G/SCM/Q2/KOR/65  
29 September  2020 
(20-6599) Page: 1/2 
Committee on Subsidies and Countervailing Measures  Original:  English  
 
  
SUBSIDIES  
REPLIES TO QUESTIONS1 POSED BY THE UNITED STATES REGARDING THE  
NEW AND FULL NOTIFICATION OF THE REPUBLIC OF KOREA2 
The following communication, dated 2 8 September 2020, is being circulated at the request of the 
delegation of the Republic of Korea . 
 
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III. FISHERIES  
A. SUPPORT FOR MANAGEMENT OF FISHERIES  
Question 1  
Please provide any further information on whether this program could lead to an increase 
in the Republic of Korea 's overall fishing capacity . Please explain whether exporters 
receive additional or preferential financial support over domestic suppliers under this 
program.  
Reply : 
The program does not aim at increasing fishing capacity. Korea generally measures the appropriate 
level of fishing capacity annually and controls fishing capacity stably through restructuring.  
The program is not for fisheries suppliers but for producers. Even if the beneficiary is also in the 
supply business, si nce the support is for producers, it is not differentiated according to the supply 
route of fisheries products  (whether consumed domestically or exported).  
B. SUPPORT FOR AQUACULTURE FISHERY DEVELOPMENT  
Question 2  
Please provide any further information on whether this program could lead to an increase 
in the Republic of Korea 's overall fishing capacity.  
Reply : 
The program is unconnected with fishing capacity as it only supports aquaculture fishermen . 
 
1 G/SCM/Q2/KOR/63.  
2 G/SCM/N/343/KOR.  G/SCM/Q2/KOR/65  
- 2 - 
  D. SUPPORT FOR MANAGEMENT OF OVERSEAS FISHERIES  
Question 3  
Please provide any further information on whether this program could lead to an increase 
in the Republic of Korea 's overall fishing capacity.  
Reply : 
Korean government stably controls its fishing capacity through an annual catch investigation and 
management of fishing permits. Furthermore, Korea 's distant water fishery output is regulated in 
accordance with the c onservation and management measures of RFMOs, and subsidies are limited 
for IUU vessels and enterprises exceeding certain size, so subsidies will not cause overfishing or 
overcapacity . 
E. SUPPORT FOR MODERNIZATION OF OLD DISTANT -FISHING VESSELS  
Question 4  
How does this program differ materially from support given to fishers in the Republic of 
Korea 's EEZ?  
Reply : 
The program is a loan program for the safety of fishing vessels and the welfare of fishermen, thus, 
its connection to overcapacity is ve ry low. Overall, Korea has a stable control over its fishing capacity 
by measuring the appropriate level of fishing capacity annually and managing the fixed number of 
permits. Moreover, if the total allowable catch is set by the regional fisheries organiza tions, it is 
followed. Thus, overcapacity or overfishing will not be caused by this program.  
Question 5  
Please provide any further information on whether this program could lead to an increase 
in the Republic of Korea 's overall fishing capacity.  
Reply : 
Korea 's distant water fishing vessels are mostly over 30 years old, causing safety, sanitary and 
welfare problems for fishing vessels. The purpose of the program is to reduce accidents caused by 
aging fishing vessels and improve working conditions for sail ors. This reflects the international 
momentum for a stricter management by port authorities, a growing importance on safety of fishing 
vessels, and crew welfare as enshrined in the Work in Fishing Convention, the Cape Town Agreement 
(CTA), etc.  
V. MANUFACT URING INDUSTRY  
B. SUPPORT FOR FARM MACHINERY MANUFACTURING  
Question 6  
Please explain which industries and sectors benefit from this program.  
Reply : 
The support scheme will benefit the producers of agricultural machineries and their components. 
More specifically, those who are officially registered, and have proven track record of more than 
three years are eligible for it.  
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