WT/REG339/4  
23 August  2022 
(22-5727) Page: 1/26 
Committee on Regional Trade Agreements    
 
 
 
FACTUAL PRESENTATION  
AGREEMENT BETWEEN THE REPUBLIC OF KOREA AND  TÜRKIYE  
(SERVICES)  
Report by the Secretariat  
This report, prepared for the consideration of the Agreement between the Republic of 
Korea and  Türkiye , Services, has been drawn up by the WTO Secretariat on its own 
responsibility and in full consultation with the Parties. The factual presentation 
reproduces as closely as possible the terminology used in the Agreement and in the 
comments provided and does not imply official e ndorsement or acceptance by the 
Secretariat of such terminology. The report has been drawn up in accordance with the 
rules and procedures contained in the Decision for a Transparency Mechanism for 
Regional Trade Agreements (WT/L/671) and thus does not impl y any value judgement 
by the Secretariat regarding the contents of the Agreement.  
Any technical questions arising from this report may be addressed to 
Maria  Donner  Abreu (tel: +41 22 739 5244). Any statistical questions arising from this 
report may be addr essed to Pamela Bayona (tel: +41 22 739 5529).  
 
  WT/REG339/4  
 
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 Table of Contents  
Page 
 
1   TRADE ENVIRONMENT  ................................ ................................ ................................ . 4 
1.1   Trade in services and investment  ................................ ................................ ..................  4 
2   CHARACTERISTIC ELEMENTS OF THE AGREEMENT  ................................ ......................  7 
2.1   Background information  ................................ ................................ ...............................  7 
3   PROVISIONS ON TRADE IN SERVICES  ................................ ................................ .........  8 
3.1   Scope and definitions  ................................ ................................ ................................ ... 8 
3.2   Denial of benefits  ................................ ................................ ................................ ........  8 
3.3   General provisions on trade in services and investment  ................................ ....................  8 
3.3.1    Market access  ................................ ................................ ................................ ..........  8 
3.3.2    National treatment and MFN  ................................ ................................ .......................  9 
3.3.3    Commercial presence  ................................ ................................ ................................  9 
3.3.4    Performance requirements  ................................ ................................ .........................  9 
3.3.5    Senior Management and Boards of Directors  ................................ ................................  9 
3.3.6    Movement of natural persons  ................................ ................................ .................... 10 
3.4   Liberalization commitments  ................................ ................................ ......................... 11 
3.4.1    Korea  ................................ ................................ ................................ ..................... 11 
3.4.2    Türkiye  ................................ ................................ ................................ ................... 14 
3.4.3    Other measures on investment  ................................ ................................ .................. 17 
3.5   Regulatory provision s ................................ ................................ ................................ ..20 
3.5.1    Domestic regulation  ................................ ................................ ................................ .20 
3.5.2    Recognition  ................................ ................................ ................................ ............. 20 
3.5.3    Subsidies  ................................ ................................ ................................ ................ 20 
3.5.4    Safeguards  ................................ ................................ ................................ ............. 20 
3.5.5    Other  ................................ ................................ ................................ ..................... 21 
3.6   Sector specific provisions on trade in services  ................................ ................................ 21 
3.6.1    Telecommunications  ................................ ................................ ................................ .21 
3.6.2    Financial services  ................................ ................................ ................................ .....21 
3.6.3    Audiovisual  ................................ ................................ ................................ ............. 22 
4   GENERAL PROVISIONS OF THE AGREEMENT  ................................ .............................  22 
4.1   Transparency  ................................ ................................ ................................ ............. 22 
4.2   Current payments and capital movements  ................................ ................................ .....22 
4.3   Exceptions  ................................ ................................ ................................ ................. 22 
4.3.1    General exceptions  ................................ ................................ ................................ ..22 
4.3.2    Security exceptions  ................................ ................................ ................................ ..23 
4.3.3    Balance -of-payments safeguard provisions  ................................ ................................ .23 
4.4   Accession and withdrawal  ................................ ................................ ............................ 23 
4.5   Institutional framework  ................................ ................................ ............................... 23 
4.6   Dispute settlement  ................................ ................................ ................................ .....23 WT/REG339/4  
 
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 4.7   Relationship with other agreements concluded by the parties  ................................ ........... 23 
4.8   Government procurement  ................................ ................................ ............................ 25 
4.9   Intellectual property rights  ................................ ................................ .......................... 25 
4.10   Competition  ................................ ................................ ................................ ............. 25 
4.11   Environment  ................................ ................................ ................................ ............ 25 
4.12   Labour  ................................ ................................ ................................ .................... 25 
4.13   Electronic commerce  ................................ ................................ ................................ .26 
4.14   Small and medium -sized enterprises  ................................ ................................ ........... 26 
 
 
  WT/REG339/4  
 
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 Key Facts  
 
Parties to the Agreement:  Republic of  Korea1 and Türkiye  
 
Date of Signature:    26 February 2015  
 
Date of Entry into Force:  1 May 2018  
 
Date of Notification:   21 February 2022  
 
Full implementation:   1 May 2018  
1  TRADE ENVIRONMENT2 
1.1.  In 2020, Korea's GDP totalled USD 1,630.9 billion and that of  Türkiye  USD 719.5  billion . 
1.1  Trade in services and investment  
1.2.  In 2020 Korea was the world's 8th largest exporter and importer of commercial services 
(excluding intra -EU trade) while  Türkiye  ranked 17th for exports and 23rd for imp orts. 
1.3.  Chart 1.1 depicts Korea's and  Türkiye 's global trade in commercial services during 2011 -2020. 
In 2020, Korea's global exports amounted to USD 86.1 billion while its global imports were 
USD 101.6 billion. Throughout this period Korea has been a net im porter of services from the world  
with the deficit widening between 2014 and 2017, before narrowing . Conversely,  Türkiye  has been 
a net services exporter, with 2020 exports reaching USD 34.6 billion and imports USD 24.8 billion. 
Figures show a reduction in trade values in 2020 as compared to 2019 resulting from the COVID -19 
pandemic , with Turkish exports being the most affected , falling by  45%.  Türkiye 's global imports 
dropped by 8%, while for Korea the equivalent reductions were 12% and 19%.  
Chart 1.1 Korea and  Türkiye : Global trade in commercial services, 2011 -2020  
 
Source:  WTO Statistics database.  
 
1 Hereinafter referred to as "Korea".  
2 Statistics from WTO Statistics database and Trade Profile 2021.  Trade data on the basis of EU(28) . 
-60-40-20020406080100120140
Import Export Trade balance010203040506070Türkiye
(USD Billion)Korea
(USD Billion)WT/REG339/4  
 
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 1.4.  Chart 1.2 presents the Parties' structure of services trade by sector  averaged for the period 
2018-2020.  For Korea, other business services and transport account for the largest categories of 
traded services, while for  Türkiye  travel and transport services are the top two exported services, 
with transport and other business services being the leading import sectors.  
Chart 1.2 Korea and  Türkiye : Top commercial services trade with world, by category 
(Average 2018 -2020)  
 
Source:  WTO Statistics Database.  
1.5.  Chart 1.3 shows Korea's foreign direct investment (FDI ) with the world during 2010 -2020. 
Korea has been a net source of FDI, with outward flows representing on average more than three 
times inward flows. Net o utward stocks have therefore constantly increased during this period.  
Bilateral data shows that  Korea has similarly been a net source of FDI for Türkiye during 2015 -2017.  
0 10 20 30 40Maintenance & RepairPersonalInsuranceFinanceConstructionTelecommunications & ITManufacturingIntellectual PropertyTravelTransportOther Business ServicesKorea 
(USD Billion)
Import Export0 5 10 15 20 25ConstructionPersonalManufacturingMaintenance & RepairFinanceTelecommunications & ITIntellectual PropertyInsuranceTravelOther Business ServicesTransportTürkiye
(USD Billion)
Import ExportWT/REG339/4  
 
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 Chart 1.3 Korea: FDI stock and flow with Türkiye and the world  
 
Source: Korean authorities.  
1.6.  Chart 1. 4 shows that Türkiye  has remaine d a net recipient of FDI stocks and flows from the 
world over the period 201 0-2020. Outward flows represent ed on average more than four times 
inward flows.  As regards bilateral FDI, Türkiye has been a net recipient of FDI from Korea and 
showed a similar tr end with world statistics throughout the same period. Türkiye 's inflow of FDI from 
Korea has occurred approximately more than three times in comparison to outflow . 
Chart 1.4 Türkiye : FDI  stock and flow with  Korea and  the world (2010 -2020)  
 
Source:  UNCTAD.  
0100200300400500600700800
2015 2016 2017FDI bilateral flow with Türkiye
2015 -2017
(USD Million)0100200300400500600
2010 2012 2014 2016 2018 2020FDI stock with the world
2010 -2020
(USD Billion)
05101520253035404550
2010 2012 2014 2016 2018 2020FDI flow with the world
2010 -2020
(USD Billion)
02004006008001,0001,2001,400
2015 2016 2017FDI bilateral stock with Türkiye
2015 -2017
(USD Million)
Inward Outward
050100150200250FDI stock with the world 
2010 -2020
(USD Billion)
Inward Outward
02468101214161820FDI flow with the world
2010 -2020
(USD Billion)
Inward OutwardWT/REG339/4  
 
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 2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT  
2.1  Background information  
2.1.  The Agreement on Trade in Services under the Framework Agreement Establishing a Free Trade 
Area between the Korea  and Türkiye  (hereafter "the Agreement" and "the  Framework  Agreement", 
respectively) was signed on 26 February 2015 and entered into force on 1 May 2018. On 21 February 
2022 t he Parties notified the Agreement to the WTO under  Article V of GATS as an agreement 
establishing a free trade area. The Parties simultaneously signed the Agreement on Investment 
under the Framework Agreement, which aims at protecting and promoting investment between the 
Parties, and which entered into force at the same day as the services agreement.  
2.2.  As specified in the Framework Agreement, the Parties ' bilateral trade relations are governed 
by an evolving architecture. All legal instruments specifically foreseen in the Framework Agreement 
are now in force  – namely the Framework Agreement it self and the agreements on trade in goods, 
services and on investment.3 The trade in goods agreement was previously notified to the WTO and 
considered in the Committee on Regional Trade Agreements  in 2014 .4 Other agreements, including 
on government procu rement, may also be concluded between the Parties.  As of July 2022, no 
additional agreement was being negotiated.   
2.3.  The Agreement contains three Chapters and four Annexes; the investment agreement is 
composed of five Sections and five Annexes. Boxes 2.1 and  2.2 provide the structure of both 
Agreements.  
Box 2.1 Korea - Türkiye  Services Agreement  
 
PREAMBLE   
Chapter 1  Trade in Services   
Chapter 2  Electronic Commerce   
Chapter 3  Final Provisions   
Annexes   
Annex A  Temporary Movement of Natural Persons  for the Purpose of Supplying Services  
Annex B  Telecommunications Services  
Annex C  Financial Services  
Annex D  Schedule of Specific Commitments (T ürkiye  and Korea)  
Box 2.2 Korea - Türkiye  Investment Agreement  
Section A  Definitions  
Section B  Investment  
Section C  Settlement of Disputes between an Investor and the Disputing Party  
Section D  Exceptions  
Section E  Final Provisions  
Annexes   
Annex A  Customary International Law  
Annex B  Expropriation  
Annex C  Temporary Safeguard Measures  
Annex I  Non-Conforming Measures (Türkiye  and Korea)  
Annex II  Non-Conforming Measures (Türkiye  and Korea)  
 
 
3 The goal under the Framework Agreement was to conclude the services and investment negotiations 
within one year from the entry into force of the goods agreement.  
4 The Agreement on Trade in Goods, in force since 1 May 2013, was notified to the WTO at that same 
date under Article  XXIV:7(a) of GATT 1994. The Agreement was considered in the CRTA on 8 April 2014. All 
relevant documents can be found in the series WT/REG339.  WT/REG339/4  
 
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 2.4.  The services and investment Agreements are under the umbrella of the Framework Agreement. 
The Factual Presentation on the Free Trade Agreement between the Republic of Korea and  Türkiye , 
Goods , distributed under WT/REG339/1/Rev.1 (hereafter referred to as t he Factual Presentation, 
goods), explains in detail the functioning, rules and regulations of the Framework Agreement. A full 
understanding of the services elements of Korea and  Türkiye  relations, dealt with in the current 
Factual Presentation, will therefore benefit from a joint consideration of both documents.  
3  PROVISIONS ON TRADE IN SERVICES  
3.1  Scope and definitions  
3.1.  The Agreement on Services closely follows the GATS approach. It covers t rade in all four modes 
of supply, as defined under the GATS. Mode 4 is additionally regulated by Annex A. Sector -specific 
disciplines on telecommunications and financial services are included in Annexes  B and C, 
respectively.  
3.2.  Chapter 1 applies to measures  adopted or maintained by a Party affecting trade in services 
supplied by suppliers from the other Party under all four modes of supply. Sectoral coverage mirrors 
that of the GATS, including for air transport services. National maritime cabotage is exclude d. As in 
the GATS, disciplines apply at all levels of government as well as to their delegated non -
governmental bodies, while s ervices supplied in the exercise of governmental authority, government 
procurement, subsidies and grants as well as measures affe cting citizenship, nationality, residence 
and permanent employment of natural persons are carved out.  
3.3.  The Agreement on Investment , which replaced the 1991 bilateral investment agreement,  
regulates investment beyond GATS mode 3, and concerns measures adopt ed or maintained by a 
Party relating to investors of the other Party (including State enterprises) and their covered 
investments (Article 1. 2 of the Investmen t Agreement ).5 In case of inconsistency between it and 
another agreement under the Framework Agre ement, including the Services Agreement, the other 
Agreement shall prevail (Article  1.3 of the Investmen t Agreement ).  
3.4.  The d efinitions used are the same as in  Article 1.3 of the Framework Agreement (paragraph  2 
of Article 1.2  and Article  1.1 of the Investm ent Agreement ); they generally follow those under the 
GATS, unless otherwise specified in this Section.  
3.2  Denial of benefits  
3.5.  A Party may deny the benefits of the Agreement and the Investment Agreement (Article  1.15 
of both Agreements) to the other Party's service supplier/investor (and its investment) that is a 
juridical person of the other Party if:  
a. it has no substantial business activities in the territory of the other Party; and  
b. persons of a non -party, or of  the denying Party, own or control the juridical person.  
3.6.  To the extent practicable prior notification is to be made and consultations are to be organized 
upon request.  
3.3  General provisions on trade in services  and investment  
3.3.1   Market access  
3.7.  The market access provision of the Agreement (Article 1.4) mirrors that of GATS  Article  XVI. 
 
5 Disciplines on performance requirements and envir onmental and health measures apply to all 
investments in the territory of a Party.  WT/REG339/4  
 
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 3.3.2   National treatment and MFN  
3.8.  The national treatment provision of the Agreement (Article 1.5) mirrors that of 
GATS  Article  XVII. 6 
3.9.  The Agreement's provision on MFN treatment (Article 1.7) mirrors that of GATS Article II.  
3.10.   GATS exceptions for economic integration agreements notified under GATS Articles  V 
and V bis are also incorporated in the Agreement. In case any such agreement is concluded with a 
non-Party after the entry into force of the Agreement, an MFN clause foresees that the other Party 
may request consultations aiming at incorporating any additional liberalization agreed under the 
other instrument.  In particular, if  Türkiye  concludes an agreement using a negative list ap proach, 
Korea may request the launch of negotiations with the aim of converting the Agreement and the 
Investment Agreement into negative -list agreements.7 Upon this request , negotiations shall 
commence.  As of July 2022, no such request  had been made.  
3.11.   The MFN provision does not apply to agreements on taxation or on recognition of 
qualifications.  
3.3.3   Commercial presence  
3.12.   The Agreement has no specific provision on commercial presence per se  beyond its definition 
– which mirrors that of the GATS.   
3.13.   The Investment Ag reement does not have a provision prohibiting the requirement for local 
presence, which is generally included in negative -list agreements.  
3.3.4   Performance requirements  
3.14.   Disciplines on performance requirements (Article 1.8  of the Investmen t Agreement ) apply to 
all investments in the territory of a Party. They prohibit the following investment -related 
performance requirements:  
a. export, local content, trade and foreign exchange balancing, technology transfer or 
requirements, market reserve policy in connection wit h the establishment, acquisition, 
expansion, management, conduct, operation or sale or other disposition of an 
investment; and  
b. local content, trade and foreign exchange balancing and export requirements, with 
respect to the granting of an advantage to the investment.  
3.15.   Local content and transfer of technology requirements as well as environmental measures 
may be imposed if th ey fall under some GATS Article XIV -type exceptions, provided some conditions 
– that they do not constitute an unjustifiable discrimina tion nor a disguised restriction – are met.  
3.3.5   Senior Management and Boards of Directors  
3.16.   The Parties cannot impose nationality requirements for senior management positions of a 
company that is a covered investment, but can require that a majority of its board of directors, or 
any committee thereof,  be of a particular nationality, or resident i n the territory of the Party, 
provided that the requirement does not materially impair the ability of the investor to exercise 
control over its investment (Article 1.9  of the Investmen t Agreement ). 
3.17.   Measures listed in the Parties' schedules , government proc urement and subsidies or grants 
are not subject to th is discipline.  
 
6 The Investment Agreement also contains national treatment and MFN provisions. See Section  3.3.7.  
7 The Agreement on Investment was already concluded as a negative -list agr eement . WT/REG339/4  
 
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 3.3.6   Movement of natural persons  
3.18.   Annex A of the Agreement ("Temporary Movement of Natural Persons for the purpose of 
Supplying Services ") builds on the GATS Annex. The scope of , and principles used , in both 
agreements are similar.8  
3.19.   Temporary entry and stay are granted for the following categories of natural persons (defined 
in Section 2 of the Annex) in sectors listed in the Agreement's s chedules:  
a. key personnel - consisting of intra -corporate transfers (ICTs) and business visitors - 
and graduate trainees (Section 3 of Annex A). Korea does not allow graduate trainees 
in a number of sectors, as indicated in its Schedule – e.g. in various pro fessional, 
telecommunications, distribution, educational services, etc.;  
b. business service sellers (Section 4 of Annex A); and  
c. contractual services suppliers and independent professionals (Section 5 of Annex A).  
3.20.   The Annex clarifies that the Parties may requ ire a visa or equivalent prior to temporary entry.  
3.21.   Table 3.1 below summarizes the categories and lengths of stay for the presence of natural 
persons u nder the Agreement and the GATS  for both Parties , which only  apply to sectors listed in 
Parties ' Schedule s and in accordance with any limitation that may be included therein . The Parties' 
domestic legislation is also of relevance in particular as regards e xtension of the authorized length 
of stay. Compared to the GATS, the major improvement in mode 4 under the Agreement relates to 
commitments undertaken in the new category of graduate s. 
Table 3.1 Korea and  Türkiye : Comparison of categories and length of stay for temporary 
presence of natural persons under the Agreement and the GATS  
Category  Maximum length of stay  
Agreement  GATS  
Korea  
ICTs (Key personnel)  1 year, extendable  3 years, extendable  
Graduate trainees  1 year, extendable  None 
Business visitors (Key personnel)  90 days  90 days  
Business services sellers  90 days  90 days  
Contractual services suppliers & 
Independent professionals  To be negotiated within five years from 
entry into force. As of July 2022, no 
development has taken place.   None 
 Türkiye   
ICTs (Key personnel)  1 year, extendable  2 years  
Graduate trainees  1 year, extendable  None 
Business visitors (Key personnel)  90 days, subject to changes in legislation  30 days  
Business services sellers  90 days  30 days  
Contractual services suppliers & 
Independent professionals  To be negotiated within five years from 
entry into force . As of July 2022, no  
development has taken place.  None 
Source:  Annex A to the Agreement and Parties' Draft Consolidated GATS Schedule of Specific Commitments.  
3.22.   The Parties are required to publish their immigration formalities and to establish appropriate 
contact points. Upon request by an applicant information shall be provided on the status of the 
application ; the applicant shall also be promptly informed of the  outcome of the application. The 
Parties agree to process expeditiously applications for entry and temporary stay.  
 
8 E.g. access to employment market and right of residence is carved out, and the right of entry for 
natural persons of the other Party, including by establishing eligibility requirements, is authorized provided 
they are not applied in a manner that  nullifies or impairs the Agreement's benefits.  WT/REG339/4  
 
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 3.23.   Sector-specific improvement s by the Parties are in some instances highlighted in Section  3.4    
3.4  Liberalization commitments  
3.24.   As in the GATS, liberalization commitments follow a positive list approach (Article  1.6). Parties 
are to review their commitments every two years with the aim of incre asing liberalization 
(Article  1.14), with the first review not later than three years from entry into force – that is by 
April 2021. As of July 2022, such review had not taken place.  
3.25.   As indicated in the Section above, measures under the Investment Agreemen t follow a 
negative -list approach. They go beyond GATS mode 3, but may also limit a Party access to the other 
Party markets. Therefore, a complete picture of market access requires an analysis of commitments 
and limitations under both the Services and the Investment Agreements.  
3.26.   The Parties' Schedules do not contain measures such as qualification and licensing 
requirements when these do not qualify as market access or national treatment limitations.  
3.4.1   Korea  
3.27.   The number and scope of Korea's horizontal reservatio ns under the Agreement represent an 
improvement in liberalization if compared to the GATS regime. The scope of GATS mode 3 limitation 
on the acquisition of outstanding stocks and bonds of existing domestic companies has been reduced 
under the Agreement to only apply to the areas of aviation and energy. Limitations on the acquisition 
of bonds, need for approval for the establishment of branches, minimum threshold for FDI and 
subsidies9 eligibility have been lifted. Limitations on land acquisition have been maintained under 
the same terms as the GATS.  
3.28.   Sectoral commitments under the Agreement and the GATS (modes 1 -3 horizontal 
reservations are excluded) are presented in  Table 3. 2, and further developed it the paragraphs that 
follow.  
Table 3.2 Korea: Comparison between the GATS and Agreement specific commitments 
(modes 1 -3) 
Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Services  
Commitments  Limitations on 
Investment 
beyond  
mode 3a 
1. Business services      
A. Professional  Services  Partial  Improved  Partial   
B. Computer  and Related  Services  Full Same Full  
C. Research  and Development  Services  Partial  Improved  Partial   
D. Real Estate  Services  --- New Partial   
E. Rental/Leasing  Services  without  Operators  Partial  Improved  Partial   
F. Other  Business  Services  Partial  Improved  Partial  I.1-4, II.2, II.5, 
II.8, II.10 -13 
2. Communication services      
A. Postal  services  --- Same  ---  
B. Courier  services  --- New Partial   
C. Telecommunication  services  Partial  Improved  Partial   
D. Audiovisual  services  Partial  Same  Partial   
E. Other  --- Same  ---  
 
9 Subsides eligibility are in any way already carved out from the Agreement.  WT/REG339/4  
 
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 Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Services  
Commitments  Limitations on 
Investment 
beyond  
mode 3a 
3. Construction services  
A. General construction work for buildings  Partial  Improved  Partial   
B. General construction work for civil 
engineering  Partial  Improved  Partial   
C. Installation and assembly work  Partial  Improved  Partial   
D. Building completion and finishing work  Partial  Improved  Partial   
E. Other  Partial  Improved  Partial   
4. Distribution services      
A. Commission  agents'  services  Partial  Improved  Partial  II.9 
B. Wholesale  trade services  Partial  Improved  Partial  I.3-4, II.5, 
II.10-12 
C. Retailing  services  Partial  Improved  Partial  II.5 
D. Franchising  Partial  Improved  Full  
E. Other  --- Same  ---  
5. Education services      
A. Primary education services  --- Same  ---  
B. Secondary education services  --- Same  ---  
C. Higher education services  --- Improved  Partial   
D. Adult education  --- Improved  Partial   
E. Other education services  --- Same  ---  
6. Environmental services      
A. Sewage services  Partial  Improved  Partial   
B. Refuse disposal services  Partial  Improved  Partial  II.8, II.10  
C. Sanitation and similar services  --- Same  ---  
D. Other  --- New Partial   
7. Financial services     
A. All insurance  and insurance -related  services  Partial  Improved  Partial   
B. Banking  and other  financial  services  Partial  Improved  Partial   
C. Other  --- Same  ---  
8. Health related and social services      
A. Hospital services  --- Same  ---  
B. Other Human Health Services  --- Same  ---  
C. Social Services  --- Same  ---  
D. Other  --- Same  ---  
9. Tourism and travel related services      
A. Hotels  and restaurants (including catering)  Partial  Improved  Partial   
B. Travel  agencies  and tour operators   
services  Full Same  Full  
C. Tourist  guides  services  Partial  Improved  Full  
D. Other  --- Same  ---  
10. Recreational and cultural and sporting services  
A. Entertainment  services  --- Improved  Partial   
B. News agency services  --- Same  ---  
C. Libraries, archives, museums and other 
cultural services  --- Same  ---  
D. Sporting and other recreational services  --- Same  ---  
E. Other  --- Same  ---  
11. Transport services      
A. Maritime Transport Services  Partial  Improved  Partial   
B. Internal Waterways Transport services  --- Same  ---  
C. Air Transport  Services  Partial  Improved  Full  
D. Space  Transport services  --- Same  ---  
E. Rail  Transport  Services  --- New Partial   WT/REG339/4  
 
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 Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Services  
Commitments  Limitations on 
Investment 
beyond  
mode 3a 
F. Road  Transport  Services  Partial  Same  Partial   
G. Pipeline  Transport services  --- New Partial  II.12 
H. Services  auxiliary  to all modes  of transport  Partial  Improved  Partial  II.5 
I. Other  Transport  Services  Partial  Improved  Partial   
12. Other services n.i.e.  --- Same  ---  
a  Number of the reservation in Table 3. 4. 
Note:   Horizontal reservations and Mode 4 commitments/limitations not included (except for investment  
 limitations beyond mode 3).  
Definitions:  Full: Commitments not subject to any sector -specific limitation, and all sub -sectors covered.  
  Improved: Overall improved commitm ents under the Agreement compared to those under  the 
GATS.  
  New: Committed under the Agreement but not under the GATS.  
  n.i.e.: Not included elsewhere.  
  Partial: Commitments subject to one or more sector -specific limitation, or not all sub -sectors  
covered. 
  Same: Commitments under the Agreement are the same as under the GATS.  
  ---: No commitment.  
Source:  As table above.  
3.29.   Fully liberalized sectors are computer and related services; rental/leasing services without 
operators except that of aircrafts; franchising; travel agencies and tour operator services; tourist 
guides services, and air transport services in accordance with the Agreement's scope.  
3.30.   Sectors closed to services suppliers from all sources and in the Agreement  are postal services ; 
other communication services; other distribution services; primary, secondary and other education 
services; sanitation and similar services; health and social services; recreational and cultural and 
sporting services except entertainment services; intern al waterways; and space transport services; 
and other services n.i.e.  
3.31.   Liberalization of business services is improved under the Agreement as compared to the 
GATS. Some professional services have been opened up for  Türkiye  – legal services, auditing, and 
veterinary services, though they remain subject to limitations, including commercial presence for 
legal services. Commitments in research and development (R&D) have been extended to cover all 
areas, with mode 3 remaining generally unbound. Rental/leasing ser vices of ships without operators 
is fully liberalized. A number of other business services such as services incidental to mining and 
packaging services are further liberalized, with either modes 1 -2 (unbound under the GATS) 
becoming free or sub -sectors being added – e.g. specialty design services. On mode  4, liberalization 
commitments provide for a one -year entry for certified public accountants employed b y international 
accounting firms and for facilitated recognition for foreign architects.  
3.32.   Under communications services, Korea has added partial commitments on courier services, 
uncommitted in its GATS schedule. The foreign equity limit ation applicable to getting a radio licence 
is increased from 33% under the GATS to 49% under the Agreement. Korea has added commitments 
in internet access services and voice over internet services, not present in its GATS schedule.  
3.33.   In construction and related engineering se rvices, modes 2 and 3 are fully liberalized following 
the lifting of GATS limitations  on licensing, contract amounts and compulsory subcontracting. No 
change occurs in mode 1, which is unbound except for site investigation work services.  
3.34.   In distribution s ervices, compared to the GATS , covered sectors were fully liberalized for mode 
2. The wholesale of raw milk , wholesale conducted in trade centres , markets  and stores of more 
than 3, 000m2 as well as foreign trade services have been liberalized . On retailing  services, the GATS 
prohibition of department stores and shopping centres has been lifted. Distribution of 
pharmaceuticals and medical goods, functional foods, closed under the GATS, and items limited 
under mode 3 are however unbound for mode 1.  WT/REG339/4  
 
- 14 - 
 
 3.35.   Education  services, uncommitted by Korea under the GATS, have been partially liberalized for 
higher and adult education services. The types of authorized education institutions are listed in 
Attachments I and II to Annex D.  
3.36.   In environmental services, mode 3 restri ctions under the GATS in sewage services, refuse 
disposal services and environment testing and assessment services have been removed. Various 
other sub -sectors classified under "other" have been fully liberalized – e.g. cleaning services of 
exhaust gases, noise abatement services.  
3.37.   In financial services, Korea has removed a restriction on joint ventures  for insurance services 
and securities business , which are present in its GATS schedule, Under the Agreement, Korea has 
increased the equity ceiling (from 4% under the GATS to 10%)  for a number of banking services , 
and added commitments under trading for own account, participation in issues of all kinds of 
securities and asset management.  
3.38.   In tourism and travel related services, Korea has liberalized beverage se rving services without 
entertainment in hotels and restaurants and eliminated GATS restrictions regarding tourist guide 
services. Recreational, cultural and sporting services, uncommitted in Korea's GATS Schedule, have 
been partially liberalized for entert ainment services.  
3.39.   In transport services, Korea has increased the scope of maritime transport services open for 
Türkiye , as compared to the GATS, with the addition of rental of vessels with crew, pushing and 
towing services and tally, measuring and survey s ervices. Further, joint venture limitations on 
services auxiliary to maritime transport have been lifted. All air transport services within  the scope 
of the Agreement have been fully liberalized. Commitments in rail transport services and pipeline 
transpor t, uncommitted under the GATS, have been made under the Agreement. Commitments in 
freight forwarding for rail transport have been improved under the Agreement with the lifting of 
mode 3 limitations..  
3.4.2    Türkiye  
3.40.   The GATS horizontal limitation on real estate acquisition is maintained under the Agreement, 
although the language  is changed . Some of the State monopolies listed under the GATS - postal 
services, railways, lotteries in cash, football pools and public util ities – are maintained under the 
Agreement, while monopolies for two sectors – telecommunications and administration of harbour 
and quay – are abolished. The GATS horizontal limitations applying to FDI above USD  50,000 and 
to foreign -owned enterprises or j oint ventures pursuing a new line of business or aiming for a 
participation/takeover of existing enterprises have been lifted, but some of their requirements are 
listed in certain sector -specific commitments. Three new restrictions on mode 3 are listed. Fi rst, the 
establishment of a branch of an enterprise headquartered abroad requires the appointment of a 
representative who is a natural person  domicile d in Türkiye . Second, liaison offices established in  
Türkiye  by foreign enterprises cannot engage in comme rcial activities in  Türkiye . Finally, the 
establishment of foundations, trusts, associations and any other non -profit organization is unbound.  
3.41.   Sectoral commitments under the Agreement and the GATS (modes 1 -3 horizontal 
reservations excluded) are presented  in Table 3.3  and further developed i n the paragraphs that 
follow.  
Table 3.3 Türkiye : Comparison between the GATS and Agreement specific commitments 
(modes 1 -3) 
Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Services  
Commitments  Limitations on 
Investment 
beyond  
mode 3a 
1. Business services      
A. Professional  Services  Partial  Improved  Partial   
B. Computer  and Related  Services  Partial  Improved Partial   
C. Research  and Development  Services  --- New Partial   
D. Real  Estate  Services  --- Same  ---  WT/REG339/4  
 
- 15 - 
 
 Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Services  
Commitments  Limitations on 
Investment 
beyond  
mode 3a 
E. Rental/Leasing  Services  without  Operators  --- New Partial   
F. Other  Business  Services  Partial  Improved  Partial  I.3-7; II. 4,  
II.7-15 
2. Communication services      
A. Postal  services  Partial  Same  Partial   
B. Courier  services  Partialb Same  Partial   
C. Telecommunication  services  Partial  Improved  Partial   
D. Audiovisual  services  --- New Partial   
E. Other  --- Same  ---  
3. Construction services  
A. General construction work for buildings  Partial  Improved  Full  
B. General construction work for civil 
engineering  Partial  Improved  Full  
C. Installation and assembly work  Partial  Improved  Full  
D. Building completion and finishing work  Partial  Improved  Full  
E. Other  --- New Partial   
4. Distribution services      
All sub -sectors A -E  --- Same  ---  
5. Education services      
A. Primary education services  Partial  Same  Partial   
B. Secondary education services  Partial  Same  Partial   
C. Higher education services  Partial  Same  Partial   
D. Adult education  --- Same  ---  
E. Other education services  Partial  Improved  Partial   
6. Environmental services      
A. Sewage services  Partial  Same  Partial   
B. Refuse disposal services  Partial  Same  Partial  II.4 
C. Sanitation and similar services  Partial  Same  Partial   
D. Other  --- New Partial   
7. Financial services     
A. All insurance  and insurance -related  services  Partial  Improved  Partial   
B. Banking  and other  financial  services  Partial  Improved  Partial   
C. Other  --- Same  ---  
8. Health related and social services      
A. Hospital services  Partial  Same  Partial   
B. Other Human Health Services  --- Same  ---  
C. Social Services  --- Same  ---  
D. Other  --- Same  ---  
9. Tourism and travel related services      
A. Hotels  and restaurants (including catering)  Partial  Same  Partial   
B. Travel  agencies  and tour operators   
services  Partial  Improved  Partial   
C. Tourist  guides  services  --- Same  ---  
D. Other  --- Same  ---  
10. Recreational and cultural and sporting services  
A. Entertainment  services  --- Improved  Partial   
B. News agency services  --- Same  ---  
C. Libraries, archives, museums and other 
cultural services  --- Same  ---  
D. Sporting and other recreational services  --- Same  ---  
E. Other  --- Same  ---  WT/REG339/4  
 
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 Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Services  
Commitments  Limitations on 
Investment 
beyond  
mode 3a 
11. Transport services      
A. Maritime Transport Services  Partial  Improvedc Partial  II.6 
B. Internal Waterways Transport services  --- Same  ---  
C. Air  Transport  Services  Partial  Same  Partial  II.6 
D. Space  Transport services  --- Same  ---  
E. Rail  Transport  Services  Partial  Same  Partial  II.6 
F. Road  Transport  Services  Partial  Same  Partial  II.6 
G. Pipeline  Transport services  --- Same  ---  
H. Services  auxiliary  to all modes  of transport  --- Same  --- II.6 
I. Other  Transport  Services  --- Same  ---  
12. Other services n.i.e.  --- Same  ---  
a Number of the reservation under Table 3. 5. 
b For the sake of comparison, the relevant horizontal reservation has been incorporated in this table.  
c Improved for passenger and freight transportation but less liberalization for maintenance and repair 
of vessels.  
Note:  Abbreviations in accordance with those of Table 3. 2. 
Source:  Draft Consolidated GATS Schedule of Specific Commitments (S/DCS/W/TUR/Rev.1) and  Türkiye 's 
Schedules annexed to the Agreement.  
3.42.   The only fully liberalized sectors are under construction services, where all sub -sectors except 
"other" are free for Korean servic es suppliers.  
3.43.   The following services sectors remain close d to services suppliers from Korea  under the 
Agreement : real estate services; other communication services; distribution services; adult 
education services; other health related and social services except hospital services; tourist guides 
services; other tourism and travel related services; recreational and cultural and sporting services 
except entertainment services;  and internal waterways,  space, pipeline, and other transport 
services; services aux iliary to all modes of transport; and other services n.i.e.  
3.44.   Compared to the GATS,  Türkiye 's commitments in professional services under the Agreement 
are improved in terms of scope – with the addition of integrated engineering (fully liberalized) and 
veteri nary services – free for mode 2 but subject to nationality requirements. In accounting and 
auditing, the GATS limitation that foreign advisers cannot certify the accounts is lifted  subject to 
reciprocity . The scope of commitments in computer and related se rvices has been increased with 
the full liberalization of training services for staff of clients (under "other"). R&D services in the 
natural sciences and rental/leasing services without operators (of other transport and machinery 
equipment), not committed  under the GATS, have been partially liberalized. The Agreement also 
improve s the liberalization of other business services, both by adding committed sectors such as 
technical testing and printing , as well as by improving liberalization of sectors committe d under the 
GATS - on services incidental to hunting and to mining. Under both the GATS and the Agreement a 
mode 4 limitation reserves a number of professional services only to Turkish citizens , but directors 
of travel agencies and opticians10 have been opened up to Korean nationals . For 15 other professions 
(e.g. doctors, directors of newspapers, accountants, lawyers practicing in Courts) remain  reserved 
for Turkish nationals.  
3.45.   Compared to the GATS, the Agreement brought no additional liberali zation of postal services 
which remains subject to a public monopoly for letters and postcards. Also no additional liberalization 
occurs in courier services – free for modes 1 and 2 but subject to the same  establishment restrictions 
(under the GATS horizon tal reservation). In telecommunication services, the requirement in the 
GATS of a minimum equity of 51% by Turkish citizens has been lifted , but establishment is only 
authorized in the form of a joint -stock or limited liability company. The coverage of "ot her 
telecommunication services" has been increased  to also  includ e transmission of cable broadcasting 
signals. All sub -sectors of audiovisual services excluding broadcasting, not committed under the 
 
10 No sectoral commitment is however undertaken as regards optician services.  WT/REG339/4  
 
- 17 - 
 
 GATS, have been liberalized for modes 1 -3, except that mo de 1 for two subsectors requires 
commercial presence.  
3.46.   The only limitation applying to construction services, partially committed under GATS, 
concerns mode 1 in the sub -sector "other", thus significantly increasing liberalization.  
3.47.   In education services, the level of liberalization under modes 1 -3 remain s the same under the 
Agreement and the GATS, while mode 4 is further liberalized. Under the Agreement, t he GATS 
conditional authorization for foreign teachers to work in primary and secondary educ ational 
institutions has been extended to also apply to  foreign experts and to non-formal educational 
institutions – namely language teaching and vocational training centres.  
3.48.   In environmental services, partially committed under the GATS, improve ments were made  
with partial liberalization in two additional sub -sectors under "other", namely cleaning services of 
exhaust gases and noise abatement services.  
3.49.   Under the GATS,  Türkiye  has made commitments in accordance with the 
WTO's  Understanding on Commitments in Financial Services (hereafter "the Understanding") in a 
number of subsectors of banking and insurance services. Under the Agreement, some of the GATS 
mode 3 horizontal limitations in insurance and reinsurance as well as the securities markets have 
been lib eralized. For example, while authorization for the establishment of a foreign bank and the 
opening of its first branch is still required, that is no  longer  the case for the establishment of 
additional branches. Sectoral commitments have been extended to sub -sectors not covered under 
the GATS, e.g.  full liberalization of mode 1 of life insurance, insurance of Turkish ships and yachts 
(both unbound under the GATS), and reinsurance and retrocession.  
3.50.   In health related and social services, commitm ents under the Agreement and the GATS are 
the same, only providing for the partial liberalization of private hospital services. In tourism and 
travel related services, commitments in hotel and restaurants are the same under both the GATS 
and the Agreement.  For travel agencies and tour operator services,  establishment limitations in the 
GATS have been lifted and mode 3 is thus fully liberalized . The sub -sector remains , however , only 
partially liberalized since a national treatment limitation under mode 1 pro hibits foreign travel 
agencies from organiz ing tours abroad. Under recreational, cultural and sporting services, not 
committed under the GATS, the Agreement liberalizes some theatre and live band entertainment 
services, which are free for modes 2 and 3 but  unbound for mode 1.  
3.51.   Türkiye  has partial commitments in maritime, air, rail and road transport under both the GATS 
and the Agreement. In maritime transport, the Agreement eliminates the GATS national treatment 
limitations for passenger and freight transpor tation. Maintenance and repair of vessels, however, 
are more restricted under the Agreement since modes 1 and 2 are unbound while under the GATS 
they are free. In air, rail and road transport, the Agreement brings no additional liberalization 
compared to t he GATS, with rail transportation being subject to a public monopoly and road 
transportation limiting mode 3 to Turkish nationals or to legal entities established under Turkish law.  
3.4.3   Other measures on investment  
3.52.   The Agreement on Investment, which sets out d isciplines going beyond GATS mode 3 -related 
disciplines, consists of five sections; Definitions (Section  A), Investment (Section  B), Settlement of 
Disputes between an Investor and the Disputing Party (ISDS, Section  C), Exceptions (Section  D) 
and Final Prov isions (Section  E). Separate annexes on Customary International Law (Annex  A), 
Expropriation (Annex  B), Temporary Safeguard Measures (Annex  C), schedules of  Türkiye  and Korea 
(Annex  I and Annex  II) complements the Agreement. These disciplines guarantee e.g . the 
application of generally accepted international legal standards regarding the minimum standard of 
treatment; treatment in case of armed conflict or civil strife; expropriation and compensation; and 
subrogation.  
3.53.   Disciplines relating to minimum standa rd of treatment, compensation for losses, transfers, 
expropriation and compensation, subrogation, ISDS and duration apply, mutatis mutandis , to mode 
3-related measures only to the extent that they relate to a covered investment. ISDS can only be 
invoked in  case of an alleged breach of these obligations (except "duration") (paragraph  6 of 
Article  1.2 of the Investmen t Agreement  and its footnote).  WT/REG339/4  
 
- 18 - 
 
 3.54.   The Investment Agreement also contains provisions on national treatment, MFN provisions 
and transfers, which appl y the services disciplines, mutatis mutandis , to investment. Disciplines on 
performance requirements as well as on environmental and health measures apply to all investments 
in the territory of a Party (paragraph 1 of Article 1.2  of the Investmen t Agreement ).  
3.55.   A negative list approach is used in the Investment Agreement whereby national treatment, 
MFN, performance requirement and senior management and board of directors obligations do not 
apply to those sectors and sub -sectors listed in Annexes I (e xisting measures) and II (any future 
measure) to that Agreement (Article 1.10  of the Investmen t Agreement ).  
3.56.   A number of Annex II reservations, carving out all related services sectors from the disciplines 
of the Agreement, are common to both Parties. Some  of these exclusions are not reflected in the 
GATS schedules, since their scope may go beyond GATS mode 3. These are the following:  
a. measures with respect to the defense industry;  
b. an MFN grandfather clause for international agreements in force at, or signe d prior to, 
the conclusion of the Agreement;  
c. measures with respect to firearms, swords, explosives, munitions, war materials and 
similar items, including e.g. the manufacture, use, sale, storage, transport, import, 
export, and possession;  
d. disadvantaged gro ups, for which  the Parties may adopt or maintain any measure that 
grants rights or preferences.  
In addition, a number of other reservations concern the same issues but the scope of disciplines 
waived from is different (e.g. public order, energy) . 
3.57.   For Korea  specifically, horizontal limitations on investment beyond mode 3 also include 
e.g. maintenance of public order,11 future privatization of state-owned enterprises ( SOEs) and 
energy -related investment. The MFN reservation for international agreements is ext ended to also 
carve out any existing or future agreement covering aviation, fisheries and maritime matters. All 
restrictions on investment, either horizontal or sector -specific, are summarized in Table  3.4 below .  
Table 3.4 Korea: Investment reservations beyond Mode 3, Annexes I and II  
No. Subject  Reservation  
NT MFN PR SMBD  
Annex I  
1 Agriculture and livestock - rice, barley, cattle      
2 Manufacturing of biological products (blood)      
3 Energy industry - electric power      
4 Energy industry – gas industry      
Annex II  
1 Maintenance of public order      
2 Defense industry      
3 Privatization of SOEs and public services      
4 Land acquisition      
5 Firearms, swords, explosives, and similar items      
6 Disadvantaged groups      
7 International agreements       
8 Measures relating to recycling      
9 Low-emission motor vehicles      
10 Atomic Energy Industry      
 
11 Article 1.19 of the Agreement and GATS Articles XIV and XIV bis are of relevance . WT/REG339/4  
 
- 19 - 
 
 No. Subject  Reservation  
NT MFN PR SMBD  
11 Energy industry - electric power      
12 Energy industry - gas industry      
13 Fishing      
MFN Most-favoured nation.  
NT National treatment.  
PR Performance requirements  
SMBD  Senior managers and Board of directors.  
Note:  Reservations to the Agreement's specific disciplines are indicated in grey.  
Source:  Draft Consolidated GATS Schedule of Specific Commitments (S/DCS/W/KOR/Rev.1) and Korea's 
Schedules annexed to the Investment Agreement.  
3.58.   Sectoral reservations relating to investment beyond mode 3 affect the following sectors:  
a. other  business  services;  
b. commission  agents'  services , wholesale  and retailing services . These concern energy, 
arms and related products , and environmentally -related measures (minimum quotas on 
the distribution of low -emission vehicles);   
c. refuse disposal s ervices , with requirements on recycling and radioactive waste 
management ; 
d. pipeline  transport services; and  
e. storage in services  auxiliary  to all modes  of transport . 
3.59.   For Türkiye , horizontal limitations on investment beyond mode 3 include e.g. the maintenance 
of public order12 and the manufactur e of products such as blood and sugar. All restrictions on 
investment, either horizontal or sector -specific, are summarized in Table 3.5 ; those  of a services -
specific nature are also included in the table on sectoral commitments.  
Table 3.5 Türkiye : Investment reservations, Annexes I and II  
No. Subject  Reservation  
NT MFN PR SMBD  
Annex I  
1 Non-profit enterprises – prior authorization      
2 Establishment of a branch      
3 Pharmaceuticals and medical products      
4 Mining      
5 Petroleum      
6 Fishery      
7 Agriculture      
Annex II  
1 Privatization of SOEs and public services      
2 Maintenance of public order      
3 International agreements       
4 Hazardous  chemicals  and waste      
5 Acquisition of land and immovable property      
6 Firearms, swords, explosives, munitions, war 
materials and similar items      
7 Defense industry      
8 Manufacturing of biological products (blood)      
 
12 Ibid. WT/REG339/4  
 
- 20 - 
 
 No. Subject  Reservation  
NT MFN PR SMBD  
9 Atomic energy and nuclear energy, atomic 
materials, radioactive materials, radioactive waste 
management      
10 Aquaculture      
11 Manufacturing of sugar      
12 Manufacturing of tobacco products      
13 Natural gas      
14 Boron, thorium and uranium      
15 Electric power generation      
16 Disadvantaged groups      
Note:  Abbreviations in accordance with those of Table 3.2.  
 Reservations to the Agreement's specific disciplines are indicated in grey.  
Source:  Draft Consolidated GATS Schedule of Specific Commitments (S/DCS/W/TUR/Rev.1) and  Türkiye 's 
Schedules annexed to the Investment Agreement.  
3.60.   Sectoral reservations relating to investment beyond mode 3 affect the following sectors:  
a. other  business  services;  
b. refuse di sposal services of hazardous chemicals and hazardous waste ; and  
c. transport and storage of firearms, swords, explosives, munitions or war material.  
3.61.   There is no specific body established to monitor the Investment Agreement.  
3.5  Regulatory provisions  
3.5.1   Domestic re gulation  
3.62.   The domestic regulation provision of the Agreement (Article 1.9) mirrors that of 
GATS  Article  VI. It also provides for its amendment in case of agreement in other fora o n additional 
relevant disciplines.  
3.5.2   Recognition  
3.63.   Article 1.10 of the Agreement calls for the Parties' professional bodies to jointly develop 
recommendations for the mutual recognition of service suppliers - in terms of authorization, 
licensing, operation and certification. Upon a determination by the Joi nt Committee that such a 
recommendation is consistent with the Agreement, the Parties shall negotiate a GATS -consistent 
mutual recognition agreement (MRA), in particular with regards to GATS Article VII. A Working Group 
on MRA s, operating under the Joint C ommittee, will be established under Article  7.2 of the 
Framework Agreement to facilitate work on these issues.  As of July 2022, the Working Group had 
not been established.   
3.5.3   Subsidies  
3.64.   Subsidies or grants provided by a Party are not covered by the Agreement.  The Parties agreed 
to review this issue in case any such disciplines are agreed under Article XV of the GATS (footnote 
to Article  1.1). 
3.5.4   Safeguards  
3.65.   The Parties agreed to review this issue in case any such disciplines are agreed under GATS 
Article X (Articl e 1.13).  WT/REG339/4  
 
- 21 - 
 
 3.5.5   Other  
3.6  Sector specific provisions on trade in services  
3.6.1    Telecommunications  
3.66.   Annex B of the Agreement on Telecommunications Services builds upon the GATS and 
incorporate s the provisions of the WTO's Reference Paper, to which Korea has committed as r egards 
its regulatory principles. The Annex's scope goes beyond that of the GATS Annex on 
Telecommunications by extending its coverage to cable  distribution ; as in the GATS however 
broadcasting remains carved out . 
3.67.   Beyond extending the disciplines of the Reference Paper to  Türkiye , the Parties commit to the 
following additional disciplines:  
a. their regulatory authorities are to ensure respect of  the confidential nature of 
information acquired by suppliers during the negotiations of interco nnection 
arrangements; and  
b. ensuring that telecommunication suppliers in their territor ies provide number portability 
to the extent it is technically feasible;  
c. on resolution of telecommunications disputes , a new right of appeal and of judicial 
review is introduced in case a Party's service supplier finds its interests are adversely 
affected by a determination or decision of a regulatory authority of the other Party.  
3.6.2   Financial services  
3.68.   The Agreement's disciplines and definitions on financial services are included  in Annex  C. 
Annex C builds upon those of the GATS and its Annex on Financial Services, as well as the Financial 
Services Understanding adopted  by Türkiye  but not by Korea  during the Uruguay Round. The scope 
of financial services disciplines is the sa me as under the GATS. Provisions of the Investment 
Agreement do not apply to financial services . 
3.69.   The Agreement's financial services disciplines extends to Korea some of the provisions 
included in the Understanding – namely national treatment as regards sel f-regulatory organizations 
and payments and clearing systems and data processing of financial information. Further, both 
Parties have committed to the following new provisions:  
a. Party may require registration of cross -border financial service suppliers of t he other 
Party and of financial instruments for prudential reasons;  
b. improved transparency  on a best endeavour basis for  measures to be adopted, 
requirements and timeframes associated with applications for suppl ying a service, and 
for responding to inquirie s from interested persons; and  
c. the provision of new financial services is opened up for such services already opened 
up for domestic suppliers, provided this does not require a new law or modification of 
an existing law. As of July 2022, no additional open ing has taken place.   
3.70.   The list of exceptions to trade in financial services adapts the general exceptions (services 
supplied in the exercise of governmental authority, grants and subsidies) to the sector, by specifying 
that activities relating to social se curity – unless otherwise opened up - and those of central banks 
are carved out. These are in line with exceptions under the GATS and its Annex on Financial Services.  
3.71.   Section 9 on dispute settlement provides that Section 6 of the Framework Agreement and i ts 
annex applies to the settlement of disputes under Annex C (see Section 4.6   with some adjustments  
concerning the q ualification s of panellists/arbitrators and cross -sectoral retaliation.  WT/REG339/4  
 
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 3.6.3   Audiovisual  
3.72.   Article 1.18 encourages Parties to negotiate a co -production agreement in the audiovisual 
sector which, once agreed, shall become an integral part of the Agreement. As of July 2022, no such 
negotiations had started.  
4  GENERAL PROVISIONS OF THE AGREEMENT  
4.1  Transparency  
4.1.  Article 1.8 of the Agreement builds upon GATS Article III by specifying transparency 
requirements in relation to mutual recognition agreements and on standards and criteria fo r licensing 
and certification of service suppliers. The Agreement also complements the GATS provisions by 
setting a deadline of 120 days for issuing a decision on the supply of a service by a service supplier 
of the other Party, and by including a best end eavour clause for informing applicant s, upon request, 
of the reasons for denying an application.  
4.2.  Discipline s on confidential information are similar to those of GATS Article III bis. 
4.3.  Further more, the disciplines of Chapter 4 of the Framework Agreement apply . For a detailed 
description, see the Factual Presentation, goods.  
4.2  Current payments and capital movements  
4.4.  The Parties shall permit all transfers and payments relating to the supply of services 
(Article  1.11).13 Exceptions are as follows:  
a. temporary safegua rd measures – applied on trade in services, investment and/or 
financial services – under the following circumstances (Annex C to the Investment 
Agreement):  
i. balance of payments (BOP) difficulties; see Section 4.3.3   
ii. in cases where payments and capital movements cause or threaten to cause 
serious difficul ties for the operation of monetary or exchange rate policies in the 
Party concerned.  
The maximum duration of these measures is one year but under extremely exceptional 
circumstances they can be reintroduced following coordination with the other Party. 
Other requirements include they be progressively phased out; consistency with national 
treatment and MFN disciplines of the Agreements on Services and on Investment; and 
that they are in accordance with Articles of the IMF; and  
b. transfers or payments may be del ayed in certain specific cases, including e.g. 
bankruptcy, law enforcement, criminal or penal offences, etc (paragraph  3 of 
Article  1.11).  
4.3  Exceptions  
4.3.1   General exceptions  
4.5.  The general exceptions of the Agreement are similar to those under Article  XIV of the 
GATS  (Article 1.16). Further, as provided for in the Framework Agreement (Article 8.1), taxation 
measures, including tax conventions, are outside the scope of the Agreement.  
 
13 The Investment Agreement also contains a provision on transfers. See Section 3.3.7.  WT/REG339/4  
 
- 23 - 
 
 4.3.2   Security exceptions  
4.6.  The Parties are authorized to take security exceptions along t he lines of GATS  Article  XIV bis 
(Article 1.17, which incorporates into the Agreement the equivalent Article of the Framework 
Agreement).  
4.3.3   Balance -of-payments safeguard provisions  
4.7.  The Parties may adopt or maintain restrictions on trade in services in accord ance with 
Article  XII of the GATS (Article 1.12). Any such measures or changes shall be promptly notified to 
the Joint Committee.  
4.8.  Further, Annex C of the Investment Agreement authorizes temporary safeguard measures with 
respect to payments and capital mov ements – related to trade in services, investment and financial 
services - in the event of serious BOP and external difficulties or threat thereof.  
4.4  Accession and withdrawal  
4.9.  There is no provision in the Agreement governing accession by third parties. A Part y may 
withdraw from the Agreement by providing six months written notice (Article 3.2).  
4.5  Institutional framework  
4.10.   A Committee on Trade in Services is established under the Agreement (Article  1.3), with 
meetings taking place back -to-back with meetings of the Joint Committee. The Joint Committee i s 
established under the Framework Agreement  and meets once a year or on request of the either 
Party; for a detailed description, see the Factual Presentation, goods.   
4.6  Dispute settlement  
4.11.   The Agreement has no provision regarding these elements, but the disciplines of Chapter  6 
of the Framework Agreement apply. For a detailed description, see the Factual Presentation, goods.  
4.7  Relationship with other agreements concluded by the parties  
4.12.   Article 1.7 makes clear that the Parties are not obliged to extend to each other any preferential 
regime they apply in the context of other RTAs they may be part y to; see paragraphs 
3.10.   3.10.    above  for further details. Table 4.1 lists notified and non -notified RTAs involving the 
Parties that are currently in force.  
Table 4.1 Korea and Türkiye : Participation in other RTAs (notified and non -notified in 
force), as of 9 May  2022  
RTA Name  Entry into 
forcea Coverage  GATT/WTO Notification  
Year WTO Provision  
TÜRKIYE  
EFTA - Türkiye  01-Oct-21 Goods & 
Services  2022 GATT Art. XXIV & GATS Art. V  
United Kingdom – Türkiye 01-Jan-21 Goods  2020 GATT Art. XXIV  
 Türkiye  - Kosovob 01-Sep-19 Goods  2021 GATT Art. XXIV  
 Türkiye  - Singapore  01-Oct-17 Goods & 
Services  2018 GATT Art. XXIV & GATS Art. V  
 Türkiye  - Republic of Moldova  01-Nov-16 Goods  2016 GATT Art. XXIV  
 Türkiye  - Malaysia  01-Aug-15 Goods  2017 GATT Art. XXIV  
 Türkiye  - Mauritius  01-Jun-13 Goods  2013 GATT Art. XXIV  
 Türkiye  - Chile 01-Mar-11 Goods  2011 GATT Art. XXIV  
 Türkiye  - Serbia  01-Sep-10 
01-Jun-19 Goods  
Services  2010 
2022 GATT Art. XXIV  
GATS Art. V  
 Türkiye  - Montenegro  01-Mar-10 Goods  2010 GATT Art. XXIV  
 Türkiye  - Georgia  01-Nov-08 Goods  2009 GATT Art. XXIV  WT/REG339/4  
 
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 RTA Name  Entry into 
forcea Coverage  GATT/WTO Notification  
Year WTO Provision  
 Türkiye  - Albania  01-May-08 Goods  2008 GATT Art. XXIV  
Egypt - Türkiye  01-Mar-07 Goods  2007 Enabling Clause  
 Türkiye  – Syria 01-Jan-07 Goods  2007 GATT Art. XXIV  
 Türkiye  - Morocco  01-Jan-06 Goods  2006 GATT Art. XXIV  
 Türkiye  - Tunisia  01-Jul-05 Goods  2005 GATT Art. XXIV  
 Türkiye  - Palestine  01-Jun-05 Goods  2005 GATT Art. XXIV  
 Türkiye  - Bosnia and Herzegovina  01-Jul-03 Goods  2003 GATT Art. XXIV  
Revised  Türkiye  - Bosnia and 
Herzegovina  01-Aug-21 Goods & 
Services  Not notified  
 Türkiye  - North Macedonia  01-Sep-00 Goods  2001 GATT Art. XXIV  
 Türkiye  - Israel  01-May-97 Goods  1998 GATT Art. XXIV  
EU - Türkiye  01-Jan-96 Goods  1995 GATT Art. XXIV  
Economic Cooperation Organization 
(ECO)  17-Feb-92 Goods  1992 Enabling Clause  
• ECO – Accession of Afghanistan  n.a. Goods  Not notified  
• ECO – Accession of Tajikistan  n.a. Goods  Not notified  
Protocol on Trade Negotiations 
(PTN)  11-Feb-73 Goods  1971 Enabling Clause  
 Türkiye  – Venezuela  21-Aug-20 Goods  Not notified  
 Türkiye  – Faroe Islands  01-Oct-17 Goods  Not notified  
 Türkiye  – Iran 01-Jan-15 Goods  Not notified  
Preferential Trade Agreement 
among D -8 Member Statesc 2016 Goods  Not notified  
REPUBLIC OF KOREA  
United Kingdom - Republic of Korea  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Central America  01-Oct-19 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Colombia  15-Jul-16 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  
China - Republic of Korea  20-Dec-15 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  
Republic of Korea - New Zealand  20-Dec-15 Goods & 
Services  2015 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Viet Nam  20-Dec-15 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  
Canada - Republic of Korea  01-Jan-15 Goods & 
Services  2015 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Australia  12-Dec-14 Goods & 
Services  2014 GATT Art. XXIV & GATS Art. V  
Republic of Korea - United States  15-Mar-12 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
Peru - Republic of Korea  01-Aug-11 Goods & 
Services  2011 GATT Art. XXIV & GATS Art. V  
EU - Republic of Korea  01-Jul-11 Goods & 
Services  2011 GATT Art. XXIV & GATS Art. V  
ASEAN - Republic of Korea  01-Jun-07 
01-May-09 Goods  
Services  2010 GATT Art. XXIV, Enabling Clause  
GATS Art. V  
Republic of Korea - India 01-Jan-10 Goods & 
Services  2010 GATT Art. XXIV, Enabling Clause 
& GATS Art. V  
EFTA - Republic of Korea  01-Sep-06 Goods & 
Services  2006 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Singapore  02-Mar-06 Goods & 
Services  2006 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Chile 01-Apr-04 Goods & 
Services  2004 GATT Art. XXIV & GATS Art. V  
Global System of Trade Preferences 
among Developing Countries 
(GSTP)  19-Apr-89 Goods  1989 Enabling Clause  
Asia Pacific Trade Agreement 
(APTA)  17-Jun-76 
17-Sep-13 Goods  
Services  1976 
2019 Enabling Clause  
GATS Art. V  WT/REG339/4  
 
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 RTA Name  Entry into 
forcea Coverage  GATT/WTO Notification  
Year WTO Provision  
• APTA - Accession of China  01-Jan-02 Goods  2004 Enabling Clause  
• APTA - Accession of Mongolia  01-Jan-21 Goods & 
Services  Not notified  
  
PTN 11-Feb-73 Goods  1971 Enabling Clause  
Regional Comprehensive Economic 
Partnership (RCEP)  01-Jan-22 Goods & 
Services  Not notified  
a Date of application for at least one of the Parties.  
b Reference to Kosovo in this table shall be understood to be in the context of the United Nations 
Security Council resolution 1244 (1999).  
c Developing -8 is an organization for development cooperation among the following countries: 
Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and  Türkiye . 
Source:  WTO Secretariat. Further info rmation on these Agreements and on specific dates of entry into 
force/provisional applications may be found in the WTO Database on RTAs: http://rtais.wto.org .  
4.8  Government procurement  
4.13.   There are no provisions on governme nt procurement in the Agreement.  However, in 
Article  1.4, the Framework Agreement foresees the possibility of the conclusion of a government 
procurement agreement  between the Parties.14 
4.9  Intellectual property rights  
4.14.   The Agreement has no provision regarding intellectual property, but the disciplines of 
Chapter  2 of the Framework Agreement apply. For a detailed description, see the 
Factual  Presentation, goods.  
4.10  Competition  
4.15.   The Agreement has no provision regarding competition, but the disciplines of Chapter 3 of the 
Framework Agreement apply. For a detailed description, see the Factual Presentation, goods.  
4.11  Environment  
4.16.   There are no provisions on environment in the Services Agreement.  
4.17.   The Investment Agreement provides that Parties should  not relax their environmental laws 
as an incentive to foreign investment (Article 1.16  of the Investment Agreement ). It also clarifies 
that Parties are free to apply non -discriminatory measures otherwise consistent with the said 
agreement so to ensure tha t investments are sensitive to environmental or health concerns.  
4.18.   Chapter 5 of the Framework Agreement applies to measures adopted or maintained by the 
Parties affecting trade -related aspects of environmental issues. For a detailed description, see the 
Factual Presentation, goods.  
4.12  Labour  
4.19.   There are no provisions on labour in the Agreement. However, Chapter  5 of the 
Framework  Agreement applies to measures adopted or maintained by the Parties affecting 
trade -related aspects of labour. For a detailed description , see the Factual Presentation, goods.  
 
14 Korea is a signatory to the WTO Government Procurement Agreement and  Türkiye  has an observer 
status.  WT/REG339/4  
 
- 26 - 
 
 4.13  Electronic commerce  
4.20.   Chapter 2 provides disciplines relating to electronic commerce. Article 2.3 specifies that 
measures affecting the supply of a service delivered or performed electronically are subject to the 
trade in services obligations under Chapter 1 and Annex D on specific commitments.  
4.21.   The following provisions ma y be singled out:  
a. prohibit ion of customs duties on electronic transmissions between Parties (Article  2.4); 
internal taxes or charges remain authorized;  
b. encouragement, but no mandatory acceptance of electronic versions of trade 
administration documents ; 
c. Parties to electronic transactions are free to mutually define appropriate authentication 
methods . However:  
i. denying legal validity of a signature solely on  the basis of its electronic form  is 
not permitted ; and 
ii. for certain categories of transactions, the Parties may require that authentication 
comply with certain performance standards or is certified by an accredited 
authority or supervised in accordance wit h the Party 's law, provided this serves a 
legitimate governmental objective and is substantially related to achieving that 
objective ; 
d. best endeavour provisions for online consumer protection and paperless trading ; 
e. guide online personal data protection  are based on i nternational standards ; and Parties 
agree to maintain a dialogue on regulatory issues related to electronic commerce.  
4.22.   The Agreement has no discipline s on location of computing facilities nor on access to source 
codes.   
4.14  Small and medium -sized ente rprises  
4.23.   There are no provisions on s mall and medium -sized Enterprises (SMEs) in the Agreement.  
__________