WT/REG286/1  
10 July 2017 
(17-3693) Page: 1/31 
Committee on Regional Trade Agreements   
 
 
 
 FACTUAL PRESENTATION  
COMPREHENSIVE ECONOM IC PARTNERSHIP AGREE MENT  BETWEEN  
THE REPUBLIC OF KORE A AND INDIA  
(SERVICES ) 
Report by the Secretariat  
This report, prepared for the consideration of the Comprehensive Economic 
Partnership Agreement  between the Repu blic of Korea and India , 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 prov ided and does not imply official 
endorsement 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 imply any value judgement by the Secretariat regarding the contents of the 
Agreement.  
Any technical questions arising from this report may be addressed to Jean-Daniel Rey 
(tel: +41 22 739 5264) . Any statistical questions arisi ng from this report may be 
addressed to Rowena Cabos  (tel: +41 22 739 5185). WT/REG286/1  
 
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 TABLE O F CONTENTS  
Page 
1   TRADE ENVIRONMENT  ................................ ................................ ................................ . 4 
2   CHARACTE RISTIC ELEMENTS OF T HE AGREEMENT  ................................ ....................  10 
2.1   Background Information  ................................ ................................ .............................. 10 
2.2   Structure of the Agreement  ................................ ................................ ......................... 10 
3   PROVISIONS ON TRADE IN SERVICES AND INVE STMENT  ................................ .........  10 
3.1   Scope and Definitions  ................................ ................................ ................................ .10 
3.2   Denial of Benefits  ................................ ................................ ................................ .......12 
3.3   General Provisions on Trade in Services and investment  ................................ .................. 12 
3.3.1    Market access  ................................ ................................ ................................ ......... 12 
3.3.2    National and MFN treatment  ................................ ................................ ...................... 12 
3.3.3    Commercial presence  ................................ ................................ ............................... 13 
3.3.4    Performance requirements  ................................ ................................ ........................ 13 
3.3.5    Senior Managers and Boards of Directors  ................................ ................................ ....13 
3.3.6    Movement of natural persons  ................................ ................................ .................... 13 
3.4   Liberalization Commitments  ................................ ................................ ......................... 15 
3.4.1    India ................................ ................................ ................................ ...................... 15 
3.4.1.1    Horizontal c ommitments  ................................ ................................ ........................ 16 
3.4.1.2    Sector -specific commitments in trade in services  ................................ ...................... 16 
3.4.1.3    Specific commitments and restrictions appl icable to investment  ................................ ..19 
3.4.2    Republic of Korea ................................ ................................ ................................ .....19 
3.4.2.1    Horizontal commitments  ................................ ................................ ........................ 20 
3.4.2.2    Sector specific commitments in trade in services  ................................ ....................... 20 
3.4.2.3    Specific commitments and restrictions applicable to investment  ................................ ..23 
3.5   Regulatory provisions  ................................ ................................ ................................ ..24 
3.5.1    Domestic regulation  ................................ ................................ ................................ .24 
3.5.2    Recognition  ................................ ................................ ................................ ............. 24 
3.5.3    Subsidies  ................................ ................................ ................................ ................ 24 
3.5.4    Safeguards  ................................ ................................ ................................ ............. 24 
3.5.5    Other  ................................ ................................ ................................ ..................... 24 
3.5.5.1    Monopolies and exclusive service suppliers  ................................ ............................... 24 
3.6   Sector specific provisions on trade in services  ................................ ................................ 25 
3.6.1    Financial services  ................................ ................................ ................................ .....25 
3.6.2    Telecommunication  ................................ ................................ ................................ ..25 
3.6.3    Audio visual co -producti on ................................ ................................ ........................ 25 
4   GENERAL PROVISIONS O F THE AGREEMENT  ................................ .............................  26 
4.1   Transparency  ................................ ................................ ................................ ............. 26 
4.2   Current payments and capital movements  ................................ ................................ .....26 
4.3   Exceptions  ................................ ................................ ................................ ................. 26 WT/REG286/1  
 
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 4.3.1    General exceptions  ................................ ................................ ................................ ..27 
4.3.2    Security exceptions  ................................ ................................ ................................ ..27 
4.3.3    Taxation  ................................ ................................ ................................ ................. 27 
4.4   Accession and Withdrawal ................................ ................................ ............................ 27 
4.5   Institutional framework  ................................ ................................ ............................... 27 
4.6   Dispute settlement  ................................ ................................ ................................ .....27 
4.7   Relationship with other agreements concluded by the Parties  ................................ ........... 28 
4.8   Government procurement  ................................ ................................ ............................ 30 
4.9   Intellectual property righ ts ................................ ................................ .......................... 30 
4.10   Other  ................................ ................................ ................................ ...................... 30 
4.10.1    Competition  ................................ ................................ ................................ .......... 30 
4.10.2    Bilateral  cooperation  ................................ ................................ .............................. 30 
 WT/REG286/1  
 
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Key Facts  
 
Parties to the Agreement:  The Republic of Korea  and India  
 
Date of Signature:   7 August 2009  
 
Date of Entry into Force:  1 January 2010  
 
Date of Notification s:   23 June 2010 and 27 September 
2010 
 
Full implementation:   1 January 2010  
 
 
1  TRADE ENVIRONMENT  
1.1.  The Comprehensive economic partnership agreement  between the Republic of Korea 
(hereafter "Korea") and India  is hereafter  referred to as "the Agreement". It is one among the 
16 regional  trade agreement1 (RTA)  notified by Korea and the 14 RTAs notified by India.2  
1.2.  In commercial services, India ranked 5th in terms of global exports and  6th in terms of global 
imports, amounting to US$ 155 billion and US$ 122 billion, respectively.3 This represents 3.27% 
and 2.65% of world exports and imports, respectively.  Comparatively, Korea ranked 9th in terms of 
global exports and 7th in terms of global imports, amounting to US$ 97 billion and US$ 112 billion, 
respectively.4 This represents 2.04% and 2.44% of world  exports and imports, respectively.  
1.3.  Chart 1.1 shows the breakdown of commercial services trade for Korea with the world in 
2000-2012, based on BPM5 (with ma intenance and repair services) and Chart 1.2 completes the 
picture by showing Korea's trade in servi ces with the world between 2013 and 2015, based on 
BMP6. During the whole period, Korea  has run a constant trade deficit in commercial services  with 
the world, with the exception of 2012 . While its exports are dominated by other business services, 
key impo rts are transport and other business services.  
                                                
1 Not counting the Global System of T rade Preferences among Developing Countries (GSTP) and the 
Protocol on Trade Negotiations (PTN).  
2 Not counting the Global System of Trade Preferences among Developing Countries (GSTP).  
3 Source: WTO Trade Profile (January 2017; 2015 data; and ranking excl uding intra -EU trade).  
4 Same sources as for India.  WT/REG286/1  
 
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 Chart 1.1 Korea trade in services with the world (2000 -2012)  
Transportation services
Travel
Communications services
ConstructionFinancial services
Computer and information services
Royalties and license feesOther business services
Personal, cultural and 
recreational servicesInsurance servicesMaintenance and repair 
services020406080100120
2000 2002 2004 2006 2008 2010 2012A. Korea imports from world
2000 -2012
(US$ Billion)
020406080100120
2000 2002 2004 2006 2008 2010 2012B. Korea exports to world
2000 -2012
(US$ Billion)
 
Note:  Based on BPM5 with Maintenance and repair services.  
Source:  Korean authorities (2007 -2009) a nd WTO Statistics Database (2000 -2006; 2010 -2012 trade with 
world).  
Chart 1.2 Korea: Trade in commercial services with the world (2013 -2015)  
Manufacturing services on physical 
inputs owned by others
Maintenance & repair services, n.i.e.
Transport services
Travel servicesInsurance and pension 
services
Financial services
Charges for the use of 
intellectual property n.i.e.Telecom, computer and 
information services
Other business servicesConstruction services
Personal, cultural and 
recreational services020406080100120140
2013 2014 2015A. Korea imports from world
2013 -2015
(US$ Billion)
020406080100120
2013 2014 2015B. Korea exports to world
2013 -2015
(US$ Billion)
 
Note:  Based on BPM6.  
Source:  WTO Statistics Database (2013 -2015).  
 WT/REG286/1  
 
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 1.4.  Chart 1.3 shows the breakdown of commercial services trade for India with the world in 
2000-2012, based on BPM5 (with maintenance and repair services). Chart 1.4 completes the 
picture by showing India's trade in services with the world between 2013 and 20 15, based on 
BMP6. During the beginning of the  period  (2000 to 2003) , India had a deficit with respect to its 
trade in commercial services with the world . Since 2004, that trend has been  reversed to a 
constant trade surplus. Transportation and other busine ss services progressively have become  
India's key import sectors, while its exports to the world were dominated by computer and 
information services and other business  services . 
Chart 1.3 India trade in servic es data with world (2000 -2012)  
Transportation services
Travel
Communications services
ConstructionFinancial services
Computer and information servicesRoyalties and license fees
Other business services
Personal, cultural and 
recreational servicesInsurance services020,00040,00060,00080,000100,000120,000140,000
2000 2002 2004 2006 2008 2010 2012A. India imports from world
2000 -2012
(US$ Million)
020,00040,00060,00080,000100,000120,000140,000160,000
2000 2002 2004 2006 2008 2010 2012B. India exports to world
2000 -2012
(US$ Million)
 
Note:  Based on BPM5. No trade data on Personal, cultural and recreational services (2000 -2003); no 
export data on other business services (2000 -2003).  
Source : WTO Statistics Database.  WT/REG286/1  
 
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 Chart 1.4 India: Trade in commercial services data with the world (2013 -2015)  
Manufacturing services on physical 
inputs owned by others
Maintenance & repair services, n.i.e.
Transport services
Travel servicesInsurance and pension 
services
Financial services
Charges for the use of 
intellectual property n.i.e.Telecom, computer and 
information services
Other business servicesConstruction services
Personal, cultural and 
recreational services020406080100120140
2013 2014 2015A. India imports from world
2013 -2015
(US$ Billion)
020406080100120140160180
2013 2014 2015B. India exports to world
2013 -2015
(US$ Billion)
 
Note:  Based on BPM6.  
Source:  WTO Statistics Database.  
 
1.5.  Korean figures on its bilateral commercial services trade with India, for the period 
2005-2011, and based on BMP5  are pictured in Chart 1.5 . They show Korea's trade deficit with 
India (the year 2009 showing however a reversal of this trend)  during this period . The data also 
show the importance of other business services (more than half of Korea's total export s to Ind ia) 
in Korea's export performance.  WT/REG286/1  
 
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 Chart 1.5 Korea trade in services with India (2000 -2011)  
Transportation services
Travel
Communications services
ConstructionFinancial services
Computer and information services
Royalties and license feesOther business services
Personal, cultural and 
recreational servicesInsurance servicesMaintenance and repair 
services01002003004005006007008009001,000
2005 2006 2007 2008 2009 2010 2011A. Korea imports from India
2005 -2011
(US$ Million)
05001,0001,5002,000
2005 2006 2007 2008 2009 2010 2011B. Korea exports to India
2005 -2011
(US$ Million)
 
Note:  Based on BPM5 with Maintenance and repair services.  
Source:  Korean authorities (2007 -2009), OECD (2005 -2006;  2010-2011 bilateral trade only).  
 Statistics Database (2000 -2006; 2010 -2012 trade with world).  
 
1.6.  With respect to foreign direct investment (FDI) , Chart 1. 6 illustrates the consistent surplus  
maintained  by Korea  in its FDI stock s and flows with India. This i s corroborated by data provided 
by India and presented in Chart 1. 7.  WT/REG286/1  
 
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 Chart 1.6 Korea: FDI stock and flow with India and world, 2000 -2012  
01,0002,0003,0004,0005,000
2000 2002 2004 2006 2008 2010 2012FDI stock with India
2000 -2012
(US$ Million ) 
Outward
Inward
0100200300400500600700
2000 2002 2004 2006 2008 2010 2012FDI flow with India
2000 -2012
(US$ Million) 
Outward
Inward
050100150200250300
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015FDI stock with world
2000 -2015
(US$ Billion ) 
Outward
Inward
051015202530
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015FDI flow with world
2000 -2015
(US$ Billion ) 
Outward
Inward
 
Note:  no outward FDI for 2002 and 2005.  
Source:  OECD and Korean autho rities (2007 -2009 only bilateral trade).  
 
Chart 1.7 India: FDI stock and flow with world, FY 2000 -2016  
050100150200250300350
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16FDI stock with world
FY 2000 -2016
(US$ Billion ) 
Outward
Inward
05101520253035404550
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16FDI flow with world
FY 2000 -2016
(US$ Billion) 
Outward
Inward
 
Source:  Reserve Bank of India online informat ion, "RBI Bulletin". Viewed at: 
http://rbi.org.in/scripts/BS_ViewBulletin.aspx . Indian authorities and UNCTAD.  
 WT/REG286/1  
 
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 2  CHARACTERISTIC ELEME NTS OF THE AGREEMENT  
2.1  Background Information  
2.1.  The Agreement was signed by India and Korea ( hereafter "the Parties") on 7 August 2009  
and entered into force on 1 January 2010 . It was notifi ed to the WTO by the Parties, on 23 June 
and on 27 September 2010 (respectively WT/REG286/N/1 and S/C/N/558 and WT/COMTD/N/36 
and S/C/N/570 ). The present factual presentation covers the aspec ts of the Agreement notified 
under the GATS . 
2.2.  The text of the Agreement is available, together with its Annex, on the following official 
websites:  
India:   
http://commerce.nic.in/tr ade/INDIA%20KOREA%20CEPA%202009.pdf  
 
Korea : 
http://www.fta.go.kr/  main/situation/kfta/lov5/in/  
 
2.2  Structure of the Agreement  
2.3.  The Agreement is composed of fifteen chapters . It also contain s Annex es with the Parties' 
Schedules of Specific Commitments related to trade in services, the ir lists of non -conforming 
measures with respect to investment, and the ir Schedules of tariff reduction or elimination.  
2.4.  Chapter 1 contains general provisions an d definitions, and chapters 6 through 10 contain 
disciplines directly applicable to trade in services, telecommunication s, the movement of natural 
persons, audio visual coproduction, and investment. Chapters 11 through 15 contain rules on 
competition; inte llectual property rights; bilateral cooperation; and dispute settlement; as well as 
administrative and final provisions. The provisions in chapters 2 through 5 are related to trade in 
goods and are not addressed in this  factual presentation.  
Table 2.1 Structure of the Agreement  
Titles, Chapters 
(including Annexes) 
and Protocols  Title/description  
Preamble   
Chapter 1  General provisions and definitions  
Chapter 2  Trade in goods  
Chapter 3  Rules of origin  
Chapter 4 Origin procedure s 
Chapter 5  Trade facilitation and customs cooperation  
Chapter 6  Trade in services  
Chapter 7  Telecommunication  
Chapter 8  Movement of natural persons  
Chapter 9  Audio -visual co -production  
Chapter 10  Investment  
Chapter 11  Competit ion 
Chapter 12  Intellectual property rights  
Chapter 13  Bilateral cooperation  
Chapter 14  Dispute settlement  
Chapter 15  Administrative and final provisions  
Source:  WTO Secretariat based on the Agreement.  
3  PROVISIONS ON TRADE  IN SERVICES  AND INVESTMENT  
3.1  Scope and Definitions  
3.1.  Chapters 6 through 10  of the Agreement  contain disciplines applicable to trade in services 
and investment.  WT/REG286/1  
 
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 3.2.  Under Chapter 6 (on trade in services), t he Agreement applies to measures5 of a Party 
affecting trade in services. Trade in serv ices is defined as the supply of a service through the four 
modes of supply  as under  the GATS.6 Chapter 6  does not apply to: a ) government procurement; 
b) subsidies or grants, guarantees and insurance, or to any conditions attached to their receipt; c) 
services provided in the exercise of governmental authority; and some air services .7 It stipulates 
that "new services", including new financial services, shall be considered for possible incorporation 
into Chapter 6 at future reviews. The supply of services w hich are not technically or technologically 
feasible when this Agreement c ame into force shall, when they become feasible, also be 
considered for possible incorporation at future reviews or at the request of either Party 
immediately (Paragraph 6 of Article  6.2). The Parties' commitments  applicable to trade in services 
and covered by Chapter 6  only apply to the extent  the sectors and sub -sectors are listed in 
Annexes 6 -A (for  Korea ) or 6 -B (for India) and are subject to conditions and/or limitations 
inscribe d therein . 
3.3.  Chapter 7 (on telecommunications) applies to measures affecting trade in 
telecommunications services, subject to rules, regulations and licence conditions as applicable 
within the territory of each Party, under the framework of Chapter 6 (on tra de in services).  
3.4.  Under Chapter 8 (on the movement of natural persons) disciplines are established to be 
applied to measures affecting the movement of natural persons of a Party who enter the territory 
of the other Party.  
3.5.  Chapter 9 addresses issues related  to audio -visual co -production, while Chapter 10 covers 
investment.  
3.6.  Chapter 10 on investment8 applies to measures by a Party relating to investors of the other 
Party; investments of investors of the other Party in the territory of the former Party; and, i n 
relation to health, safety and environmental measures, all investments in the territory of the Party.  
Chapter 10 does not apply to measures applicable to financial services.  The Parties' commitments 
that are covered by Chapter 10 do not apply to the exis ting non -conforming measures which they 
list concerning the obligation of national treatment, performance requirement s, and senior 
management and boards of directors  in Annex I to the Agreement9 and/or any measure that they 
adopt or maintain with respect t o sectors, sub -sectors or activities listed in Annex II of the 
Agreement.  The services -investment linkage is addressed  in Article 6.23 as well as under 
Article  10.2. The  latter clarifies  the scope and coverage of Chapter 10 (on investment) . In addition 
to the provisions  that are mentioned below  on national treatment; MFN treatment; performance 
requirements; senior management and boards of directors; and their related non -conforming 
measures; as well as denial of benefits; Chapter also 10 contains discipline s on, inter alia , 
minimum standards of treatment, which foresees that covered investments shall be accorded fair 
and equitable treatment as well as full protection and security (Article 10.4). Moreover, national 
treatment shall, with some reservations, be granted for investment losses and related 
compensation (Article 10.13). Moreover, e xpropriation10 or nationalization is not permitted unless 
on a non -discriminatory basis, for a public purpose, in accordance with due process of law and 
compliance with minim um standards of treatment, and upon payment of prompt, adequate and 
                                                
5 The measures by Parties affecting trade in services include measures in respect of: (a) the purchase, 
payment or use of a services; (b) the access to and use of, in connection with the supply of a servi ce, services 
which are required by the Parties to be offered to the public generally; or (c) the presence, including 
commercial presence, of persons of a Party for the supply of a service in the territory of the other Party.  
6 In relation to mode 3, under the Agreement, "commercial presence" means any type of business or 
professional establishment, including through: i) the constitution, acquisition or maintenance of a juridical 
person; or ii) the creation or maintenance of a branch or a representative offi ce, within the territory of a Party 
for the purpose of supplying a service . 
7 The air services concerned include domestic and international services, whether scheduled or 
non-scheduled, and related services in support of air services other than: (i) aircra ft repair and maintenance 
services; (ii) the selling and marketing of air transport services; and (iii) computer reservation system 
services.  
8 While some disciplines and commitments complement those contained under Chapter 6 on trade in 
services, the cove rage of Chapter 10 goes beyond trade in services as defined under the GATS and also 
includes a number of activities that pertain to trade in goods.  
9 According to the explanatory notes on Annex I, with regard to the reservations, the Parties have to 
specif y the details of such measures including the relevant provisions of the legislation related to the 
description as set forth in the Schedules, within 6 months from the date of implementation of the Agreement.  
10 The Parties' understanding on expropriation i s set out in Annex 10 -A to the Agreement.  WT/REG286/1  
 
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 effective compensation (Article 10.12). Chapter  10 also contains provisions on special formalities 
and information requirements (Article  10.15), as well as on subrogation (Article 10.14). 
Furthermore, if the laws or regulations of either Party or international obligations existing at the 
time the Agreement had been approved or established hereafter between the Parties in addition to 
Chapter 10, result ing in a position entitling investors of  the other Party (and their investments) to 
treatment more favourable than is provided for by Chapter 10, such position shall not be affected 
by the Agreement (Article 10.20).  
3.7.  In the event of any inconsistency between Chapter 10 (investment) and another Ch apter (in 
particular Chapter 6 on trade in services), the other Chapter shall prevail to the extent of the 
inconsistency. Chapter 10 does not apply to measures by a Party with respect to financial 
services .11 It shall not apply either to subsidies or grants , or any taxation measures.   
3.2  Denial of Benefits  
3.8.  Article 6.22  on the denial of benefits , as applicable to trade in services,  mirrors the provisions 
of Article XXVII of the GATS. In relation to trade in services, the Agreement allows a Party to deny 
the bene fits of the Agreement, inter alia , to a service supplier of the other Party if the service 
supplier is a juridical person owned or controlled by persons of a third -party, and the denying 
Party adopts or maintains measures which include a notification or an  order, with respect to the 
third-party or a person of the third -party that prohibit transactions with the juridical person or that 
would be violated or circumvented if the benefits of Chapter 6 were accorded to the juridical 
person.  In relation to investm ent, Article 10.17 allows a Party to deny the benefits of Chapter 10 
(investment) under conditions related to the ownership or control by an investor of an enterprise 
and with respect to where the enterprise has its substantial business activity.  
3.3  General P rovisions on Trade in Services  and investment  
3.3.1   Market  access  
3.9.  The market access provisions mirror the language of Art icle XVI of the GATS (Article 6.4 ). 
The Parties' market access commitments refer to their Schedules of specific commitments.  
3.3.2   National and MFN  treatment  
3.10.   The national treatment provisions  under the Agreement (Article 6.5) largely  mirror the 
language of Artic le XVII of the GATS . The Parties' national treatment commitments refer to their 
Schedules of specific commitments.  For trade in services, the  Parties' commitments on national 
treatment only apply to the extent  the sectors and sub -sectors are listed in Annexes 6 -A (for 
Korea ) or 6 -B (for India) and are subject to conditions and/or limitations  inscribed therein.  
3.11.   National treatment is also grante d in relation to investment, through provisions contained in 
Article 10.3 and subject to the existing non -conforming measures listed in Annex I to the 
Agreement and/or any measure that they adopt or maintain with respect to sectors, sub -sectors or 
activiti es listed in Annex II of the Agreement (Article 10.8). With respect to investment, any 
subsequent establishment, acquisition and expansion of investment by a service supplier that is 
incorporated, constituted, set up or otherwise duly organised under the l aw of a Party, and which 
is owned by a service supplier of the other Party, shall be regarded as an investment of the other 
party, for the purpose of applying national treatment.  The Parties' commitments on national 
treatment that are covered by Chapter 10  (investment) do not, however, apply to the existing 
non-conforming measures which they list concerning the obligation of national treatment in 
Annex  I to the Agreement and/or any measure that they adopt or maintain with respect to sectors, 
sub-sectors or activities listed in Annex II of the Agreement.  
3.12.   Under Article 6.3 (review of most favoured nation commitment) the Parties  commit to 
consider the incorporation into the Agreement of more preferential treatment granted by a Party to 
a third -party .  
                                                
11 Financial services are covered by Chapter 6 (trade in services) and by Annex 6 -C (specific provisions 
on financial services).  WT/REG286/1  
 
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 3.3.3   Commercia l presence  
3.13.   Subject to the conditions and limitations contained in the Parties' Schedules of specific 
commitments, the disciplines, commitments and modalities contained in Chapter 6 apply to 
commercial presence for the sectors listed in the Parties' respect ive Schedules.  
3.14.   Moreover, and regardless of whether or not service sectors are scheduled in a Party's 
Schedule of specific commitments in Annex 6 -A or 6 -B, a number of rules contained in Chapter 10 
(on investment) apply also to measures affecting the suppl y of service by a service supplier of a 
Party through commercial presence , only to the extent that they relate to an investment 
(Article  6.23) . These rules apply to, inter alia, minimum standard of treatment (Article 10.4); 
transfers (Article 10.10); expro priation and compensation (Article 10.12); losses and 
compensation (Article 10.13); subrogation (Article 10.14); special formalities and information 
requirements (Article 10.15); access to the judicial and administrative procedures (Article 10.19); 
and set tlement of disputes between a Party and an investor of the other Party (Article 10.21).  
3.3.4   Performance  requirements  
3.15.   Disciplines on performance requirements are only established w ith respect to investment 
(Chapter 10 ), for which neither Party shall impose or e nforce the performance req uirements listed 
in Article 10.5 . In addition, a Party may not enforce any commitment or undertaking, in connection 
with the establishment, acquisition, expansion, management, conduct, operation, or sale or other 
disposition of an  investment of an investor of a the other Party  in its territory . A Party may 
condition the receipt or conti nued receipt of an advantage on com pliance with the requirements  
set forth  in paragraphs 1 (f) and (g) of  Article 10.5 . The Parties shall neverthele ss continue to 
abide  by the disciplines contained in the WTO Agreement on trade -related investment measures 
(TRIM s).  
3.16.   The Parties' commitments on performance requirements do not, however, apply to the 
existing non -conforming measures which they list concer ning the obligation of performance 
requirement s in Annex I to the Agreement and/or any measure that they adopt or maintain with 
respect to sectors, sub -sectors or activities listed in Annex II of the Agreement.  
3.3.5   Senior Managers and Boards of Directors  
3.17.   Disciplines on senior managers and boards of directors are also only established with 
respect to investment (Chapter 10), for which n either  Party may require that an investor of the 
other Party appoint to senior management positions individuals of any particula r nationality. A 
Party may nevertheless require that a majority of the board of directors, or any committee 
thereof, of an enterprise of the Party that is an investment of an investor of the other Party, be of 
a particular nationality, or resident in the t erritory of the Party, provided that the requirement does 
not materially impair the ability of the investor to exercise control over its investment.  
3.18.   The Parties' commitments on senior managers and boards of directors do not, however, 
apply to the existing  non-conforming measures which they list concerning the obligation of senior 
managers and boards of directors  in Annex I to the Agreement and/or any measure that they 
adopt or maintain with respect to sectors, sub -sectors or activities listed in Annex II o f the 
Agreement.  
3.3.6   Movement of natural persons  
3.19.   Chapter 8 applies to measures affecting the movement of natural persons of a Party into the 
territory of the other Party.  It provides for additional rights and obligations to those set out in 
chapters 2 (trade i n goods), 6 (trade in services), and 10 (investment) in relation to the 
movement of natural persons between the Parties.  The disciplines established under Chapter 8 are 
applicable to measures affecting the movement of natural persons of a Party who enter t he 
territory of the other Party as service sellers, suppliers, or sellers of goods of the former Party; 
investors of the former Party (in respect of their investments in the territory of the latter Party); or 
employee s of an investor of the former Party.  WT/REG286/1  
 
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 3.20.   Each Party shall grant temporary entry for business visitors, intra -corporate transferees, 
and professionals in a profession listed in Annex 8 -A to the Agreement. Moreover, expeditious 
processing of applications for temporary entry shall be performed , inclu ding requests for further 
extensions12, particularly  with respect to members of professions for which mutual recognition 
arrangements have been concluded .13  
3.21.   Table  3.1 below summarize s entry and temporary stay for the categories for which the 
Parties make co mmitments under Chapter  8. Some condition s are attached to the granting of 
temporary entry for each category.  The commitments made by each Party under Chapter 8 are 
subject to any terms, conditions, reservations or limitations a Party has scheduled in resp ect of 
each service sector under Chapter 6 (trade in services). The Parties' Schedules of specific 
commitments shall therefore be kept in mind when assessing the impact of the provisions 
contained in Chapter 8.  
Table 3.1 India and Korea: Commitments on the movement of natural persons  
Category  Sub-categories  Conditions in India 
for Korean natural 
persons  Conditions in 
Korea for Indian 
natural persons  
Business Visitors  (i) service seller with purpose of selling  
services or entering into agreements for 
such sale.  
(ii) seeking temporary entry for 
negotiating sale of goods (no involving 
direct sales to the general public)  
(iii) investor (manager, executive or 
specialist)  - Up to 180 days, or  
- longer duration for 
a maximum period of 
up to 5 years with 
180 days stay 
stipulation for a 
single visit  Up to 90 days  
 
Intra Corporate 
Transferees*  (i) Manager,  
(ii) Executive;  
(iii) Specialist  - Up to 1 year (or the 
duration of the 
contract if less than 1 
year). - extension 
possible on year by 
year basis for a total 
term not exceeding 5 
years  
- no labour market 
test may be required  
- no numerical 
restriction may be 
imposed  - Up to 2 year (or 
the duration of the 
contract if less than 
1 year). - extension 
possible , provided 
the conditions on 
which it is based 
remain in effect  
- no numerical 
restriction may be 
imposed  
- no numerical 
restriction may be 
imposed  
Professionals**  (i) Contractual service supplier  
(ii) Independent professional  - Up to 1 year (or the 
duration of the 
contract if less than 1 
year).   
* As defined under indent (h) of paragraph 2 of Article 8.2 . 
** The commitments on professionals are applicable for the professions listed in Annex 8 -A to the 
Agreement . 
Source:  WTO Secretariat  based on Chapter 8 .  
3.22.   Temporary en try shall be provided to a spouse and a dependant of an intra -corporate 
transferee, contractual service supplier or independent professional qualifying for temporary entry, 
if immigration measures applicable to temporary entry a re complied with . A work per mit shall also 
be granted to spouses and dependants, provided the relevant employment qualifications are met 
(Article 8.4).  
3.23.   Chapter 8 also contains a best endeavour provision on the resolution of problems within the 
framework of the Parties' laws, regulati ons and other similar measures governing the temporary 
entry of natural persons (Article 8.6). The use of the dispute settlement mechanism established by 
                                                
12 With reference to Para 2 of Article 8.3 of Korea -India CEPA: The Parties shall proc ess expeditiously 
applications for temporary entry from natural persons of the other Party. This applies not only to the members 
of professionals with MRA but also to other natural persons seeking temporary entry to other Party.  
13 A link is made to MRAs co ncluded pursuant to Article 6.8 (recognition).  WT/REG286/1  
 
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 the Agreement (Chapter 14) is however excluded regarding a refusal to grant temporary entry 
under Chap ter 8, with some exceptions (Article 8.7).  
3.4  Liberalization Commitments  
3.24.   With respect to trade in services,  a GATS -like "positive listing" approach is used for the 
Parties'  commitments in market access, national treatment, and additional commitments. The 
Parties' schedules are contained in Annexes 6 -A and 6 -B. They identify the services sectors and 
sub-sectors for which commitments are made, and specify, by mode of supply, the conditions and 
limitations that may be applicable to market access and national trea tment -related commitments .  
3.25.   Beyond the commitments made by the Parties for market access, and national treatment, 
the Parties may negotiate additional commitments with respect to measures affecting trade in 
services, including those regarding qualification s, standards or licensing matters. Such 
commitments shall be inscribed in the Parties' Schedules of specific commitments as appropriate 
(Article 6.6).  
3.26.   The m odification and withdrawal of commitments , replicating the procedures in Article  XXI 
of the GATS, ar e governed by Article 6.18 . Notification of changes followed by negotiations with 
the affected Party and the requirement  to agree on compensatory adjustment are disciplined. If 
the Parties are unable to reach an agreement on compensatory adjustment, the ma tter shall be 
resolved through the use of the dispute settlement mechanism established by the Agreement.   
3.27.   Under Article 6.19, the Parties make a best -endeavour commitment to review their 
Schedules of specific commitments at least once every three years, or  earlier, at the request of 
either Party. The objective of such review shall be to facilitate the elimination of substantially all 
remaining discrimination between the Parties with regard to trade in services covered in Chapter 6 
over a period of time.  
3.28.   While Chapter 6 (on trade in services) contains disciplines that  also cover services provided 
under mode 3 (commercial presence), i nvestment is specifically addressed in Chapter 10. It 
applies to measures by a Party relating to investors of the other Party; i nvestments of investors of 
the other Party in the territory of the former Party; and, all investments in the territory of the 
Party in relation to health, safety and environmental measures. The explanatory notes attached to 
Annexes I and II (non -conforming  measures) clarify that, regarding commitments on supply of 
services through commercial presence, only the Schedules of specific commitments annexed to 
Chapter 6 on trade in services will apply. This means that the provisions in Chapter 10 on 
performance r equirements and on senior management and board s of directors (Articles 10.5 and 
10.6) will not be applicable to trade in services . It is therefore only the commitments in the form 
of reservations related to national treatment, performance requirements, and  senior management 
and board of directors (Articles 10.3, 10.5 and 10.6) for investments other than those for supply of 
a service through commercial presence that are described in Annexes I and II to the Agreement. 
In the event of any inconsistency between  the commitments in the form of reservations under 
Chapter 10 (investment) and the specific commitments made under Chapter 6 (trade in services), 
the provision s in Chapter 6 (trade in services) shall prevail to the extent of the inconsistency.   
3.29.   The followi ng section s identify, for each Party,  some of the main differences, by sector, 
between their respective  GATS schedule s and the sector -specific commitments under the 
Agreement. They should also be re ad in conjunction with Annex 6 -A and 6 -B (for trade in ser vices) 
and Annexes I, II of the Agreement  (for investment).  While t he comparison between the Parties'  
commitments under the GATS and under the Agreement is straightforward for the commitments in 
Annex es 6-A and 6 -B, as the Schedules are  structured as a  positive list,  for commitments on 
investment beyond those  in Chapter 6 (trade in services, also covering mode 3),  such a 
comparison is less easy. The sections on specific commitments below are followed by  a brief 
description of each Party's commitments under Chapter 10  on investment (section 3.4.1.3 for 
India and 3.4.2.3 for Korea . 
3.4.1   India  
3.30.   India's Schedule of specific commitments on trade in services is contained in Annex 6 -B. 
After identifying horizontal limitations in the GATS and in the Agreement, Table 3. 2 summarizes its WT/REG286/1  
 
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 specific commitments under the Agreement, by main sectors and sub -sectors and compares them 
with GATS commitments. A summary of India's commitments and restrictions applicable to 
investment follows. The following sections should be read in co njunction with Annexes 6 -A, I and 
II to the Agreement.  
3.4.1.1   Horizontal commitments  
3.31.   Under the GATS, India's horizontal commitments mainly cover mode 4 conditions and 
limitations, which serve as a basis for the India's commitments under Chapter 8 .14 In relation t o 
commercial presence, under the GATS, India has national treatment limitation s on collaboration 
with public sector enterprises or government undertakings as joint venture partners . Under the 
Agreement,  the GATS  are replicated, and additional conditions (F IPB approval in certain 
circumstances ; mandatory legal forms for foreign company to set up operations in India; and 
application of specific taxation laws) are added  in the horizontal commitments section, in 
connection with commercial presence.  
3.4.1.2   Sector -speci fic commitments  in trade in services  
3.32.   Under the Agreement, India's services schedule builds on its commitments under the GATS. 
It both expands the coverage of its specific commitments and improves market access and/or 
national treatment by withdrawing some limitations.  
Table 3.2 India: comparison between GATS and Agreement specific commitments15 
Sectors / Sub -sectors   GATS  FTA 
Compared to 
GATS  Trade in 
services  
(Annex 6 -A) 
1. Business services     
A. Profes sional  Services  Partial  Improved  Partial  
B. Computer  and Related  Services  Partial  Improved  Full 
C. Research  and Development  Services  Partial  Improved  Partial  
D. Real  Estate  Services  --- New Partial  
E. Rental/Leasing  Services  without  Operators  --- New Partial  
F. Other  Business  Services  Partial  Improved  Partial  
2. Communication services     
A. Postal  services  --- Similar  --- 
B. Courier  services  --- Similar  --- 
C. Telecommunication  services  Partial  Improved  Partial  
D. Audiovisual services  Partia l Improved  Partial  
E. Other  --- Similar  --- 
3. Construction and related engineering services     
A. General  construction  work for buildings  --- New Full 
B. General  construction  work for civil Engineering  Partial  Improved  Full 
C. Installation  and assem bly work  --- New Full 
D. Building  completion  and finishing  work  --- New Full 
E. Other  --- New Full 
4. Distribution services     
A. Commission  agents'  services  --- New Partial  
B. Wholesale  trade services  --- New Partial  
C. Retailing  services  --- Similar --- 
D. Franchising  --- Similar  --- 
E. Other  --- Similar  --- 
5. Education services     
A. Primary education services  --- Similar  --- 
B. Secondary education services  --- Similar  --- 
C. Higher education services  --- New Partial  
D. Adult education  --- Similar  --- 
E. Other education services  --- Similar  --- 
6. Environmental services     
A. Sewage services  --- Similar  --- 
B. Refuse disposal services  --- New Full 
                                                
14 See section 3.3.6 above.  
15 Improvements over existing GATS commitments are a reduction in limitations to market access 
and/or national treatment, a relaxation of the form of establishment under mode 3, and/ or additional 
commitments and increased coverage. However, horizontal limitations in the GATS Schedule of Specific 
Commitments and reservations covering all sectors are not included. Moreover, mode 4 commitments and 
limitations are, to a large extent, excl uded.  WT/REG286/1  
 
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 Sectors / Sub -sectors   GATS  FTA 
Compared to 
GATS  Trade in 
services  
(Annex 6 -A) 
C. Sanitation and similar services  --- New Full 
D. Other  --- Similar  --- 
7. Financ ial services     
A. All insurance  and insurance -related  services  Partial  Improved  Partial  
B. Banking  and other financial  services  Partial  Improved  Partial  
8. Health related and social services   Similar   
A. Hospital services  Partial  Improved  Partial  
B. Other Human Health Services  --- Similar  --- 
C. Social Services  --- Similar  --- 
D. Other  --- Similar  --- 
9. Tourism and travel related services     
A. Hotels  and restaurants (including catering)  Partial  Improved  Partial  
B. Travel  agencies  and tour operators  services  Partial  Improved  Full 
C. Tourist  guides  services  Partial  Improved  Partial  
D. Other  --- Similar  --- 
10. Recreational and cultural and sporting services     
A. Entertainment  services  --- New Partial  
B. News agency services  --- Similar  --- 
C. Libraries, archives, museums and other cultural services  --- Similar  --- 
D. Sporting and other recreational services  --- New Partial  
E. Other  --- Similar  --- 
11. Transport services     
A. Maritime Transport Services  --- New Partial  
B. Internal W aterways Transport  --- Similar  --- 
C. Air  Transport  Services  --- New Partial  
D. Space  Transport  --- Similar  --- 
E. Rail  Transport  Services  --- Similar  --- 
F. Road  Transport  Services  --- Similar  --- 
G. Pipeline  Transport  --- Similar  --- 
H. Services  auxiliary  to all modes  of transport  --- Similar  --- 
I. Other  Transport  Services  --- Similar  --- 
12. Other services not included elsewhere  --- Similar  --- 
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not cons idered.  
Partial:  Specific commitments subject to some limitation(s) under market access or national treatment, 
under any of the three modes.  
Full: Specific commitments not subject to limitation(s) under market access or national treatment, under 
any of th e three modes.  
---: No specific commitment.  
New: New commitments under the Agreement (full or partial, with or without limitations) which can, in 
most but not all cases, be seen as "improved".  
Improved: Overall improved commitments made under the Agreement  compared to those under the GATS.  
Similar:  Similar commitments (Agreement vs GATS); though possibly, in individual cases, with limited 
improvements and/or limited additional reservations.  
Source:  Draft Consolidated GATS Schedule of Specific Commitments (S /DCS/W/IND), prepared by the 
Secretariat (in 2003) and India's Schedules annexed to the Agreement.   
 
3.4.1.2.1   Business services  
3.33.   Compared to its GATS commitments, India  improves  the coverage of its commitments under 
the Agreement . In particular, it takes commitments , though conditionally and with limitations, in a 
number of new sub -sectors under professional services ( inter alia , accounting and book keeping 
services; architectural services; integrated engineering services; urban planning; medical and 
dental services;  veterinary services; and services provided by midwives). Coverage is also 
expanded to cover,  subject to certain conditions, computer and related services (full coverage 
without limitations); some research and development services; some real estate service s; and 
some rental/leasing services. Some limitations are also withdrawn for engineering services; and 
some research and development services (with an increased coverage of the subsector ). New 
commitments, with some limitations, are also made for a number of other business services, such 
as: advertising services; some management consulting services; services related to management 
consulting, technical testing and analysis services, as well as services incidental to fishing; mining; 
energy distribution; plac ement and supply services of personnel; some maintenance and repair of WT/REG286/1  
 
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 equipment; building –cleaning services; certain photographic services; packaging services; 
convention services; and some speciality design services.  
3.4.1.2.2   Communication  services  
3.34.   As under the G ATS, postal and courier services remain unbound under the Agreement. The 
coverage of telecommunication services is nevertheless expanded and commitments are also made 
in sub -sectors for which partial commitments were already made under the GATS. With  respe ct to 
audiovisual service s, certain conditions registered under the GATS are withdrawn and a link is 
made with India's revised offer at the WTO in the context of the DDA negotiations with respect to 
the numerical ceiling on the import of titles.   
3.35.   Chapter 7  contains rules and disciplines specific to telecommunication services, including on 
telecommunications transport networks and services and Chapter 9 foresees the possible 
negotiation of a co-production agreement (see below).  
3.4.1.2.3   Construction and related engin eering services  
3.36.   Full commitments, without limitations, are made under the Agreement, while only partial 
commitments, with some limitations, were made on general construction work for civil engineering 
under the GATS.  
3.4.1.2.4   Distribution services  
3.37.   As under the GATS , India makes no commitment s in retailing services, franchising, and 
services other than commission agents' services and wholesale trade services ( for which it has no 
GATS commitments ) for which some commitments, with limitations, are made under the 
Agreem ent.  
3.4.1.2.5   Educational services  
3.38.   With the exception of higher education services (unbound under the GATS) for which partial 
commitments are made, under the Agreement, all other education services remain unbound, as 
under the GATS.  
3.4.1.2.6   Environmental services  
3.39.   The whol e sector is unbound under the GATS. Under the Agreement, partial commitments 
are made, conditionally and with some limitations, with respect to refuse disposal services and 
sanitation and similar services.  
3.4.1.2.7   Financial services  
3.40.   While financial services are co vered under  the GATS, India expands under the Agreement 
the coverage of its commitments, though with some limitation s, particularly for insurance and 
insurance related services. For instance, life insurance is covered under mode 3 and with 
conditions. The provision of some insurance services through mode 3 is also guaranteed, with 
some limitations . For banking and other financial services excluding insurance, India's 
commitments under the Agreement essentially mirror those under the GATS , but provide some 
partial improvements such as grant of favourable consideration to the application for 
establishment of branches by Korean banks, etc . 
3.41.   Annex 6 -C contains specific disc iplines on financial services (s ee below).  
3.4.1.2.8   Health related and social services  
3.42.   As under the GATS, partial commitments are made for hospital services under the 
Agreement. Improvements are registered with respect to the supply of such services through 
modes 1 and 2 (unbound under the GATS) and the foreign equity ceiling is increased, as compared 
to India's commitments under the GATS.  WT/REG286/1  
 
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 3.4.1.2.9   Tourism and travel related services  
3.43.   Building on its GATS commitments, India improves its commitments for hotels and other 
lodging services (ful l commitment without limitation s), for travel agency and tour operator servi ces 
(full coverage and commitment, without limitation s), and for tourist guides services (partial 
commitment).  
3.4.1.2.10   Recreational, cultural and sporting services  
3.44.   While the entire sector is unbound under the GATS, some commitments are made under the 
Agreement, fo r modes 2 and 3 with respect to some entertainment services, and, for modes 1, 2 
and 3, for sporting and other recreational services (with some exclusions, such as lottery, 
gambling and betting services).  
3.4.1.2.11   Transport services  
3.45.   No commitment s are made under th e GATS for the whole sector. Under the Agreement, 
partial commitments are made with respect to international transport (freight and passengers 
excluding cabotage and offshore transport), and in connection with some maritime auxiliary 
services (with partial  coverage, under  certain conditions and with some limitations). With respect 
to air transport services, full commitments are made for maintenance and repair of aircraft for 
modes 1, 2 and 3 without any limitation s. 
3.4.1.3   Specific commitments and restrictions app licable to investment  
3.46.   India has a total of 20 reservations regarding investment in Annex I  on non-conforming 
existing measures with respect to Chapter 10 obligations . Of these  six are related to mining 
activities, two to energy -related services (atomic ene rgy and refining of petroleum), two to 
agriculture -related activities; an d four to other sectors (SMEs; gambling, lottery and betting; retail 
trading; and acquisition of land). Three remaining reservations are applicable to all sectors and 
refer to measure s that the Indian Government may continue to take, subject to a number of 
conditions (FDI Scheme; Portfolio Investment Scheme; Foreign Exchange Management Act; 
Industries Development and Regulation Act , etc. ). Measures related to investment in the defence 
industry or measures framed by the State Governments (at sub -federal level) are also reserved. 
India also reserves the right to maintain any measure relating to investment in services sectors 
subject to the condition that they do not violate the obligation s under Chapter 6 (trade in 
services).  
3.47.   Under Annex II, India makes 22  reservations , listing sectors, sub -sectors or activities for 
which it may maintain existing, or adopt new or more restrictive measures that do not conform to 
the obligations in relation  to commitments made on national treatment, performance requirements 
or senior management and boards of directors with respect to investment.  Four of these 
reservations  are horizontal and cover  all investment. Measures framed by State Governments are 
reserved. India also reserves the right to take future  measure s governed by obligations and 
commitments undertaken in  Chapter 6 (trade in services ) as well as  measures affecting services 
provided in the exercise of governmental authority . Preferences to economi cally backward regions 
or groups in the interest of balanced development of the economy and maintenance of social 
equality are also reserved. Besides the acquisition of land, four reservations relate to agriculture, 
forestry, and fishing, while thirteen re servations affect manufacturing processing (a number of 
them related to the agro -industry).  
3.4.2   Republic of Korea  
3.48.   Korea's  Schedule of specific commitments on trade in se rvices is contained in Annex 6 -A. 
After identifying horizontal limitations in the GATS and in the Agreement, Table 3. 3 summarize s its 
specific commitments under the Agreement, by main sectors and sub -sectors and compare s them 
with GATS commitments. A summary of Korea's commitments and restrictions applicable to 
investment follows. The following sections  should  be read in conjunction with Annexes 6 -B, I and 
II to the Agreement .  WT/REG286/1  
 
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 3.4.2.1   Horizontal  commitments  
3.49.   In its GATS schedule, Korea took commitments in 98 out of 155 services sectors. While 
partial commitments are made for many sectors, real estate ser vices, postal and courier services, 
the entire education sector, some environmental services, the entire health related and social 
services sector and recreational and cultural and sporting services, and some transport services 
(internal waterways transpor t, space, rail and pipeline transport services) are unbound under the 
GATS. Under the Agreement all the sectors except health related and social services are covered,  
at least partly,  though some sub -sectors remain unbound (under educational services, 
environmental services, recreational services and transport services) . 
3.50.   Under the Agreement,  with respect to commercial presence,  Korea's horizontal 
commitments replicate to a large extent the national treatment limitations under the GATS on the 
acquisition of land, while the remaining GATS market access limitations  maintained  under the 
Agreement concern restrictions on the acquisition of outstanding stocks of existing domestic 
companies in areas such as energy and aviation by natural person or juridical persons  of another 
Member. Foreign investment in newly privatized companies may also be restricted. The horizontal 
commitments and limitations under the GATS for the provision of services through mode 4 form 
the basis for Korea's  commitments under Chapter 8.16 
3.4.2.2   Sector specific commitments  in trade in services  
3.51.   Under the Agreement, Korea's  services schedule builds on its commitments under the GATS. 
It both expands the coverage of its specific commitments and improves market access and/or 
national treatment by withdraw ing some limitations. Under the Agreement however, unlike in its 
GATS commitments, a local presence requirement is introduced for the following services when 
supplied through  mode 1: engineering; integrated engineering; urban planning and landscape; 
rental  and leasing services relating to certain transport equipment and machinery; advertising; 
placement services of personnel; maintenance and repair of equipment; motion picture and video 
tape production and distribution ; construction ; and some environmental services ).17  
Table 3.3 Korea: comparison between GATS and Agreement specific commitments18 
Sectors / Sub -sectors  GATS  FTA 
Compared to 
GATS  Trade in services  
(Annex 6 -A) 
1. Business services     
A. Professi onal Services  Partial  Improved  Partial  
B. Computer  and Related  Services  Full Similar  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  
2. Communication services     
A. Postal  services  --- Similar  --- 
B. Courier  services  --- New Partial  
C. Telecommunication  services  Partial  Improved  Partial  
D. Audiovisual services  Partial Improved  Partial  
E. Other  --- Similar  --- 
3. Construction and related engineering services     
A. General  construction  work for buildings  Partial  Improved  Partial  
B. General  construction  work for civil Engineering  Partial  Improved  Partial  
C. Inst allation  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  
                                                
16 See section 3.3.6 above.  
17 These additional limitations have not been considered determining when comparing the commitments 
under the Agreement and under the GATS, as they are largely compensated by an expansion of the coverage 
of commitments in th e sectors / sub -sectors concerned.  
18 Improvements over existing GATS commitments are a reduction in limitations to market access 
and/or national treatment, a relaxation of the form of establishment under mode 3, and/or additional 
commitments and increased coverage. However, horizontal limitations in the GATS Schedule of Specific 
Commitments and reservations covering all sectors are not included. Moreover, mode 4 commitments and 
limitations are, to a large extent, excluded.  WT/REG286/1  
 
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 Sectors / Sub -sectors  GATS  FTA 
Compared to 
GATS  Trade in services  
(Annex 6 -A) 
B. Wholesale  trade services  Partial  Improved  Partial  
C. Retailing  services  Partial  Improved  Partial  
D. Franchising  Partial  Improved  Partial  
E. Other  --- Similar  --- 
5. Education services     
A. Primary education services  --- Similar  --- 
B. Secondary education ser vices  --- Similar  --- 
C. Higher education services  --- New Partial  
D. Adult education  --- New Partial  
E. Other education services  --- Similar  --- 
6. Environmental services     
A. Sewage services  Partial  Improved  Partial  
B. Refuse disposal services  Partial  Improved  Partial  
C. Sanitation and similar services  --- Similar  --- 
D. Other  Partial  Improved  Partial  
7. Financial services     
A. All insurance  and insurance -related  services  Partial  Improved  Partial  
B. Banking  and other financial  services  Partial Improved  Partial  
8. Health related and social services     
A. Hospital services  --- Similar  --- 
B. Other Human Health Services  --- Similar  --- 
C. Social Services  --- Similar  --- 
D. Other  --- Similar  --- 
9. Tourism and travel related services     
A. Hotels  and restaurants (including catering)  Partial  Improved  Partial  
B. Travel  agencies  and tour operators  services  Full Similar  Full 
C. Tourist  guides  services  Partial  Improved  Full 
D. Other  --- Similar  --- 
10. Recreational and cultural and spor ting services     
A. Entertainment  services  --- New Partial  
B. News agency services  --- Similar  --- 
C. Libraries, archives, museums and other cultural services  --- Similar  --- 
D. Sporting and other recreational services  --- New Partial  
E. Other  --- Similar --- 
11. Transport services     
A. Maritime Transport Services  Partial  Improved  Partial  
B. Internal Waterways Transport  --- Similar  --- 
C. Air  Transport  Services  Partial  Improved  Partial  
D. Space  Transport  --- Similar  --- 
E. Rail  Transport  Services --- New Partial  
F. Road  Transport  Services  Partial  Similar  Partial  
G. Pipeline  Transport  --- New Partial  
H. Services  auxiliary  to all modes  of transport  Partial  Similar  Partial  
I. Other  Transport  Services  Partial  Improved  Partial  
12. Other ser vices not included elsewhere  --- Similar  --- 
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not considered.  
Partial:  Specific commitments subject to some limitation(s) under market access or national treatment, 
under any of the three modes.  
Full: Specific commitments not subject to limitation(s) under market access or national treatment, under 
any of the three modes.  
---: No specific commitment.  
New: New commitments under the Agreement (full or partial, with or wi thout limitations) which can, in 
most but not all cases, be seen as "improved".  
Improved: Overall improved commitments made under the Agreement compared to those under the GATS.  
Similar:  Similar commitments (Agreement vs GATS); though possibly, in individu al cases, with limited 
improvements and/or limited additional reservations.  
 
Source:  Draft Consolidated GATS Schedule of Specific Commitments (S/DCS/W/KOR/Rev.1), prepared by the 
Secretariat (in 2003) and Korea's Schedules annexed to the Agreement.   
 
3.4.2.2.1   Business services  
3.52.   Korea  improves the coverage of its GATS commitments under the Agreement. In particular, 
it takes commitments, though conditionally and with limitations, in a some  sub-sectors under 
professional services  and research and development services  that are unbound under the GATS  WT/REG286/1  
 
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 (inter alia , legal services; veterinary services; research and development services on natural 
sciences; and interdisciplinary research and development services ). Coverage is also expanded to 
cover, subject to certain conditi ons, some real estate services . Some limitations are also 
withdraw n for a few sub -sectors. New commitments, with some limitations  (applicability of labour 
law rules and conditions for the establishment of corporations) , are also made in a number of 
other b usiness services, such as: some testing and analysis services, some services incidental to 
mining and manufacturing; some placement services of personnel; surface surveying; map -
making services; building cleaning services, publishing; and specialty design services . 
3.4.2.2.2   Communication  services  
3.53.   Postal services remain unbound under the Agreement, as under the GATS . Korea makes 
partial commitments however in i nternational courier services, though the services currently 
reserved by law to the Korean Postal Au thority are excluded. Korea's commitments on mode 1 are 
limited to the provision of courier service s by air and by sea, and local presence required.  Some 
limitations on certain telecommunication services are dropped as compared to Korea's 
commitments under the GAT S. As in the GATS o nly some aspects of audiovisual services are 
covered under the Agreement.  
3.54.   Chapter 7 contains rules and disciplines specific to telecommunication services, including on 
telecommunications transport networks and services and Chapter 9 for esees the possible 
negotiation of a co -production agreement (see below).  
3.4.2.2.3   Construction and related engineering services  
3.55.   Under the Agreement, the coverage of Korea's commitments is expanded while  some  
limitations  are also dropped compared to the GATS . 
3.4.2.2.4   Distri bution services  
3.56.   With the same coverage as under  the GATS, Korea's commitments under the Agreement 
relax a number of conditions, in particular for the provision of services through modes 1, 2 and 3. 
Services related to pharmaceuticals and medical goods rema in unbound for mode 1. Moreover, 
Korea's Schedule certifies that the supply of pharmaceuticals directly to the general public 
(Pharmacies) should be only allowed by certified pharmacists in order to protect public health.  
3.4.2.2.5   Educational services  
3.57.   While the ent ire sector is unbound under the GATS, Korea takes  some commitments, with 
limitations, with respect to some higher education services19, and some adult education services  
(provided by certain private teaching institutes (Hag -won) and lifelong education facilities). 
3.4.2.2.6   Environmental services  
3.58.   Like under the GATS, sanitation and similar services remain unbound under the Agreement . 
Korea's GATS commitments in sewage services and refuse disposal services  are however improved 
in particular for the provision of service s through commercial presence. The coverage of the 
commitments with respect to cleaning services of exhaust gases and noise abatement services, as 
well as environment testing and assessment services are expanded as compared to Korea's GATS 
commitments.  
3.4.2.2.7   Financial services  
3.59.   Korea's GATS commitments with respect to insurance services as well as banking services  
are largely replicated under the Agreement , with some limitations removed for insurance services 
and aspects of banking services newly covered under th e Agreement . 
3.60.   Annex 6 -C contains specific disciplines on financial services (see below).  
                                                
19 Only the following types of educ ation institutions are included: Junior colleges; universities; industry 
universities; technology universities; and intra -company universities) . WT/REG286/1  
 
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 3.4.2.2.8   Health related and social services  
3.61.   As under the GATS, the entire sector remains unbound under the Agreement . 
3.4.2.2.9   Tourism and travel related services  
3.62.   Building on its GATS co mmitments, Korea  improves its commitments for hotels and other 
lodging services (full commitment s without limitation s but with partial coverage, as under the 
GATS ), for travel agency and tour operator services (full coverage and commitment s, without 
limita tions), and for tourist guides services ( full commitment s). 
3.4.2.2.10   Recreational, cultural and sporting services  
3.63.   The entire sector is unbound under the GATS. Under the Agreement, partial commitments 
are made in entertainment services and sporting and other recreat ional services (for the latter 
only with respect to national treatment).  
3.4.2.2.11   Transport services  
3.64.   Korea builds on its GATS commitments, which are limited to some maritime transport 
services, some air transport services, road transport services, services auxilia ry to all modes of 
transport, and other transport services. Under the Agreement, it also takes new commitments for 
some rail transport services, and pipeline services. As under the GATS, international waterways 
transport services and space transport remain  unbound and the partial commitments made for 
road transport services and for services auxiliary to all modes of transport are not improved under 
the Agreement.    
3.4.2.3   Specific commitments and restrictions applicable to investment  
3.65.   Korea has a total of 11 reserv ations regarding investment in Annex I on non-conforming 
existing measures with respect to Chapter 10 obligations. The sectors covered include agriculture 
and livestock, air transportation, sea map making, low emission motor vehicles, manufacture of 
biolog ical products, publishing of periodicals, electric and gas industry, and product packaging. 
Korea's reservations cover existing measures ranging from investment prohibition s (for example in 
rice and barley farming); prior authorization require ment (for exa mple for conducting marine 
scientific research); maximum equity share  limits  (for example with respect to air transportation -
related activities); or nationality requirement s (for example for investment related to publishing of 
periodicals). Korea also rese rves the right to maintain any measure relating to investment in 
services sectors as long as  they do not violate the obligations under Chapter 6 (trade in services).  
3.66.   Under Annex II, Korea makes 29 reservations, listing sectors, sub -sectors or activities f or 
which it may maintain existing, or adopt new or more restrictive measures that do not conform 
with its commitments on national treatment, performance requirements or senior management 
and boards of directors with respect to investment.  Four of these res ervations are horizontal and 
apply to all sectors ; they are  the possibility to take measures necessary for preserving public 
order, measures related to defence, the transfer or disposition of equity interests or assets held by 
state enterprises or governme ntal authorities, and measures with respect to the supply of services 
in the exercise of governmental authority. Korea also reserves the right to take future measures 
governed by obligations and commitments undertaken in Chapter 6 (trade in services). 
Preferences to disadvantaged groups are also reserved. Besides the acquisition of land, four 
reservations relate to agriculture; hunting; forestry; and fishing, including measures on tourism in 
rural, fishery, and agricultural sites, and examination, certifica tion, and classification of agricultural 
raw materials and live animal products. The energy sector (atomic, electric, and gas) is covered by 
three specific entries in Annex II. Other reservations cover national electronic and information 
systems, social se rvices20, recycling activities in all manufacturing sectors; real estate 
development and supply; cadastral surveying services and cadastral map making; publishing of 
newspapers; any measures with respect to human health services; and activities involving th e 
conservation and restoration of cultural heritage. Possible non -conforming measures related to 
                                                
20 Social services cover law enforcement and correctional services; income security or insurance; social 
securit y or insurance; social welfare; public training; health and child care.  WT/REG286/1  
 
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 audiovisual, such as motion picture project, promotion, advertising, or post -production services; 
co-production arrangement for film or television production; or aspects related to the Korean 
nature of the audiovisual content of broadcasting programs, are also reserved. In connection with 
the transport sector, any measure with respect to internal waterways transportation, space 
transportation, international mari time passenger transportation services, maritime cabotage, and 
the acquisition of Korean vessels remain reserved.  
3.5  Regulatory provisions  
3.5.1   Domestic regulation  
3.67.   Article 6.7 replicates  to a large extent  the disciplines of Article VI of the GATS .  
3.5.2   Recognition  
3.68.   Under Article 6.8 , the Agreement mirrors  some of the provisions contained in  Article  VII of 
the GATS. The Parties also agree to encourage negotiations by professional bodies with respect to 
mutual recognition of education, or experience obtained, requiremen ts met, or licences or 
certifications granted in any regulated service sectors.  
3.5.3   Subsidies  
3.69.   Subsidies or grants, or any conditions attached to the ir receipt or continued receipt, 
whether or not they are offered exclusively to domestic services, servic e consu mers or service 
suppliers , are excluded from the application of the disciplines on trade in services (Article 6.2) .  
3.70.   The Parties agree to review the treatment of subsidies in the context of developments in 
multilateral fora to which both Parties are party.  Consultations are foreseen in the event a Party 
considers that its interest s have been adversely affected by a subsidy or grant provided by the 
other Party  (Article 6.16) . The dispute settlement mechanism established by the Agreement shall 
not be applicab le to any disputes that may arise between the Parties in that matter.   
3.5.4   Safeguards  
3.71.   Under Article 6.11, the Agreement prohibits a Party from taking safeguard actions against 
services and service suppliers of the other Party. Safeguard investigations shall no t be initiated. 
Moreover, the Parties shall review the issue of safeguard measures in the context of developments 
in international fora to which both Parties are party.   
3.72.   The rights and obligations of the Parties with regard to restrictions to safeguard the  balance 
of payment s are maintained as under Article XII of the GATS, the text of which is replicated in the 
Agreement (Article 6.13).   
3.73.   With regard to investment, the possible use by a Party of temporary safeguard measures is 
governed by Article 10.11.  
3.5.5   Other 
3.5.5.1   Monopolies and exclusive service suppliers  
3.74.   The provisions  on monopolies and exclusive service suppliers (Article 6.9)  replicate  the 
language of Art icle VIII of the GATS . 
3.75.   The Parties also recognise , in Article 6.10,  that certain business practices of ser vice 
suppliers, other than those falling under the provisions on monop olies and exclusive service 
suppliers  may restra in competition and thereb y restrict trade in services. The Agreement 
consequently contains disciplines on business practices  that mirror t he provisions contained in 
Article IX of the GATS, including with regards to consultations between the Parties.  WT/REG286/1  
 
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 3.6  Sector specific provisions on trade in services  
3.6.1    Financial services  
3.76.   Annex 6 -C applies to measures affecting the supply of financial services21, through any 
mode of supply as defined under the GATS. It contains additional disciplines on domestic 
regulation, in particular the possibility to take measures for prudential reasons, as well as a 
derogation to protect individual customers from the disclosu re of personal data and confidential or 
proprietary data. The Annex also contains rules on the recognition of prudential measures 
(paragraph 3 of Annex 6 -C); and transparency and treatment of certain confidential information 
(paragraphs 4 and 5 of Annex 6 -C). Moreover, arbitral tribunals agreed between or appointed by 
the Parties under Chapter 14 (on dispute settlement) for disputes on prudential issues and other 
financial matters shall have the necessary expertise relevant to the specific financial service  under 
dispute.  
3.77.   The disciplines of Chapter 10 (investment) , as applicable to the supply of financial services 
through commercial presence, shall not apply to measures adopted or maintained by a Party with 
respect to financial services, except the provision s on expropriation and compensation 
(Article  10.12) and on investor -state dispute settlement (Article 10.21) solely for claims that a 
Party has breached the disciplines on expropriation and compensation.22 
3.6.2   Telecommunication  
3.78.   Chapter 7 applies to measures by the Parties affecting trade in telecommunication services. 
It applies, subject to rules, regulations and licence conditions as applicable within the territory of 
each Party, under the framework defined in Chapter 6 (trade in services).  Measures relating to  
cable or broadcast distribution of radio or television programming are excluded from the coverage 
of Chapter 7. Moreover, the Parties remain free in relation to authorisation that may be given or 
requirement s to be addressed to service suppliers to establ ish, construct, acquire, lease, operate, 
or supply telecommunications transport networks or services, offered or not to the public 
generally.  
3.79.   Chapter 7 contains disciplines on access and use of public telecommunications transport 
networks and services (Art icles 7.3), which mirror the GATS Annex on telecommunications. It also 
establishes ru les on the conduct of major suppliers23 (Articles 7.4 through 7.7)  that build on the 
disciplines of the reference paper of the WTO negotiating group on basic telecommunicat ions of 24 
April 1996. Section C of Chapter  7 (Articles 7.8 through 7.13) covers other telecommunications -
related measures, including the independence of the Parties' telecommunications regulatory body 
or dispute resolution body; the provision of universal  services; conditions applicable to licences; 
the allocation and use of scarce telecommunications resources; the resolution of 
telecommunications dispute and appeal process; and transparency.  
3.80.   In the event of inconsistency between Chapter 7 and any other c hapter, in particular 
Chapter 6 on trade in services and Chapter 10 on investment, Chapter 7 prevails to the extent of 
the inconsistency (Article 7.14).  
3.6.3   Audio  visual  co-production  
3.81.   The Parties agree in Chapter 9 to consider and negotiate co -production agree ments in the 
audio  visual sector (Article 9.1). The scope of the agreement includes film, broadcasting 
programme s, game s, visual effects and animation for exploitation in theatres and on television, 
videocassettes, videodisc s, digital device s (CD-ROM, DVD,  VOD, mobile phone, etc.) or by a ny 
other form of distribution. Article 9.1 also foresees that n ew forms of audio visual production will 
                                                
21 Activities conducted by a central bank or monetary authority or by any other public entity in pursuit of 
monetary or exchange rate policies; activities forming part of a statutory sy stem of social security or public 
retirement plans; or activities conducted by a public entity for the account or with the guarantee or using the 
financial resources of the Government, are excluded from the coverage of Annex 6 -C. 
22 See paragraph 2 of Artic le 6.23 (services -investment linkage).  
23 The following aspects are covered: treatment by major suppliers; access to major suppliers' 
infrastructure; competitive safeguards; and interconnection.  WT/REG286/1  
 
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 be included in the co -production agreement through the exchange of notes between the Parties. 
Such co -production agreem ent shall be an integral part of the Agreement .24 
3.82.   Chapter 9 also contains disciplines on benefits that co -produced projects may be entitled to 
receive, including government support (Article 9.3).  
4  GENERAL PROVISIONS O F THE AGREEMENT  
4.1  Transparency  
4.1.  Article 6.2 0 contains general transparency provisions  applicable to trade in services , which 
include publication  of measures of general application in relation to trade in services. International 
agreements pertaining to or affecting trade in services to which a Part y is a signatory shall also be 
published. Disclosure of confidential information is also regulated (Article 6.21).  
4.2.  With respect to investment, Article 10.7 has specific disciplines on transparency and cover, 
inter alia , notification of laws, regulations, administrative rulings and judicial decision s of general 
application as well as international agreement s which pertain to or affect any matter covered by 
Chapter 10. A Party also must promptly respond to requests by the other Party on relevant 
matters and provide the corresponding information while not being required  to disclose confidential 
information in certain circumstances (Article 10.7).  
4.2  Current payments and capital movements  
4.3.  In relation to trade in services, a Party shall not apply restrictions on in ternational transfers 
and payments for current transactions relating to its specific commitments (Article 6.12) . The 
Parties maintain their rights and obligations as members of the IMF, provided that they shall not 
impose restrictions on any capital transa ctions inconsistently with their specific commitments 
regarding such transactions .25 
4.4.  The disciplines on market access (Article 6.4) clarify that if a Party undertakes a market 
access commitment in relation to the supply of a service through one of the four modes of supply 
and if the cross -border movement of capital is an essential part of the service itself, that Party is 
committed to allow such movement of capital. If a Party undertakes  a market -access commitment 
in relation to the supply of a service , it is committed to allow related transfers of capital into and 
from its territory.  
4.5.  In the context of disciplines on investment, each Party shall allow all transfers relating to an 
investment in its territory by an investor of the other Party to be made freely  and without delay. 
Examples of such transfers are listed in Article 10.10.  The application of certain laws, such as laws 
relating to, inter alia , bankruptcy, insolvency or the protection of the rights of creditors; issuing, 
trading or dealing in securitie s; criminal or penal offenses; social security, public retirement or 
statutory savings schemes remain reserved (Article 10.10).  
4.3  Exceptions  
4.6.  Exceptions , with regard to trade in services,  are contained in Articles 6.14 and 6.15  and, with 
regard to investment,  in Article 10.18 . 
4.7.  Moreover, with respect to investment, under Article 10.16, the Parties agree to maintain  the 
possibility, despite the disciplines applicable to investment, to adopt, maintain or enforce any 
measure consistent with the Agreement that is i n the public interest, such as measures to meet 
health, safety or environmental concerns. The Parties also recognize that it is inappropriate to 
encourage investment by relaxing domestic health, safety or environmental measures. A Party 
should, therefore, not waive or otherwise derogate from such measures as an encouragement for 
the establishment, acquisition, expansion or retention in its territory of an investment by an 
                                                
24 The Parties concluded the negotiations, and signed the "Agre ement between the Government of the 
Republic of Korea and the Government of the Republic of India on Cooperation in Audio -visual Co -production" 
on 18 May 2015. The agreement entered into force on 16 September 2015 . 
25 Restrictions to safeguard the balance o f payments remain reserved.  WT/REG286/1  
 
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 investor. Consultations may be requested in case a Party challenges measures by the ot her Party it 
believes are not consistent with the above.  
4.3.1   General  exceptions  
4.8.  The general e xception under  Article 6.14 (with regard to disciplines on trade in services) , 
replicates , to a large degree,  Article XIV of the GATS and inspires the general exceptio n applicable 
to investment -related measures (Paragraph 1 of Article 10.18).  
4.3.2   Security  exceptions  
4.9.  The security e xception under  Article  6.15 (with regard to disciplines on trade in services) , 
replicates  Article XIV bis of the GATS.  A security exception, also largely modelled on the text of 
Article XIV bis of the GATS, is also applicable to investment -related measures (Paragraph 2 of 
Article 10.18) .26 
4.3.3   Taxation  
4.10.   Nothing in the Agreement shall prevent a Party from adopting or maintain ing measures 
under which it accor ds more favourable treatment to persons of a third -party than to persons of 
the other Party as a result of a bilateral double taxation avoidance agreement between the Party 
and the non -party concerned (Article 6.14, paragraph 2).  
4.4  Accession and Withdrawal  
4.11.   The Agreement does not contain any accession provisions. Termination is, h owever, 
governed by Article 15.8 . In case the Agreement is terminated, the provisions of Chapter 10 
(investment), as well as other provisions, including Chapter 14 (dispute settlement ), that are 
necessary for or consequential to the application of the chapter on investment, shall continue to be 
in effect for investment made or acquired before the date of such termination for a further period 
of 15 years after the date of termination (A rticle 10.22). This is without prejudice to the 
application thereafter of the rules of general international law. As an exception, pre -establishment 
national treatment under Articles 10.3 and 10.8 shall however not continue to be applicable.  
4.5   Institutional  framework  
4.12.   A Joint Committee is established, inter alia , to review  the implementation  and application  of 
the provisions of  the Agreement (Article 15.2).27 Ad hoc and standing committees and working 
groups may  also be delegated responsib ilities by the Joint Committee.  
4.13.   Each Party shall designate a contact point to facilitate communications between the 
Parties.28 
4.6  Dispute settlement  
4.14.   Chapter 14  governs dispute settlement for the interpretation and application of  the 
Agreement,  with the exception of some aspects co vering trade in goods, not addressed in this 
factual presentation; disputes arising out of or under agreements or arrangements for mutual 
recognition (Article 6.8); consultations or disputes in relation to subsidies (Article 6.16); disputes 
on competition (Chapter 11), intellectual property rights (Chapter 12), and any areas of bilateral 
cooperation identified under Chapter 13 .  
4.15.   The Agreement foresees dispute forum shopping and the exclusion of the other forum once 
the forum is chosen (Article 14.3).  It con tains disciplines, largely modelled on WTO dispute 
                                                
26 The disciplines on security exception as applicable to investment shall be interpreted in accordance 
with the Parties' understanding regarding Security Exceptions for Investment (Annex 10 -B to the Agreement) 
and regarding Non -justiciability of Security Exceptions (Annex 10 -C to the Agreement).  
27 The ministerial Joint Committee was held in January 2011 and June 2016, respectively. In addition, 
the Parties hold the 1st Korea -India CEPA Upgrading Negotiation  round  in October 2016 . 
28 The Parties  have discussed a number of Korea -India CEPA issues through designated contact points.  WT/REG286/1  
 
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 settlement disciplines, on consultation; good offices, conciliation or mediation; request for an 
arbitral panel; composition of arbitral panels; termination of proceedings; proceedings of arbitral 
panels29; information and technical advice; initial and final reports by the arbitral panel and the 
implementation of final reports; and non -implementation, compensation and suspension of 
benefits. Chapter 14 also contain s rules on official language and expenses.  
4.16.   Chart 4.1  below summarizes the main steps of the dispute settlement mechanism 
established by the Agreement.  
Chart 4.1 Specific Dispute Settlement Mechanism established by the Agreement  
 
 
4.17.   In the event of a dispute on investment, an investor -State dispute settlement mechanism 
(ISDS) is established in Section C of Chapter 10  (investment). Article 10.21 govern s the 
proceedings of the ISDS . It invites the Parties to first seek to resolve the dispute through  
consultations and negotiations, which may include the use of non -binding third -party procedures. 
In case the dispute remains unsettled, it may be submitted to the courts or administrative 
tribunals of the Party concerned or to arbitrati on. Arbitration may be performed either in 
accordance with the ICSID Convention30 and the ICSID Rules of Procedure for Arbitration 
Proceedings; the ICSID Additional Facility Rules; the UNCITRAL Arbitration Rules; or any other 
arbitral institution or in acco rdance with any other arbitral rules, if the Parties to the dispute agree. 
Once made, the choice of the procedure is final. Article 10.21 contains additional modalities 
applicable to disputes submitted to the ISDS.  
4.18.   In relation to disciplines applicable to investment, and with respect to access to juridical and 
administrative procedures, non -discriminatory treatment shall be granted to investors of the other 
Party, with respect to access to a Party's courts of justice and administrative tribunals and 
agencie s in all levels of jurisdiction both in pursuit and in defence of such investors' right 
(Article  10.19).  
4.7  Relationship with other agreements concluded by the Parties  
4.19.   The Parties reaffirm their existing rights and obligations with respect to each other under  
existing bilateral and multilateral agreements to which both are party, including the WTO 
Agreement (Article 1.2). If any provision of the WTO Agreement that the Parties have incorporated 
into the Agreement is amended, the Parties shall enter into mutual consultation s within six months 
to consider amending the relevant provision of the Agreement, as appropriate  (Article 15.6) . 
4.20.   If, after the date of entry into force of the Agreement, a Party enters into a preferential  
agreement on trade in services with a t hird-party, the other Party may  request the application of 
                                                
29 Model rules of procedures are contained in Annex 14 -A. 
30 The ICSID Convention refers to the Convention on the Settlement of Investment Disputes between 
States and Nationals of other States, done at Washington, on 18 March 1965, as may be amended.  Source:  WTO Secretariat based on the Agreement.  
 Consultations (Art. 14.4)  
Establishment of an 
Arbitration Panel (Art. 14.6)  
Proceedings (Art. 14.7 -14.12)  
 and Annex 14 -A) 
Panel Report  
(Art. 19.11)  
Implementation of Final 
Reports  
(Art. 14.13)  Non-implementation: 
Compensation and 
suspension of benefits  
(Art. 14.14)  Goods offices, conciliation or 
mediation (Art. 14.5)  WT/REG286/1  
 
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 most favoured nation treatment . Such incorporation should maintain the overall balance of 
commitments undertaken by each Party under the Agreement (Article 6.3).  
4.21.   Table 4 .1 below shows the Parties' RTAs, notified and non -notified, other than the 
Agreement.  
Table 4.1 Republic of Korea and India: Participation in other RTAs (notified and 
non-notified in force), as of 16 February 2017  
RTA Name  Date of 
entry  into 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
REPUBLIC OF KOREA  
Republic of Korea - Colombia  15-Jul-16 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  
China - Republic of Korea  20-Dec-15 Goods & Services  2016 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 - Turkey  01-May-13 Goods  2013 GATT Art. XXIV  
Republic of Korea - United 
States  15-Mar-12 Goods & Services  2012 GATT Ar t. 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-Jan-10 
01-May-09 Goods & Service s 2010 GATT Art. XXIV &  
GATS Art. V * 
Republic of Korea - India 01-Jan-10 Goods  2010 GATT Art. XXIV * 
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  
Asia Pacific Trade Agreement 
(APTA) - Accession of China  01-Jan-02 Goods  2004 Enabling Clause  
Global System of Trade 
Preferences among 
Develo ping Countries (GSTP)  19-Apr-89 Goods  1989 Enabling Clause  
Asia Pacific Trade Agreement 
(APTA)  17-Jun-76 Goods  1976 Enabling Clause  
Protocol on Trade Negotiations 
(PTN)  11-Feb-73 Goods  1971 Enabling Clause  
Asia Pacific Trade Agreement 
(APTA)  13-Sep-13 Services  Not notified  
India  
ASEAN - India 01-Jan-10 
01-Jul-15 Goods  
Services  2010 
2015 Enabling Clause  
GATS Art. V  
South Asian Free Trade 
Agreement (SAFTA) - 
Accession of Afghanistan  07-Aug-11 Goods  2016 Enabling Clause  
India - Japan  01-Aug-11 Goods & S ervices  2011 GATT Art. XXIV & GATS Art. V  
India - Malaysia  01-Jul-11 Goods & Services  2011 Enabling Clause & GATS Art. V  
Republic of Korea - India 01-Jan-10 Goods  2010 Enabling Clause ** 
India - Nepal  27-Oct-09 Goods  2010 Enabling Clause  
MERCOSUR - India 01-Jun-09 Goods  2010 Enabling Clause  
Chile - India 17-Aug-07 Goods  2009 Enabling Clause  
India - Bhutan  29-Jul-06 Goods  2008 Enabling Clause  
South Asian Free Trade 
Agreement (SAFTA)  01-Jan-06 Goods  2008 Enabling Clause  
India - Singapore  01-Aug-05 Goods & Services  2007 GATT Art. XXIV & GATS Art. V  
India - Afghanistan  13-May-03 Goods  2010 Enabling Clause  
Asia Pacific Trade Agreement 
(APTA) - Accession of China  01-Jan-02 Goods  2004 Enabling Clause  
India - Sri Lanka  15-Dec-01 Goods  2002 Enabling Clause  WT/REG286/1  
 
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 RTA Name  Date of 
entry  into 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
South Asian Preferential Trade 
Arrangement (SAPTA)  07-Dec-95 Goods  1997 Enabling Clause  
Global System of Trade 
Preferences among 
Developing Countries (GSTP)  19-Apr-89 Goods  1989 Enabling Clause  
Asia Pacific Trade Agreement 
(APTA)  17-Jun-76 Goods  1976 Enabling Clause  
India - Thailand Early Harvest  01-Sep-04 Goods  Not notified  
SAARC Agreement on Trade in 
Services (SATIS)  29-Nov-12 Services  Not notified  
* As notified by the Republic of Korea. See WT/REG286/N/1 and WT/REG287/N/1.  
** As notified by India . See WT/COMTD/N/36.  
Source:  WTO Secretariat.  
 
4.8  Government procurement  
4.22.   Under Chapter 13 (bilateral cooperation), the Parties agree to endeavour to promote 
cooperative activities in the field of government procurement. Areas of cooperation are listed in 
Article 13.12. The dispute settlement mechanism established by the Agreement (Chapter 14) shall 
not be applicable to any disputes that may arise under Chapter 13 on bilateral cooperation.  
4.9  Intellectual property rights  
4.23.   Chapter 12  covers  intellectual property ri ghts. While each Party  reaffirm s its rights and 
obliga tions under the TRIPS Agreement , and commits to  provide adequate and effective protection 
to intellectual property rights of the nationals (natural or juridical persons) of the other Party in its 
territory (Article 12.2) , it may provide more extensive protection of intellectual property rights 
than under the TRIPS Agreement, provided that it is not inconsistent with the Agreement 
(Article  12.3).   
4.24.   Intellectual property rights enforcement consistent with t he TRIPS agreement shall be 
provided by the Parties (Article 12.4)  
4.25.   The Parties shall endeavour to enhance their cooperation in intellectual property and 
Article  12.5 lists a number of areas for cooperation between the Parties on that matter.  
4.26.   The provision s of Chapter 14 (dispute settlement) shall not apply to any matter or dispute 
arising under Chapter 12.  
4.10  Other  
4.10.1   Competition  
4.27.   The Parties agree to enter into consultations regarding competition matters, including the 
elimination subject to their respective co mpetitions laws, of anti -competitive practices that affect 
trade or investment between them (Article 11.3). They recognise the importance of cooperation 
between them and consultation s between their respective competition authorities for effective 
competiti on law enforcement. After coming into force of the Competition Act of India in its 
entirety, consultations between the Parties and the ir respective competition authorities may be 
undertaken as appropriate on various matters relating to competition, includi ng capacity building, 
exchange of information, notification procedures and principles of comity (Article 11.4).  
4.28.   The provisions of Chapter 14 (dispute settlement) shall not apply to competition matters.  
4.10.2   Bilateral cooperation  
4.29.   Under Chapter 13 (bilateral co operation), the Parties commit to establish and/or strengthen 
cooperation in a variety of areas, which are summarized below:  WT/REG286/1  
 
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 a. The Parties agree to act as catalysts to promote trade and investment and to cooperate 
in promoting trade and investment activities  by public and private enterprises of the 
Parties (Article  13.1).  
b. They agree to cooperate to promote the development of information and 
communications technology (ICT) and ICT -related services with a view to obtaining the 
maximum benefit of the use of ICT for the Parties. Forms and areas of cooperation are 
listed in Article 13.3.  
c. They also agree to cooperate to develop and promote cooperative activities in the fields 
of science and technology. Forms and areas of cooperation are listed in Article 13.4.  
d. Commi tments are made by the Parties to  cooperate in promoting close cooperation 
among SMEs as well as the relevant agencies of the parties. Forms of cooperation are 
listed in A rticle 13. 5.  
e. The Parties agree  to develop and promote cooperative activities in the fields of 
infrastructure and transportation. Areas of cooperation are listed in Article 13.6.  
f. They undertake to also promote  cooperative activities in the fields of textile and leather 
products. Cooperati on activities are listed in Article 13.8.  
g. Cooperat ion between the Parties shall also be facilitated in the fields of pharmaceuticals. 
Forms of cooperation are listed in Article 13.9.  
h. An agreement is found between the Parties to cooperate to facilitate cooperation in the 
fields of broadcasting, film, anim ation, and game.31 Areas of cooperation are listed in 
Article 13.7. The promotion of cooperation on broadcasting, film, animation, and game 
may be achieved through separate arrangements as mutually agreed between the 
Parties.  
i. The Parties agree to promote co operative activities in the fields of tourism. Cooperative 
activities are listed in Article 13.10.  
j. They also  agree to facilitate cooperation in the fields of health care. Cooperative 
activities are listed in Article 13.11.  
k. The Parties finally agree to de velop and promote cooperative activities in the field of 
energy. Forms of cooperation are listed in Article 13.2. Cooperation in research, design 
and development of various renewable energy technologies, including solar, wind, 
bioenergy, and others as mutu ally agreed, is also governed by Chapter 13. Article 13.13 
identifies various forms of cooperation between the Parties in these fields. It also 
establishes that the sharing of costs and intellectual property rights could be as mutually 
agreed on a case -to-case or project to project basis.  
4.30.   The dispute settlement mechanism established by the Agreement (Chapter 14) shall not be 
applicable to any disputes that may arise under Chapter 13 on bilateral cooperation.  
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31 Not including gambling.