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Trade Policy Review Body    
 
* In Original language only/ En langue originale seulement /En el idioma original solamente . 
  THE REPUBLIC OF KOREA 
DRAFT MINUTES  OF THE MEETING* HELD ON 11 AND 13 OCTOBER 20 16 
Delegations are invited to submit factual corrections, if any, on their own statement to the 
Secretariat ( Mrs Barbara Blanquart: barbara.blanquart@wto.org , or to  tprd@wto.org ) no later 
than 2 December 2016 . 
 
Organe d'examen des politiques commerciales  
 
RÉPUBLIQUE DE CORÉE 
PROJET DE COMPTE REN DU DE LA RÉUNION* TENUE LES 11 ET 13 OCTOBRE 201 6 
Les délégations sont invitées à soumettre  leurs éventuelles corrections factuelles concernant leurs 
propres déclarations au Secrétariat ( Mme Barbara Blanquart: barbara.blanquart@wto.org , ou 
tprd@wto.org ) le 2 décembre 2016  au plus tard.  
 
Órgano de Examen de las Políticas Comerciales  
 
REPÚBLICA DE COREA 
PROYECTO DE ACTA DE LA REUNIÓN* CELEBRADA LOS DÍAS 11 Y 13 DE OCTUBRE D E 2016  
Las delegaciones pueden enviar a la Secretaría  (Sra. Barbara Blanquart: 
barbara.blanquart@wto.org , o tprd@wto.org ) a más tardar el 2 de diciembre de 2016  las 
correcciones fácticas que deseen introducir en sus propias declaraciones.  
 
 
_______________  
 WT/TPR/W/116  • Republic of Korea  
 
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  TRADE POLICY REVIEW  
REPUBLIC OF KOREA 
DRAFT MINUTES OF THE MEETI NG 
Chairperson: Ms Irene Young (Hong Kong, China)  
CONTENTS  
 
1   INTRODUCTORY REMARKS  BY THE CHAIRPE RSON  ................................ ......................  3 
2   OPENING STATEMENT BY  THE REPRESENTATIVE O F THE REPUBLIC OF KO REA ..........  5 
3   STATEMENT BY THE DIS CUSSANT  ................................ ................................ ...............  8 
4   STATEMENTS BY MEMBER S ................................ ................................ ........................  12 
5   REPLIES BY THE REPRE SENTATIVE OF THE REP UBLIC OF KOREA AND 
ADDITIONAL COMMENTS  ................................ ................................ ...............................  47 
6   CONCLUDING REMARKS B Y THE CHAIRPERSON  ................................ ........................  52 
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by the Republic of Korea  are reproduced in document WT/TPR/M/346/Add.1 and will be 
available online at http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.  WT/TPR/W/116  • Republic of Korea  
 
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  1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  
1.1.  The seventh Trade Policy Review of the Republic of Korea was held on 11 and 
13 October  2016. The Chairperson, Ms. Irene Young (Hong Kong, China), welcomed the delegation 
of the Republic of Korea headed by Mr. Lee Inho, Deputy Minister for Trade from the Ministry of 
Trade, Industry and Energy; the delegation from Seoul; and the discuss ant, Ambassador Jonathan 
Fried (Canada).  
1.2.  The Chairperson recalled the purpose of the Trade Policy Reviews and the main elements of 
the procedures for the meeting. The report by the Republic of Korea was contained in document 
WT/TPR/G/346 and that of the W TO Secretariat in WT/TPR/S/346.  
1.3.  Questions by the following delegations had been submitted in writing before the deadline: 
United States; Canada; Australia; Chinese Taipei; Switzerland; European Union; Hong Kong, 
China; Guatemala; Chile; Norway; Singapore; China; Mexico; Brazil; Japan; New Zealand; 
Colombia; Benin; India; and Indonesia. The following delegations submitted written questions 
after the deadline: Dominican Republic; Paraguay; Thailand; Argentina; Saudi Arabia; Ecuador; 
Peru; Malaysia; The Russia n Federation; Turkey and El Salvador.  
1.4.  At the previous TPR meeting in 2012, Members had praised Korea for its effective fiscal and 
monetary policies which had enabled a prompt recovery from the 2008 global financial crisis. 
However, Members had also noted t hat the Korean economy could be affected not only by a falling 
demand in its most important markets, but also its own structural challenges such as an aging 
population and the need to improve productivity, especially in the energy and services sectors. 
Since then, Korea had remained a financially stable and resilient export -led economy, but growth 
had slowed down considerably, and the downside risks previously identified had yet to be 
satisfactorily addressed. In their advance questions, Members had asked a bout the Creative 
Economy initiative and the Three -Year Plan for Economic Innovation, which were Korea's main 
strategies to support economic recovery. A better understanding of these major economic trends 
and structural reforms could be useful background t o Members discussion on trade policies.  
1.5.  Members recalled that, at the time of the previous review, alongside its commitment to the 
rules-based multilateral trading system, Korea had been pursuing comprehensive WTO -plus FTAs. 
During this review period, six1 new ones had entered into force, and more were coming. How this 
rapidly expanding network of preferential agreements might shape Korea's trade pattern and 
influence the directions of global trade was a matter of interest to Members. At the same time, 
Memb ers could notice a significant increase in Korea's trade remedy measures since 2012. 
Recourse to anti -dumping action had doubled, and special safeguard provisions were used more 
frequently. Did that suggest a changing emphasis in Korea's foreign trade poli cy? This could also 
be discussed.  
1.6.  An observation which had attracted many Members' attention at the last review had been 
Korea's relatively low FDI inflow as a percentage of GDP. Between 2012 and 2015, inbound FDI 
had grown by more than 50%, but in monetar y terms that was still much lower than the outflows. 
Whether the so -called 'Korea discount' factor had a role to play was unclear, but as a matter of 
fact, large business conglomerates still dominated the market; privatization of state -owned 
enterprises ha d made little progress; and foreign suppliers had accounted for less than 1% of the 
Public Procurement Service's total purchase operations last year. Understandably, many advance 
questions had been raised about investment barriers and measures to attract F DI. There was a 
particular interest in the deregulation and liberalization of various service sectors. It might be 
useful if the Korean delegation could elaborate on their plans to create a better business 
environment for investors.  
1.7.  Korea's tariff regime h ad been another area of concern at the last TPR. What Members had 
seen then was a complex tariff structure, with a relatively high average applied MFN rate, tariff 
peaks, and unfilled TRQs. These issues were particularly relevant to the agriculture sector,  where 
domestic products were heavily protected by various trade measures including tariffs. The 
Chairperson saw from Members' advance questions that they continued to encourage 
improvements to the tariff regime. They also sought information on other forms  of domestic 
                                                
1 With China, New Zealand, Viet Nam, Canada, Australia, and Turkey, respectively.  WT/TPR/W/116  • Republic of Korea  
 
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  support, export assistance and import control for the agriculture sector, which the Chairperson 
believed the delegation might be happy to provide.  
1.8.  As in the last TPR, many Members wished to see more trade -friendly technical standards and 
SPS m easures. They were pleased to note certain improvements during the review period, such as 
better alignment of industrial standards with international ones.  
1.9.  Other areas where notable progress had been made include regulatory reforms, trade 
facilitation, cus toms procedures and intellectual property rights protection. A lot of advance 
questions were asking about these new developments.  
1.10.   This meeting was a good opportunity for Members to discuss in greater detail issues of 
interest to them and of systemic import ance to the multilateral trading system. The Chairperson 
looked forward to a fruitful exchange.  WT/TPR/W/116  • Republic of Korea  
 
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  2  OPENING STATEMENT BY  THE REPRESENTATIVE O F THE REPUBLIC OF KO REA 
(MR.  LEE INHO)  
Introduction  
2.1.  We are pleased to participate once again in the seventh Trade Poli cy Review of the Republic 
of Korea.  
2.2.  Let me begin my remarks by expressing my sincere appreciation to Madam Chair, Her 
Excellency Irene Young, Permanent Representative of Hong Kong, China, and to the distinguished 
discussant, His Excellency Jonathan T. Fri ed, Ambassador of Canada. I would also like to extend 
my gratitude to the TPR team of the WTO Secretariat for their tremendous work in preparing the 
Korean TPR process.  
2.3.  It is an honour to share Korea's achievements in economic and trade policies today with  such 
an esteemed delegation. Please allow me to recall that Korea joined the GATT in 1967. It has thus 
been half a century since Korea became a Member of the multilateral trading system. Since then, 
Korea has built a competitive, free and open economy bas ed on market principles. No one could 
deny that, during those five decades, Korea has recorded impressive economic growth; Korea's 
GDP has leaped by 313 times, from US$4.4 billion in 1967 to almost US$1.4 trillion as of 2015.  
2.4.  Korea firmly believes that ou r economic success is attributable to our membership in the 
multilateral trading system. In this sense, we consider the WTO TPR a truly important function that 
directly contributes to better understanding of trade policies among all 164 WTO Members, thereb y 
increasing the transparency of the multilateral trading system.  
2.5.  As such, we thank all the WTO Members who posed questions to Korea. We have responded 
to questions that were received before the deadline and are prepared to respond to the questions 
that w ere submitted thereafter. As a responsible Member of the WTO, Korea is fully committed to 
responding to the thoughtful and candid questions submitted by our fellow WTO Members.  
2.6.  With the inauguration of the new administration in February 2013, Korea has ma de efforts in 
order to ensure momentum for an economic recovery from the low -growth trend of the global 
economy through three year economy innovation plan and creative economy. As an advocate of 
openness and liberalization, Korea aims to foster a more open  and free economic system. We have 
underscored detailed measures around the three areas of regulatory reforms, foreign investment, 
and public sector reforms.  
Regulatory reforms  
2.7.  Recognizing that regulatory reform is "the most effective way to promote inves tment and 
consumption without spending", we have committed to removing unnecessary regulations while at 
the same time reinforcing regulations that contribute to public health and safety.  
2.8.  In 2014, Korea introduced the "Cost -in, Cost -out" system, which bala nces the net cost of 
creating or reinforcing regulations by abolishing or relaxing existing ones. The pilot programme 
was carried out in various ministries by the end of 2015, and is now in full operation as of 
19 July 2016.  
2.9.  Furthermore, in a move to eval uate costs and savings in more detail, we adopted the 
"Regulation Impact Assessment System" in a number of areas including competition, SMEs and 
technical regulations. And to make cost -benefit calculation easier, an online impact assessment 
calculator has been test -operated since July 2015.  
2.10.   Another measure worth mentioning is the "Regulatory Reform Shinmungo" introduced in 
March 2014, under which any complaints regarding regulations are submitted and ultimately 
resolved through a one -stop system. This chal lenging task was made possible by assigning public 
officials at the director level to address complaints within 14 days and opening up the entire 
process to the public online.  WT/TPR/W/116  • Republic of Korea  
 
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  Attracting foreign investment  
2.11.   With regard to foreign investment, Korea has been  working hard to attract more inward 
foreign direct investment. Korea offers attractive and quality incentives to foreign investors. Korea 
has also improved transparency and reformed regulations that previously hindered foreign 
investment. As a result, acc ording to the World Bank's Doing Business 2016 report, Korea ranked 
4th out of 183 countries in overall terms of ease of doing business.  
2.12.   Laws have been amended to provide stronger incentives to foreign businesses, making 
Korea a more appealing destination  for business headquarters and R&D centers. In addition, 
income tax incentives are also being provided to foreign workers and technicians who work in such 
headquarters and R&D centers.  
2.13.   There is more. Foreign -invested companies that create jobs will be eli gible for additional 
reduction in their rental fees for state property, and the ceiling for corporate tax cuts will be raised 
relative to the number of jobs created.  
2.14.   A total of twenty -one (21) public officials from government ministries and offices have b een 
designated as communication channels for foreign investors. They are mandated to serve as a 
single window to answer any questions on laws and regulations related to foreign investment, and 
resolve complaints and requests made by foreign investors.  
2.15.   In conjunction with such efforts, a "Regulatory Information Online Portal" has also been up 
and running since July last year to provide online access to legal information whenever a 
regulation is newly created or revised.  
Public sector reforms  
2.16.   In the area o f public sector reforms, structural reforms of public institutions have been 
implemented. Measures include the adjustment of overlapping functions among institutions, 
downsizing of non -core businesses, and allowing private sector participation when necessa ry in the 
areas of energy, environment and so on.  
2.17.   Korea has remained committed to trade liberalization and open markets as a responsible 
member of the multilateral trading system. Korea has translated this commitment into action, by 
actively participating  in multilateral trade negotiations as well as plurilateral and bilateral 
agreements.  
Multilateral trading system  
2.18.   Korea is currently working to fully implement the decisions made at the WTO Ministerial 
Conferences held in Bali in December 2013 and Nairob i in December 2015. Not only have we been 
a key contributor to discussions on the remaining DDA issues, but we have also been playing a 
leading role in advancing discussions on electronic commerce by hosting workshops and 
submitting proposals.  
2.19.   Notably, Ko rea has completed its domestic procedures for ratifying the WTO Trade 
Facilitation Agreement (TFA) as of July last year, and notified the WTO of our acceptance of the 
Protocol. We have already put in place a one -stop customs clearance system that enables t rading 
companies to process their customs documents through a single window. Further, mechanisms 
have been established to disclose government information to the public online, when requested. 
Our efforts also extend outward, as we operate various programme s to assist developing country 
Members in improving their trade facilitation systems.  
Plurilateral agreements  
2.20.   Being an original party to the WTO GPA, Korea is now subject to the revised GPA, which 
entered into force in Korea on 14 January 2016. The imple mentation of the revised GPA is 
expected to enhance efficiency and transparency and provide foreign suppliers and service 
providers with wider market access to Korea's government procurement market.  WT/TPR/W/116  • Republic of Korea  
 
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  2.21.   Korea is an active participant in plurilateral trade neg otiations involving information 
technology (IT), services and environmental goods. I believe we all agree that the recent 
settlement of the ITA expansion negotiations was a significant outcome of the Nairobi Ministerial 
Conference. The Korean Government is  exerting its best efforts to ratify the expanded ITA through 
domestic procedures. With regard to the on -going negotiations of EGA and TiSA, Korea is 
determined to provide full support in expediting their settlement.  
Bilateral agreements  
2.22.   Since the last r eview, Korea has concluded additional bilateral trade agreements for the 
purpose of more comprehensive trade liberalization, including in the areas of services, investment, 
and intellectual property.  
2.23.   During the period under review, Korea has entered into eight (8) FTAs, concluded with the 
United States, China, and Canada, to name a few. At present, 15 FTAs signed by Korea involving 
52 countries are in force. Consequently, Korea has created a more open trade network with 
countries that comprise more than 70 % of the world's GDP.  
Trade and development  
2.24.   Korea is taking an active part in trade capacity -building activities at the WTO level in order 
to support the integration of LDCs into the multilateral trading system. The amendment to the 
Presidential Decree o n Preferential Tariffs for Least -Developed Countries has been allowing LDCs 
duty-free, quota -free (DFQF) market access for 93.6% of all tariff lines since January 2012.  
2.25.   As an effort to support capacity building of LDCs in the area of trade at the WTO level , 
Korea also donated to the WTO Doha Development Agenda Global Trust Fund (DDA GTF) as well 
as to the Tier 1 projects of the Enhanced Integrated Framework (EIF). Korea plans to continue 
participating in the GTF and EIF Tier 2 projects in an effort to creat e more opportunities and 
benefits through trade and market development.  
Conclusion  
2.26.   We are facing a moment of growing anti -globalization sentiment and flagging global trade 
growth. Last June, the WTO indicated that G20 trade restrictions reached the highest  monthly level 
since the global financial crisis in 2009. All of us have received the WTO report last month which 
indicates a slowdown in world trade growth. The world merchandise trade volume is expected to 
grow 1.7% in 2016, well below the April forecast  of 2.8%.  
2.27.   Many people doubt the value of trade liberalization. However, I believe the benefits of trade 
are clear. Korea is one success story which demonstrates how an open and free economy can 
benefit the well -being of a nation's people. As we may all ag ree, a strong and vibrant multilateral 
trading system will be the only effective way to counter the recent protectionist pressures that 
have been intensifying as of late. To this end, Korea is committed to playing a productive role in 
moving multilateral n egotiations forward and discussing new trade agendas.  
2.28.   Once again, I express my sincere appreciation to all the representatives who have joined us 
today. My delegation is prepared to faithfully respond to all your questions and comments during 
the review. I look forward to the constructive discussions that await us. Thank you.  WT/TPR/W/116  • Republic of Korea  
 
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  3  STATEMENT BY THE DIS CUSSANT  
3.1.  On behalf of my colleagues, let me extend my thanks to Deputy Minister Lee for a very 
comprehensive and persuasive overview and presentation.  
3.2.  Members ha ve submitted over 600 questions and I don't view the role of the discussant as 
being to simply summarize or repeat the concerns or clarifications that you have put forward. 
Rather, I've always viewed the role of the discussant as one of facilitator. So, wh at I would like to 
do is, building on the Deputy Minister's presentation and the very concise written submission of 
Korea alongside the detailed Secretariat's report, to reflect on where we are with Korea as a WTO 
Member and to provide you with hopefully s ome stimulating context for the discussion to follow.  
3.3.  The first thing that strikes me and that Deputy Minister mentioned in his starting remarks is 
history. It's important to remember just how far Korea has come because in the 1950s, following 
WWII and the  cease fire of the Korean War, the Republic of Korea was in fact one of the poorest 
countries in the world. The economic conditions were, to be frank, horrible: one of the lowest per 
capita incomes of the area (US$156 per person in 1960); inflation was ver y high, growth was very 
slow, investment was low, and domestic savings were nearly zero, if not negative. Korea was a 
very closed economy with respect to trade. In 1960, exports were only 3% of GDP and imports 
13%. Tariffs were high and quantitative restri ctions abounded.  
3.4.  So how did Korea, in just over half a century, move from one of the poorest countries to one 
of the world's major economies? To a leading exporter of high -tech goods like smartphones and 
TVs, cars, ships and other manufactured goods? From a life expectancy of 53 in 1960 to 82 today? 
From a GDP per capita of just US$156 in 1960 to approaching US$30,000 today?  
3.5.  There is no one answer to this question and it has been a debate among many scholars and, 
I'm sure, soju -fuelled discussions at home i n Korea. One could debate the contributions of 
education because, after all, Korea has always invested in education. It's a very literate society 
from its earlier days. The population and the people are well -known internationally for their strong 
work ethi c. Smart investments in infrastructure such as electricity, roads, ports and the like. But 
one thing is clear alongside all these other factors and that's the contribution of trade to Korea's 
economic transformation.  
3.6.  Roughly half of Korea's economy relies on exports. As mentioned earlier, let's recall that in 
1960 exports represented only 3% of GDP, now nearly 50%.  
3.7.  This was borne out of many government -led reforms to economic and trade policy when 
Korea started to open -up its economy beginning in the 1960s,  joining the GATT in 1967 and a 
rapid industrialization process. They also undertook monetary, fiscal and tax policy reforms and, as 
a result, inflation fell dramatically and the won became much more stable. The import regime was 
liberalized and tariffs we re lowered. Exports were promoted through a number of incentives, 
including tax credits and, one might say, export subsidies but these were largely phased out by 
the mid -1970s. There were also industrial policies to support what was called the "heavy and 
chemical industries" not without its challenges and with some mixed success.  
3.8.  But these measures were part and parcel of the Government's promotion in support for the 
large conglomerates, which we all know today as "Chaebols" and much of the exporting succes s 
can be attributed to their activities. As a result, exports were only US$30 million in 1960 and, 
merchandise trade, at least based on 2014 figures, totalled US$573 billion.  
3.9.  As a result of Korea's export -led development, the country is today one of the wo rld's major 
economies and biggest traders. Korea has moved up five spots in five years, from being the 16th 
largest economy in the world in 2010 to the 11th largest economy today. As I mentioned earlier, 
it's a leading exporter of cars ships, oil and gas p latforms and high -tech goods as well. It is one of 
the most "wired" countries on the planet: high broadband speeds, high internet penetration rate. 
And if you have visited lately you have witnessed the consolidation of Sejong City which 
centralizes governm ent functions for easier collaboration. Reachable by train from downtown Seoul 
as well.  WT/TPR/W/116  • Republic of Korea  
 
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  3.10.   All of this despite regional challenges, including those related to its neighbour to the north, 
Korea remarkably continues to demonstrate impressive success and stabili ty. 
3.11.   Korea is the third biggest trader in Asia and, as the Deputy Minister emphasized, a key 
participant in multilateral and plurilateral initiatives.  
3.12.   Let me just reinforce a few things the Deputy Minister said. It's clear that Korea's trade 
policy is ancho red in the WTO. Those of you who have been around long enough to have lived 
through Bali and Nairobi know how prominent and how active the Korean delegation has been in 
the negotiations and in the preparatory work leading up to the Ministerial meeting. Thi s builds on 
its active participation throughout the history of the GATT and the WTO and an original party to 
the WTO GPA, it participated in the ITA and ITA Expansion, environmental goods negotiations, 
Trade Facilitation Agreement, keys of discussions.  
3.13.   Add to that, Korea's leadership in the so -called "MIKTA" group has helped very recently and 
again tomorrow to facilitate discussion and initiatives in various areas (MIKTA workshop on 
e-commerce in July, MIKTA workshop tomorrow on WTO and Agenda 2030).  
3.14.   Admira ble still over and above there is Korea's contribution to trade and development. 
Korea offers preferential treatment for service suppliers of LDCs, DFQF market access for LDCs for 
about 94% of all tariff lines and actively promotes trade capacity -building activities undertaken 
bilaterally and in collaboration with other donors, as well as contributing to the Trust Fund and the 
Enhanced Integrated Framework.  
3.15.   All of this alongside Korea's active pursuit of trade liberalization through regional and 
plurilatera l initiatives now totalling 52 countries under 15 different FTAs with other negotiations 
ongoing, 8 FTAs since the last review, and 5 more under negotiation including the proposed 
trilateral agreement with China -Japan, Central America, RCEP, Ecuador and Is rael. 
3.16.   All of this trade activity is made possible because of underlined strength in Korea's economic 
governance, very healthy public finances with net Government GDP of 33% only, a ratio better 
than all but one G7 country (Canada at 28%). Korea has managed  despite the aftermap and the 
financial crisis to maintain a current account surplus.  
3.17.   Alongside this, as the World Bank report has noted, is one of the easiest places in the world 
to open a business. Korea ranks very high internationally when it comes to t echnology, 
infrastructure, health and education.  
3.18.   And where there is room for improvement (and I will discuss current challenges facing 
Korea shortly), Korea is on a path of continuing reforms. It has, during the review period, 
continued with structural, m onetary and fiscal reforms to spur demand and investment, including 
in the areas of taxation, competition policy, SME support, innovation and even trying to tackle 
labour market rigidities. These are set out in much more detail in the Secretariat report 
(paragraph 2).  
3.19.   Finally, it is worth mentioning the new anti -corruption law, which just recently took effect, 
and which aims to enhance trust in public officials.  
3.20.   Like most major economies, Korea is facing lower growth. From posting 10% growth rates 
in the 19 80s, growth has averaged only 2.7% in the last five years. But the Secretariat predicts 
that growth will gradually restore some momentum in the course of 2017.  
3.21.   Regrettably, exports have every month year -on-year since January 2015, part of this due to 
the w eakness in its international customers. China is its biggest trading partner and we know that 
Chinese growth has slowed as well. As a result, the manufacturing sector is struggling a bit and 
the Government of Korea has indicated that the manufacturing -based economy which has driven 
the economic growth over the past 40 years has reached its limits and it is time to move to a new 
growth model based on innovation and entrepreneurship.  WT/TPR/W/116  • Republic of Korea  
 
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  3.22.   In this context, as we heard from the Deputy Minister, the Government has re cognized that 
the performance of its service sector lags behind those of developed economies, in large part due 
to a policy focus on manufacturing and a wide spectrum of regulations that are being cleaned up.  
3.23.   In addition, the high Household Debt is close to 90% of GDP and household credit growth 
remains elevated. Nonetheless, Korea is generally resilient although there are further steps that 
could be taken to strengthen the resilience of the economy.  
3.24.   By some estimates, top ten Conglomerates in Korea repres ent roughly 80% of GDP (2012 
figures). But besides these conglomerates, Korean companies are representing a decreasing share 
of total market capitalization of the world's top companies. For example, Hanjin, one of the world's 
largest shipping companies (7t h largest fleet), filed for bankruptcy protection in late August and is 
currently working to restructure its debt. Samsung responded well with global recall of Galaxy 
Note 7 phones after battery fires but deciding to replace 2.5 million phones could cost a s much as 
US$1 billion by one estimate.  
3.25.   The dominance of these large conglomerates are a contributor to what our Chair referred to 
as the "Korea discount" and this is what the market summarizes as the undervaluing of Korean 
stocks by international investor s because they perceive a higher investment risk compared to 
other countries. Other factors obviously contribute as well including the geopolitical risks of the 
neighbourhood and the high level of household debt.  
3.26.   If you have a dominant conglomerate sector,  that means that is going to be harder for SMEs 
to survive and, indeed, SMEs in Korea are characterized by low productivity, low salaries and more 
non-regular workers. They face challenges in attracting and retaining talents, in accessing to 
financing, esp ecially early -stage funding, and that means this make them more dependent on 
public support.  
3.27.   Given the structural differences between the large and the small in Korea, different solutions 
are going to be required in government policy.  
3.28.   Concerning the aging population in Korea, fewer workers are going to have to be carrying 
more seniors going into the future, aggravated by a low birth rate. This suggests that enhanced 
more open immigration policy is part of the solution but there is domestic resistance in Kor ea to 
increasing immigration and to further liberalizing mode 4 services.  
3.29.   The net result is greater pressure on healthcare, a lower labour productivity and rising 
unemployment among young job seekers. It is now one of its highest ever youth unemployment 
rate of 12.5% earlier this year (youth is defined as 14 -28 years old).  
3.30.   The Secretariat report indicates (page 20, footnote 37) that Korea ranked 115th out of 
140 countries in its flexibility with hiring and firing, according to WEF's 2015 -16 Global 
Competiti veness Index.  
3.31.   All of this to say that there is a major structural challenge when it comes to labour force and 
to productivity. Changes to labour laws, however, are being debated in the National Assembly as 
we speak.  
3.32.   Despite these challenges and, as the Cha ir and as the Deputy Minister highlighted, Korea 
has continued the path of reforms: regulatory reforms, the cost -in cost -out system, and consumer 
protection. Intellectual property legislation has been strengthened by very wide ranging 
amendments, including  the author's life plus 70 years, to better enforcement. Many of you had 
questions for clarification for copyright and pharmaceuticals.  
3.33.   Energy reforms are in train as Korea tries to transition from supply -led energy sector 
provided by the Government to dem and-centered management with more investment from private 
sector. That includes raising supply quotas for new and renewable energy.  
3.34.   We mentioned the information and communication technologies sector. Let me add more 
specific elements because Korea has laid  out a plan to promote fintech (technology applicable to 
the financial sector). It has legalized crowd funding and internet -only banks.  WT/TPR/W/116  • Republic of Korea  
 
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  3.35.   In the trade facilitation context, Korea has introduced de minimis  clearance process for 
online goods as well. That is t he good side of the potential challenge side as reflected in some of 
your questions.  
3.36.   As noted in the Secretariat report, Korea has not updated many of its notifications. Export 
subsidies have not been updated since 2010; there are investment restrictions i n several 
sub-sectors, including: beef cattle farming, inshore and coastal fishing, transmission and 
distribution of electric power and air transport. As several Members have noted, despite a 
commitment to privatize some state -owned enterprises, progress i s lacking. The unweighted 
average MFN tariff increased slightly during the review period to 14.1%. Many Members have 
called for Korea to reduce the large number of rate bands and the use of decimals.  
3.37.   Regarding government procurement, as our Chair noted fra nkly, despite membership in the 
GPA, there is a tiny share of foreign supplies in the actual procurement and the Secretariat report 
notes that Korea continues to try to use GP as a domestic economic policy instrument.  
3.38.   Just a few more words on a few specifi c sectors that worth further attention.  
3.39.   Agriculture: we have witnessed changes to the agriculture sector. But Korea continues to 
use export subsidies for certain farm products, continues to have very high tariff protection and 
gaps in notifications (speci al safeguards and domestic support).  
3.40.   Shipbuilding and shipping: there is some restructuring under way. Government support in 
the industry is not a new phenomenon and not unique to Korea, as discussed in OECD.  
3.41.   Other sectors highlighted in Members' questions  include automotive, pharmaceutical, and 
steel-industry activities and several questions seek clarification including for financial services and 
insurance.  
3.42.   The Deputy Minister highlighted the Government response. The policy papers are set out 
with a Four A rea Reform. The four areas being labour market including unemployment benefits; 
performance -based pay for the public sector to provide a more responsive public sector; promotion 
of the finance sector, including launching internet only banks, removing regul atory arbitrages; and 
promoting university restructuring to continue the fine record of strong educational bounds.  
3.43.   In addition, like other countries, in this time of slow growth, Korea is looking not only to 
monitoring policy but to fiscal stimulus as well . 
3.44.   For long -term demand, as the Deputy Minister mentioned, the challenges ahead are: efforts 
to address immigration through better settlement programmes, as well as domestically to 
strengthen day -care and fertility support. Efforts to foster the services in dustry including through 
higher tax rewards and R&D incentives and to revise tax code to try to give service firms the equal 
preferential treatment to exporting manufacturing companies.  
3.45.   All of which is to say that what you have is a country reporting to yo u on a remarkable, 
impressive growth in quality of life, prosperity and in trade. It's a country that overall has an 
impressive record of support from the multilateral system and proactive engagement in 
plurilateral, regional and bilateral initiatives. A c ountry that is handed with its own population 
about the challenges it faces: demographically, moving from a manufacturing to a services 
economy and getting rid of some of the rigidities by way of regulations, of labour policies and 
otherwise.  
3.46.   A very impres sive report where, nonetheless, as the Deputy Minister noted, the Government 
is facing remaining challenges and trying to continue its reforms. And it does so.  WT/TPR/W/116  • Republic of Korea  
 
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  4  STATEMENTS BY MEMBER S 
UNITED  STATES  
4.1.  Economics and trade together make up an important cornersto ne of the United States' 
bilateral relationship with Korea. Our economic relationship has only grown stronger since Korea's 
last trade policy review in 2012, when the U.S. -Korea Free Trade Agreement (KORUS) had just 
entered into force. During the interveni ng four years, U.S. -Korea trade in goods and services 
increased from US$126.5 billion to US$147 billion. This demonstrates a growing maturity and 
confidence in our bilateral economic relationship. South Korea now has a record -high level of 
US$40 billion in vested in companies in the United States, more than double the pre -KORUS levels, 
supporting over 45,000 American jobs and contributing nearly US$25 billion to U.S. exports 
annually (2014 data, for jobs and exports).  
4.2.  Outside of the KORUS FTA, U.S. -Korean tr ade cooperation also continues to deepen and 
grow. We are close partners in APEC, and the United States appreciates the cooperative nature of 
Korea's work in such areas as digital trade and services. Likewise, we value Korea's active 
engagement in plurilat eral initiatives such as TiSA and the Environmental Goods Agreement. 
Furthermore, we commend Korea for ratifying the WTO Trade Facilitation Agreement and welcome 
its leadership in implementation. We appreciated Korea's active participation in the expansion  of 
the Information Technology Agreement and the successful conclusion of that negotiation. We now 
urge Korea to fully and quickly implement its obligations under that agreement.  
4.3.  The United States commends Korea on its continued drive toward trade liberali zation, as 
evidenced by its ever -expanding network of FTAs. Since the release of the last trade policy review, 
Korea has concluded eight new FTAs.   
4.4.  We note that the TPR reports address Korea's customs procedures, an area our two countries 
have worked on c losely together. The United States welcomes the strides Korea has made since its 
last review in the area of customs modernization, and would emphasize the value of meaningful 
stakeholder involvement as its customs service continues to work to improve proce sses and 
procedures in accordance with the customs modernization principles being discussed in the World 
Customs Organization (WCO). We would note that we continue to see from Korea's customs 
authority significant scrutiny of the country of origin claims m ade for U.S. origin products, even 
when these are accompanied by official origin certifications or attestation documents. We hope to 
continue to work with Korea to increase trust in the U.S. documentation system. Likewise, as 
Korea shares information on cr eating customs clearance systems with developing nations, we 
strongly encourage a WCO -consistent approach.  
4.5.  With the implementation of KORUS, regulatory transparency in Korea has increased 
significantly. Still, Korea's regulatory environment is often mentio ned by businesses – Korean and 
foreign -owned alike – as slowing the country's economic progress. In line with good regulatory 
practices outlined by both APEC and the OECD, the United States strongly encourages Korea to 
make further strides toward increasin g stakeholder involvement, subjecting proposed new 
regulations to rigorous impact and cost -benefit analysis, and, wherever possible, to harmonize 
Korean requirements with international standards.   
4.6.  Regarding Korea's termination of its special treatment of rice under the WTO Agreement on 
Agriculture as referenced in section 4.2.2 of the Secretariat's report, as well as Korea's pending 
rectification and modification of its tariff schedule (G/MA/TAR/RS/396), the United States looks 
forward to working with Kore a to bring this matter to a timely and favorable conclusion. 
Furthermore, while we respect Korea's right to adopt sanitary and phytosanitary measures 
necessary for the protection of human, animal, and plant life and health, we look to Korea to 
ensure that its SPS measures are based on science and consistent with the WTO Agreement on the 
Application of Sanitary and Phytosanitary Measures. Also, we urge Korea, as one of the world's 
leading fishing nations, to take a more constructive stance in the negotiation s to prohibit subsidies 
that contribute to overcapacity and overfishing.  
4.7.  In trade, investment, and beyond, Korea is a strong ally of the United States. The Korean 
Government's dedication to opening its economy, increasing transparency, and implementing 
ambitious reforms will strengthen Korea's place in the global market, to the benefit of the Korean WT/TPR/W/116  • Republic of Korea  
 
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  people and Korea's many trade partners. We applaud Korea's progress since the 2012 review, and 
pledge to work closely with Korea in the WTO, APEC, KORUS and ot her venues towards our shared 
pursuit of an open global trading system.  
CANADA  
4.8.  Canada has enjoyed a long and positive relationship with Korea, through difficult and good 
times, and I am honoured to be able to recognize today the growth and development of a  valued 
partner. Our positive bilateral ties go back to the beginning of the 20th century with the arrival of 
Canadian missionaries to Korea, and strengthened through Canada's participation in the Korean 
War. Our relationship has entered a new phase with o ur Strategic Partnership in 2014, and with 
the recent Canada -Korea Free Trade Agreement, which entered into force on January 1, 2015.  
4.9.  Korea is widely recognized as an extraordinary economic success story. At the end of the 
Korean War, the nation was both physically and economically devastated, but through impressive 
policy choices, timely government intervention, and a refocusing of the economy on manufacturing 
and export, Korea was able to achieve the "Miracle on the Han River". It has risen from Asia's t hird 
poorest country in the 1950s to become the 11th largest economy in the world today. After 
receiving US$12 billion in foreign assistance between 1945 and the 1990s, Korea has moved 
admirably from aid recipient to aid donor.  
4.10.   Korea's example of persever ance in the face of adversity is an important one to remember 
as we now face new challenges in the global economic environment. While earlier growth was 
driven by promoting and enabling big business and the use of conglomerates and traditional 
manufacturin g, we applaud and agree with Korea's assessment that new efforts are needed to 
focus on a more open, innovative and creative economy, including the implementation of 
initiatives and support for SMEs and start -ups.  As part of these efforts, Canada welcomes  Korea's 
contribution to advancing the TiSA negotiations towards a successful conclusion by the end of 
2016.   
4.11.   More broadly, Canada shares Korea's view that the way forward in these times of global 
economic challenge is to increase and enable economic part icipation through transparent 
communication and consultations with stakeholders on trade issues; to simplify regulations; and to 
reduce barriers to trade. Canada also shares Korea's objective of helping SMEs take advantage of 
the opportunities resulting fr om FTAs.  
4.12.   We commend Korea's efforts towards these goals, including the structural and regulatory 
reforms that it is pursuing. At the same time, we hope that some consideration is given to 
simplifying Korea's tariff structure and to reducing tariffs, which are high by OECD -country 
standards. We would also welcome more attention being paid to the GPA's transparency provisions 
and to reporting the latest statistical data that is available. And we encourage Korea to implement 
its commitments under the expanded Information Technology Agreement without further delay.  
4.13.   Despite these trade policies that are cause for some concern, it is clear that Korea's efforts 
are bearing fruit. We congratulate Korea on being ranked first in the world last year on the 
Bloomberg In novation Index, and fourth in the world for ease of doing business according to the 
World Bank.  
4.14.   Canada is pleased with our cooperation with Korea bilaterally and at the WTO. We 
appreciate Korea's contribution to the WTO Factual Presentation exercise for t he Canada -Korea 
FTA this past April, which underscores both countries' commitment to promoting greater 
transparency. Regarding other ongoing work at the WTO, we continue to work constructively with 
Korea towards an ambitious, future -oriented Environmental Goods Agreement (EGA). On the WTO 
Work Programme on Electronic Commerce, Canada looks forward to advancing substantive 
discussions with Korea and other Members to explore how multilateral trade policy can be 
leveraged to maximize benefits of the digital ec onomy for inclusive economic growth.  
4.15.   We also commend Korea for its commitment to notify and consult its trading partners on 
regulatory changes that affect or potentially affect exporters and service providers. As Korea 
pursues regulatory reform, we encour age it to continue this practice to ensure that new or revised 
regulations do not inadvertently result in barriers to trade. On this point, Canada would like to WT/TPR/W/116  • Republic of Korea  
 
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  note our ongoing cooperation with Korea with respect to its new and proposed forest -product 
standards.  
4.16.   To close, and to return to the topic of my opening remarks, Canada is pleased to offer an 
overall positive assessment of the direction and efforts that Korea is taking in its economic and 
trade policies. We encourage Korea to continue to share thro ugh development assistance the 
lessons it has learned and is learning, and to provide guidance to LDCs that seek to emulate its 
success.  
4.17.   Canada is pleased to consider Korea as a valued trade, investment, and diplomatic partner. 
We look forward to continuin g to work with Korea on the global stage. Canada submitted a number 
of questions to Korea, most of which are focused on standards, investment policy, and intellectual 
property. We thank Korea for its responses to our questions and are examining those respo nses to 
determine whether we will be posing any follow -up questions.   
AUSTRALIA  
4.18.   Australia and the Republic of Korea have complementary economies of similar size although 
the ROK's population is twice Australia's. As Australia's fourth -largest trading part ner, our trade 
and economic links with Korea continue to be a key part of the bilateral relationship. Growth in the 
goods and services trade has been steady, averaging annual growth of 3.2% over the last five 
years. Total two -way trade was worth A$36 billi on in 2015.  
4.19.   Australia is the ROK's largest source of iron ore, coal, beef and sugar. Overall, Australia was 
the ROK's eighth largest import source in 2015. Going the other way, Australia was Korea's 10th 
largest merchandise market in 2015, the most valuabl e items being refined petroleum, passenger 
vehicles and civil engineering equipment.  
4.20.   The December 2014 entry into force of the Korea -Australia Free Trade Agreement took our 
already strong bilateral relationship to a new level. Australia is pleased with KAF TA's smooth 
implementation. Australia sees KAFTA as a high quality living agreement, with a busy work 
program which ensures it delivers meaningful outcomes for business. The quality outcomes 
achieved in KAFTA were positively reflected during the June meeti ng of the WTO Committee on 
Regional Trade Agreements.  
4.21.   Australia commends the ROK's goal of boosting growth, including the recognition of services 
and investment as key drivers of future economic growth as reflected in the ROK Government's 
economic agenda, The Three -year Plan for Economic Innovation. Australia applauds The Plan's 
focus on deregulation, labour market reform, public sector reform, as well as moving the Korean 
economy away from a dependence on manufactured product export -led growth towards grea ter 
domestic consumption and a larger, more productive services sector, including financial services.  
4.22.   Korea's services sector – and the accompanying services trade – represents an important 
potential growth engine for the ROK economy but this sector contin ues to be underdeveloped in 
comparison to other OECD countries, accounting for less than 60% of economic activity. Since the 
last trade policy review, there have been only minor increases in the contribution of services to 
ROK growth.   
4.23.   Australia sees pote ntial for further liberalization in Korea's legal services market. An open 
foreign legal market enables full collaboration between law firms across multiple jurisdictions; and 
offers significant potential to support the growth and diversification of trade and investment. 
Despite some opening up, the ROK's Foreign Legal Consultants Act remains unnecessarily 
restrictive. Australia urges Korea to further reform its legal services sector in ways that strengthen 
and expand the trade in legal services which are c onsistent with the object and purpose of GATS. 
This would enhance the ROK's global competitiveness, support foreign investment and create more 
local jobs.  
4.24.   On investment, Australia notes that the ROK's inward foreign direct investment remains 
amongst the l owest in the OECD despite the Korean government's efforts in promoting and 
attracting FDI. Ongoing concerns by business regarding the regulatory environment in the ROK, 
including the complexities of registration, notification, licensing and approval requir ements, appear WT/TPR/W/116  • Republic of Korea  
 
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  to be to be impeding foreign investment. Australia looks forward to continuing to share 
experiences with the ROK on enhancing regulatory transparency and streamlining regulatory 
procedures.  
4.25.   Australia commends the ROK's trade facilitation eff orts which have been recognized 
internationally. Australia appreciates the ROK's constructive contributions to the WTO trade 
facilitation discussions and looks forward to working with Korea in its ongoing improvements, 
including in advance consultation, st reamlining border procedures and interagency cooperation.  
4.26.   The Secretariat's report notes that the ROK's tariff arrangements remain complex and, in 
some cases, restrictive and inefficient. Korea's average applied MFN tariff rate also remains high. 
Australi a encourages the ROK to improve transparency of its tariff arrangements, including by 
reducing tariffs and/or simplifying its tariff structure, in line with its undertakings in its FTAs.  
4.27.   Regarding agriculture, Australia notes the ROK's focus on food safety  and in particular 
efforts to consolidate imported food safety regulations into the Special Act on Imported Food 
Safety Management and the development of a positive list system for pesticides and agricultural 
veterinary chemicals residue limits. Australia supports the implementation of food safety regulation 
based on science and harmonized with international standards. Australia is interested to hear if the 
ROK's food safety initiatives are managing food safety risks, reducing regulatory burden and 
promotin g transparency in the assessment of agricultural imports. Australia reminds Korea of its 
commitment to improve regulatory quality. We urge the ROK to work constructively with 
stakeholders – including trading partners - in order to minimize potential disrup tions the Special 
Act and positive list system could have to trade.  
4.28.   Australia notes state -owned enterprises continue to play a major role in the ROK, 
particularly in the energy sector where prices are often regulated. The liberalization of the ROK's 
energy  and resources sector would represent an opportunity to, increase competition and boost 
efficiency, provide more options for Korean consumers, deregulate, move towards market -based 
tariffs and facilitate foreign investment  
4.29.   Australia commends the ROK on it s expressed commitment to politically challenging 
structural reform. Australia encourages the ROK to proceed with the implementation of such 
structural reforms. This would increase the flexibility of Korea's economy, enhance its ability to 
respond to growi ng external competition and help the ROK to meet its broad -based economic and 
welfare objectives including inclusive growth and a narrower wealth divide.  
THE SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU  
4.30.   Korea and the Separate Customs Terr itory of Taiwan, Penghu, Kinmen and Matsu have 
enjoyed close and fruitful trade relations for many years. Korea is our 5th largest trading partner, 
with a total value of two -way trade between us of US$26 billion dollars in 2015.  
4.31.   At the same time, the inte gration of our respective industries, particularly in the electronics 
and high -tech sectors, continues at a rapid pace.  
4.32.   Indeed, the openness of Korea's economy to international trade and the scale of its 
integration in the world economy is clearly reflect ed in the fact that trade in goods and services 
accounted for nearly 85% of its GDP in 2015. In addition, the global expansion of its multinational 
enterprises, such as Samsung, continues to translate into significant outflows. And, Korea remains 
not only a major exporter of goods, but of capital as well, in the form of outward investment. So. 
all-in-all, despite the slowdown in the global economy, Korea's basically strong fundamentals have 
definitely helped to maintain its macroeconomic stability and the r esilience of its export -led 
economy.  
4.33.   We also admire the progress made in its programme of structural reform, with initiatives 
such as the Smart Government Strategy, the Three Year Innovation Plan, and its Cost -in, Cost -out 
approach to promoting regulatory reform. In 2015, Korea was ranked "top performer" by the 
United Nations in its e -Government Survey, and in 2016 it ranked 4th out of 183 countries in 
terms of "ease of doing business" in a recent Report of the World Bank which must be especially 
welcomed b y traders, who will be the real beneficiaries of trade facilitation.  WT/TPR/W/116  • Republic of Korea  
 
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  4.34.   We are also pleased to note Korea's on -going commitment to global engagement and policy 
liberalization by its continuing to pursue bilateral FTAs. We have been working hard together on 
WTO plurilateral agreements such as the ITA Expansion, the TiSA and the EGA, and we are looking 
forward to Korea's implementation of the ITA Expansion very soon.  
4.35.   Despite Korea's efforts in pursuing economic reforms and trade liberalization, however, the 
OECD  index of trade and investment barriers was the second -highest in the OECD area in 2013, 
which might explain why Korea's the inward FDI has remained low among OECD countries over 
past years.  
4.36.   We thank Korea for its answers to our questions submitted in adva nce. There are just a few 
points of policy that I would like to mention here, if I may.  
4.37.   One is on the subject of exchange rates. Over the past several years, Korea has maintained 
its floating exchange rate system as a buffer against external shocks and to facilitate adjustment 
in favour of domestic sources of growth. The 2015 IMF report suggests that the Won should 
remain market determined with intervention limited to smoothing excess volatility. We tend to 
agree with this comment and would urge Korea to li mit its foreign exchange intervention only to 
circumstances of disorderly market conditions.  
4.38.   Furthermore, Korea's tariff regime remains relatively complex and unpredictable and the 
average of MFN applied tariffs rose from 13.3% in 2012 to 14.1% in 2016. We  would encourage 
Korea to simplify its tariff structure with a view to providing greater predictability.  
4.39.   And, just one other point on Korea's rather dualistic economy, as we see from the 
Secretariat Report there are very large productivity gaps between the  manufacturing and the 
services sectors, and between the conglomerates and SMEs. It is impossible to deny that 
conglomerates have played a key role in Korea's development of today's Korea. However, its over 
reliance on the exports of a few large conglomera tes makes the economy vulnerable to external 
shocks, especially if foreign demand drops as a result of a slowdown in key export markets for 
Korea. The current crisis with Korea's biggest container line is a case in point, which perhaps might 
alert Korea to  reconsider its economic development model.  
4.40.   In closing, we welcome the progress made by Korea since its last review, and we pledge to 
continue working closely with Korea both in the WTO, and in other regional forums like APEC, and 
bilaterally of course, t o pursue our common goal of a free and open global trading system.  
SWITZERLAND  
4.41.   Korea is a seasoned Member of the WTO. The country's contributions to a dynamic world 
trading system are manifold and very much appreciated. The Korean economy has over time 
succeeded in cultivating reliable traits which are easily identifiable. Korea continues to strive for 
openness. It seeks further integration with markets both near and afar with a focus on trade in 
manufactures.  
4.42.   The country's competitiveness finds regular ex pression in sizeable current account 
surpluses. These surpluses enable Korea to be a net exporter of capital. And indeed, last year's 
outflows, both in terms of Korean FDI and portfolio investments, were once again impressive. This 
structure inherent to th e Korean balance of payments demonstrates economic strength, but points 
to shortcomings as well.  
4.43.   As a distinctive exporter of capital, Korea's investors are in constant search of good 
investment opportunities abroad. Yet as the Secretariat's report shows, similarly conducive 
investment conditions for foreign capital at home are not always in place.  
4.44.   It is true, some important strides towards more openness have been made in recent years. 
And as the Republic of Korea has herself pointed out, FDI inflows have been on the rise. But many 
notable restrictions remain.  
4.45.   Not only do these limitations curtail the perspectives for further foreign investment. They 
may also hamper local business.  WT/TPR/W/116  • Republic of Korea  
 
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  4.46.   Productivity growth seems to be needed especially in the area of services.  The local SME 
landscape still appears to be relatively underdeveloped as well. In our own experience, thriving 
SMEs can make the economy as a whole more innovative and hence more productive.  
4.47.   And as the most recent publication by the ITC has underlined, i t is the most productive 
SMEs which tend to be able to enter global value chains. For only productive businesses will 
normally be in a position to bear the costs of meeting international product standards. Productivity 
growth could also help to counterbala nce the recent appreciation of the real effective exchange 
rate.  
4.48.   In recent years, the Korean authorities have used the fiscal and monetary toolbox available 
to them to adapt to economic shocks and to support domestic demand. While these flexible 
policies may be useful in the short run, it is somewhat unclear to what extent they contribute to a 
predictable economic framework for all economic actors involved.  
4.49.   It goes without saying that predictability is also a key issue when it comes to trade policy. 
In thi s vein, we question the utility of so -called flexible tariffs and welcome Korea's intention to 
phase them out.  
4.50.   Aside from the fact that Korea's tariff system could in general be streamlined, we feel that 
the sundry application of what is termed "usage" ta riff rates adds to the system's complexity.  
4.51.   It is also interesting to note that there seems to be a conflict of interest with respect to the 
administration of agricultural tariff quotas. In some instances, the administering agency has ties 
with domestic p roducers competing with the imported item.  
4.52.   With respect to fossil fuel subsidies, Switzerland welcomes Korea's decision to end support 
for coal production by 2020.  
4.53.   Switzerland and Korea are maintaining intensive and mutually profitable trade relations. 
Trade between Switzerland and Korea has increased by 35% in the last couple of years, not least 
on account of the Free Trade Agreement between EFTA and Korea. However, as this Agreement 
has been concluded 10 years ago, it does not exploit the full commercial  potential of both partners 
and we believe that it should be updated.  
4.54.   Let me conclude by commending Korea for the on -going reform efforts which address some 
of the points I have just raised. We look forward to further constructive engagement with Korea in 
this house and within various groupings such as the G10 and wish the Korean delegation a fruitful 
trade policy review.  
EUROPEAN  UNION  
4.55.   As a preliminary general comment, I would like to underline that the EU regrets that no 
alternative timelines were used; t his would have allowed Members to better prepare this meeting.  
4.56.   Now, turning to the substance of the Republic of Korea's trade policy review, let me start by 
noting the continuous economic growth of Korea and its role in international trade. Korea is 
curren tly one of the most dynamic economies in the world, ranked 11th biggest in 2015.  
4.57.   Korea demonstrates economic resilience in a low growth world. Internally, Korea adapts its 
domestic policies aimed at a creative economy and regulatory reform, while on the i nternational 
stage it remains committed to trade liberalization and open markets.  
4.58.   The EU welcomes the policy measures adopted by the Korean Government as part of the 
"Creative Economy plan" in 2013 and the "Three -Year Plan for Economic Innovation" in 2014.  
These measures represent a good policy mix, allowing Korea to adjust to the challenging external 
conditions and also to grow at an average rate between 2.3% and 3.3% per year during the period 
under review.  
4.59.   Korea is an important partner for the EU not on ly on the global stage but in particular in the 
Asian region.  WT/TPR/W/116  • Republic of Korea  
 
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  4.60.   The EU and Korea share common values and trade interests. This has been demonstrated 
by the continuing increase of the trade and investment exchange between them, strengthened 
further with the conclusion of the bilateral Free Trade Agreement in 2011. In 2015, the EU -Korea 
trade exchange totaled  €90 billion. Korea was the EU's eighth largest source of imports and EU's 
ninth largest export market. Conversely, the EU has consolidated its position in Korea as Korea's 
second largest supplier, the third largest export market and the largest source of foreign direct 
investments. In addition, bilateral trade in the services sector has also increased significantly over 
recent years.  
4.61.   Besides the strong bilateral relation, the EU and Korea also cooperate at multilateral level 
on a number of global issues. We appreciate Korea's role in several negotiating groups and, in 
particular, for having already joined the Government Procurement Agreement and for its 
participation in the discussions on the Environmental Goods Agreement. The EU would like to urge 
Korea t o accelerate its internal process for a swift implementation of the expanded Information 
Technology Agreement.   
4.62.   In this spirit, we appreciate the good reports prepared for this review by the authorities of 
the Republic of Korea and by the WTO Secretariat.  The EU has submitted a set of questions in 
advance of this meeting, and would like to reiterate here a few elements in relation to trade -
related developments about which the EU expressed concern.  
4.63.   First, with regard to Sanitary and Phytosanitary matters, the EU regrets that no major 
improvements can be recorded in Korea during the period under review, namely on regionalization 
and transparency. We note the continued discrepancies between the Korean legislation, the WTO 
SPS Agreement and the relevant intern ational standards of the OIE, especially for regionalization 
and non -recognition of OIE status of the countries for beef. Unjustifiably, Korea continues to 
impose country -wide bans on EU Member States when an animal disease outbreak occurs (African 
Swine F ever, Avian Influenza) and lifts them only after lengthy and unclear approval procedures. 
The EU has always been transparent and demonstrated time and again that it implements the 
regionalization principle reliably and consistently in accordance with the W TO SPS Agreement and 
the relevant international standards. We therefore urge Korea to take due account and 
immediately recognize the regionalization measures as applied by all EU Member States.  
4.64.   The EU is also concerned about the insufficient transparency regarding consultations on new 
Korean legislation. The fact that Korea hardly gives sufficient time for trading partners to comment 
on the draft legislation and sufficient time to adapt to the new rules is worrisome.  
4.65.   Second, while the EU recognizes that K orea has taken steps to further open up its economy 
to foreign investors, EU companies still note a lack of competition in key services sectors such as 
the professional, financial, telecommunications, and transport ones. Therefore, we would welcome 
a more ambitious opening and a more level playing field in the area of foreign direct investment.  
4.66.   Third and finally, the adequate protection of intellectual property rights is also fundamental 
to attract FDIs and for the smooth operation of businesses. While we take note of the efforts made 
by Korea during the period under review, we urge Korea to intensify its efforts, in particular with 
regards to IPR enforcement.  
HONG  KONG,  CHINA  
4.67.   Hong Kong, China (HKC) and Korea have long been enjoying strong trade and economi c 
ties. Korea was our 6th largest trading partner last year, with the value of our bilateral 
merchandise trade exceeding US$29 billion. It was also one of our largest trading partners in 
services in 2014, with a total value of services trade exceeding US$3 .9 billion.  
4.68.   Korea is widely recognized for its trade facilitation efforts. We applaud in particular its early 
ratification of the Trade Facilitation Agreement, and its decision to designate all the provisions 
therein as Category A commitments. We are also pleased to note new trade facilitation measures 
in Korea during the review period, including the introduction of a de minimis  clearance process for 
consumption goods purchased online.  WT/TPR/W/116  • Republic of Korea  
 
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  4.69.   At the same time, it is encouraging to know that the percentage of indu strial standards in 
Korea which have been harmonized with international ones has risen significantly, from about 60% 
in 2010 to 97% in 2016. We hope the authorities can continue their good work in this regard, in 
order to facilitate international trade.  
4.70.   As for tariffs, we are glad that Korea has bound more than 90% of its tariff lines and that 
over 99% of its tariffs are ad valorem. However, the tariff structure remains complex; and 
protection for agricultural products high, with an average MFN applied rate  ten times that of 
non-agricultural products and rates that can go up to 887%. We encourage Korea to simplify its 
tariff regime and bring down its tariffs.  
4.71.   Tariff, nonetheless, is only one of the measures that Korea maintains for its highly protected 
agriculture sector. Although the sector only contributed to around 2.3% of the country's GDP in 
2015, the total support it received amounted to 1.8%. Such a level of domestic support was much 
higher than the OECD average. We encourage Korea to liberalize its ag ricultural sector.   
4.72.   One notable development since the last TPR is that Korea's anti -dumping (AD) initiation has 
increased substantially, from eight cases during the previous review period to 20 cases during this 
one. Moreover, the 13 sunset reviews comple ted between 2012 and 2015 had resulted in the 
extension of 12 anti -dumping measures. To avoid unnecessary trade restrictions, we encourage 
Korea to exercise restraint in taking anti -dumping actions, and to review the measures critically to 
ensure that only  the fully justified ones remain in force.  
4.73.   During this review period, Korea's state -owned enterprises continue to participate in a wide 
range of trade and/or trade -related activities in different sectors including agriculture, mining, 
financial services, b roadcasting and media, and transport, despite some privatization efforts. We 
encourage Korea to foster greater private sector participation to enhance competition and 
productivity.  
4.74.   In this connection, we note that there had been quite a number of regulator y changes in the 
services sectors, affecting financial, telecommunications, maritime and distribution services. Some 
of them, such as the Mobile Device Distribution Improvement Act of 2014, can enhance 
competition in the sector. We encourage Korea to furth er open up its services market to foreign 
investors, especially for sectors which are currently subject to foreign -ownership ceilings.  
4.75.   Korea and some other WTO Members including HKC are now actively engaged in the 
negotiation on an Environmental Goods Agre ement, the benefits of which will be shared with all 
WTO Members by virtue of the MFN principle. We look forward to working closely with Korea and 
other participants towards a successful conclusion of the Agreement by the end of this year.  
4.76.   Finally, as fell ow Member of the WTO, HKC would like to thank the Korean Mission, under 
the capable leadership of Ambassador CHOI Kyonglim, for their constructive engagement in, and 
contributions to, the work of the WTO. We wish Korea a very fruitful and successful TPR.  
GUATEMALA  
4.77.   El impresionante crecimiento económico de Corea durante los últimos 60 años es un caso de 
éxito muy importante que merece ser estudiado y analizado con mayor profundidad. A pesar de 
contar con una topografía montañosa, escasas superficies llanas y  recursos naturales limitados, las 
autoridades coreanas impulsaron el crecimiento del país desde la década de 1960, por medio de 
políticas económicas orientadas al comercio internacional y basadas en un rápido proceso de 
industrialización e innovación. Gra cias a esta visión, las exportaciones coreanas crecieron 
exponencialmente y pasaron de 32 millones de dólares EE.UU. en 1960, a más de 559 mil millones 
de dólares EE.UU. en 2013. Su PIB per capita de 1948 equivalía a 60 dólares EE.UU. y hoy supera 
los 26 m il dólares EE.UU.  
4.78.   Guatemala y Corea sostienen una estrecha relación de amistad y cooperación desde hace 
varias décadas. Las relaciones diplomáticas entre nuestros países datan de 1962 y se han 
desarrollado en un importante número de áreas como el ámbito po lítico, comercial, educativo, 
cultural y recientemente en materia de seguridad. Adicionalmente, Corea es socio observador del WT/TPR/W/116  • Republic of Korea  
 
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  Sistema de Integración Centroamericana (SICA), mecanismo por el cual mantienen un contacto 
constante con los países del istmo cent roamericano.  
4.79.   A partir de la década de 1980, Guatemala acogió un importante número de empresas 
coreanas de la industria de vestuario y textiles. Actualmente residen en Guatemala más de 10 mil 
ciudadanos coreanos, situación que ha permitido un interesante i ntercambio de culturas entre 
nuestros países.  
4.80.   Las relaciones comerciales entre nuestros países atraviesan un momento muy especial, 
pues Centroamérica y Corea negocian desde 2015, un acuerdo de Libre Comercio, destinado a 
estrechar aún más nuestros vínculo s e incrementar el volumen y diversidad de nuestros 
intercambios comerciales. A la fecha se han concluido de manera exitosa seis rondas de 
negociación y se espera en los próximos meses concluir los temas restantes.  
4.81.   De acuerdo con cifras de nuestro Banco C entral, la balanza comercial entre Corea y 
Guatemala superó los 530 millones de dólares EE.UU. en 2015. Los principales productos 
guatemaltecos exportados a Corea son el plomo, el azúcar, el café, el banano y el zinc. En sentido 
inverso, los principales pr oductos importados desde Corea son tradicionalmente vehículos, 
máquinas y los aparatos mecánicos, los materiales plásticos y sus manufacturas. Durante 2015, se 
recibieron inversiones coreanas en Guatemala por más de 23 millones de dólares EE.UU., 
principal mente en la industria manufacturera. Durante el período 2007 -2015, las inversiones 
coreanas en Guatemala superaron los 289 millones de dólares EE.UU.  
4.82.   En relación con el examen que hoy nos concierne, aplaudimos los esfuerzos emprendidos 
por Corea para mejo rar su marco normativo y evitar la creación de reglamentaciones adicionales 
innecesarias, proceso que ha conducido a una reducción en 10% de esta materia. Asimismo, es 
importante subrayar la introducción de medidas destinadas a facilitar el comercio, tales  como la 
aprobación de un despacho de minimis  para ciertos productos comprados en línea, sistemas más 
expeditos de valoración en aduana y la ratificación del Acuerdo sobre Facilitación del Comercio. 
Durante el período estudiado, Corea también hizo esfuerzo s importantes por reducir el número de 
normas industriales y adaptar las normas vigentes a estándares internacionales.  
4.83.   Constituyen importantes retos en el futuro próximo para Corea, la simplificación de su 
sistema arancelario, propiciar una mayor apertura  de su sistema de contratación pública, reducir la 
proporción de la participación estatal en la economía y eliminar progresivamente las protecciones 
en materia agrícola.  
CHILE  
4.84.   Chile recibe con entusiasmo la realización del séptimo Examen de Política Comerc ial de la 
República de Corea, y felicita a Corea por el trabajo realizado desde su último examen el año 
2012.  
4.85.   Chile y Corea son dos economías abiertas al mundo que comparten una visión común en su 
estrategia de integración, promotores del libre comercio y  que buscan continuamente coordinarse 
en los grandes temas de la agenda internacional.  
4.86.   Las relaciones económico -comerciales entre Chile y Corea se enmarcan bilateralmente 
dentro del Tratado de Libre Comercio suscrito en febrero de 2003, el cual entró en v igor el 1 de 
abril de 2004. Cabe resaltar que éste acuerdo marcó un hito importante en la política comercial, 
puesto que fue el primer Acuerdo de Libre Comercio suscrito entre un país latinoamericano y uno 
asiático y, por tanto, fue el primer paso en el ex itoso proceso de inserción que Chile ha recorrido 
en la región del Asia Pacífico desde ese entonces.   
4.87.   Dicho acuerdo, que ha cumplido 12 años desde su entrada en vigor, tiene una cobertura 
comprehensiva que incluye compromisos sustantivos en acceso a merca dos para mercancías, así 
como disciplinas relacionadas con las inversiones, servicios transfronterizos, entrada temporal de 
personas de negocios, propiedad intelectual, transparencia, entre otros.  
4.88.   Para Chile, Corea es un importante socio comercial dentro del Asia, ocupando el tercer lugar 
en relación al volumen en el intercambio comercial con ese continente.  WT/TPR/W/116  • Republic of Korea  
 
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  4.89.   El intercambio comercial entre Chile y Corea ha llegado en torno a los 6.052 millones de 
dólares EE.UU. en 2015. Las exportaciones chilenas a Corea h an presenciado una disminución de 
0,8% (2010 -2015), totalizando en 2015 4.047 millones de dólares EE.UU., mientras que las 
importaciones han alcanzado los 2.005 millones de dólares EE.UU.  
4.90.   La economía chilena y de Corea son altamente complementarias, por l o que observamos 
con optimismo la posibilidad de fortalecer aún más nuestro intercambio comercial y diversificar la 
canasta exportadora. Es por ello, que vemos como una gran oportunidad la profundización de 
nuestra relación comercial.  
4.91.   A nivel multilateral,  Chile y Corea comparten importantes coincidencias en distintos foros 
internacionales. En ese marco, quisiera destacar el trabajo que ha hecho en la OMC y su 
compromiso con la Agenda de Doha para el Desarrollo, así como a través de la implementación de 
los compromisos asumidos en las Conferencias Ministeriales de Bali y Nairobi.  
4.92.   Visiones comunes tenemos también en la agenda futura, como por ejemplo en materia de 
comercio electrónico, reglamentación doméstica, y tantos otros temas que día a día intentamos 
avanzar dentro de la OMC. Al mismo tiempo, quisiera aprovechar la ocasión de alentar a Corea en 
avanzar en los procesos de reforma en la agricultura.  
4.93.   Adicionalmente, quisiera destacar el trabajo conjunto que se ha hecho en el Foro APEC, 
desde la incorporac ión de mi país en 1994, hecho que ha constituido en uno de los pilares de la 
estrategia chilena para insertarse económicamente en los flujos comerciales del Asia Pacífico y 
contribuir, además, a crear reglas claras y procedimientos transparentes en materia  comercial.  
4.94.   Por otra parte, destacable es también el interés de Corea en la Alianza del Pacífico, y su 
adhesión en calidad de observador en junio de 2013.   
4.95.   Para este ejercicio de Examen de Política Comercial, Chile ha formulado 4 consultas, 
principalment e en el área de inversiones, servicios y medidas sanitarias y fitosanitarias. 
Agradecemos profundamente las respuestas a dichas consultas.  
4.96.   Particular interés reviste además la estrategia de desarrollo asumida por Corea, y su 
capacidad de resiliencia en el  enfrentamiento de una situación económica mundial compleja, en el 
que pone como eje central el establecimiento de una "economía creativa", el cual ha permitido 
mantener a Corea entre las economías con los índices de innovación más altos del mundo.  
4.97.   A pesa r de las dificultades económicas a nivel mundial, Corea ha podido lograr una tasa 
media de crecimiento económico de un 2,8% anual para el periodo 2012 -2015. Adicionalmente, 
destaca su nivel su apertura comercial, el cual ha alcanzado un 84,8% de su product o interno 
bruto (PIB).  
4.98.   Además, observamos con especial interés los ejes que recientemente han marcado su 
política económica, contenida fundamentalmente dentro del Plan Trienal de Innovación Económica, 
el cual busca la creación de un entorno que facilite e l desarrollo de una economía creativa y la 
introducción de reformas estructurales. Adicionalmente, cabe destacar los esfuerzos desplegados 
en relación a la implementación de una política de reforma de la reglamentación, de manera de 
estimular la inversión y el consumo, el cual ha permitido revisar un número significativo de 
reglamentos entre periodo el 2014 y 2015.   
4.99.   No cabe duda que dichas políticas representan a su vez una fuente de inspiración para 
muchos otros Miembros también, incluido Chile.   
4.100.   Como me ncioné con anterioridad, con Corea tenemos importantes coincidencias a nivel 
multilateral, que nos ayudarán en el futuro próximo a robustecer el sistema actual de comercio, a 
través de la elaboración de reglas claras que entreguen un mayor grado previsibil idad en el 
intercambio de bienes y servicios a nivel mundial.  WT/TPR/W/116  • Republic of Korea  
 
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  NORWAY  
4.101.   We commend the Republic of Korea for its impressive track record of economic 
development and trade liberalization as highlighted by previous speakers. The Korean economy is 
open to inter national trade and its integration into the world economy is reflected by the high ratio 
of its trade in goods and services to GDP. According to the WTO Secretariat, this stood at 84.8% in 
2015, impressive, but nevertheless a reduction compared to 2012.  
4.102.   The Republic of Korea is an important trading partner for Norway. Through EFTA, we 
signed a Free Trade Agreement with the Republic of Korea in 2005. In 2015, the Republic of Korea 
was Norway's seventh largest source of imports and 10th largest export market . If the European 
Union is counted as a bloc, the Republic of Korea is Norway's fourth largest trading partner.  
4.103.   We noted that the discussant pointed out that many questions posed by Members were 
related to shipbuilding. Norway and Korea are both shipbuild ing nations. We have many common 
interests in the shipbuilding discussions in the International Working Group concerning a possible 
new agreement on export credits. We appreciate the close cooperation with Korea on this matter. 
It is of great importance to  us that competition among exporters is based on the quality and price 
of the offered goods and services, rather than on the most favourable terms and conditions of the 
financing. We would like to emphasize the importance of having broad international guid elines on 
matters such as premium rates, interest rates and transparency. We look forward to continuing 
the dialogue with the Republic of Korea on these issues.  
4.104.   Paragraph 3.162 in the Secretariat's report describes the government support schemes for 
Korean  ship builders and Korean offshore equipment suppliers. It is important that policies and 
regulatory mechanisms are designed to ensure fair and transparent competition between Korean 
and foreign offshore and maritime equipment suppliers. It has been pointe d out, among others in 
the Peer Review of the Korean Shipbuilding Industry and Related Government Policies by the 
OECD Working Party on Shipbuilding from January 2015 that Korean government -related agencies 
hold substantial ownership in Korean shipbuilding  companies. We urge the Korean Government to 
ensure that ownership by its government -related agencies does not hamper free competition and a 
level-playing field among the industry players in the shipbuilding and subsidiary supply industries.  
4.105.   Seafood is a v ery important Norwegian export to the Republic of Korea. Our exports 
include a significant volume of fresh, farmed fish. This is a perishable commodity and vulnerable to 
any delay in the transportation chain. According to our information, approximately 3% of these 
products are subject to random testing in the Republic of Korea and kept in custody until the test 
results are ready, 5 -7 days later. During this delay, the quality and shelf life of the products are 
reduced, sometimes to a level where destruction  is the only option for the traders. It is important 
that routines for random testing of perishable seafood be set up in a way that minimizes quality 
reduction and shortening of shelf life of fresh seafood. While addressing the fisheries sector, we 
urge Ko rea to take active part in the multilateral negotiations on fisheries subsidies.  
4.106.   We would like to recognize the Republic of Korea's efforts to increase its renewable energy 
supply while reducing reliance on coal. We encourage Korea to avail itself of the G 20/APEC fossil 
fuel peer review process.  
4.107.   Let me conclude by emphasizing that Norway shares with the Republic of Korea a strong 
interest in strengthening the multilateral trading system. We are pleased with our close 
cooperation across almost all aspects o f trade policy and negotiations, be it on ITA, EGA, Tisa, 
remaining Doha issues and otherwise. We look forward to pursuing and further enhancing our 
cooperation in this regard.  
SINGAPORE  ON BEHALF  OF ASEAN  
4.108.   ASEAN and the Republic of Korea enjoy longstanding  and cordial trade relations. The 
ASEAN -Korea FTA which entered into force in January 2010 laid a solid foundation for the two -way 
trade between ASEAN and Korea.  WT/TPR/W/116  • Republic of Korea  
 
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  4.109.   Last year, Korea was ASEAN's fifth largest trading partner, as well as investment source 
with total bilateral merchandise trade that value at US$122.9 billion and foreign direct investment 
inflows from Korea to ASEAN recorded at US$5.7 billion.  
4.110.   ASEAN and Korea are also currently involved in the Regional Comprehensive Economic 
Partnership (RCEP) neg otiations which include ASEAN and six existing FTA partners.  
4.111.   During the ASEAN -Korea summit in Laos just last month, our leaders indicated the shared 
commitments to intensifying the RCEP negotiations with a view to achieving a modern, 
comprehensive, high -quality and mutually beneficial agreement.  
4.112.   In ASEAN's view, Korea has been an active, constructive and invaluable Member of the 
WTO. We welcome Korea's ratification of the TFA in July last year and also Korea's positive 
contributions to the plurilateral nego tiations under the WTO, including its role in the conclusion of 
the ITA expansion in Nairobi last year and its continued efforts in EG negotiations.  
4.113.   We thank Ambassador Choi Kyong -Lim and his delegation for their amicable and 
constructive engagement with t he ASEAN delegation here in Geneva.  
SINGAPORE  
4.114.   Singapore and Korea are similar in many respects. We are both highly dependent on 
external trade, firm supporters of the rules -based multilateral trading system, and face similar 
challenges such as the shift to wards productivity -led growth, and vulnerability to external shocks. 
Our outlook on trade is similar – we share the belief that the answer to slowing trade growth is not 
protectionism, and that keeping our markets closed is not the answer. In this regard, we commend 
Korea for its continued efforts to keep its economy free and open, and its initiatives to keep its 
regulatory frameworks up to date, and to ensure a business -friendly environment. The Three -Year 
Plan for Economic Innovation has been a key driver  in this regard.   
4.115.   We note that Korea's Foreign Investment Promotion Act was recently amended to attract 
more investments from global companies, though some sectors remain closed to foreign 
investment. As the third largest investor in Korea, Singapore comp anies have a keen interest in 
the Korean market. The legal framework provided in the Korea -Singapore FTA (KSFTA) has 
enabled our businesses to operate with greater certainty and ease of mind. We look forward to 
greater efforts which would bring down remain ing trade and investment barriers, including through 
the updating of the KSFTA to meet the evolving needs of our businesses. We see much potential 
for deeper economic collaboration as Korea develops its Creative Economy and as more Korean 
companies use Sin gapore as a base to expand their regional operations.  
4.116.   Korea and Singapore share a common interest also in promoting greater economic 
integration and cooperation within the region. The ASEAN -Korea Free Trade Area and ongoing 
Regional Comprehensive Economic Partnership are key features in this regard.  
4.117.   At the WTO, Korea has been an active and engaged Member. We note that during the 
period under review, Korea has made improvements to facilitate more open and free trade, 
including ratifying the Trade Facilitati on Agreement, replacing its rice import quotas with tariff rate 
quotas, abolishing its rice export quota regime, and the strengthening of intellectual property 
rights legislation. However, we note also that Korea's average applied MFN tariff rate during th e 
review period increased. We hope that Korea will continue to take steps towards more 
market -friendly and trade facilitative policies, in particular in its agriculture sector. Also, while 
Korea has improved its WTO notifications record, notifications in a reas such as government 
procurement, export subsidies and domestic support are still incomplete. We hope that this will be 
rectified before long.  
4.118.   Singapore appreciates our close working relationship with the Korean delegation led by 
Ambassador Choi Kyong -Lim in Geneva. We also would like to express much appreciation for the 
active role Korea has played in helping Members understand the digital economy and current trade 
issues, such as through the organization of the two MIKTA workshops so far. We look forw ard to 
continuing our close cooperation in the days ahead.  WT/TPR/W/116  • Republic of Korea  
 
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  CHINA  
4.119.   We are pleased to see the achievements made by Korea during this review period. We 
have noted that the openness of the Korean economy to international trade, and its integration 
into the worl d economy continued to be reflected by the high ratio of its trade in goods and 
services to GDP, and that the Korean Government has continued to improve its regulatory 
framework for the enhancement of its business environment.  
4.120.   Korea is an active participa nt in the multilateral trading system, a party of the expanded 
Information Technology Agreement (ITA), and the 10th WTO Member of ratifying the WTO Trade 
Facilitation Agreement (TFA). We commend Korea's position, as stated in its Government report, 
as a st rong advocate of the WTO's commitment to pursue trade liberalization.  
4.121.   China and Korea are important trading partners. China is Korea's largest trading partner, 
largest export market, largest source of import, and second largest investment destination, whi le 
Korea is China's third largest trading partner, and second largest source of foreign investment.  
4.122.   The China -Korea FTA entered into force in December 2015, which serves as a milestone in 
the history of our bilateral relations, and a connecting point of C hina's Belt and Road Initiative and 
Korea's Eurasia Initiative. We believe this FTA would be a building bloc to Asia's development and 
prosperity and to global economic revival.  
4.123.   That said, some aspects of Korea's trade and trade -related policies and pract ices still cause 
Members' concerns. For instance, Korea's 2016 customs tariff remains relatively complex. The 
agriculture sector remains highly protected. We still have concerns over the allocation of in -quota 
rice imports, and we would continue working wi th Korea over these concerns. In terms of market 
access for foreign investment, FDI caps are still in place for some sub -sectors, beef cattle farming, 
air transport and supporting services, and telecommunication services, just to name a few. We 
encourage K orea to continue with its efforts, as stated in its Government Report, to seek ambitious 
and high -standard trade liberalization conforming with the WTO rules, and to build a transparent 
investment environment. We hope Korea will implement ITA commitments w ithout any further 
delay.  
MÉXICO  
4.124.   Mi delegación se une a otras delegaciones que me han precedido en el uso de la palabra 
para aplaudir los esfuerzos de Corea que lo han llevado a ser uno de los países en desarrollo más 
avanzados del mundo y un líder en inno vación tecnológica, según se demuestra en numerosos 
indicadores de desempeño económico.  
4.125.   Esto, aunado a ambiciosas políticas de Gobierno, muchas de las cuales han sido 
mencionadas, como la expansión de sus acuerdos de reconocimiento mutuo de operadores 
económicos autorizados, la introducción de un despacho de minimis  para los artículos comprados 
en línea y muchas otras, le han colocado a la vanguardia en materia de facilitación comercial, lo 
que sin duda ha coadyuvado a que pudiera incluir en la categoría "A " todas las disposiciones del 
Acuerdo sobre Facilitación del Comercio, así como la pronta ratificación de éste. Una importante 
herramienta que observamos ha sido el portal y ventanilla única UNI -PASS, que permite realizar 
formalidades aduaneras y comercial es en línea, sistema que desde 2005 ha sido replicado por 
otros países en desarrollo. No obstante todos estos logros, aún queda trabajo por hacer en algunos 
temas, como el desempeño en procedimientos de apelación, derechos, cargas, simplificación de 
proced imientos en la frontera y cooperación entre los organismos de frontera internos; esto con 
respecto a la facilitación comercial.  
4.126.   México y Corea contamos con una estrecha relación comercial, con intereses comunes, 
fuertemente comprometidos con el buen funci onamiento del Sistema Multilateral del Comercio y 
participamos en diversos foros y configuraciones, tales como el G20, la Organización para la 
Cooperación y Desarrollo Económicos (OCDE) y el MIKTA, un grupo de países conformado por 
México, Indonesia, Corea , Turquía y Australia.  
4.127.   Mi delegación felicita a Corea también por la implementación de sus cuatro reformas 
estructurales: las instituciones públicas, el empleo, las finanzas y la enseñanza, las cuales le han WT/TPR/W/116  • Republic of Korea  
 
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  permitido robustecer su solidez financiera, al reducir su deuda pública total como proporción del 
PIB. 
4.128.   A pesar de estos logros, notamos que Corea tiene importantes retos que debe enfrentar. 
Otras delegaciones han hecho mención a tales retos y quisiera enfatizar en sólo algunos de ellos:  
 Creemos necesar io revisar y, en su caso, reducir los límites máximos de inversión extranjera 
en algunos sectores, como la cría de ganado bovino para carne; pesca de bajura costera; 
servicios de transporte aéreo y servicios auxiliares; actividades editoriales, y servicios  de 
radiodifusión y telecomunicaciones básicas.  
 El sector agrícola, la protección a ciertos sectores parece preocupante, en donde los 
aranceles llegan a montos exorbitantes como 887,4% para la mandioca y de 513% para el 
arroz, con lo cual su promedio MNF e s del 60%, siendo uno de los más altos entre los 
Miembros de esta Organización.  
 Al mismo tiempo, es necesario implementar políticas para enfrentar la disminución de tierras 
de cultivo, así como la diversificación de su producción, ya que poco más de la mi tad de sus 
tierras están dedicadas sólo a la producción de arroz.  
 Por último, para no repetir lo que han dicho otras delegaciones, alentamos a Corea a cumplir 
con sus compromisos de transparencia en la OMC, principalmente en materia de 
subvenciones a las e xportaciones y a la ayuda interna agrícola, ya que desde 2008 y 2011, 
respectivamente, no se han presentado sus notificaciones.  
4.129.   Concluyo así esta intervención, agradeciendo a Corea por las respuestas a las preguntas 
que fueron formuladas por mi delegación , así como por algunas de seguimiento que les estaríamos 
enviando hoy mismo en materia de medidas comerciales correctivas.  
4.130.   Deseamos a la delegación coreana el mejor de los éxitos en su Examen y en la 
organización de las Olimpiadas de Invierno de 2018 en Py eongchang.  
BRAZIL  
4.131.   The Republic of Korea is one of the most remarkable cases of economic achievement of our 
time. Trade has been a key aspect of its development strategy.  
4.132.   Korea's solid economic fundamentals are an important factor of resilience in an uncert ain 
global environment. Despite the slowdown between 2012 and 2015, Korea still recorded positive 
growth rates between 2012 and 2015. Looking ahead, Brazil hopes that, as forecasted in the 
reports, growth in Korea will gradually gain momentum in 2017, in s pite of remaining challenges.  
4.133.   Brazil values Korea's strong commitment to the multilateral trading system and to the 
WTO negotiating arm. Korea has likewise been an active participant in trade negotiations on the 
regional and bilateral fronts. In this regar d, we highlight the joint consultative group with 
Mercosur, where we have had fruitful discussions on a range of trade and investment issues of 
common interest to the Member States of Mercosur and Korea.  
4.134.   We also appreciate Korea's record of implementation of its substantive and transparency 
WTO obligations. As recognized in the Secretariat report, Korea fulfils its notification requirements, 
in spite of delays, and abides by the general policy objective of building an open economy based 
on market principles . In this positive overall context, the two areas of main concern to Brazil, one 
of which was the object of a written question, relate to the existence of agricultural export 
subsidies which have not been recently notified to the WTO, as informed in page 8 4 of the 
Secretariat report, and to tariff peaks on agricultural products, part of a complex tariff structure. 
Bilateral SPS discussions are another priority for Brazil, with a view to obtaining access for 
agricultural products such as beef, pork and mango es. 
4.135.   Let me point to the close ties between Brazil and Korea. Brazil was the first country in 
Latin America to recognize the Republic of Korea and, in 1962 Korea opened in Brazil its first 
Embassy in Latin America. Brazil is also home to the largest Korean community in Latin America.  WT/TPR/W/116  • Republic of Korea  
 
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  4.136.   Let me also highlight the importance of Korean foreign direct investment (FDI) in Brazil, 
with a stock of around US$4.5 billion in 2014, in high value -added sectors such as automobiles 
and information technology.  
4.137.   Korea is also an important trading partner for Brazil. Bilateral trade flows, however, have 
declined in the period under review, from US$13.6 billion in 2012 to US$8.5 billion in 2015, with a 
persistent trade surplus in favour of Korea. The main exports by Brazil to Kor ea are commodities 
and basic manufactured goods, while Brazil imports high value -added industrial products, such as 
electrical and mechanical machinery, automobiles and plastics. We will continue to work with 
Korea in order to expand bilateral trade in a b alanced way.  
JAPAN  
4.138.   Japan would like to begin with the Korean macroeconomic environment and policies. 
According to the Secretariat's report, Korea has shown robust economic growth with an average 
growth rate of 2.8% from 2012 to 2016. We commend Korea for t his achievement.  
4.139.   The Secretariat's report also mentioned some problems such as high dependency on 
conglomerates, low productivity, inactive SMEs and inflexible labor markets. Japan understands 
that the Government of Korea is now undertaking various reforms  in the areas of labor market, 
education and financial services, and is promoting the service industry. Japan further commends 
Korea on these efforts.  
4.140.   Now please allow me to move on to trade and trade -related policies.  
4.141.   I will start with the WTO. Korea ha s already accepted the trade facilitation agreement 
(TFA), which Japan commends. Furthermore, Japan appreciates Korea's efforts to actively engage 
in plurilateral initiatives aiming at further trade liberalization, such as the GPA, the expanded ITA, 
the EG A and TISA.  
4.142.   Let me next turn to the FTAs. Korea has already concluded some 15 FTAs, including with 
the US, the EU and China. Korea is also actively participating in ongoing FTA negotiations, such as 
the Japan -China -Republic of Korea Free Trade Agreement, t he RCEP and so forth. Although it is 
unfortunate that there is no FTA currently in force between Japan and Korea, Japan positively 
evaluates Korea's continuous efforts toward trade liberalization through high -quality FTAs.  
4.143.   Now I would like to refer to some  specific points.  
4.144.   First, the average applied MFN tariff rate increased to 14.1% in 2016, which is higher than 
the OECD -country standards, according to the Secretariat's report. Moreover, the gap between the 
average bound and applied MFN tariff rates is 4. 4 percentage points. We positively evaluate 
Korea's efforts to reduce and eliminate custom tariffs through bilateral and plurilateral 
arrangements. However, considering Korea's increasing influence in the global economy, Japan 
encourages Korea to further r educe tariff rates.  
4.145.   Second, according to the report by the Secretariat, Korea grants MFN treatment to all its 
trading partners. We are concerned by the fact that Korea has not opened their terrestrial 
broadcasting to Japanese dramas and variety programmes.  Although we have received 
explanations that Korea no longer maintains any such broadcasting regulations, it seems that 
de facto regulations still remain in place. We believe it is time for the Korean Government to 
amend this regrettable situation and brin g it into line with the WTO rules.  
4.146.   Finally, Japan has a concern with regard to shipbuilding. The Secretariat's report notes that 
the Government is trying to maintain a level playing field between public and private entities. 
However, it has been reported t hat public financial institutions, such as the Korea Development 
Bank (KDB) and the Export –Import Bank of Korea (KEXIM), have injected massive public funds 
into Korean shipbuilders. Japan would like to point out that excessive involvement by public 
bodiesh arms a level playing field and distorts the market. Therefore, Japan requests Korea to 
clearly explain the financial involvement of public bodies in the shipbuilding sector and to make 
any related measures fully consistent with the WTO rules.  WT/TPR/W/116  • Republic of Korea  
 
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  4.147.   Let me conclu de my statement with the following point. Recently in Hangzhou, the G20 
countries reaffirmed the importance of an open and inclusive multilateral trading system under the 
WTO. Given the increasing importance of Korea in the global economy, we expect Korea to be 
successful in tackling its challenges and achieving economic growth. As important neighbours to 
each other, we look forward to cooperating not only for our mutual benefit but also to promote a 
stronger multilateral trading system.  
NEW  ZEALAND  
4.148.   Korea i s a significant economic partner for New Zealand, ranking as our seventh -largest 
two-way trading partner. The trade relationship is highly complementary, and, in many cases, 
counter -seasonal, leading to mutually beneficial flows of goods and services.  
4.149.   New Zealand congratulates Korea for its rise from 14th in the world GDP rankings around 
the time of the last review in 2013, to 11th in 2015, against a challenging global economic 
environment. This is a further endorsement of Korea's focus on trade and trade l iberalization as a 
means to support economic development.  
4.150.   In addition to its contributions to the multilateral trading system, Korea has liberalized its 
economy through free trade agreements (FTAs). New Zealand became one of Korea's free trade 
partners in 2015 and we are engaged with Korea and other partners in the negotiation of the 
Regional Comprehensive Economic Partnership. Trade figures from the first half of 2016 show that 
our FTA has benefited businesses in both Korea and New Zealand, while inaugural  committee 
meetings have brought regulatory agencies together to improve understanding and seek ways to 
facilitate trade.  
4.151.   We commend Korea's commitment to further develop its economy through initiatives like 
the promotion of creative economy, services sect or reform, regulatory reform and increasing the 
role of the SME sector. We also encourage Korea to make further efforts to follow international 
standards and best practice, particularly in the food sector. Korea has also made good use of 
information techno logy at the border, and we welcome recent indications that it is exploring 
electronic processing for SPS clearances.  
4.152.   The report indicates that agriculture continues to lag behind other sectors of the economy 
in terms of productivity, and remains highly pr otected and reliant on high tariff barriers, although 
Korea's FTAs have resulted in some tariff reductions. The burdens of a weak agricultural sector will 
become more apparent given wider demographic changes, and continue to carry a significant cost 
in ter ms of consumer welfare and Korea's food security. We encourage Korea to make greater 
efforts to reform and modernize the sector, through measures such as land consolidation, 
promotion of internationally competitive food products and simplification of the b order tariff 
regime, including tariff quota administration processes.   
4.153.   We note that Korea's outstanding agricultural export subsidies notifications, which were 
last received for calendar year 2008, and agricultural domestic subsidies notification, last re ceived 
for calendar year 2011, are an area of concern. In the interests of transparency, we encourage 
Korea to bring its notifications up to date as soon as possible.  
4.154.   We also encourage Korea to ensure that support provided to the fishing sector does not 
undermine sustainability objectives or contribute to overfishing or overcapacity.  
4.155.   New Zealand welcomes Korea's target to increase renewable energy supply and decrease 
its reliance on coal. We encourage Korea to utilize the G20 or APEC peer review process for  reform 
of fossil fuel subsidies as a mechanism for reviewing its fossil fuel policies and accessing expert 
advice. The further removal of fossil fuel subsidies would reduce market distortions and improve 
the environment.  
4.156.   To conclude, both the Secretariat 's report and the Korean Report provide welcome detail of 
where Korea stands with respect to its commitments as a member of the World Trade 
Organization. They also provide useful information about Korea's commitment to trade 
liberalization and to the multi lateral trade system generally. We look forward to further discussion 
of the issues raised in the course of this review.  WT/TPR/W/116  • Republic of Korea  
 
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  COLOMBIA  
4.157.   Quiero comenzar diciendo que Corea es un país referente para el mundo, en la medida que 
su destacada experiencia de crecimient o económico está ligada a su alta inserción en el comercio 
internacional. Como se menciona en el informe de la Secretaría, a 2015 la relación entre su 
comercio exterior y PIB fue del 84,8%.  
4.158.   Colombia ha mantenido de manera histórica una estrecha relación p olítica y económica con 
Corea, que se evidenció recientemente con la entrada en vigor del Acuerdo de Libre Comercio 
entre los dos países, el primero de Colombia con un país asiático.  
4.159.   Si bien se destaca la contribución del comercio exterior al crecimiento d e la economía 
coreana, esta fortaleza la ha hecho vulnerable a las fluctuaciones del mercado internacional. 
Aunque en 2015 Corea fue el sexto mayor exportador y el décimo mayor importador del mundo, 
experimentó una disminución con respecto al año anterior de 8% para las exportaciones y 16,9% 
para las importaciones.  
4.160.   La disminución en su comercio impulsó al Gobierno coreano a implementar diferentes 
medidas, incluyendo actividades empresariales destinadas a aprovechar las preferencias de los 
Acuerdos Comercia les Regionales (ACR) y los Acuerdos de Libre Comercio (ALC), particularmente 
hacia los mercados en los que enfrentan mayores complejidades para cumplir con reglas de 
origen. Esto es algo que merece la atención de Colombia a luz de explorar posibles mayores  
encadenamientos productivos que le permitan a Corea aprovechar el acuerdo bilateral con miras a 
alcanzar terceros mercados.  
4.161.   Una expectativa para un país como Colombia es la apertura del mercado agrícola coreano, 
que ha visto un mayor dinamismo comercial en los últimos años. El Informe resalta el 
cumplimiento de Corea de sus obligaciones de agricultura en la OMC y la primacía de medidas 
arancelarias para controlar los precios internos. En materia de exportaciones, el Gobierno ha 
optado por disminuir los co ntingentes para la exportación de arroz, la simplificación de los 
procedimientos de certificación y verificación de origen, y la conformación de la Zona de 
Convergencia Rural para reforzar las cadenas de valor.  
4.162.   De otra parte, según el estudio, el agro reci bió ayudas equivalentes al 1,8% del PIB. En el 
Examen de Política Comercial se citan las diversas formas de subvenciones con las que cuentan los 
agricultores coreanos, algo sobre lo que solicitamos más información en el marco de este examen.  
4.163.   Observamos con  interés la transición de la economía pesquera de Corea, con miras a 
enfocarse hacia la cría de peces. Consideramos que este es otro tema donde Corea tiene el 
potencial de convertirse en un referente para otros países.  
4.164.   Llama la atención que el Informe señ ala una relativa debilidad de la economía coreana en 
el sector servicios al estimar que la productividad en esta área tan solo representa la mitad con 
respecto al sector manufacturero. Para revertir esta situación, en julio de 2016, el Gobierno 
coreano pro mulgó el "Plan de Desarrollo Económico de los Servicios" que busca promover el sector 
a nivel global. Su objetivo es lograr una transición a una economía desarrollada impulsada por los 
servicios, y dentro de sus principales acciones se encuentra modificar los reglamentos que pueden 
considerarse como obstáculos al crecimiento. Para Colombia este es un asunto de gran interés, no 
solo porque seguiremos con detenimiento el impacto del Plan, sino también porque en 2015 
Colombia implementó una estrategia para el fortalecimiento del sector servicios por lo que es un 
área donde podemos cooperar mutuamente en el ámbito bilateral y multilateral.  
4.165.   Finalmente, quisiéramos retomar y resaltar la prioridad que Corea otorga a la innovación 
como una política para superar el b ajo crecimiento de la demanda internacional. Según la OMPI, 
este país se ubica en el puesto 11 de las economías más innovadoras. Por supuesto, todo esto 
debe ir de la mano con un sólido régimen de protección de los derechos de propiedad intelectual, 
por lo  que en 2011 estableció una "Ley Marco de Propiedad Intelectual" y a partir de entonces ha 
implementado modificaciones legislativas con el fin de facilitar los trámites para los solicitantes. 
Esto sin duda alguna contribuirá positivamente en su estrategia de fomentar la "economía 
creativa", una de las grandes apuestas de Corea para el futuro.   WT/TPR/W/116  • Republic of Korea  
 
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  4.166.   No me resta más que desearle a Corea el mayor de los éxitos en su examen de Política 
Comercial y animamos al Embajador CHOI y a su misión a continuar su rol activo a l interior de la 
OMC en pro de un mejor funcionamiento del sistema multilateral de comercio.  
BÉNIN  AU NOM  DES  PMA 
4.167.   Le Groupe des PMA se félicite des progrès économiques et commerciaux que la Corée du 
Sud continue de réaliser à travers diverses réformes. Les  PMA sont également encouragés par le 
fait qu'il est possible de passer du 133ème rang, en termes de facilités pour la création et le 
démarrage d'une entreprise, au 23ème rang.  
4.168.   La République de Corée est un partenaire commercial important dont le volume de s 
échanges avec les PMA représente plus de 8% des exportations totales du Groupe. Les PMA ont 
enregistré un déficit commercial dans leurs échanges avec la République de Corée avec un pic en 
2011. Il importe de noter que les exportations des PMA ont continu é de croître. Bien que plusieurs 
facteurs expliquent cette croissance, c'est sans doute le régime de l'Accès en FDSC de la 
République de Corée qui a produit un effet positif de stimulation des exportations des PMA.  
4.169.   Le Groupe des PMA se félicite du régime a mélioré de l'Accès préférentiel aux marchés 
accordé par la Corée à 48 PMA, depuis 2012. Toutefois, les exclusions de plusieurs produits 
agricoles ont empêché les PMA d'exporter certains fruits et légumes et autres produits alimentaires 
vers la Corée. En ou tre, les PMA font face au défi de respect du seuil de 40% en termes de 
matières originaires, en raison de la faiblesse de leur tissu industriel. C'est pourquoi, le Groupe des 
PMA invite la Corée du Sud à faire une contribution aux engagements en matière de s Règles 
d'Origines Préférentielles en faveur des PMA, qui prennent en compte leur demande s'agissant du 
niveau des produits d'origine pays par pays exportateurs, conformément à la Décision Ministérielle 
de Nairobi sur les Règles d'Origine Préférentielles en faveur des PMA.  
4.170.   S'agissant de la pêcherie, le Groupe félicite la République de Corée pour les mesures plus 
sévères qu'elle a prises en termes de sanction à appliquer aux navires impliqués dans la pêche 
Illégale, Non Réglementée et Non Déclarée.  
4.171.   Dans le domaine des services, le Groupe des PMA voudrait remercier la Corée du Sud pour 
la notification du traitement préférentiel relatif à l'accès aux marchés en vertu de la Dérogation 
services en faveur des PMA l'année dernière dans un certain nombre de secteur s d'intérêt pour les 
PMA. Cependant, le Groupe des PMA voudrait rappeler que pour la mise en œuvre des préférences, 
la République de Corée devra prendre les mesures nécessaires pour alléger les charges 
administratives et réduire les coûts liés la délivranc e des permis et des visas.  
4.172.   Le Groupe des PMA remercie la République de Corée de fournir une assistance qu'elle 
accorde aux PMA dans le cadre du Programme de Doha pour le Développement et le Cadre Intégré 
Renforcé. Le Groupe souhaite que la République de Co rée renforce son assistance en faveur des 
PMA dans le secteur des Services.  
INDIA  
4.173.   According to the Secretariat's report during the period under review, Korea's annual GDP 
growth rate ranged from 2.3% (2012) to 3.3% (2014) and its annual average growth rate  for the 
period 2012 to 2015 stood at 2.8%, a slowdown compared to the average growth of 4.4% over 
the period 2001 to 2011. According to IMF and OECD, the reasons for this slowdown include drop 
in demand from importing countries, strong export competition,  falling performance of some major 
manufacturing industries, struggling SMEs, high savings and low investment, sluggish household 
income growth and services sector productivity. We have noted that Korea has taken measures to 
address the challenging environ ment including trade -related structural and regulatory reforms to 
spur broad based economic growth and productivity to improve Korea's international 
competitiveness.  
4.174.   We commend Korea's initiative the "Creative Economy" launched in 2013 as the 
Government's  central policy objective for economic revitalization to generate new added value, 
jobs, stimulate entrepreneurship and improve efficiency through innovation. The foreign direct 
investment in Korea has grown from US$10.7 billion in 2012 to US$16.4 billion in 2015. We also WT/TPR/W/116  • Republic of Korea  
 
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  appreciate Korea's efforts to attract high -tech foreign investment projects and facilitate foreign 
investor's contribution in their domestic job creation.   
4.175.   India and Korea share close and multi -faceted ties. During the visit of our Prime Minister to 
Korea in May 2015, the bilateral relationship was upgraded to "Special Strategic Partnership". 
India and Korea signed a Comprehensive Economic Partnership agreement in 2009 which came to 
effect in January 2010. The comprehensive economic partne rship has given a fillip to bilateral 
trade between both countries. In 2015 -2016, the total trade between India and Korea stood at 
US$16.57 billion. India was Korea's 14th biggest source of imports and 7th biggest export market 
in 2015. Investments both wa ys are on the upswing. Major Korean conglomerates such as Hyundai 
Motors, Samsung Electronics, LG and others have invested around US$3.91 billion in India till 
December 2015. Indian FDI led by companies like Mahindra & Mahindra, Aditya Birla Group and 
TATA are also reaching around US$3 billion.  
4.176.   India had submitted a number of questions and we thank the Korean delegation for the 
replies provided. There is considerable potential to promote trade and investment between both 
countries. India has expressed inte rest to export Bovine meat to Korea and we have initiated 
market access negotiations in this regard. India is looking forward to commence negotiations on 
Mutually Recognition Agreements (MRAs) which is impacting the operationalizing of market access 
in ser vices between both countries. We also hope to strengthen cooperation with Korea in skill 
development, information communication technology and research in pharmaceutical.  
4.177.   To conclude, we look forward to working with the authorities of the Republic of Kore a in 
further expanding our trade and investment ties for mutual benefit.  
INDONESIA  
4.178.   Indonesia associates itself with the ASEAN statement made by the Ambassador of 
Singapore.  
4.179.   Korea is Indonesia's 6th largest trading partner, with total trade reaching US$16 b illion. 
Korea is also the 5th largest investor in Indonesia. These two indicators reflect what Korea is to 
Indonesia: an important and strategic trading partner.  
4.180.   To boost trade and investment between our two countries, Indonesia and Korea have re -
engaged i n a discussion towards a comprehensive economic partnership (CEPA). Indonesia would 
also like to commend the commitment of Korea in the implementation of the ASEAN -Korea FTA 
that also contributes to strengthening trade relation in the region.  
4.181.   Korea has ma intained its commitment to the open and rules -based multilateral trading 
system. Indonesia appreciates the openness of the Korean economy to international trade, and its 
integration into the world economy – as reflected in the reform process of Korea's tra de and 
domestic policy, and also reflected in the high trade -to-GDP ratio which stood at 84.8%.  
4.182.   Indonesia believes that trade plays an important role as an engine of growth and 
development. Therefore, it is important to continue supporting and reaffirming  commitments for 
the strengthening of the multilateral trading system, thus maintaining the central role of the WTO 
as the primary institution for global governance of international trade.  
4.183.   As an archipelagic country, where marine based resources constitute  an important 
livelihood for the Indonesian people, Indonesia remains committed to the eradication of illegal, 
unreported and unregulated fishing. We, therefore, would like to support measures taken by Korea 
in fighting illegal, unreported and unregulated fishing. IUU fishing contributes to overfishing, 
creates unfair competition, and impedes sustainable fisheries.  
4.184.   While commending Korea's efforts to support the multilateral trading system, Indonesia 
would like to refer to the plan of the Government of Kore a to impose new SPS measures including 
the uniform pesticides maximum residue standard that exceeds those in the CODEX Alimentarius. 
We believe that such measures will create unnecessary new burdens on exporters of the 
concerned commodities, and thus will create unnecessary trade barriers to trade.  WT/TPR/W/116  • Republic of Korea  
 
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  4.185.    Therefore, Indonesia would like to request the Government of Korea to reconsider the 
adoption of these new measures, so they shall not be more trade restrictive than as required by 
international standards and ar e consistent with the WTO Agreement on the Application of Sanitary 
and Phytosanitary Measures.  
4.186.   Finally, we appreciate the written responses received from Korea this morning, and we 
look forward to continue to discuss trade related issues in order to stren gthen economic relations 
between the two countries.  
REPÚBLICA  DOMINICANA  
4.187.   La República Dominicana mantiene excelentes lazos de amistad con la República de Corea, 
no solo a través de su participación en el G -33 en la OMC, pero también a través de los 
importa ntes canales de cooperación bilateral que dicho Gobierno brinda a la República Dominicana, 
y en particular deseamos agradecer al Gobierno de Corea, por la importante asistencia que ha 
dado a la República Dominicana en el área de automatización de los proce dimientos aduanales y 
en el área de propiedad intelectual.  
4.188.   Al leer el informe de la Secretaría podemos ver que la economía de Corea, desde el último 
examen realizado en el 2012, mantiene la estabilidad macroeconómica, en particular gracias a sus 
cuantiosa s reservas internacionales. Durante el período 2012 -2015, el PIB presentó un crecimiento 
promedio anual del 2,8%. Para impulsar la recuperación económica, el Gobierno de Corea utiliza 
medidas de estímulo monetario y fiscal. Asimismo, se han llevado a cabo reformas estructurales 
comerciales y relacionadas con el comercio (por ejemplo, la arancelización del mercado del arroz, 
la reforma tributaria y la política de competencia), cuyo objetivo es estimular el crecimiento de la 
productividad de amplia base y, de  ese modo, mejorar la competitividad internacional de Corea. 
Para impulsar el crecimiento y la demanda interna se han adoptado medidas relacionadas con los 
impuestos, el apoyo a las pymes, las empresas estatales, la innovación y la rigidez del mercado 
laboral.  
4.189.   Nos complace ver que Corea tiene una economía abierta lo cual se muestra en la alta 
proporción del PIB que corresponde a su comercio de bienes y servicios (exportaciones más 
importaciones), que llegó al 84,8% en 2015. Además, el Gobierno ha seguido m ejorando su marco 
normativo para reducir la carga de la actividad comercial. En 2014, el Gobierno adoptó el enfoque 
de "compensación de costos" para evitar la introducción de nuevas reglamentaciones innecesarias. 
Entre enero de 2014 y enero de 2015, el núm ero de reglamentaciones económicas se redujo un 
10%.  
4.190.   Felicitamos a Corea porque durante el período abarcado por el examen, se introdujeron 
mejoras en la facilitación del comercio, entre ellas, la ratificación del Acuerdo sobre Facilitación del 
Comercio (A FC) de la OMC en 2015, la expansión de sus acuerdos de reconocimiento mutuo de los 
operadores económicos autorizados y la introducción de un proceso de despacho de minimis  para 
los artículos de consumo adquiridos en línea. También se ha mejorado la legisla ción en materia de 
la política de competencia y de los derechos de propiedad intelectual.  
4.191.   Con estas reformas se espera que el crecimiento económico de Corea se mejore en el 
2017. Sin embargo, ya que la economía sigue siendo vulnerable a los choques extern os, tales 
como el lento crecimiento del comercio internacional, debido a la gran dependencia de la economía 
coreana de las exportaciones de manufacturas producidas por unos pocos conglomerados 
empresariales de gran tamaño, consideramos que es importante qu e el Gobierno aplique reformas 
estructurales que mejoren la productividad, así como que aborde la reforma fiscal, la privatización 
y la continuación de la reforma reglamentaria, a fin de mejorar su capacidad para competir en el 
comercio exterior, y lograr un crecimiento económico equitativo.   
4.192.   Hemos presentado algunas preguntas a Corea sobre sus contingentes arancelarios, cuyas 
respuestas agradecemos y solo nos queda agradecerles y desearles buena suerte en el futuro.  WT/TPR/W/116  • Republic of Korea  
 
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  PARAGUAY  
4.193.   Estimamos positiva la partici pación de Corea en este ejercicio, en un momento económico 
importante para el país, tras superar los efectos de la pasada crisis económica internacional del 
año 2008.  
4.194.   En ese sentido, todos aquí sabemos que la República de Corea cuenta con una tradición de 
ser una economía abierta, bien conectada a los mercados globales y con una orientación 
exportadora que sirve de modelo para todos los países en desarrollo. Durante el periodo en 
estudio, el centro de la política económica coreana estuvo basada en el desarr ollo de una 
economía creativa, que busca por sobre todas las cosas dar impulso a la innovación en sus 
diferentes facetas, tecnológica y tradicional, y por sobre todo, con un componente importante de 
inclusión a empresas medianas y pequeñas.  
4.195.   Todo ello ha pe rmitido que la economía coreana haya crecido de forma constante, aunque 
discreta, desde 2012, con una tasa de crecimiento del PIB alrededor del 2,5%. Corea forma parte 
del G20 y ocupa los primeros lugares en casi todos los rankings internacionales, entre e llos 
podemos citar: el primer lugar en la clasificación del índice de innovación de Bloomberg, el cuarto 
lugar en la clasificación general del Doing Business del Banco Mundial, y uno de los índices 
crediticios más altos de Asía, conforme a las calificacion es de Standard & Poor y Moody's.  
4.196.   Con referencia a su política comercial, es importante destacar que Corea ha sido uno de los 
Miembros más activos en la OMC y en el sistema multilateral de comercio; ha ratificado 
recientemente el Acuerdo sobre Facilitación del Comercio, es asimismo parte en el Acuerdo sobre 
Contratación Pública (ACP) de la OMC, y de la ampliación del Acuerdo sobre Tecnología de la 
Información (ATI) y participa activamente en las negociaciones relativas al Acuerdo sobre Bienes 
Ambientales.  
4.197.   Asimismo, Corea sigue facilitando el acceso a sus mercados a través de acuerdos de libre 
comercio (ALC) de alto nivel y alcance general que abarcan las mercancías, los servicios y las 
inversiones. Además, participa en ALC megarregionales y en negociaciones d e ALC bilaterales. En 
ese sentido, nos gustaría que pronto podamos avanzar en las discusiones para un Acuerdo 
MERCOSUR –Corea, cuyo Acuerdo Marco lo hemos suscrito hace ya varios años.  
4.198.   No obstante, quedan varios desafíos en el horizonte; los cuales han sido  reflejados en la 
gran cantidad de consultas realizadas por los Miembros para este ejercicio; entre ellas podemos 
destacar las preguntas sobre los mecanismos de defensa comercial aplicados, las normativas 
sanitarias y fitosanitarias, el aumento de la cober tura de las licencias de importación, programas 
de incentivos a la producción, y ciertas restricciones a la importación de productos agrícolas. Por 
su parte, mi delegación ha realizado varias consultas puntuales, referente a reglamentaciones del 
comercio d e servicios, a procedimientos para la importación de productos cárnicos, y sobre los 
programas de incentivos a la inversión. Agradecemos mucho las respuestas a las preguntas que 
hemos realizado, las cuales las estudiaremos con mucha atención.  
4.199.   Por otro lado , quiero destacar la excelente relación bilateral que tiene mi país con Corea, 
no solo a nivel económico, sino también a nivel político, social, cultural, y por sobre todo humano. 
Quisiera destacar que el Paraguay, desde mediados del siglo pasado, se ha be neficiado de una 
importante migración coreana, de las mayores que ha recibido mi país a lo largo del tiempo, y que 
sin lugar a dudas han contribuido al desarrollo de nuestra sociedad y a nuestra economía, nos han 
transmitido su dedicación, creatividad y co operativismo. Prueba de ello es la presencia de 
ciudadanos paraguayo -coreanos que se destacan en diferentes áreas de la sociedad paraguaya, 
como en el deporte, la música, el arte y el periodismo. Además, quisiera mencionar que la 
República de Corea es uno de los principales cooperantes del Paraguay.  
4.200.   Con respecto a nuestro comercio bilateral, en el periodo en estudio, los flujos en ambas 
direcciones han disminuido, creemos a causa de las fluctuaciones propias de los ciclos económicos 
y debido a la desacelera ción del comercio internacional; la balanza comercial es ampliamente 
favorable a Corea. Los principales productos exportados por Paraguay son Soja, Maíz, desechos de 
la industria, y otras materias primas; todo ello alcanzó en el 2015 un total tan solo 40 m illones de 
dólares EE.UU. Por su parte las importaciones desde Corea superan los 250 millones de dólares WT/TPR/W/116  • Republic of Korea  
 
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  EE.UU., siendo los principales productos vehículos, maquinarias, bienes de tecnologías de la 
información, entre otras manufacturas.  
4.201.   Paraguay está conve ncido que existe un gran potencial a desarrollar para podemos 
convertirnos en un proveedor importante para Corea. Esperamos que ambos Gobiernos puedan 
profundizar aún más el dialogo bilateral para mejorar las condiciones de acceso a mercado, 
especialmente para los productos paraguayos. En ese sentido, hemos identificado varios sectores 
que nos gustaría profundizar el diálogo, como ser: los procedimientos técnicos y sanitarios para la 
importación de productos agrícolas, especialmente carne vacuna, así como c ereales y sus 
derivados.  
4.202.   Para concluir, vale la pena destacar que Paraguay y Corea comparten la misma visión 
sobre el sistema multilateral comercio, ambos queremos una pronta implementación del Acuerdo 
sobre Facilitación de Comercio, y un fortalecimiento d el pilar negociador de la OMC.   
THAILAND  
4.203.   Thailand associates itself with ASEAN's statement previously delivered by Ambassador Yee 
Woan Tan of Singapore.  
4.204.   Thailand and Korea have a strong trade relation, with ASEAN -Korea FTA setting the 
foundation for trade . In 2015, Korea ranked as Thailand's 8th largest trading partner in the world, 
with trade value of US$7 billion. Export wise, there was a decline from a total export value of 
US$4.8 billion in 2012 to US$4 billion in 2015, due to a drop in Korea's importa tion of Thai rubber. 
In terms of imports, Thailand's imports from Korea have declined from US$9 billion in 2013 to 
US$7  billion in 2015. Nevertheless, we view that such declines are only temporary and our 
fundamentally strong relationship will help our bil ateral trade to recover in the near future.  
4.205.   TPR report by the Secretariat indicates that Korea's economy grew at a solid average rate 
of 2.8% during the review period. Growth is expected to pick up in 2017, as monetary and fiscal 
stimulus are continued to be implemented and structural trade and trade related reforms 
continued to be undertaken. While we commend Korea for reforms undertaken in various areas, 
such as energy, privatization, regulatory framework for doing business, trade facilitation, industrial  
standards, and IPR, in order to achieve the accelerated and sustainable growth at the level it 
aspires to, there are still significant structural problems to be addressed, such as the complexity of 
the tariffs system, the need for restructuring of the man ufacturing sector, reduction in excessive 
support for SMEs, and reduction in agricultural protection, just to name a few.  
4.206.   With regard to Korea's contribution at the multilateral level, Thailand believes Korea to be 
a constructive and active member in all n egotiations. Furthermore, we welcome Korea's ratification 
of the TFA last year, and commend Korea for its participation in the ITA expansion.  
4.207.   In this review, Thailand submitted quite a number of questions to Korea covering the 
policies and measures of our interests.  
4.208.   Most importantly is with regard to the tariffication of rice products. While the Secretariat 
reported that rice import quotas were replaced by TRQs in January 2015, Thailand would like to 
add further that the proposed rectification and modificat ion of Korea's schedule still awaits the 
endorsement of Thailand and four other members, namely Australia, China, the United States and 
Viet Nam, so as to be formally certified. In this regard, due to the on and off nature and lack of 
follow -up of the bila teral discussion in the past year, Thailand would like to encourage Korea to 
push the negotiation forward with a view to concluding the matter in a timely manner.  
4.209.   Other measures that were mentioned in our questions to Korea include investment 
policies, adj ustment duties, domestic support for agriculture products and agriculture insurance 
scheme, TRQ allocation for rice, and competition policies, just to name a few.  
4.210.   We look forward to Korea's responses, for which we will study carefully with great interest.  WT/TPR/W/116  • Republic of Korea  
 
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  4.211.   In conclusion, Thailand would like to express its appreciation to the Korean delegation for 
toady's presentation. We are thankful for the cooperation with Korea at every level, including that 
between our Geneva -based delegations. We wish Korea every succes s in this trade policy review.  
KINGDOM  OF SAUDI  ARABIA  
4.212.   Despite the daunting challenges due to the global financial crisis, the high reliance on 
exports together with a limited domestic market and a rapidly aging population, the Korean 
economy remained stro ng and open. The real GDP growth averaged nearly 2.7% this year and 
expected to reach 3% in 2017.  
4.213.   Due to the openness of the Korean economy to international trade, and its integration into 
the world economy, Korea became a leading producer of displays and  memory semiconductors and 
the second largest shipbuilding producer.  
4.214.   The Kingdom of Saudi Arabia welcomes the efforts of the Republic of Korea in sustaining 
macroeconomic stability and pursuing an open, liberal, and transparent trade and investment 
regime.  Since its last review, the government has significantly undertaken large stimulus 
ambitious structural reforms to strengthen competition, raise efficiency in low -productivity 
services, increase employment, encourage R&D and environmental -protection activi ties and 
support the SME sector.  
4.215.   We commend Korea for its trust in the multilateral trading system and for its active 
engagement in negotiations with a view to concluding regional free trade agreements to secure 
more favorable market access for its goods a nd services within and outside of Asia.  
4.216.   Saudi Arabia and Korea are prominent trading partners; trade exchange between the two 
countries surpassed 170 billion Saudi Riyal in 2014, which makes Saudi Arabia the fourth largest 
trading partner for Korea. The K ingdom of Saudi Arabia is the largest exporter of oil to the 
Republic of Korea (300,000,000 barrels in 2014) and 100 Korean companies have business 
interest in Saudi Arabia in 2014.  
4.217.   Our two countries are keen to boost further cooperation in different field s such as 
construction, medium and light industries, petrochemical industry and infrastructure projects and 
several other fields.  
4.218.   Korea has proved its commitment to support the multilateral trading system and the WTO 
and has demonstrated its desire to cont inue to play an active role in the promotion of free and 
open trade.  
4.219.   In this regard, I would like to appreciate the active role of H. E. Ambassador Young Moo 
KIM and wish the entire delegation of Korea a very successful Trade Policy Review.   
ECUADOR  
4.220.   Este Examen de Políticas Comerciales reviste gran interés para nuestro país, puesto que 
actualmente nos encontramos avanzando hacia la conclusión de un acuerdo comercial bilateral con 
Corea. De hecho, en estos mismos momentos se encuentra en Seúl el equipo nego ciador 
ecuatoriano, manteniendo reuniones en el marco de la IV Ronda de Negociaciones entre los dos 
países.   
4.221.   Confiamos en que muy pronto los principales productos y sectores de interés para Ecuador 
y Corea, respectivamente, puedan contar con un acceso pre ferencial y mutuamente beneficioso.  
4.222.   Cabe asimismo mencionar que recientemente en Quito tuvimos el honor de recibir la visita 
del Viceministro de Asuntos Económicos del Ministerio de Relaciones Exteriores de la República de 
Corea, Señor Lee Tae -ho.   
4.223.   En dicha oportunidad, el Vicecanciller ecuatoriano resaltó la decisión del Gobierno nacional 
de profundizar las relaciones con la República de Corea tanto en el diálogo político como en la 
cooperación económica, comercial y técnica, particularmente en materia d e formación del talento WT/TPR/W/116  • Republic of Korea  
 
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  humano; innovación, ciencia y tecnología; así como proyectos prioritarios para la transformación 
de la matriz energética y productiva, con el apoyo del sector privado coreano.  
4.224.   En este sentido, deseo agradecer la iniciativa de la Re pública de Corea, que se encuentra 
organizando un Foro de Ministros de Relaciones Exteriores de los países del Foro de Cooperación 
América Latina/Asia del Este (FOCALAE) para mayo de 2017, a fin de acordar mecanismos y 
estrategias para la revitalización de l Foro, que fue acordado por iniciativa de Ecuador y en el que 
nuestro país mantiene una activa participación.  
4.225.   En cuanto se refiere al informe presentado por la Secretaría, tomamos nota de la 
desaceleración que afecta al crecimiento anual del PIB de Corea , en comparación con el período 
correspondiente al ejercicio anterior (2001 -2011). No obstante, vemos que se han implementado 
medidas de política monetaria, fiscal, comercial, etc., dirigidas a mantener los indicadores 
macroeconómicos y mejorar la competit ividad de Corea.   
4.226.   Se puede apreciar que continúa elevándose el nivel de apertura e integración de la 
economía coreana a través del comercio de bienes y servicios. El sector manufacturero continúa 
siendo el de mayor importancia en Corea, en razón de por la s numerosas políticas destinadas a 
favorecerlo, tales como incentivos fiscales y ayudas a sectores específicos. No obstante, se 
observa que el sector de los servicios ha continuado en crecimiento.   
4.227.   El informe subraya el aumento del volumen de comercio en el marco de acuerdos de libre 
comercio, en particular a través de una mayor apertura del mercado en el marco de acuerdos 
comerciales regionales, una red que la República de Corea continúa ampliando de manera muy 
dinámica.   
4.228.   En lo multilateral, saludamos la  ratificación por parte de la República de Corea del Acuerdo 
sobre Facilitación del Comercio (AFC) de la OMC en 2015. Recibimos, asimismo, con agrado los 
esfuerzos llevados adelante por el Gobierno de Corea encaminados hacia un mayor grado de 
armonización de sus normas industriales respecto a las normas internacionales y a un 
cumplimiento más completo de sus obligaciones de transparencia en el marco de la OMC.  
4.229.   Anotamos, particularmente, las variadas medidas destinadas a brindar un importante 
apoyo a las py mes como por ejemplo el estímulo a los bancos para que amplíen la oferta de 
crédito a las mismas o el incentivo que se les brinda a través de la contratación pública del mismo 
modo que a las empresas pertenecientes a mujeres y personas con discapacidad.  
4.230.   Sobresalen de igual forma las medidas orientadas a estimular las actividades de 
investigación y desarrollo, especialmente en lo que respecta a tecnologías de la información, y la 
protección del medio ambiente, así como las acciones emprendidas por el Gobier no coreano para 
promover el ahorro de energía con el fin de reducir la dependencia y los preocupantes niveles de 
consumo energético del país.  
4.231.   Observamos también las medidas tomadas por Corea para aumentar la transparencia, 
reducir la deuda y mejorar la ef iciencia en la gestión de sus instituciones públicas.   
4.232.   Finalmente, en el informe de la Secretaría se detalla el funcionamiento del nuevo sistema 
de lista positiva para los residuos agroquímicos que no permitirá importar alimentos que 
contengan dichos resi duos, a menos que la sustancia haya sido incluida en la lista, o autorizada 
para el producto en cuestión y se haya fijado un límite máximo de residuos (LMR). Como también 
lo señala el mismo informe, para los exportadores es necesario contar con el tiempo s uficiente 
para llevar a cabo la transición hacia este nuevo sistema.  
4.233.   Al respecto y aprovechando esta oportunidad, deseamos hacer un pedido a la delegación 
coreana, en el sentido de que nos proporcione la información sobre los plaguicidas que ya constan 
en la lista y aquellos que están en proceso de ser incluidos, en idioma inglés, ya que la página web 
correspondiente se encuentra únicamente en coreano.   
4.234.   Las previsiones económicas vaticinan una aceleración gradual del crecimiento económico 
de Corea en el añ o venidero. Esperamos que el Gobierno coreano continúe reforzando la economía WT/TPR/W/116  • Republic of Korea  
 
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  del país frente a los riesgos que aún enfrenta, a fin de continuar cumpliendo las metas 
socioeconómicas que se ha planteado para el futuro.   
4.235.   Para concluir, deseamos agradecer a la delegación de la República de Corea por las 
respuestas que gentilmente proporcione a las preguntas que hemos planteado sobre algunos 
aspectos concretos de su política comercial, que proveerán información importante para el 
fortalecimiento de las relacio nes bilaterales en materia de comercio exterior.  
PERÚ  
4.236.   El Perú se une a otros Miembros al expresar su cordial saludo a la República de Corea por 
sus sólidos fundamentos económicos. Estamos seguros de que dichos fundamentos permitirán a la 
República de Corea  mantener la senda ascendente de su economía y retomar las altas tasas de 
crecimiento que han sido prácticamente una constante de su historia económica reciente. De igual 
manera, reconocemos los importantes esfuerzos realizados por el Gobierno de la Repúbl ica de 
Corea para plantear un "policy mix" que hace frente al contexto económico incierto de los últimos 
años, y que brinda particular apoyo a la innovación, a la promoción de las pequeñas y medianas 
empresas, al aumento de la productividad, entre otras im portantes políticas que favorecen su 
competitividad internacional.  
4.237.   En lo que se refiere a la relación bilateral, ésta atraviesa por un excelente nivel y cuenta 
con una prometedora perspectiva basada en una agenda positiva en numerosos ámbitos, a pesar 
de la distancia geográfica. Cabe resaltar en este sentido el Acuerdo de Asociación Estratégica entre 
el Perú y la República de Corea firmado en el año 2012, como un elemento que ilustra el alto 
grado de cooperación entre nuestros países.   
4.238.   En cuanto a la rela ción comercial, la República de Corea es uno de los principales socios 
comerciales del Perú. Destacamos la importancia del Acuerdo de Libre Comercio entre el Perú y la 
República de Corea que fue suscrito el 21 de marzo de 2011 en Seúl y entró en vigencia e l 1 de 
agosto del 2011. Este acuerdo ha generado un marco y condiciones favorables para el comercio y 
la inversión entre ambos países, lo que incentiva el desarrollo de más inversiones en el corto, 
mediano y largo plazo, y ayuda a que el comercio bilateral  camine por la senda del crecimiento. No 
obstante, actualmente se mantiene un leve desequilibrio en la balanza comercial bilateral, ante el 
cual Perú está dispuesto a trabajar con la República de Corea para incentivar la diversificación de 
nuestras exporta ciones recíprocas, en busca de expandir el mutuo beneficio que genera nuestro 
comercio.  
4.239.   El Perú ha resaltado dos puntos en los informes que sirven de base para el presente 
examen. En particular, el Perú se ha interesado en conocer en mayor profundidad aque llos 
cambios en política aduanera que fueron implementados por la República de Corea a raíz de la 
ratificación del Acuerdo sobre Facilitación del Comercio, en el contexto de su próxima entrada en 
vigor. De igual manera, el Perú tiene interés en conocer con  mayor detalle la política de apoyo a 
los países en desarrollo en materia de reingeniería de los procesos de negocios para la 
administración aduanera.  
4.240.   Es en relación a estos puntos que la delegación peruana ha presentado algunas preguntas 
a la República d e Corea. En este sentido, les agradecemos de antemano por las respuestas que 
nos brinden y les deseamos muchos éxitos en este séptimo examen de sus políticas comerciales.  
MALAYSIA  
4.241.   Malaysia also associates herself with the statement made by Singapore this m orning on 
behalf of ASEAN.  
4.242.   Korea is a prime example of a developing country that has successfully transformed itself 
to a high income nation through an open economy. This can be seen from the high ratio of its 
trade in goods and services to GDP, which stoo d at almost 85% in 2015.  
4.243.   In 2015, we note that Korea was also affected by the global economic slowdown as its 
regional neighbours and globally. We note that Korea's GDP decreased from 3.3% to 2.7%. WT/TPR/W/116  • Republic of Korea  
 
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  Nevertheless, Malaysia commends Korea in its economic rec overy efforts through various reforms, 
while it remains committed to keep the market open along with trade liberalization.  
4.244.   Malaysia is pleased to note that Korea has been undertaking structural reforms in four 
major areas, namely public institutions, labou r, finance and education, under the Three -Year Plan 
for Economic Innovation since 2014. The Creative Economy introduced by the Korean Government 
is an interesting strategic policy providing a foundation for SMEs to grow. As in many countries, 
SMEs assumed an important role to the economy with some 99% of business establishments in 
Malaysia. Such innovative efforts are something that Malaysia uses as a reference as we too 
nurture an enabling environment for our SMEs to grow.  
4.245.   At the multilateral front, Korea is an active Member of the WTO and a strong advocate of 
the multilateral trading system. In this regard, we joined others in applauding Korea for her 
contribution to the WTO Trade -related Technical Assistance (TRTA) and the Doha Development 
Agenda Global T rust Fund (DDA GTF), that help other Members fulfill their WTO obligations. We 
look forward to the Korean's continued efforts to increase inclusiveness in the WTO.  
4.246.   Malaysia welcomes Korea's ratification of the Trade Facilitation Agreement, as well as her 
participation in the conclusion of the WTO Expanded Information Technology Agreement (ITA). On 
the WTO Post -Nairobi Work Programme, we join others in commending Korea for her tireless 
efforts to move the negotiations that we hope would deliver meaningful re sults for the MC11, 
outcomes that would have a positive impact on international trade.  
4.247.   At the regional level, the two countries are working closely with other regional partners to 
forge a deeper economic integration through the ASEAN -Korea Free Trade Agree ment. Malaysia 
views ASEAN -Korea FTA as an important trade pact that has facilitated and enhanced trade and 
investments in the region through the cooperation established. Continuous reviews of the living 
FTA in all areas ensure benefits to all parties as w e further expand economic integration of the 
ASEAN plus 6 through RCEP, as was mentioned in our ASEAN statement.  
4.248.   Malaysia and Korea has enjoyed a strong economic and trade relations through the years. 
In 2015, Korea was Malaysia's 8th largest trading partn er with bilateral trade valued at about 
US$14billion. Korea is Malaysia's sixth largest foreign investor in the manufacturing sector with 
approved investments amounting to US$316 million in over 20 approved projects.  
4.249.   Cooperation between Malaysia and Korea is further demonstrated through the Second 
Wave of Malaysia Look East Policy (LEP) 2.0. An Economic Cooperation Committee (ECC) has been 
established as a platform to discuss the implementation of this initiative particularly on the 
projects to be developed . This is the result of a close political and economic exchange at the 
highest level between both countries.  
4.250.   For this Trade Policy Review, Malaysia thanks the Delegation of Korea response for the 
responses to our questions. Malaysia is interested on a numb er of the initiatives undertaken by 
Korea among others on Korea's certification mark and the quality management of conformity 
assessment. We would welcome updates from Korea on the technical regulatory impact 
assessment (TRIA) which was introduced to revie w costs, advantages, impacts and compatibility of 
regulations in s comprehensive manner. We will be submitting additional questions feedback.  
4.251.   We wish to take this opportunity to express our thanks to Ambassador Choi Kyong -Lim and 
his delegation for their c lose and constructive engagement here in Geneva.  
THE RUSSIAN  FEDERATION  
4.252.   The Russian Federation values its long lasting and friendly relations with the Republic of 
Korea, maintained systemically both bilaterally and regionally within various multilateral fo rmats in 
the Asia -Pacific to advance our respective trade agendas. We appreciate deepening and developing 
trade and economic cooperation with the Republic of Korea, the 9th trade partner of Russia by 
volume which was over US$18 billion in 2015.  
4.253.   To illustr ate our recent bilateral activities in this context, let me just note that the last 
meeting of the Russia -Korea Joint Commission on Economic, Scientific and Technological WT/TPR/W/116  • Republic of Korea  
 
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  Cooperation took place in August 2016 in Seoul and stimulated further development of our 
bilateral ties.  
4.254.   Furthermore, in early September this year, the Presidents of our two countries met in 
Vladivostok on the sidelines of the second Eastern Economic Forum and discussed the ways to 
enhance trade and economic ties. One of the promising out comes of these top -level negotiations 
was a confirmation of joint interest of the parties to launch the Feasibility study to establish a free 
trade area between the Eurasian Economic Union and the Republic of Korea.  
4.255.   Russia shares an overall positive assess ment of the economic policies pursued by the 
Republic of Korea. Seoul has managed to maintain a macro -financial stability and ensure the 
resilience of its export -led economy during the recent four years. We appreciate the openness of 
the Korean economy to international trade, and its integration into the world economy and 
welcome the ongoing trade -related structural reforms aimed at productivity growth, the 
enhancement of domestic demand and further liberalization.  
4.256.   Prior to this TPR session Russia has submi tted a number of questions to the Republic of 
Korea regarding amendments to foreign investment legislation, government procurement, tariffs, 
RTAs, licensing, SPS and agriculture. We look forward to receiving the answers and intend to 
consider them thorough ly. 
TURKEY  
4.257.   South Korea has experienced a rapid and sustained economic growth and global 
integration to become a high -tech industrialized economy since the 1960s. Many factors have 
enabled Korea's rapid change. However, the key amongst these were the buildi ng of an 
information infrastructure and harnessing the potential of science and technology. Country's 
development strategies have focused on achieving sustained productivity growth by consistently 
increasing the value -added of output. South Korea joined th e trillion -dollar club of world 
economies in 2004. Turkey commends the economic development achieved by South Korea at an 
unprecedented speed, in nearly half a century.  
4.258.   As referred to in the Secretariat report, the country's relatively strong fundamentals and 
solid external buffers have helped maintain macro financial stability and ensure the resilience of its 
export -led economy. During the review period, the Korean economy has averaged 2.8% annual 
growth. This is a major downturn compared to the average of  4.4% over 2001 -2011. Some of the 
main reasons behind this downturn are slowdown in world trade and strong export competition 
from emerging economies. Prosperity concentrated in the highly competitive export -oriented 
conglomerates employing a small share o f the population could also be enumerated among the 
reasons. However, we note with pleasure that the Korean authorities are cognizant of the 
challenging growth environment and put in place a number of measures to spur economic recovery 
accordingly.  
4.259.   Turkey notes with satisfaction that Korea, a G -20 member, has adopted the WTO -led trade 
liberalization as the core principle of its trade policy. In addition, a strong advocate of the 
multilateral trading system under the WTO Korea contributes to the advancement of the remaining 
DDA negotiations and the "new issues" such as electronic commerce.  
4.260.   Moreover, I believe that trade and trade -related structural reforms undertaken by Korea 
during the review period would further enhance productivity and so the country's in ternational 
competitiveness. In this context, I wish to underline that according to the World Bank's Doing 
Business 2016 report, Korea's rank improved further from 8th in 2012, to 4th in 2016.  
4.261.   On the bilateral side, Turkey and Korea enjoy excellent politi cal ties since the Korean War. 
I welcome the increasing cooperation between Turkey and Korea in international fora, including 
the in the WTO, WIPO, G -20, and MIKTA.  
4.262.   Korea has been an important trade partner of Turkey in Asia especially for the last decade  
despite the long geographical distance between the two countries. The "Joint Declaration on the 
Establishment of a Strategic Partnership" signed in 2012 has upgraded bilateral relations between WT/TPR/W/116  • Republic of Korea  
 
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  Turkey and Korea to the strategic partnership level. Furtherm ore, we concluded an "Agreement on 
Trade in Goods" with Korea which is in force since 1 May 2013.  
4.263.   I hope that agreements on services and on investment, which I believe will enable us 
further strengthen our trade and economic cooperation will follow the ag reement on trade in 
goods.  
4.264.   Thanks to the Agreement on Trade in Goods, our bilateral trade volume increased to 
US$8.1 billion in 2015, from US$6.2 billion in 2012. However, we think that the bilateral trade 
volume is still below its potential and there is a considerable trade deficit against Turkey. Turkey is 
ready to do its part in order to achieve the real potential of our economies and ensure more 
balanced bilateral trade volume.   
4.265.   Turkish exports to Korea are mainly composed of electrical and electronic  products, 
vehicles, machine, mineral fuels. The major items of imports are mineral fuels, electrical and 
electronic products, machine, iron -steel. In addition, tourism started to become an important area 
of cooperation between our two countries. The numbe r of Korean tourists visiting Turkey increases 
regularly from year to year. In 2014 about 250.000 Korean tourists visited Turkey. This marks a 
33% increase compared to the year before.   
4.266.   Before concluding, I would like to greet my friend Ambassador CHOI an d his team in 
Geneva for their active participation, constructive approach and cooperation in the WTO work and 
DDA negotiations and for the excellent relations between our two Missions.  
EL SALVADOR  
4.267.   Entrando en materia a este ejercicio, nos llama la atenció n la política del gobierno coreano 
centrada en la "economía creativa", perspectiva bajo la cual se han llevado a cabo una serie de 
reformas orientadas a la convergencia de la creatividad de la población con la ciencia, la 
tecnología, las tecnologías de la información y la comunicación, para obtener un mayor valor 
añadido, más empleo, y nuevos motores de crecimiento.  
4.268.   Con esta política también se busca revertir la tendencia de bajo crecimiento que se ha 
tenido la economía coreana desde la crisis financiera m undial. Asimismo, observamos que el 
gobierno de Corea ha realizado varios esfuerzos realizando reformas estructurales comerciales 
para estimular el crecimiento de la productividad, tales como la arancelización del arroz, la 
reforma tributaria y la política  de competencia.  
4.269.   De igual forma, resaltamos la elevada proporción del comercio internacional al PIB que 
llegó al 84,8% en 2015.  
4.270.   En el plano bilateral, los vínculos diplomáticos entre ambos países fueron establecidos en 
1962 y desde entonces se han manten ido de manera estrecha. Corea representa para El Salvador 
un socio estratégico en materia de comercio y desarrollo, con quien se han impulsado varios 
programas que han impactado positivamente en áreas fundamentales como la agricultura, la 
seguridad, la edu cación, la salud, la juventud y el fortalecimiento institucional.  
4.271.   Corea del Sur es el segundo mayor destino de las exportaciones salvadoreñas al continente 
asiático, con una comercio altamente complementario. Además, existen importantes inversiones 
en indu strias como las de textiles y confección, que al primer trimestre de 2015 asciende a 
26 millones de dólares EE.UU.  
4.272.   En cuanto al comercio bilateral, del periodo 2013 a 2015, El Salvador exportó azúcar, café 
oro, fibras sintéticas, hilados de poliéster, cal zado, abrigos y otras prendas de vestir, mientras que 
las importaciones se concentraron principalmente en productos laminados de acero, insumos 
polietileno, vehículos, productos de industrias químicas, entre otros.  
4.273.   Por otro lado, cabe resaltar que actualm ente Centroamérica y Corea están llevando a cabo 
negociaciones para un Tratado de Libre Comercio, celebrando recientemente la VI ronda. 
Adicionalmente, hemos remitido preguntas que han realizado desde nuestra capital en virtud de WT/TPR/W/116  • Republic of Korea  
 
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  este ejercicio, por lo que  agradecemos de antemano a la delegación coreana la remisión de 
respuestas.  
4.274.   En el plano multilateral, respetamos el firme compromiso de Corea con el sistema 
multilateral de comercio y aplaudimos sus esfuerzos en el marco de esta Organización para velar 
por los intereses de los países en desarrollo.  
4.275.   Esperamos continuar fortaleciendo los lazos bilaterales con la República de Corea, a fin de 
promover, entre otros, el incremento en el intercambio comercial actual.  
4.276.   Aprovecho también para agradecer al Embajado r Kyong -Lim Choi y a su equipo por su 
firme compromiso y activa participación en los trabajos ordinarios y extraordinarios de la OMC.  
PAKISTAN  
4.277.   During the period under review, Korea's economic growth remains positive despite being 
slightly lower as compared  to previous performances. We appreciate the stance taken by the 
Korean Government to pursue its objective of a free and open economy based on market 
principles, despite the global economic downturn as well as many challenges faced by the country. 
The Kore an Government undertook and implemented targeted reforms consisting of policies to 
boost the economy, to raise productivity, and promote inclusive growth.  
4.278.   We commend the progressive steps undertaken by the Korean Government such as the 
widening of the regi onal trade agreements, improvement of regulatory framework to facilitate 
trade, the ratification of WTO TFA, the development of package of incentives and measures for 
Exporters, particularly incentives towards leveraging SMEs as to reduce the gap between S MEs and 
large Corporation.  
4.279.   OECD trade facilitation indicators performance for Korea has improved between 2012 and 
2015, its average trade facilitation scores stands at 1.6 against a scale of 2 which is the best 
performance that can be achieved. Korea has made remarkable improvement in the areas of 
information availability where its TFI performance is at 1.88, higher than in many developed 
countries; in the areas of governance and impartiality, Korea TFI performance is at 2 which is the 
highest achievable. Its performances also improved in the areas of involvement of the trade 
community, simplification of documents, streamlining of border procedures, and external border 
agency cooperation.  
4.280.   The global connectivity of Korea is extremely impressive. Korea is on e of the most digital 
savvy countries in the world. Korea has the fastest average internet speed. 2016 WEF Global IT 
report, ranked Korea at the 13th place out of 133 Countries for its Network Readiness Index. In 
2016, Korea is amongst the top 10 countries  listed in the UN e -Government and e -participation 
Index, being ranked at the third and fourth place respectively. Korea is amongst the top ten 
countries and ranked at 7th place on the UNCTAD B2C E -commerce Index of 2016.  
4.281.   In one area, Pakistan and Korea f ace similar challenges,  that is Gender Equality.  
4.282.   The WEF Global Gender Gap report 2015 places Korea at 115 out of 145 countries. Korea 
performs exceptionally well in the dimensions of education and health, however political 
empowerment and economic opport unity dimension erodes its gender equality score.  
4.283.   Pakistan and Korea maintain excellent bilateral and diplomatic relationships. A Korean 
Company built the first motorway of South Asia in Pakistan, it is a 400km, 6 lane limited access 
link between Islamaba d and provincial capital Lahore. The Korean Aid Agency KOICA continues to 
support and assist Pakistan in the areas of economic and social development. Since 2008 Pakistani 
workforce in Korea is estimated to be around 5'500 people and in 2016 the quota of P akistani 
workforce allowed in Korea has increased.   
4.284.   Bilateral trade between the two countries stood at around US$1 billion a year, a figure that 
is much below the existing bilateral trade potential between the two countries. In order to boost 
bilateral tr ade, a MoU was signed in April 2014, it was mutually agreed to work on the possibilities WT/TPR/W/116  • Republic of Korea  
 
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  for Free Trade Agreement and subsequently a joint study was carried out for this purpose. The 
conclusion of the joint study is expected this year.   
4.285.   Recently, Korea an d Pakistan signed a Framework Arrangement under which 
US$500  million is being invested in hydropower, road infrastructure, improvement of power 
distribution system, information technology and health sector by Korea.  
4.286.   We commend the strong and active role p layed by Korea at the WTO led by 
H.E Ambassador CHOI and his team. We would particularly highlight the area of technical 
assistance and capacity building for LDCs and developing countries where Korea is a major donor 
country to the DDA Global Trust Fund.  
KAZAKHSTAN  
4.287.   Kazakhstan congratulates the Republic of Korea for its economic performance during the 
period under review.  
4.288.   We note and commend the Republic of Korea for the implementation of the Three -Year 
Plan for Economic Innovation which was adopted in Febru ary 2014.  
4.289.   Kazakhstan and the Republic of Korea have strong diplomatic and trade relations, based on 
more than 30 agreements covering cooperation in trade, investment and tax matters, science, 
technology and cultural issues.  
4.290.   Next year will mark the 25th a nniversary of the establishment of diplomatic relations 
between Kazakhstan and the Republic of Korea. We are determined to further deepen and enhance 
our strategic cooperation.  
4.291.   The Republic of Korea is currently ranked as Kazakhstan's 9th largest trading partner. In 
2015, the value of bilateral trade between the countries totaled about US$1.4 billion.  
4.292.   In 2015 the Republic of Korea was the 9th most important destination for Kazakhstan's 
export, which consisted mainly of crude oil, 86% of the whole Kazakhsta n's export to the Republic 
of Korea, metals, while import from the Republic of Korea were led by automobiles, electronics and 
equipment.   
4.293.   Kazakhstan and the Republic of Korea have been working actively to strengthen our trade 
and investment relations. Ind eed, our countries have engaged in numerous discussions regarding 
the possibility of the two sides and I strongly believe that our bilateral trade volume does not 
represent the real potential and there is still a big room to further develop.  
4.294.   In particular,  the joint committees for cooperation such as the Intergovernmental 
Commission on Trade -Economic and Scientific -Technical Cooperation, the Committee for Energy 
and Mineral Resources Cooperation, the Committee for Cultural Collaboration, the Business Counci l 
for Strategic Cooperation and the Kazakh -Korean technology cooperation Center are successfully 
operating between our two countries.  
4.295.   Since 2005, the Republic of Korea has invested about US$4.0 billion of foreign direct 
investment in Kazakhstan and belong s to Top 10 investors in Kazakhstan's economy. In 2015, 
investments from the Republic of Korea accounted for 2.7% of total foreign direct investment in 
Kazakhstan.  
4.296.   Up to day in Kazakhstan operate 429 enterprises with the participation of the Korean 
capita l, involved in the energy and construction industries, the production of household appliances, 
food processing, manufacturing and assembly of cars ("Samsung C&T", "LG Electronics", "Dongil 
Highvill" and others).  
4.297.   To conclude, we wish to congratulate the Rep ublic of Korea for its active participation in 
the multilateral trading system, its commitment to the negotiation process and the adoption of the 
Trade Facilitation Agreement, and its significant role in the ongoing trade negotiations in the WT/TPR/W/116  • Republic of Korea  
 
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  Organization ( the Information Technology Agreement (ITA) expansion negotiations, the 
negotiations for the Environmental Goods Agreement (EGA)).  
COSTA  RICA 
4.298.   La República de Corea es un socio comercial importante para Costa Rica y con quien 
compartimos iniciativas e intere ses comunes.   
4.299.   El comercio total entre Costa Rica y Corea ha crecido sustancialmente (123,1%) en la 
última década. Esto significó un crecimiento anual promedio de 8,4%, entre el 2005 y el 2015. 
Para este mismo periodo las exportaciones de Costa Rica hacia Corea crecieron a un tasa anual 
promedio del 9,4%, mientras que las importaciones lo hicieron a una tasa del 8,2%. Para el 2015 
el comercio total entre ambos países alcanzó 442,1 millones de dólares EE.UU., creciendo un 
12,6% con respecto a 2014. Este comp ortamiento confirma que los mercados de Costa Rica y 
Corea tienen grandes posibilidades de expansión e interacción mutuamente provechosa.  
4.300.   Nuestra relación  con Corea ha seguido floreciendo en muchos ámbitos. En el campo 
comercial, a inicios de 2015 se reac tivó el impulso para la negociación del Tratado de Libre 
Comercio entre la República de Corea y Centroamérica, planteada como una negociación con toda 
la región.   
4.301.   Desde el lanzamiento oficial de las negociaciones en junio de 2015, las Partes han 
participa do en un total de seis rondas de negociación, realizadas en Corea del Sur, El Salvador, 
Estados Unidos, Tegucigalpa y Managua. Estamos satisfechos con el avance del proceso, y 
confiamos en que podremos concluirlo antes de que termine este año.  
4.302.   Resaltamos e l nivel de apertura de la economía coreana al comercio internacional y el 
papel activo que juega Corea en el sistema multilateral del comercio.   
4.303.   Al igual que Costa Rica, Corea es partícipe de la ampliación del Acuerdo sobre Tecnologías 
de Información (ITA ), así como de las negociaciones del Acuerdo sobre Bienes Ambientales (EGA) 
y el Acuerdo sobre el Comercio de Servicios (TISA). Destacamos también su papel dentro de las 
negociaciones comerciales de esta Organización, en las que ambos hemos compartido posi ciones 
como parte del Grupo de Amigos Anti -dumping.   
4.304.   De igual forma, consideramos importante el interés y el liderazgo mostrado por Corea en 
un tema de alta relevancia actual como es el cambio climático, tema en el cual presentamos 
recientemente una propu esta conjunta ante el Comité de Comercio y Medioambiente.  
4.305.   Nos gustaría también referirnos a algunos aspectos incluidos en los informes presentados 
como parte de este examen de políticas comerciales.  
4.306.   En primer lugar, hay que reconocer el buen manejo macroe conómico llevado a cabo 
durante el período de examen. La estabilidad macroeconómica se ha mantenido a pesar de que 
Corea ha experimentado un menor crecimiento económico en el último cuatrienio.   
4.307.   Tanto la inflación como el desempleo se mantienen bajos y a pesar de la contracción en el 
comercio mundial, es destacable que Corea se mantenga dentro de los diez principales 
exportadores e importadores a nivel global.  
4.308.   Como parte de las medidas tomadas para propiciar un mayor crecimiento económico, se 
han realizado  reformas estructurales importantes, entre las cuáles se incluyen aquellas 
relacionadas con la eficiencia de las instituciones públicas, la enseñanza, la reglamentación y la 
política de competencia.  
4.309.   Coincidimos con Corea en que la creatividad es un elemen to que puede proporcionar un 
valor añadido a la economía y convertirse en un motor de crecimiento conjuntamente con otras 
iniciativas en el campo de la tecnología, la ciencia y la comunicación. De ahí que vemos con 
particular interés el impulso que se le e stá dando a la llamada economía creativa en el Plan Trienal 
de Innovación Económica.  WT/TPR/W/116  • Republic of Korea  
 
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  4.310.   Esta serie de reformas e iniciativas definitivamente contribuirán a mejorar aún más la 
competitividad internacional del país, competitividad que ya de por si se ve refleja da en índices 
globales como el Doing Business del Banco Mundial, en el cuál Corea se ubica en el cuarto lugar a 
nivel mundial, y el Índice de Innovación de Bloomberg, en el cual Corea se ubica a la cabeza de 
dicho ranking.   
4.311.   Desafortunadamente, el ímpetu d e esta serie de reformas no se ha visto reflejado en otros 
ámbitos como la agricultura. Si bien es cierto se han introducido algunos cambios positivos como 
el proceso de arancelarización del arroz, todavía persiste un alto grado de intervencionismo estatal  
en un sector que ya de por sí se caracteriza por sus altos aranceles de importación y elevados 
niveles de ayudas internas. En consecuencia, alentamos a Corea a acelerar las reformas en este 
campo.  
4.312.   Finalmente, nos complace observar que el gobierno coreano tiene previsto incentivar una 
mayor eficiencia energética y promover el uso de energías renovables. Sería interesante conocer si 
dentro de sus políticas energéticas, Corea tiene previsto impulsar reformas a las subvenciones a 
los combustibles fósiles y si piensa someterse próximamente al proceso de revisión voluntaria 
establecido por el G20 en este campo.   
MYANMAR  
4.313.   Myanmar aligns itself with the statements made by ASEAN and the LDCs.  
4.314.   We also welcome this Seventh Trade Policy Review of the Republic of Korea and have 
optimistic on trade and trade -related structural reforms of the Republic of Korea in order to 
maintain macroeconomic stability and ensure the resilience of its export -oriented economy.  
4.315.   Myanmar and the Republic of Korea have established diplomatic  relations since May 1975.  
4.316.   According to our record, the bilateral trade between Myanmar and the Republic of Korea 
were gradually increased. In the 2015 -2016 Fiscal Year, the two -way trade reached over 
US$656  million. We would like to see the continuation o f this positive trend.  
4.317.   In terms of the Foreign Direct Investment in Myanmar, the current volume of investment 
from the Republic of Korea is US$3.49 billion according to the FDI statistics published in 
June 2016.  
4.318.   The Republic of Korea is an important playe r of both the regional and multilateral trading 
systems. We are glad to note that the Republic of Korea has been supportive of the need to bring 
the current trade negotiations forward, including the DDA negotiations.  
4.319.   The delegation of Myanmar is pleased to  convey our sincere thanks and appreciation to 
H.E. Mr. LEE Inho, Deputy Minister for Trade, Ministry of Trade, Industry and Energy and his 
delegation for their constructi ve engagement throughout this se venth TPR.  
THE PHILIPPINES  
4.320.   The Philippines would lik e to associate itself with the ASEAN statement recognizing the 
dynamic trade relations between the ASEAN member States and the Republic of Korea.  
4.321.   The Republic of Korea was the Philippines' 8 th major trading partner, 7 th top export market 
and 7 th top import  supplier in 2015. Among the top commodity exports of the Philippines to Korea 
are digital monolithic integrated circuits, copper ores, and petroleum oils. While among the top 
imports of the Philippines from Korea are petroleum oils, light petroleum oils a nd preparations, and 
other digital monolithic integrated circuits.  
4.322.   In January 2013, the Joint Commission for Trade and Economic Cooperation (JCTEC) 
between the Philippines and Korea was established to strengthen the bilateral trade and economic 
relations b etween our two countries. The JCTEC seeks to identify strategic partnership initiatives in 
areas of mutual interest to take advantage of the complementarities of our economies. We look 
forward to scheduling the inaugural JCTEC meeting at a date mutually ag reed upon by both sides.  WT/TPR/W/116  • Republic of Korea  
 
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  4.323.   The Philippines recognizes Korea's Three -Year Plan for Economic Innovation which enabled 
their country to recover from the low -growth trend of the global economy and the fast -changing 
trade environment. It includes building an enab ling environment for a creative economy, which 
highlights creativity as a central economic value, and generates jobs and growth engines through 
the convergence of people's creativity with science and technology.  
4.324.   Further, we commend the establishments of Cr eative Economy Innovation Centers, which 
served as stepping stones for the growth of start -ups and small and medium enterprises (SMEs). 
We also acknowledge the Government's regulatory reforms to reduce the burden of doing business 
through measures like the  "cost-in, cost -out" system which offsets the cost of newly creating or 
reinforcing regulations by abolishing or relaxing existing regulations. These reforms brought Korea 
at the 4th spot on the World Bank's Doing Business list in 2015.  
VIET  NAM 
4.325.   It is our pleasure to associate ourselves with the ASEAN joint statement.   
4.326.   It is delighted to know that from the previous trade policy review, Korea has maintained 
macroeconomic stability thanks to relatively strong fundamentals and solid buffers to external 
shocks .  
4.327.   We applaud Korea for what the country is doing now: seeking economic recovery from the 
global economic crisis through a creative economy and regulatory reform and maintaining 
committed to open markets.   
4.328.   The WTO multilateral trade system has been benefi cial to the economic development of all 
members including Korea and Viet Nam. In return, the Korea has also contributed to the system 
by its dynamic, active and constructive engagement in all areas of negotiations. Viet Nam also 
congratulates the Korea for  ratifying the Trade Facilitation Agreement in July last year and for its 
continued support and promotion of the benefits of implementation of the Agreement to other 
WTO Members. I would like to commend Ambassador CHOI Kyonglim for his able leadership and 
important contribution to the WTO work.  
4.329.   Viet Nam -Korea trade relations have come to a new height with the conclusion and entry 
into force of the bilateral free trade agreement from December last year. We believe the FTA will 
help foster the political, econ omic and cultural relations between the two countries and deepen our 
strategic cooperative partnership.  
4.330.   Over the past few years, Korea has been one of the largest trading partners of Viet Nam. 
In 2015, two -way trade reached US$36.5 billion, up 26.5% year -on-year, bringing Korea to 
become the third largest trading partner of Viet Nam.  
4.331.   In terms of investment, Korea has become Viet Nam's biggest foreign investor with respect 
to both number of projects and investment capital since 2014.  
4.332.   To consolidate the rel ation, the two countries have engaged several bilateral agreements 
in cooperation, avoidance of double taxation and judicial assistance.  
4.333.   Despite positive signals with the continuous expansion of two -way trade, Viet Nam, in fact, 
continues to experience tr ade deficit with Korea. Therefore, we would highly appreciate if Korea 
can consider to:  
 Firstly, accelerate the risk assessment process with respect to Viet Nam's high -quality fresh 
fruits such as logan, litchi and rambutan so that these fruits would soon  be exported to 
Korea, meeting the demand of Korean people and improve life quality for Vietnamese 
farmers;  
 Secondly, carefully note the proposed application of new mechanism for the management of 
the list of plant protection products for oilseed crop and tropical fruits and vegetables. This is 
expected to affect directly the export of important export items from Viet Nam such as 
coffee, cashew nuts, and tropical fruits to Korea;  WT/TPR/W/116  • Republic of Korea  
 
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   Thirdly, encourage Korean economic groups and corporations to bring Viet Nam' s agro -
fishery products, processed food and consumption goods into the distribution system of 
these companies in Korea as well as in the world; and  
 Lastly, work with Viet Nam to complete the consultation process regarding the issue of 
tariffication for ric e, which we believe will help ensure mutual benefits for both sides.  
4.334.   We acknowledge the important role that the Korea plays in the multilateral trading system. 
We look forward to further cooperation with Korea on all fronts, bilaterally, regionally, and he re at 
the WTO.  
4.335.   I would like to conclude this statement by putting on record our high appreciation for the 
contribution to the system by wishing Korea every success in its economic and social development 
and the Korean delegation a fruitful trade policy rev iew. 
SRI LANKA  
4.336.   My delegation highly appreciates Korea's continued commitment to the multilateral trading 
system and its active engagement in the negotiations in the WTO. We welcome Korea's joining in 
the WTO Trade Facilitation Agreement in July 2015, becom ing the 10th member to deposit its 
instrument of acceptance of the Agreement. As a key player in the multilateral trading system, 
Korea plays a very important role in the WTO. The dynamic role played by Ambassador Kyong -lim 
Choi and his team in proactively  engaging in ongoing activities of the WTO is highly commendable. 
We also appreciate Korea's valuable contribution to the Asia –Pacific Group of Developing Members 
which is currently coordinated by Sri Lanka.  
4.337.   Going through the reports by both the Republic of Korea as well as the WTO Secretariat, 
my delegation noted with interest the initiatives of "creative economy" which is the Korean 
Government's central policy objective aiming at generating new added value, jobs and growth 
engines through the convergence  of people's creativity with science, technology and information 
and communication technology. My delegation believes that Korea's three year plan for economic 
innovation adopted in 2014 to create an enabling environment for a creative economy and 
conducti ng structural reforms in the areas of public institutions, labour, finance and education will 
ensure momentum for an economic recovery from the low -growth trend.  
4.338.   Let me briefly reflect on the historical close bilateral relations between Korea and 
Sri Lanka. The strong relationship between the two countries has grown steadily over the time. 
The value of total trade turnover between the two countries has increased from US$255 Million in 
2004 to US$372 Million in 2015, registering an increase of around 46%. K orea was the 14th 
largest importer of Sri Lanka in 2015. Sri Lanka has signed a number of bilateral agreements with 
Korea. The two countries concluded rounds of air services negotiations in expanding bilateral air 
transport arrangements in 2013. The republ ic of Korea has been one of the most important 
sources of foreign direct investment to Sri Lanka. Sri Lanka - South Korea Bilateral Investment 
Treaty was signed in March 1980 and came into force in July 1980. At present there are 
116 Korean projects in oper ation in Sri Lanka under the purview of Board of Investment law. 
Sri Lanka and South Korea are members of the Asia Pacific Trade Agreement (APTA) which was 
signed in 1975 with the initiative of the ESCAP for promoting intra -regional trade through 
exchange of mutually agreed tariff concessions by member countries. Sri Lanka being one of the 
largest beneficiaries of the Korean International Cooperation Agency (KOICA), is thankful for the 
international development assistance of the Republic of Korea. Being the  number one beneficiary 
in terms of the size of the quota for employment opportunities in Korea, Sri Lanka is thankful for 
the opportunities opened for Sri Lankan workers in Korea.  
LAO PDR 
4.339.   Allow me first to congratulate the Republic of Korea for conducting  their seventh TPR 
exercise; we highly appreciate the effort put into this exercise. We would like to commend 
specifically Korea for their tremendous efforts over the past years to engage in numerous 
investment and business -friendly regulatory reforms, put  in place to counter the overall backdrop 
of the world economy. In that sense, the Republic of Korea represents an example to follow for 
many nations, including ours.  WT/TPR/W/116  • Republic of Korea  
 
- 46 - 
 
  4.340.   Regarding trade between the Korea and Lao PDR, total merchandise trade between the two 
countries amounted to nearly US$200 million in 2015 with a largely positive trade balance for 
Korea. Despite this, the annual growth in value of Lao exports to Korea between 2011 and 2015 
reached 53%, whilst it stayed at 1% for imports. Exports of Lao produc ts to Korea, which were 
valued in 2015 at US$28.4 million, consisted essentially of fertilizers, wood charcoal, coffee as well 
as other raw commodities (lead, copper) and some articles of apparel. Leading imports from Korea 
are of more high value added nat ure, such as motor vehicles, engines and electrical machinery. 
Total imports of Korean products represented US$170.3 million in 2015. In sum, trade in goods 
between Lao PDR and the Republic of Korea increased by 20.1% in 5 years (from 2011 to 2015) at 
an annual average growth of 4.6%.  
4.341.   Our bilateral trade relations are governed also by various preferential trade agreements 
such as the Asia -Pacific Trade Agreements (APTA), the ASEAN -Korea FTA (AKFTA) and the 
soon-to-be-concluded RCEP. Lao PDR also benefits fr om Korea's LDC -specific preferential tariff 
scheme  although we believe that it would be highly beneficial for all LDCs to extend the coverage 
of duty -free lines. Indeed, they currently stand at 90.3% of total lines.  
4.342.   We hope that our fruitful trade and eco nomic relationship with the Republic of Korea will 
grow further and stronger. Lao PDR wishes every success to South Korea in its seventh Trade 
Policy Review.  WT/TPR/W/116  • Republic of Korea  
 
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  5  REPLIES BY THE REPRE SENTATIVE OF THE REP UBLIC OF KOREA AND A DDITIONAL  
COMMENTS  
5.1.  Thank you all for gathering once again for the second session of Korea's seventh Trade Policy 
Review.  
5.2.  I would like to express my sincere appreciation once again to Madam Chair, Her Excellency 
Irene Young, Permanent Representative of Hong Kong, China, and to the distinguish ed discussant, 
His Excellency Jonathan T. Fried, Ambassador of Canada.  
5.3.  I would like to extend special thanks to all representatives for the constructive comments and 
thoughtful insights you provided during the first day of the Review. Before I delve into d etails, I 
would like to reaffirm that we place great value on our global trade relations and are fully 
committed to continuously working together with our trading partners.  
5.4.  Gathering from the observations offered during our first review session, we are ple ased to 
give our Members today a comprehensive overview of Korea's positions on the areas where 
questions were raised.  
5.5.  We were deeply gratified with all the acknowledgements and commendations from Members 
on Korea's stable management of its macro economy, implementation of regulatory reforms and 
application of active market opening policies. We were further encouraged by Members' 
recognition of our efforts in such areas as IPR, renewable energy, fossil fuel subsidies in coal, 
among many others.  
5.6.  More specifi cally, the creative economy initiatives and the Three -Year Plan for Economic 
Innovation were acknowledged highly by many Members. While we continue on with such policy 
efforts to revitalize our economy, we will also give closer attention to strengthening S MEs' role and 
promoting their competencies.  
5.7.  In customs clearance, Korea will build on what we have achieved in the single window, 
customs valuation and de minimis  clearance, and bring further developments to other customs 
procedures, including internationa l exchange of origin -related documents.  
5.8.  In the service sector productivity, we will push forward the implementation of the Service 
Economy Development Plan announced in July 2016. Furthermore, Korea will continue to make an 
effort to increase FDI inflow in  the service sector.  
5.9.  We do not doubt that we are moving in the right direction in response to the current 
challenges we face, but there still remains much work to be done for more visible and concrete 
outcomes in a wide range of areas.  
5.10.   I would like to move  into further details on some of the issues raised by Members. Let me 
start with the increase in the average applied MFN tariff rates during the review period. We would 
like to clarify that this not constitutes an actual increase in the tariff rate. Rather , it is the outcome 
of the insertion of sixteen (16) tariff lines for rice and rice products as well as the process of 
splitting the tariff lines with high rates while merging the tariff lines with lower ones.  
5.11.   As for the flexible tariffs, Korea operates th em only for limited purposes in case where a 
need arises to stabilize import prices as well as domestic supply and demand.  
5.12.   With regard to confirmation of the revised concessions schedule for rice tariffication, we 
welcome bilateral consultations requested by a few Members and continue to further our 
discussions.  
5.13.   We also took note of comments on Korea's tariff -rate quotas (TRQ). The low fill ratio of TRQ 
is mainly due to products with low domestic demand, and not due to administration methods 
applied by the authorities. Excluding products with low domestic demand, the annual average fill 
rate rises to more than 80%. Let me note that Korea has also made efforts voluntarily to enhance 
transparency in TRQs administration in line with the Bali package concluded a t MC-9 in 2013.  WT/TPR/W/116  • Republic of Korea  
 
- 48 - 
 
  5.14.   With regard to SPS, I would like to reaffirm that Korea operate its SPS measures based on 
scientific evidence in compliance with the WTO SPS Agreement. We also put great emphasis on the 
fairness and predictability of the SPS measures by tak ing various perspectives from domestic and 
foreign stakeholders alike.  
5.15.   For instance, the new positive list system for Maximum Residue Limits is established firmly 
based on scientific evidence. Before introducing this standard, we held seminars and informat ion 
sessions to collect opinions for six years from various stakeholders, including foreign Embassies in 
Korea and export and import businesses. We also faithfully observed our WTO notification 
requirement in 2014 with regard to the relevant legal revision s. 
5.16.   Korea also took note that some Members raised concerns regarding export credits in the 
shipbuilding industry. Korea is prepared to take part in international discussions on export credits 
in shipbuilding through a variety of platforms, like the OECD Wor king Party on Shipbuilding. One 
more point we would like to make in this area is that the Korea shipbuilding industry is currently 
going through restructuring, led by commercially based decisions of the creditors of the concerned 
companies.  
5.17.   For the impleme ntation of the ITA Expansion, domestic procedures are currently underway 
in Korea following the circulation and certification of our WTO schedule in September. Although 
uncertainty still remains with regard to how the Korean National Assembly's ratificatio n process 
would be carried out, we hope that the agreement could enter into force within this year at the 
earliest.  
5.18.   Korea is taking an active part in trade capacity -building activities for LDCs. In addition to 
duty free, quota -free (DFQF) market access for  LDCs as well as the contribution to the WTO Global 
Trust Fund and the Tier 1 projects of the Enhanced Integrated Framework, Korea also carries out 
capacity building and training programmes for Government officials from LDCs on food hygiene 
and safety, qua rantine, trade facilitation and customs modernization.  
5.19.   As Members emphasized on the first day of our review, we fully agree on the importance of 
fishery resources protection and sustainable fishing. In this regard, we are making efforts for the 
efficient o peration of the Fishery Management System (FMS) for restraining overfishing and raising 
the level of penalties for IUU fishing.  
5.20.   Korea believes that observing Members' notification requirement to the WTO is central to 
enhancing transparency, which is the ba ckbone of the multilateral trading system upheld by the 
WTO. Furthermore, Korea has faithfully abided by its notification requirement to the WTO with 
very few exceptions. I want to assure you that notifications on those areas, including government 
procurem ent, export subsidies, and domestic support in agriculture, will be made in the earliest 
possible time.  
5.21.   It is my hope that Korea's seventh TPR has served as a valuable opportunity for Members to 
enhance their understanding of Korea's economic and trade pol icies. I would like to conclude my 
remarks by expressing my deepest appreciation to all Members for the great support and interest 
we have received throughout this process.  
5.22.   We are proud to have responded thoroughly to most of the questions raised, and for the 
remaining and following questions, I would like to refer you to the written answers to be provided 
at the earliest time possible.  
5.23.   We will continue to make efforts for enhancing the multilateral system going forward, since 
we believe that by so doing, t he benefits from the multilateral trading system will be more equally 
distributed and enjoyed by all Members.  
5.24.   I hope our work for Korea's seventh TPR will contribute toward our collective goal of 
strengthening the multilateral trading system. Thank you.  WT/TPR/W/116  • Republic of Korea  
 
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  DISCUSSANT  
5.25.   Most of you are probably in the process of preparing the report to your capitals and you will 
copy your Embassy on the outcome of this. If I was writing a report, I would start with our 
discussions which revealed a good deal of consensus, agreeme nt and commendation.  
5.26.   First and foremost, tremendous commendation to the exceptional leadership shown by 
Ambassador Choi Kyong -Lim and his team here in Geneva on an ongoing basis. That was 
unanimously expressed and it is something, I am sure, the Deputy Min ister will take home with 
him as well.  
5.27.   Second, in context, there was a broad acknowledgment that one of the great strengths that 
underlie Korea's success is its macroeconomic management, the strength of its financial system 
and its budgetary situation, its  current account, so on.  
5.28.   Third, you have a country that on record is deeply committed to a policy direction of 
continuing reforms and the Deputy Minister already highlighted some of them that you and your 
comments also identified, such as regarding energy,  not only moving away from fossils and fuels 
but moving away from State to marked orientation. And overall, orientation to innovation and 
moving to a creative economy. A leadership example is trade facilitation and customs 
modernization and a country that so well integrates its plurilateral initiatives with its commitment 
to the multilateral system.  
5.29.   If I was continuing with my report, I would try, summarize and group some of the 
comments and questions, doubts and criticisms expressed by Members. Most promin ent was along 
two axes. The fist axis is the distortions created and maintained in the Korean economy between 
large and small enterprises, the domination of large conglomerates and the constraints that it 
continues to put on SMEs, on job creation as a resu lt. The second axis is a conspicuous difference 
in the regulatory burdens carried and the emphasis put on government policy today on a good side 
of the economy versus the services side of the economy. Something that has being addressed in 
the course of the  policy reform but a very prominent distortion in terms of the agility available to 
firms to respond to global environment.  
5.30.   A tremendous focus on agriculture related policies ranging from SPS measures, the manner 
of their administration, whether transparen t or not, the nature of the consultations undertaken in 
undertaking measures. The delay backward in notifications which the Deputy Minister promised to 
address, being another example. These over and above the high average tariff and the rise quota 
administ ration in particular.  
5.31.   The agriculture basket of issues suggests a third set of concerns which, building on my 
earlier observations of goods versus services, large versus small, is a more general concern about 
continuing red tape. There are certainly conti nuing opportunities to streamline, dealing with 
Government and doing a business despite Korea's already very high ranking in global indices for 
ease of setting up and doing business.  
5.32.   It also points to a fourth area underlining some of these more specific c oncerns which is to 
state aid. To what extent our Government incentives and the regulations still leave room for trade 
activities, to show and do certain preferences for certain categories of firms. I took careful note of 
your suggestion that the restructu ring of the shipbuilding industry is on a commercial basis.  
5.33.   Finally, two other areas that drew Members' attention where, again, the Deputy Minister 
responded and reassured us that there is a Government commitment to do better government 
procurement where the remarkably low participation of foreign supplies and suppliers runs 
intuitively counter to your membership in the GPA and expanding GPA. Although not officially, 
under existing WTO disciplines, a number of Members highlighted caps in restrictions on fo reign 
investment in various specific sectors. We know that trade follows investment and investment 
follows trade and, to the extent, there is more liquidity, more competition, more participation in 
various sectors through foreign investment. The more trade  would follow and the more competitive 
the Korean industry in goods and services itself would be.  WT/TPR/W/116  • Republic of Korea  
 
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  5.34.   If I was writing my conclusion in my report, I would share the view of the Deputy Minister 
that this has been a remarkably positive assessment of a country th at continues to be among the 
leading nations at the WTO. Your leadership shown in bringing forward creative initiatives, lead up 
at the last two Ministerial and now through MIKTA and otherwise, promoting and stimulating 
discussion on emerging issues broadl y recognized, the eleventh largest economy in the world 
having moved up from the 16th in the last review, means you are going to be well within the top 
ten by the time you return for the next review. All of which is to say I might trust your delegation 
will go home taking very much broad blessing and encouragement from the membership here and 
endorsement of the Government that has, since 2013, taken a direction and a policy reform almost 
like a marathon. You have people along the side -line helping you to co mplete the tasks that 
remain and still to be done.  
5.35.   I offer my very best wishes and my thanks for the privilege of being engaged with you as 
discussant. Thank you.  
THE SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU  
5.36.   First of all, the Separate  Customs Territory of Taiwan, Penghu, Kinmen and Matsu wishes to 
thank the delegation of the Republic of Korea for the replies it has given to our written questions, 
as well as for its contribution to this morning's meeting and the exercise taking place th is week 
which has been under preparation for several months.  
5.37.   My Government has carefully analyzed the answers provided to our questions, we would like 
to take this opportunity to ask a few follow -up questions in the area of the Unfair Competition 
Preventio n and Trade Secret Protection Act (the evidentiary effect of the trade secret certification) 
and the ICOP (Illegal Copyright Obstruction Program).  
5.38.   We submitted two additional questions to the Secretariat, and we look forward to receiving 
the responses in d ue course.  
5.39.   We hope that this Trade Policy Review will have been an opportunity for the Republic of 
Korea to gather useful comments, and for the other WTO Members to gather observations on 
Korea's trade policies and measures.  
5.40.   We (The Separate Customs Territ ory of Taiwan, Penghu, Kinmen and Matsu) appreciate the 
efforts of the Permanent Mission of the Republic of Korea under the leadership of H.E. 
Mr. Ambassador Kyonglim CHOI . We also thank the discussant, H.E. Mr. Ambassador Fried, for his 
highly pertinent comments.  
EUROPEAN  UNION  
5.41.   The EU would like to thank delegation of the Republic of Korea for the replies it has provided 
to the EU's questions. We have read the replies with great interest and we consider that this TPR 
has been very instructive. Nevertheles s, we would like to highlight the need for more accuracy and 
details in the replies to some our questions.  
5.42.   Today, we would like to present some comments and observations on the review so far and 
also briefly present a few follow -up questions.  
5.43.   First of al l, the statements we have heard on the first day of this review all recognized the 
impressive economic development of Korea in the last few decades, as well as its strong 
commitment and contributions to the multilateral trading system. Korea's economic res ilience in a 
low growth world continues to be supported by a number of governmental policy initiatives and 
structural reforms to improve Korea's competitiveness on the international scene.  
5.44.   While appreciating the considerable efforts of the Korean Governme nt to facilitate further 
the access of foreign companies to its markets and to make Korea a more attractive place for 
foreign investors, a few challenges still persist - particularly in the areas of services, enforcement 
of intellectual property rights, go vernment procurement, SOEs, subsidies, SPS measures and 
tariffication.  WT/TPR/W/116  • Republic of Korea  
 
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  5.45.   The EU encourages Korea to make further efforts towards increased transparency and take 
steps to further improve the business climate in Korea, including ensuring a level playing field  for 
foreign companies, goods and services.  
5.46.   In order to have further clarification on some of the issues of interest for the EU, we have 
submitted a few follow -up questions. Notably, we are seeking additional information on the recent 
developments in the K orean shipping and shipbuilding sectors, as well as regarding export 
subsidies and the individual consumption tax applicable to cars. We thank in advance Korea for 
providing replies to those questions within the established timeframe for this exercise.  
5.47.   Finally, on behalf of the EU, let me again express appreciation to the delegation of the 
Republic of Korea for their contribution during this 7th Trade Policy Review. Thank you.  
UNITED  STATES  
5.48.   We sincerely thank Deputy Minister Lee and Ambassador Fried for you r perspectives this 
morning and we would like to express our appreciation to the entire delegation of Korea for its 
instructive and diligent efforts during this seventh Trade Policy Review.  
5.49.   We appreciate the summary of the discussions of the first day and the informative 
responses received from the Republic of Korea. And you may be glad to know that we actually 
have no follow -up questions at this time.  
5.50.   Thank you also for having raised questions of special importance for the United States on 
day one and we a re willing to exchange documentation. We will be glad to hear some comments 
on customs procedures, regulatory environment reforms and aligning SPS measures.  
5.51.   We also noted very well some other themes of interest in this TPR discussion such as 
innovation ec onomy, protection of the agriculture sector, government procurement and the role of 
large conglomerates. Washington follows these and other issues of great interest.  
5.52.   The United States very much appreciate its strong relationship with Korea in trade and 
beyond. We are encouraged by its progress and its engagement in many bilateral, plurilateral and 
multilateral initiatives to its trade liberalization and capacity building.  
5.53.   We look forward to a continued cooperative work with our friends in Geneva and in man y 
other venues. We congratulate the team on this successful TPR and wish everyone travelling back 
to capital a good journey.  
SINGAPORE  
5.54.   We join others in thanking the Deputy Minister Lee and the delegation for all your hard 
work.  
5.55.   We just wanted to flag that  Singapore has submitted one follow -up question with regard to 
imported pharmaceutical products. We hope that the Korean delegation will be able to respond to 
that question in due course.  WT/TPR/W/116  • Republic of Korea  
 
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  6  CONCLUDING REMARKS B Y THE CHAIRPERSON  
6.1.  This Trade Policy Review has provided a very good opportunity for Members to understand 
better recent developments in Korea's trade policies and the challenges it faces. I would like to 
thank, once again, Deputy Minister Mr. Inho Lee, and his delegation for their constructive 
engageme nt throughout this exercise. I would also like to thank our discussant, Ambassador 
J. Fried, for his insightful remarks; and the 39 delegations which had taken the floor for their 
active participation.  
6.2.  During the discussion, Members appreciated Korea's sol id economic fundamentals and the 
increasingly important role it played in international trade. They saw remarkable resilience in 
Korea's economy as it recovered from the 2008 financial crisis and continued to grow, albeit at a 
slower pace, amidst uncertain ties in the global scene.  
6.3.  In this review, Members were informed that the Three -year Plan for Economic Innovation and 
the Creative Economic initiative were key strategies to keep up this momentum. They also heard 
from the delegation how Korea aimed to fost er a more open and free economic system through 
attracting foreign investment and implementing public sector and regulatory reforms. Many 
commended Korea for its efforts to keep its regulatory framework up -to-date, but they also saw 
room for improvement, f or instance, in the registration, notification, licensing and approval 
requirements for foreign investment. Members noted that, despite promotion efforts and Korea's 
high ranking in the World Bank's ease -of-doing -business index, inward foreign direct inves tment 
remained much lower than the outflow. They encouraged Korea to reduce the various limitations 
and restrictions. They believed that this, together with more effective enforcement of the 
strengthened intellectual property rights legislation, would make  investment in Korea a lot more 
attractive.  
6.4.  Another challenge that Members had observed was the productivity gap between the 
manufacturing and services sectors. Like investment, trade in services was seen as a key driver for 
future growth in Korea, and ye t, services continued to be under -developed, and there was a lack 
of competition in major services activities. Some Members therefore encouraged Korea to 
implement productivity -enhancing reforms; and further open up its market, especially to activities 
currently subject to foreign ownership ceilings.  
6.5.  Productivity gap also existed between the large business conglomerates and SMEs. In the 
discussion, some Members highlighted the need for Korea to provide appropriate support to SMEs, 
so that they could, inter alia, take advantage of new business opportunities resulting from bilateral 
and regional trade agreements.  
6.6.  In this connection, Members noted that Korea was rapidly expanding its network of 
preferential agreements, but they were at the same time pleased to see that Korea remained fully 
committed to the multilateral trading system. Many commended the country's constructive 
participation in various aspects of WTO work such as trade negotiation and the discussion on 
electronic commerce. The significant progress  that Korea had made in trade facilitation, including 
the ratification of the Trade Facilitation Agreement and the introduction of de minimis  customs 
clearance requirements for online purchases, was also widely acknowledged. So was Korea's good 
work in pro viding technical assistance to other WTO Members and contributing to the DDA Global 
Trust Fund.  
6.7.  Many Members recognized Korea's involvement in plurilateral initiatives, as a party to the 
revised Agreement on Government Procurement, and as participant in ot her ongoing negotiations, 
such as that on the Environmental Goods Agreement. Some Members hoped to see Korea 
implementing swiftly the recently concluded Information Technology Agreement. Some also 
expected more timely actions by Korea, both in the notifica tions of export subsidies and domestic 
support in agriculture; and in the certification and modification of its schedule of tariff 
commitments. Indeed, the tariff regime as a whole was highlighted by many Members as an issue 
of concern. They asked Korea to  simplify its customs tariff structure, reduce the rates, and phase 
out the less predictable flexible tariffs. Some Members also noted the substantial rise in 
anti-dumping initiations and encouraged Korea to exercise restraint.  WT/TPR/W/116  • Republic of Korea  
 
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  6.8.  Several Members encouraged Korea to continue harmonizing its industrial standards with 
international ones. Concern was expressed over continued discrepancies between the SPS 
legislation, multilateral provisions and international standards. Some Members noted the 
authorities' recent focus on food safety, citing for example the Special Act on Imported Food 
Safety Management, maximum residue limits, and the positive list system. They urged Korea to 
work constructively with all stakeholders in order to minimize potential disruptions to t rade.  
6.9.  Some trade measures were seen to be highly protective of the agricultural sector, which 
Korea was encouraged to liberalize and reform. Korea was also urged to ensure that its support to 
the fisheries sector did not undermine sustainability objective s or contribute to overcapacity and 
overfishing. Members looked forward to Korea taking a constructive stance in the negotiations on 
fisheries subsidies.  
6.10.   In the energy sector, SOEs continued to play a major role, and prices were often regulated. 
Some Memb ers welcomed Korea's decision to end support for coal production, i.e. fossil fuel 
subsidies, by 2020, thus reducing market distortions and improving the environment. They also 
enquired about the Government's plans to increase the supply of green energy. C ertain Members 
expressed concern about overcapacity in the shipbuilding market. They welcomed Korea's initiative 
to restructure the industry. Concerns were also raised regarding incentives available to other 
manufacturing activities.  
6.11.   During this review, Ko rea received over 700 advance written questions, and has already 
responded to most of them. In a month's time, Members should receive Korea's replies to the 
outstanding questions, which will then mark the successful conclusion of this TPR.  
6.12.   In his respondin g statement, Deputy Minister has not only addressed clearly all the key 
issues raised by Members, but he has also reassured Members that Korea places great value on its 
global trade relations and will continue to make efforts to enhance the multilateral tr ading system. 
I hope that the delegation will take home useful food for thought, which can help Korea further 
develop its trade and economic policies, so that come the next TPR, Korea can showcase the 
further progress it has made in achieving its economic and social objectives.  
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