G/STR/N/19/KOR  
 
20 December 2022  
(22-9522) Page: 1/11 
Working Party on State Trading Enterprises  Original: English  
 
  
          STATE TRADING  
NOTIFICATION PURSUANT TO ARTICLE XVII: 4(A) OF THE  GATT 1994  
AND PARAGRAPH 1 OF THE UNDERSTANDING  ON 
THE INTERPRETATION OF ARTICLE XVII  
REPUBLIC OF KOREA 
The following communication, dated and received on 20 December 2022, is being circulated at the 
request of the delegation of the Republic of Korea . 
 
_______________  
 
 
Pursuant to Article XVII:4(a) of GATT 1994 and paragraph 1 of the Understanding on the 
Interpretation of Article XVII, and in response to the call for notifications contained in document 
G/STR/N/19, the Republic of Korea makes the following full and new notification of its state trading 
enterprises for 20 20 and 20 21.  
 
 
TABLE OF CONTENTS  
 
I.  MINISTRY OF AGRICULTURE, FOOD AND RURAL AFFAIRS, MAFRA  .........................  2 
II.  THE KOREA AGRO -FISHERIES & FOOD TRADE CORPORATION (AT)  ........................  3 
 
  G/STR/N/19/KOR  
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  I.  MINISTRY OF AGRICULTURE, F OOD AND RURAL AFFAIRS , MAFRA  
1. Description of Products Affected  
 
Products  HS number  Products  HS number  
Rice 1006.10.0000  
1006.20.1000  
1006.20.2000  
1006.30.1000  
1006.30.2000  
1006.40.0000  
1102.90.2000  
1103.19.3000  Rice 1103.20.2000  
1104.19.1000  
1806.90.2290  
1806.90.2999  
1901.20.1000  
1901.20.9000  
1901.90.9091  
1901.90.9099  
 
2.  Reason and Purpose  
 
A. Reason or purpose for establishing and/or maintaining state trading enterprise  
 
The MAFRA  has exclusive rights to the importation of  rice in order to avoid domestic market 
disturbances caused by a sudden influx of imported rice and to ensure a smooth implementation of 
the Uruguay Round commitments.  
 
B. Summary of legal basis for granting the r elevant exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers  
 
Legal provision: Articles 12 and 13 of the Grain Management Act.  
 
3.  Description of the Functioning of the State Trading Enter prise  
 
A.  Summary statement providing overview of operations of state trading  
 
Imports are conducted within the limit of quotas on rice as established in Korea's Country 
Schedule  (C/S).  
 
B.  Specification of exclusive or special rights or privileges enjoy ed by the state trading enterprise  
 
The M AFRA has the exclusive rights to the importation of  rice as established in Korea's C/S in 
accordance with the Grain Management Act.  
 
C. Type of entities other than the state trading enterprise that are allowed to en gage in 
importation/exportation and conditions for participation   
 
Not applicable.  
 
D.  How import/export levels are established by the state trading enterprise  
 
Import in accordance with the tariff quotas set in Korea's C/S.  
 
E.  How export prices are determined  
 
Not applicable.  
 
F.  How the resale prices of imported products are determined  
 
The domestic sales prices of rice for household use  are determined by open auction.  
 
The domestic sales prices of rice for processing are determined by the M AFRA based on import 
prices, management costs, domestic consumer prices, consumer preference and the level of demand 
of processing companies . 
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  G.  Whether long -term contracts are negotiated by the state trading enterprise or whether the 
state trading enter prise is used to fulfill contractual obligations entered into by the government  
 
Long-term contracts are not considered, and equal opportunities are provided to all parties 
interested in rice export.  
 
H.  Brief description of market structure  
 
Farmers ente r into government purchases for public stockholding or sell their crops at their liberty 
in private markets.  
 
4.  Statistical Information (see attached Tables I -III) 
 
A.  Table I: Statistical Information, Imports.  
 
B.  Table II: Statistical Information, Ex ports.  
 
Not applicable.  
 
C.  Table III: Statistical Information, Domestic Activities.  
 
5.  Reason why no foreign trade has taken place  
 
Not applicable.  
 
6.  Additional Information  
 
Not applicable.  
 
II.  THE KOREA AGRO -FISHERIES  & FOOD TRADE CORPORATION ( aT) 
1.  Description of Products Affected  
 
Products  HS Number  Products  HS Number  
Genus Capsicum  0709.60.1000  
0709.60.9000  
0711.90.5091  
0904.21.0000  
0904.22.0000  Soya beans  1201.90.3000  
1201.90.9000  
Garlic  0703.20.1000  
0703.20.9000  
0711.90.1000  
0712.90.1000  Green beans  
Small red beans  0713.31.1000  
0713.31.9000  
0713.32.1000  
0713.32.9000  
Onions  0703.10.1000  
0712.20.0000  Buckwheat  1008.10.0000  
Sesam um seeds  1207.40.0000  Potatoes(Other)  0701.90.0000  
 
2.  Reason and Purpose  
 
A.  Reason or purpose for establishing and/or maintaining state trading enterprise  
 
The aT was established in 1967 under the Agro -Fisheries Marketing Corporation Act to stabilize the 
domestic market prices of agricultural and fishery products, promote exports, administer imports, 
improve marketing and foster the food industry.  
 
The aT is designated as an import agency to administer tariff quotas on relevant items (small red 
beans, buckwheat, etc.) in order to stabilize the domestic market and to ensure the smooth 
implementation of the UR commitments.  
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  B.  Summary of legal basis for granting the relevant exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers  
 
Legal provision: Article 15  and 16 of the Agro -Fisheries Marketing and Price Stabilization 
Act/ Articles  12, 13  and 13-2 of the Grain Management Act.  
 
3.  Description of the Functioning of the State Trading Enterprise  
 
A.  Summary statement providing overview of operations of state  trading  
 
The aT imports tariff quota quantity specified in Korea's C/S.  
 
B.  Specification of exclusive or special rights or privileges enjoyed by the state trading enterprise  
 
Imports & sales of items subject to in-quota  tariffs.  
 
C.  Type of entities ot her than the state trading enterprise that are allowed to engage in 
importation/exportation and conditions for participation  
 
For sesam um seeds , buckwheat, onion,  garlic, green beans, small red beans and soya beans,  private 
companies are allowed to import part of the quotas through open bidding. Open bidding refers to a 
"public auction" where goods are sold to a participati ng company which  offers the highest price 
during the auction . For genus capsicum, green beans, small red beans, and potatoes, part of ta riff 
quota quantity is allocated to private companies on a first -come, first -served basis.  
 
D.  How import/export levels are established by the state trading enterprise  
 
Imports are carried out by an annual quota quantity as set in Korea's C/S, and certain  items (small 
red beans, soy a beans, sesam um seeds, potatoes, etc.) are imported by more than the specified 
quantity in Korea's C/S, depending on the changes in domestic supply and demand.  
 
E.  How export prices are determined  
 
Not applicable.  
 
F.  How th e resale prices of imported products are determined  
 
The resale prices of imported products are determined at the open auction, at a level above 70 % of 
the wholesale prices, depending on their quality.  
 
G.  Whether long -term contracts are negotiated by the state trading enterprise or whether the 
state trading enterprise is used to fulfill contractual obligations entered into by the government  
 
Long-term contracts are not considered, and equal opportunities ar e granted to all countries 
concerned.  
 
H.  Brief description of market structure  
 
Farmers generally sell crops at their will in private markets.  
 
The products imported by the aT are either sold directly by the aT or through an open bidding or a 
wholesale a uction system.  
 
4.  Statistical Information (see attached Tables I -III) 
 
A.  Table I: Statistical Information, Imports.  
 
B.  Table II: Statistical Information, Exports.  
 
Not applicable.  
 
C.  Table III: Statistical Information, Domestic Activities.  G/STR/N/19/KOR  
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  5.  Reas on why no foreign trade has taken place  
 
Not applicable.  
 
6.  Additional Information  
 
Not applicable.   
  G/STR/N/19/KOR  
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TABLE I  
STATE TRADING: MINISTRY OF AGRICULTURE, FOOD AND RURAL AFFAIRS  
STATISTICAL INFORMATION, IMPORTS  
 (unit: mt, US D, USD/mt)  
Description of product(s)  
(including HS number(s))  Total quantity 
imported  Quantity imported by 
state trading 
enterprises  Average import 
price  
(USD/mt)  Average representative 
domestic sales price  
(USD/mt)  Mark -up 
(USD/mt)  National production  
1 2 3 4 5 6 7 
Rice 
(1006.20.1000)  2020 : 396,889  
2021 : 383,000  2020 : 396,889  
2021 : 383,000  2020 : 782  
2021 : 909  2020 : 464  
2021 : 871  - 
2020 : 3,507,000  
2021 : 3,882,000  Rice 
(1006.30.1000)  2020 : 40,000  
2021 : 44,000  2020 : 40,000  
2021 : 44,000  2020 : 970  
2021 : 1,391  2020 : 1,457  
2021 : 1,610  - 
Rice 
(1006.30.2000)  2020 : - 
2021 : 5,000  2020 : - 
2021 : 5,000  2020 : - 
2021 : 1,198  2020 : 1,346  
2021 : 1,433  - 
Rice 
(1006.40.0000)  2020 : 11,500  
2021 : 15,000  2020 : 11,500  
2021 : 15,000  2020 : 499  
2021 : 449  2020 : - 
2021 : 325  - 
Note  1. Rice: polished rice basis . 
 2. Annual average of exchange rate:  2020: W 1,180. 05/USD, 2021: W  1,144.42/ USD. 
    
  G/STR/N/19/KOR  
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TABLE III  
STATE TRADING: MINISTRY OF AGRICULTURE, FOOD AND RURAL AFFAIRS  
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
(unit: mt)  
Description of product(s)  
(including HS number(s))  Domestic purchase by 
state  trading enterprises  National production  Domestic sales by 
state  trading enterprise  National consumption  
1 2 3 4 5 
Rice 
(1006.20.1000)  
(1006. 30.1000)  
(1006.30.2000)  
(1006.40.0000)  2020: 448,389 
2021: 447,000 2020: 3,507,000 
2021: 3,882,000 2020: 30,266 
2021: 69,846 2020: 4,128 ,000 
2021: - 
Note  1. Rice: Polished rice basis . 
    
  G/STR/N/19/KOR  
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TABLE I  
STATE TRADING: KOREA AGRO -FISHERIES  & FOOD TRADE CORPORATION  (aT)  
STATISTICAL INFORMATION, IMPORTS  
(unit: mt, US D, USD/mt)  
Description of product(s)  
(including HS number(s))  Total quantity 
imported  Quantity imported 
by state trading 
enterprise  Average import price  
(USD/mt)  Average representative 
domestic sales price 
(USD/mt)  Mark up  
(USD/mt)  National production  
1 2 3 4 5 6 7 
1. Soya beans  
(1201.90.3000)  
(1201.90.9000)  2020: 279,733  
2021: 276,662  2020: 190,189  
2021: 189,077  2020: 665 
2021: 806 2020: 894 
2021: 912 2020: 228 
2021: 105 2020: 80,926  
2021: 110,781  
2. Small red beans  
(0713.32.1000)  
(0713.32.9000)  2020: 20,521  
2021: 18,524  2020: 16,000  
2021: 14,460  2020: 1,839  
2021: 2,708  2020: 1,737  
2021: 1,923  2020: 101 
2021: 786 2020: 5,809  
2021: 6,188  
3. Green beans  
(0713.31.1000)  
(0713.31.9000)  2020: 9,828  
2021: 16,213  2020: 2,000  
2021: 2,200  2020: 1,596  
2021: 1,876  2020: 3,207  
2021: 4,078  2020: 1,611  
2021: 2,202  2020: 1,598  
2021: 1,918  
4. Buckwheat  
(1008.10.0000)  2020: 2,137  
2021: 3,059  2020: 816 
2021: 828 2020: 800 
2021: 1,127  2020: 1,817  
2021: 3,370  2020: 1,017  
2021: 2,243  2020: 1,549  
2021: 2,377  
5. Genus Capsicum  
(0709.60.1000)  
(0709.60.9000)  
(0711.90.5091)  
(0904.21.0000)  
(0904.22.0000)  2020: 6,080  
2021: 6,114  2020: 0 
2021: 0 2020: Not Available  
2021: Not Available  2020: Not Available  
2021: Not Available  2020: Not 
Available  
2021: Not 
Available  2020: 60,076  
2021: 92,757  
Note  1. Annual average of exchange rate:  2020: W 1,180. 05/USD, 2021: W 1,144.42/ USD. 
 
 
    
  G/STR/N/19/KOR  
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TABLE I  
STATE TRADING: AGRICULTURAL KOREA AGRO -FISHERIES  & FOOD TRADE CORPORATION  (aT)  
STATISTICAL INFORMATION, IMPORTS  
 (unit: mt, US D, USD/mt)  
Description of product(s)  
(including HS number(s))  Total quantity 
imported  Quantity imported by 
state trading 
enterprise  Average import price 
(USD/mt)  Average representative 
domestic sales 
price(US D/mt)  Mark up  
(USD/mt)  National 
production  
1 2 3 4 5 6 7 
6. Garlic  
(0703.20.1000)  
(0703.20.9000)  
(0711.90.1000)  
(0712.90.1000)  2020: 4,224  
2021: 5,828  2020: 0 
2021: 0 2020: Not Available  
2021: Not Available  2020: Not Available  
2021: Not Available  2020: Not Available  
2021: Not Available  2020: 363,432  
2021: 308,532  
7. Onions  
(0703.10.1000)  
(0712.20.0000)  2020 : 30,877  
2021 : 41,189  2020: 0 
2021: 0 2020: Not Available  
2021: Not Available  2020: Not Available  
2021: Not Available  2020: Not Available  
2021: Not Available  2020: 
1,168,227  
2021: 
1,576,752  
8. Sesamum seeds  
(1207.40.0000)  2020 : 77,662  
2021 : 86,923  2020 : 41,700  
2021 : 48,882  2020: 2,158  
2021: 2,159  2020: 3,494  
2021: 3,675  2020: 1,336  
2021: 1,516  2020: 6,795  
2021: 10,090  
9. Potatoes  
(0701.90.0000)  2020 : 30,722  
2021 : 27,935  2020: Not Available  
2021: Not Available  2020: Not Available  
2021: Not Available  2020: Not Available  
2021: Not Available  2020: Not Available  
2021: Not Available  2020: 553,194  
2021: 497,755  
Note  1. Annual average of exchange rate:  2020: W 1,180. 05/USD, 2021: W 1,144.42/ USD. 
    
  G/STR/N/19/KOR  
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TABLE III  
STATE TRADING: KOREA AGRO -FISHERIES  & FOOD TRADE CORPORATION  (aT) 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
(unit: mt)  
Description of product(s)  
(including HS number(s))  Domestic purchases by state 
trading enterprise  National  
Production  Domestic sales by state 
trading enterprise  National consumption  
1 2 3 4 5 
1. Soya beans  
(1201.90.3000)  
(1201.90.9000)  2020: 191,368  
2021: 192,487  2020: 80,926  
2021: 110,781  2020: 203,430  
2021: 205,137  2020: 372,213  
2021: 400,892  
2. Small red beans  
(0713.32.1000)  
(0713.32.9000)  2020: 16,001  
2021: 14,460  2020: 5,809  
2021: 6,188  2020: 17,452  
2021: 17,083  2020: 27,785  
2021: 27,340  
3. Green beans  
(0713.31.1000)  
(0713.31.9000)  2020: 2,000  
2021: 2,200  2020: 1,598  
2021: 1,918  2020: 2,619  
2021: 1,831  2020: 12,041  
2021: 17,850  
4. Buck wheat  
(1008.10.0000)  2020: 900  
2021: 889  2020: 1,549  
2021: 2,377  2020: 1,220  
2021: 912 2020: 4,005  
2021: 5,460  
5. Genus Capsicum  
(0709.60.1000)  
(0709.60.9000)  
(0711.90.5091)  
(0904.21.0000)  
(0904.22.0000)  2020: Not Available  
2021: Not Available  2020: 60,076  
2021: 92,757  2020: 2,633  
2021: 1,243  2020: 145,000  
2021: Not Available  
Note 1. Annual average of exchange rate:  2020: W 1,180. 05/USD, 2021: W 1,144.42/ USD. 
    
  G/STR/N/19/KOR  
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TABLE III  
STATE TRADING: KOREA AGRO -FISHERIES  & FOOD TRADE CORPORATION  (aT) 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
(unit: mt)  
Description of product(s)  
(including HS number(s))  Domestic purchases by state 
trading enterprise  National  
Production  Domestic sales by state 
trading enterprise  National consumption  
1 2 3 4 5 
6. Garlic  
(0703.20.1000)  
(0703.20.9000)  
(0711.90.1000)  
(0712.90.1000)  2020: 1,392  
2021: 3,463 2020: 363,432 
2021: 308,532 2020: 2,058  
2021: 10,121  2020: 411,000  
2021: Not Available  
7. Onions  
(0703.10.1000)  
(0712.20.0000)  2020: Not Available  
2021: 10,411 2020: 1,168,227 
2021: 1,576,752 2020: 9,011 
2021: 822 2020: 1,251,000 
2021: Not Available  
8. Sesamum seeds  
(1207.40.0000)  2020: 41,700 
2021: 48,882 2020: 6,795  
2021: 10,090 2020: 42,380 
2021: 46,116 2020: 83,200  
2021: 93,347 
9. Potatoes  
(0701.90.0000)  2020: Not Available  
2021: Not Available  2020: 553,194 
2021: 497,755 2020: 1,921 
2021: Not Available  2020: 586,752 
2021: 525,092 
Note  1. Annual average of exchange rate:  2020: W 1,180. 05/USD, 2021: W 1,144.42/ USD. 
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