equipped 
manufacturing facilities.  
 
As COVID -19 spreads around the world, many exporting companies in Korea also suffered difficulties 
due to labor movement and global logistics difficulties. In order to overcome this probl em, the 
Korean government has actively supported the immigration of business people based on the 
cooperative relationship between countries.  
 
II. TRADE AND INVESTMENT REGIMES  
Para 2.2 (Page 37)  
2.2. Korea continued to participate actively in the WTO. In 2019, it committed to not seek special 
and differential treatment for developing countries in ongoing and future negotiations at the WTO. 
During the review period, it was involved in seven WTO disputes and made a number of notifications. 
It continued to pu rsue market opening opportunities through regional trade agreements (RTAs). 
Agriculture remains partially covered, and rice excluded, from all RTAs.  
 WT/TPR/M/414/Add.1  
 
- 167 - 
 
  Question:  
2. Agriculture remains partially covered, and rice excluded, from all RTAs. May we kindly ask 
for further elaboration on the partial coverage of agriculture in ROK's RTAs? Which 
agricultural products have been liberalized in its recent RTAs?  
 
ANSWER : 
For some sensitive items, Korea is protecting them through exemption from tariff concession, 
maintaining  current tariff rates, seasonal tariff and long -term tariff elimination period in RTAs.  
Korea has recently signed the FTA with the UK in August 2019, and liberalized agricultural products 
and other related information are posted on the website below:  
(Korean) www.fta.go.kr  
(English) www.gov.uk/government  
 
Para 2.21 (Page 39)  
The Foreign Trade Act and the Customs Act remain the main legislation on international trade. The 
latter was most recently amended in 2020. Its implementing regulations were recently amended as 
well:  
• the Enforcement Decree of the Customs Act (Presidential  Decree No. 31454), partially 
amended on 17 February 2021;  
• the Enforcement Regulations of the Customs Act (Ministerial Ordinance No. 842), partially 
amended on 16 March 2021; and  
• the Regulations on Providing Preferential Tariff Treatment to Least Develop ed Countries 
(Presidential Decree No. 31380), partially amended on 5 January 2021.  
 
Questions:  
3. Please explain in detail all the amendments made vis -a-vis the previous version.  
 
ANSWER : 
The implementing regulations amended in accordance with the revision of the Customs Act are as 
follows.  
A. The Amendments to the Enforcement Decree of the Customs Act (Presidential Decree 
No. 31454): requirements for consignment carriers, specific reasons for keeping in custody 
carry-on items, and detailed standards for imposing fines; and extension  of the deadline for 
submitting a letter of recommendation  to be subject to the autonomous tariff quotas.  
B. The Amendments to the Enforcement Regulations of the Customs Act (Ministerial Ord inance 
No. 842): matters concerning the reduction or exemption of license fees at bonded stores.  
 
What was amended partially in the Regulations on Providing Preferential Tariff Treatment to Least 
Developed Countries(Presidential Decree No. 31380) was simple word -correction of a difficult word 
in Article 5 without any change of meaning.  
 
4. How will this affect existing international trade agreements?  
 
ANSWER : 
No existing international trade agreements would be affected by these revised regulations.  
 
Para 2.43 (Page 43)  
Korea actively pursues RTAs with its key trading partners. At the regional level, it signed the Regional 
Comprehensive Economic Partnership (RCEP) Agreement in November 2020, which is not yet 
ratified. In 2018, it signed an RTA with five Central American countries: Costa Rica, El Salvador, 
Honduras, Nicaragua, and  Panama. At the bilateral level, the RTA between Korea and the United 
Kingdom was signed in August 2019 and entered into force on 1 January 2021. Korea also concluded 
negotiations for an RTA with Israel in August 2019, which has not been signed. The RTA be tween 
Korea and Indonesia was signed on 18 December 2020, but has not been ratified. The RTA with the 
United States was amended in 2018. In 2018 and 2019, Korea notified the WTO of proposed 
suspension of concessions and other obligations on some imports fr om the United States and the 
European Union in response to safeguard measures taken by these Members on certain export items 
(Section 3.1.6.2).  
 
Question:  
5. When is RCEP expected to be ratified and effective in South Korea?  
 WT/TPR/M/414/Add.1  
 
- 168 - 
 
  ANSWER : 
Korea has just submitted  its request for ratification to the National Assembly and is  expected to 
complete within this year.  
 
Para 2.44 (Page 43)  
The authorities confirmed that in all of Korea's RTAs, agriculture remains partly covered, and rice 
excluded.  
 
Questions:  
6. Please explain in detail what is meant by "agriculture remains partly covered" and what 
agricultural products are included.  
 
ANSWER : 
"Agriculture remains partially covered" means Korea did not exempt all items related to agriculture 
from RTAs, but put different conditions, such as exemption from tariff concession for major items, 
maintaining current tariff, seasonal tariff, and long-term tariff elimination period.  
The list of agricultural products covered by each type of concession in all FTAs signed by Korea is 
posted on the websites below:  
(Korean) www.fta.go.kr  
(English) english.motie.go.kr  
 
7. What is the reason for excluding rice?  
 
ANSWER : 
Considering in overall the importance of rice in agriculture and rural economy of Korea and the 
concerns of the industry, Korea has excluded rice from tariff concession of FTAs.  
 
Para 2.47 (Page 44)  
Korea already has RTAs in force with all RCEP parties except Japan. In most of these existing RTAs, 
Korea liberalizes more than under the RCEP Agreement. The authorities indicate that Korean 
economic efficiency is expected to increase, as we ll as bilateral investment, as a consequence of 
market liberalization to Japan under the RCEP Agreement.  
 
Question:  
8. What measures are currently being taken by Korea that are more liberal than the RCEP 
provisions?  
 
ANSWER : 
The liberalization level of good s and services is rather low compared to Korea's existing FTAs. This 
is due to the fact that the level of economic development among RCEP signatories varies from LCDs 
like Cambodia and Laos to the advanced countries such as Australia and Japan. Therefore, some of 
the provisions are more liberal than RCEP texts, for example, the investment related rules.  
 
III. TRADE POLICIES AND PRACTICES BY MEASURE  
Para 3.4 (Page 68)  
Measures involving grants, tax concessions, and low -interest loans continued to support production 
and trade of various agricultural, forestry, fishing, coal mining, renewable energy, Fourth Industrial 
Revolution, and manufactured products, and to encourag e SMEs, innovation, research and 
development (R&D), environmental protection, and FDI activities. Regulatory and other initiatives 
to, inter alia, improve food and drug safety, as well as to align domestic standards to international 
standards, were underta ken. Control over imported safety food hazards was reinforced; the shift to 
a "positive list" system (PLS) to all pesticides in agricultural products except for those with 
domestically set maximum residue levels (MRLs) was completed. State involvement in t he economy 
persists. Changes were made to the main legislation of government procurement, which is still 
seemingly used as a policy tool. Several legislative amendments were undertaken in competition 
policy. A prohibition on new cross -shareholding between subsidiaries under large business groups 
remained in place, while large corporations and SMEs continued to be encouraged to voluntarily sign 
agreements on fair trade and shared growth. Price controls remain in place in specific areas. 
Consumer protection t ransparency and enforcement were reinforced. Korea's intellectual property 
rights (IPRs) regime continued to evolve rapidly, and legislation was strengthened; action was taken 
in response to COVID -19 challenges in this area.  
 WT/TPR/M/414/Add.1  
 
- 169 - 
 
  Questions:  
9. With the introducti on of the Digital New Deal, how does Korea intend to pursue digital trade 
in its FTAs, including the proposed review of the ASEAN -Korea FTA?  
 
Para 3.49 (Page 68)  
3.49. Korea's efforts to expand its bilateral and regional free trade agreements during the review 
period meant that its simple average tariff rate on imports from RTAs/FTAs (e.g. 2.5% for imports 
from the United States, 6.1% from Colombia, 2.9% from the E uropean Union, 5.4% from ASEAN, 
and 5% from Viet Nam), the APTA (13.3%), and LDC trading partners (7.8%) remained considerably 
below the 13.9% MFN average tariff rate (Table 3.2). However, it remains unchanged for imports 
from countries receiving preferenc es under the Global System of Trade Preferences Among 
Developing Countries (GSTP) and the GATT Protocol Relating to Trade Negotiations Among 
Developing Countries (TNDC) (Section 2.5.2 and Table 3.2). Since its last Review, Korea has kept 
virtually unchange d the number of items eligible for unilateral (non -reciprocal) duty -free and quota -
free tariff preferences to LDCs (Section 2.5.3 and Table 3.2). The Minister of Economy and Finance 
may withdraw or modify unilateral trade preferences if considered inapprop riate, taking into account 
the country's income level, volume of imports, and international competitiveness of the product and 
country concerned. The KCS maintains a webpage containing all preferential import tariffs. RTAs 
signed with the European Union (i n force since January 2011) and the United States (renegotiated 
agreement in force since January 2019) have led to a substantial elimination of tariffs; however, the 
Government continues to use "adjustment tariffs" according to a schedule published at the start of 
each year to manage imports of specific items, largely to prevent dumping and protect domestic 
producers.  
 
Question:  
10. How did Korea take into consideration the different levels of development of its trade 
partners in negotiating the concessions agreed upon and the nature and/or extent of 
cooperation in mutual areas of interest? Which areas of cooperation identified in trade 
agreements have been prioritized since entry into force, and will most likely be prioritized 
going forward, espe cially in view of the COVID -19 pandemic?  
 
[ANSWER]  
The Government takes into account the level of development of a country in FTA negotiations as one 
of the factors for reviewing the level and content of market access and the areas and content of 
cooperati on. As for reviewing the key areas of cooperation under a FTA, the Government takes into 
consideration various factors, including areas of interest of the Parties, in a comprehensive manner.  
 
ANSWER : 
Korea recognizes the importance of electronic commerce i n the digital economy era and is expanding 
the establishment of digital trade rules with like -minded countries. We are currently negotiating a 
Digital Partnership Agreement with Singapore and are in the process of joining the Digital Economy 
Partnership Ag reement (DEPA)with Singapore, New Zealand and Chile.  Korea  and Chile are also 
negotiating a digital economy chapter under the improvement negotiations for the current 
Korea -Chile FTA. In addition, the RCEP which is an agreement with ASEAN countries includes an 
e-commerce chapter.  
 
Regardless of the type or legal structure of the digital agreement, Korea is interested in establishing 
digital partnerships that achieve a high level of liberalization from the perspective of trade rules and 
emph asize cooperation in the digital field.  
 
11. How does Korea determine if there is a need for adjustment tariffs? Are there threshold 
levels considered? If yes, how are these threshold levels determined?  
 
ANSWER : 
The adjustment duties may be assessed, inter ali a, in following cases;  
- Where necessary to adjust widely unbalanced tariff rates among goods resulting from changes, 
etc. in the industrial structure;  
- Where necessary to protect public morality and the life and health of humans, animals and plants, 
preserve the environment, conserve limited natural resources, and to assure international peace, 
security, etc.;  
- Where there exist risks for the domestic market or the domestic industrial foundation to be 
undermined by an increase in the import of goods in cluding agricultural, forest and livestock products, WT/TPR/M/414/Add.1  
 
- 170 - 
 
  whose international competitiveness is weak, hence making it necessary to correct or prevent them 
from such risks.  
And threshold level for adjustment duties is determined in accordance with overall consideration 
factors such as, trend of relevant industry, price gap between domestic and imported goods or 
volume of import.  
 
12. What are the specific items where "adjustment tariffs" are applicable?  
 
ANSWER : 
Currently, the adjustment duties are applied for 14 items, e.g., fish(live eels and frozen Alaska 
Pollock etc.), agricultural products(steamed rice, Chinese vermicelli and oak mushroom etc.) and 
plywood.  
 
13. Are the new subsidy schemes applicable for all enterprises regardless of size? Are the 
beneficiaries required or encouraged to export as a condition to receive the 
incentives/support program?  
 
[ANSWER]  
As a member of WTO, Korea runs and notifies its subsidy programmes dutifully compl ying with the 
WTO rule; Agreement of Subsidy and Countervailing Measures. The beneficiaries are not required 
nor encouraged to export as a condition to receive the incentives. For greater certainty, Korea's 
subsidies schemes have been notified  to the WTO i ncluding information of size, beneficiaries , and 
duration, etc.  
 
Question:  
14. Are all ongoing activity - and sector -specific subsidy programmes of Korea notified 
to the WTO? Has Korea implemented any other domestic arrangements for priority 
sectors/ indus tries which serve the same function as subsidy or incentive 
programmes? If so, what arrangements are these?  
 
[ANSWER]  
As a member of WTO, Korea runs and notifies its subsidy programmes dutifully complying with the 
WTO rule. Especially, in 2021, Korea submi tted its notification of subsidy programmes without any 
delay. Korea will continue its efforts to comply with WTO rules to promote transparent trade 
environment.  
 
Para 3.124 -3.126 (Page 90 -91) 
3.125. A July 2020 Korean New Deal initiative (Sections 1.2.1 and 1.2.4) to invest KRW 160 trillion 
(USD 133 billion) over 2020 -25 based on two main policies, the Digital New Deal (KRW 58.2 trillion) 
and the Green New Deal (KRW 73.4 trillion), aimed to bolster job creation and enhance the 
competitiven ess of the domestic manufacturing sector by increasing public investment in digital and 
green energy infrastructure. It aims to also to strengthen the employment and social safety net 
(KRW 28.4 trillion) by, inter alia, expanding unemployment insurance cov erage to all forms of 
employment. Local governments and the private sector would contribute KRW 25.2 trillion and 
KRW 20.7 trillion, respectively, while the central Government would cover the remaining amount. 
The initiative includes projects for expanding  the integration of 5G and AI into industries, promoting 
remote working in SMEs, promoting prospective businesses to lead the green industry, establishing 
low-carbon and green industrial complexes, promoting renewable energy use and supporting a fair 
transition, and expanding the supply of electric and hydrogen vehicles. Under the Digital New Deal 
initiative, several support measures, including vouchers, funds, grants, and guarantees, for four 
sectors (strengthening the DNA ecosystem, digitalizing education al infrastructure, nurturing the 
contactless industry, and digitalizing social overhead capital) are envisaged.  
3.126. During the review period, sector -specific support measures benefited the shipbuilding, 
automotive, and Fourth Industrial Revolution indus tries (above and Sections 3.3.1.2.2.2, 4.3.2, 4.4, 
and 4.5.4.1).  
 
Question:  
15. Until when is Korea targeting to have the sector -specific support measures for 
COVID -19 in place? On the sectors listed in Para 3.126 that have benefitted from the 
support meas ures, can Korea specify the extent to which they have benefitted from 
these measures, such as increase in exports, employment, share to total GDP, etc.? 
Further, are there any other sectors aside from those listed above that are expected WT/TPR/M/414/Add.1  
 
- 171 - 
 
  to benefit in the near future from the same support measures? If so, what are these 
sectors?  
[ANSWER]  
In the shipbuilding industry, there is no direct support policy from the government related to the 
COVID -19.  
But R&D projects are in progress to develop technologies for a utonomous ships and eco -friendly 
ships related to the Digital New Deal and Green New Deal polices.  
 
The Korean government temporary helped the automotive industry, which has deteriorated financial 
soundness due to weak demand caused by Corona, and through this, we understood that this 
measures have  contributed to companies overcoming the liquidity crisis.  
 
Para 3.132 (Page 93)  
3.132. Under the Act on Trade Adjustment Assistance (TAA), since April 2007, Korean manufacturers 
adversely affected by a bi lateral FTA have been able to seek compensation from MOTIE and the 
MOEL (Ministry of Employment and Labour) through loans, investments, and job -placement support 
for workers. Measures to facilitate industry adjustment are adopted if sales or production are  reduced 
by more than 10% (since 2012; reduced from 25% to 20% in 2011) or, considering the operating 
income, number of employees, operation rate, and inventory of the enterprise, the damage is 
deemed to amount to more than 10% over an extended period beca use of import competition.  
 
Questions:  
16. How does this domestic arrangement of Korea factor into an FTA and/or its negotiations? Is 
this arrangement limited to bilateral FTAs of Korea only, or do they also apply to multilateral 
and/or regional agreements, such as WTO and RCEP? Further, are there any other 
arrangements with similar objectives of assisting or supporting manufacturers affected by 
trade agreements – whether bilateral, regional, or multilateral?  
 
ANSWER : 
TAA is the measure to assist manufacturing companies damaged by the increase in i mports resulting 
from the FTA. TAA applies not only to bilateral FTAs but also multilateral FTAs such as the 
Korean -ASEAN FTA. Once RCEP goes into effect, RCEP would be included in the application of TAA.  
 
17. What specific instance led to the creation or esta blishment of the TAA Act in 2007? Since its 
enactment, what are the trends/patterns in its utilization by Korean manufacturers? How 
long does Korea intend to continue this support mechanism?  
 
ANSWER : 
When the Korean government signed the Korea -US FTA in 20 07, the Korean government enacted 
the TAA to assist domestic manufacturers that were damaged by the FTA. Since the enactment, 
about 10 -50 companies have been receiving assistance every year. The operating period of the TAA 
is not fixed  
 
Para 3.234 (Page 125)  
Under the 2011 Framework Act on Intellectual Property (IPFA), a Presidential Council on Intellectual 
Property (PCIP) to review and adjust the key IP policies, as well as to evaluate and monitor the 
progress of IP, remains in place. Its December 2016 Second National Intellectual Property Master 
Plan (2017 -21) set forth the policy direction and strategic goals under the vision of "securing IP 
national competitiveness to lead the 4th Industrial Revolution". Its implementation is to provide 
advanceme nt of the IP system and economic ripple effects, such as generation of 
KRW 7,725.1  billion, added value of KRW 3,601.7 billion, and employment of 79,076. In 2019, the 
Plan's six key directions were: (i) creation of IP -based jobs; (ii) strong IP for prepara tion of the 
Fourth Industrial Revolution and creation of new industries; (iii) enhancement of IP capabilities and 
establishment of a process order for growth of start -up companies and SMEs; (iv) creation of a 
foundation for a copyright ecosystem correspond ing to the digital environment; (v) reinforcement 
of global IP capabilities; and (vi) spread of a culture of respect for IP. The direction of Korea key 
policies changed to IP creation focused on quality rather than quantity; expansion of IP transactions, 
IP finance, and IP service areas centred on the private sector; and strengthened protection of IP. 
For 2021, the five major areas of strategy are: (i) converting IP into assets based on market analysis; 
(ii) strengthening SME start -up growth, and protection ; (iii) supporting domestic IP to enter the 
global market; (iv)  creating an ecosystem of fairness and coexistence corresponding to the digital 
environment; and (v) establishing an IP field centred around people and culture. Furthermore, WT/TPR/M/414/Add.1  
 
- 172 - 
 
  between 2016 and 20 20, the total amount of IP -backed financing transactions rose by 257% to 
KRW 2.64 trillion (USD  18.35 billion).  
Questions:  
 
18. The total amount of IP -backed financing transactions rose by 257% from 2016 to 2020. 
What are the specific activities/projects/initi atives implemented by the government that 
contributed to this growth?  
 
ANSWER : 
The government supports IP valuation and financial institutions will give loans or investment based 
on valuation results.  
Reflecting the performance of IP finance in the government's evaluation of financial institutions, 
financial institutions have actively launched IP financial products   
 
19. What are the types of intellectual property that get financial support and what is the share 
of each?  
 
ANSWER : 
Only small and medium -sized companies with patents can receive loans or investments from 
financial institutions based on patent valuation.  
 
Para 3.247 (Page 128)  
During the review period, KIPO implemented policies aimed at encouraging the use of patent data 
in the R&D process. Be tween 2019 and 2020, it expanded drastically the implementation of KIPO's 
IP R&D plan, aiming to improve the efficiency of R&D projects and secure core technologies. This 
plan consists of expanding IP -R&D programs in public R&D projects, supporting IP R&D customized 
to each stage of growth of business, and strengthening the foundation for IP R&D proliferation in 
industry, academia, and research. Furthermore, in 2019 KIPO restructured its patent examination 
management structure in five of its bureaus. To imp rove patent examination capabilities, it 
established a new Convergence Technology Examination Bureau dedicated to the examination of 
technologies related to the Fourth Industrial Revolution, big data, and bio -health.  
 
20. What is protected as patents in the co ntext of big data?  
 
ANSWER : 
Patents shall be available for any inventions, whether products or processes, in all fields of 
technology such as collecting, analyzing, utilizing or the like big data, provided that they are new, 
involve an inventive step and are capable of industrial application.  
 
Para 3.280 (Page 134)  
Most IPR prosecutions, with the exception of trademarks, require a complaint from the right holder. 
KIPO can initiate investigations of unfair competition, such as the manufacture, sale, and  import or 
export of counterfeit goods (Unfair Competition Prevention and Trade Secrets Protection Act). KIPO 
reinforced investigations into counterfeit goods that greatly impact people's lives, such as large -scale 
illegal manufacturing and the distributio n of counterfeits related to health and safety, thereby 
eradicating their distribution channels. As a result of the 2018 amendment to the Persons Executing 
the Duties of Judicial Police Officers and the Scope of their Duties Act (Judicial Police Duty Act),  the 
scope of duties for KIPO special judicial police management has been expanded, as of March 2019, 
to include infringements of patent right, trade secrets, and design rights, as well as product form 
imitation under unfair competition activities, from pr eviously limited scope covering trademarks and 
the confusion of the product subject under unfair competition activities. Since 2006, KIPO has 
implemented a reward system to encourage the reporting of counterfeit goods and their distribution. 
By 2020, there  had been 1,644 reported cases (1,294 by 2015) with a total of KRW 24.1 billion 
(KRW 1.9 billion by 2015) awarded; the seized counterfeit goods were valued at KRW 4 trillion when 
matched to the retail prices of the genuine articles. Between 2016 and 2020, the number of arrests 
increased by 76% and the number of confiscated goods rose by 23%. Between 2016 and 2020, the 
Special Judicial Police arrested 2,445 individuals producing and/or selling counterfeit goods 
(including clothes, shoes, health foods, and co smetics), and a total of 8.8 million counterfeit items 
were seized. Through the Online Counterfeit Products Monitoring System, action continued to be 
taken to suspend sales by illegal sites, or close down the sites entirely, and online sellers of 
counterfe it goods were arrested.  
 WT/TPR/M/414/Add.1  
 
- 173 - 
 
  Questions:  
21. How are entities reporting counterfeit goods and their distribution being rewarded? Is the 
reward system sustainable?  
 
ANSWER : 
When a person files a report to the Korean Intellectual Property Office regarding someone who  
manufactures or sells counterfeit products, a reward will be paid to the informant if enforcement is 
carried out and the case is sent to the prosecutor's office. Payment is financed by the national budget, 
so the reward system can continue as long as the budget is secured.  
 
22. How does the Online Counterfeit Products Monitoring System work?  
 
ANSWER : 
The online monitoring system is operated under the Korea Intellectual Property Protection Agency 
by securing evidence of the sale of counterfeit products on the online shopping site the and then 
requesting the site to stop the sale and delete the post.  
 
Para 3.281 (Page 135)  
In October 2020, KIPO  announced Measures to Prevent Online Counterfeits to more effectively 
combat the rapidly increasing online distribution of counterfeit products due to the COVID -19 
pandemic while minimizing damage to consumers; the number of reports concerning online 
counterfeits increased by 150% year -on-year (2019 -2020) following the increase in online shopping. 
Offline enforcement personnel are temporarily handling online monitoring, whereas the Special 
Judicial Police are directly investigating mass distributors and fr equent sellers of counterfeit 
products, reinforcing investigative manpower, and promoting the advancement of investigation 
techniques, such as digital forensics. A damages compensation system, under which online open 
market platforms compensate for damage resulting from the purchase of counterfeit products first 
and then claim indemnity from the individual seller, has been established.  
 
Question:  
23. How effective is the damages compensation system? Is the system applicable to all types 
of platforms regardless of size? Are social media platforms (e.g. Facebook and Instagram) 
also covered by this system?  
 
ANSWER : 
This damages compensation system is independently run by a few of the online open market 
platforms, and therefore, the Korean government has no response . 
 
IV. TRADE POLICIES BY SECTOR  
Para 4.45 (Page 146)  
4.45. Farmers also benefit from zero or low irrigation water fees; according to the authorities, this 
is because the irrigation facilities were built by farmers at their own expense. Irrigation water is 
either provided by the Korea Rural Community Corporation (KRC), a public company, or by local 
governments. The KRC provides irrigation water free of charge, and local governments' prices do 
not cover operation and maintenance fees. This arrangement reduces  the farmers' motivation to 
conserve water, adopt water -saving technologies, and diversify away from paddy rice production. 
The authorities disagree, and state that the facilities were built in the 1970s by the Farmland 
Improvement Corporative, formed by f armers. The facilities were transferred to the KRC in 2000, 
and it covers the operation cost with its profits. The authorities also indicate that, as part of the 
efforts to achieve the Net Zero carbon emissions target by 2050, Korea announced that it is ad opting 
various water saving technologies.  
 
Question:  
24. What other implementation mechanisms and strategies are in place to achieve the Net Zero 
carbon emissions target by 2050? Additionally, aside from initiatives to reduce emissions, 
is Korea planning to al so establish plants that will take emissions out of the air?  
 
ANSWER : 
Korea, like many other countries, actively plans to employ GHG reduction technologies such as 
renewable energies including solar and wind power generation and hydrogen production and 
utilization, electrification, efficiency improvement, fuel switch, CCUS(CO2 Capture, Utilization 
and Storage), etc. Korea also recognizes the importance of Direct Air Capture, a carbon negative WT/TPR/M/414/Add.1  
 
- 174 - 
 
  option, for the Net Zero Emission in 2050. Although Korea doesn't  have an immediate action 
plan for the DAC plant construction, however, Korea  currently pays much attention to the 
development of DAC technology (which may also play a pivotal role in conjunction with the e -fuel 
synthesis).  
 
Para 4.74 (Page 154)  
4.74. The mining and quarrying industries account for a tiny share of GDP in Korea (0.1%), while 
its share in total employment is negligible (Table 1.2). In particular, coal has been an important 
source for electricity generation, while the Government has been implementing policies to gradually 
phase out coal from the energy mix (Section  4.3.2). Almost all coal used in Korea is imported, duty 
free. Coal price is controlled or monitored under the Coal Business Law (Section 3.3.4.2).  
 
Question:  
25. The mining and quarrying sector accounts for minimal to negligible share to Korea's total 
GDP and  employment. Given this, does Korea have any programs or initiatives to further 
promote the sector, or will it continue to rely on the importation of raw materials and semi -
finished to finished products?  
 
ANSWER : 
As the consumption of briquettes, the main consumer of Korean coal, is gradually decreasing, the  
proportion of domestic coal in the total coal demand is also expected to decrease gradually.  
 
Para 4.80 (Page 155)  
4.80. Since the previous Review, there has not been any significant change to the insti tutional 
framework regulating the energy sector. The Ministry of Trade, Industry and Energy (MOTIE) is in 
charge of energy policy development and implementation. Energy -related environmental policy is 
overseen by the Ministry of Environment. The Korea Elec tricity Regulatory Commission (KOREC) is 
the electricity supply regulator. A number of state -owned enterprises (SOEs) also play an active role 
in the sector, including the Korea National Oil Corporation (KNOC), the Korea Gas Corporation 
(KOGAS), and the Ko rea Electric Power Corporation (KEPCO).  
 
Question:  
26. Are there plans to liberalize state -owned enterprises in the energy sector? What would be 
the expected impact of such reforms to Korea's economy?  
 
ANSWER : 
Competition is enhanced  as the public share in the power generation sector falls in the mid - to 
long-term and the ratio of renewable energy increases thanks  to the expansion of renewable energy 
in the pursuit  of Korea's Renewable Energy 3020 policy.  
Competition has already been introduced in the power generation sector, especially in the case of 
LNG powe r generation projects  and thanks  to transition from coal to gas power , competition between 
KEPCO subsidiary  and private companies in Gas power generation is enhanced  
 
Para 4.81 (Page 155)  
4.81. The energy sector is regulated under the Basic Energy Law enacted in 2008, and the Energy 
Master Plans (EMPs) that are prepared every five years. The 3rd EMP, covering the period 2019 -40, 
sets out five initiatives to support its vision of securing sustainable growth and improving the quality 
of people's lives thr ough energy transition[.]  
 
Question:  
27. Noting the 4% RE share in 2019, how is Korea promoting RE to increase its growth and 
what policies are in place to achieve its goal of 30 -35% RE share in 2040? Are the existing 
policies being implemented effectively? Fu rther, what is the uptake of consumers to RE 
vis-à-vis other sources of energy, especially in terms of price and reliability?  
 
ANSWER : 
Energy production costs of renewable energy are decreasing internationally and domestically, and 
the deployment of renewable energy private facilities is also continuously increasing. Also, the 
government is continuously reinforcing systematic policies to improve the stability of renewable 
energy.  
 
 WT/TPR/M/414/Add.1  
 
- 175 - 
 
  Para 4.82 (Page 156)  
4.82. To reach these targets, the Government has been making efforts to both improve energy 
supply and regulate energy demand. On the supply side, the Government committed to gradually 
reduce nuclear power in electricity generation, and to eventually halt power production from nuclear 
by 2083 at the latest. The Government also committed to close old coal -fired plants that have been 
operating for over 30 years. In addition, in 2018 the Government granted local governments the 
authority to limit the output of coal -fired plants if air pollutio n and fine dust exceed the legal limits 
set by the Government.  
 
Question:  
28. Given the initiatives to gradually reduce nuclear power and coal -fired power 
plants, what would be the scenario of Korea's energy supply mix in the medium - and 
long- term? Furthe r, are there any technologies that are being proposed to replace 
coal and nuclear power? If so, what are these technologies?  
 
[ANSWER]  
Korea plans to significantly increase the proportion of renewable energy in its energy mix in the 
medium - and long - term.  The Korean government has set a goal to increase the proportion of 
renewable energy to 20% by 2030 through "Renewable Energy 3020 Plan" in 2017 and plans to 
further raise the target with the establishment of its new 2030 NDC target and 2050 Net Zero 
Scena rio within this year. In addition, Korea plans to actively develop and commercialize 
technologies including hydrogen, ammonia and CCUS for successful energy transition.  
 
Para 4.85 (Page 156)  
4.85. Further, the Rational Energy Utilization Act, which sets th e legal ground for all energy efficiency 
policies and legal obligations, requires major energy consumers to report their energy demand 
management plans to the Korean Energy Agency (KEA). KEA aimed to increase energy efficiency by 
granting financial and tec hnical support to businesses investing in energy -saving technologies. Large 
energy consumers were required to conduct energy audits every five years, while up to 30% of the 
audit costs for SMEs (under 10 Ktoe/year) were subsidized. Industries investing in combined heat 
and power (CHP) plants for their own heat supply were entitled to tax reductions.  
 
Question:  
29. Aside from policies and legal obligations, are there incentives specific to promote 
energy efficiency and demand side management for both private  and government 
sectors?  
 
[ANSWER]  
There are also direct and indirect incentives according to the high -efficiency certification system; 
mitigation of floor area ratio for building certified as zero -energy, preferential purchasing system in 
the government p rocurement market for energy material certified as high -efficiency. Easing the 
regulation is also incentive for enterprises to invest actively in energy efficiency; elongating energy 
audit cycle for installing EMS and resulting energy saving.  
 
Para 4.153 (Page 166)  
4.153. Services exports rose from USD 94.8 billion in 2016 to USD 103.8 billion in 2019, and then 
fell to USD 90.1 billion in 2020 (Table 1.4). The main destinations of services exports are China, the 
United States, the European Union, and Japan.58 Imports of services rose from USD 112.1 billion in 
2016 to USD 130.7 billion in 2019, before declining to USD 106.3 billion in 2020. Transportation, 
other business services, and travel are the main traded services.  
 
Questions:  
30. Services exports rose from USD 94.8 billion in 2016 to USD 103.8 billion in 2019, and 
then fell to USD 90.1 billion in 2020 (Table 1.4). The main destinations of services exports 
are China, the United States, the European Union, and Japan. Imports of services r ose from 
USD 112.1 billion in 2016 to USD 130.7 billion in 2019, before declining to USD 106.3 billion 
in 2020. Transportation, other business services, and travel are the main traded services. 
May we kindly seek further clarification on specific sectors a nd respective factors that may 
have attributed to the decline in services exports and imports? It may be worthy to make 
mention of key sectors affected given the COVID -19 pandemic . 
 WT/TPR/M/414/Add.1  
 
- 176 - 
 
  ANSWER : 
In the wake of the COVID -19 pandemic, imports and exports from con tactless service industries 
including telecommunication, computer and information increased, whereas import s and exports 
from some sectors such as travel, transportation and construction reduced. As to more detailed 
sectoral information, please refer to pa ragraph 1.27 in the Secretariat Report.  
 
Para 4.165 (Page 169)  
Financial Services  
Foreign investment is allowed in financial institutions, except for specialized banks. During the review 
period, more foreign financial companies left than entered the Korean market; according to an 
Economist Intelligence Unit (EIU) report, they could not compete with bigger local rivals and could 
not find a growth niche in a maturing market.71 The number of foreign bank branches dropped from 
39 in 2015 to 36 in 2020. In  2021, foreign financial institutions accounted for about 10.6% of 
financial sector assets (11% in 2015). The two foreign bank subsidiaries and 36 branches from 
16 countries make up about 11.6% of the banking sector (14% in 2015). In the insurance sector, 
12 foreign insurance companies' subsidiaries from 5 countries make up 9.8% of the domestic 
insurance sector. In the securities sector, 23 foreign companies from 11 countries make up about 
5.7% of the securities sector's assets. Foreign or local non -bank fi nancial companies' ownership in 
any commercial bank is restricted to 4% (15% for regional banks). This limit may be increased to 
10% for special cases, if approved by the FSC.  
 
Questions:  
31. The report states that "Foreign investment is allowed in financi al institutions, except for 
specialized banks." Could Korea elaborate on what these specialized banks are?  
 
ANSWER : 
According to the Export -Import Bank of Korea Act, institutions that can make equity investment in 
KEXIM are limited to the government, the B ank of Korea, Korea Development Bank,  MDBs  and soon.  
And basically, except  for MDBs,  foreign equity investment is not allowed.  
 
The Korea Development Bank (the "KDB") operates to supply and manage funds necessary for the 
development and promotion of indust ries, expansion of social infrastructure, development of regions, 
stabilization of financial markets and facilitation of sustainable growth, etc. The Korean government 
holds one hundred percent (100%) of shares of the KDB in order to support KDB's operatio n as a 
specialized bank.  
 
32. The report also states that "Foreign and local non -bank financial companies' ownership in 
any commercial bank is restricted to 4% (15% for regional banks). This limit may be increased 
to 10% for special cases, if approved by t he FSC." Could Korea provide examples of these special 
cases where the FSC approved the increase.  
 
ANSWER : 
On condition that he/she will not exercise his/her voting rights in the stocks, after satisfying the 
requirements  prescribed by Presidential Decree including financial soundness (Art16_2 of the banking 
act) 
 
Requirements  for approval of stock holding that non -financial investors do not exercise their voting 
rights  
 
1. to meet the standards set by the Financial Services Commission as standards for financial 
soundness applied to the relevant institution;  
2. The debt -to-equity rat io shall be 200/100 or less and meet the criteria set by the Financial 
Services Commission;  
3. If the corporation is a company belonging to an enterprise group under the Monopoly 
Regulation Act, the debt ratio of the enterprise group shall be 200/100 or less,  which 
satisfies the standards set by the Financial Services Commission;  
4. The funds for stock acquisition shall be funds within the total capital of the relevant 
corporation, not borrowing funds, such as funds raised by the relevant corporation through 
capital increase or the disposal of assets held within the last one year;  
 
Para 4.5.3.2.2 (Page 175)  
4.200 Insurance (Regulatory Framework)  WT/TPR/M/414/Add.1  
 
- 177 - 
 
  There are no foreign equity restrictions. Insurance companies, both domestic and foreign, must 
maintain funds of at least KRW 30 billion to do business in Korea. This requirement changed to 
KRW 3 billion for insurance branches. If insurers seek to handle certain insurance products, but not 
all, they need to maintain funds of at least KRW 5 billion, pursuant to president ial decrees.  
 
Questions:  
33. On the entry of foreign insurance players in Korea, does Korea have any limitation in foreign 
digital insurance providers from entering the market at offering insurance services to foreign 
nationals? Or does the company only ne ed to fulfill the capital requirement of KRW 30 billion to 
do business in Korea?  
 
ANSWER : 
Where a foreign insurer intends to run the insurance business in the Republic of Korea, 3 billion of 
its operating funds shall be deemed the capital .  
 
A foreign insu rer which intends to obtain a license for insurance business shall meet the following 
requirements:  
1. Holding the 3 billion of operating funds  
2. Running the same insurance business as it intends to run in the Republic of Korea pursuant to 
statutes and regulations of any foreign country;  
3. Its asset status, financial soundness and business soundness are to be sufficient to run the 
insurance business in the Republic of Korea and internationally recognized  
 
34. What is the current legal regime on cross -border supply of insurance and pre -need 
policies/products to Korea?  
 
ANSWER : 
An Insurance company which operates an insurance business in Korea should have commercial 
presence other than life insurance contract, insurance contract on export cargo, insurance contract 
on import cargo, aviation insurance contract, travel insurance contra ct, hull insurance contract, 
long-term accident insurance contract or reinsurance contract with a foreign insurance company . 
 
Para 4.283 (Page 188)  
4.283. The authorities state that under the impact of COVID -19, digital transformation has 
accelerated in th e tourism sector, and the Government has enhanced R&D, data management, and 
workforce training with a view to facilitating tourism companies to convert or expand their businesses 
by utilizing big data, AI, and other advanced technologies.  
 
Question:  
 
35. How did Korea improve the service delivery, planning, and financial management using the 
appropriate or relevant digital technologies in view of the impact of the COVID -19 pandemic? 
Further, how did Korea enhance its utilization of digital tourism platform and contact tracing 
methodologies to protect the health and safety of its citizens and tourists?  
 
ANSWER : 
Under the purpose of protecting the health and safety of its citizens and tourists, relevant ministries 
in Korea cooperate to collect and analyze the big data regarding tourism behavior such as travel 
movement, consumption record, and travel trends. The government have been enhancing its efforts 
to provide the information to stakeholders in the field of tourism industry to comply with the 
quarantine rules.  
 
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
 
I. INTRODUCTION  
Para 3.1 – 3.2 (Page 5)  
Korea has extended strong efforts to make a policy shift to realize a "human -centric economy," and 
thereby resolve slow growth and widening gaps wh ile producing a path towards sustainable growth. 
The Korean Government is making determined policy efforts to realize three core values: innovation, 
inclusion, and fairness.  
 WT/TPR/M/414/Add.1  
 
- 178 - 
 
  For innovation, Korea seeks to promote innovation across the industrial ecosystem by lifting 
unnecessary regulations. For inclusion, it is working to enhance the quality of jobs and strengthening 
safety nets for the low -income and vulnerable population, in an effort to reduce inequality and build 
a more inclusive economy. And,  for fairness, Korea is combating unfair business practices and 
encouraging cooperation among large and small and medium -sized companies, to build a solid 
foundation for a sound market economy.  
 
Question:  
36. Has there been any shift in the policy consider ing that the pandemic has greatly affected 
certain industries, for example, transportation and tourism sectors? Did the Korean 
government provide for subsidies to industries greatly affected by the pandemic?  
 
[ANSWER]  
Korean government has implemented export and domestic consumption policies in order to vitalize 
industries which suffered during COVID -19 situation. Especially for export vitalization, Korean 
government increased a number of ships and airplanes for logistics and distribution, w hile holding 
networking conference with related organizations  
As described in the Secretariat Report, the tourism sector in Korea has been significantly  contracted 
in 2020 due to the COVID -19 pandemic. Korean government continues on subsidizing for the tou rism 
sector.  
 
II. ECONOMY AND TRADE  
Para 2.1 (Page 11)  
FTA Policies  
 
Question:  
37. What have been the key achievement of the Ministry of SMEs and Startups (MSS) since 
its inception?  
 
ANSWER : 
Since its launch, the Ministry of SMEs and Startups has been promoting the expansion of growth 
engines for SMEs and venture companies and management stabilization of small business owners 
based on 'innovation and inclusiveness'.  
 
Para 2.9. (Page 4)  
The ou tbound FDI (remittance basis) from Korea grew from USD 40.3 billion in 2016 to USD 64.3 
billion in 2019, but fell to USD 54.9 billion in 2020.8 As of 2020, finance and insurance businesses 
showed the largest FDI outflows (32%) followed by the manufacturing  industry (24%) and real 
estate businesses (14%). The U.S. was the top investment destination (32%), followed by Asia 
(31%) and Europe (18%).  
 
Question:  
38. Can you provide a list of Korea's investment destinations in Asia and Europe, including 
the value of investment as well as the ranking?  
 
[ANSWER]  
 
Europe (total)  14,251.923  
Luxembourg  3,249.297  
UK 2,224.598  
France  1,843.439  
Jersey  1,538.775  
  Poland  1,162.875  
Guernsey  750.993  
Hungary  739.541  
Germany  723.308  
  Ireland  433.517  
Spain  322.866  
Italy 270.603  
Netherlands  218.109  
Turkey  201.580  
Switzerland  103.627  
Russian Federation  98.872  
Belgium  81.480  WT/TPR/M/414/Add.1  
 
- 179 - 
 
  Croatia  71.206  
Czech Republic  65.338  
Romania  34.022  
Slovakia  31.652  
Etc. 22.297  
Cyprus  14.860  
Sweden  11.182  
Georgia  10.000  
Ukraine  7.097  
Portugal  6.414  
Denmark  3.206  
Austria  3.089  
Norway  2.643  
Bosnia and Herzegovina  1.770  
Finland  1.345  
Albania  0.796  
Slovenia  0.617  
Lithuania  0.555  
Greece  0.243  
Serbia  0.057  
Latvia  0.045  
Belarus  0.010  
 
Asia (total)  20,530.505  
China  5,854.046  
Vietnam  4,589.554  
Singapore  3,234.120  
Hong Kong  2,757.558  
Japan  1,300.090  
Indonesia  983.716  
India 452.336  
Myanmar  281.811  
Malaysia  239.716  
The Philippines  235.380  
Cambodia  212.559  
Thailand  93.484  
Lao PDR  69.372  
Chinese Taipei  54.080  
Pakistan  46.631  
Uzbekistan  35.087  
Bangladesh  29.327  
Kazakhstan  23.614  
Mongolia  16.845  
Nepal  15.295  
Kyrgyz  2.932  
Sri Lanka  2.276  
Macau  0.257  
Brunei Darussalam  0.202  
East Timor  0.137  
Tajikistan  0.081  
 
III. ECONOMIC POLICY  
Para 3.6 (Page 6)  
The pandemic has also reminded us of the necessity of policies to overcome the shock on short -term 
jobs as well as responding to fundamental changes in the employment market caused by the 
transition towards a green and digital economy. In response, Korea aims to strengthen safety nets 
for the vulnerable, use the "Investment in People" policy to foster talent to create more jobs in new 
industries and narrow th e digital gap.  
 
Question:  
39. Would it be possible for Korea to provide more details for its "Investment in People" 
policy? We would be interested to hear how this tackles 4IR and preparing its people for jobs 
of the future.  
 
ANSWER : 
The Ministry of Employment and Labor is making its efforts to nurture skills tailored to digitization 
and low carbonization that are rapidly accelerating, which become more crucial after COVID -19 
pandemic. MOEL established new technology training programs to promote new technology WT/TPR/M/414/Add.1  
 
- 180 - 
 
  capabilities for young jobseekers, and are expanding training for incumbent workers to enhance 
their new technology capabilities by considering that digitization is accelerating in all industries. In 
addition, talent not only with  digital skills, but also with comprehensive job competency, including 
creativity and convergence skills is essential. Accordingly, to nurture such talent, we are extensively 
supporting comprehensive basic job skills, including problem solving skills, crea tive thinking, 
knowledge of humanities, etc. Lastly, we are actively responding to changes, particularly by 
establishing training programs to provide timely training in line with dramatic changes in the demand 
for workers due to those in the industrial str ucture.  
 
Para 3.8 (Page 6)  
As of 2021, Korea has concluded 17 FTAs with 57 nations, which have led to an increase in 
agricultural trade with FTA partners while contributing to market liberalization. As of 2020, Korea's 
agricultural trade volume amounted to  a total of USD 41.79 billion, of which USD 33.72 billion 
(80.6%) came from trade with its FTA partners.  
 
Question:  
40. ROK has concluded 17 FTAs with 57 nations as of 2021, which led to an increase in market 
liberalization. What are the top 10 agricultura l products that ROK has liberalized in its FTAs? 
Should we expect for ROK to further liberalize agricultural products in its future FTAs?  
 
ANSWER : 
It is difficult to determine the top 10 products since Korea has different list of liberalized agricultural 
products in each FTA. The overall outcomes of the negotiations including the negotiation status and 
the list of liberalized products can be found on the website(english.motie.go.kr)  
Through the Korea -ASEAN FTA, Korea has partially opened the market for agricultural product to 
the Philippines, and is negotiating with the Philippines through a separate FTA to determine 
additional market access of agricultural products.  
 
41. Which among Korea's FTAs include agricultural safeguard measures? How did the 
agricultural safeguard provisions impact the agricultural trade of Korea?  
 
ANSWER : 
FTAs signed with the US, Canada, Australia , New Zealand and the EU include ASG, and detailed 
information can be found on the website (english.motie.go.kr).  
The ASG is included in  most of the FTAs as a measures applied to remedy serious injury to the 
domestic industry from a sudden surge in imports.  
 
Para 3 .16 
3.16. The Korean Government has placed its focus on regulation improvements, standardization, 
and industrial reorganization to advance Korea's industrial ecosystem and promote innovation in the 
manufacturing sector. For instance, the Regulatory Sandbox Reg ime introduced in 2019 granted a 
total of 102 exemptions by 2020. The regime helped create new business opportunities, as 
demonstrated by hydrogen charging stations in urban areas and smart parking robot services. On a 
similar note, the Industrial Converge nce Promotion Act  in 2021 was revised to provide a provisional 
permission for operation to businesses that have successfully completed the demonstration phase, 
in order to secure the continuity of businesses.  
 
Question:  
42. Are there specific B2B platforms  under similar industrial initiatives that complement 
partnership between government and industries?  
 
ANSWER : 
The uTradeHub, the national paperless trade platform, was initiated by the Korean government 
under the  Electronic Trade Facilitation Act. The 3rd party entity owned by Korea International Trade 
Association was designated as an operator of the platform. The uTradeHub provides various B2B 
services related to international trade, logistics, customs and cross -border e -commerce.  
 
Para 3.19. (Page 7)  
In December 2020, Korea established plans for the power industry and new and renewable energy 
sectors. For the power industry, the Korean Government adopted the "9th Master Plan for Power 
Supply and Demand," which includes forecasts for power supply and demand for 2020 -2034 
alongside plans for demand management, power facilities, improvement of the power market WT/TPR/M/414/Add.1  
 
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  system, and reduction of greenhouse gas emissions. It also announced the "5th Master Plan for New 
and Rene wable Energy," which aims to generate 25.8% of electricity from new and renewable energy 
sources by 2034. This plan covers improvement of the power system, the expansion of demand for 
renewable energy, and comprehensive policies on new and renewable energy  such as hydrogen.  
 
Question:  
43. Does the 5th Master Plan for New and Renewable Energy involve plans to expand/undertake 
investment activities in renewable energy generation in other countries? If so, aside from 
hydrogen, what other forms of renewable en ergy are included in Korea's priorities?  
 
ANSWER : 
We're expanding the deployment of solar and wind power.  
 
Para 3.23. (Page 8)  
However, unlike trade in goods, it is difficult to clearly identify the status of exports and imports in 
services, as these do not go through customs procedures. The Bank of Korea has been announcing 
the volume of trade in services in the form of balance o f payments (service balance) based on foreign 
exchange transaction data collected from foreign exchange banks. However, there is no clear 
distinction between different types of businesses and sectors, creating difficulties for analysing 
relevant data and e stablishing trade policies. To gain a clear and detailed understanding of the exact 
export volumes, trends, and major export destinations of emerging service businesses, Korea has 
started developing statistics on trade in services and is now cooperating wi th relevant government 
agencies and organizations.  
 
Questions:  
44. Can you provide more information on Korea's initiative to develop statistics on trade in 
services? What is the status of this initiative? What has been achieved so far?  
 
ANSWER : 
Discussion is undergoing to improve trade in service statistics with related agencies, but nothing has 
been specified so far.  
 
IV. TRADE AND INVESTMENT POLICY  
Para 4.2 (Page 8)  
The country was also the first to transform from an aid -recipient country to a donor country. In 
October 2019, the Korean Government decided to no longer seek special treatment reserved for 
developing countries in current and future negotiations at the WTO . It also made an unprecedented 
request in June 2021 to the UNCTAD that its status be moved from the List A group (Asian and 
African member countries) to the List B group (developed nations). Member countries of the UNCTAD 
unanimously decided to change the  status of Korea during the 68th board meeting held on 
2 July 2021.  
 
Question:  
45. Are there plans to review the country's domestic support on agricultural products, 
subsidies and other support programs now that Korea will no longer seek special treatment 
and is part of the developed nations?  
 
ANSWER : 
In 2019, Korea committed to not seek special and differential treatment for developing countries in 
future WTO negotiations.  
With a view to moving towards a sustainable and environmentally -friendly agricultural policy, Korea 
revised its direct payment system in 2020 in a way that decouples eligibility criteria from the price 
and production of agricultural products.  
 
Para 4.25. (Page 11)  
As an open trading nation, Korea has co ntinued to expand its FTA network, based on the 
understanding that market opening and liberalization would help enhance national competitiveness. 
Since the Korea -Chile FTA in 2004, the Protocol Amending the KORUS FTA entered into force in 
2019, and the FTA s with the U.K. and five Central American countries also came into effect in 2021. 
As of July 2021, Korea has an FTA network spanning across 57 different nations through 17 FTAs. 
In addition, domestic ratification procedures are underway at the Korean Nati onal Assembly for the 
FTAs with Indonesia, the RCEP, and Israel.  WT/TPR/M/414/Add.1  
 
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  Question:  
46. Please provide more information on the status of domestic ratification procedures for 
the FTAs with Indonesia and Israel and RCEP? What are the necessary procedures and 
require ments for domestic ratification of Korea's FTAs? What is the time frame for these 
procedures and requirements to be completed?  
 
[ANSWER]  
Korea is on the final phase of domestic procedures for the ratification. We have submitted the request 
for ratification  to the National Assembly on the first of October and expect to complete the process 
within this year.  
 
Para 4.26 (Page 11)  
47. The Korean Government has been aiming for comprehensive and high standard FTAs covering 
goods, services, investment, and rules. It has pursued FTAs with the world's largest economies, such 
as the United States, European Union, and China, as well as emerging economies, while actively 
participating in the economic integration discussions in East Asia.  
 
Question:  
47. What speci fic product concessions and/or other significant considerations are of 
importance to Korea in entering and concluding negotiations for an FTA? Further, how does 
Korea ensure balance of concessions in its negotiations with potential free trade partners?  
 
ANSWER : 
Korea is on the final phase of domestic procedures for the ratification. We have submitted the request 
for ratification to the National Assembly on the first of October and expect  to complete the process 
within this year.  
 
Para 4.28 (Page 12)  
Korea will continue to actively engage in discussions for bilateral and regional FTAs as well as 
mega -FTAs. In addition, it will proactively push ahead with agreements in the digital sectors to keep 
pace with the rapidly changing trade environment in line w ith the advancement of digital 
technologies and the COVID -19 pandemic.  
 
Question:  
48. Will ROK proactively push ahead with agreements in the digital sectors to keep pace with 
the rapidly changing trade environment in line with the advancement of digital te chnologies 
and the COVID -19 pandemic. Will ROK push for more legally binding provisions on e -
commerce/digital trade in its FTAs?  
 
ANSWER : 
Korea seeks to achieve a high -level of obligations for digital trade in bilateral and regional FTAs as 
well as mega -FTAs. In particular, our basic stanceis to include a  higher -level of obligations above 
other multilateral agreement such as WTO Agreement. However, we are still able to demonstrate 
flexibilities in accordance with the specific circumstances of our negotiating partners or individual 
matters.  
 
Para 4.35. (Pa ge 12)  
Since the outbreak of the COVID -19 pandemic, trade is facing more challenging conditions than ever 
before (e.g. restrictions on cross -border movement and global economic slowdown). To address 
such situations, the Korean Government, related organizat ions, and the industrial sector have 
established a cooperative system, under which vaccinations of those business people who need to 
travel overseas have been prioritized, and standard contract templates have been distributed to 
reduce possible disputes am ong export and import companies.  
 
Question:  
49. Is there any assistance available or provided to business people coming in to Korea?  
 
ANSWER : 
Korea has  implemented several  measures facilitating essential movement of people across borders. 
Korea implemented, upon bilateral arrangement, Special Entry Procedure(called Fast Track 
Procedure) with various economies  to allow business people to carry out economic activities upon 
arrival in Korea without the 14 -day quarantine. Korea has Quarantine Exemption Certificates WT/TPR/M/414/Add.1  
 
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  available for people holding A -1 (Diplomat), A -2 (Government Official), or A -3 (Agreement) visas 
and those who have received the Quarantine Exemption Certificate issu ed by a Korean Embassy 
prior to arrival in Korea. Quarantine exemption can be issued for those visiting for important and 
urgent business activities, or other special  reasons. In addition, APEC Business Travel Card (ABTC) 
holders who are granted pre -cleara nce can enter Korea without the need to apply for a separate 
visa.  
 
Para 4.42. (Page 13)  
Since the Foreign Investment Promotion Act was amended on 1 April 2019, surveys have been 
conducted every three years to inquire into the effect foreign investment ha s on job creation in 
Korea. The results of such surveys are incorporated into policies to promote foreign investment. In 
addition, to encourage foreign -capital invested companies to hire local employees, a wide range of 
events and programmes are being orga nized, such as job fairs and employment support weeks.  
 
Question:  
50. Please provide more information on the methodology used in the conduct of surveys to 
inquire and assess the effect of foreign investment on job creation in Korea. How are the 
results of these surveys incorporated into foreign investment policies?  
 
ANSWER : 
Through the sampling process of 2500 foreign firms operating in Korea, the survey was done based 
on the uniform questionnaire. The report contains analysis on comprehensive em ployment status 
and demands for foreign -invested firms, such as employment plans, required talents for the potential 
employees, grievances  in the recruiting process.  
The government attempts to encourage foreign -invested firms to increase domestic employmen t by 
referring to the result of the survey and thus provide relevant  policies accordingly.  
 
 
THE PHILIPPINES  – REVISED ANSWERS  
II. TRADE AND INVESTMENT REGIMES  
Para 2.2 (Page 37)  
2.2. Korea continued to participate actively in the WTO. In 2019, it committed to not seek special 
and differential treatment for developing countries in ongoing and future negotiations at the WTO. 
During the review period, it was involved in seven WTO disputes and made a number of notifications. 
It continued to pursue mark et opening opportunities through regional trade agreements (RTAs). 
Agriculture remains partially covered, and rice excluded, from all RTAs.  
 
Question  2: 
Agriculture remains partially covered, and rice excluded, from all RTAs. May we kindly ask for further 
elaboration on the partial coverage of agriculture in ROK's RTAs? Which agricultural products have 
been liberalized in its recent RTAs?  
 
ANSWER  
Korea is  adopting several measures, such as exemption from tariff concession, maintaining current 
tariff rates, seasonal tariff and long -term tariff elimination period in RTAs.  
Korea has recently signed the FTA with the UK in August 2019, and liberalized agricultural products 
and other related information are posted on the website below:  
(Korean) www.fta.go.kr . 
(English) www.gov.uk/government . 
 
Para 3.234 (Page 125)  
Under the 2011 Framework Act on Intellectual Property (IPFA), a Presidential Council on Intellectual 
Property (PCIP) to review and adjust the key IP policies, as well as to evaluate and monitor the 
progress of IP, remains in place. Its December 2016 Second National Intellectual Property Master 
Plan (2017 -21) set forth the policy direction and strategic go als under the vision of "securing IP 
national competitiveness to lead the 4th Industrial Revolution". Its implementation is to provide 
advancement of the IP system and economic ripple effects, such as generation of 
KRW 7,725.1  billion, added value of KRW 3 ,601.7 billion, and employment of 79,076. In 2019, the 
Plan's six key directions were: (i) creation of IP -based jobs; (ii) strong IP for preparation of the 
Fourth Industrial Revolution and creation of new industries; (iii) enhancement of IP capabilities an d 
establishment of a process order for growth of start -up companies and SMEs; (iv) creation of a WT/TPR/M/414/Add.1  
 
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  foundation for a copyright ecosystem corresponding to the digital environment; (v) reinforcement 
of global IP capabilities; and (vi) spread of a culture of res pect for IP. The direction of Korea key 
policies changed to IP creation focused on quality rather than quantity; expansion of IP transactions, 
IP finance, and IP service areas centred on the private sector; and strengthened protection of IP. 
For 2021, the five major areas of strategy are: (i) converting IP into assets based on market analysis; 
(ii) strengthening SME start -up growth, and protection; (iii) supporting domestic IP to enter the 
global market; (iv)  creating an ecosystem of fairness and coexistenc e corresponding to the digital 
environment; and (v) establishing an IP field centred around people and culture. Furthermore, 
between 2016 and 2020, the total amount of IP -backed financing transactions rose by 257% to 
KRW 2.64 trillion (USD  18.35  billion).  
 
Question  18: 
The total amount of IP -backed financing transactions rose by 257% from 2016 to 2020. What are 
the specific activities/projects/initiatives implemented by the government that contributed to this 
growth?  
 
ANSWER  
The government supports IP valua tion which is a fundamental basis for IP finance and has 
encouraged financial institutions to launch IP financial products based on promising IPs by reflecting 
the performance of IP finance as one criterion in the government's evaluation of financial insti tutions.  
 
Question 1 9: 
What are the types of intellectual property that get financial support and what is the share of each?  
 
ANSWER:  
Small and medium -sized companies with patents can receive loans or investments from financial 
institutions based on patent valuation.  
 
  WT/TPR/M/414/Add.1  
 
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  SAUDI ARABIA  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
CHAPTER NUMBER AND TITLE  
Page #185# (Para #4.25 6.) 
Take-off and landing slots are allocated in the order of priority, according to slots retained from the 
previous season for scheduled air services, slots used for scheduled air services in the previous 
equivalent and non -equivalent seasons, and new slots requested for scheduled and non -scheduled 
air services. Slots are not transferable. Unused slots are coll ected according to relevant regulations 
and are re -allocated if necessary  
 
Questions : 
1.Kindly provide the regulations governing slots allocation and collection in Korean airports ? 
 
ANSWER : 
Distribution of airline slots: Article 18 (1) of the Aviation Business Act.  
Article 18 (Distribution of aircraft operating time, etc.)  
The Minister of Land, Infrastructure and Transport may allocate or adjust the departure or arrival 
time (hereinafter referred to as "time of operation") of aircraft to effici ently operate airports, secure 
air traffic safety, protect air traffic users, and improve air traffic services under Article 10 (1) 1 of 
the Incheon International Airport Act.  
 
Slot recovery: Article 18 (5) of the Aviation Business Act  
The Minister of Land , Infrastructure and Transport may collect all or part of the allocated flight time 
if not used in order to improve the utilization of flight time, efficient operation of airports, secure air 
traffic safety, protect air traffic users, and improve air traff ic services.  
  WT/TPR/M/414/Add.1  
 
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  SINGAPORE  
PART I: QUESTIONS REGARDING THE Secretariat Report  
Page 39 (Para 2.25)  
1. "Korea's legal framework for e -government focuses on the protection of personal data and 
information and on digital security and digital identity." We note t hat ROK has revised the Personal 
Information Protection Act (PIPA), which includes new requirements for data transfers out of ROK. 
Could ROK elaborate on these requirements, and the cross -border data transfer mechanisms 
recognised under the PIPA amendment that companies can adopt?  
 
ANSWER : 
The amendment bill of the PIPA has not passed the National Assembly of the ROK. It seems too 
early to  explain various cross -border data transfer mechanisms that companies would/should 
voluntarily adopt.  
 
Page 100 (Para 3.158)  
2. "All imported food products are required to carry legible Korean -language labels. Labelling 
requirements include nutritional labelling, voluntary colour -coded labelling, high caffeine content 
labelling for liquid products, functional food labelling, liquor  labelling, country of origin labelling 
(COOL) (by MAFRA), and genetically modified (GM) labelling for unprocessed agricultural products 
and processed food". Could ROK elaborate if there are labelling requirements for sugar -sweetened 
beverages?  
 
ANSWER : 
We do not require additional labelling for sugar -sweetened beverages. All imported food products' 
Korean -language label must bear the labelling required by the "Label ling Standards of Foods, 
Etc."(Ministry of Food and Drug Safety) according to type of food ( determined according to the "Food 
Code"(Ministry of Food and Drug Safety) and the characteristics of the food, including nutritional 
labelling, high caffeine content labelling for liquid products, etc. The labelling  of precautions for 
consumers' safety as a specification of the products shall be in accordance with the attached Table 
2 of Article 5 of the "Enforcement Rule of the Act on the Labeling and Advertising of Food, Etc." 
(Ministry of Food and Drug Safety).  
 
Page 114 (Para 3.205)  
3."Laws protecting d igital privacy, including the Act on Promotion of Information and Communication 
Network Utilisation and Data Protection (Network Act of 2001), the Personal Information Protection 
Act (PIPA of 2011), and the Act on the Use and Protection of Credit Informati on (wholly amended in 
2009), were amended in January 2020, and most of the amendments took effect in August 2020." 
Could ROK elaborate on how these three laws interact to regulate the protection of personal data in 
ROK?  
 
ANSWER : 
It used to be the case that the data protection authority was split into different institutions including 
the Personal Information Protection Commission (PIPC), Ministry of the Interior and Safety (MOIS), 
and the Korea Communications Commission (KCC). And personal information pr otection was 
regulated by the PIPA, the Network Act, and other individual laws, if specifically mandated.  
In order to efficiently and securely protect the personal information of the people in Korea, the 
Korean government made amendments to the aforementi oned three laws in February 2020 to grant 
the PIPC the power to oversee personal  information protection. Some articles and clauses regulating 
personal  information protection mandated in the Network Act were removed and integrated into the 
PIPA.  
The PIPC ha s been the control tower of personal information protection since, and personal 
information in general is regulated by the PIPA. Meanwhile, credit information managed by financial 
companies and personal credit information falls within the jurisdiction of t he Financial Services 
Commission (FSC), and location information protection is handled by the KCC.  
 
Page 170 (Para 4.172)  
4. "Financial institutions' use of cloud computing based abroad had been limited to "non ‑critical 
information", excluding such information about their customers' persona l credit information and 
unique identification information. In addition, the Use and Protection of Credit Information Act, the 
Personal Information Protection Act, and the Act on Promotion of Information and Commun ications 
Network Utilization and Information Protection were amended, to relax some data -privacy rules for WT/TPR/M/414/Add.1  
 
- 187 - 
 
  financial institutions and fintech operators seeking to exploit big data." Could ROK elaborate on 
whether there are requirements for financial inform ation and customer information to be stored 
onshore, and if such information can be transferred offshore? In addition, could ROK also elaborate 
on the data privacy rules that were relaxed for the financial institutions?  
 
ANSWER : 
This issue is separate from  the three Acts. When processing personal credit information and unique 
identification information on the cloud, the relevant information processing system must be installed 
in Korea in accordance with the Electronic Financial Supervision Regulations.  
Financial institutions can process unique identifiable information or personal credit information using 
cloud computing facilities within Korea under the amended Electronic Financial Supervision 
regulation in 2018.  
 
Page 176 (Para 4.206)  
5. "The Korea Internet and Security Agency (KISA) specializes in promoting Internet and information 
security in the private sector…The National IT Industry Promotion Agency (NIPA) engages in a variety 
of initiatives to raise national competitiveness and secure growth en gines for the future by promoting 
increased use of, inter alia, … cloud computing in conventional industries." Could ROK elaborate on 
the policies to promote cloud computing adoption, for both domestic and foreign cloud service 
providers, and if there are plans to promote interoperability between ROK's domestic Cloud Security 
Assurance Program (CSAP) certification for public sector procurement with similar certifications 
abroad?  
 
ANSWER : 
The government has prepared the "Third Masterplan for Cloud Computing" (September 2021) and 
is promoting cloud market expansion and industrial revitalization by facilitating cloud transformation 
in the public and industrial sectors and fostering related ec osystems. In the public sector, the 
government is fostering the creation of an  environment where the public sector can use a cloud 
computing  service by 1) introducing the cloud system in administrative and public information 
systems (by 2025), 2) promoting cloud transformation consulting and cloud utilization projects in 
the public sector, and 3) expanding cloud services (SaaS) available in th e public sector. In the private 
sector, the government is working 1) to expand the supply of competitive cloud services by 
facilitating SaaS transformation in the  software industry, and 2) to increase the demand for cloud 
service industry by promoting the use of cloud services by SMEs. Finally, the government is making 
effort to create an ecosystem for the cloud service industry by nurturing related experts  for the 
continued growth of the cloud industry and to provide an institutional  foundation for cloud -based AI 
research and development.  
 
Page 184 (Para 4.252)  
6. What specific measures has ROK put in place to assist the aviation industry during the COVID -19 
pandemic, and what are the criteria and processes for determining the type and amount of assistance 
offered?  
 
ANSWER : 
Since the first Korea -ASEAN aviation talks were held in 2012, a total of four consultations have 
reached a large part of the agreement between the two sides, and only additional consultations are 
left on the scope of aviation liberalizat ion. In this regard, the 5th working -level meeting was 
scheduled to be held in the first half of 2019, but it has been temporarily postponed to 
December  2021 due to the influence of COVID -19. 
 
Page 184 (Para 4.253)  
7. We note that ROK's  aviation policy aims to "expand the number of cities and international routes 
to make Korea the largest air transport hub in Asia." Could ROK elaborate on the progress made on 
this front since 2016?  
 
[ANSWER]  
As of 2016, Korea has operated 4,209 regular f lights on 350 routes.  
Korea has steadily pioneered international routes and operated 4,980 regular flights on 378 routes 
in 2019.  
In particular, with the agreement with Brunei and Singapore in 2019, Korea has signed a 3/4 aviation 
liberalization agreement  with all ASEAN countries except Indonesia, and is also working to revitalize 
air traffic by signing a final agreement with the EU.  WT/TPR/M/414/Add.1  
 
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  8. We also note that ROK's aviation policy aims to "pursue open skies agreements with the EU and 
ASEAN" and "promote open sk ies agreements with Asian economies". Could ROK share on its 
timeline to pursue further agreements and expansion of Air Services Agreements (ASAs) with ASEAN 
and other Asian countries?  
 
[ANSWER]  
Since the first Korea -ASEAN aviation talks were held in 2012 , a total of four consultations have 
reached a large part of the agreement between the two sides, and only additional consultations are 
left on the scope of aviation liberalization. In this regard, the 5th working -level meeting was 
scheduled to be held in the first half of 2019, but it has been temporarily postponed to 
December  2021 due to the influence of COVID -19. 
 
  WT/TPR/M/414/Add.1  
 
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  SWITZERLAND  
Report by the Secretariat WT/TPR/S/414:  
 
1 ECONOMIC ENVIRONMENT  
1.1 Main Features of the Economy (page 17, paragraph 1.2)  
 
Paragraph 1.2 : The specialization in a few key industries dependent on a few large firms increasingly 
exposes the economy to domestic and external shocks. As Korea is highly integrated in global value 
chains, this situation makes Korea vulnerable to lastin g disruptions in GVCs.  
 
1. Does Korea envisage trade policy measures to mitigate its vulnerabilities to disruptions 
in global value chains?  
 
ANSWER : 
Korea is expanding trade cooperation based on  our manufacturing capabilities and advanced 
technologies in key industries encompassing semiconductors and batteries while seeking to add 
diversity to supply chains through Korea's FTA network  and attraction  of foreign investments.  
 
In addition, the IMF r ecommends nurturing the ongoing recovery with additional fiscal and monetary 
policy accommodation, and solidifying the foundations for a resilient, greener and more inclusive 
medium -term growth.  
 
2. Which additional fiscal and monetary policy accommodation  does Korea foresee?  
 
ANSWER : 
The suggestion of the IMF was proposed in its annual meeting held in Jan. 2021, and the Korean 
fiscal policy has maintained its stimulative stance with two supplementary budget plans 
(1st: KRW 14.9 tril. 2nd: KRW 34.9 tril.). In addition, in terms of the monetary policy, we have put 
efforts in multiple directions such as extending the maturity date of the bank intermediated landing 
support facility to Mar. '22 and raising the limits of aid for small entrepren eurs and so forth. Going 
forward, we will gear towards a full economic recovery while constantly helping the vulnerable group 
which is disproportionately affected in the process of economic recovery.  
 
1.2 Recent economic developments  
1.2.4 Structural poli cies – 1.2.4 Labour market policies (pages 26 and 27, para. 1.18 and 
footnote 53 and para.1.20 and footnote 59)  
 
Para 1.29 and footnote 53  state that dualism drives wage inequality, reduces productivity growth by 
discouraging firm -based training, and has a negative impact on female employment.  
 
3. Considering that Korea's public employment is only 9% of total employment and as 
205,000  non-regular workers in the public sector have received a regular employment 
contract, which other measures or policies does Korea envisage to reduce inequality and 
improve citizens' welfare?  
 
ANSWER : 
With a view to enhance the quality of public service as well as converting non -regular workers to 
regular status in the public sector, and to provide decent jobs to the youth, the Korean government 
aims to create 810,000 public jobs by 2022.As of 2020, it added 97,000 field official jobs highly 
relevant to the people's livelihood, in fire, social welfare, and labor inspections services, and created 
239,000 jobs in childcare, long -term care, and healthcare services, reflecting the growing demand 
for social services.  Meanwhile , the government offers incentives to encourage the private sector to 
convert non -regular workers to regular status. It regulates that a fixed -term employee who is hired 
for more than two years by an employer would be deemed as an employee on a non -fixed term 
employment contract of the employer by the law to prevent the abuse of the fixed -term contract. It 
also operates the correction system to redress unreasonable discrimination against non -regular 
workers and executes regular labo r inspections. Moreover, it subsidizes part of the labor costs of the 
employees whose status is changed to regular from non -regular for up to one year to promote 
private companies to improve the employment structure and grants tax credits to SMEs who provi de 
regular employment contracts to non -regular workers.  
 WT/TPR/M/414/Add.1  
 
- 190 - 
 
  As new types of employment significantly emerge due to the Fourth Industrial Revolution, and major 
economic crises unfold after the COVID -19 outbreak, Korea faces a growing demand from the public 
to strengthen employment insurance to protect those who are not covered by the system including 
the dependent self -employed. In response, the government has worked to establish a multi -layered 
employment safety net which covers all working citizens in the emp loyment insurance and protect 
those who newly enter the labor market including the low -income groups and young people through 
the National Employment Support Program, the Korean unemployment assistance scheme. In 
December 2020, it announced the Roadmap for  a Universal Employment Insurance of which purpose 
is to establish an employment insurance system that gradually covers all workers and to reform the 
system based on income data rather than employment status including working conditions by 2025.  
 
Para.1.2 0 and footnote 59 : Korea has undertaken some measures to encourage the participation of 
women in the labour market. However, Korea's female labour force participation is one of the lowest 
in advanced economies. Numerous studies and researches underline the  benefits of women 
participation in the economy. Korea is not yet a participant to the Buenos Aires Joint Declaration on 
Trade and Women's Economic Empowerment.  
 
4. Given the benefits of the SDG nb. 5 regarding economic growth does Korea foresee to 
become a member of the Informal Working Group on Trade and Gender?  
 
ANSWER : 
Korea is already a member of the Informal Working Group on Trade and Gender.  
 
2 TRADE AND INVESTMENT REGIMES  
2.4 Trade laws and regulations  
2.4.1 Regulatory framework (page 38 – paragraph 2.16)  
 
Paragraph 2.16  : Regulatory sandboxes were introduced at the beginning of 2019 and refer to live 
testing of new products or services in a controlled regulatory environment, so that regulators may 
relax certain regulatory requirements to conduct the test.  
 
5. Are these "regulatory sandboxes" limited in tim e?  
 
ANSWER : 
In the case of the Industrial Convergence Regulatory Sandbox, two regulatory exception cases are 
in operation. It is divided into "Regulatory Exceptions for Demonstration" referred to as "live tests" 
abroad and "Temporary Permission" which gives permission fi rst before deregulation, and each has 
an initial two -year validity period. Companies that want to apply for Industrial Convergence 
Regulatory Sandbox can apply through the website ( http://www.sandbox.kiat.or.kr/ ) all year round.  
 
6. How long does a live testing last, usually?  
 
ANSWER : 
As mentioned above, both Regulatory Exceptions for Demonstration and Temporary Permission have 
a two -year validity period. In the case of Regulatory Exceptions for Demonstration, it is possible to 
apply for an additiona l two-year extension before the end of the period to reduce the anxiety of 
companies and improve business stability.  
In addition, if the regulations are not amended within the validity period, the law stipulates that the 
business operator can apply for the  revision of the regulatory laws. In particular, in the case of 
Temporary Permission, the validity period is considered to have been extended until the revision of 
the law is completed. Therefore, companies using the Industrial Convergence Regulatory Sandb ox 
can stably operate their projects.  
 
2.4.2 Trade -related legislation (page 39 – paragraph 2.21 and 2.22)  
 
Paragraph 2.21 : The Customs Act, which is one of the main legislation on international trade, was 
recently amended in 2020.  
 
7. What are the main reforms of this act?  
 WT/TPR/M/414/Add.1  
 
- 191 - 
 
  ANSWER : 
The main purpose of the amendment was to enhance public understanding and the protection of 
rights,and to apply the same tariff to all automatic flow regulators used in semiconductor 
manufacturing regardless of their operating method. In this regard, the tariff rate on automatic gas 
flow regulators for manufacturing semicunductors was reducedfrom 8% to 3%.  
 
Paragraph 2.22 : The main legislation on investment, the Foreign Investment Promotion Act, was 
recently amended in 2020.  
 
8. What are the main reforms of the Foreign Investment Promotion Act?  
 
ANSWER : 
In order to promote the reinvestment of foreign -invested companies in Korea, foreign -invested 
companies are recognized as foreign investment if they invest in the establishment or expansion of 
factory facilities. In addition, incentives for high -tech investments were expanded by adding new 
factory facilities to manage high -tech and high -tech product businesses under the Industrial 
Development Act.  
 
2.5 Trade agreements and arrangements  
2.5.2 Regional and preferential agreements (page 43 to 45) as well as section 4.2 of the 
Government report  
 
Section 2.5.2 of the Secretariat Report and section 4.2 of the Government Report : During the period 
under review, Korea signed a number of new regional and preferential agreements. In its report, 
the Korean Government expresses the ambit ion to strive for comprehensive and high standard FTAs.  
 
9. What is Korea's policy with respect to the review and modernization of free trade 
agreements that entered into force some time ago?  
 
ANSWER : 
Various aspects such as the need for reflecting  changes in the  global trading environment and 
relevant rules, the overall balance of interest in the amendment packages, and demands from the 
business sector are taken into consideration in a comprehensive vi ew. 
 
3 TRADE POLICIES AND PRACTICES B Y MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements - 3.1.1.2 Customs valuation 
(page  – para. 3.20)  
 
Para 3.20:  According to paragraph 3.20, the Customs may determine the valuation of second -hand 
imports using " reasonable standards ", whereby prices paid are adjusted based on appraised prices 
from certified appraisal institutes, domestic wholesale prices, or other r ecognized price lists.  
 
10. Could Korea elaborate on what are these "reasonable standards"?  
 
ANSWER : 
The "reasonable standards" under the ENFORCEMENT DECREE OF THE CUSTOMS ACT Article 29 are 
used to decide customs value based on available domestic inform ation and the methods described 
in the Article. As for second -hand imports, the available domestic information includes: 
appraisement of the merchandise by certified appraisal institutes, deductive value for domestic 
merchandise, and deducting the deprecia tion value from the price at the time of import 
(ENFORCEMENT REGULATION OF THE CUSTOMS ACT article 7.5).  
 
11. Could Korea specify who are the certified appraisal institutes?  
 
ANSWER : 
The conditions or specifically certified appraisal institutes are not stated in the CUSTOMS ACT. 
Appraisal institutes are designated case -by-case depending on the type of the imported goods and 
which law they are concerned with (e.g. HARBOR TRANSPORT BUSIN ESS ACT for ships).  
 
12. Could Korea elaborate on the " other recognized price lists "? Who does establish the 
said lists? What are the criteria retained? Who is in charge of controlling these lists?  WT/TPR/M/414/Add.1  
 
- 192 - 
 
  ANSWER : 
There are no official legislative "other recognized price lists" for determining the value of used goods. 
Apart from the deductive value and depreciation for domestic merchandise, for either new or used 
goods imported from abroad, its value is determined by several methods, including deducting th e 
depreciation value from the price declared at the time of import, based on the item's service life 
under the CORPORATE TAX ACT.  
 
3.1.3 Tariffs  
3.1.3.1 Applied tariffs (page 61 – para. 3.33)  
 
Para 3.33 : According to paragraph 3.33 there are some 129 diffe rent rates (88 ad valorem  duties 
and 41 alternate duties) of which about 39 ad valorem  tariffs involve decimal rates.  
 
13. Does Korea consider the advantages of streamlining its tariff by reducing the large 
number of different rates and removing at least the decimal rates?  
 
ANSWER : 
Currently, Korea does not consider reducing the number of different rates and removing the decimal 
rates. But a number of many FTAs and multilateral trade agreements in which Korea participated 
are having the effect of low ering the tariff rates.  
 
14. If this is not the case, what are the reasons not to do so?  
 
ANSWER : 
Korea has implemented the tariff concession precisely, without delay, according to the WTO 
agreement such as the ITA Expansion.  
 
3.1.3.3 "Flexible" tariffs (page 66 – para. 3.39)  
Adjustment duties  
 
Para. 3.39  : Para.3.39 states that the adjustment duties are set annually by the MOEF in accordance 
with the request from the relevant government authorities.  
 
15. Could Korea indicate when the adjustment duties are modified and where are the new 
rates published?  
 
ANSWER : 
Adjustment tariffs are announced in the official gazette or website and are implemented on January 
1 every year.  
 
16. Does Korea notify the WTO about the changes?  
 
ANSWER : 
In order to notify WTO, we submit WTO IDB which includes MFN applied tariff rate by reflecting the 
adjustment duties in March of each year.  
 
3.1.3.7 Tariff preferences (page 68, para. 3.49, footnote 53)  
 
Para 3.49:  According to paragraph 3.35 the Government of Korea continues to use " adjustment 
tariffs " according to a schedule published at the start of each year to manage imports of specific 
items largely to prevent dumping and protect domestic producers.  
 
17. As the link referred to in footnote 53 is not working, could Korea provide the 
relevant information?  
 
ANSWER : 
That link ( https://country.eiu.com/FileHandler.ashx?issue_id=1090089892&mode=pdf ) does work.  
 WT/TPR/M/414/Add.1  
 
- 193 - 
 
  3.2 Measures Directly Affecting Exports  
3.2.3 Export pr ohibitions, restrictions, and licensing – 3.2.3.1 Prohibitions (page 77, 
paragraph 3.77)  
Para 3.77 . In response to domestic needs related to the global outbreak of COVID -19 pandemic, 
Korea introduced a temporary export ban (entirely lifted on 23 October 2020) on surgical and 
sanitary masks, filtering respirators and melt blown filters in accordance with Article XI:2(a) and 
Article XX(b) of the GATT.106 These prohibitions were initially imposed for the period from 6 March 
to 31 May 2020 to prevent a critical shortage of PPE; they were lifted as of 23 October 2020. As 
production volume increased, the prohibition was gradually replaced by a prohibition except under 
defined conditions. As of 18 June 2020, Korea lifted the restriction on filtering respi rator producers 
and those who have concluded contracts with the producers for the purpose of exportation and 
allowed to export up to 30% of the total daily production volume of filtering respirators. Later this 
measure was revised and, as of 12 July 2020, filtering respirators were allowed for exportation on 
the condition that producers' monthly export volume does not exceed 50% of the monthly average 
production volume of the domestic filtering respirators in the last two months, unless it is for 
government -approved humanitarian purposes. Similarly, with the stabilization of mask supply, 
exports of surgical and anti -droplet masks were allowed on identical conditions as of 
15 September  2020.  
 
According to paragraph 3.77, several temporary export bans were in place due to the global outbreak 
of COVID -19 pandemic. As production increased, the prohibitions were gradually replaced by a 
prohibition except under defined conditions, i.e. exports were allowed only up to a certain percentage 
of domestic production.  
 
18. Could Korea indicate whether these conditional export prohibitions are still in place, 
for which products and until when they will apply?  
 
ANSWER : 
Export prohibition on melt blown filters has been abolished as of 23 October 2020, and currently no 
regulation exists on melt blown filters.  
 
3.3.4 Competition policy and price controls  
3.3.4.1 Competition policy – 3.3.4.1.1 Policy, institutional, and regulatory framework 
(pages 106 and 108 – paragraphs 3.181, 3.182 and 3.186)  
 
Para. 3.181 : The KFTC , is responsible for formulating competition policies and investigating cases.  
 
19. Is the majority of the investigations initiated upon a complaint or a denunciation, or 
are they self -initiated?  
 
ANSWER : 
In 2020, the number of investigations was 2,141 in total, consisting of 1,214 cases initiated upon a 
complaint (56.7%) and 927 ex officio ones (43.3%). (Refer to KFTC Statistical Yearbook of 2020)  
 
Para 3.182 : We understand that the main competition legisl ation is the Monopoly Regulation and 
Fair Trade Act (MRFTA).  
 
20. Are there sector -specific regulations?  
 
ANSWER : 
We are not in charge of sector -specific regulations.  
 
21. Do these regulations contain exceptions to the provisions of the MRFTA?  
 
ANSWER : 
Our main competition legislation is the MRFTA, and each industry authority is in charge of sector -
specific regulations  
 
Para. 3.186  states that enterprises are market -dominant if their market -share is at least 50%. 
This threshold seems to be rather high, especially with regard to companies with small market 
shares and very low competitive pressure.  
 WT/TPR/M/414/Add.1  
 
- 194 - 
 
  22. For which reason is the concep t of relative market power omitted?  
 
ANSWER : 
We do not always define enterprises with market share of 50% or more as market dominant. The 
law also stipulates that enterprises can be seen as market dominant when the top 3 enterprises' 
combined market share reaches 75%, with the exception for enterprises with less than 10% market 
share. Please refer to Para. 3.186 which states these details.  
 
3.3.4.1 Competition policy – 3.3.4.1.3 Enforcement (page 111, paragraph 3.197  
 
Para. 3.197 highlights that 702 c ompanies were participating in the Compliance Programme (CP), 
which promotes compliance with the MRFTA. It could seem that the time -limited immunity from 
investigations is counter -productive, as it may incentivize grade A corporations to act in an 
anti-competitive way.  
 
23. Has this concern been taken into account in the determination of the time period of 
immunity?  
 
ANSWER : 
The CP program grants 1 -2 year immunity from ex officio investigation to corporations with grade A 
or higher. However that does not mean they are also immune to investigation triggered by reports. 
They are subject to ex officio investigation when they obvi ously violated laws as well.  
 
3.3.5 State trading, state -owned enterprises, and privatization – 3.3.5.2 State 
involvement in the economy and privatization (page 116 – paragraphs 3.212 and 3.213)  
 
Para. 3.212  mentions that apart from providing basic goods and services, some public institutions 
provide R&D services.  
 
24. Is this limited to universities or are there any other public institutions active in R&D?  
 
ANSWER : 
In addition to universities, there are a  number of public institutions established to provide R&D 
services. As of 2021, 74 out of 350 public institutions were classified as R&D -purpose institutions  
 
25. Are there any reports analyzing possible crowding -out effects of such activities?  
 
ANSWER : 
It has not been confirmed whether there is a reports analyzing crowding -out effects related to R&D 
activities in public institutions.  
 
In addition, para. 3.212 states that 339 institutions are designated as public institutions.  
 
26. Are there any governmental ownership strategies in place, which define principles for 
corporate governance and complement the existing laws?  
 
ANSWER : 
Act on the Management of Public Institutions(AMPI) contains basic principles for operation of public 
institutions. The principles are specified in sub -guidelines.  
 
Para. 3.213  states that the privatization of Woori Financial Group has been halted due to the 
COVID-19 pandemic.  
 
27. Does the Republic of Korea plan to continue the privatization of Woori Financial Group 
in the near future?  
 
ANSWER : 
The Korean Government, owning 15.13% shares of Woori Financial Holding, is proceeding with a bid 
to sell approximately 10% of its shares and endeavors  to accomplish the Plan to dispose all residual 
by 2022.  
 WT/TPR/M/414/Add.1  
 
- 195 - 
 
  28. What are the reasons for the decision to pri vatize the company and are there any plans 
to privatize other state owned institutions?  
 
ANSWER : 
The Government has been temporarily holding shares of Woori Financial Holding due to the capital 
injection to normalize management of Woori Bank, triggered by financial crisis happened in the late 
1990's. The plan to recover the public funds by the resale of acquired shares is currently in the 
process, which is different with the privatization scheme of public entities in general.  
 
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture  
4.1.2 Policy, institutional, and regulatory developments - 4.1.2.3 WTO notifications 
(pages  145-146, paragraphs 4.43 -4.45)  
 
According to para. 4.4 3, the Republic of Korea currently grants its agriculture sector an exemption 
from different kinds of taxes for oil fuels used in agricultural machines. Additionally, farmers "benefit 
from zero or low irrigation water fees" ( para 4.45 ). Both of these measures may prevent 
transformations towards a more eco -friendly and environmentally sustainable agriculture.  
 
29. Can Korea please explain what efforts are being undertak en in the area of agriculture 
in order to enhance transformation towards a more sustainable agriculture?  
 
ANSWER : 
While responding to international dialogues on climate change and achieving UN SDGs, the Republic 
of Korea is implementing its domestic agricultural policies. In 2020, Korea introduced a direct 
payment scheme which takes account of the environment, and in September 2021, it established a 
mid- and long -term plan that contains production and consumption of food that can be harmonize d 
with environment. We are also expecting to establish a plan for carbon neutral agriculture within 
this year.  
As per the tax exemption for oil fuels used for agricultural machines (para 4.43) and the beneficial 
supply of irrigation water for farmers (para  4.45), the farming environment and historical situation 
of Korean agriculture are reflected. With the focus on sustainable agriculture, Korea is implementing 
various policies that consider environment, such as environment -friendly agriculture  practices, 
integrated crop -livestock farming systems, efficient paddy field irrigation techniques.  
 
4.3 Mining and energy  
4.3.2 Energy – 4.3.2.1 Main features (page 154 - paragraphs 4.76 and 4.79)  
 
According to para. 4.76 and 4.79 , Korea relies heavily on fossil fuel , is an energy -intensive nation 
and has been providing fossil fuel subsidies to the energy sector.  
 
30. Does Korea intend to reduce its fossil fuels' consumption and subsidies in the long 
term?  
 
[ANSWER]  
Korea intends to reduce its fossil fuels' consumption in the energy sector, especially coal -fired power 
generation, and gradually phase out fossil fuel subsidies in the long term.  
 
4.3.2 Energy – 4.3.2.6 New and renewable energy (page 160 – paragraph 4.121)  
 
According to  para. 4.121  Korea is commi tted to increasing the share of renewables in power 
generation to 20% by 2030 and to 30% -35% by 2040.  
 
31. As the August 2021 report of the Intergovernmental panel on climate change states 
that there are irrefutable evidence that greenhouse gas emissions a re choking the planet 
and that global warming is affecting every region on Earth, will Korea review its targets 
and accelerate the path of the transition to renewable energy sources?  
 
ANSWER : 
In November 2020, Korea declared a vision to achieve carbon neutrality in 2050, and is currently 
preparing a scenario to achieve the vision by establishing a carbon neutrality committee. Through WT/TPR/M/414/Add.1  
 
- 196 - 
 
  public discussions in the future, Korean Government plans to announce the responsible and feasible 
renewable energy targets for carbon neutrality.  
 
4.4 Manufacturing  
4.4.2 Automotive (page 164 – paragraph 4.141)  
 
As Korea is the world's 7th largest automobile producer, Switzerland is pleased that Korea has been 
facilitating the development of eco -friendly cars by providing tax incentives (para 4.141).  
 
32. With regard to eco -friendly cars, how Korea assesses the environmental benefits of 
the vehicles they subsidize?  
 
ANSWER : 
Ministry of Environment does not provide subsidies for internal combustion engine vehicles, including 
HEVs, and only provides subsidies for Zero -Emission -vehicles such as EVs and FCEVs that do not 
emit greenhouse gases and air pollutants.According to a related study, if an EV is operated instead 
of an internal combustion engine vehicle for 10 years, the environmental cost reduction effect is 
analyzed to be about KRW  2.9 million.  
  WT/TPR/M/414/Add.1  
 
- 197 - 
 
  CHINESE TAIPEI  
Question 1:  
 
The Ministry of Trade, Industry and Energy of Korea announced on May 12 the "Inspection of the 
flow of imports and exports and response plans." Relevant ministries have also launched an 
emergency response team, which will actively exchange opinions with relevant enterprises and try 
to help resolve the problems that export companies and export logistics have faced. The main 
contents of the response plan initiated by the Korean government are as follows: (1) Cooperate with 
international shipping companies to actively expand sea and air shipping routes between the 
Americas and Europe. (2) Strengthen provisions for dedicated shipping space and support freight 
costs for small and medium -sized enterprises and backbone enterprises.  (3) Assist in solving the 
problem of port and airport logistics accumulation and guarantee the number of containers.  
 
Would the Republic of Korea  please elaborate and give specific details about the content for item 2 
mentioned above?  
 
ANSWER : 
Our exporte rs have been suffering from the global shortage of shipping containers. The shipping cri
sis has been worsening the situation especially for SMEs who are navigating their business in the w
ake of the COVID -19pandemic. To address such situations, the Governme nt and related organizati
ons have established a cooperative system, and make efforts to seek temporary solutions( 기존 : pr
ovide temporary assistance) for SMEs including a certain amount of freight space and logistics serv
ices which allows companies to obtain  needed services from registered organizations.  
 
Question 2:  
Could the Republic of Korea further elaborate on its trade policy objectives and specific priority 
sectors?  
 
ANSWER : 
More detailed information can be found in Chapter 4 (Trade and Investment Policy) in the policy 
statement by the Republic  of Korea.  
 
Question 3:  
According to the "checking import and export logistics trends and countermeasures" announced by 
the Ministry of  Trade, Industry and Energy on May 12, 20212, the Korean government would increase 
subsidies to SMEs aiming at offsetting surging freight costs to 12.1 billion KRW. As we understand, 
the Korean government began providing this subsidy in the second half of  2020 in response to the 
impact of the COVID -19 pandemic on exports.  
 
1. Can the Republic of Korea explain whether the aforementioned freight subsidy program is a 
temporary measure? If so, when will it be terminated?  
2. Furthermore, could the Republic of Korea e xplain why this subsidy program was not included 
in its 2021 subsidy notification to the SCM Committee (G/SCM/N/372/KOR), and whether this 
subsidy program is contingent upon export performance?  
 
ANSWER : 
The Program is not a subsidy program as the eligibili ty is not contingent upon export performances 
of enterprises, and does not favour certain SMEs over others  
 
Since the program is not a subsidy program, it was not included in its 2021 subsidy notification to 
the SCM Committee, and this program is not contingent upon export performance.  
 
Question 4:  
The amendment to the Unfair Competition Prevention and Trade Sec rets Protection Act in 2019 has 
broadened the definition of the term "trade secret." The "reasonable effort" requirement on trade 
secrets protection has been replaced by the amended provision "managed as a secret." How does 
 
2 Viewed at: 
http://www.motie.go.kr/motie/ne/presse/press2/bbs/bbsView.do?bbs_seq_n=164093&bbs_cd_n=81&currentP
age=461&search_key_n=title_v&cate_n=&dept_v=&search_val_v . 
 WT/TPR/M/414/Add.1  
 
- 198 - 
 
  the court determine the said req uirement in practice? Particularly, what extent of "effort," if any, 
would be needed to meet the requirement of "managed as a secret"? Could the Republic of Korea 
kindly share examples of relevant practical cases?  
 
ANSWER : 
A revised law is applied starting  from the first case after the amendment goes into effect, therefore 
it is difficult to clearly answer about the court's criteria because there is yet to be many precedents.  
  WT/TPR/M/414/Add.1  
 
- 199 - 
 
  THAILAND  
WT/TPR/G/414  
Para 3.6  
Page 6  
 
Questions  1 
Does the Korean Government have a policy to attract foreign experts / professionals to the workforce 
in Korea in order to foster digital skills? What are the talents / skillsets that Korean Government 
recognizes as the essential ones after COVID -19 pandemic?  
 
ANSWER : 
The Ministry of Science and ICT has been operating the Brain Pool+ project since last year with a 
goal to attract world -class researchers in the field of emerging industries such as artificial intelligence 
and big data to Korea. Demand for talent with digital skills has soared in all industries due to digital 
transformation and accelerated growth of the contactless economy since the COVID -19 pandemic 
began. In particular, efforts are being made to cultivate world -class, high -quality professionals in 
the field o f artificial intelligence and software, and to support fostering multi -talented professionals 
that can apply artificial intelligence and software technologies to each industry. As there is a growing 
demand from the industry for talented workforce with both  technical prowess and capability to carry 
out projects, support is provided to  offer advanced courses (regular and non -regular courses).  
 
To attract foreign experts / professionals  from industry fields including digital sector, foreign 
experts/technicians  entering Korea are given D -8 enterprise investment visa. In addition, these 
foreign workforce are provided with income tax reduction for 5 years.  
 
WT/TPR/G/414  
Para 3.7  
Page 6  
 
Questions  2 
Could Korea provide more details on the criteria for the eligibility of projects of Rice Income 
Compensation Scheme under the New Direct Payment Program and the budget for the said program?  
 
ANSWER : 
Farmers who meet  the requirements under the Act on Implementation of the Direct Payment 
Program for Agriculture are eligible for the new direct payment program which is decoupled from 
commodity production.  
The eligibility criteria is as follows:  
 
(1) farmland used for rice farming from 1998 to 2000, or farmland used for dry farming 
from 2012 to 2014; and  
(2) those who have received direct payment once or more during the period of 2016 to 
2019, or who meet the requirement for agricultural business successors or full -time farmers 
may receive the direct payment.  
The budget plan for the new direct payment program in 2021 is KRW 2,360 billion.  
 
WT/TPR/G/414  
Para 3.13  
Page 7  
 
Questions  3 
With regard to "Manufacturing Renaissance Vision and Strategy" announced by Korean Govern ment 
in June 2019 to strengthen the industrial development as well as innovation, Thailand would like to 
seek clarification on the details relating to plans, measures, lesson learned, and experiences under 
the aforesaid vision and strategy.  
 
ANSWER : 
Korean Government announced 'Manufacturing  Renaissance Vision and Strategy ' in June, 2019 and 
declared ambitious goal to be the renowned major manufacturing powerhouse. The Strategy 
contains policies with respect to structural  innovation of industry, growt h of emerging new industries, 
and establishment of industrial ecosystem. To promote innovation, Korean government implemented WT/TPR/M/414/Add.1  
 
- 200 - 
 
  policies such as building smart industrial complex and promoting companies to manufacture 
eco-friendly commodities. To grow emergi ng industries including semiconductor industry, future 
mobility industry and bio -tech industry, the government implemented standardization policies and 
set incentives for private companies to enhance their investment with regard to emerging industries. 
To establish ecosystem, Korean government enhanced educational opportunities for both workers 
and students, while promoting challenging R&D. It seems that Korea has successfully  built strong 
manufacturing base with those policies, and it led Korea to provide qualified stable jobs for workers 
and good foundation for production, which worked as a strong engine for Korea to perform better 
than other countries under the COVID -19 crisis.  
 
WT/TPR/G/414  
Para 3.14  
Page 7  
 
Questions  4 
How the Act on Digital Transformation of the Industries, including relevant working groups to be 
established, will affect the existing and the upcoming foreign investments?  
 
ANSWER : 
According to current legal regime, foreign enterprises are treated in the same  manner . 
 
WT/TPR/G/414  
Para 3.17  
Page 7  
 
Questions  5 
Please provide further details relating to the necessary standards being developed by Korea in 
different sectors, such as electric vehicles and non -memory semi -conductor, to support the 
development of new services, enhance quality, and strengthen safety in the era of the 4th industrial 
revolution, including the principles and guidelines for developing such standards, differen ces 
between the developing standards and the existing international standards, and how Korea ensure 
that these standards will not be too burdensome for manufacturers or create unnecessary barriers 
to trade.  
 
ANSWER : 
KATS tries to link research and developm ent results in the 4th industry division to standards, and 
standardizes performance requirements and test methods. We contribute to the promotion of 
international standardization in the 4th industry by actively suggesting the results as international 
stand ards such as ISO and IEC.  
In addition, we are developing standards to reflect the demands of the industry, and the developed 
standard s are to  be harmonized with international standards.  
 
WT/TPR/G/414  
Para 4.13  
Page 9 -10 
 
Questions  6  
Please enquire more about the Republic of Korea's cooperation under the framework of Asia -Pacific 
Economic Cooperation (APEC) in view that Thailand will host APEC meeting in 2022  
 
ANSWER : 
As a member of APEC, Korea has worked for strong, balanced, inclusive, sustainable, innovative and 
secure economic growth with Thailand. Korea will continue to collaborate to  recover from the COVID -
19 pandemic shock, and facilitate tourism, the movement of  goods and services, and investment 
which are Thailand's main interests. Through  these coordinated  actions, Korea and Thailand will 
contribute to prosperity of APEC region. In addition, Korea looks forward to cooperating with  Thailand 
for the successful AP EC meeting in 2022.  
 WT/TPR/M/414/Add.1  
 
- 201 - 
 
  WT/TPR/G/414  
Para 4.2.1  
Page 11 -12 
 
Question  7 
Please elaborate more on other trading partners that Korea plans to discuss for bilateral and regional 
FTAs in the pipeline.  
 
[ANSWER]  
When reviewing the candidates for a possible FTA, the Government take into consideration both 
external and internal factors of the country in a comprehensive manner.  
 
WT/TPR/G/414  
Para 4.35  
Page 12  
 
Question  8 
Please enquire more information on the establ ishment of a pan -government cooperation system by 
the Government of the Republic of Korea to resolve trade crisis caused by the COVID -19 pandemic.  
 
[ANSWER]  
As COVID -19 spreads around the world, many business people and exporting companies in Korea 
have been suffering difficulties due to restrictions on cross -border movement and global logistics 
difficulties. Against these backdrops, the Korean Government esta blished the Business Travel 
Support Center(BTSC) in October 2020 and the Export -Import Logistics Support Center in December 
2020 whose staff are composed of people from the relevant ministries, related organizations and 
industrial sectors. While operating these Centers, the Government streamlined and expedited the 
quarantine exemption approval to business people; and it has collected difficulties from exporting 
companies and tried to provide COVID -19 related support for them.  
 
WT/TPR/G/414  
Para 4.39  
Page 1 3 
 
Questions  9 
How the Covid -19 pandemic posed the impact on the changes of Korean Government's focus on 
encouraging investment in high value -added sectors? Especially the services sector, does the 
Government incorporate new service sectors into the priori ty service sectors or add value to the 
aforementioned sector?  
 
ANSWER : 
Enlarging the proportion of investments from high value -added sectors was Korean Government 's 
policy vision even before Covid -19 pandemic, though it did act as a trigger for the government to 
concentrate/focus more on the quality -side of inward FDI performance, since during the pandemic, 
global FDI dropped sharply and there clearly were limits to  enlarging the FDI volume itself.  
 
WT/TPR/G/414  
Para 4.41  
Page 13  
 
Questions  10 
Taking into account such factors (market competitiveness by investors, their presence at home, and 
possibility of attracting domestic investment), how would the Government's specific policies / 
measures be adopted? E.g. maintaining market competition via measures relating to market share 
/ share of capital, measures relating to local presence, specific measures to attract domestic 
investment.  
 
ANSWER : 
The factors mentioned are considered in the process of IR activities, rather than providing incentives 
or taking policy measures. In detail, the firms are scored & ranked according to the factors 
mentioned, and are given different IR priorities, and managed via databa se. 
KOTRA will try to focus their IR capabilities/resources on high -priority -firms on the database, which WT/TPR/M/414/Add.1  
 
- 202 - 
 
  will, in result, receive more frequent contacts.  
 
WT/TPR/S/414  
Para 2.76, 2.74, 4.166, 4.172  
Page 48, 169 and 170  
 
Questions  11 
To enable getting cre dit more inclusive, how does the Korean Government formulate its policy / take 
a view on new financial services e.g. peer -to-peer lending, crowdfunding, especially in respect of 
liberalisation of market access to foreign service providers? Do foreign servi ce suppliers intending 
to provide new financial services especially those of Mode 1, have to seek approval from the Financial 
Services Commission (FSC) and / or comply with measures on data regulations?  
 
ANSWER : 
Korea guarantee national treatment and marke t access to foreign service providers.  
Pursuant to FTAs signed by Korea, the financial authorities can determine the institutional and 
juridical form through which the new financial service may be supplied and may require authorization 
for the supply of th e service.  
Service suppliers intending to operate financial business in Korea should register or be permitted 
subject to relevant regulations. Also, they are required to comply with local regulations.  
 
WT/TPR/S/414  
Para 3.39  
Page 66  
 
Questions  12 
Could Korea please elaborate on the criteria used in considering which products are applicable for 
the adjustment duties? Does Korea have a general timeframe for the application of adjustment 
duties? If not, please explain how Korea determine the time peri od in applying adjustment duty for 
a given product.  
 
ANSWER : 
The adjustment duties may be assessed, inter alia, in the following cases:  
- Where necessary to adjust widely unbalanced tariff rates among goods resulting from changes, 
etc., in the industrial structure;  
- Where necessary to protect public morality and the life and health of humans, animals and plants, 
preserve the environment,  conserve limited natural resources, and to assure international peace, 
security, etc.;  
- Where there exist risks for the domestic market or the domestic industrial foundation to be 
undermined by an increase in the import of goods including agricultural, forest and livestock products, 
whose international competitiveness is weak, hence making it necessary to correct or prevent them 
from such risks.  
And the assessment of adjustment duties is reviewed on annual basis.  
 
WT/TPR/S/414  
Para 3.243  
Page 127  
 
Questi ons 13 
Please provide detail of the speedy patent screening/ examination for Green technology. How is it 
different from the normal patent examination?  
 
ANSWER : 
A patent application directly related to green technology and financed or certified by the government, 
etc., are eligible for expedited examination. In general, green technology refers to technology which 
minimizes the emission of greenhouse gases and pollutants by saving energy and resources and 
making use of them efficiently throughout the who le process of social and economic activities, such 
as technologies related to reducing greenhouse gas emissions, raising the efficiency of energy 
utilization, pollution -free production, clean energy, recycling resources, and eco -friendliness 
(including rel ated convergence technology).  
 WT/TPR/M/414/Add.1  
 
- 203 - 
 
  In order to request expedited examination for patent applications under the reason of green 
technology, a person intending to request expedited examination shall attach one original copy of a 
Written Explanation of Request fo r Expedited Examination, which explains on what ground the 
claimed invention constitutes green technology, to a Written Request for Expedited Examination and 
pay a fee for requesting expedited examination.  
If any irregularities are found out during Formali ties examination such as non -compliance with the 
statutory formalities, unpaid fees, etc., amendment shall be ordered to the requester of expedited 
examination.  
 
For the applications that have passed Formalities examination, an examiner shall make a decision 
on whether the claimed invention constitutes green technology based on the explanation of the 
requester.  
Where the requester gave no explanation on the claime d invention requested for expedited 
examination on the ground for green technology or where the claimed invention is deemed irrelevant 
to green technology based on the explanation given by the requester, an examiner shall order 
complement a request for exp edited examination.  
Based on complementation, an examiner shall decide whether the application is related to green 
technology and the case for the expedited examination. If complementation is not enough, an 
examiner shall dismiss the request and notify suc h fact to the requester.  
 
The patent application to be decided as the one for expedited examination shall be examined in 
2 months after the decision while the normal applications are expected to be examined in the order 
of request of examination.  
 
Patent a pplications directly related to green technology that have received financial support or 
certification from the state can be reviewed first.  
 
Invention under the accelerated examination system will start to be examined within two months, 
whereas the gener al examination will start in the order of filing an application which takes an average 
of 11.2 months to begin.  
  WT/TPR/M/414/Add.1  
 
- 204 - 
 
  THAILAND – ADDITIONAL QUESTIONS  
Document: WT/TPR/S/414 Paragraph: 3.179 Page: 106  
 
Question  
As the attachments of the Republic of Korea's SPS Notifications are mostly written in Korean and 
referring to Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement), 
Annex B, paragraph 8 states that "developed country Members s hall, if requested by other Members, 
provide copies of the documents or, in case of voluminous documents, summaries of the documents 
covered by a specific notification in English, French or Spanish." , Thailand would like to request the 
Republic of Korea to  consider providing the attachments of the country's SPS notifications in English, 
which will, in turn, facilitate other WTO member countries to comply with the Republic of Korea's 
SPS regulations.  
 
[Answer]  
In accordance with the WTO SPS Agreement, Korea provides specific notifications in English, and if 
any document is attached to the notification, the attachment is provided in Korea, to prevent the 
misinterpretation of the content.  
However, if the partner country has inquiries on the content of the docum ent attached to the 
notification within the period allowed for comments, the answer is provided in English.  
  WT/TPR/M/414/Add.1  
 
- 205 - 
 
  TURKEY  
THE GOVERNMENT REPORT (WT/TPR/G/414)  
 
3 Economic Policy, 3.2 Policies to Respond to the COVID -19 Pandemic: Korean New Deal, 
pg. 5, 3.2  
 
It is stated in The Government Report that "In late 2019, the unprecedented outbreak of COVID -19 
caused a global economic recession and transformational changes to the economic and social 
system. Against this backdrop, Korea announced the "Korean New Deal"  policy in July 2020, as a 
vision to address the global crisis and be fully prepared for the post -COVID -19 era. The initiative is 
built upon the three pillars of "Digital New Deal," "Green New Deal," and "Human New Deal." "  
 
Question 1:  Will the Korean New  Deal have an adverse effect on imports. Will it promote production 
in Korea?  
 
[Answer]  
There has been no analysis on the effect of the Korean New Deal on imports or production.  
 
3 Economic Policy, Green New Deal, pg. 6, 3.5  
 
It is stated in the Government  Report that "Environmental conservation and sustainability have 
assumed a renewed importance in the wake of the COVID -19 pandemic, highlighting greater need 
for low -carbon and eco -friendly policies. In line with this trend, the Korean government is pushin g 
for a "Green New Deal" with the goal of achieving carbon neutrality by 2050. Key elements of the 
initiative include: laying the groundwork for carbon neutrality, realizing a green transition in urban, 
spatial, life infrastructure, promoting low -carbon en ergy and a distributed energy system, and 
building an ecosystem for innovation of the green industry."  
 
Question 2:  Has an analysis been made to understand the possible effects of Green New Deal on 
Free Trade Agreements? If exists, could the Republic Of Ko rea kindly provide further information 
about these analysis?  
 
[Answer]  
There has not been a government -led research on the impact of Green New Deal on the 
implementation of Korea's bilateral and multilateral trade agreements . Relevant survey or analysis 
would be conducted when the need arises in the future.  
 
3.3.2. Manufactu ring: Becoming a Strong Industrial Powerhouse, pg. 7, 3.14  
 
On page 7 of The Government Report, it is stated that "As part of these efforts, Korea has accelerated 
the shift towards a smarter and greener industry. Korea has built approximately 20,000 smart 
factories and seven smart industrial complexes by 2020 to improve the productivity of the 
manufacturing industry. In addition, Korea has forged working groups for digital transformation in 
future mobility, home appliances, and other industries, in an attem pt to promote the utilization of 
digital technologies throughout different areas of the industrial ecosystem —encompassing 
development, production, and consumption. To provide an institutional framework for these efforts, 
the Korean Government is currently under the process to introduce the Act on Digital Transformation 
of the Industries."  
 
Question 3:  Could the Republic of Korea kindly provide detailed information about their digital new 
deal in terms of cyber security on smart factories and seven smart ind ustrial complexes?  
 
[Answer]  
The Ministry of SMEs and Startups (MSS) have provided a smart factory security guide for SMEs to 
easily utilize the security requirements, classifying them by level and layer so that it can be used 
case by case when building a smart factory.  
 
*Level: Basic, Intermediate1, Intermediate2, Advanced  
*Layer: Layer 0 Field device, Layer 1 Basic control, Layer 2 supervisory control, Layer 3 operations 
management, Layer 4 -5 enterprise biz system . 
 WT/TPR/M/414/Add.1  
 
- 206 - 
 
  4.3 Trade Policies, Digital transition in trade, pg. 12, 4.34  
On page 12 of The Government Report, it is stated that "The Korean Government has developed, 
and has been running, a new service so that consignors and sellers who are engaged in e -commerce 
can go through the entire export  procedures online through the uTradeHub system. The system has 
also been further improved so that people can conduct export -related tasks efficiently. Information 
contained in commerce invoices, packing lists, and other export documents is now read by AI and 
converted into data, which saves effort and time to re -enter the same data during the follow -up 
processes, such as reserving cargos, requesting inland transportation, and making export 
declarations."  
 
Question 4:  Could the Republic of Korea kindly elab orate on the uTradeHub system for the sake of 
conducting export related tasks efficiently?  
 
[Answer]  
The uTradeHub, the national paperless trade platform, was initiated by the Korean government 
under the Electronic Trade Facilitation Act. The 3rd party ent ity owned by Korea International Trade 
Association was designated as an operator of the platform. The uTradeHub provides various B2B 
services related to international trade, logistics, customs and cross -border e -commerce.  
 
THE SECRETARIAT REPORT (WT/TPR/S /414)  
 
4.5.6 Distribution services with a specific focus on e -commerce, E -commerce, pg. 187, 
4.277 On page 187 of the Secretariat Report, it is stated that " E -commerce is mainly regulated 
under the Act on Consumer Protection in Electronic Commerce (Act No . 15141), which was partially 
amended in November 2017. The authorities state that this Act is currently being fully revised, and 
the pre -announcement of legislation was made in March 2021."  
 
Question 5:  Could the Republic of Korea give further informatio n regarding the key outcomes 
derived from the Act on Consumer Protection in Electronic Commerce (Act No. 15141) in terms of 
the new revision of the act amended in 2017?  
 
[Answer]  
Under the new revision of the act amended in 2017, administrative fines cannot be imposed on acts 
that penalty were  imposed on.  
 
  WT/TPR/M/414/Add.1  
 
- 207 - 
 
  UNITED KINGDOM  
SECRETARIAT REPORT (S414)  
 
SECRETARIAT REPORT (S414)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures D irectly Affecting Imports  
3.1.5Import prohibitions, restrictions, and licensing  
3.1.5.3 Licensing  
Paragraph 3.61  
UK Question 1 : The UK notes that import licensing requirements apply to crop seeds and the UK has 
studied reference document G/LIC/N/3/KOR /13 to identify the relevant legislation and 
administrative organisations. The UK has not been able to locate the technical standards that each 
species must meet at field inspection and seed examination. According to the Seed Industry Law, 
we understand th at these are prescribed by the Ministry of Agriculture and Forestry. Where are the 
technical standards published and are they publicly available?  
 
[Answer]  
Technical standards about field inspection and seed examination of seeds are prescribed in guideline s 
of seed management (Public notice of the MAFRA No.2021 -23) based from Seed Industry Act.  
 
SECRETARIAT REPORT (S414)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.5  Import prohibitions, restrictions, and licensing  
3.1.5.3 Licensing  
Paragraph 3.61  
UK Question 2 : The Secretariat report mentions that some licensing is in place to safeguard the 
environment, and that this might apply to food products. Do any licensing programmes apply to food 
commodities for the purpose of safeguarding the environment, e.g., to prevent deforestation?   
 
[Answer]  
In Korea, there are certain laws stipulating import licensing procedures with the aim of safeguarding 
the environment ("Act on the Conservation and Use of Biological Diversity" and "Wildlife Protection 
and Management Act") and protecting human life and health ("Special Act on Imported Food Safety 
Control" and "Food Sanitation Act"). However, there is no licensing programme applying food 
commodities for the purpose of s afeguarding the environment as of now.  
 
SECRETARIAT REPORT (S414)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.3  Sanitary and phytosanitary requirements  
3.3.3.1 Food standards -setting framework  
Paragraph 3.163  
UK question 3:  The Secretariat report states that the requirement for Hazard Analysis of Critical 
Control Point (HACCP) certification applies to foreign food facilities. Does "foreign food facilities" 
refer to facilities manufacturing food products using i mported food ingredients/components? Do 
HACCP principles also apply to the production of domestic products?  
 
[Answer]  
A Foreign Food Facility" refers to a facility located overseas which produces, manufactures, processes, 
treats, packages, stores, etc. food products intended for export to the Republic of Korea, except for 
livestock products. The HACCP application has already been mandatory for domestically produced 
food products specified by ordinance of the Prime Minister  
 WT/TPR/M/414/Add.1  
 
- 208 - 
 
  SECRETARIAT REPORT (S414)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary requirements  
3.3.3.2 Quarantine regulations  
Paragraph 3.173  
UK question 4:  The Secretariat Report states that SPS measures are taken mainly a gainst diseases 
that are foreign/unknown to the Republic of Korea and which are subject to strict domestic control 
measures. Could the Republic of Korea please provide greater detail regarding the SPS measures 
taken against exotic diseases?  
 
[Answer]  
In case of plant quarantine, pests that are expected to bring significant impact on the host plant 
upon entry into Korea are designated as prohibited pests in accordance with the Plant Protection 
Act, and the import of the concerned host plant is prohibited. To import such prohibited plant into 
Korea, the Import Risk Analysis will be carried out and import health requirements are established. 
Moreover, in case regulated pest is found during the import quarantine process, appropriate 
measures will be taken, suc h as disinfection, destruction and return of the products.  
As for animal quarantine, in case of a new disease never detected in Korea, which has been already 
designated as controlled disease by the  OIE and has trade standards, if the disease breaks out in 
the exporting country, appropriate SPS measures will be taken, in accordance with the Act on the 
Prevention of Contagious Animal Disease.  
 
SECRETARIAT REPORT (S414)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
Paragraph 3.255 Geographical Indications  
UK Question 5 : "...the Unfair Competition and Trade Secrets Protection Act protects unregistered 
GIs when their protection under the Trademark Act or the Agricultural and Fishery Produ cts Quality 
Control Act has become ineffective." Could the Republic of Korea provide some examples of 
situations where unregistered GIs no longer have effective protection under either the Trademark 
Act or the Agricultural and Fishery Products Quality Cont rol Act?  
 
[Answer]  
An unauthorized use of a GI protected under a FTA signed by Korea cannot be protected under the 
Trademark Act or the Agricultural and Fishery Products Quality Management Act, but can be 
protected under the Unfair Competition Prevention Act. 
 
SECRETARIAT REPORT (S414)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
Paragraph 3.256 Geographical Indications  
UK Question 6 : Under the Republic of Korea's trademark legislation, trademarks consisting of a 
"conspicuous geographical name" are not granted protection. Could the Republic of Korea elaborate 
on what would constitute a "conspicuous geographical name"?  
 
[Answer]  
A trademark with a conspicuous geograp hical name or its abbreviation alone cannot be registered 
as a trademark (ex. Oxford, Manhattan, Georgia).(Trademark Act 33(1)(iv))  
 
SECRETARIAT REPORT (S414)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.7.3 Enf orcement  
Paragraph 3.280  
UK Question 7 : The Korean Intellectual Property Office (KIPO) introduced a reward system to 
encourage the reporting and distribution of counterfeit goods. How does that system work and what 
is the process for taking enforcement ac tion? 
 WT/TPR/M/414/Add.1  
 
- 209 - 
 
  [Answer]  
When a person files  a report to the Korean Intellectual Property Office regarding someone who 
manufactures or sells counterfeit products, a reward will be paid to the informant if enforcement is 
carried out and the case  is sent to the prose cutor's office.  
 
SECRETARIAT REPORT (S414)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.6.3 Public Procurement Service  
Paragraph 3.223  
UK Question 8 : Could the Republic of Korea clarify whether all tender -related information is easily 
accessible in English on the Public Procurement Service? Can foreign -owned companies register and 
use this service?  
 
[Answer]  
Summarized announcements of tender information are offered in English and foreign -owned 
compa nies can register and join the international biddings led by PPS.  
 
SECRETARIAT REPORT (S414)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.6.1 Legislation  
Paragraph  3.216  
UK Question 9 : How does the Republic of Korea classify an 'Environmentally Friendly Product", and 
how is this criteria evaluated during tender evaluation?  
 
[Answer]  
"Environmentally Friendly Products " are classified  as follows: first -rated energy  efficient products, 
high efficiency e nergy using appliances, products with a certification of new and renewable energy 
facilities, products with a certification of eco -label, excellent recycled products, etc.  
 
Awarding a bid is made through a limited competitive bidding to restrict qualifica tion for bidding 
participation to products with a green quality certification or by selecting a bidder who proposes the 
most economically reasonable price under the estimated price in  comprehensive consideration of 
bidding prices, product quality , etc. in accordance with Article 44 of ENFORCEMENT DECREE OF THE 
ACT ON CONTRACTS TO WHICH THE STATE IS A PART. A  method to determine a successful bidder 
based on quality, etc. is applied to products rated for energy efficiency( e.g. pumps and freezers) 
and products  whose performance and carbon emissions are all evaluated ( e.g. air conditioners, LCD 
monitors, printers and air purifiers). Evaluation standards vary depending on product type. Air 
conditioners, for instance, are comprehensively evaluated both for perform ance( cooling power  
consumption, cooling capacity, standby power) and carbon emissions throughout the entire stages 
of product life cycle.  
 
SECRETARIAT REPORT (S414)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.6.2 Procurement Methods  
Paragraph  3.221  
UK Question 10 : Could the Republic of Korea elaborate on why they believe the share of direct 
contracting increased from 18.7% to 20.3% between 2016 and 2019?  
 
[Answer]  
The reasons for the increase in the share of di rect contracting can be found in the following cases.  
 
- A single applicant joins the competitive bidding which have been held more than 
twice.  
- The target product is produced or owned by a single company  
- Parts replacement or expansion of the equipment, both already  procured, are 
needed  
- Emergencies  
- Certain technologies (patents, for instance) owned by a single company are needed  
 WT/TPR/M/414/Add.1  
 
- 210 - 
 
  SECRETARIAT REPOR T (S414)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.3  Sanitary and phytosanitary requirements  
3.3.3.2 Quarantine regulations   
Paragraph  3.175  
 
UK Question 11 : Does the Republic of Korea have a plan to recognise a regionalisation scheme for 
European countries?   
 
[Answer]  
Korea recognizes the concept of regionalisation in accordance with the international standards and 
domestic legislation.  
However, import risk assessment is carried out by each country, t aking into account the situation of 
animal disease outbreaks in those countries, and if there is any request for the acceptance of 
regionalisation, it could be recognized if the results of the assessment on the safety of animal 
products are favorable accor ding to the relevant procedures.  
 
SECRETARIAT REPORT (S414)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary requirements  
3.3.3.2 Quarantine regulations  
Paragraph 3.176.  
UK Question 12 : Could the Republic of Korea outline the expected timeframes for other European 
countries to obtain import permits for beef from the Republic of Korea?  
 
[Answer]  
Korea carries out import risk analysis on the application of  market access by each country, in 
accordance with the domestic regulations.  
It is difficult to provide the expected time frame as each country will take different amount of time 
for relevant procedures, depending on timing and content of the animal health  questionnaire 
submitted by the exporting country, as well as on -site audit situation and disease outbreak situation.  
 
SECRETARIAT REPORT (S414)  
4 TRADE POLICIES BY SECTOR  
4.5 Services  
4.5.3 Financial Services  
Paragraph 4.165/169  
UK Question 13 : What are some other examples of "certain regulatory entry barriers" that the FSC 
lowered and abolished in addition to minimum paid -in capital?  
 
[Answer]  
Introduction of an internet only bank  
- Loosening limitation regarding stockholding by a non-financial investor for 34%(bank for 4%)  
- 3 year grace period to meet Basel 3 capital adequacy ratio  
 
Introduction of an insurance business specialized in small and short term insurance  
- Loosening minimum capital for KRW 2 billion (an insurance company : KRW 5~20 billion)  
- Diversifying insurance products including liability, cost, weather, pet, etc.  
- 1-year insurance period  
 
SECRETARIAT REPORT (S414)  
4 TRADE POLICIES BY SECTOR  
4.5 Services  
4.5.3 Financial Services  
Paragraph 4.170  
UK Question 14 : How many for eign companies are utilising the "Regulatory sandboxes" to introduce 
their Fin -Tech technology and services? What measures is the FSC using to facilitate this participation 
from foreign firms?  
 WT/TPR/M/414/Add.1  
 
- 211 - 
 
  [Answer]  
One foreign company (the Korea branch) is utilising t he Regulatory Sandbox program.  
The FSC, along with the Fintech Center Korea, strives to advertise the Regulatory Sandbox program 
to foreign companies through press releases and websites.  
 
SECRETARIAT REPORT (S414)   
2. TRADE AND INVESTMENT REGIMES  
2.3 Trade Policy Objectives  
Paragraph  2.13 & 2.14  
 
UK Question 15 : How does the Republic of Korea see the role of bilateral trade cooperation in 
pursuing its goals of boosting "corporate vitality and innovative growth" as referenced in the 
Secretariat's re port? 
 
[Answer]  
Ensuring the "stability and continuity" of business activities is a top priority in the rapidly changing 
global trade environment in order to boost "cooporate vitality and innovative growth". For example, 
Korea and the UK have already achie ved tangible  outcomes by preemptively concluding the KOR -
UK FTA. Furthermore, it is important that both countries continue our close cooperation with a view 
to maintaining free and fair trade relations through our FTA, which serves as a solid framework for  
cooperation.  
 
SECRETARIAT REPORT (S414)  
SUMMARY  
Paragraph 5.  
UK Question 16 : Within the Republic of Korea's network of RTAs, rice is excluded from the coverage. 
Does the Republic of Korea have plans to gradually open this market over the next 5 to 10 years?  
 
[Answer]  
Considering in overall the importance of rice in agriculture a nd rural economy of Korea and the 
concerns of the industry, Korea has excluded rice from tariff concession of FTAs, and will maintain 
its position to exclude rice from tariff concession in future FTAs.  
 
SECRETARIAT REPORT (S414) / SOUTH KOREA REPORT (G414 )  
1.ECONOMIC ENVIRONMENT / 4.2 REGIONAL AND BILATERAL TRADE COOPERATION  
1.1 Main Features of the Economy / 4.2.1 FTA Policies  
Paragraph 1.1 / Paragraph 4.2.2  
UK Question 17 : The Republic of Korea has a high reliance on manufacturing export -led growth, and  
this can leave Korea's economy vulnerable to external disruptions in global value chains, such as 
the Covid -19 pandemic. What policies has the Republic of Korea taken to mitigate potential risks to 
external disruptions in global value chains?  
 
[Answer]  
The Republic of Korea has grown upon the basis of free trade and market economy, and participated 
actively in global supply chain. Korean government fully devoted itself to protect free trade system 
and maintenance of global supply chain despite of border cl osure due to COVID -19. Especially, Korea 
has implemented policies to allow free movement of human and material resources. In order to ease 
restrictions with movement of business people, Korean government worked with countries such as 
Vietnam to provide fas t-tract entry for entrepreneurs without symptoms of COVID -19, while 
establishing support center for immigration quarantine exemption of business people. Also, Korea 
supported smooth movement of goods and materials by expanding flight and shipping operation s. 
 
SECRETARIAT (S414)  
4 TRADE POLICIES BY SECTOR  
4.5 Services  
4.5.5 Transport Services  
4.5.5.1 Maritime transport  
Paragraph 4.241.  
UK Question 18 : Under the Ship Act (Article 6), foreign vessels are not permitted to engage in 
cabotage. However, coastal trade is allowed if specified by law or treaty, approved by the MOF, or if 
it is to avoid marine accident or marine capture. For example, coastal tr ade has been allowed to be 
carried by foreign vessels between Busan and Gwangyang ports since 2003, and between Incheon WT/TPR/M/414/Add.1  
 
- 212 - 
 
  and Gwangyang ports since 2005, both with no time limit. Could the Republic of Korea answer the 
following questions:  
 
• Under what circums tances would the MOF approve foreign ships to conduct cabotage in the 
Republic of Korea's waters?  
• Are there any treaties between Republic of Korea and another country that permit unrestricted 
cabotage market access? If yes, would the Republic of Korea look  to extend this access to 
other states?  
• Does the Republic of Korea consider the following maritime services as cabotage and therefore 
excluded from foreign flagged vessels?  
o Bunkering  
o Dredging  
o Movement of Empty Containers (when not carried against pa yment)  
o Feeder services  
• Offshore services (wind and hydrocarbon energy construction and servicing)  
 
[Answer]  
Cabotage is allowed when there are other legal grounds, when it is to be distressed from marine 
accidents or it is to avoid unintended capture, an d when there is permission from the minister of 
MOF. 
There are no such treaties that permit unrestricted cabotage market access.  
The mentioned services are provided to foreign vessels, thus are not considered as cabotage.  
 
SECRETARIAT REPORT (S414)  
4 TRADE POLICIES BY SECTOR  
4.5 Services  
4.5.6 Distribution services with a specific focus on e -commerce  
Paragraph 4.277. / 4.280.  
UK Question 19 : The Republic of Korea has a general prohibition in force for all alcohol sales via the 
internet, but there are two exceptions applying to domestic products only, namely, 1) for sales of 
Korean traditional liquor allowed through online platforms  run by public institutions (such as the 
postal service and those promoting exports); and 2) for licensed restaurants which may sell and 
deliver beer in conjunction with food sales.  
 
Will the Republic of Korea reconsider its policy and allow e -commerce in  imported alcoholic 
beverages with home delivery, subject to payment being made by credit card to prevent purchase 
by minors?  
 
[Answer]  
This year, there are no plans to revise regulations related to home delivery of alcoholic beverages. 
However, since last  year, "smart orders" for alcoholic beverages have been allowed. This system is 
a method in which customers order and pay using a smartphone app, and then when liquor reaches 
the store, the ordered  visits the store in person and receives the ordered liquor . In the process, 
teenagers are restricted from purchasing alcoholic beverages through two times adult 
authentication(during payment and receipt).  
 
SECRETARIAT REPORT (S414)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Tr ade  
3.3.1 Incentives  
3.3.1.1 Taxation  
Paragraph 3.96. / 3.100.  
UK Question 20 : Producers and importers of glass bottles are obliged to conduct a grading procedure 
to determine the recyclability grade of their bottles, which is then verified, assessed and either 
confirmed or denied by the Korean Environment Corporation. The Republic of Korea authorities 
agreed to exempt wine and whisk(e)y (but not other spirits categories) from these labelling 
requirements. However, the Ministry of Environment has recently decided to charge an additional 
20% environment fee on these products from 2022, based on 2021 imported volume, apparently to 
compensate the labelling exemption benefits. This high level of tax would not apply to all products, 
including within  the category "hard to recycle", in contradiction to the principle of equal treatment 
under these rules (cf. paragraph 3.100 on page 83 of the Secretariat report). The higher tax imposed 
on whiskey (and wine) would simply result in a tax discrimination acc ording to GATT Article III.2.  WT/TPR/M/414/Add.1  
 
- 213 - 
 
  Will the Republic of Korea review its legislation on recyclability labelling and taxation and eliminate 
the proposed 20% fee on imported whisky?  
 
[Answer]  
Packaging materials exempt from the 'Difficult to Recycle' labelling  are mandatory to be reviewed 
every two years in accordance with Article 6 of the 'Packaging Material & Structure Grade Labeling 
Standards (Ministry of Environment Notice No. 2021 -57)'. Recycling contribution rate including its 
additional rate due to recyclab ility is deliberated and decided annually by the Joint Steering 
Committee pursuant to Article 29 of the Act on the Promotion of Saving and Recycling of Resources. 
The 20% surcharge for recycling contribution is likely to be applied in stages to all "Diffic ult to 
Recycle" packaging materials eventually, and only was priorly introduced from 2021 on packaging 
materials exempt from 'Difficult to Recycle' labelling , including glass bottles used for packaging wine 
and whiskey.  
 
SECRETARIAT REPORT (S414)  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.4 Competition policy and price controls  
3.3.4.3 Consumer protection  
 
Paragraph 3.205. / 3.209.  
UK Question 21 : Under the National Health Promotion Act Enforcement Decr ee enacted in 1995, 
broadcast advertising of products exceeding 17% abv is prohibited. As Scotch Whisky is required by 
law to be sold at a minimum bottling strength of 40% abv, this means that advertising is prohibited. 
In Korea, the spirits market is domi nated by the local spirit, soju (with approx. 97% share) and the 
majority of the rest is imported Scotch Whisky. In the past, the advertising of soju was similarly 
restricted as most brands were sold at 20% abv or more, but in recent years lower -strength s oju 
has been developed and is permitted to advertise. It therefore has a considerable advantage over 
imported spirits such as Scotch Whisky.  
Will the Republic of Korea reconsider its policy on the broadcast advertising of alcoholic drinks over 
17% alcohol by volume, so that imported spirits sold at around 40% abv are permitted to advertise 
on the same terms as locally produced soju, some brands of which are now sold at below 17% abv?  
 
[Answer]  
The limit of 17% ABV for broadcast advertisements of spirits wa s introduced to protect the Korean 
people's health in consideration of their alcohol consumption pattern and is applied to most 
domestically produced spirits including Soju. The OECD has also recommended that Korea reinforce 
its regulations on advertisemen ts of alcohol products, in order to prevent harmful consequences 
caused by alcohol consumption(OECD,2020).  
 
Soju products with over 17% ABV cannot be advertised through broadcast advertisements the same 
way as imported spirits. As of 2019, more than 70% of  Korean Soju products are over 17% ABV and 
broadcast advertisement is prohibited. Thus, it is hard to say that Korean Soju products benefit from 
broadcast advertisements.  
 
Also, in Korea, the use of broadcast and printed media for advertising alcohol produ cts is declining 
while the use of online media is rapidly increasing. There is no limit on the type and ABV of the 
alcohol products for online advertisements, so imported spirits can equally appear in advertisements 
online. Therefore, this shows that the K orean government is not treating imported spirits any 
differently from domestic  alcohol products.  
 
In addition, limits in different forms of advertisement for alcohol products based ABV is a policy that 
is being implemented in the EU and other countries in cluding Spain. The level of ABV is also similar 
to Korea.  
 WT/TPR/M/414/Add.1  
 
- 214 - 
 
  SECRETARIAT REPORT (S414)  
2 TRADE AND INVESTMENT REGIMES  
2.5 Trade Agreements and Arrangements  
2.5.4  Other agreements and arrangements  
2.5.4.1  Asia-Pacific Economic Cooperation (APEC)  
Paragraph  2.63 
 
UK Question 22:  Could the Republic of Korea provide additional details on their plans to make further 
improvements to the mobility of businesspeople? Will these be solely for natural persons from APEC 
partner countries?  
 
[Answer]  
Korea has implemented several measures facilitating essential movement of people across borders. 
Korea has issued Quarantine Exemption Certificates for those visiting for important and urgent 
business activities, academic events, matter of public interests, or other  humanitarian reasons. Also, 
Quarantine Exemption Certificates are available for people holding A -1 (Diplomat), A -2 (Government 
Official), or A -3 (Agreement) visas. Especially, Korea has taken several measures to assist the 
movement of business people. Kor ea implemented, upon bilateral arrangement, Special Entry 
Procedure(called Fast Track Procedure) with various economies to allow business people to carry out 
economic activities upon arrival in Korea without the 14 -day quarantine. In addition, Asia -Pacific  
Economic Cooperation(APEC) Business Travel Card(ABTC) holders who are granted pre -clearance 
can enter Korea without the need to apply for a separate visa.  
 
SECRETARIAT REPORT (S414)  
4 TRADE POLICIES BY SECTOR  
4.1 Services  
4.1.1  Tourism  
4.1.1.1  Regulatory framework  
Paragraph 4.288  
UK Question 23:  Could the Republic of Korea provide further details on its plans to ease visa rules?  
 
[Answer]  
 The Korean government is planning to commence a relaxation policy with regards to the 
multiple -entry visa for Chinese individua ls and expand the issuance of the visa to VIP members 
whose Zhima scores are higher than 780(credit evaluation system for Alibaba users) and Cardholders 
of UnionPay premium credit card.  The relaxation policy for multiple -entry visa was to commence 
from 11  January  21. However, due to COVID -19, all multiple -entry visa issuance is currently 
temporarily suspended, and the new policy will be applied beginning from the resumption of multiple -
entry visa issuance.  
 
SECRETARIAT REPORT (S414)  
 
4 TRADE POLICIES BY SEC TOR 
4.4.2 Automotive  
 
Paragraph 4.142  
UK Question 24 : What type of hydrogen will the 180 new hydrogen stations produce? [The answer 
may refer to the hydrogen colour spectrum, although it is recognised that there are no 
internationally -accepted definitions for these colours, so an explanation of the production process 
would be a sufficient alternative.]  
 
[Answer]  
The cumulative 180 hydrogen refuelling  stations to be installed by 2021 will be supplied as gray 
hydrogen base d on by-product  hydrogen or reformed hydrogen.  
However, we plan to expand the proportion of green hydrogen based on renewable energy for 
hydrogen supplied to charging stations.  
 
SECRETARIAT REPORT (S414)  
SUMMARY  
Paragraph 23  
UK Question 25 : Does the Republic of Korea's 2050 net -zero target include emissions produced by 
international maritime and aviation?  WT/TPR/M/414/Add.1  
 
- 215 - 
 
  [Answer]  
The first draft of 2050 carbon neutrality scenarios released in August 2021 does not have a specific 
category for international shipping an d aviation emissions reduction. However, the scenarios include 
strategies to reduce emissions from transportation sector, by increasing the use of biofuels and 
adopting more eco -friendly modes of transportation in shipping and aviation.  
 
SECRETARIAT REPORT  (S414)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.3  Sanitary and phytosanitary requirements  
3.3.3.2 Quarantine regulations  
Paragraph  3.175  
UK Question 26 : When will the Republic of Korea notify the WTO of im provements they have made, 
or intend to make, with regards to seafood testing?   
 
[Answer]  
With regards to seafood testing, Korea is notifying its revision plans in accordance with the WTO 
SPS Agreement before the end of the revision process.  
 
SECRETARIAT R EPORT (S414)  
4 TRADE POLICIES BY SECTOR  
4.3 Mining and energy  
4.3.2 Energy  
4.3.2.6 New and renewable energy  
Paragraph 4.121  
UK Question 27 : Could the Republic of Korea elaborate on and share details regarding its process 
towards meeting renewable energy targets?  
 
[Answer]  
In order to accelerate the supply of renewable energy, the mandatory RPS ratio has been raised, 
and large offshore wind power and solar energy projects are being actively promoted.  
 
SECRETARIAT REPORT (S414)  
2 TRADE AND INVESTMENT  REGIMES  
2.4 Trade Laws and Regulations  
2.4.1 Regulatory reform  
Paragraph 2.167  
UK Question 28 : Are the results and reports of the testing undertaken in regulatory sandboxes 
publicly available? What international cooperation would be possible as part of th ese regulatory 
sandboxes? With regards to regulation -free Special Zones, how are consumer/public health and 
safety measures ensured?  
 
[Answer]  
Related data such as results and reports of the "Regulatory Exceptions for Demonstration" are not 
shared external ly because they include corporate trade secrets. All data are used for revision of the 
law, and if the demonstration ends reasonably and successfully, reports are being used to amend 
the regulation.  
Industrial Convergence Regulatory Sandbox is open to both  domestic and foreign companies, so 
anyone who intends to do business in Korea can apply. Since we have been operating regulatory 
sandbox based on business rather than research and development, if there is a business operator 
who wants to advance overseas,  we can consider establishing a safety standard cooperation system 
for each country. In addition, international standard cooperation is already underway as another 
project by KATS(Korean Agency for Technology and Standards).  
In the case of Industrial Conve rgence Regulatory Sandbox, demonstration projects are given by 
prioritizing public safety, environmental, and public interests from the stage of deliberation. Efforts 
are being made to minimize side effects by first checking consumer and public health and safety 
measures by implementing Temporary permission as well as Regulatory Exception for 
Demonstration, and strictly presenting conditions for granting special cases  
 WT/TPR/M/414/Add.1  
 
- 216 - 
 
  SECRETARIAT REPORT (S414)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affectin g Production and Trade  
3.3.2 Standards and other technical requirements  
3.3.2.1 Standards, testing, and certification  
Paragraph 3.134  
UK Question 29 : Could the republic of Korea share details regarding key objectives for the 5th 
National Standards Plan?  
 
[Answer]  
5th National Standards Plan consists of four key objectives as follows :  
1. Developing international standards for digital and low -carbon technologies  
2. Supporting business innovation such as expanding test and certifi cation services  
3. Promoting standardization for a safe and convenient life of the people  
4. Establishing the foundation for standardization such as Reinforcement the link between R&D 
and standardization.  
 
SECRETARIAT REPORT (S414)  
 
2 TRADE AND INVESTMENT  REGIMES  
2.4 Trade Laws and Regulations  
2.4.1 Regulatory reform  
Paragraph 2.15  
UK Question 30 : Are any regulatory proposals by central administrative agencies ever overturned 
because of the RRC intervention?  
 
[Answer]  
The Regulatory Reform Committee (RRC) has the authority to make a final decision on the regulatory 
proposals, such as "approval", "recommendation for revision", and "withdrawal". Without the RRC's 
clearance, the regulatory proposal or bill cannot be enacted into a law.  
 
SECRETARIAT REPORT (S4 14) 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.3  Tariffs  
3.1.3.1 Applied MFN rate  
Paragraph 3.333  
UK Question 31 : Does the Republic  of Korea envision adjusting its tariff rates?  
 
[Answer]  
Currently Korea does not plan to reduce the tariff rates. But, Korea has implemented the tariff 
concession precisely without delay according to WTO agreement such as ITA Expansion. And, a 
number of F TAs and multilateral trade agreements in which Korea participated are having the effect 
of lowering tariff rates.  
 
SECRETARIAT REPORT (S414)  
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture and Livestock  
4.1.2  Policy, institutional, and regulatory developments  
Paragraph  4.14 
UK Question 32 : Does the Republic of Korea have any plans to reconsider the equity limits that apply 
to foreign investment in the beef cattle and meat wholesale sectors?  
 
[Answer]  
As set forth by Article 4 of the Foreign Investment Promotion  Act, Korea does not restrict foreign 
investment except in the following circumstances: ① Where he or she threatens national security 
and public order, ② Where he or she has harmful effects on public health and sanitation or 
environmental preservation and so on.  
However, in case of beef cattle raising business, The livestock industry takes up a significant portion 
of total agricultural output value (40 per cent in 2019). Accounting for a large share of the livestock 
industry, the Korean cattle sector is an industry where the related industries such as feed and dairy WT/TPR/M/414/Add.1  
 
- 217 - 
 
  farming are integrated. The sector is open from 2001 allowing foreign investment up to 50 per cent. 
Also, Meat wholesale business is open from 2001 allowing foreign investment up to 50 percent.  
 
GOVERNMENT REPORT (G414)  
 
3 ECONOMIC POLICY  
3.1 Core Values of Economic Policies: Innovation, Inclusion, and Fairness  
Paragraph .1.2  
UK Question 33 : Could the Republic of Korea please specify which "unnecessary regulations" it is 
lifting to enable greater innovation?  
 
[Answer]  
Since January 2019, the Korean government has been operating the Regulatory Sandbox program 
to allow for various experiments of potentially innovative technologies that had been stalled 
otherwise under the incumbent regulatory framework. 509 cases of regulatory sandbox have been 
approved, followed by revamping 121 regulatory laws and system improvement. Among them, 
representative examples of regulatory improvement are as follows.  
- Electronic vehicle charging business : (Existing regulation) Under the past 'Electricity Business Act', 
it was only possible to register as an electric vehicle charging business operator if  it has equipped 
with a plug -type charging facility. → (improved) Revised the 'Electricity Business Act ' to enable 
electric vehicle charging business using general electric sockets, not limited at a certain type.  
- (Existing regulation) Under the past 'Fo od Sanitation Act', business operators who wanted to 
manufacture, cook and sell food had to demonstrate one's office or kitchen compartment without 
sharing other business → (improved) Revised the 'Food Sanitation Act' to enable start -ups in which 
several o perators shared one kitchen.  
 
GOVERNMENT REPORT (G414)  
 
3 ECONOMIC POLICY  
3.1 Core Values of Economic Policies: Innovation, Inclusion, and Fairness  
3.3.3. Energy: Achieving Sustainable Growth and Enhancing Quality of Life through Energy 
Transition  
Paragraph 3.3.3.19  
UK Question 34 : The Republic of Korea's report states that the "5th Master Plan for New and 
Renewable Energy" covers comprehensive polic ies on renewable energy sources such as hydrogen. 
Could the Republic of Korea please explain how these policies incorporate effective collaboration with 
partner countries, particularly in areas such as offshore wind and hydrogen?  
 
[Answer]  
For cooperation with various countries, we have signed mou or are continuing to make efforts to 
discover policy and technology cooperation issues such as policy sharing and joint R&D.  
 
GOVERNMENT REPORT (G414)  
 
4 TRADE & INVESTMENT POLICY  
4.2 Regional and Bilateral Trade Cooperation  
4.2.1 FTA Policies  
Paragraph 4.2.1.28  
UK Question 35 : Could the Republic of Korea specify which digital agreements it is proactively 
exploring, in addition to the DEA with Singapore and the DEPA?  
 
[Answer]  
Korea recognizes the importance of electronic commerce in the digital economy era and is expanding 
the establishment of digital trade rules with like -minded countries. We are currently negotiating a 
Digital Partnership Agreement with Singapore and are in the process of joining  the Digital Economy 
Partnership Agreement (DEPA)with Singapore, New Zealand and Chile. Korea  and Chile are also 
negotiating a digital economy chapter under the improvement negotiations for the current 
Korea -Chile FTA. Regardless of the type or legal struc ture of the digital agreement, Korea is 
interested in establishing digital partnerships that achieve a high level of liberalization from the 
perspective of trade rules and emphasize cooperation in the digital field.  
 WT/TPR/M/414/Add.1  
 
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  GOVERNMENT REPORT (G414)  
4. TRADE AND I NVESTMENT POLICY  
4.1 Multilateral Trade Cooperation  
4.1.1  WTO Negotiations  
Paragraph  4.3 
 
UK Question 36 : In order to implement the rules of 'Trade Facilitation Agreement (TFA)', Korea 
introduced the UNI -PASS system. How much is its utilisation rate among exporters and importers 
and how does the system work to protect the personal data, while ensuring transparency and 
effectiveness?  
 
[Answer]  
In order to use UNI -PASS, exporters/importers must go through verification processes by KCS (e.g. 
corporate registration number verification). KCS -approved businesses must register for 
authorization certificate, and only those authorized can use the system . For security reasons, UNI -
PASS utilizes one -way encryption, and sensitive personal information from customs clearance is 
encrypted to prevent leakage. Also, all information about the exporters/importers that use UNI -
PASS is encrypted before it is sent.  
 
GOVERNMENT REPORT (G414)  
 
2. ECONOMY AND TRADE  
Robust economic growth and employment  
Paragraph 2.2  
UK Question 37 : The Republic of Korea has implemented a set of policies under a vision of 'human -
centric and sustainable economy' under the current gover nment, and one of these covered job 
creation. How does the Republic of Korea assess its performance? What are some of the key areas 
the Republic of Korea is investing for job creation?  
 
[Answer]  
 
<Performance assessment of job creation policy>  
The Moon jae -in administration has focused on improving the quality of life of low -income workers 
and bridging the gap within the labor market including through raising the minimum wage, 
establishing the 52 hour workweek, enhancing the coverage of unemploy ment benefits, and 
converting non -regular workers to regular status. It has actively supported employment retention 
and creation in the private sector with the Job Stability Fund, the Comprehensive Measures for Youth 
Employment (strengthened support for 'j obseeking -recruitment -retention' process), etc., while 
making efforts to expand job opportunities for the vulnerable in the public sector. As a result, the 
employment rate has increased (2016: 66.1% → 2019: 66.8%), and the share of low -income 
workers has d ecreased (2016: 23.5% → 2019: 17.0%) until 2019, indicating that both quantity and 
quality of employment have continued to improve. During the COVID -19 pandemic, the government 
has swiftly responded to the crisis by ➊actively supporting employment retentio n, ➋providing 
livelihood support for those in the blindspot of the employment safety net such as the dependent 
self-employed·freelancers, ➌creating public·private jobs, and ➍expanding the employment safety 
net. These efforts have enabled Korea to mitigate its employment shock relatively well compared to 
other OECD countries and to maintain its employment improvements to recover 99.6% level of 
shortly before the COVID -19 crisis (Feb. 2020, the number of the seasonally adjusted employed as 
of Aug. 20 21). 
 
<Key areas of investment for job creation>  
With a view to create quality private jobs, the Korean government has endeavored to promote 
innovation and reinvigorate the industrial ecosystem. In order to support the growth of "The Second 
Venture Boom," it has reinforced its support by phase of growth from business startup, growth, 
withdrawal of profit to re -challenge and made sustained efforts to overhaul the regulatory system 
and eliminate major regulations including through introducing the regulatory s andbox and the 
regulation -free special zone. Furthermore, it has concentrated on supporting the strategic 
investment areas such as the "D.N.A(Data, Network, and AI)" and "BIG 3(System semiconductor, 
Biohealth, and Future cars)" areas to seek new growth eng ines. Meanwhile, under the present 
situation where the labor market dualism is further exacerbating, it has pursued mutually beneficial 
local jobs, a sustainable job model based on the cooperation among labor, management, the local 
governments, and civil s ocieties. Gwangju -type jobs, the first model of mutually beneficial local jobs, WT/TPR/M/414/Add.1  
 
- 219 - 
 
  were created through social agreement, and a finished vehicle assembly plant was newly established 
in the country in 23 years. Eight regions where these social agreement were r eached are expected 
to attract new investment of KRW  51 trillion (approx. USD  4.3 billion) and create 130,000 jobs.  
 
GOVERNMENT REPORT (G414)  
 
2. ECONOMY AND TRADE  
Maintaining status as a key player in trade  
Paragraph 2.4  
UK Question 38 : Despite the fact that the Republic of Korea has maintained a trade surplus over the 
last decade including the review period, the Republic of Korea dropped from 6th (2016 report) to 
7th (2021 report) in the global export volume. What does the Republic of Korea see as some o f the 
reasons underpinning this?  
 
[Answer]  
The drop from 6th(2015) to 7th(2020) in the global export volume resulted from the remarkable 
performance of Hong Kong in 2020 whose export value increased even under COVID -19 crisis.  
 
3. ECONOMIC POLICY  
3.3.2.  Manufacturing: Becoming a strong industrial powerhouse  
Paragraph  3.13-3.14 
UK Question 39 : The Republic of Korea government has implemented industrial policies under the 
'Manufacturing Renaissance Vision and Strategy' and built approximately 20,000 smart factories and 
7 smart industrial complexes. How many companies have participated in this project, and what are 
the sectors predominantly represented? Have foreign companies been able to participate? How much 
have transformation efforts contributed to  the manufacturing sector's growth and the Republic of 
Korea's GDP?  
 
[Answer]  
The Korean government has promoted the 'smart green industrial complex' policy as part of the 
Korean New Deal announced in Jul. 2020. A total of 37,000 companies are located in t he smart 
green industrial complexes, and the companies are involved in various fields ranging from 
machinery, electricity and electronics to petrochemicals. Foreign companies can participate in 
projects related to smart green industrial complexes. Currentl y, Dassault Systems and other foreign 
companies participate in digital projects. As various projects related to carbon neutrality of the 
industrial complexes will be promoted, it is expected that a lot of renewable energy companies will 
participate. The pr ojects are expected to create results, such as improvement of old industrial 
complex infrastructure and promotion of new industries by companies at the industrial complexes.  
 
GOVERNMENT REPORT (G414)  
3. ECONOMIC POLICY  
3.3 Measures Affecting Production and  Trade  
3.3.3  Energy: Achieving Sustainable Growth and Enhancing Quality of Life through Energy 
Transition  
Paragraph  3.19-3.21  
UK Question 40 : Given the objectives of net zero in 2050 and increased renewable energy 
deployment by 2034 to 25.8%, what is the role that the Republic of Korea sees for trade policy in 
promoting and sustaining this transition to a decarbonised electricity grid?  
 
[Answ er] 
As the need to move toward a greener economy is growing, the policy direction for so -called green 
trade is expected to increase. In particular, the carbon neutrality can become a new regulation for 
small and medium -sized enterprises (SMEs) with relativ ely limited financial resources or information. 
In this respect, the Government would have a role to play in enhancing the capability of exporting 
SMEs and burgeoning SMEs to comply with procedures to achieve the carbon -neutral goal and use 
it as an new op portunity to expand their entry into the global market.  
 WT/TPR/M/414/Add.1  
 
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  GOVERNMENT REPORT (G414)  
 
ECONOMIC POLICY  
3.3 Measures Affecting Production and Trade  
3.3.4 Services: Building the Foundations for Trade in Services  
Paragraph 3.23  
UK Question 41 : The Republic of Korea's plan of increasing quantity and quality of data on trade in 
services is encouraging and would help evidence -gathering for different poli cy proposals. Will 
environmental services be delineated within this dataset?  
 
[Answer]  
Discussion is undergoing to improve trade in service statistics with related agencies, but nothing has 
been specified so far.  
 
GOVERNMENT REPORT (G414)  
 
3 ECONOMIC POLI CY 
3.5 Green New Deal  
Paragraph 3.5  
UK Question 42 : Is the carbon neutrality target going to be translated into legislation?  
 
[Answer]  
In September this year, the government enacted the Framework Act on Carbon Neutrality and Green 
Growth, which enshrines the 2050 vision and its implementation mechanism in law. As a mid -term 
target to achieve the 2050 long -term goal, the Act provides the r ange of a 2030 NDC target to be 
35% or higher from the 2018 level.  
 
GOVERNMENT REPORT (G414)  
4 TRADE AND INVESTMENT POLICY  
4.3 Trade Policies  
4.32 Digital Transition in Trade  
Paragraph 4.3.4.32 -34  
UK Question 43 : Regarding the Republic of Korea's uTradeHu b: 
a) Will the improved uTradeHub be used to collect stats on e -commerce?  
b) Is the platform run directly by the South Korean government or a 3rd party, who has access to 
the information held on the repository and relay system, and how long is this data re tained?  
c) Does a company using the system have any control over the data held on them?  
d) Noting that the platform uses AI to read and convert data, is this in respect of 
information/documents held on the repository and relay system or would the AI requir e access to 
other systems, such as banking services, UK logistics firms, etc.?  
e) Is the data retained on the uTradeHub platform used for any other purposes than the facilitation 
of paperless trade?  
 
[Answer]  
No. Some of the new features of uTradeHub suppo rt cross -border e -commerce transactions, but it 
does not cover statistics one -commerce.  
A 3rd party, Korea Trade Network, operates uTradeHub. The Operator may disclose information 
without infringing the company's trade secrets or harming national security.   
Trade documents (Certificate of Origin, Purchase Certificate, and others) are supposed to be kept 
on the uTradeHub repository for a minimum of three years by Electronic Trade Facilitation Act.  
The user may request copies  of information (or electronic re cord)on the repository and relay system. 
But the information (or electronic record) on the repository or relay system can't be  deleted or 
removed  within three years.  
AI reads data on the uTradeHub system only. The data can be used for trade promotion purpo ses in  
a limited way without infringing the company's trade secrets or harming national security.  
 WT/TPR/M/414/Add.1  
 
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  GOVERNMENT REPORT (G414)  
 
3 ECONOMIC POLICY  
3.3 Sectoral Policies  
3.3.4 Services: Building the Foundation for Trade in Services  
Paragraph 3.3.4.23  
UK Question 44 : Identifying/tracking exports and imports in services trade is complex and a lack of 
strong data is an issue for services trade. In that context:  
a) Does the Republic of Korea propose any solutions to address this?  
b) How is the Republic of Korea detailing the statistics they are devolving, and when will these be 
published?  
c) Will the Republic of Korea use the same categories of data that they use for domestic statistics?  
 
[Answer]  
Discussion is undergoing to improve t rade in service statistics with related agencies, but nothing has 
been specified so far.  
 
GOVERNMENT REPORT (G414)  
 
3 ECONOMIC POLICY  
3.3 Sectoral Policies  
3.3.2 Manufacturing: Becoming a Strong Industrial Powerhouse  
Paragraph 3.17  
UK Question 45 : How doe s the Republic of Korea plan to involve the international community in the 
development of their proposed 300 international standards by 2023?  
 
[Answer]  
KATS has undertaken efforts to connect the R&D(Research and Development) achievements in the 
fields of the Fourth Industrial Revolution to the standards.  
Also, KATS contributes to promoting the international standardization in the fields of the 
Fourth  Industrial Revolution by proposing the results as international standards of ISO, IEC, etc.  
  WT/TPR/M/414/Add.1  
 
- 222 - 
 
  UNITED STATES  
Part I. Questions based on the Secretariat Report (WT/TPR/S/414)  
 
SUMMARY  
 
Page 11, paragraph 11 :  
1. Please provide additional detail about the tax and non -tax benefits for repatriating Korean 
companies, including those providing information technology services and information 
communication firms. What is the value of these benefits and what other sectors are these benefits 
provided to ? 
 
ANSWER : 
(Tax benefit) Tax Reduction and Exemption for Companies Closing Overseas Business Places and 
Returning to Korea (RESTRICTION OF SPECIAL TAXATION ACT§104 -24. Viewed at: 
https://www.law.go.kr/engLsSc.do?menuId=1&subMenuId=21&tabMenuId=117&query=%EC%A1
%B0%EC%84%B8%ED%8A%B9%EB%A1%80%EC%A0%9C%ED%95%9C%EB%B2%95 ). 
The income accrued from the place of business after so returni ng shall be fully exempted from 
income tax or corporate tax, for the taxable year in which the first income accrues from the place of 
business after the date of return, and the two subsequent taxable years from the date the following 
taxable year commences ; and income tax or corporate tax on such income shall be reduced by 
50/100 for the two subsequent taxable years thereafter.  
Companies moving their businesses abroad for more than two years to Korea are exempt from tariffs 
on capital goods imported by the  end of December 2021 (complete return 100%, partial return 50%).  
 
1 ECONOMIC ENVIRONMENT  
 
Page 24, paragraph 1.12:  
2. Please clarify what new growth -engine industries are provided tax incentives.  
 
ANSWER : 
Korea provides tax incentives to the R&D of technologies in future cars, intelligent information, 
next-generation security software technology, content, next -generation electronic information, 
next-generation broadcasting and communication, bio, health, new energy industries, etc., and also 
provides  tax incentives to facility investment in commercializing these technologies.  
 
2 TRADE AND INVESTMENT REGIMES  
 
Page 38, paragraph 2.17:  
3. The paragraph notes the introduction of "regulation -free special zones" for experimentation of 
innovative technologies. What are the procedures for requesting a new "special zone" for innovative 
technologies? Can stakeholders based outside Korea request the creation of a "special zone?"  
 
ANSWER : 
(Procedure) The heads of a non -metropolitan region establish a pl an for a special zone and apply for 
the Ministry of SMEs and Startups → Review the plan for a special zone (government ministries + 
experts) →A special zone committee deliberation for designation (government + private sector, 
presided over by the Prime Mini ster) 
 
(Stakeholder request) In order to receive the benefits of Act on Special Cases concerning the 
regulation and financial support as special zone businesses, they must be businesses within the 
special zone.  
 
Page 52, Table 2.4  
4. The table details occupancy requirements for FTZ benefits that appear to be conditioned on having 
a 50% export percentage. Is that correct? Please explain how this incentive is consistent with the 
SCM Agreement.   
 
[ANSWER]  
FTZ is a rental special economic zone created mainly by exporters to ensure free trade activities, 
and companies that want to move into FTZ meet a certain export share (different industries) as a 
requirement for occupancy qualification.  WT/TPR/M/414/Add.1  
 
- 223 - 
 
  * In the case of manufacturing, 50% of large compani es, 40% of medium -sized companies, and 30% 
of small and medium -sized companies by company size.  
 
The proportion of exports is not a condition to provide occupancy benefits to specific companies 
(industries), but a basic occupancy qualification imposed to a chieve the purpose of creating FTZ, 
which is to create an integrated complex centered on export companies. Both domestic and foreign -
invested companies can move into FTZ under the same conditions, and do not give conditions for 
preferential treatment or re strictions on specific companies (industries).  
 
In fact, FTZ occupant companies include various industries such as electronics, electrics, machinery, 
chemistry, shipbuilding, agricultural machinery, auto parts, and logistics industries, and small and 
mediu m-sized companies account for 98.1% (as of 2019) in terms of size. In addition, foreign -
invested companies account for more than 50%.  
 
These incentives do not violate the WTO subsidy agreement as they do not constitute state -provided 
financial support othe r than customs reservations applied to ordinary bonded areas and lease of land 
and buildings provided and FTZ exports to third countries do not cause damage to the other parties.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
Page 54, paragraph 3.6:  
5. The paragraph describes the utility of the UNI -PASS system to handle customs clearance. Are 
there any types of shipments that are not allowed to use the UNI -PASS system?  
 
ANSWER : 
Every shipment is administrated by UNI -PASS, be it import, loading, storage, transport, or clearance. 
However, as for postal items, only those subject to customs clearance are administrated by 
UNI-PASS.  
 
Page 55, paragraph 3.7:  
6. The Secretariat Report states, "Considering the need for interconnectivity with neighboring 
countries and foreign customs in achieving the objective of a global single window, the UNI -PASS 
system applies international standards such as World Customs Organization (WCO) Data Model 
(DM) 3.0, UN Codes, and open technology standards. "Is  Korea's UNI -PASS system currently 
interconnected with any other country's electronic customs systems or single window? If so, with 
which countries?  How is data security handled between the interconnected systems?  
 
ANSWER : 
So far, the UNI -PASS system is not directly in terconnected with any other country's electronic 
customs clearance system or single window system.  
 
Page 56, paragraph 3.10:  The Secretariat Report indicates that de minimis clearance is available 
for consumption goods purchased online . 
 
7. What is the mechanism for determining whether a good has been purchased online versus some 
other mode of purchase?   
 
[ANSWER]  
Korea's CUSTOMS ACT states that customs duties on small -sum goods granted to residents in ROK 
may be exempted, whether the transaction is made  on-line or not. In addition, according to 
CUSTOMS ACT article 96 and ENFORCEMENT RULE ON CUSTOMS ACT article 48, customs duties on 
personal effects carried or sent separately by any traveler may be exempted, and exempted duties 
shall not exceed 600 US dol lars. 
 
8. What are the main differences between the express cargo clearance process and the postal 
clearance process?  
 
ANSWER : 
As for express cargo clearance, goods for personal use under USD  150(USD  200 for goods from the 
US) are cleared when the buyers submit the Item List (omits import declaration). Goods from 
USD 150 (USD  200 for goods from the US) to USD  2,000 are cleared thr ough the Simplified Import 
Declaration process. As for postal items clearance, goods for personal use under USD  150 are cleared WT/TPR/M/414/Add.1  
 
- 224 - 
 
  after inspection (X -ray and documents) without the need for import declaration. Goods under 
USD 1,000 go through Simplified decl aration procedures.  
 
9. How does each clearance process determine compliance with regulatory or technical 
requirements?   
 
ANSWER : 
As for express cargo clearance, goods for personal use under USD  150 (USD  200 for goods from the 
US) are cleared when the buyers submit the Item List (omits import declaration). Goods from 
USD 150 (USD  200 for goods from the US) to USD  2,000 are cleared through the Simplified Import 
Declaration process. As for postal items clearance, goods for personal use under USD  150 are c leared 
after inspection (X -ray and documents) without the need for import declaration. Goods under 
USD 1,000 go through Simplified declaration procedures.  
 
Page 57, paragraph 3.13:   
10. With respect to the e -commerce blockchain pilot, which e -commerce entities are involved and 
which entities contribute to the blockchain?  With respect to considerations of a new UNI -PASS 
platform based on blockchain, how is KCS obtaining input from traders and the private sector?  
 
ANSWER : 
KCS did a pilot project on blockchain from 2018 to 2019 regarding three areas: export cargo 
clearance, C/O exchange among nations, and e -commerce among nations. In 2020, KCS completed 
a pilot project regarding information exchange, with supply chain businesses, such as merchants on 
e-commerce, express cargo industries, customs brokers, etc.  
Based on the results, we will continue to review the possibility of utilizing blockchain for UNI -PASS. 
Also, we plan to build a cooperative system with relevant businesses and encourage public 
participation through briefing sessions.  
 
Page 59, paragraph 3.23:   
11. What is the process for traders to correct declarations when they discover a mistake in the data 
filed?  Are the corrections made through UNI -PASS? 
 
ANSWER : 
There is a procedure regardi ng Correction of Errors, which is linked to UNI -PASS. Depending on the 
date the taxpayer realizes the error, there are four specific procedures: Self -Correction, Application 
for Revision, Amendment, and Request for Rectification. There is also a procedure that requests the 
content from the head of a customs office or an application from the taxpayer before any corrections 
can be made.  
 
Page 73, paragraph 3.1.6:  
12. The Secretariat Report states that Korea revised the Enforcement Decree of the Customs Act, 
which "involved the strengthening of the procedural interest protection of parties, supplementing 
the investigation procedure, and amending the industry injury investigation procedures." According 
to the Report, these revisions went into effect on 1 J anuary 2021. When will these revisions be 
notified to the WTO Committee on Anti -Dumping Practices ? 
 
ANSWER : 
We will notify it within this year, including other revisions currently  being prepared.  
 
Page 90, paragraph 3.124 : 
13. The 2020 Medical Devices Industry Act contains support provisions for medical device companies 
to receive a "certification of innovation" for reaching specified thresholds of sales and/or research 
and development expenditure, allowing them "preferential pa rticipation in national projects." Do 
these provisions sunset at a given time (i.e., once the COVID -19 pandemic ends), or are these 
provisions permanent?  
 
ANSWER : 
The provisions were introduced in April, 2019 to foster an industrial environment that focuses on r
&D of innovative medical devices, and are permanent provisions that defined the target and scope 
of the policy without any relation to the outbreak and sprea d of COVID -19. Innovative medical devi
ces companies" refers to medical devices companies that conduct R&D and investment activities in 
Korea, and there are no restrictions on the participation of global companies.  WT/TPR/M/414/Add.1  
 
- 225 - 
 
  14. Can foreign companies setting up manuf acturing or research and development facilities in Korea 
qualify for this "preferential participation," or does this support only extend to Korean companies?   
 
[ANSWER]  
The provisions in question are for nurturing the industry through supporting medical devices 
companies, and are permanent provisions that defined the target and scope of the support (they 
were enacted in Apr.2019, and are not provisions enacted for preparing for the outbreak and spread 
of Covid -19). "Innovative medical devices comp anies" refers to medical devices companies that 
conduct R&D and investment activities in Korea, and the restrictions are limited to their sales and 
R&D investments, thus global companies can participate too.  
 
15. The paragraph states that "[since] April 20 21, consultation on tax privileges were under way 
with the financial authorities." Can Korea provide an update on the status of this consultation ? 
 
ANSWER : 
The above question is about the part requested to be deleted as it is different from the fact and 
therefore there is nothing to answer.  
 
Page 80, paragraph 3.89, and page 89, paragraph 3.119:  
16. How long  does KEXIM plan to continue COVID -19 related programs to support Korean economic 
growth?  
 
ANSWER : 
KEXIM's  COVID -19 financing programs have been designed and operated in cooperation with both 
public and private financial institutions, considering the financial market situation. And depending 
on the COVID -19 situation, it would be decided whether the program wi ll be continued or not.  
 
Page 80, paragraph 3.89:   
 
Question 17.  The report notes that "To strengthen the competitiveness of SMEs, the EXIM Bank 
continued to expand support, mostly provided in the form of comprehensive export loans for SMEs 
and trade finan ce." What are the terms and conditions of these SME loans? How are KEXIM's 
expanded comprehensive export loans for SMEs different than its standard export credit or trade 
finance products?  
 
ANSWER : 
Comprehensive Export Loan, now we call Export Growth Loan, is a product as indicated in our website 
with the terms and conditions. The major difference is that the borrowing amount of Export Growth 
Loan (that is, Comprehensive Export Loan) is based on expo rter's past export records, which is 
intended for client's convenience, while standard export credit and trade finance products are based 
on each export contract or transaction.  
 
Page 80, paragraph 3.89:  
18. KEXIM  indicated in an interview with TXF that it is creating a push/pull program (i.e. a program 
involving support for foreign exporters that source from Korean suppliers). What is the status of this 
new program?  
 
ANSWER : 
Regarding financing support for foreign  exporters, KEXIM provides Import Facilitation Loan such as 
financing to entities (including foreign exporters) that contribute to import transactions.  
 
Page 81, paragraph 3.90:  
 
19. Since K -SURE is reinforcing support for advancement into new markets and innovative 
industries, is the government determining the amount of risk K -SURE can take on to pursue these 
goals? If so, what is the risk appetite?  
 
[ANSWER]  
K-SURE has established and implemented its operational plan at its own discretion. K -SURE is 
reinforcing support for advancement into new markets and innovative industries through measures 
such as expansion of new business opportunities.  
- Provision of worldwide reinsurance entailing regional diversification  WT/TPR/M/414/Add.1  
 
- 226 - 
 
  - Actively taking part in inter national financing events, as well as improving cooperative relationships 
with DFIs, MDBs, and other international financial institutions.  
 
Page 88, paragraph 3.118:  
20. Please provide additional details on the funds provided by KDB to "industries of the f uture." 
Please explain what constitutes an industry of the future and the amount and type of funding 
provided . 
 
ANSWER : 
• Funding Instruments for Supporting Industries  of the  Future  
 
Names of Funding Instruments  Types of Funding 
Provided  Target Companies and Use of Proceeds  
Innovative Growth Industry 
Support Program  Loan 
Investment  AllCompanies  
For financing capex, R&D, and workingCapital  
Industrial Structure Acceleration 
Support Program  Loan 
Investment  SMEs and MEs  
For financing capex, R&D, and workingCapital  
Start-up Support Program  Loan 
Investment  Start-upsand SMEs  
For financing capex, R&D, and workingCapital  
 
• The KDB classifies industries of the future into nine macro themes such as advanced 
manufacturing and au tomation, renewable energy, and ICT, with a further breakdown of the 
themes into 300 specific categories. In 2020, the volume of funding provided to companies 
eligible under the nine thematic categories totalled  KRW 21.6 trillion  
(Loan:KRW  21.1trillion,FixedIncomeinvestment:KRW  0.3trillion,Stockinvestment:KRW  0.2 
trillion).  
 
Nine Thematic Categories of Industries  of the Future  
Themes  #of items  Examples of items  
State -of-the-art manufacturing and automation  31 Robot,SmartCar,3Dprinting  
Chemicals and new materials  37 Carbonfiber  
Energy  40 Clean/Renewableenergy,  
Energystorage  
Environment and sustainability  30 SmartFarm  
Health and diagnostics  40 Biosimilar  
Information and communications  43 5gnetwork,BigData  
Electrical and electronic  29 SystemSemiconductor  
Sensor and measurement  23 ADAS,Lidar  
Knowledge -based service  27 Game,MediaContents  
 
Page 94, paragraph 3.135:  
21. The Secretariat notes that a regulatory impact analysis (RIA) is required under Korean law.  Does 
Korea apply a financial impact threshold over which such analyses must be conducted?  Are there 
other criteria used to determine which legislation is subject to an RIA?  
 
ANSWER : 
In Korea, the government is required by the Framework Acton  Administrative Regulations to conduct  
RIAstate when establishing a new regulation or reinforcing existing regulations. All regulations 
defined by the Framework Act on Administrative Regulations fa ll under the requirement of the RIA, 
including all primary and secondary laws within the jurisdiction of central administrative agencies. 
When introducing a new regulation or reinforcing existing regulations, a cost -benefit analysis should 
be conducted as a part of the RIA. The cost is categorized as direct cost (administrative burdens, 
direct labor cost, education cost, cost of external service, etc.) and indirect cost.  
 
22. The paragraph notes that KATS is developing a "technical regulatory impact assessment" to 
review technical regulations.  Would this assessment system apply to all reviews, or only those 
conducted by KATS?  
 
ANSWER : 
A "Technical Regulatory Impact Assessment"  is conducted on technical regulations that are newly 
established or strengthened by all Ministries and Government agencies, including the Korean Agency 
for Technology and Standards (KATS).  
 WT/TPR/M/414/Add.1  
 
- 227 - 
 
  Page 94, paragraph 3.136 : 
23. Can Korea provide a list (or a webs ite) showing which "KS" voluntary standards have been 
established by Korean ministries in different sectors, such as medical devices, food products, wood, 
and paper?  
 
ANSWER : 
The National Standard Certification Integrated Information System ( https://standard.go.kr ) 
consolidates and provides information regarding various KSs  established by 12 different 
administrative bodies, including the Ministry of Trade, Industry and Energy, the Ministry of Food and 
Drug Safety, the Ministry of Agriculture, Food and Rural Affairs, the Korea Forest Service, etc. 
However, information regardi ng KS in the Broadcasting & Communication sector, established by the 
Ministry of Science and ICT, is provided on the National Radio Research Agency's website 
(https://www.rra.go.kr/ko/reference/ kcsList.do ). 
 
Page 94, paragraph 3.137:  
24. Can Korea provide an update on the status of the KATS "national standards coordination 
projects" for the sectors of "smart health," "next generation steel," and "wearable smart 
equipment"?  
 
ANSWER : 
KATS has comp leted KS advancement for Smart Health, Next Generation Steel, Wearable Smart 
Equipment, etc. And as a new national standards coordinator project,  KATS  is working  on 
promoting  Smart Manufacturing, Self -driving Cars, Carbon Neutrality, Electrical and Electro nic 
Systems, Services, and Artificial Intelligence sectors.  
 
Page 96, paragraph 3.145 : 
25. Does Korea have any plans to increase regulatory capacity, training, and resources to further 
reduce the lengthy timeframes shown for medical devices requiring health technology assessment?  
 
ANSWER : 
Currently, there are four steps in the procedure for registering treatment materials pursuant to the 
National Health Insurance Act. First, they check the material's safety and efficacy; second, they 
check it s replaceability and cost effectiveness through economic feasibility assessment; third, they 
assess the appropriateness of reimbursement considering the financial conditions of the health 
insurance; finally, there is a step of a comprehensive assessment th at determines whether it is for 
reimbursement or non -reimbursement. The current procedure is the minimum  procedure that 
considers the people's safety and for preventing an increase in the people's burden due to the 
excessively large scale of the health ins urance's finance. However, the system of a priority 
assessment (simplified review) can reduce the time it takes to go through the procedure, for 
materials that have the equivalent or similar cost effectiveness or functions compared to the items 
under the s ame category that are already registered and at the same time being applied for a price 
below the cap for the items under the same category.  
 
Page 101, paragraph 3.160:   
26. The paragraph notes Korea's plan to introduce a "use -by-date" labelling  system to inform 
consumers of a safe consumption period. Please explain if Korea intends to have food products 
labeled  with both an "expiration date" and "use -by-date." If so, will Korea exempt imported products 
not intended for direct human consumption f rom the "use -by-date" requirement?  
 
[ANSWER]  
Pursuant to the amendment of the Act on Labeling and Advertising of Foods, "sell by date" is replaced 
by "use by date" and the amendment will come into effect on January 1, 2023. Regardless of usage, 
whether it be for raw ingredient or for direct human consumption, the products currently subject to 
the "sell by date" labeling system will be required to be labeled with "use by date."  
 
Page 102, paragraph 3.166:  
27. Considering the final date of January 1, 2022, for full implementation of Korea's positive list 
system covering plant products, please explain if Korea anticipates it will complete all import 
tolerance application reviews received prior to this date.  
 WT/TPR/M/414/Add.1  
 
- 228 - 
 
  ANSWER : 
As the Korean government has reiterat ed via various routes, import tolerances for which applications 
were filed until 1  June 2021, will be established within this year.  
 
28. Please explain if Korea will permit the entry of food goods under temporary pesticide MRL 
provisions for those products  exported prior to January 1, 2022. Similarly, what import tolerance 
allowances will be given to agricultural products grown/produced prior to January 1, 2022?  
 
ANSWER : 
Temporary MRLs will be applied to food goods shipped before January 1, 2022, since pest icide MRLs 
are applied to imported foods according to the shipping date.  
 
Page 104, paragraph 3.171:  
29. The Secretariat Report states that, in accordance with CODEX guidelines and OECD Biosafety 
Consensus Documents, safety of LMOs for food is evaluated under the principle of substantial 
equivalence based on scientifically valid and justified data and that au thorities consider that the 
approval procedure is legitimate and does not lead to unnecessary delays. Korea also notes that its 
authorities "consider that there were neither overlaps of data requirements nor unnecessary delays 
in the LMO food -approval proc ess." 
 
Please confirm that the criteria by which Korean authorities assess food safety and environmental 
risk assessments of biotechnology products and LMOs are based on existing international standards, 
guidelines, or recommendations such as the Codex Ali mentarius or other standards created by 
standard setting bodies, such as the OIE and IPPC.  
 
ANSWER : 
The Ministry of Food and Drug Safety (MFDS) evaluates the food safety of LMOs in accordance with 
the law and regulations based on the CODEX guidelines, OECD  Consensus Documents and Cartagena 
Protocol on Biosafety.  
 
30. Could Korea please elaborate on its approval procedure for biotechnology products and LMOs , 
specifically the criteria by which its authorities coordinate and issue requests for further data and 
information?  
 
ANSWER : 
While food safety assessment of LMOs is conducted by the MFDS, environmental risk assessments 
of LMOs are carried out by the rele vant ministries (the Rural Development Administration for crop 
cultivation environment, the National Institute of Ecology for natural ecosystem, and the National 
Institute of Fisheries Science for fisheries environment and marine ecosystem). Each committee  run 
by the relevant agencies may request omitted data according to the related regulations and demand 
for additional information on the applications for clarification. Also, relevant information and 
explanatory materials can be requested from the applican ts for any safety issues.  
 
31. Additionally, can Korea please elaborate on how authorities across ministries including MFDS, 
the Rural Development Administration, the National Institute of Ecology, and the National Fisheries 
Research and Development Instit ution coordinate to ensure that the approval procedure does not 
encounter unnecessary delays or involve repetitive and/or overlapping data requirements?  
 
ANSWER : 
The Republic of Korea carries out LMO approval evaluation in accordance with international 
agreements and domestic law; and since 2017, it has been making continuous efforts to improve 
the evaluation process and enhance the efficiency of the evaluation, for example, by minimizing 
overlapping complementary documents by operating the "Consultative b ody for risk assessment of 
LMO."  
 
However, in the environmental risk sector, the Ministry of Agriculture, Food and Rural Affairs  is in 
charge of the crop growing environment, the Ministry of Oceans and Fisheries is in charge of the 
marine and fisheries environment, and the Ministry of Environment is in charge of the natural 
environment. The evaluation system has been improved to pr event overlapping. Since there are 
different areas of competency for environmental risk and the national interest in the issue is high, 
maintaining the current evaluation system would be inevitable.  
 WT/TPR/M/414/Add.1  
 
- 229 - 
 
  32. The paragraph mentions Korea's assertion that there  are "neither overlaps in data requirements 
nor delays in the LMO food -approval process." However, stakeholders continue to report extensive 
challenges associated with the registration of genetically engineered food and agricultural products 
in Korea. Plea se explain why LMO application data requirements extend well beyond global practices 
and guidelines.  
 
[ANSWER]  
The Ministry of Food and Drug Safety(MFDS) evaluates food safety of LMOs  in accordance with the 
law and regulations based on the CODEX guidelines, OECD Consensus Documents and Cartagena 
protocol on Biosafety.)(While food safety assessment of LMOs is conducted by MFDS, environmental 
risk assessments of LMOs are carried out by t he relevant ministries(the Rural Development 
Administration for crop cultivation environment, the National Institute of Ecology for natural 
ecosystem, and the National Institute of Fisheries Science for fisheries environment and marine 
ecosystem. The stand ard of LMO risk review/assessment would vary by countries.  
- We would improve the predictability of review/assessment and rationality of regulations if we 
decide it is not rational through relevant ministries and professional's review.  
Basically, there is  no redundant review process because we request additional information based on 
living modified organism review process according to Consolidated Public Notice Annex 10 -1 of LMO 
Act. 
- We confirmed several times that there is no redundancy in the data requ ested in reviewing process 
between all review agencies.  
- As some cases were confirmed to similar data, we had tried to request the integrated data for 
convenience of applicants in such case.  
 
Page 105, paragraph 3.176:   
 
Question 33 . Please explain when Korea plans to fully align its import requirements with guidelines 
of the World Organization for Animal Health for bovine spongiform encephalopathy (BSE). If Korea 
does not plan to align its requirements with these guidelines, please explain why not.  
 
ANSWER : 
Korea is operating animal import requirements in accordance with international standard such as 
OIE standards.  
In case of BSE in 2008, the Act on the Prevention of Contagious Animal Diseases was revised to 
prepare import health requirements for be ef which are stricter than international standards. The 
Korean Government will continue to work to align its domestic regulations with international 
guidelines through consultations with the National Assembly.  
 
Page 116, paragraph 3.212:  
34. The Secretari at notes that "the budget for government support for public institutions was KRW 
100.6 trillion." What portion of that government support goes to the 36 state -owned enterprises? 
To what extent do these 36 state -owned enterprises compete with private sector  companies?  
 
ANSWER : 
The proportion of SOEs in the budget provided to public institutions is about 7.1%. Most SOEs  
manage national infrastructure such as roads, railroads and energy, so they do not compete with 
the private sector in the area.  
 
Page 117, Table 3.4:  
35. How does the Korea Development Bank's (KDB's) in -kind contribution affect KEXIM's operations? 
Do KEX IM and KDB work together in financing medium to long -term (or other types of) transactions 
due to this relationship?  
 
ANSWER : 
KDB's contribution in kind was made to ensure KEXIM is complying with its capital adequacy 
requirements and prudential practice an d guidelines. KDB is not a member of the operating 
committee concerning the operations and managements of KEXIM,  and KEXIM operates 
independently, separate and apart from KDB . KEXIM and KDB  operate and work independently in 
accordance with each mandate indicated by the establishment law of each institution.  
 WT/TPR/M/414/Add.1  
 
- 230 - 
 
  Page 117, Table 3.4:  
36. Neither the Korean Overseas Infrastructure and Urban Development Corporation (KIND) (of 
which KEXIM is a shar eholder) nor KEXIM's Economic Development Promotion Facility (formerly 
known as Development Finance) are mentioned in the report or this table. Do either of these entities 
support Korean exports or exporters?  
 
ANSWER : 
The Korea Overseas Urban Development Corporation (KIND) does not support exports or exporters. 
KIND is an institution that supports overseas investment development projects (PPP) of Korean 
companies. The  main functions are to develop PPP projects, such as business feasibility studies for 
projects expected to participate in Korean companies, and to provide financial services such as equity 
investment in PPP projects involving Korean companies.  
 
Page 117, Table 3.4:  
37. Neither the Korean Overseas Infrastruct ure and Urban Development Corporation (KIND) (of 
which KEXIM is a shareholder) nor KEXIM's Economic Development Promotion Facility (formerly 
known as Development Finance) are mentioned in the report or this table. Do either of these entities 
support Korean  exports or exporters?  
 
ANSWER : 
Based on the untying ODA principle, the Economic Development Promotion Facility ( EDPF) focuses 
on the economic development of partner countries and has no association in any kind with Korean 
companies' co -operation or engagement. The EDPF does not impose any requirements for the 
participation of Korean companies or Korean contents on each transaction. EDPF adopts 
International Competitive Bidding regarding the procurement of projects. In other words, all 
procurement of goods, works, and services are eligible for the EDPF regardless of the nationality of 
the contractors and the country of or igin. 
 
Page 117, Table 3.4:  
38. Do the following entities receive government support? If so, please provide details on the amount 
and type of support  on 'Korea Agro -Fisheries and Food Trade Corp. (aT) ' 
 
ANSWER : 
aT (Korea Agro -Fisheries and Food Trade Corporation) is a public institution which was established 
by the Korea Agro -Fisheries and Food Trade Corporation Act with an aim to stabilizing supply and 
demand of agricultural, forest, livestock and fishery products while promo ting the food industry. As 
of 2020, the government investment is 68.3 billion won. aT does not receive government support 
other than the investment.  
 
39. Do the following entities receive government support? If so, please provide details on the 
amount and type of support  on 'Korea National Oil Corp .' 
 
ANSWER : 
 
(Million WON)  2021  
Issuance of share capital  69,047  
Government grant s 610 
Consigned Management Fees  424 
Total 70,081  
 
Page 118, paragraph 3.214:  
40. The Secretariat Report notes that as part of its post -pandemic strategy, Korea plans to put in 
place flexible procurement procedures for publicly funded projects to provide intensified support to 
small businesses negatively affected by the pandemic. Please elaborate on any further details 
availabl e about the forthcoming flexible procurement procedures and the likely timeline for their 
implementation. Will such flexibilities and support extend to foreign -owned small businesses?  
 
ANSWER : 
 
We are putting in place the following measures to promptly overcome the difficulties triggered by 
the pandemic and ease the burdens of small -sized businesses. The measures shall take effect from 
May 1, 2021 to December 31, 2021.  
 1. 50% reduction of bid b ond and performance bond  WT/TPR/M/414/Add.1  
 
- 231 - 
 
   2. Shortened inspection period, payment period and bid announcement period  
 3. Increased limit of advance payments  
 
In case of inevitable delay or non -fulfilment  of a contract due to COVID -19, liquidated damages for 
delay will not  be imposed and performance bond's reversion to the National Treasury or a local 
government will be exempted.  
This measure does not treat a party under the WTO Agreement on Government Procurement less 
favorably than other domestically established supplier s. 
 
Page 125, Section 3.3.7:  
41. In January 2021, amendments to the Copyright Act were introduced in the National Assembly 
that proposed to amend certain provisions of the Copyright Act, including provisions on digital sound 
transmissions, portrait rights, and extended collective licensin g. What is the current status of that 
legislation?  
 
ANSWER : 
The proposed complete amendment of the Copyright Act is now pending at the Culture, Sports and 
Tourism Committee of the National Assembly. It is currently not in progress at the committee and 
expected to be discussed not earlier than November, with the schedule to be determined.  
 
Page 130, paragraph 3.255:  
42. The Secretariat's Report notes that "The Trademark Act and the Fishery Products Quality Control 
Act protect GIs that are registered and provide a registration process". Can  Korea confirm that a 
ground for refusing protection of a GI, under both the Tradema rk Act and the Fishery Products 
Quality Control Act, is if the term is the common name for a good?  
 
ANSWER : 
According to Article 32.9 of the Fishery Products Quality Control Act, if the term is a common name 
for a good, the registration of a GI  will be ref used.  
(The Trademark Law 33(1)) Trademark registration may be obtained, excluding the following 
trademarks: 1. A trademark consisting solely of a mark indicating, in a common manner, the 
common name of the goods  
 
43. For any terms that are presented on a list pursuant to a trade agreement, will Korea examine 
these terms, apply any relevant grounds for refusal, and allow for opposition and cancellation 
proceedings ? Please clarify the grounds of refusal that may be applied to these terms, if a pplicable.  
 
ANSWER : 
Article 15 of the enforcement decree of the Fishery Products Quality Control Act states clearly the 
grounds for refusing the registration of a GI. (1) The product's advantage should be widely known 
either domestically or overseas, (2) the quality and reput ation of the product should have 
geographical characteristics, and (3) the production and processing should be done in the relevant 
area.  
 
Question 44 . Can Korea confirm that individual generic components that are part of a compound 
name GI will not be pr otected?  
 
ANSWER : 
The Trademark Law rules that a trademark consisting solely of a mark indicating, in a common 
manner, the common name of the goods cannot be registered (the Trademark Law 33(1)(i)), the 
Trademark Examination Guidelines(p.51907) also rules  that in case of compound name GI consisting 
of Geographical name and a type of product which is protected under FTAs, the type of product is 
not protected because it is a generic term.  
 
45. How does Korea notify interested parties that an individual gene ric component in a compound 
name GI is not protected? For example, is this information included in an online database, on a 
registration certificate, or in an official publication?  
 
ANSWER : 
The Trademark Law(33(1)(i )) and the Trademark Examination Guidelines (p.51907) containing this 
information can be found at the websites of KIPO.  
 WT/TPR/M/414/Add.1  
 
- 232 - 
 
  Page 133, paragraph 3.274:  
46. The Secretariat Report states that while "copyrights do not need to be registered to obtain 
protection ..., registration offers advantages." What are these advantages?  
 
ANSWER : 
The current Copyright Act in Korea is fully reflects the  Berne Convention. Copy right arises 
automatically when a work that qualifies for protection is created and does not require any formality 
to enjoy or exercise (Copyright Act Article 5(2)). Thus, unregistered works are also fully protected 
by the Copyright Act and there is no suc h limit or discrimination in the exercise of right depending 
on the  registration status. Once registered, the person whose real name is registered as the author 
shall be presumed to be the author of the registered work, and the work whose date of creation or 
the date on which it has been made public for the first time is registered shall be presumed to have 
been created or made public for the first time on the date it has been registered, without proof to 
the contrary (Article 53(3) of the Copyright Act). Also, any person who has infringed upon registered 
copyright or  related rights shall be presumed to have been negligent (Article 125(4) of the Copyright 
Act). 
 
Page 133, paragraph 3.274:  
47. The Secretariat Report states that 653 compulsory/statutory licenses for literary, 
cinematographic, and musical works were granted f rom 2016 to 2020 compared to 24 
compulsory/statutory licenses granted from 2012 to 2015. What are the reasons for such a large 
increase in number of licenses granted in the later period compared to the earlier period?  
 
ANSWER : 
The presidential decree of the Copyright Act was amended in July 2015, simplifying the application 
process of the compulsory/statutory licenses including shortened notice period and relaxed 
requirements. This amendment seems to have influence on the increase in number of licenses 
granted. Also, a large amount of license application by the National Museum of Modern and 
Contemporary Art (MMCA) since 2017, for the Government Artworks of which the competent 
authority has been changed from the other ministries to the Ministry of Culture, Sport and Tourism, 
to upload on the website of the MMCA Art Bank or publish in forms of catalogue was one of the 
reasons of a large increase.  
 
Page 133, paragraph 3.275:  
48. The Secretariat Report describes the activities of a "compensation group" distri buting 
remuneration that had previously been undistributed. What is the membership of this "compensation 
group"? What are the other activities of the "compensation group"? What oversight exists over the 
activities of the "compensation group"?  
 
ANSWER : 
 
The right to receive remuneration shall be exercised through an organization  that meets the  following 
requirements of Article 25(7) of the Copyright Act, which has been designated by the Minister of 
Culture , Sports and Tourism, with the prior consent of th e organization.  
1. Organization comprising persons who have the right to receive remuneration within the Republic 
of Korea;  
2. Organization not aiming at profit -making;  
3. Organization fully capable of performing the duties of collection, distribution, etc ., of remuneration . 
The remuneration recipient organizations are primarily responsible for collecting and distributing 
remuneration. In addition, for the remuneration left undistributed for more than 5 years from the 
distribution notice, the organizations could run the business designated under the Copyright Act 
25(10) such as supporting the creation activity of the copyrighted works, with the approval of the 
Minister of Culture, Sports and Tourism. The organizations are engaged in activities to protect and  
remedy the right holders eligible for the remuneration.  
The Ministry of Culture, Sports and Tourism (MCST) may cancel the designation when (1) the 
remuneration  recipient organization does not meet the designation requirements, (2) the 
organization violate s the remuneration -related business regulations, or (3) there is a risk of harming 
the interests of the remuneration right holders by suspending remuneration -related business for a 
considerable period, according to Article 25 (9) of the Copyright Act. In a ddition, the MCST evaluates 
and manages the capabilities of the remuneration recipient organizations through annual business 
inspections and re -designation reviews held every three years.  
 WT/TPR/M/414/Add.1  
 
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  Page 135, Section 3.281 :  
Question 49 . The Secretariat Report states that a damages compensation system, under which 
online open market platforms compensate for damage resulting from the purchase of counterfeit 
products first and then claim indemnity from the individual seller, has been estab lished. Please 
provide more information about the newly established damages compensation system and, in 
particular, a detailed explanation of how it operates.  
 
ANSWER : 
This damages compensation system, which is not a policy of the Korean government, is 
independently run by some online open market platforms.  
 
4. TRADE POLICIES BY SECTOR  
 
Page 160, paragraph 4.3.2.6, footnote 42:  
50. The Secretariat Report references Korea's definition of "new and renewable energy," including a 
change made in October 2019 to no longer include non -renewable waste energy in the definition of 
"renewable energy." However, it does not explain this change. Please describe why Korea decided 
to alter its definition of "renewable energy" to no longer include non -renewable waste  energy.  
 
ANSWER : 
Non-renewable waste is excluded to match the domestic standards of renewable energy with 
international standards.  
 
P. 170, paragraph 4.172:   
 
Question 51.  The Secretariat Report notes that "financial institutions' use of cloud computing based 
abroad had been limited to 'non -critical information' […]." Industry stakeholders have raised 
concerns that, even for non -critical information, it is bureaucratically onerous to qualify for 
permission to use cross -border cloud computing. Does Korea plan any reforms to make it easier for 
financial institutions to use cloud computing based abroad, and for cloud computing service providers 
to qualify to offer such services ? Does Korea plan to allow financial institutions to use cloud 
computing based abroad for critical information?  
 
ANSWER : 
Korea revised the regulation in 2018 to revitalize using a cloud of financial companies. However, the 
use of services by overseas -based cloud computing service providers (CSPs) requires sufficient 
consideration for consumer protection and securing supervisory rights, so a mid - to long -term review 
of further revisions is required.  
 
Page 177, paragraph 4.215:  
52. Can Korea p rovide a status update on the "5G+ Strategy," including timelines regarding 
sector/product priorities among the "10 core industries and 5  core services," as well as 
implementation plans? Can foreign stakeholders provide comments on the Strategy's prioritie s? 
 
ANSWER : 
After the announcement of the "5G+ Strategy (April 2019)," the Ministry of Science and ICT 
established the annual implementation plan for the 5G+ Strategy and announced the "5G+ 
Convergence Service Diffusion Strategy (August 2021)." Data for the strategies can be disclosed, 
and foreign stakeholders can also present their points of view on priorities.  
 
Page 178, paragraph 4.218 : 
53. Can Korea provide a status update on the "5G+ Spectrum Plan?"  
 
ANSWER : 
In order to improve unlicensed technology to the 5G level, the 6GHz band was first supplied as the 
next-generation Wi -Fi frequency (October 2020), and regulatory improvement for other types of 
unlicensed technology (e.g. IoT, sensing) is under way. In 2020, we introduced a frequency ban d 
maintenance evaluation and forecasting system that notifies users of the maintenance time and 
expected measures in advance, and established a clearing house system in charge of recovery and 
relocation and joint use. The plan is to secure 1,870 MHz bandwi dth by the end of 2021 and an 
additional 770 MHz bandwidth by 2026.  
 WT/TPR/M/414/Add.1  
 
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  Part II. Questions based on the Government Report (WT/TPR/G/414)  
 
3 ECONOMIC POLICY  
 
Page. 5, paragraph 3.4:  
54. As part of the "Digital New Deal," Korea indicates it "aims to create a strong ecosystem for the 
data, network, and A.I. industries […] by supporting the use of and convergence among data, 5G, 
and AI technologies across all industries." Nevertheless, Korea maintains significant controls on the 
use of cross -border clou d computing services (e.g., by financial institutions and public agencies). 
Given the importance of cloud computing and cross -border data flows to data, network, and AI 
industries, how will Korea ensure that foreign, cross -border suppliers are able to part icipate equally 
in the Digital New Deal?  
 
ANSWER : 
Currently, domestic and foreign cloud service providers are not restricted from participating in the 
Digital New Deal project. However, in some areas where security is important and sensitive, both 
domestic and foreign businesses service providers, who have certified security assurance programs, 
can participate in the project. The Cloud Security Assurance Program applies to both domestic and 
foreign cloud service providers to maintain data security i n the public sector, and cannot be regarded 
as excessive requirements. Other countries are also operating cloud data centres dedicated to the 
public sector in its territory.  
 
Page 6, paragraph 3.5:  
55. The report states that the government is pushing for a "Green New Deal" to decarbonize the 
economy, including a "green transition" and innovation in "green industry". However, it is unclear 
what the term "green" means in this context. Could Korea please de fine what it means by "green 
transition" and "green industry" in the context of the proposed "Green New Deal"?  
 
ANSWER : 
Green transition means improving and innovating the overall economy and society in order to 
prioritize the realization of green values that increase energy and resource efficiency and prevent 
climate change and pollution.  
The green industry refers to an industry that replaces fossil fuel that emits GHGs, and increases the 
efficiency of energy and resources for "Net Zero" and "Green New De al". The definition is based on 
the Framework Act on Net Zero and Green Growth for Response to Climate Crisis (tentative English 
name).  
 
Page 6, paragraph 3.10:  
56. Could Korea please elaborate on its various measures to effectively manage fisheries resources, 
in particular the self -management fisheries system? How does this system effectively combat 
overfishing and IUU fishing?  
 
ANSWER : 
Self-management fisheries syst em is a system that encourages fishers to regulate themselves, so 
that they can voluntarily protect fisheries resources. The government evaluates these fisheries 
communities and encourages well -performed ones on an  annual basis.  
 
Page 6, paragraph 3.11:  
57. Could Korea please elaborate on its efforts to collect lost or discarded fishing gear?  
 
ANSWER : 
To protect spawning sites and prevent ghost fisheries, Korea has been cleaning more than 
2,500  tonnes of discarded fishing gear and debris since 2009.  
 
Page. 8, paragraph 3.22:  
58. Korea notes that content (games, drama, films, music) have become major export businesses. 
Much of this export success has been based on the distribution of Korean content worldwide by 
foreign digital streaming services. However, there are concerns that Ko rea has undertaken 
measures, and is considering new ones, that disadvantage foreign streaming services in its domestic 
market (e.g. mandating payment of "network fees" to internet operators). As Korea expands its 
trade in services, how will Korea reflect t he interdependence of content providers and distribution WT/TPR/M/414/Add.1  
 
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  services, and ensure that foreign content providers and distribution services are provided national 
treatment in the Korean market?  
 
ANSWER : 
Currently, the Korean government does not mandate network  usage fees. Network usage fees are  
a matter of voluntary  consultations between CPs and ISPs.  There is a lawsuit going on in regard to 
network usage fees in Korea. With the exception of Google and Netflix, domestic and foreign CPs 
are paying domestic ISPs for network use, so it has nothing to do with the issue of national treatment.  
 
 
UNITED STATES  – REVISED ANSWER  
44. Can Korea confirm that individual generic components that are part of a compound name GI will 
not be protected?  
 
ANSWER  
Korea does not protect individual generic components that are part of a compound name GI. The 
Trademark Law rules that a trademark consisting solely of a mark indicating, in a common manner, 
the common name of the goods cannot be registered (the Trademark Law 33(1)(i )), the Trademark 
Examination Guidelines(p.51907) also rules that in case of compound name GI consisting of 
Geographical name and a type of product which is protected under FTAs, the type of product is not 
protected because it is a generic term.  
 
  WT/TPR/M/414/Add.1  
 
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  UNITED STATES – FOLLOW -UP QUESTIONS  
Question 34: The Secretariat notes that "the budget for government support for public institutions 
was KRW 100.6 trillion." What portion of that government support goes to the 36 state -owned 
enterprises? To what extent do these 36 state -owned enterprises compete with private sector 
companies?  
 
Answer to U.S. Question 34: The proporti on of SOEs in the budget provided to public institutions 
is about 7.1%. Most SOEs  manage national infrastructure such as roads, railroads and energy, so 
they do not compete with  the private sector in the area.  
 
U.S. Follow -up Questions:  
 
1. Which of the 36 SOEs do not "manage national infrastructure"?  
[Answer]  
Kangwon  Land(gambling business on Koreans), Grand Korea Leisure(gambling business on 
foreigners), Korea Housing and Urban Guarantee Corporation, Korea Horse Racing Authority, Korea 
Broadcast Advertising Corporation, Korea Real Estate Board, Jeju free internationa l City 
Development Center  
 
2. Do those SOEs that do not "manage national infrastructure" compete with the private sector?  
 
[Answer]  
Except for Grand Korea Leisure, which compete with private casinos, Other SOEs are guaranteed 
exclusive status in their own business.  
 
3. Are private energy companies in competition with SOE energy companies? If not, why not?  
 
[Answer]  
- Electricity : In the power generation sector, 5 State -owned power generation companies are 
competing with private power generation companies in the power exchange market.  
- Gas : The wholesale business of natural gas in Korea is a public business that prioritizes the 
country's energy security by ensuring a reliable and uninterrupted supply. Since the wholesale 
business includes operat ions of LNG receiving terminals and pipeline networks, the Korean 
government granted the exclusive authority of natural gas wholesale to a state -owned company, 
Korea Gas Corporation(KOGAS). However, it is worth noting that competitive factors have increase d 
a lot as private businesses can import natural gas for their own consumption purposes, and private 
businesses' natural gas imports, which began in 2005, exceed 22% of Korea's total natural gas 
imports.  
- Oil : KNOC(Korea National Oil Corporation) does no t compete with private energy companies as it 
is in charge of petroleum reservation necessary for national security.  
 
Answer to U.S. Question No. 20:  Funding Instruments for Supporting Industries of the Future  
 
Names of Funding 
Instruments  Types of Funding  
Provided  Target Companies and Use of Proceeds  
Innovative Growth Industry 
Support Program  Loan 
Investment  AllCompanies  
For financing capex, R&D, and 
workingCapital  
Industrial Structure Acceleration 
Support Program  Loan 
Investment  SMEs and MEs  
For financing capex, R&D, and 
workingCapital  
 
Names of Funding 
Instruments  Types of 
Funding 
Provided  Target Companies and Use of Proceeds  
Start-up Support Program  Loan 
Investment  Start-upsand SMEs  
For financing capex, R&D, and 
workingCapital  
 
• The KDB classifies industries of the future into nine macro themes such as advanced 
manufacturing and automation, renewable energy, and ICT, with a fur there  
breakdown of the themes into 300 specific categories. In 2020, the volume of funding WT/TPR/M/414/Add.1  
 
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  provided to companie s eligible under the nine thematic categories totalled  
KRW 21.6 trillion.  
•  
(Loan: KRW 21.1trillion, Fixed Income investment: 
KRW 0.3trillion,Stockinvestment:KRW  0.2 trillion).  
 
Nine Thematic Categories of Industries  of the Future  
Themes  #of 
items  Examples of items  
State -of-the-art manufacturing and automation  31 Robot,SmartCar,3Dprinting  
Chemicals and new materials  37 Carbonfiber  
Energy  40 Clean/Renewableenergy, 
Energystorage  
Environment and sustainability  30 SmartFarm  
Health and diagnostics  40 Biosimilar  
Information and communications  43 5gnetwork,BigData  
Electrical and electronic  29 SystemSemiconductor  
Sensor and measurement  23 ADAS,Lidar  
Knowledge -based service  27 Game,MediaContents  
 
4. How does Korea determine the price for equity provided to industries of the future?  
 
[Answer]  
Making equity investment in industries of the future is no different from KDB's usual investment 
procedure including how it determines the price for equity.  
 
5. How does Korea ensure that th e investment that it provides under these programs is consistent 
with the normal investment practices of private investors?  
 
[Answer]  
There is no separate regulation related to investing in industries of the future.  
 
6. Are loans provided under these programs at a market or a below market interest rate?  
 
[Answer]  
KDB determines interest rate on loans based on the individual borrower's credit rating and collateral 
value, among others, and the same procedure is applied to the companies eligible under the  
programs.  
  WT/TPR/M/414/Add.1  
 
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  URUGUAY  
Question 1. In point 8 of the Secretariat's Report, the news regarding trade facilitation and the 
expansion of the electronic dispatch system to all merchandise imported by authorized economic 
operators are mentioned.  Could Korea detai l how this electronic dispatch system works and the 
benefits that its implementation has brought?  
 
[Answer]  
100% computerizing customs processes such as import/export on internet has many benefits such 
as time reduction, transparency, and provision of one -stop service.  
 
Question 2. In point 8 of the Secretariat's Report, it is mentioned that the Government continued to 
help companies, including SMEs, under the RTA / LAC framework to use trade preferences subject 
to diverse and complex rules  of origin.  Could Korea detail how the government helped SMEs to use 
trade preferences under the RTA / LAC framework?  
 
[Answer]  
Since 2010, KCS has been operating AEO (Authorized Economic Operator) system to simplify the 
process of submitting certificates of origin and other papers. Through this system, KCS decides which 
import/exporters are capable of verifying the origin of a good, and designates that import/exporter 
to be an AEO. Also, since Sep 7 2010, KCS has been administrating FTA -PASS for deciding a nd 
managing the origins of goods. FTA -PASS is interconnected with UNI -PASS, so paperwork related to 
certificates of origin can be issued easily and instantly.  
Since 2010, KCS has been operating 'FTA -utilizing electronic alarm system', where UNI -PASS marks 
goods subject to preferential tariff among imported goods. 'Rule of Origin Self -care Solution 
Programme' is distributed freely on the website for SMEs, to use. With the system, seminars, 
workshops and lectures, RTA/FTA related data can be obtained.  
In addi tion, 13 FTA -related curriculums including HS code, AEO, FTA -PASS are being provided, and 
there is also 'Consultants on Foot' (where consultants visit businesses).  
 
Question 3. In point 4.9 of the Government Report, it is mentioned that within the framewor k of the 
adoption of the package of recommendations and statements of the Informal Group of MSMEs in 
2020, Korea is doing everything possible to improve access to information related to trade and 
provide assistance for the digitization of MSMEs.  Could Kore a report on its efforts to improve access 
to information and digitization of MSMEs?  
 
[Answer]  
As the unprecedented pandemic hit hard MSME in South Korea, the ministry has focused on 
strengthening the resilience of MSMEs through digitalization such as intro duction of smart technology 
and related support programs.  
 
Report of the Secretariat.  Paragraphs 7 of the Summary and 3.37 to 3.39 of the Report  
The Secretariat report states that Korea makes use of "flexible tariffs" (including seasonal and 
adjustment duties, among others) for certain products (184 items in 2021), which allow for 
discretionary tariffs but which, in the opinion of the authorities , are within the limits bound in the 
WTO.  
 
Question 4. In point 3.4 of the Government Report, refe rence is made to the approval of the New 
Digital Deal to promote digital innovation throughout the economy. Could Korea comment on how 
the government has encouraged small entrepreneurs to take full advantage of the benefits of smart 
technologies?   
 
[Answer]  
Last year, MSMEs were hit hardest by the unprecedented pandemic, the ministry of SMEs and 
Startups (MSS) has spared no efforts to help these small businesses overcome the crisis. In this 
context, MSS has focused on strengthening the resilience of MSMEs through digitalization such as 
introduction of smart technology.  
 
In order to support the digitalization of micro -enterprises, MSS has spread ❶A fintech -based mobile 
payment system, Zero -Pay. ❷Capacity building through the digital manager program and  the online 
training platform. ❸live commerce was utilized to boost online sales of micro -enterprises. ❹Support 
for the adoption of smart technology to create smart supermarkets, smart shops, or smart craft WT/TPR/M/414/Add.1  
 
- 239 - 
 
  shops . Based on the pilot project in 2020, MSS pl ans to create 20,000 smart stores and 600  smart 
craft shops  by 2021.  
 
Question 5. How do the Korean authorities ensure that their "flexible tariffs" do not exceed the limits 
bound in the WTO?  
 
[Answer]  
Since the flexible tariff can only be applied when it is lower than the WTO concession tariff, it cannot 
exceed the limits bound in the WTO.   
 
Report of the Secretariat.  Paragraphs 9 of the Summary, 3.59 to 3.60, 4.19 and 4.54 of 
the Report.  According to the Secretariat report, Korea completed the rice tariff ication process in 
2015 and established an import tariff quota of 408,700 tons per year, with a tariff rate of 5% intra -
quota and 513% extra quota, which was incorporated into the List of Korean Concessions in the 
WTO formally in 2020.   
 
Question 6. What e ffects did the implementation of this TRQ have on the Korean rice market (for 
example, in terms of the share of imports on consumption, domestic prices, etc.)?  
 
[Answer]  
Korea's rice TRQ  volume of 408,700 MT was decided in 2015. The volume is same as the MMA quota 
for 2014, the last year of the special treatment of rice import for Korea. Consequently, the Korean 
rice market has not been significantly affected by the implementation of the TRQ.  
But, Korea's per capita rice consumption has continued a downward trend from 62.9 ㎏ in 2015 to 
57.7kg in 2020 and thus, the ratio of imported rice to rice consumption has changed.  
 
Question 7. Could Korea detail the main origins of the 20,000 open ton nes on an  erga 
omnes  basis within this TRQ?    
 
[Answer]  
Korea has administered a global quota since 2020. The quota was filled with Indian rice in 2020 and 
Thai rice in 2021.  
 
Report of the Secretariat.  Paragraph 3.42.  
According to the Secretariat report, Korea maintains 9.3% of unbound tariff lines, which covers 0.3% 
of agricultural tariff lines and 10.8% of industrial tariff lines.  
 
Question 14. Does Korea plan to proceed with binding the missing tariff lines in the near future?  
 
[Answ er] 
Korea has been improving overall tariff regime through the consideration of domestic conditions and 
the results of multilateral negotiations every year, and will continue to improve the related policies 
by respecting the results of ongoing FTA, RTA, WT O DDA and multilateral negotiations as well as the 
opinions of related organizations and interested parties.  
 
Report of the Secretariat.  Paragraphs 3.50, 4.17 and 4.19.  
Question 15. According to the Secretariat report, Korea maintains applied tariff rates within quotas 
that reach up to 50%  ad valorem  , while the average utilization rate of tariff quotas was 58% in 
2020. In order to facilitate utilization of existing TRQs, is Korea considering reducing or eliminating 
the high applied tariff rates within some  of them?   
 
[Answer]  
The implementation of WTO TRQ is more influenced by alternative importation according to the FTA 
and change in domestic demand than the level of WTO TRQ tariffs level. For the goods with high 
demand in Korea, lower tariff rates are app lied than the WTO TRQ tariffs by utilizing flexible tariffs  
 
Report of the Secretariat.  Paragraphs  3.84 and 4.29.   
 
According to the Secretariat report, Korea continues to make use of export subsidies for some 
agricultural products, including fruits, veget ables, livestock, cereals and processed foods, in 
accordance with the provisions of Article 9.4 of the Agreement on Agriculture of the WTO.  Such 
grants peaked at KRW 39.6 billion in 2017.  WT/TPR/M/414/Add.1  
 
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  Question 16. Could Korea explain whether, in response to the COVID -19 pandemic and related 
logistical difficulties, the amount of export subsidies granted under that provision increased?  If so, 
could you please detail the products benefiting from the highest export subsidies?   
 
[Answer]  
According to the MC10 Ministerial De cision of 19 December 2015, Korea is preparing necessary steps 
without delay including the reduction of subsidy rates in phases to eliminate export logistics subsidies 
by 2024.  
Although the subsidy amounts have increased along with the increasing shipping costs caused by 
the global shipping bottlenecks amid the COVID -19 pandemic, it did not have any effect on the 
subsidy rates. Also, the subsidy rates are not different by product.  
 
Question 17. Could Korea detail its plans to eliminate export subsidies unde r that provision in 2023, 
pursuant to the Nairobi Ministerial Decision on Export Competition (2015)?   
 
[Answer]  
According to the MC10 Ministerial Decision of 19 December 2015, Korea is preparing necessary steps 
without delay including the reduction of subsidy rates in phases to eliminate export logistics subsidies 
by 2024. The stepwise reduction rates are as follow : 9% in 2018 and 2019, 7% in 2020 and 2021, 
5% in 2022 and 2023, 0% in 2024.  
 
  WT/TPR/M/414/Add.1  
 
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  VIET NAM  
Regarding the 2020 Korean New Deal initiative, Viet Nam would highly appreciate if the Republic of 
Korea could share:  
 
1. its implementation timeline;  
 
[Answer]  
The Korean New Deal is a comprehensive plan for 2020 -2025.  
 
2. implementation status as of now; and  
 
[Answer]  
The plan is to invest a total of KRW 160 trillion among the national budget until 2025. In 2020, 
Korea has invested KRW 5.4 trillion and has set the goal to put KRW 27.1 trillion in 2021 and the 
plan is in progress without a delay. In addition, 12legislative tasks (43 laws) of th e New Deal were 
selected to lay the institutional foundation and currently 24 laws have been enacted/amended.  
 
3. experiences in policy -making process.  
 
[Answer]  
As a cross -ministry strategy, the New Deal is under operation by establishing inter -related promo tion 
system such as Strategic meeting presided by the President, Ministerial Meeting on the Korean New 
Deal, Government -Ruling Party Consultation to ensure swift decision -making process and strong 
driving force.  
 
 
__________