G/SCM/Q2/KOR/59  
 
22 October 2018 
(18-6623) Page: 1/3 
Committee on Subsidies and Countervailing Measures  Original: English  
 
 
SUBSIDIES  
REPLIES TO QUESTIONS1 POSED BY NEW ZEALAND REGARDIN G 
THE NEW AND FULL  NOTIFICATION OF  KOREA2 
The following communication, dated 22 October 2018, is being circulated at the request of the 
Delegation of Korea . 
 
_______________  
 
Korea thanks New Zealand for its questions regarding Korean fisheries subsidy programmes and 
presents the following answers:  
Questions on "Support for Fishing Activities "  
1. Can Korea please confirm what it means by supporting "stable fishing operations"?  
Reply : 
Supportin g stable fishing operation indicates supports provided as a social safety net to maintain 
the livelihood of fishermen including small -scale artisanal fishers.  
2. Is this programme supporting inshore or distant water fishing?  
Reply : 
The programme does not support distant water fishing.  
3. Are the recipients large scale commercial enterprises or small individual operators?  
Reply : 
The recipients are mostly small -scale artisanal fishers, duly licensed under the relevant domestic 
fisheries legislation.  
Question s on "Support for Management of Distant Water Fisheries " 
4. Could Korea please confirm the fisheries and species targeted by this programme?  
Reply : 
The programme does not target specific fisheries or species.  
                                                
1 G/SCM/Q2/KOR/5 8. 
2 G/SCM/N/315/KOR. G/SCM/Q2/KOR/59  
 
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  5. Does this objective include ensuring that th e fisheri es being targeted are fished at 
sustainable levels and are not being over exploited?  
Reply : 
Under  the Distant Water Fisheries Development Act3, Korean distant water fishery operator  will 
receive criminal penalties  when it violates the conservation measures (e.g. catch limit) in the 
operating waters established by a regional fisheries management organization . Moreover, if an 
operator of a distant water fisheries business violates any rules of compliance, it is provi ded that 
the support or loan for the company engaged  will be suspended or the operator's eligibility for 
such support, subsidies, or loans be deprived. (Distant Water Fisheries Development Act 
Article  13.6) All distant water fishery operators are regulated  to operate following the RFMO's 
conservation measures, thus, subsidies do not induce overfishing.  
                                                
3 Article 13 (Rules for Distant Water Fishery Operators to Observe)  
(1) Each operator of a distant water fisheries business and a person engaged in distant water fisheries 
(hereinafter referred to “an operator, etc. of a distant water fisheries business) shall conscientiously conduct 
fishing operations within the permitted scope of operations and shall comply with resolutions made by 
international fisheries organizations for the conservation and management of resources and international 
standards  regarding fisheries in high seas.  <Amended by Act No. 13001, Jan. 6, 2015>  
(2) No operator, etc. of a distant water fisheries business shall engage in any of the following activities 
related to serious violations in overseas waters:  <Amended by Act No. 11982, Jul. 30, 2013; Act No. 13001, 
Jan. 6, 2015>  
1. Conducting fishing operations without any valid licence, authorization or permit, or registration issued 
by the state of flag or the relevant coastal state;  
2. Failing to maintain such the amount of cat ch and detailed records thereof (including the data 
transmitted from fishing vessels monitoring system) as demanded by an international fisheries organization, or 
of falsely reporting such allowable amount of catch;  
3. Conducting fisheries operations in an y marine preserve established by an international fisheries 
organization or any coastal state, conducting fisheries operations during a prohibitive period of fisheries, or 
conducting fisheries operations without being allocated a catch quota or in excess o f the catch quota;  
4. Directly conducting fisheries operations for any resources, the fisheries operations of which are 
tentatively or permanently prohibited;  
5. Fishing with prohibited or unauthorized fishing gear;  
6. Forging or concealing a fishing ves sel’s unique marking/identifier and registered matters;  
7. Concealing, damaging, or removing any evidence related to inspections onboard a vessel;  
8. Fisheries in violation of conservation and management measures of an RFMO in the areas under the 
purview o f such RFMO;  
9. Transhipping fish or a joint fishing operation, with a vessel listed by any international fisheries 
organization engaged in illegal, unreported, or unregulated fishing or assisting such vessel;  
10. Interrupting the duty performance of an ob server, such as the movement, embarking, disembarking 
and inspection;  
11. Interrupting the embarking, disembarking, ship inspection, and communications of an inspector of 
the Port State or on board or violate any measure following an inspection by the Por t State;  
12. Failing to install a fishing vessel monitoring system or intentionally not operating the installed 
fishing vessel monitoring system.  
(3) The Minister of Oceans and Fisheries shall take measures necessary to improve working conditions 
for non -Korean crew on board a Korean -flagged vessel and to prevent the infringement on their human rights 
and shall ensure that an operator of a distant water fisheries business, etc. complies with such measures.  
<Newly Inserted by Act No. 11982, Jul. 30, 2013; A ct No. 13001, Jan. 6, 2015>  
(4) Rules with which an operator of distant water fisheries business, etc. shall comply may be 
prescribed by Ordinance of the Ministry of Oceans and Fisheries for the implementation of international 
agreements, the sustainable u se of fishery resources, etc., in addition to the rules prescribed in paragraphs (1) 
through (3).  <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 11982, 
Jul. 30, 2013; Act No. 13001, Jan. 6, 2015>  
(5) If deemed necessary for  conservation and management measures of international fisheries 
organizations, the Minister of Oceans and Fisheries may require an operator of a distant water fisheries 
business, etc. to cooperate in an inspection conducted on board a vessel and to take c harge of necessary 
measures in accordance with the procedure prescribed by international fisheries organizations.  <Amended by 
Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 13001, Jan. 6, 2015>  
(6) If an operator of a distant water fis heries business, etc. violates any rule prescribed in paragraphs 
(1) through (4), the Minister of Oceans and Fisheries may suspend support for the company engaged in distant 
water fisheries under Article 25 or subsidies or loans under Article 26 or may dep rive the operator of his/her 
eligibility for such support, subsidies, or loans.  <Newly Inserted by Act No. 11982, Jul. 30, 2013; Act 
No. 13001, Jan. 6, 2015>  
(7) An operator of a distant water fisheries business, etc. shall, where having obtained a licens e, permit, 
or authorization abroad from an coastal state or having violated any rule under paragraphs (1) through (4), G/SCM/Q2/KOR/59  
 
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Questions on  "Support for Replacement and Modernization of Old Distant -Fishing 
Vessels and its Equipment " 
 
6. Does this programme aim to replace older vesse ls with larger ones with increased 
capacity, or is its aim to maintain a similar level of capacity?  
 
Reply : 
 
The programme aims to replace old vessels that have safety concerns with safe vessels, and its 
goals are neither the maintenance nor the increase o f the vessel size or capacity.  
 
7. In general does Korea have a timeline for the phase out of its fisheries programmes?  
 
Reply : 
 
Government support is provided for individual policy objectives such as  enhancing social safety net  
for small -scale artisanal f ishers, ensuring safety of vessels and crews , promoting sustainability of 
fisheries resourc e through effective management and conservation  measures,  etc. If unintended 
consequences occur , the programmes  will be duly modified to tackle them, however, for now, 
there is no plan of discontinuance  
 
In addition, Korea  agrees on prohibiting fisheries subsidies related to IUU fishing and certain forms 
of subsidies contributing to over -capacity. However, reasonab le consideration for general 
exceptions is required for subsidies for public policy objectives mentioned above . 
 
 
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report the fact, causes, etc. to the Minister of Oceans and Fisheries.  <Newly Inserted by Act No. 13001, 
Jan. 6, 2015>  
(8) Every investi gation as to w hether violations exist against any rules in paragraphs (1) through (4) to 
be observed by an operator of a distant water fisheries business, etc. and every disposition against violations 
shall be proceeded with as rapidly as possible.  <Newly  Inserted by Act No. 13001, Jan. 6, 2015>  
(9) The Minister of Oceans and Fisheries shall immediately take the following measures against an 
operator of a distant water fisheries business, etc. whose violation or suspicious violation of a rule under 
paragra ph (2) has been detected:  <Newly Inserted by Act No. 13001, Jan. 6, 2015>  
1. Immediate suspension of activities for fisheries operations;  
2. Entry into a designated port;  
3. Prohibition of discharge and transshipment of the catch of fish.  
(10) Matters ne cessary for measures to be taken under paragraph (5), reporting procedures under 
paragraph (7), and other related matters shall be prescribed by Ordinance of the Ministry of Oceans and 
Fisheries.  <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar . 23, 2013; Act No. 11982, Jul. 30, 
2013; Act No. 13001, Jan. 6, 2015>