WT/TPR/M /346/Add.1  
9 December 2016  
(16-6727) Page: 1/226 
Trade Policy Review Body  
11 and 13 October 2016  Original: English/French/Spanish  
anglais/français/espagnol  
inglés/francés/español  
 
  TRADE POLICY REVIEW  
THE REPUBLIC OF KOREA 
MINUTES  OF THE MEETING  
Addendum  
Chairperson: H.E. Mrs. Irene Young (Hong Kong, China)  
This document contains the advance written questions  and additional questions by WTO 
Members , and replies provided by  the Republ ic of Korea . 
 
 
Organe d'examen des politiques commerciales  
11 et 13 octobre 2016  
EXAMEN DES POLITIQUE S COMMERCIALES  
RÉPUBLIQUE DE CORÉE 
COMPTE RENDU DE LA R ÉUNION  
Addendum  
Présidente : S.E.  Mme. Irene Young (Hong Kong, Chine)  
Le présent document contient le s questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses  fournies par  la République de 
Corée . 
 
 
Órgano de Examen de las Políticas Comerciales  
11 y 13 de octubre de 2016  
EXAMEN DE LAS POLÍTI CAS CO MERCIALES  
REPÚBLICA DE COREA 
ACTA DE LA REUNIÓN  
Addendum  
Presidenta: Excma.  Sra. Irene Young (Hong Kong, China)  
En el presente documento figuran las preguntas presentadas anticipadamente por escrito  y 
las preguntas adicionales de los Miembros de la OMC,  así como las respues tas facilitadas por  la 
República de Corea . WT/TPR/M/346/Add.1  
 
- 2 - 
 
  QUESTIONS FROM THE UNITED STATES  
 
 
PART I: QUESTIONS ON THE SECRETARIAT REPORT (WT/TPR/S/346)  
 
1 ECONOMIC ENVIRONME NT 
1.3 Main Macroeconomic Policy Developments  
1.3.3 Structural policies  
1.3.3.5  Labour market policies  
Page 20, paragraph 1.17 : The Secretariat Report states that labor market rigidities remain in 
place. What plans does the government have to address this, particularly alleviating the dual 
structure of the labor -market (regular and n on-regular workers)?  
ANSWER :  
On the basis of the Tripartite Agreement between the government, workers and employers, the 
Korean government is carrying out labor market reform. The reform focuses on expanding a room 
for job creation and alleviating the dua l structure of the labor market by improving fundamentals 
of the market.  
Addressing the dual structure in labor market needs various policies and government -wide 
cooperation. Based on the Tripartite Agreement, relevant ministries jointly announced 
measures  to promote employment through addressing labor market dualism in March 2016.  
The measures are mainly focused on the efforts to establish fair business practice between 
principal contractors and subcontractors and competency -based HR management practice 
including fair wage system so as to reduce rigidities and unfairness.  
Efforts are underway to establish mutually beneficial foundation in labor market in cooperation 
between large companies and SMEs and to provide support for co-growth of principal - and 
sub-contractors in a bid to expand cooperation between large companies and SMEs.  
Considering business structures are vertical and multilevel where difficulties are becoming worse 
from first -tier contractors to second - and third -tier contractors, the Korean gov ernment is 
providing various support for mutually beneficial employment that will lead to youth employment 
and improvement of working conditions at subcontractors.  
Not only that, more efforts are made to improve treatment towards non -regular workers and 
address discrimination against them, to protect vulnerable people and youth, to conduct intensive 
monitoring on illegal dispatch of workers, and to strengthen protection of construction workers and 
youth.  
 
2 TRADE AND INVESTME NT REGIME  
2.5 Trade Laws and Reg ulations  
2.5.1 Regulatory reform  
Page 31, paragraph 2.20 : The Secretariat Report states that the government selected seven 
sectors for review. Is Korea considering additional sectors for regulatory reform?  
ANSWER :  
Seven sectors were selected upon its gro wth potential in the Korean economy and not yet decided 
regarding addition  sectors to be considered.  
2.5.2 Trade -related legislation  
Page 33, paragraph 2.25, table 2.1 : The Secretariat Report notes that the Act on Special Cases of 
the Customs Act for the Implementation of Free Trade Agreements was most recently amended in 
2015. Can the Government of Korea detail if this update provides expanded procedures to enable 
traders to substantiate claims for preference under free trade agreements? Please also detai l the 
process followed to provide opportunities for interested persons to comment before adoption of 
administrative policies related to free trade agreements.  
 
ANSWER :  
Main purpose of the amendment was to enhance public understanding on the legislation by  
streamlining and re -organizing rather complicated structure of the previous articles. And the 
outreach programs for SMEs on origin certification were also introduced with a view to boosting 
FTA utilization  
Prior to any adoption of administrative policies including laws and regulations, related authorities 
should pre -announce its plan to hear and gather public opinion according to the Administrative WT/TPR/M/346/Add.1  
 
- 3 - 
 
  Procedure Act. (at least 40days save the exceptional cases)  
 
3 TRADE POLICIES AND  PRACTICES BY MEASURE  
3.2 Me asures Directly Affecting Imports  
3.2.9 Standards and technical requirements  
3.2.9.2 Sanitary and phytosanitary measures  
3.2.9.2.2 Quarantine regulations  
Page 77, paragraph 3.102 : The Secretariat Report states animal and animal products are subject 
to quar antine regulation. The United States notes that egg product heat treatment requirement for 
quarantine purposes and food safety purposes is different and is causing confusion in trade.  What 
are Korea's plans for addressing this concern?  
ANSWER :  
The heat tr eatment requirement for preventing introduction of infectious animal diseases is the 
same as regulated in the Terrestrial Animal Health Code of the OIE, and products that underwent 
the required heat treatment are allowed to be imported.  
The heat pasteuriza tion standard for egg products is to ensure microbiological food safety in final 
products. According to Processing Standards and Ingredient Specifications for Livestock Products, 
Pasteurization temperature and time management shall be thorough following th e properties of the 
product. Especially, in terms of heat formed products, it shall heat pasteurized at 90°C for 20  min 
and whole egg liquid shall be heat pasteurized at 64°C for 2 min and 30 sec. In addition, liquid 
yolk shall be heat pasteurized for 3 min and 30 sec at 60°C and liquid white shall be heat 
pasteurized for 9 min and 30 sec at 55°C or methods that have more outstanding effectiveness 
shall be applied.  
 
3.3 Measures Directly Affecting Exports  
3.3.5 Export finance, guarantees, and insurance  
Page 85, paragraph 3.130 : According to its 2014 Annual Report, the Export -Import Bank of Korea 
(KEXIM) is responsible for the operation of the Economic Development Cooperation Fund (EDCF), 
under which 3.6% of loan commitments made in 2014 were for agriculture , forestry and fishing. 
Would Korea please provide the information regarding export financing for agriculture as requested 
by the WTO Committee on Agriculture on  20 January 2016?  
 
ANSWER :  
It is difficult for now to collect accurate data relevant to export  financing for agriculture. The 
EDCF(Economic Development Cooperation Fund) is a type of loan provided for supporting 
agricultural infrastructure in developing countries and is not related to export of agricultural 
products.  
 
Page 86, paragraph 3.132 : Do a ny of the export insurance or guarantee programs operated by the 
Korea Trade Insurance Corporation (K -Sure) cover agricultural products?  
 
ANSWER :  
Currently we are not collecting data of these schemes for each export item.  
 
3.4 Measures Affecting Productio n and Trade  
3.4.6 Intellectual property rights  
3.4.6.1 Industrial Property  
Page 106, paragraph 3.205 : The Secretariat Report makes reference to geographical indications 
(GIs) protected via multilateral or bilateral agreements. Can Korea clarify whether any  procedural 
mechanisms, such as examination or opposition, are applied to proposed terms sought for 
protection as geographical indications via multilateral or bilateral agreements? Will interested third 
parties (including prior rights holders or parties wh o use these proposed terms as common names 
for goods in Korea) have the ability to object to proposed terms before they are protected via 
multilateral or bilateral agreements? Will a party be capable of seeking a cancellation of a term 
once it is protected ? 
 
 
ANSWER :  
Under the existing ordinance of Ministry of Trade, Industry & Energy (MOTIE), "Regulation on the 
Opposition Procedure for the Geographical Indications Protected Through Trade Agreements ", any WT/TPR/M/346/Add.1  
 
- 4 - 
 
  person, including an interested party may raise obj ection to the proposed terms sought for 
protection as Geographical Indications (GIs) via trade agreements.  
The above ministerial regulation stipulates that proposed lists of geographical indications are 
posted in the official gazette for 60 days within whi ch any person may raise objections with the 
reasons for seeking such objections. If MOTIE disapproves the seeking of objection for the 
protection of GIs, MOTIE shall inform such decision to the party  who raised objection within 
10 days of such decision.  
Under the Trademark Act, an interested party or examiner may request a trial for invalidation, and 
a trial for revocation may also be requested. In addition, under the Agricultural and Fishery 
Product Quality Control Act, ministers of relevant ministries, Mi nistry of Agriculture, Food and Rural 
Affairs and Ministry of Oceans and Fisheries, may cancel the registration of GIs, or an interested 
party may file for adjudication to nullify or cancel the GIs.  
 
Page 106, paragraph 3.206 : The Secretariat Report notes that "the Agricultural and Fishery 
Product Quality Management Act (2011) specifies GIs for agricultural and fish products." Will Korea 
take into account third party prior rights or whether the proposed term is considered the common 
name for a good in Korea  when determining protection under this Act? Do third parties have an 
opportunity to challenge a term before it is protected? Will a party be capable of seeking a 
cancellation of a term once it is protected?  
 
ANSWER : 
Korea recognizes the third party prior rights for GIs registered under the Agricultural and Fishery 
Product Quality Management Act and we take into account whether the proposed term infringes 
upon any registered terms of a third party. A third party can challenge a term within 2 months 
after th e announcement of GI registration and an interested party may seek cancellation of a 
registered GI.  
The companies which are consisted of those who are involved in the manufacture or production of 
agricultural and marine products or its processed goods with  geographical indication are subjected 
to the registration of GI. Third party prior rights are taken into account for registered GIs, but the 
product name(i.e. Wando abalone) is allowed to be used by any parties even if they are not a part 
of the ones whic h registered for the GI.  
There is a period and procedure to raise objection before GI is registered, and the term is 
subjected to cancellation in case it is assumed to be below standard or if the means of display is 
violated.  
 
 
3.4.6.2 Copyright and relate d rights  
Page 109, paragraph 3.216 : The Secretariat Report states that "[i]n 2014, a variety of policies 
under the theme of "cultural prosperity"  to protect the rights of the creator while facilitating the 
use of the created works were pursued including: t he introduction of an open license system for 
public copyrighted works; the development of copyright protection technology for the smart device 
environment; the strengthening of monitoring of illegal websites; and the improvement of 
copyright awareness thr ough education and promotion." Please provide further details about the 
scope and operation of the "open licence system for public copyrighted works." Are there any 
statistics available regarding the quantity of works involved over the last three years? On  a related 
subject, we understand that the Copyright Act has a number of exceptions and limitations, 
including a "Fair Use of Copyrighted Material" provision in Article 35 -3. Has there been any 
litigation involving the invocation of this Article?  
 
ANSWER : 
- Since 2012, Korea has developed and created the open license system for copyrighted works 
produced by government organizations, called "KOGL (Korea Open Government License) ", to 
stimulate the use of such works in the private sector. KOGL has its own logo , and ea ch public 
organization puts this logo image on a cover of its publications open to the public. The publications 
with the KOGL logos can be accessed via the KOGL web portal ( http://www.kogl.or.kr ).  
Also, as Korean citizens can freely access works p roduced or exclusively owned by the national 
government or a local government as set forth in Article 24bis (Free Use of Public  Works) of the 
Copyright Act, the Korean government has strengthened KOGL -related projects, such as the KOGL 
license distribution  services, expansion of KOGL training program for practitioners (to increase 
their awareness of the system), and improvements of KOGL web portal functions.  
Please see the table below for available data on KOGL for the past 3 years.  
  WT/TPR/M/346/Add.1  
 
- 5 - 
 
  YEAR  2013  2014  2015  AUG. 2016  
Number of 
Participant 
Organizations  
(Those that have put 
KOGL logo images on 
their publications)  46 103 168 187 
Number of Public 
Works  Around 1  million  around 3 million  around 5 million  around 5.8 million  
 
Aside from listing limitations on Auth ors' rights, the 2011 amendment to the Copyright Act 
introduced a more comprehensive and formal provision on a fair use of copyright -protected works. 
In addition, the 2016 amendment to the Act further modified* the provision to avoid limited 
interpretation .  
 
* For example, in Article 35ter, in section (1), the words, "for the purposes of coverage, criticism, 
education, research, etc ", were deleted. Also, in section (2), in subsection 1, the words, "for profit 
or non -profit ", were deleted.  
 
There are not ma ny court cases available which invoked the "Fair Use of Copyrighted Material" 
provision in Article 35 ter because the provision is fairly new. That being said, there is one lower 
court case involved with the fair use provision. The details of the case are a s follows:  
* A blogger used a food image found on Google as a thumbnail of her blog post. The blogger wrote 
the post to encourage vegetarian diet, in which the food image was used. The food in the image, 
however, was being actually sold in a seafood resta urant, and the restaurant owner who took the 
original photo sued the blogger for copyright infringement when he found the image was used 
without his authorization. The court, however, decided that using the respective image as a 
thumbnail is considered a c ase of "Fair Use of Works " because first, neither the image nor the blog 
post was used for profit, second, the influence or the importance of the image within the blog post 
was minimal, third, the image had a negligible effect on the relevant food market a nd value, 
fourth, the use of the image did not conflict with a normal exploitation of the work in Korea, and 
finally, the author 's profit was unduly harmed. ( Seoul Western District Court Decision 2015 Gaso 
308746 Decided 12 May 2015)  
 
Page 109, paragraph 3 .217: The Secretariat Report states that "[c]omp ulsory/statutory licenses 
(e.g. where the right holder cannot be identified or traced) relating to uses of performances, 
phonograms, broadcasts and databases may be granted under strict procedural conditions. " Please 
confirm that this system of compulsory/statutory licenses refers to what is also known as "orphan 
works" legislation. If this is not the reference, then please provide additional details about these 
licenses and their conditions.  
 
ANSWER : 
- Compul sory and statutory licenses set forth in the Copyright Act are not just limited to the use of 
orphan works.  
In accordance with the Copyright Act, statutory license is granted when one:  
1) Uses copyright -protected works in a textbook, or reproduces/perform s/broadcasts or transmits 
some part of the works for educational purposes (A rticle 25 of the Copyright Act)  
 
2) Prints an electronic copy of protected works in a library, or transmits the works so that he/she 
can access them in another library (Article 31 of the Act)  
The reason why Korea grants statutory licenses rather than compulsory licenses in the above 
cases is because using copyright -protected works for educational purposes or in the library is such 
a widespread activity which occurs on a regular basi s. Hence, it is unreasonable to ask each time a 
prior authorization from a rights holder, which is a necessary step for compulsory licenses. 
Therefore, if one wants to use protected works in accordance with the statutory license provisions 
mentioned above,  paying the compensation amount set by the Minister of Culture, Sports, and 
Tourism to an entity designated by the same Minister is sufficient enough to satisfy the 
requirements of a statutory license.  
 
 
 WT/TPR/M/346/Add.1  
 
- 6 - 
 
  On the other hand, compulsory license is granted wh en: 
1) One is unable to obtain authorization from the rights holder because he/she cannot find who the 
rights holder is or where the rights holder lives despite considerable effort to figure out on his/her 
part. (Exploitation on Works Whose Holder of Autho r's Property Right is Unknown, Article 50 of the 
Act) 
 
2) A broadcasting organization , which intend s to broadcast protected works for public benefit s, has 
negotiated with the rights holder , but failed to reach an agreement  (Article 51 of the Act)  
 
3) One h as negotiated with the rights holder of a commercial phonogram which he/she intends to 
use its sound recording in order to produce a new phonogram, but failed to reach an agreement. 
Please note that the phonogram used will have been released for at least t hree years from the 
date of its first sale in South Korea (Article 52 of the Act).  
If one wants to use the protected works in accordance with the compulsory license provisions 
above, he/she must submit a request form to the Korea Copyright Commission, wit h documents 
proving he/she has put considerable effort to find the author of the works (Article 50 of the Act) or 
to reach an agreement with the rights holder (Article 51 and 52). The Commission, then, will 
evaluate the documents and decide whether to gran t the license or not.  
 
Page 109, paragraph 3.218 : The Secretariat Report notes that the "2016 amendment to the Act, 
effective as of 23 September 2016, covers, inter alia , the establishment of a Copyright Protection 
Agency under the MCST…" Please provide s ome more details about the organization, size, funding, 
and operations of this new Agency. What is the relationship between the Copyright Protection 
Agency and the Korea Copyright Commission (established via Article 112)?  
 
ANSWER : 
- The Korea Copyright Pro tection Agency will be established on 30 Sep tember 2016, by 
Article  122(2) of the Copyright Act. It will comprise 79 persons under 10 teams. Its planned 
budget for 2017 is ₩13,287,000,000. The organization is assigned to a range of functions, 
including, but not limited to, planning and enforcing copyright protection measures, investigating 
cases of copyright infringement, researching and developing copyright protection strat egies, 
evaluating a case involved with a correction order issued by the Minister of Culture, Sports, and 
Tourism, and making corrective recommendations to online service providers in accordance with 
the Copyright Act. The Korea Copyright Protection Agency is a separate and independent entity 
from the Korea Copyright Commission, but the latter 's copyright protection function has been 
transferred to the former.  
 
4 TRADE POLICIES BY SECTOR  
4.2 Agriculture and livestock  
4.2.2 Policy developments  
4.2.2.1 Border measures  
4.2.2.1.3 Export restrictions, and export subsidy programmes  
Page 117, paragraph 4.26 : The Secretariat Report describes Korean export subsidy activities.  The 
Republic of Korea has not updated its export subsidy notifications (Tables ES:1, ES:2 and  ES:3) 
since 2010 when reported data for calendar years 2005 to 2008.   
1. Could the Republic of Korea please indicate when it plans to update its export subsidy 
notifications in accordance to its WTO commitments?   
2. Could the Republic of Korea please provide a fuller description of its agricultural marketing 
programs and report the amounts provided to this activity?  
ANSWER : Korea is currently on the phase of finalizing and confirming its export subsidy 
notifications in accordance with Article 9.4 of the Agreeme nt on Agriculture and plans to submit 
the notifications soon. Agricultural marketing program is a project through which the government 
partially subsidizes logistical costs of agro -livestock products on the basis of Article 9.4 of the 
Agreement on Agricult ure and the total value of subsidies is as below. The details will be included 
in our next export subsidy notification.  
 
year 2009  2010  2011  2012  2013  2014  
total value  
(₩ billion ) 39.7 39.4 35.5 37.0 31.1 31.6 
 WT/TPR/M/346/Add.1  
 
- 7 - 
 
  4.2.3 Key sub -sectors  
4.2.3.3 Biotech crops  
Page 121, paragraph 4.42 : The Secretariat Report describes Korea's biotech crop review 
policy.  Could Korea confirm that the Ministry of Food & Drug Safety (MFDS) conducts a safety 
assessment for food grains containing biotech ingredients, in consultation with the Rural 
Development Administration (RDA), the National Institute for Ecology (NIE), and the National 
Fisheries Research & Development institute (NFRDI) and describe the role of these agencies in the 
context of general  biotech crop review procedure?  
 
ANSWER :  
The Ministry of Food & Drug Safety (MFDS) conducts  food safety assessments  in accordance 
with the Food Sanitation Act.  
Also, according to the Act on Transboundary Movement, etc., of Living Modified Organisms, 
following institutions are in charge of environmental risk assessment  of living modified 
organisms.  
1. The Rural Development Administration(RDA) conducts environmental risk assessment of living 
modified organisms on crop cultivation environment .  
2. The National Institute for Ecology(NIE) con ducts environmental risk assessment of living 
modified organisms on natural ecosystem  
3. The National Fisheries Research & Development Institute(NFRDI) conducts environmental risk 
assessment of living modified organisms on fisheries environment and marine ecosystem  
 
Fig. Process of GM Food Safety Assessment  
 
 
PART II: QUESTIONS ON THE GOVERNMENT REPORT (WT/TPR/G/345)  
 
1 INTRODUCTION  
Page 6, paragraph 1.6 : We are not aware of any action by Korea to make the initial tariff cuts 
agreed upon in the context of the ITA Expansion. When does Korea intend to do so?  
 
ANSWER : For the implementation of the ITA Expansion, domestic procedures are currently 
underway in Korea following the circulation and certification of our WTO schedule in late August 
and on Sept. 14, r espectively, in line with the Procedures for Modification and Rectification of 
Schedules of Tariff Concessions. Although uncertainty still remains with regard to how the Korean 
National Assembly 's ratification process would be carried out, we hope that the  agreement could 
enter into force within this year at the earliest.   
 WT/TPR/M/346/Add.1  
 
- 8 - 
 
  3 ECONOMIC POLICY  
3.1 Three -Year Plan for Economic Innovation  
3.1.2 Structural Reforms  
Page 6, paragraph 3.8:  The Government Report states that "work is being done to create a fair 
and flexible labour market and heighten stability" and refers to a tripartite agreement among 
labour, management and the Government in September 2015 and law revisions that are 
underway. In view of the rescission of the tripartite agreement in November 2015, a s well as the 
consequential trade union protest action and arrests of trade union leaders that month, please 
explain what measures and legal revisions are currently taking place in order to ensure labor 
stability. Furthermore, please explain what steps are  being taken or envisaged to provide fair and 
due process to those trade union leaders who were arrested during the November 2015 protests.  
ANSWER :  
In Korea, there is Economic and Social Development Commission(ESDC) which is composed of 
workers, employers , and the Government. Federation of Korean Trade Unions(FKTU), one of major 
unions in Korea, has been participating as a union which represents domestic labor circle.  
In January, 2016, the FKTU announced to break the Tripartite Agreement, however, the agre ement 
cannot unilaterally be nullified by one consenting party as it is d etermined with signatures of 
10 members of the Commission according to the Act on the Tripartite Commission for Economic and 
Social Development.  
Recognizing the fact that the Agreemen t cannot be suspended as it is a promise made by social 
partners to the public, the Korean government is to sincerely implement the Tripartite Agreement. 
The government stands to push ahead with the Agreement, enhancing dialogue with workers and 
employers onsite as well as with management circle even though the FKTU does not play its part.  
Labor market reform based on the Tripartite Agreement includes revision of labor laws, 
administrative measures, implementation measures onsite (for workers and employers) . Although 
labor law revision bill is still pending at the National Assembly due to strong resistance from the 
opposition party, there are various measures already implemented such as requirements of 
ordinary dismissal, administrative measures regarding ch anges of employment rule, and incentive 
measures, including tax breaks aimed at encouraging mutual cooperation between principal 
contractors and subcontractors. As a result, a sign of positive changes, for example, expansion of 
the wage peak system and eff orts for the increase of youth employment are spreading.  
Led by the public sector, the wage peak system is fully implemented in every public organization 
by the end of last year. Thanks to the system, a room is secured for additional employment of 
approxim ately 8,000 people for the next 2 years under a policy direction of increasing efficiency in 
management of public organizations. Implementation of the wage peak system is still low in the 
private sector, but it is expanding led by large -sized companies.  
Exemplary cases of mutual cooperation are continuously increasing between principal contractors 
and subcontractors as well as between large companies and SMEs.  
The president of the Korean Confederation of Trade Unions has been guaranteed the right to 
counse l and presumption of innocence under the Constitution of the Republic of Korea and 
Criminal Procedure Act. He was sentenced five years in prison at the first trial which was disclosed 
to the public, but he has made an appeal against the court decision and is in the middle of 
appeals.  
 
3.2 Regulatory Reforms  
Page 6, paragraph 3.11 : The Government Report states that "The Korean Government places a 
priority on regulatory reform, which is deemed as the best way to stimulate investment and 
consumption without sp ending." What percentage of regulations in Korea are promulgated through 
administrative agencies? What percentage are passed directly by the National Assembly? Are all 
regulations subject to regulatory impact assessment, cost -benefit analysis, and public r eview and 
comment?  
ANSWER :  
During the past five years (May 2012~May 2016), bills initiated by members of the National 
Assembly reached 94% of the total amount of bills proposed, and 86% of the total amount of bills 
passed. On the other hand, bills initiat ed by the executive accounted for 6% of the total amount of 
bills proposed, and 14% of the total amount of bills passed.  
 WT/TPR/M/346/Add.1  
 
- 9 - 
 
  In Korea, regulations include a wide range of legislations, such as acts, enforcement decrees, 
administrative rules, and ordinances. T hus, Korea does not keep the statistics to record the ratio of 
regulations initiated by members of the National Assembly to the total parliamentary bills proposed 
or passed.  
 
Administrative agencies are required to conduct regulatory impact assessment of a ll regulations 
that are to be introduced or reinforced  
 
 
Page 7, paragraph 3.13 : The Government Report states that the "entire regulatory system was 
also improved through measures such as the "cost-in, cost -out" system, regulatory impact 
assessment and the  Regulatory Reform Sinmungo." Does the Korean Government publish an 
agenda of its work, including regulations under review? Which Korean Government bodies do this?  
 
ANSWER :  
During the pre -announcement of legislation, administrative agencies are required t o publish the 
statement of regulatory impact assessment (RIA) on their webpage.  
 
Like Korean Government 's other efforts for the regulatory reforms, the creation and operation of 
the Regulatory Reform Sinmungo has been in accordance with the Framework Act on 
Administrative Regulation. The detailed explanation of this Act can be found at the following URL: 
e.better.go.kr/fzeng2/page/system/system01.jsp. Any petition received to Regulatory Reform 
Sinmungo under review can be publically available in "Suggestio n Status " at the following URL: 
e.better.go.kr/fzeng2.page.RegulPrpslSIPL.laf. In addition, the Regulatory Reform Sinmungo is 
operated in Office for Government Policy Coordination under the Prime Minister 's Office.  
 
 
Page 7, paragraph 3.14 : The Government  Report states that regulations "can now be analysed in 
more detail thanks to the adoption of the regulation impact assessment system…" Are all proposed 
regulations subject to a regulatory impact assessment (RIA)? If not, what are the criteria to 
determine  which proposed regulations are subject to RIA? Is there an opportunity for people 
outside of Korea to participate by providing suggestions through the relevant Regulatory Reform 
Offices?  
ANSWER :  
Administrative agencies are required to conduct regulatory impact assessment of all regulations 
that are to be introduced or reinforced  
 
 
4 TRADE AND INVESTME NT POLICY  
4.2 Trade and Development  
Page 11, paragraph 4.13 : The Government Report states that Korea is sharing with developing 
countries its experience in d esigning and developing a customs clearance system. How does the 
customs work Korea is doing with developing countries reflect the goals and principles of the World 
Customs Organization in terms of customs modernization?  
 
ANSWER :  
To support modernization in the trade environment and trade facilitation for developing countries, 
the Korea Customs Service (KCS) carries out capacity building programs on clearance procedures 
for developing countries on the topics of AEO, Revenue Package, risk management, inter -agency 
information exchange, establishment of Digital Customs and so forth, into which the KCS reflects 
the goals and principles of the World Customs Organization in terms of modernization.  WT/TPR/M/346/Add.1  
 
- 10 - 
 
  QUESTIONS FROM CANAD A 
 
 
REPORT BY THE SECRETARIAT (WT/TPR/S/346)  
 
Part 1. Economic Environment:  Composition and Pattern of Trade: Paragraph  1.23, 
pages  22-23: 
Within the footnotes of paragraph 1.23, Korea's FTA utilization rates with its FTA partners are 
referenced.  
 
1. Could Korea elaborate on the methodology and source d ata utilized for these FTA utilization 
rates?  
 
ANSWER :  
1) FTA UTILIZATION RATE S ARE PRODUCED SEPAR ATELY FOR IMPORTS AN D EXPORTS WITH THE 
FORMULAS BELOW:  
FTA UTILIZATION RATE  FOR EXPORTS=  
 X 100%  
FTA UTILIZATION RATE  FOR IMPORTS=  
 
 
2) Applica ble items subject to FTAs include only the ones with actual benefits from FTA utilization. 
(excluding tariff -free items and non -preferential items as well as items with higher tariff rates than 
MFN tariff rates)  
 
 
2. Could Korea elaborate on other reasons bey ond lack of knowledge for non -utilization of FTAs 
by Korean businesses?  
 
ANSWER :  
In the aspect of FTA utilization for exports, FTAs are not utilized for the reasons that the buyer in 
the importing country does not request the origin certificate due to pro cessing trade, etc. In the 
aspect of FTA utilization for imports, there are reasons such the supporting documents submitted 
by the exporter do not meet the verification requirements by Korea.  
 
Part 3. Trade Policies by Measure: Introduction: paragraph 3.3,  page 47:  
The Secretariat Report notes that Korea has leeway to apply higher MFN tariff rates ("flexible 
tariffs") and that "during the review period the role of flexible tariffs on price stabilization was 
reduced, inter alia , due to low inflation. Korea i ntends to redu ce, or remove gradually, 
non-ad valorem  tariffs, and flexible tariffs in line with the reduction undertakings resulting from 
RTAs/FTAs".  
3. Can Korea provide more information on the specific rationale(s) for changing/raising the 
"flexible tar iffs"? 
ANSWER :  
Flexible tariffs refer to a mechanism under which the government is approved by the National 
Assembly to raise or reduce tariff rates within a certain range in order to protect domestic 
industries and stabilize the economy. Korea's two majo r flexible tariffs are quota tariff and 
adjustment tariff. These tariffs are applied temporarily under a limited condition and timeframe in 
accordance with the Customs Act of Korea.  
 
4. Can Korea provide details on the criteria and mechanisms used to deter mine when and 
under what circumstances the "flexible tariffs" are to be changed/raised?  
 
ANSWER :  
The Customs Act stipulates that quota tariff is designed to reduce tariff rates temporarily and 
limitedly for the purpose of stabilizing the economy, strength ening industrial competitiveness and WT/TPR/M/346/Add.1  
 
- 11 - 
 
  controling imbalance in tariff rate, and that adjustment tariff is applied also temporarily and 
limitedly in times of concerns that domestic markets might be disturbed and industrial 
infrastructures might be collapsed.  
 
5. Does Korea intend to maintain non -ad valorem  and "flexible tariffs" on an MFN basis?  
 
ANSWER :  
Flexible tariffs are applied in a temporary and restrictive manner for a specific objective. And they 
will be maintained as a significant element of the Kore an tariff policies.  
 
Part 3. Trade Policies by Measure: Applied MFN rate: paragraph 3.30, page 54:  
 
The Secretariat Report notes that there are 130 different tariff rate bands, including 44 alternate 
duties and 1 specific duty and that Korea's average MFN duties (14.1% in 2016, up from 13.3% in 
2012) are high by OECD -country standards.  
 
6. Does Korea plan simplify its tariff structure, including through tariff reductions? Please 
provide details.  
 
ANSWER :  
Korea already signed FTAs with a number of trading p artners and Korea is also under several FTA 
negotiations with other countries. In this regard, Korea plans to realign our overall tariff regime 
including simplification and reduce tariff rates at some point where Korea concludes the ongoing 
negotiations of  FTAs, RTAs, WTO DDA and plurilateral agreement.  
 
Part 3. Trade Policies and Practices by Measure: State Trading: paragraph 3.62, page 65:  
The Secretariat report explains that the Ministry of Agriculture, Food and Rural Affairs (MAFRA) 
and the Korea Agro -Fisheries and Food Trade Corporate (aT) have been authorized to allocate 
and/or operate tariff quotas in the context of Korea's WTO commitments in agriculture, thus 
affecting quota utilization and price mark -ups. All agricultural items (listed in footnote 5 7) were 
subject to mark -ups, but at much lower level than at the time of the 2012 review, except for rice, 
which was not at that time subject to such a practice.  
7. In responses to questions in the previous review relating to agricultural price mark -ups 
for products identified in Korea's WTO Schedule, Korea stated that mark -ups are " within 
the difference between the import price and the domestic price". The Secretariat report 
notes that mark ups are generally much lower than in previous years. Could Korea provide 
the methodology used to determine its price mark ups and the reason for the decline in 
mark ups since 2012?  
 
 
ANSWER :  
Price mark -ups for state trading are determined based on the difference between import and 
domestic prices. The domestic price is  determined by auction reflecting the market condition. This 
is also the reason for the decline in mark -ups since 2012.  
 
8. Can Korea confirm that MAFRA, aT or any other state trading enterprise in Korea are not 
engaged in the export of any agricultural pr oducts?  
 
ANSWER :  
There is no agricultural export state trading enterprise or governmental body granted with 
exclusive rights or special privileges in export of agricultural products as in the sense indicated in 
Article XVII of GATT.  
 
Part 3. Trade Policie s and Practices by Measure: Standards and other technical 
requirements: paragraph 3.70, page 68:  
The Secretariat report notes that the Korean Agency for Technology and Standards  (KATS) was 
reorganized in 2013 to strengthen the role of industrial standards and to augment their economic 
added value.  
9. Could Korea elaborate on the changes made to KATS and what has changed in terms of 
its management, coordination, development and conformity assessment of Korean 
standards?  
 WT/TPR/M/346/Add.1  
 
- 12 - 
 
  ANSWER :  
Bureau of Technical Standar ds Policy and Bureau of Knowledge Industry Standards were unified 
into Bureau of Standards Policy to establish and coordinating national standards policy and to 
operate national standards system(management, coordination, development and conformity 
assessme nt of Korean standards).  
Bureau of Technical Barriers to Trade(TBT) Affairs has been established to perform related 
business with regard to technical regulations such as newly -founded technical regulation impact 
assessment(TRIA) and etc.  
 
Part 3. Trade Pol icies and Practices by Measure: Standards and other technical 
requirements: paragraph 3.71, page 68:  
The Secretariat report indicates that the KATS has implemented its 4th National Standards Plan for 
2016-20. It also indicates that the current Plan has the  same objectives as the previous Plan.  
10. Could Korea provide an overview of the 2016 -20 Plan and how it differs from the 
2011-2015 Plan?  
 
ANSWER :  
The 3rd plan(2011 -2015) was mainly focused on activities to promote international standardization 
of our te chnique. And the objective of 4th plan(2016 -2020) is strengthening company 
competitiveness, creating global market and supporting abundant national life by using standards. 
As indicated in the report, the 4th plan has the similar objectives as the previous  one. 
 
The Secretariat report notes that standards development remains a government -led activity, and 
is a significant elemen t of Korea's industrial policy. One of the policy objectives for 2016 -20 
National Standards Plan is to promote "new growth engine a ctivities" through developing relevant 
standards and reforming the national  standard certification system.  
 
11. Could Korea elaborate on what are the current and future "new growth engine 
activities" targeted by the 2016 -20 Plan?  
 
ANSWER :  
In the 2016 -2020 plan, Korea would like to encourage reinforcing R&D investment in the field of 
new growth engine standard, training standard workforce, operating standardization forum and etc 
to lead future global market  
 
12. Could Korea describe what steps it has taken  or plans to take to reform the national 
standard certification system?  
 
ANSWER :  
Korean government propels solution for market entry -regulation and financial burden of companies 
by restructuring irrational certification system which causes unnecessary cos t and time.  Every 
newly created certification including mandatory and voluntary should be screened in advance.  
Also, Korean government plan to establish a regular monitoring system by operating integrated 
certification management system.The 2016 -20 Plan a lso endeavours to provide assistance to the 
private sector in increasing its capacity to develop standards.  
 
13. Please describe the policy objective of increasing the capacity of the private sector to 
develop standards.  What would be the mechanism used b y Korea to facilitate this 
initiative? How will private sector developed standards be treated in Korea technical 
regulations in comparison to government -developed standards? How does Korea intend to 
encourage private sector standards developers to comply w ith the Code of Good Practice 
as outlined in Annex 3 of the TBT Agreement?  
 
ANSWER :  
KATS plans to advance operating system of national standard by developing and managing 
standard of private -leading and to revitalize workshop and standardization forum wh ich discover 
standard demand of private -centered.  
The role of COSD(cooperation organization for standards development) will be enlarged from 
developing national standard to examining and reviewing international standard. If there is sector 
which has a lot of demand of standardization, private standard will be nationally standardized by 
revitalizing activities of private standardization and system for bottom -up standardization 
enactment will be extended.  WT/TPR/M/346/Add.1  
 
- 13 - 
 
  Part 3. Trade Policies and Practices by Measure: Stand ards and other technical 
requirements: paragraph 3.73, page 69:  
 
The Secretariat report notes that the Korea Forest Service is one of several Korean Ministries 
participating in the development of standards.  
 
14. Canada understands that Korea Forest Service  plans to develop new requirements for 
Korean importers of forest products to  conduct due diligence regarding the legality of 
imported forest products. Could Korea provide more details on these plans, particularly 
how Korea Forest Service plans to notify a nd consult foreign and domestic stakeholders 
and what the requirements will be for exporters to the Korean market?  
 
ANSWER : 
Information is not available at this moment, further update information will be provided soon.  
 
Part 3. Trade and Policies and Prac tices by Measure: Standards and Other Technical 
Requirements: paragraph 3.74, page 69  
It is noted that the Korean Agency for Technology and Standards (KATS) will begin the process of 
developing technical regulations (mandatory standards) for wearable smart -equipment in 2016.  
 
15. When possible or available, can the Republic of Korea provide further information on 
technical specifications or mandatory standards pertaining to wearable smart -equipment?  
 
ANSWER : 
Paragraph 3.74 of page 69 is only related to dev elopment of national voluntary standard or 
international standard in the sphere of wearable smart -equipment through business of national 
standard coordinator, but not pertaining to development of technical regulation or development of 
mandatory standard. F urthermore, so far, KATS has no plan to develop technical regulation or 
mandatory standard in the area of wearable smart -equipment.  
 
Part 3. Trade Policies and Practices by Measure: Standards and other technical 
requirements: paragraph 3.85, page 7:  
The N ew Excellent Products (NEPs) are products manufactured with new technologies developed in 
Korea or improved with innovative technologies.  NEP-certified products receive government 
support to expand sales and accelerate technology development.  Products cert ified as NEP receive 
additional qualification point in procurement by government and public organizations.  During the 
2012 Review, Korea indicated that the NEP system did not affect international trade and  that 
statistics on the specific product coverage a nd financial support under the NEP system were not 
available.  
 
16. Can Korea please indicate if the NEP certification system is still functional? If yes, can 
Korea please share data on the number of procurements covered under the WTO GPA or 
Korea's free tr ade agreements where products certified as NEP have received an 
"additional qualification point" or any similar type of advan tage in the tendering process?  
 
ANSWER : 
KATS currently operates NEP certification system yet there is no data with respect to proc urement.  
 
17. More generally, could Korea provide an update on new developments with respect to 
the international trade in and data collection on NEP products?  
 
ANSWER : 
NEP certification system is not related to international trade, and there is no data th at can be 
provided.  
 
Part 3.  Trade Policies and Practices by Measure:  Sanitary and phytosanitary measures: 
paragraph  3.91, page  74: 
The Secretariat Report acknowledges the role that consumer and industry groups play in 
influencing the decision making proce ss in Korea.  
 
18. Can Korea provide additional information on the types of influence these groups have, 
as well as the role science plays in Korea's decision making?  WT/TPR/M/346/Add.1  
 
- 14 - 
 
  ANSWER :  
Whenever the government legislate, amend or terminate a rule or standard which i s relevant to 
the people 's lives, Korean government pre -announces the legislation, amendment or termination 
of the rule or standard. The purpose of the prior -announcement of legislation is to ensure people 's 
right to participate and enhance effectiveness o f statues. By doing so, all people can submit their 
own opinions on the legislation. The government decides whether to reflect or not people 's 
opinion, and notifies the result to those who submitted their own opinion.  
 
Part 3.  Trade Policies and Practices by Measure: Government Procurement: pagraph 
3.109, page 79:  
It is noted that: "No detailed statistical data on the participation of WTO GPA -covered entities in 
the government procurement market operations were available from the authorities" and that 
Korea  last submitted statistical data on its procurement covered by the GPA in 2011 (for 2010 
data). Transparency being one of the key pillars of the GPA, Canada encourages Korea to report its 
latest statistical data available. We note that article XVI of the R evised WTO GPA allows for more 
flexibility in the reporting of statistical data by GPA Parties than the GPA (1994).  
 
19. Can Korea please share its latest available data on procurement covered under the 
WTO GPA?  
 
ANSWER :  
In accordance with WTO GPA, Korea n procurement market was open to international suppliers as 
much as ₩7,269.1 billion in 2012, ₩8,156.5 billion in 2013, ₩6,335.8 billion in 2014, 
₩6,743.9  billion in 2015. And the actual contract volume was ₩403.3 billion, ₩463.3 billion,  
₩495.9billion, ₩394.6 billion respectively in the aforementioned years.  
 
Part 3.  Trade Policies and Practices by Measure: Government Procurement: paragraph 
3.110, page 79:  
It is mentioned that the Act on Encouragement of Purchase of Green Products  requires 
government agenc ies and state -owned enterprises (SOEs) to purchase environment -friendly 
products.  
 
20. Could Korea elaborate on how environment -friendly products are defined under that 
Act? Could Korea share examples of technical specificatio ns used to identify 
environmen t-friendly products under the Act?  
 
ANSWER :  
Information is not available at this moment, further update information will be provided soon.  
 
Page 3. Trade Policies and Practices by Measure: Export Finance, Guarantees and 
Insurance: paragraph 3.130, page 8 5: 
The Secretariat report outlines the export credit activities of the Export -Import Bank of Korea, 
which provides export credit and financial guarantees to support Korean enterprises in conducting 
overseas business. The report goes on to say that direct l oans to foreign buyers and export loans 
to Korean fi rms cover mainly capital goods.  
 
21. Does Korea provide any official export credits or export credit guarantees covering 
agricultural goods?  
 
ANSWER :  
It is difficult for now to collect accurate data rele vant to export financing for agriculture. We cannot 
identify whether the export insurance or guarantee programs cover agricultural products since 
currently we are not collecting data of these schemes for each export item.  
 
Part 3.  Trade Policies and Practi ces by Measure:  Foreign Investment location incentives: 
paragraph  3.167, page  94: 
It is noted that Korea continues to promote or induce FDI with the operation of foreign investment 
zones (FIZs), export -oriented free trade zones (FTZs), and free economic zo nes (FEZs)  
 
22. Since there have been no new foreign direct investment promotion sites since 2014, is 
there a plan to expand or grow the number of these sites moving forward? Also, how are 
the current FIZ, FTZ and FEZ areas monitored and/or evaluated?  WT/TPR/M/346/Add.1  
 
- 15 - 
 
  ANSWER:  
These three sites are planned for attracting foreign direct investment, but the main purposes or 
incentives to foreign investors are different slightly. First, Foreign Investment Zones(FIZs) and Free 
Trade Zones(FTZs) are rental sites, but Free Econo mic Zones(FEZs) are planned complex sites to 
sold in lots. FIZs are rented to foreign -inveted companies only, but FTZs are rented to foreign -
invested companies as well as dometic companies who export their goods more than 50% of their 
sales. The rental fee  of FIZs and FTZs is lower than any other state or local government owned 
sites. Second, tax incentives to foreign -invested companies in three zones are almost same. The 
foreign -invested companies who are located in those zones can get 100% corporate tax r eduction 
for 3 years and 50% tax reduction for 2 years. If you want to get more information, please refer to 
Table A2.2 of a Report by the secretatiat  
 
Part 3.  Trade Policies and Practices by Measure:  State -owned Enterprises and 
Privatization: paragraph  3.171, page  95: 
It is noted that as part of a mid -term evaluation of the 2013 Public Institution Reform Plan 18 
"highly indebted" and 20 "recklessly managed" public institutions were identified to reduce their 
debt ratio to under 200%, and were also told to cut annual employee benefit e xpenditures by 
₩190 billion.  
 
23. Can the Government of Korea please detail how the 18 "highly indebted" and 20 
"recklessly managed" public institutions were identified?  
 
ANSWER :  
Highly indebted: 18 institutions with large amounts of debts and a sharp in crease in debt growth 
since 2008  
Recklessly managed: 20 institutions with higher employee benefit expenditures per person  
 
24. What process is in place to ensure these institutions meet the prescribed goals 
(e.g. reduce their debt burden & cut annual emplo yee benefit by 2017)? What are the 
ramifications if any institutions are unable to meet these goals in the required time?  
 
ANSWER : 
The debt reduction policy package is based on self -help plans submitted by institutions. Annual 
management assessment for pu blic institutions has been used as a tool to supervise the 
preparation and implementation of those plans. To encourage active engagement of institutions, 
the government uses performance -based benefits distributed to them as an incentive.  
1) Debt reduction pl an: self -help plans by the institutions to cut debt through measures 
including selling non -essential assets and improving management practices.  
2) Management assessment as a means to monitor implementation  
3)  Establishing an institutional background for debt ma nagement:  
-introduction of segment accounting system  
-adoption of quota system to prevent excessive issuance of corporate bond  
-improvement of feasibility study and in -depth ex -post evaluation.  
On reckless management, excessive pays and perks were readjus ted. Reckless management was 
added to assessment criteria for institutions and their chief officers. In addition, management data 
are now released to the public to enable better monitoring by the media and the public. Audits are 
taking place on a regular b asis. Penalties such as a wage freeze were discussed in regards to 
institutions with poor results, but no action was made as all institutions successfully met the goals.  
 
25. Are there any follow -up or monitoring programs in place to ensure that these (or 
other) public institutions are strengthening their core functions and productivity in order to 
provide high quality public services?  
 
ANSWER :  
The specifics of public institution debts (amounts, types etc.) are all made public in ALIO, the 
public sector in formation system, where information on employment welfare is also available. This 
enables to analyze the soundness of each public institution. Institutions that disclosed data 
unfaithfully are subjected to strong penalties including reprimand of the organi zation's head or 
employees in charge.  WT/TPR/M/346/Add.1  
 
- 16 - 
 
  The 2nd round of Public Institution Reform embarked in 2015. The goal is to readjust functions 
distributed among public institutions so that they can concentrate on key functions; private sector 
is encouraged to furthe r participate; and the quality of public service improved. Plus, with the 
adoption of wage peak and merit pay systems, the Reform seeks to boost productivity by 
disseminating a merit -based work culture among public institutions.  
 
Part 3.  Trade Policies and  Practices by Measure:  State -owned Enterprises and 
Privatization: paragraph  3.171, page  95: 
It is noted that in 2015, the Korea Government launched a 2nd Round of Public Institution Reform 
to strengthen public institutions' core functions and to improve  their productivity.  
 
26. When is the 2nd round of reforms expected to end? Will the details of these reforms be 
made publically available (e.g.  by way of a report, etc.)?  
 
ANSWER :  
The 2nd round of Reform is currently under way. Re adjustment  of functions bet ween institutions 
and the adoption of merit pay are all taking place as part of  this Reform. Specifics are made 
available to the public via press releases and media interviews.  
 
Part 3: Trade Policies and Practices by Measure:  Intellectual Property Rights:  paragraph 
3.194, page 103:  
 
On the topic of the Marrakesh VIP Treaty, please describe Korea's copyright provisions for the 
visually impaired.  Specifically:  
 
27. How does Korea treat imports and expor ts of accessible format copies?  
 
ANSWER : 
Korea does not have a specific copyright provision that regulates the imports and exports of 
accessible format copies for visually impaired persons. However, the rights to reproduction, 
distribution and making available to the public may be restricted in accordance with Article 33 of 
the Copyright Act.  
 
The Article 33 of the Copyright Act is read as follows:  
 
Article 33 (Reproduction, etc. for Visually Impaired Persons, etc.)   
(1) A work already made public may be reproduced and distributed in braille for visually impaire d 
persons, etc.  
(2) The facilities (including the heads of the relevant facilities) prescribed by the Presidential 
Decree among those that seek to promote the welfare of visually impaired persons, etc. may make 
a sound recording of the literary work alread y made public, or reproduce, distribute or interactively 
transmit such a work by recording methods exclusively for visually impaired persons, etc. as 
prescribed by the Presidential Decree, in order to provide it for the use by the visually impaired 
persons , etc., but not for the profit -making purposes. <Amended on 25 March 2009>  
(3) The scope of visually impaired persons, etc. pursuant to Paragraphs (1) and (2) shall be 
prescribed by the Presidential Decree.  
 
28. Does Korea impose any obligations to pay rem uneration for the making or providing of 
accessible format copies?  
 
ANSWER : 
No. Korea does not impose any obligations to pay remuneration for the making or providing 
accessible format copies.  
 
29. Does Korea provide any restrictions in situations where acc essible format copies are 
already commercially av ailable under reasonable terms?  
 
ANSWER :  
The rights to reproduction, distribution, and making available to the public may be restricted in 
accordance with Article 33 of the Copyright Act, regardless of the situation where accessible format 
copies are already commercially available under reasonable terms or not.  
 WT/TPR/M/346/Add.1  
 
- 17 - 
 
  30. Does Korea provide an exception permitting the circumvention of technological 
protection measures in this respect, including the providing of c ircumvention services and 
devices for this purpose?  
 
ANSWER : 
In a case where technological protection measures are in place for works that are to be used for 
visually impaired persons, there is a specific provision which allows the circumvention of the 
technological protection measures. Please refer to Article 104(2), sub -section 1, clause 8 of the 
Copyright Act as well as the "Exceptions to the Prohibition on the Circumvention of Technological 
Protection Measures " issued by the Ministry of Culture, Sports and Tourism.  
 
 
Part 3: Trade Policies and Practices by Measure:  Intellectual Property Rights: paragraph 
3.194, page 103:  
 
It is noted that Korea's policy stance remains that consistent protection of intellectual property 
rights (IPRs) is an important infr astructure for enhancing national and corporate competitiveness 
in its economy.  
 
31. Could Korea explain how its use of sovereign patent funds, like Intellectual Discover, 
helped support its policy stance for enhancing national and corporate competitivene ss? 
 
32. How are patents generally chosen by Intellectual Discovery to enhance the 
competitiveness of national entities (e.g. specific fields of technology, specific types of 
patentee etc.)?  
 
33. What patent defensive strategies have been used by Intellec tual Discovery 
(e.g. subscription -based defensive pools), and what is their effectiveness?  
 
34. In using a Sovereign Patent Fund, how does Korea seek to balance the purpose of 
national competitiveness with the fears of seeming protectionist or anti -competi tion to 
foreign investors/companies?  
 
35. How does Intellectual Discovery valorize patents, ensuring that it is not accumulating a 
large number of valueless patents?  
 
Part 3: Trade Policies and Practices by Measure:  Intellectual Property Rights: paragraph 
3.217, page 109:  
 
The Secretariat's report discusses Korea's copyright protection system.  
36. Does Korea's copyright system  entail a verification process?  
 
ANSWER :  
An author can make a copyright registration over his/her works in accordance with the Copy right 
Act, and the copyright -requested works are only evaluated on the basis of completion of 
registration requirements provided by the Copyright Act. The government does not verify the facts 
regarding the copyright -requested works, such as the degree of i ts originality, scope of protection, 
publications and declaration. Nonetheless, if the author states false information on copyright 
registration documents, the government may press criminal charges against him/her.  
 
37. Does Korea's registration system en joy a high -level of participation by copyright 
owners?  
 
ANSWER :  
The Copyright Act of Korea recognizes the copyright of an author even if he/she does not officially 
register his/her works with the government. Yet, the number of copyright registration, incl uding 
the related rights and rights of database producers, has been continually increasing every year 
(i.e. 20,848 works registered in 2010 -> 37,495 works registered in 2015)  
 WT/TPR/M/346/Add.1  
 
- 18 - 
 
  Part 4. Trade Policies by Sector: Agriculture and livestock; Policy development s: 
paragraph 4.13, page 115:  
 
The Secretariat report notes that a pilot agricultural revenue insurance scheme was introduced for 
onions, soybeans and grapes in January 2015 for a period up to December 2017. For farmers 
farming these products, if their reve nue falls below their average revenue for the most recent five 
years, the Government cover s part of the revenue decrease.  
 
38. Could Korea provide more information on its pilot insurance scheme?  
 
ANSWER :  
The pilot agricultural revenue insurance scheme ai ms to promote stable management and income 
of farms by ensuring a certain level of gross revenue for each item. Farms in the same size or 
larger than those eligible for crop insurance can be insured by the project. The eligible size is 
4,500m2 or larger fo r soy bean farms, 1,000 ㎡ or larger for grapes, and 1,500 m2 or larger for 
onions and garlics.  
 
39. Under the pilot programme, what percentage of a producer's income loss is covered by 
the scheme?  
 
ANSWER :  
The scheme insures 60 -80% of average gross revenue  for the most recent 5 years of the covered 
items. The insurer selects insurance rate among 60, 70, 80% options.  
 
40. Does Korea have plans to extend the product coverage of this new scheme?  
 
ANSWER :  
We will determine whether to expand the product coverag e based on the outcome o f the pilot 
project from 2015 -17. 
 
 
Part 4. Trade Policies by Sector: Agriculture and livestock; Policy developments; 
Domestic support; OECD indicators: paragraph 4.31, page 118:  
 
It is mentioned that Korea implemented direct paymen t programs to promote environmentally 
friendly agriculture.  
 
41. Could Korea provide additional details on the objectives and results of these programs?  
 
ANSWER : 
Objectives: The implementation of environmentally friendly agriculture certification causes 
excessive production cost and income loss in its early stage. Providing income protection for 
farmers can promote environmentally friendly agriculture.  
Results: Direct payment programs for environmentally friendly agricultural products resulted in an 
increas e in certified farmland areas.  
 
Part 4. Trade Policies by Sector; Energy: paragraph 4.61, page 126:  
 
It is mentioned that Korea intends to increase the supply of green energy and boost the green 
energy industry under its Energy Vision 2030.  
 
42. Could Kore a provide additional details on which steps it intends to take to achieve 
these goals?  
 
ANSWER :  
As following 2nd Energy Basic Plan that was announced in 2014, renewable energy target by total 
primary energy supply is 11%. To achieve this target Korean gov ernment is actively running 
various renewable energy deployment programmes with nurturing renewable energy industry 
through Renewable Portfolio Standard (RPS) for electricity sector, Renewable Fuel Standard(RFS) 
for transportation sector, Home •Building •Regional support programme, loan programme, 
combined support programme and PV rental programme etc.  
 WT/TPR/M/346/Add.1  
 
- 19 - 
 
  REPORT BY THE REPUBLIC OF KOREA (WT/TPR/G/346)  
  
Part 3. Economic Policy: Three -Year Plan for Economic Innovation: paragraph 3.4, page 
5:  
 
It is stated that efforts were made to lower existing entry barriers such as location and 
environment -related regulations so as to facilitate the easy and swift establishment of start -ups. 
 
43. Could Korea elaborate on efforts to lower environment -related regulations, inclu ding 
which environmental regulations were affected, in what way they were lowered, and what 
the objectives and impacts of lowering these regulations were?  
 
ANSWER :  
It doesn 't mean that all environmental reguations need to lower, objectives of lower existi ng r 
overlapping or complilcated barriers will be considered to lower.  
 
Part 3. Economic Policy: Structural Reforms: paragraph 3.8, page 6:  
 
The report mentions that labour law reforms are und erway in the National Assembly.  
 
44. Is it possible to get an u pdate on the progress of these laws and the prospect of them 
being passed through the National Assembly (NA) during this current session? The labour 
reform bills have been stalled since December in the NA when opposition parties refused to 
vote ahead of th e April elections. How likely are they to be passed through now given the 
new makeup of the NA?  
 
ANSWER :  
Labor reform bills include measures to address labor market uncertainties in wage and 
working hours, to expand job opportunities for youth and the mid dle-aged, and to address 
labor shortage of businesses. In addition, the bills are for workers to receive unemployment 
benefits for a longer period of time and to get compensation from occupational safety and 
health insurance for accidents during commute.  
Although labor reform bills were submitted to the National Assemble after reaching agreement on 
the Tripartite Agreement in September last year, the ruling and the opposition parties failed to 
narrow their gaps on the bills which resulted in disposal of the  bills at the 19th National Assembly.  
Reaching toward the end of the 19th National Assembly, it seems that both parties simply focused 
on whether or not to agree with the bills instead of engaging in discussions in depth on purpose, 
contents, and effectiv eness of the bills due to the then coming election in April this year.  
On 20 May, the ruling party proposed labor reform bills on four labor laws as views of their party 
and submitted to the Assembly as soon as the 20th National Assembly was started. It is  expected 
that positive results will be drawn if in -depth discussions on contents and effectiveness of the bills 
take place at the National Assembly during the 20th National Assembly.  
 
Part 4. Trade and Investment Policy: Plurilateral Trade Agreements: pa ragraph 4.8, page 
10: 
 
Korea's report notes that Korea participated in the ITA expansion negotiations, which were 
concluded in December 2015. Korea is currently undertaking the necessary WTO and domestic 
procedures for its implementation. As a participant to the Expanded ITA, Korea agreed to 
implement its commitments by July 1, 2016, subject to the completion of domestic implementation 
procedures.  
45. When does Korea intend to implement its commitments under the Expanded ITA?  
ANSWER :  
For the implementatio n of the ITA Expansion, domestic procedures are currently underway in 
Korea following the circulation and certification of our WTO sched ule in late August and on 
Sept.  14, respectively, in line with the Procedures for Modification and Rectification of Sche dules of 
Tariff Concessions. Although uncertainty still remains with regard to how the Korean National 
Assembly 's ratification process would be carried out, we hope that the agreement could enter into 
force within this year at the earliest.   WT/TPR/M/346/Add.1  
 
- 20 - 
 
  Part 4.  Trade  and Investment Policy:  Investment Policy Development: paragraph  4.19, 
page  12: 
It is noted that in October 2014 the Enforcement Decree and Enforcement Rules of the Foreign 
Investment Promotion Act were amended to provide incentives for global business hea dquarters 
and R&D centers located in Korea.  
 
46. Could the Government of Korea please describe how are these incentive structures are 
to be reviewed and/or evaluated?  
 
ANSWER :  
The Government of Korea  reviewed incentive of global HQ and R&D center program s based on 
those amounts of FDI and employment. Global HQ has to employ more than 10 employees, and 
foreign investment accounts for more than 50 % of the total investment. Also, R&D center should 
have more than 5 researchers, investment of more than ₩100 mi llion and foreign investment of 
more than 30 percent.  
 
Part 4.  Trade and Investment Policy:  Investment Policy Development: paragraph  4.21, 
page  13: 
It is noted that as part of efforts to improve the transparency of foreign investment -related policy, 
the Go vernment of Korea opened a Regulatory Information Portal in July 2015 to promote foreign 
investors' participation in the policy -making process.  
 
47. Could the Government of Korea please explain how any information and/or input 
received from foreign investo rs' through the Regulatory Information Portal will be 
considered and used in the policy -making process?  
 
ANSWER :  
The English version of Regulatory Information Portal ( http://e.better.go.kr ) publicly publishes the 
information on bills proposed by either th e executive or the legislature that contain regulations. In 
this regard, foreigners can submit a petition or opinion in English via the aforementioned website.  
 
Foreign investors may choose either Korean Regulatory Reform Sinmungo or English Regulatory 
Reform Sinmungo, depending on the convenience of their choice, and submit their grievances 
regarding existing government regulations. All petitions received by both Regulatory Reform 
Sinmungo sites go through the same procedure as follows:  
The petition proce dure consists of three steps: First, if a petitioner requests the improvement of 
regulations, the competent administrative agency reviews the petition and provides a response 
within 14 days. Petitions that have not been accepted are subsequently sent to th e Prime 
Minister 's Office for a second review conducted jointly with civilian experts to see whether the 
agency 's response to the petition is reasonable. If a response is found to be unreasonable, the 
concerned administrative agency is required by the Prim e Minister 's Office to conduct a second 
review of the petition  within 3 months . If the second response by the agency is still found to be 
unreasonable, the petition is brought to the Regulatory Reform Committee1 (RRC), which issues a 
recommendation for reg ulatory revisions to the agency if it deems this necessary.  
 
                                                
1 The Regulatory Reform Committee is composed of members of the  private sector and government 
ministers, including the Prime Minister of Korea. The Committee is responsible for setting regulatory policy and 
monitoring the regulatory reform process in Korea.  WT/TPR/M/346/Add.1  
 
- 21 - 
 
  QUESTIONS FROM AUSTRALIA  
Report by the Secretariat (WT/TPR/S/346)  
Summary  
Page 9, paragraph 7  
 
Australia notes the report's advice that Republic of Korea (ROK) has largely met its WTO 
notificati on requirements, but that notifications in some areas – including government 
procurement, export subsidies, and domestic support in agriculture - have been subject to lengthy 
delays.  
 
Question 1  
Can ROK please advise when it intends to provide these overdu e notifications? Australia 
encourages ROK to provide such information in a more timely manner, particularly given their 
importance to the overall level of support ROK provides to its domestic producers. As the report 
later states (page 11, paragraph 18), R epublic of Korea's agriculture sector in particular remains 
heavily protected, with its contribution to GDP (2.3%), little more than its level of support (1.8%), 
and an average applied MFN tariff rate that has risen to 60%, more than nine times the average  
for non -agricultural goods.  
 
ANSWER :  
Korea is currently on the phase of finalizing and confirming its export subsidy notifications and the 
notifications will be submitted soon. We are still collecting data for domestic support notifications 
since 2011.  
 
Report by the Secretariat (WT/TPR/S/346)  
Summary  
Page 9, paragraph 8  
 
The report notes that Republic of Korea's average applied MFN tariff rate remains relatively high by 
OECD standards, that it has increased since 2012, and that the system of border prote ction 
remains complex and unpredictable. Further, the average fill rates of WTO Tariff Rate Quotas 
(TRQs) has fallen to under 60%.  
 
Question 2  
Given the above, can Korea please advise if it has any plans to improve the transparency and 
openness of its trad ing regime? This could be achieved by, for example, reducing the multiplicity of 
tariff rates and other measures, merging rates with small differences, removing decimal rates, 
lowering (rather than raising), the average applied MFN tariff rate, and encoura ging higher fill 
rates of its WTO TRQs?  
 
ANSWER :  
Korea 's tariff rates were determined based on the tariff equivalent during the Uruguay Round back 
in 1994. We do not have any plan of revising the rates.  
Furthermore, Korea already signed FTAs with a number  of trading partners and Korea is also under 
several FTA negotiations with other countries. In this regard, Korea plans to realign our overall 
tariff regime including simplification and reduce tariff rates at some point where Korea concludes 
the ongoing ne gotiations of FTAs, RTAs, WTO DDA and plurilateral agreement.  
Regarding TRQs, as described in the report, the actual average TRQ fill rate remains at 86% 
excluding certain items with no commercial demand in Korea.  
* The fill rate for items including breedi ng cattle, breeding fowls, birds ' eggs, powder of bones, 
silkworm eggs, mulberry trees, seed potatoes, pine nuts, Korean citrus for the past 3 years is 0% 
as there is no domestic demand for these items.  
The Korean government took measures to enhance transp arency following the decision in the 9th 
Ministerial Conference. It is making efforts to improve transparency, fairness and efficiency in TRQ 
administration including TRQ allocation standards and procedure by constantly monitoring the fill 
rate and adminis tration of each TRQ.  
 WT/TPR/M/346/Add.1  
 
- 22 - 
 
  Report by the Secretariat (WT/TPR/S/346)  
Chapter 1 ECONOMIC ENVIRONMENT  
1.2 Recent Economic Performance  
1.2.1 Growth, income, and employment  
Page 14, Paragraph 1.3  
 
According to the Secretariat's report, the ROK response to its slugg ish GDP growth was to put into 
place a number of essentially domestic measures to spur economic recovery, including loosening 
the monetary policy stance; direct budget stimulus in form of financial support for home 
buyers/renters and social spending; incre ased support for policy -based lending (e.g. capital 
injection to the Korean Development Bank to support new growth source projects); ad hoc tax 
measures to incentivize firms to allocate idle cash to wages, dividends, or investments; and 
measures to revive the housing market (e.g. removing regulatory roadblocks for housing 
reconstruction projects). The Secretariat's report notes the ROK's 2013 "creative economy" 
initiative driven, in part, by regulatory reform and increased competition, was to generate new 
jobs and economic revitalization, stimulate entrepreneurship and improve efficiency, especially in 
SMEs, through innovation.  
 
Australia welcomes the ROK's reform efforts.  
 
Question 3  
Could the ROK please elaborate on the role – and impact - competition has  had, in implementing 
its initiatives, including the role of foreign competition?  
 
ANSWER :  
If you elaborate us on what "competition"  means in your question (we could not find any mention 
on competition in this particular part), we will provide you a more detailed answer next time.  
 
Report by the Secretariat (WT/TPR/S/346)  
1.  Economic Environment  
1.2 Recent Economic Performance  
1.2.1 Growth, income, and employment  
Page 15, Paragraph 1.4  
 
Australia welcomes the ROK's recognition of services and investment as key drivers of future 
economic growth, as reflected in the priority given by President Park to services sector promotion 
and regulatory reform, as set out in the 2014 Three -Year Plan for Economic Innovation. In 
comparison with other OECD countries, howe ver, the ROK's services sector - and its services trade 
- continues to be relatively undeveloped. According to the Secretariat's report, since 2012, 
changes in the overall sectoral pattern of Korea's GDP consisted of only minor increases in the 
contributio n of services – accounting for 59.7% of economic activity – well below the OECD 
average. Productivity growth impediments include: low service sector productivity; an un -dynamic 
SME sector; and, labour market rigidities and distortions leading to under -utilization of productive 
resources. Overall productivity was only 55% of the top half of OECD countries in 2014. The level 
of labour productivity in the services sector was only about half of that in manufacturing.  
 
Question 4  
Could the ROK please elaborate o n what plans it has to further boost services productivity, 
including through the role of foreign companies in boosting competition?  
 
ANSWER :  
Amid intensifying international competition, the Korean government launched a strategy to foster 
the service sect or as a means to draw dynamism in the Korean economy and create jobs.  
Priorities of this strategy include:  
 
1) Promoting a convergence between service and manufacturing sectors  
Today, government policies designed to support businesses often focus on manufa cturers, 
effectively discriminating service providers. Addressing this problem is expected to promote 
industrial convergence and help generate high added value in the manufacturing sector through a 
synergy with the service sector.  
 WT/TPR/M/346/Add.1  
 
- 23 - 
 
  2) Infrastructural innov ation for the service sector  
The government will increase investment in service -related R&D, while encouraging the private 
sector to do the same. Plus, more support will be offered to service -related training programs and 
overseas market exploration.  
 
3) Focusing on seven promising industries*  
* Healthcare, tourism, cultural contents, education, finance, software and logistics  
For all 7 promising industries, development plans will be devised and tailored in consideration of 
various factors including global trends and technological progress.  
To date, at a policy level, the government has supported international institutions' investment in 
Korean healthcare, tourism and education sectors to boost competitiveness.  
Such efforts have been translated into:  
a) Introdu ction of open -investment foreign hospitals in Free Economic Zones and the Jeju 
Island (e.g. the Greenland Hospital in Jeju Island)  
b) Renowned foreign universities to open campuses in Korea (State Univ. of New York, 
George Mason Univ.)  
c) Foreign investment in r esort complex projects in Korea (LOCZ resort in Yeongjong Island, 
the Jeju Myth and History Theme Park)  
 
Report by the Secretariat (WT/TPR/S/346)  
1.  Economic Environment  
1.3 Main Macroeconomic Policy Developments  
1.3.1 Monetary and exchange rate policy  
Page 17, Paragraph 1.8 and associated footnotes  
 
Paragraph 1.8, footnote 22, states that according to the authorities, the exchange rates should be 
freely determined by the market so as to reflect economic fundamentals and market 
supply/demand, and any deli berate foreign exchange rate policy tailored to exchange rate levels, 
exports, or price levels is inadvisable.  
 
Question 5  
Could ROK indicate what other measures are in place to allow businesses to take better advantage 
of Korea's floating exchange rate s ystem?  
 
ANSWER :  
Basically, the Korean government floats its currency and the exchange rate is market -determined. 
Businesses apply the market -determined exchange rate to various dealings and accounting.  
 
 
Question 6  
Could the ROK elaborate why the Korean Won is still not widely traded in the international market 
despite the size of its economy in the global market?  
 
ANSWER : 
As part of the effort to allow the Korean won to be widely traded in the international market, the 
Korean government launched KRW -RMB direct trading in Korea last year. The government also 
launched the KRW -RMB direct trading market in China, the first offshore foreign exchange market, 
and extended trading hours of its domestic foreign exchange market.  
 
 
Report by the Secretariat (WT/TPR/ S/346)  
1.  Economic Environment  
1.3 Main macroeconomic policy developments  
Page 19, paragraph 1.14  
  
President Park included SOE reform as a priority policy under her Three -Year Plan for Economic 
Innovation. As discussed in paragraph 1.14, reform of SOEs h as in practice focused on enhancing 
operational efficiency rather than full privatisation.  
 WT/TPR/M/346/Add.1  
 
- 24 - 
 
  Question 7  
Are further reforms to Korea's SOEs envisaged beyond those discussed in paragraph 1.14? How 
will these reforms improve the balance sheets of Korea's SOEs  or enhance management efficiency 
and transparency?  
ANSWER :  
1) As stated in Paragraph 3.171, the government has been implementing the 2nd round of Public 
Institution Reform in an effort to reduce debt and address reckless management. The reform is 
expecte d to improve the financial structure of public institutions at a steady pace.  
 
2) The government is driving up practical productivity through annual functional readjustments, 
which include greater concentration on key functions by streamlining overlapping functions and 
reducing non -essential tasks. The government also aims to invigorate the private sector by 
encouraging its participation in the public sector as well as slashing public institutions ' functions 
that overlap with those of the private sector. La stly, the plan seeks to enhance management 
efficiency through improvement in financial structure and transparency.  
 
3) Wage peak system is now fully introduced to encourage merit -based corporate culture in public 
institutions. Not just managers but lower -ranking employees are now subject to merit pay system. 
This shift is expected to enhance productivity and efficiency of those institutions as well as the 
quality of public services they provide.  
 
Question 8  
What are the prospects for increased private secto r investment in Korean SOEs in the medium -to-
long term?  
 
ANSWER : 
The government aims to maintain an appropriate  level of  private sector investment in 
Korean  SOEs, especially with regard to crucial public services.  
 
Report by the Secretariat (WT/TPR/S/346)  
1.  Economic Environment  
1.3 Main Macroeconomic Policy developments  
Page 19, paragraph 1.16  
 
The Secretariat's Report states that: "Good corporate governance contributes to sustainable 
economic development by enhancing the performance of companies and incr easing th eir access to 
outside capital".  
 
Question 9  
Australia would be grateful for an explanation of what measures are in place to protect minority 
shareholder rights in the ROK?  
 
ANSWER :  
The Commerical Act has various articies related to minority stake holder rights for example, Section 
4 Controlling Shareholders' Acquisition of All Shares Owned by Minority Shareholders, Article 366 
(Demands for Convocation by Minority Shareholders), etc. English version of Commercial Act is 
avaialbe at www.law.go.kr  
 
Question 10  
What is the rationale for pardons given to certain senior executives of large conglomerates who 
have been convicted of corporate malfeasance?  
 
ANSWER :  
A pardon is given to an offender without distinction of social status or other factors based o n the 
Constitution of the Republic of Korea and Amnesty Act.  
 WT/TPR/M/346/Add.1  
 
- 25 - 
 
  Report by the Secretariat (WT/TPR/S/346)  
1.  Economic environment  
1.3 Main Macroeconomic Policy developments  
Page 20, paragraph 1.17  
 
The S ecretariat's Report notes that " [l]abour market rigidities remain in place"  and refers to the 
September 2015 Tripartite Agreement between the Government, workers and employers which 
aims to, inter alia , "alleviate the dual structure of the labour market (r egular and non -regular 
workers)" .  
 
Question 11  
Austra lia would welcome clarification from then ROK as to the status of the September 2015 
Tripartite Agreement.  
ANSWER :  
The Tripartite Agreement reached on 15 September 2015 includes a wide range of tasks to 
increase room for job creation, to improve quality o f employment, and to address dual structure of 
the labor market. The Agreement contains not only labor market policies but also policies on 
industries, fair business trade, and welfare which aim at resolving the dual structure of the labor 
market.  
Based on  the Tripartite Agreement, labor market reform is underway through revision of labor 
laws, administrative measures, and implementation measures onsite for workers and employers. 
Although revision of labor laws is still pending at the National Assembly, adm inistrative measures 
and onsite implementation measures are in place.  
 
Question 12  
Does Korea have any plans to introduce legislation addressing labour market duality?  
ANSWER : 
Addressing the dual structure in labor market needs various policies and governm ent-wide 
cooperation. Based on the Tripartite Agreement, relevant ministries jointly announced measures to 
promote employment through addressing labor market dualism in March 2016.  
The government is enhancing its efforts to provide various incentives such as financial support and 
tax breaks in order to encourage large -sized companies to share its profits with SMEs and to 
mutually cooperate with subcontractors and affiliated companies. In addition, the government is 
carrying out labor reform to foster compet ency- and performance -based fair labor market so that 
regular workers increase, accordingly, improving employment structure.  
On top of that, a series of revision bills are submitted to reduce the dual structure and gaps in the 
labor market in order to fos ter fairer labor market.  
Labor market reform bills aim to provide legal protection and benefits necessary to youth, the 
middle -aged, and the unemployed who are suffering difficulties the most. The bills are pending at 
the National Assembly and the governme nt is actively providing support to have it passed 
promptly.  
The following bills are submitted to the National Assembly in June 2016. 1) Work -Study Dual 
System Assistance Act  to expand Korean apprenticeship system; 2) Minimum Wage Act  to 
strengthen implem entation of the minimum wage; 3)  Occupational Safety and Health Act  to 
strengthen principal contractors' responsibility on safety and health of subcontract workers  
 
 
Report by the Secretariat (WT/TPR/S/346)  
2.  Trade and Investment Regime  
2.1 Introduction  
Page 28, paragraph 2.3  
 
The Sec retariat's Report states that: " Korea has the third -lowest FDI stock in the OECD area, 
which is due in part to the remaining trade and investment barriers ".  
 
Question 13  
What steps has the ROK taken to address concerns by fo reign investors about barriers in relation 
to the repatriation of profits?  WT/TPR/M/346/Add.1  
 
- 26 - 
 
  ANSWER :  
There is no restriction to foreign investors in relation to the repatriatio n of profits, under the 
Article  3, Foreign Investment Promotion Act .  
 
Article 3(Protection, etc.  of Foreign Investment)  
(1) With respect to the proceeds that come from the stocks, etc. acquired by a foreign investor, 
proceeds from the sale of stocks, etc., the principal, interests and service charges paid in 
accordance with the loan contract under Ar ticle 2(1) 4 (b), and the compensation paid in 
accordance with a licensing agreement, their remittance to foreign countries shall be guaranteed in 
accordance with the details of the permission or report of the foreign investment contract or the 
licensing a greement at the time when the said remittance is made.  
 
The report notes that Korea has the third -lowest stock of FDI in the OECD, which the Secretariat 
attributes in part to "remaining trade and investment barriers". Earlier in the report (page 26, 
parag raph 1.25), it also states that regulatory reform is key to attracting higher levels of FDI. 
Foreign investment in Korea is not, or is only partially, permitted in a (high) 7.7% of business 
activities. This includes many sectors of significant interest to foreign investors, such as transport, 
telecoms and financial services. Further, restrictions remain in many other categories. Later in the 
report (page 31, paragraph 2.18), it advises that Korea ranks second in the OECD's index of trade 
and investment barr iers, and that this helps explain why Korea has the third -lowest FDI stock in 
the OECD region.  
 
Question 14  
Given the above, can Korea please advise if it has any plans to further liberalise its foreign 
investment and regulatory regimes?  
 
ANSWER : 
The ROK a nnually reviews the restricted business areas, including the scope and definition of 
restricted areas, aligning with domestic laws of individual sectors and FTAs.  
 
 
Report by the Secretariat (WT/TPR/S/346)  
2.  Trade and Investment Regime  
2.5 Trade Laws and  Regulations  
Pages 31 & 32, paragraphs 2.5.1 -2.24 
 
The Secretariat's Report states that: "Recognizing the costs of overly burdensome regulation, the 
Government continued to i mprove its regulatory framework"  and then goes on to outline various 
ROK initiativ es directed at enhancing regulatory quality.  
 
Australia understands that the bulk of regulation in the ROK is self -generated by the National 
Assembly and that this legislation is not subject to most of the recent reforms which only apply to 
regulation ini tiated by government agencies.  
 
Question 15  
What is the ROK is doing to enhance the quality of regulation initiated by the National Assembly 
itself?  
 
ANSWER : 
An amendment to the National Assembly Act has been proposed to require regulatory impact 
assessme nt of parliamentary bills that contain significant regulations. As of now, the National 
Assembly generally drafts a cost estimate statement and an assessment report for any bill initiated 
by the members of the National Assembly.  
 
Question 16  
Could the ROK  also elaborate on how it has reflected international norms in its efforts to improve 
regulatory quality?  
 
ANSWER : 
When a regulation is to be introduced or reinforced, a RIA statement is required to verify the 
validity or propriety of the regulation. In th is process, one of the important components of the RIA WT/TPR/M/346/Add.1  
 
- 27 - 
 
  statement is to conduct case studies of other developed countries and to test the regulation 
against global standards, in order to ensure the quality of the regulation under review.  
 
Question 17  
Would  the ROK please outline what suggestions it has received from foreign entities? Which 
sectors have been the focus of these suggestions?  
 
ANSWER : 
The Korean government designates a communication focal point at the 21 ministeries for foreing 
investoers in or der to get their any suggestions. Foreign entiries in various sectors are open for 
suggestion.  
 
Report by the Secretariat (WT/TPR/S/346)  
3.  Trade Policies and Practices by Measure  
3.1 Introduction  
Page 47, paragraph 3.3  
The report notes that Korea's peak  ad valorem  tariff rates range as high as 887.4%, and that 
some out -of-quota tariff rates on its WTO TRQs are, for some products, so high that they "in 
effect, constitute quantitative restrictions". Even in -quota tariff rates can range as high as 50%. 
The report also notes that other measures that selectively reduce tariffs on inputs "are a potential 
impediment to efficient resource use and add to tariff complexity and uncertainty".  
 
Question 18  
Given the findings of the report that Korea's tariff structure  is high, and in some cases restrictive, 
inefficient and complex, can Korea please advise if it has any plans to reduce tariffs, and/or 
simplify its tariff structure, noting its intention to reduce, or gradually remove, non -ad valorem  
and "flexible tariffs ", in line with undertakings in its FTAs?  
 
ANSWER : 
Korea already signed FTAs with a number of trading partners and Korea is also under several FTA 
negotiations with other countries. In this regard, Korea plans to realign our overall tariff regime 
including  simplification and reduce tariff rates at some point where Korea concludes the ongoing 
negotiations of FTAs, RTAs, WTO DDA and plurilateral agreement.  
 
Report by the Secretariat (WT/TPR/S/346)  
3.  Trade Policies and Practices by Measure  
3.2 Measures Direc tly Affecting Imports  
3.2.1 Customs procedures  
Page 50, paragraph 3.14  
 
Question 19  
Noting the very good performance results of the Korea Customs Service (KCS), as outlined in the 
report, can Korea please explain what is meant by the KCS being unable to di sclose the results of 
time release studies "due to the comprehensiveness of the issue"?  
 
ANSWER : 
The response was omitted in the final report but the KCS does not have any reason not to disclose 
the results of time release studies "due to the comprehensive  of the issue ". TRS result for the year 
2012 is 2.04 days, and subsequently 1.71 days in 2013, 1.8 days in 2014, 2.05 days in 2015, and 
1.9 days as of May 2016.  
 
Report by the Secretariat (WT/TPR/S/346)  
3.  Trade Policies and Practices by Measure  
3.2 Meas ures Directly Affecting Imports  
Page 51, paragraph 3.16  
 
Question 20  
Could Korea provide further detail on the 2015 Future Customs Administration Strategy, in 
particular: the creation of an advanced import/export environment via cross national risk 
managem ent; and the overall reorganization of the national trade information system?  
 WT/TPR/M/346/Add.1  
 
- 28 - 
 
  ANSWER : 
The 2015 Future Strategy is part of the 2012 "Mid to Long -Term Development Strategy ", which is 
being implemented with several interim goals accomplished as of now.   
The key concept for nation -wide risk management is two -track customs administration through 
integrated management for each business. With the utilization of the AEO program by the 
Customs, the risk management capacity is focused on high -risk non -AEOs. Additio nally, the KCS 
has the integrated risk management center at the headquarters to implement strategic risk 
management and to direct and control risk responses of the 47 local customs offices.  
As the National Trade Information System was one of the interim o bjectives, in April 2016 the 
4th generation UNI -PASS was established and launched. In detail, it can be elaborated with 1. the 
integration, simplification, downsizing of the system, 2. establishment of a system for prompt 
responses against failures and adv ance early warning, 3. integrated IT management to secure 
traceability of information resources and so forth.  
 
Report by the Secretariat (WT/TPR/S/346)  
3.  Trade Policies and Practices by Measure  
3.2 Measures Directly Affecting Imports  
3.2.1 Customs proced ures 
Page 51, paragraph 3.17  
 
Australia acknowledges the report's finding that Korea's trade facilitation efforts are appreciated 
internationally, and that the KCS operates at world best practice. However, it also finds that Korea 
has fallen back in areas such as appeal procedures, fees and charges, and automation, and that 
performance is below best practice in involvement of the trade community, advance rulings, 
appeal procedures, fees and charges, automation, streamlining of border procedures and internal  
border agency cooperation.  
 
Question 21  
Does Korea agree with the Secretariat's conclusion that reform should be possible in these areas? 
If so, can Korea advise of any plans it has to make improvements in the areas identified in the 
report?  
 
ANSWER :  
The KCS cannot agree with the facts indicated in OECD's TFI survey, which only assessed with 
quantitative indicators without any reflection of qualitative indicators such as the characteristics of 
the nation, the policy environment, and policy concept. The KC S finds that the assessment for 
trade automation, streamlining of border procedures, internal border agency cooperation, and 
advance ruling is designed to make it difficult to reflect KCS' strengths or institutional reality. In 
case of appeal procedures, t here was an error in entering the response.  
 
 
Report by the Secretariat (WT/TPR/S/346)  
3.  Trade Policies and Practices by Measure  
3.2 Measures Directly Affecting Imports  
3.2.3 Tariffs  
3.2.3.1 Applied MFN rate  
Page 54, Table 3.1  
 
Question 22  
Given the rela tively high number (1.8%), of nuisance tariffs identified in the report, can Korea 
please advise if it intends to reduce or eliminate such tariffs?  
 
ANSWER :  
Korea already signed FTAs with a number of trading partners and Korea is also under several FTA 
negotiations with other countries. In this regard, Korea plans to realign our overall tariff regime 
including simplification and reduce tariff rates at some point where Korea concludes the ongoing 
negotiations of FTAs, RTAs, WTO DDA and plurilateral agreemen t. 
 
 WT/TPR/M/346/Add.1  
 
- 29 - 
 
  Report by the Secretariat (WT/TPR/S/346)  
3.  Trade Policies and Practices by Measure  
3.2 Measures Directly Affecting Imports  
3.2.3 Tariffs  
3.2.3.7 Tariff preferences and rules of origin  
Page 62, paragraph 3.49  
 
Question 23  
The report notes Korea appli es non -preferential rules of origin to all other imports. What is the 
justification for non -preferential rules of origin?  
 
ANSWER : We limitedly apply it to some imports, It is acknowledged by WTO Official code called 
"AGREEMENT ON RULES OF ORIGIN " that is entered into force at that time WTO is established  
 
Question 24  
What are the documentation requirements, if any, for the non -preferential rules of origin?  
 
ANSWER : "Certificate of origin " or "related documents " of some imports may be required only 
when the re is a special need to verify the origin of some imports  
 
Question 25  
How does Korea ensure that non -preferential ROOs do not serve as a barrier to trade?  
 
ANSWER : It is the minimum institution for the statistics and policy to the trade, and It is the leg al 
obligation imposed on native importer, and It is non -discriminatory standard that equally applied 
to all the member states  
 
Report by the Secretariat (WT/TPR/S/346)  
3.  Trade Policies and Practices by Measure  
3.2 Measures Directly Affecting Imports  
3.2.4 Tariff quotas  
3.2.4.1 Agricultural tariff quotas  
Page 62, paragraph 3.51  
 
The report states that, in some cases, the administration of tariff quotas is carried out by domestic 
producers competing directly with the imported item. It also finds that a "cr edible" system of 
import administration would not involve directly interested parties.  While acknowledging Korea's 
explanation of this situation, Australia tends to agree with the report's finding that such a system 
lacks transparency and credibility.  
 
Question 26  
Does Korea intend to make the necessary adjustments to rectify this situation i.e. by bringing the 
administration of TRQs under the relevant government ministry?  
 
ANSWER : 
Domestic producers that administer tariff quotas do not directly compete wit h the imported items 
but rather are in a complimentary relationship with them, since they are also distributers and 
processors who handle both imported and domestically produced agricultural products.  
The producers are administering tariff quotas in order to use imported items for processing, and 
those producers are often the only consumers of some TRQ products, including breeding fowls, 
birds' eggs, breeding pigs, breeding cattle, and seedlings.  
 
 
Report by the Secretariat (WT/TPR/S/346)  
3.  Trade Policies  and Practices by Measure  
3.2 Measures Directly Affecting Imports  
3.2.6 Import licensing, quotas, and prohibitions  
3.2.6.1 Licensing  
Page 63, paragraph 3.55  
 
The report notes that, in 2016, import licensing procedures were required for some 3,000 six -digit 
HS tariff items, up from 1,000 in 2008.  WT/TPR/M/346/Add.1  
 
- 30 - 
 
  Question 27  
Can Korea please explain why it has been necessary to triple the number of tariff lines requiring an 
import license over the last eight years?  
 
ANSWER : 
There is no significant increase of products which need import license since 2008, however further 
information will be provided upon the check of tariff lines of 2008.  
 
Report by the Secretariat (WT/TPR/S/346)  
3.  Trade Policies and Practices by Measure  
3.2 Measures Directly Affecting Imports  
Pages 67 & 6 8, paragraphs 3.68 -3.69 
 
The Secretariat's Report states that: "Since its last Review, Korea has had recourse more 
frequently to the special safeguard (SSG) provisions under Article 5 of th e WTO Agreement on 
Agriculture".  
 
Question 28  
Could the ROK provide  copies of any individual analyses that indicate the imports in question were 
harming the local industry and supporting the decision by the ROK to activate SSGs?  
 
ANSWER :  
Unlike safeguard measures(SG) under the WTO Agreement on Safeguard, Special Safeguar d (SSG) 
under the WTO Agreement on Agriculture can be applied to 162 tariff lines designated in Korea 's 
schedule if the requirements set by the AoA such as increase in import or decline in import prices 
are met regardless of investigation and determination  of serious injury to the local industry. Thus, 
providing copies of individual analyses is unnecessary.  
 
 
Report by the Secretariat (WT/TPR/S/346)  
3.  Trade Policies and Practices by Measure  
3.2 Measures Directly Affecting Imports  
Page 69, paragraph 3.75  
 
The Sec retariat's Report states that: " Non-harmonized standards … remain in place; no 
information on developments on "Korea -specific" standards since 2012 was available from the 
authorities".  
 
Question 29  
What steps has the ROK taken since 2012 to harmoniz e any "Korea –specific " standards with 
international standards?  
 
Korea's Food Safety Regulations do not necessarily follow international standards and can be 
applied inconsistently.  
 
ANSWER :  
The activities for harmonizing Korea 's food standards with inter national standards have been 
consistently carried out. MAFRA is annually establishing and revising food standards with reference 
to international standards. As a result, most of standards are harmonized with international 
standards except for about 10% of Korean -specific standards related with traditional food  (Kimchi, 
doenjang, gochujang, gwamegi, etc.)  
 
Question 30  
Of the 3,862 Korean Industry Standards identified as applying to food in paragraph 3.75, how 
many have been harmonised with recognised corresp onding international standards?  
 
ANSWER :  
Out of 3,862 food, environment, and other industry standards, 581 are related to food and more 
than 90% of them corresponds international standards.  
 
 
 WT/TPR/M/346/Add.1  
 
- 31 - 
 
  Report by the Secretariat (WT/TPR/S/346)  
3.  Trade Policies an d Practices by Measure  
3.2 Measures Directly Affecting Imports  
Pages 74, paragraph 3.91  
 
The Secretariat's Report refers to "efforts to consolidate all imported food regulations, which were 
scattered among various acts, into a single act, a Special Act on Imported Food Safety 
Management, effective as of 4 February 2016 ". 
 
Australia is concerned that the implementation of the Special Act - in terms of adequate 
consultation with stakeholders, as well as the provision of sufficient timely information of the 
changes to stakeholders - did not reflect the ROK's commitment to enhancing regulatory quality.  
 
Question 31  
What additional steps will the ROK be taking to ensure the smooth implementation of this 
important piece of legislation and to minimise any potentia l disruption to trade?  
 
Australia appreciates efforts by the ROK to better coordinate food safety management tasks across 
various ministries and agencies through the Food Safety Policy Committee. Following the 
implementation of the Special Act on Imported Food Safety Management (Special Act), Australia 
understands that there are now two competent authorities with oversight over the importation of 
food produc ts into the Republic of Korea.  
 
ANSWER : As the Special Act on imported food safety control is in its early stage, MFDS believes 
that no more action is needed to be done to minimize potential trade barrier. However, if there 
were any issue raised from the special act, MFDS is willing to communicate with the counterparts 
on the issue.  
 
Question 32  
How will the ROK coordinate the work of the Ministry of Food and Drug Safety (MFDS) and the 
Ministry of Agriculture, Food and Rural Affairs (MAFRA) to avoid duplicative administrative 
processes for trading partners?  
 
Australia understands that the ROK requires all establishments producing livestock products for 
export to the ROK to register with the MFDS; however, only establishments with existing trade 
were eligible for automatic registration. Further, a list of eligible livestock products was also 
published for ea ch country.  
 
ANSWER :  
Regarding safety management of harmful materials(pesticide residue, heavy material, radiation, 
etc.),MFDS is in charge of imported food products while MAFRA is in charge of domestically 
produced agricultural products. Therefore, admi nistrative process for imported food is centralized 
on MFDS. Though, registration of country of origin is managed by MAFRA, so MAFRA and MFDS are 
coordinating through consultations to avoid duplicative administrative process.  
 
Question 33  
Considering all A ustralian livestock products and establishments producing these products must 
comply with the food safety requirements of Australian export legislation, what is the Republic of 
Korea's justification for restricting market access for establishments/products  which meet the 
same standards but have no history of trade?  
 
Australia understands that under the Special Act, there are provisions to allow the ROK to 
recognise foreign food safety systems as meeting equivalent outcomes to the Special Act.  
 
ANSWER :  
Please refer the below answer to the number 33.  
 
Question 34  
Australia would be grateful for advice on how and when countries can apply for this equivalence 
and an outline of the approval process?  
 WT/TPR/M/346/Add.1  
 
- 32 - 
 
  ANSWER(33~34) :  
The Special Act on Imported Food Safety Contr ol supersedes all other Acts related to imported 
food control.  
In accordance with the Special Act, the Ministry of Food and Drug Safety conducts import 
sanitation assessment when exporting countries apply for import approval for certain livestock 
products (prescribed in the Livestock Products Sanitary Control Act) for the first time.  
However, the livestock products with years of exporting history to Korea are allowed to enter to 
the Republic of Korea, because MFDS considers that the products are proved the ir safety through 
years of import test.  
 
Question 35  
What steps were taken during the consolidation of imported food regulations discussed in 
paragraph 3.9.1 to ensure regulations do not unduly restrict or place a burden upon trade of 
agricultural and food  products?  
 
ANSWER :  
The regulations neither put excessive burden nor restrict unduly on the trade of agricultural 
products and processed foods. However, if there were any issue raised from the special act, MFDS 
is willing to communicate with the counterpa rts on the issue.  
 
 
Report by the Secretariat (WT/TPR/S/346)  
3.  Trade Policies and Practices by Measure  
3.2.9.2 Sanitary and phytosanitary measures  
3.2.9.2.1 Food standards -setting framework  
Page 74, paragraph 3.93  
 
Australia appreciates the work undert aken by the ROK to revise MRLs for pesticides. While it 
appears the ROK has taken a collaborative approach for seeking assistance in setting MRLs, 
Australia does not support the use of a default MRL when no MRL is set. Australia supports the 
development of  MRLs based on a scientific risk assessment, and that countries, where possible, 
should seek to harmonise MRLs with Codex or set low level MRLs, above that of 0.01 mg/kg that 
mitigate the risk to consumers and trade.  
 
Question 36  
How will Korea ensure all  MRL levels are set based on scientific evidence?  
 
ANSWER :  
The purposes of introducing PLS are to establish MRLs for domestic and imported agricultural 
products based on scientific evidence and to manage them under the default MRL if no MRL is set 
for the  products.  
 
 
Report by the Secretariat (WT/TPR/S/346)  
3.  Trade Policies and Practices by Measure  
3.2 Measures Directly Affecting Imports  
Page 75, paragraph 3.94  
 
The Secretariat's Report states that ROK is in the process of shifting to a new positive list  system 
for Maximum Residue Limits (MRLs) noting that this " may prove a significant challenge to 
exporters of fruit and grain if import tolerances are not set at an appropria te level and in a timely 
manner" . 
 
Question 37  
What action will the ROK be taking to ensure the smooth transition to this new positive list 
system?  
 
ANSWER :  
Korea has announced its intention to introduce PLS since 2011. Korea then notified it to WTO in 
2014. In order to facilitate introduction of PLS, Korea adopted import tolerance and  field trial 
research for minor crops.  
 WT/TPR/M/346/Add.1  
 
- 33 - 
 
  Question 38  
Due to the time requirements for MFDS to undertake a review of an import tolerance application, 
and the fixed dates for implementation of the positive list system, what arrangements will be in 
place where  applications are still pending? For example, will there be a grace period or interim 
arrangements or will the MRLs still get removed regardless whether an application is still pending?  
 
ANSWER :  
Please refer the answer below in the question 40.  
Over the p ast six months, the ROK has notified MRL changes through the WTO SPS process 
separately to those being reviewed in the Positive List System (PLS).   
 
Question 39  
How will the ROK change MRLs in parallel to the PLS and whether this will affect those 
commodit ies when they appear in the 2nd or 3rd tranche of the PLS process?  
 
ANSWER :  
Please refer the answer below in the question 40  
 
Question 40  
Australia would appreciate information on how the ROK is changing MRLs in parallel to the PLS and 
whether this will affect those commodities when they appear in the 2nd or 3rd tranche of the PLS 
process.  
 
ANSWER(38~40) :  
Korea plans to establish PLS for nuts, seeds and tropical fruits from Dec. 31. 2016 and to enforce 
PLS for all agricultural commodities (expected to be  December 2018) MFDS expects about four 
times of legislation and modification on PLS are to be carried out in a year.  
 
Question 41  
What steps are being taken to ensure the imposition of the positive list system does not unduly 
restrict or place a burden up on trade of agricultural and food products?  
 
ANSWER :  
Please refer the answer below in the question 42  
 
Question 42  
What plans does ROK have to provide forewarning to exporting countries of changes to import 
tolerances for agrochemicals in order that that  we can determine what food exports are affected 
and to determine testing capability for these substances (if any)?  
 
ANSWER(41~42) : Regarding all MRLs established in Korea, Korea listens to comments of all 
WTO member countries via WTO notification procedur es. Moreover, Korea hosts meetings more 
than four times in a year to provide information on updates of MRLs and PLS.  
 
 
Report by the Secretariat (WT/TPR/S/346)  
3.  Trade Policies and Practices by Measure  
3.3 Measures Directly Affecting Exports  
3.3.3 Export  subsidies  
Page 84, paragraph 3.128  
 
Question 43  
Can Korea make data available on its use of export subsidies in a timely manner? We note that 
such information has not been notified by Korea since 2010, and that Korea had undertaken, 
during the last review , to provide information for 2008 onwards in 2012.  
 
ANSWER :  
Korea is currently on the phase of finalizing and confirming its export subsidy notifications and the 
notifications will be submitted soon.  
 WT/TPR/M/346/Add.1  
 
- 34 - 
 
  Report by the Secretariat (WT/TPR/S/346)  
3.  Trade Pol icies and Practices by Measure  
3.4 Measures Affecting Production and Trade  
Page 94, paragraph 3.169  and 3.170  
 
The Secretariat's Report notes that "State involvement in the economy … persists, as the limited 
privatization efforts during the review per iod w ere widely opposed" .  
 
Question 44  
Has the number of SoEs in the ROK risen since 2012?  
 
The Secretariat reported that no recent data was available from ROK authorities on employment 
by SOEs (88,000 in 2008) or their assets (US$267 billion in 2008), nor wer e data relating to their 
contribution to GDP, their incidence in domestic production and trade (domestic and foreign), 
losses occurred by their operations, and budget outlays provi ded to cover them (since 2008).  
 
ANSWER :  
As Korea 's SOE classification syst em differs from that of OECD, we are currently taking a review on 
our data on public institutions that meet the SOE definition.  
 
Question 45  
Could the ROK please explain whether this information is publically available? If it is not available, 
could the RO K elaborate why?  
 
ANSWER :  
Korea 's classification system for public institutions differs from OECD 's SOE classification system. 
While information on Korean public institutions is available on the web, it is sorted out in 
accordance with the Act on the Mana gement of Public Institutions of Korea, instead of following the 
OECD criteria.  
 
 
Report by the Secretariat (WT/TPR/S/346)  
3.  Trade Policies and Practices by Measure  
3.4 Measures Affecting Production and Trade  
Page 99, paragraph 3.180  
 
The Secretariat's R eport states that "large business groups are still considered as stifli ng growth of 
the country's SMEs" . Australia acknowledges the ROK's efforts to enhance its competition policy 
framework since 2012 in  pursuance of its objective of " economic democratizat ion". However, 
Australia notes that ROK market concentration remains high.  
 
Question 46  
What future measures does the ROK intends to take to bolster competition in its economy, 
including details on priority sectors?  
 
ANSWER :  
The KFTC strives for improvin g policies and law enforcement such as correcting monopolistic 
market structure, eradicating cartel practices, and rectifying unfair trade practices closely related 
to the people 's livelihoods in order to boost economy through promoting market competition.  
 
 
Report by the Secretariat (WT/TPR/S/346)  
3.  Trade Policies and Practices by Measure  
3.4 Measures Affecting Production and Trade  
3.4.6 Intellectual Property Rights  
3.4.6.1 Industrial Property  
Page 105, Paragraph 3.199  
 
Question 47  
Since implementing a process for expediting screening and examination of green technology 
patents, has the ROK seen an increase in the number of relevant applications and any 
corresponding increases in "green technology"  industries? The green technology expedition WT/TPR/M/346/Add.1  
 
- 35 - 
 
  appears to b e limited to only those green technologies benefiting from government supported 
R&D. Would the ROK consider expanding the option to all green technology?  
 
ANSWER :  
As a part of Korea 's Green Certification system, the government grants Green Technology 
Certifications to good and promising green technologies. This technology certification program is 
jointly operated by eight government agencies including the Ministry of Environment, the Ministry 
of Science, ICT and Future Planning, the Ministry of Land, Infra structure and Transport with the 
leadership of the Ministry of Trade, Industry and Energy  (launched on 14 Apr il 2010) . 
 
 
Report by the Secretariat (WT/TPR/S/346)  
4.  Trade Policies by Sector  
4.1 Introduction  
Page 113, paragraph 4.3  
 
The Secret ariat's Repor t states that the " energy sector has not seen an y significant reform since 
2012" and notes that " State -owned companies continue to play a major role, and prices are often 
regulated (for natural gas and electricity) ".  
 
Question 48  
Does the ROK have any fut ure plans to liberalise its energy sector to increase competition and 
boost efficiency, including any plans for privatising relevant SOEs, deregulation, and moving 
towards market -based tariffs?  
 
ANSWER :  
In June 2016, Korea announced restructuring measures  for public energy companies in a move to 
enhance the efficiency and management of public firms in the energy sector. Similar or 
overlapping functions in public organizations will be consolidated or merged, underperforming 
businesses disposed of, non -core business reduced and companies gradually opened to 
competition.  
 
 
Report by the Secretariat (WT/TPR/S/346)  
4.  Trade Policies by Sector  
Page 113, paragraph 4.5  
 
Foreign equity restrictions apply to several services sectors, notably facilities -based 
teleco mmunications, air transport and maritime services.  
 
Question 49  
Does Korea envisage changing Korean law and policy to ease foreign equity restrictions to the 
services sectors listed above?  
 
ANSWER :  
The ROK annually reviews the restricted business areas, i ncluding the scope and definition of 
restricted areas, aligning with domestic laws of individual sectors and FTAs. For example, the 
Aviation Act is going to be amended to rescind a foreign investment restriction on the aircraft 
maintenance, repair and over haul field. It may enter into force in 2017.  
 
 
Report by the Secretariat (WT/TPR/S/346)  
4.  Trade Policies by Sector  
4.2 Agriculture and livestock  
Page 115, paragraph 4.17  
 
The Se cretariat's Report states that " possibly prohibitive out -of-quota rates remai n in place for 
many commodities"  and then goes on to note the "out-of-quota rates for  rice and rice products at 
513%" . 
 WT/TPR/M/346/Add.1  
 
- 36 - 
 
  Question 50  
Does the ROK have any plans to progressively reduce its out -of-quota rates for rice and rice 
products?  
 
ANSWER :  
Korea had b een subject to special treatment rate on rice as a result of Uruguay Round until 2014. 
Rice tariffication has been administered starting from 2015. Tariff rates for rice were calculated 
according to the guidelines in Annex 5 of the WTO Agreement on Agricul ture. 
 
 
Report by the Secretariat (WT/TPR/S/346)  
4.  Trade Policies by Sector  
4.2.2.1.3 Export restrictions, and export subsidy programmes  
Page 117, paragraph 4.26  
 
The Republic of Korea' last notification on its export subsidy programs for certain farm pr oducts 
was in 2010 for the years from 2005 to 2008.  
 
Question 51  
Could the ROK please update its export subsidy notificat ions in accordance with its 
WTO commitments?  
 
ANSWER :  
Korea is currently on the phase of finalizing and confirming its export subsidy  notifications and the 
notifications will be submitted soon.  
 
 
Report by the Secretariat (WT/TPR/S/346)  
4.  Trade Policies by Sector  
4.2 Agriculture and livestock  
4.2.2 Policy developments  
4.2.2.2 Domestic support  
4.2.2.2.2 WTO notifications  
Page 119, para graph 4.32  
 
Korea's most recent notification on domestic support covered the 2011 calendar year.  
 
Question 52  
Could Korea please advise when it intends to make a further notification?  
 
ANSWER :  
We are still collecting data for domestic support notificatio ns since 2011.  
 
Question 53  
Could the ROK please update its domestic support to agriculture notifications in accordance with its 
WTO commitments?  
 
ANSWER :  
We are still collecting data for domestic support notifications since 2011.  
 
 
Report by the Secretar iat (WT/TPR/S/346)  
4.  Trade Policies by Sector  
4.4 Energy  
Page 126; paragraph 4.65  
 
Consistent with President Park's Three Year Plan for Economic Innovation,  which includes 
SOE-reform as a priority policy (paragraph 1.11, Chapter 1, page 18), according to  the 
Secretariat, the ROK is considering partial privatisation of energy SOEs such as Korea Electric 
Power Corporation (KEPCO) and Korea Gas Corporation (KOGAS). Australia welcomes this news.  
 WT/TPR/M/346/Add.1  
 
- 37 - 
 
  Question 54  
What are the ROK's plans to partially privatise it s energy sector, including the extent to which 
foreign firms will be eligible to part icipate in ROK's energy market?  
 
ANSWER :  
In June 2016, Korea announced restructuring measures for public energy companies in a move to 
enhance the efficiency and manageme nt of public firms in the energy sector. Similar or 
overlapping functions in public organizations will be consolidated or merged, underperforming 
businesses disposed of, non -core business reduced and companies gradually opened to 
competition.  
 
 
Report by the Secretariat (WT/TPR/S/346)  
4.  Trade Policies by Sector  
4.5 Manufacturing  
4.5.3 Shipbuilding  
Page 133 -134; paragraphs 4.113; 4.116 - 4.119  
 
According to the Secretariat, ship financing is provided mainly through two state -owned export 
credit agencies, and that in 2014, the shipbuilding industry received ₩5.5 trillion (US$5.3 billion), 
or 13.9% of the total export credit provided by Korea EXIM -Bank. The ROK also announced in 
November 2013 a ₩900 billion support scheme, for the development of basic resear ch and human 
resources. The worsening performance of the ROK shipbuilding sector brings risks to the ROK 
government.  
 
Question 55  
Could the ROK please elaborate on its future levels of official support to its ship -building sector?  
 
ANSWER :  
The Korean gov ernment does not have a plan to provide public support to any specific sector, 
including shipbuilding industry, in the foreseeable future. Of course, the government, in 
accordance with relevant laws, plans to implement mitigating policies such as unemploym ent relief 
measures, but they target overall market and economy, rather than specific sectors.  
 
With regard to restructuring of shipbuilding sector, the Korean government is informed that the 
three major shipbuilders and McKinsey & Company are developing industrial restructuring scheme; 
and based on the consulting outcome, the three shipbuilders would voluntarily decide whether to 
conduct further restructuring or not.  
 
Question 56  
Noting the Korean Development Bank (KDB), the Financial Services Commission (FSC), the Korea 
Finance Corporation (KOFC), the Export -Import Bank of Korea (KEXIM), and the National Pension 
Service (NPS) all hold significant shares of major shipbuilding companies; could the ROK elaborate 
on the exposure of these institutions arising from the struggling shipbuilding sector?  
 
ANSWER :  
As of June 2016, approximate amount of exposure of the five institutions as follow:  
1) KDB: ₩14trillion or US$ 12.7billion (Exchange rate:  US$1=₩1,110)  
2) KEXIM: ₩27trillion or US$24.5billion (Exchange rate: US$ 1=₩1,110)  
3) The rest of the three institutions are irrelevant given that they are not financial 
institutions.  
 
 
Report by the Secretariat (WT/ TPR/S/346)  
4.  Trade Policies by Sector  
4.6 Services  
Page 136, paragraph 4.127  
 
It has been almost four years since the ROK's legal market was opened. Moreover, the Secretariat 
notes that Korea has not made any new offers concerning services since it submi tted its revised 
conditional offer in 2005. In the face a changing global economy, developing and maintaining 
world -class services necessarily requires ongoing exposure to ideas through competition from the WT/TPR/M/346/Add.1  
 
- 38 - 
 
  international market and drawing international be st practice. The Secretariat's Report st ates that: 
"[l]abour productivity of the services sector… remains at about half of that of the manufacturing 
sector and is far below the OECD average ". 
 
Question 57  
Australia would be interested to know whether, as p art of its efforts to enhance productivity, the 
ROK has plans to further deregulate and liberalise its services sector, including beyond its current 
commitments under GATS and also relevant FTAs?  
 
ANSWER :  
the service sector as a means to draw dynamism in the Korean economy and create jobs.  
Priorities of this strategy include:  
 
1) Promoting a convergence between service and manufacturing sectors  
Today, government policies designed to support businesses often focus on manufacturers, 
effectively discriminatin g service providers. Addressing this problem is expected to promote 
industrial convergence and help generate high added value in the manufacturing sector through a 
synergy with the service sector.  
 
2) Infrastructural innovation for the service sector  
The g overnment will increase investment in service -related R&D, while encouraging the private 
sector to do the same. Plus, more support will be offered to service -related training programs and 
overseas market exploration.  
 
3) Focusing on seven promising industr ies* 
* Healthcare, tourism, cultural contents, education, finance, software and logistics  
For all 7 promising industries, development plans will be devised and tailored in consideration of 
various factors including global trends and technological progress.  
To date, at a policy level, the government has supported international institutions' investment in 
Korean healthcare, tourism and education sectors to boost competitiveness.  
Such efforts have been translated into:  
a) Introduction of open -investment foreig n hospitals in Free Economic Zones and the Jeju 
Island (e.g. the Greenland Hospital in Jeju Island)  
b) Renowned foreign universities to open campuses in Korea (State Univ. of New York, George 
Mason Univ.)  
c) Foreign investment in resort complex projects in  Korea (LOCZ resort in Yeongjong Island, 
the Jeju Myth and History Theme Park)  
Furthermore, as liberalization of service sector further will be considered upon its commitment 
under GATS and relavant RTAs.  
 
 
Report by the Secretariat (WT/TPR/S/346)  
4.  Trade Policies by Sector  
4.6 Services  
Page 136, paragraph 4.128  
 
Preside nt Park's economic agenda, the " Three -Year P lan for Economic Revitalisation" , focuses on 
public sector -reform, innovation and moving the economy away from a dependence on export -led 
growt h towards greater domestic consumption and a larger, more productive services sector. 
Despite the rhetoric on economic reform, high levels of regulation and scrutiny of foreign firms 
continue to act as a deterrent to Australian companies entering the Korea n market. Specific 
barriers include a complex and unpredictable regulatory environment. Australian stakeholders are 
also concerned that Korea's approach to opening up its legal sector is contrary to the spirit of 
Korea's FTA obligations, including KAFTA.  
 
Question 58  
What steps are being taken to ensure implementation of regulatory transparency commitments for 
foreign financial service providers contained in the various RTAs identified in paragraph 4.128?  
 
ANSWER : 
Korea has been implementing commitments un der various FTAs in financial services, in particular, 
those relating to the Transparency principle. For example, in order to ensure investors ' WT/TPR/M/346/Add.1  
 
- 39 - 
 
  predictability for Korean financial regulatory environment, Korea extended the period of gathering 
comments from  the market participants when revising or introducing laws or regulations in 
financial m arkets from 20 days to 40 days.  
 
Question 59  
What steps are being taken to ensure implementation of regulatory transparency commitments for 
service providers in general  contained in the various RTAs identified in paragraph 4.128?  
 
ANSWER :  
The review of commitments will be conducted in compliance w ith provisions of relavnat RTAs . 
 
Question 60  
What is the status of reforms to market access for foreign providers of legal s ervices as committed 
to in the various RTAs identified in paragraph 4.128?  
 
ANSWER :  
Korea has legislated and revised the Foreign Legal Consultant Act (FLCA) to liberalize its legal 
market, as agreed under the RTAs. Enacted in September, 2009 to implement the first -phase 
liberalization, the FCLA allows foreign law firms to establish, subject to certain requirements, 
representative offices (Foreign Legal Consultant Offices, FLCOs) in Korea and relocate their 
attorneys in Korea to provide legal advisory servi ces regarding the laws of the jurisdiction in which 
they are licensed and public international law as Foreign Legal Consultants (FLC).  
The FLCA was amended in April  2011 to adopt the second -phase liberalization, which allows FLCOs 
to reach specific cooper ative agreements with Korean law firms to jointly handle cases where 
domestic and foreign legal issues are mixed and share profits derived from such cases.  
The second reform of the FLCA to introduce the third -phase liber alization was completed in 
June 2016 whereby Korea allows foreign law firms to set up, subject to certain requirements, joint 
venture law firms with Korean law firms and to employ Korean -licensed lawyers as partners or 
associates.  
Note that Korea opens up its legal market according to its FTA commitments. As of 2016, countries 
subject to the first -phase liberalization are EFTA member states, India and China, and those 
benefiting from the second -phase liberalization are ASEAN member states, Peru and New Zealand. 
Korea is to open up its legal  market at the third -phase level to the EU, the United States, 
Australia, Canada, Columbia and Vietnam.  
 
 
Report by the Secretariat (WT/TPR/S/346)  
4. Trade Policies by Sector  
4.6.2 Financial Services  
Page 136, paragraph 4.131  
 
The financial services secto r is regulated under the Financial Holding Companies (FHCs) Act of 
2009, the Financial Investment Services and Capital Markets Act, and the Banking Act. The FSC is 
in the process of revising the Banking Act, to increase the ownership ceiling to 50% for 
internet-only banks, and to lower the minimum capital level to ₩25 billion for internet -only banks.  
 
Question 61  
What does the ROK forecast as being the economic benefits of the changes to its Banking Act?  
 
ANSWER :  
The revised Banking Act would enable an IT firm to head and steer an internet -only bank by 
holding up to 50% of share, possibly ushering in launch of multiple, competitive internet -only 
banks that provide fintech services. This would promote greater competition and innovation within 
Korean financia l sector and facilitate introduction of innovative  financial services such as 
mid-range interest rate loans using big data and easy payment/remittance services.  
 
Question 62  
What other steps are being taken to attract internet -only banks to the financial sector?  
 
ANSWER :  
In addition to revising the Banking Act to promote introduction of internet -only banks, we have 
amended financial regulatory framework to make it less focused on face -to-face businesses, for WT/TPR/M/346/Add.1  
 
- 40 - 
 
  example, giving exemption from requirement to k eep hard -copy of internal rule at all branches. 
Also, to help internet -only banks firmly establish their businesses at the initial stage, we are 
applying supervisory regulations in a flexible manner, for example, giving 3 years of grace period 
until applyi ng Basel III standards.  
 
 
Report by the ROK (WT/TPR/G/346)  
3  Economic Policy  
3.1 Three -Year plan for Economic Innovation  
Page 6, paragraphs 3.6 -3.315  
 
The ROK's Report highlights the importance of structural reform in the finance sector and outlines 
the ROK's regulatory reform efforts.  Australia notes that according t o a recent OECD working 
paper: " administrative guidance has been a ma jor issue in the finance sector" .2  
 
Question 63  
What steps have been taken to address the use of such shadow regulation?  
 
ANSWER :  
In the past, shadow regulation including administrative guidance was implemented at the 
discretion of working -level staff of the FSS without undergoing internal control procedure, mainly 
to boost the staff 's convenience. On the other hand, it was  customary for the financial institutions 
to comply with those rules in the same manner they comply with legal/regulatory framework. In 
view to improving such practice, the FSC/FSS reviewed the necessity of every single case of 
administrative guidance and repealed them if it is determined unessential – as a result, we 
reduced the number of administrative guidance to 50 as of September 2016, which is a significant 
drop from what used to be 700. In addition, we have set up a strict internal control procedure 
including consultation duty, sunset clause requirement, etc., and adopted FSS code of conduct 
including preventing supervisor from imposing disadvantages for non -compliance of administrative 
guidance, all aiming to enhance transparency of the system. Such principles and procedures are 
set out in the Implementing Rules of Financial Regulations (Prime Minister 's Decree) which entered 
into effect from January 2016.  
 
 
Report by the ROK (WT/TPR/G/346)  
3  Economic Policy  
3.3 Sectoral Policies  
Page 9, paragraphs 3 .32-3.36 
 
The ROK's Report notes to the release of a Se rvice Economy Development Plan "to foster the 
service sector"  and "for the transition to a developed economy driven by services ". It also states 
that "[r]egulations that serve as barriers to growth wil l be modified' and refers to " reform o f 
relevant laws and regulations" . 
 
Australia is concerned that the February 2016 restrictive amendments to the Foreign Legal 
Consultants Act do not sit comfortably with the ROK's stated aim of economic growth through 
development of its services sector.  
 
Question 64  
What is the ROK's policy rationale for these overly prescriptive amendments and what are the 
ROK's future plans for liberalising its legal services sector consistent with its commitment to free 
trade?  
 
ANSWE R: 
The aboved metioned issue will be conducted in compliance with relavant provision and schedule 
of related RTAs  
 
 
                                                
2 Raising Korea’s Productivity Through Innovation and Struct ural Reform, Economics Department 
Working Papers No. 1324 (06 -Sep-2016); OECD ECO/WKP(2016) 48  WT/TPR/M/346/Add.1  
 
- 41 - 
 
  Report by the ROK (WT/TPR/G/346)  
4. Trade and Investment Policy  
4.1 Multilateral and Plurilateral Trade Agreements  
Page 10, paragraph 4.2  
 
As a Member of the WTO, Korea has attached great importance to WTO -led trade liberalization, 
adopting it as the core principle of its trade policy, and continues to seek liberalization in goods, 
services and investment.  
 
Question 65  
What steps are being ta ken to liberalize trade in services in the ROK?  
 
ANSWER : 
Relavant actions are unerway in compliance with provisions and schedules of related RTAs  
 
 
Report by the ROK (WT/TPR/G/346)  
Improving foreign investment attractiveness  
Page 12, paragraph 4.19  
 
In October 2014, the Enforcement Decree and Enforcement Rules of the Foreign Investment 
Promotion Act were amended to provide incentive for globa l business headquarters and 
R&D centers. Foreign workers and technicians who work in these headquarters or R&D cent ers 
receive income tax incentives.  
 
Question 66  
What tax incentives are offered to foreign workers and technicians who work in global business 
headquarters or R&D centers?  
 
ANSWER : 
The amount of income tax on the earned income that foreign workers who work  in global business 
headquarter shall be determined by multiplying the relevant income by 17%, instead of 
progressive tax rate (6~38%), under the Article 18 -2, of the Restriction of Special Taxation Act. 
And the foreign technicians who work in R&D centers shall be granted a tax reduction equivalent to 
50% of the income tax on earned income.  
 
 
Report by the ROK (WT/TPR/G/346)  
5 The Way Forward  
Page 13, paragraph 5.2  
 
Korea will also undertake institutional improvements in the form of regulatory reform as a w ay to 
enhance market transparency and efficiency, which will in turn boost productivity. This will be 
accompanied by constant efforts to build a transparent investment environment.  
 
Question 67 
Which regulations will the ROK target in its regulatory reform  agenda?  
 
ANSWER :  
Korea 's regulatory reform agenda include: i) improvement of regulations that impact emerging 
industries; ii) user -oriented regulatory reform that involves the participation of businesses and the 
public; and iii) ease of regulatory challe nges that small and medium enterprises and micro 
businesses experience, as a means to develop a strong foundation for revitalizing economy.  
 
Question 68  
What other steps are being taken to foster market transparency?  
 
ANSWER :  
Please eraborate furhture mo re about meaning of market transparency in your question, is there 
any concerning areas of you would like to know more about?  WT/TPR/M/346/Add.1  
 
- 42 - 
 
  QUESTIONS FROM CHINESE TAIPEI  
PART I: REPORT BY TH E SECRETARIAT (WT/TP R/S/346)  
1. ECONOMIC ENVIRONMENT  
Page 12 (Para 1.1) 
Intern ational trade and foreign direct investment (FDI) trends reflect the continued importance of 
Asia-Pacific as Korea's main regional market and supplier, though China, the European Union, and 
the United States remain its major individual trading and FDI part ners. Furthermore, trade under 
free trade agreements (FTAs) has risen during the review period  
 
Question(s):  
1. In recent years, Korea has had many FTAs enter into force.  (Including the China and 
South  Korea FTA on December 20, 2015) However, on a y -o-y basis , Korean exports have 
been contracting for 19 consecutive months. Have exports not been boosted as greatly as 
expected despite the conclusion of FTAs?  
 
ANSWER :  
Due to slow down of global economy as well as competion with other developing countries and 
others, Koean export has ben declined  
 
2. What are the Korean government's response policies given the situation of sluggish exports?  
 
ANSWER :  
Korea has made efforts in order to ensure momentum for an  economic recovery from the 
low-growth trend of the global economy through three year economy innovation plan and creative 
economy and others as to enhance growth potential of the Korean economy.  
 
 
Page 29 (Para 2.11) 
Trade and industrial policies are formulated and implemented by the Ministry of Trade, Industry 
and Energy (MOTIE), which replaced the Ministry of Knowledge Economy (MKE) in 2013. The 
MOTIE formulates trade policies and makes policy decisions in consultation with the relevant 
stakeholders, including not only representatives from other government mini stries such as the 
Ministries of Strategy and Finance; Agriculture, Food and Rural Affairs; Justice; Land, 
Infrastructure and Transport; but also stakeholders from the private sector such as the Korea 
Chamber of Commerce and Industry (KCCI), and the Korea International Trade Association (KITA). 
The MOTIE and the Korea Trade -Investment Promotion Agency (KOTRA) jointly hold Foreign 
Investment Advisory Council meetings regularly, where foreign firms may advise the Government 
on foreign investment policy (Secti on 2.7).  
 
Question(s):  
1. While formulating trade policies and making policy decisions, how does the MOTIE work with 
other government ministries and the private sector? What mechanisms are used in the 
process?  
 
ANSWER : 
MOTIE has been operating the "Trade Pro motion Committee ", which is a committee for 
collaboration in trade with relevant ministries and discussion on trade -related issues on a regular 
basis. Apart from those regular meetings, we convene special meetings from time to time, when 
there is a particu lar agenda needing immediate attention. In terms of the private sector, we have 
the "Trade Industry Forum ", inviting representatives from a wide range of industries including 
manufacturing, services, agriculture and fisheries. The private sector can report  on pending trade 
issues and situations through this channel.  
 
 
Page 31 (Para 2.17) 
Korea's general trade policy objective remains to build a free and open economy based on market 
principles. To promote international competitiveness of its businesses and e conomic growth, Korea 
has been making efforts to improve access to key markets, through participation in multilateral 
negotiations, as well as negotiations for more RTAs and close economic cooperation with its WT/TPR/M/346/Add.1  
 
- 43 - 
 
  trading partners. (……)To accomplish these goal s, MOTIE identified the following policy priorities:  
(……). 
• pursuing a trade policy devoted to the national interest and economic benefits, by 
preparing a trade strategy that will earn more public support through better communication 
with related interest  groups and other ministries (according to the authorities, objectives of 
the current trade strategy include: actively pursuing mega free trade agreements (FTAs) 
aiming at regional economic integration; seeking new FTAs with promising emerging 
economies on  a reciprocal basis; and actively participating in the WTO's 
multilateral/plurilateral negotiations on further trade liberalization with a view to helping 
Korea bring innovative changes to its domestic industrial structure) . 
 
Question(s) : 
While shaping its  trade policy, the Korean government is actively seeking public support. In the 
current era of social networks, many people obtain information via new media and social 
networking. How does Korea collect public opinions in this way to seek public support?  
 
ANSWER : 
Tradenavi.go.kr is one of websites the Korean government launched and you can access various 
trade policies and information as well as provide your opinion related to trade policy.  
 
 
2. TRADE AND INVESTMENT REGIME  
2.7 Foreign Direct Investment  
2.7.2 FDI Restrictions  
Page 42(P ara 2.51)  
Since the previous Review, there have not been any major changes in the country's FDI 
restrictions. However, some changes were made regarding the broadcasting and 
telecommunications sectors. In 2015, the Government st ipulated exceptions to foreign investment 
restrictions in domestic laws regarding the broadcasting sector (including programme distribution 
and internet multimedia broadcast services) and telecommunications businesses, to reflect the 
requirements of some R TAs. 
 
Question(s):  
1. Could Korea please provide details of the exceptions to foreign investment restrictions 
regarding the broadcasting and telecommunications sectors which were stipulated in relevant 
domestic laws that were amended in 2015?  
 
ANSWER : 
SEE TAB LE 2.3  
 
 Broadcasting via satellite and other 
 broadcasting  No more than 49% foreign equity (no more than 20% 
foreign equity for general programming; and no more 
than 10% foreign equity for specialized programming 
of news reports)  
Exceptions  
No foreign eq uity restriction for:  
(1) program providers, except for general 
programming, specialized programming of news 
reports, or specialized programming of sales;  
(2) according to the FTA between Korea and the 
United States  
Telecommunications (wired, wireless, satellite, and 
other telecommunication)  No more than 49% foreign equity  
Exceptions  
No foreign equity restriction for:  
(1) passing the examination of the Public Interest 
Examination Committe e;  
(2) according to the FTA between Korea and the 
United States,  between Korea and the EU, between 
Korea and Australia, and between Korea and Canada.  
 WT/TPR/M/346/Add.1  
 
- 44 - 
 
  2. Do these exceptions only apply to signatories of relevant RTAs? If so, what are the relevant 
RTAs?  
 
ANSWER : 
Telecommunication Services : Korea - United States FTA, Kor ea – EU FTA, Korea – Australia FTA, 
and Korea – Canada FTA   
Broadcasting Services : Korea - United States FTA  
 
 
3. TRADE POLICIES AND PRACTICES BY MEASURE  
 
Page 50 (Para 3.15)  
As indicated in Paragraph 3.15, Page 50 of the Report of Secretariat of S/346, s ince July 2014, a 
de minimis clearance process for consumption goods purchased online and priced at US$150 or 
lower has been implemented, which will exempt the aforementioned goods from documentation 
and taxation requirements.  
 
Question(s):  
 
1. Could Korea pl ease explain the conditions of the requirements traders shall meet in order to 
apply for the simplified clearance procedures?  
 
ANSWER : 
(Express Shipments) For the "list clearance" , the express shipment company is required to be 
registered in accordance wit h the Subparagraph 6, Paragraph 1, Articles 222 of the Customs Act.  
(Postal Items) Commercial items are excluded from the simplified clearance and are subject to 
general import declaration.  
(Clearance for Personal Effects of Travellers) Items which are ca rried by travellers for the purpose 
of the use in a compa ny with the value less than US$ 10,000 such as items for repairs, samples, 
and raw materials, can be applied with simplified clearance procedures on the spot.  
 
2. We would also like to know about the det ailed procedures of the simplified clearance process.  
 
ANSWER : 
(Express Shipments) General goods of express shipmen ts with the value less than US$ 150 are 
exempt from import declaration and are cleared in a simplified manner with the submission of a 
list of items to be cleared.  
(Postal Items) General postal ite ms with the value less than US$ 150 are exempt from import 
declaration and on the spot they are processed with tax exemption. Ite ms with the value less than 
US$1,000 are subject to the submission of a  simplified declaration and the notice of tax 
assessment.  
(Clearance for Personal Effects of Travellers) Required documents are an invoice (receipt), a 
photocopy of the passport, and the slip of custody, which need to be submitted to a customs 
official. I ssuance of tax invoices requires application of original tax rates.  
 
 
3.2.9 Standards And Other Technical Requirements  
 
Page 69 (Para 3.72) 
KATS is implementing a technical regulatory impact assessment (TRIA) aiming to comprehensively 
review costs, advanta ges, impacts and compatibility of regulations for technical regulation issues. 
In 2015, out of 602 cases suggested for adjustment 52% were adjusted.  
 
Question(s):  
1. Could Korea provide more information on the technical regulatory impact assessment (TRIA) 
implemented by KATS, such as relevant regulations other than the Framework Act on 
Administrative Regulations, methodology, and administrative procedures? In addition, is public 
consultation one of the review items of the TRIA procedures?  
 
ANSWER :  
KATS establ ished "Working Group for Technical Regulatory Reform " within itself in accordance with 
"Rule on Operation and Establishment of Working Group for Re gulatory Reform to propel WT/TPR/M/346/Add.1  
 
- 45 - 
 
  Field-centered Regulation Innovation(Prime Minister 's directive No. 638) " and condu ct impact 
assessment in the field of testing, inspection and certification as well as technical regulation.  
Moreover, KATS collects opinions from industry and associations to check "trend and characteristic 
of technical regulation ", "whether there is spec ial favor for specific firm or person or not " and 
"Use-availability and accessability of stakeholders about related facilities, environment, labour and 
systems when changed standards applied ". 
 
 
Page 69 (Para 3.75) 
At April 2016, 19,880 (97%) of KSs had be en harmonized with corresponding international 
standards. … In April 2016, approximately 66% of KSs were subject to international ISO/IEC 
harmonization.  
 
Question(s):  
1. What are the international standards with which KSs have been harmonized other than ISO o r 
IEC standards since the harmonization rate of 97% is higher than that of ISO/IEC? In other 
words, we are interested in knowing what the "international standards" are in terms of the 
harmonization rate of 97%.  
 
ANSWER :  
Among 20,358 kinds of KSs in 2015, 13,847 sorts of standards are involved with international 
ISO/IEC standards. Among them, only 13,434 standards have been harmonized with ISO/IEC 
standards, and this number shows the rate of 97 percents (13,434 divided by 13,847).  
As described in the last s entence of paragraph 3.75, approximately 66%(13,434 divided by 
20,358) of KSs were subject to international ISO/IEC harmonization.  
 
 
3.2.9.2 Sanitary And Phytosanitary Measures  
3.2.9.2.1 Food Standards Setting Framework  
Page 75 (Para 3.94)  
Since 2015, Kor ea has been in the process of shifting to a new positive list system (PLS) for 
agrochemical residues which would inhibit the use of non -registered pesticides which are not 
evaluated by scientific assessment and would no longer allow imports of food contain ing 
agrochemical residues unless the substance has been listed, or approved, for the commodity in 
question and an MRL has been established. The MFDS plans to first complete the transition to the 
PLS for tropical fruit and nuts/seeds by the end of 2016; it then plans to complete the transition 
for all other crops by the end of 2018 and veterinary drugs by 2020. In the process of making this 
shift, Korea is requiring new import tolerances for agrochemicals not already registered for use in 
the country. This p rocess may prove a significant challenge to exporters of fruit and grain if import 
tolerances are not set at an appropriate level and in a timely manner; sufficient time for a smooth 
transition to the PLS may be required. After a single MRL violation by an  export shipment to either 
Korea or another country, Korea may impose restrictive import requirements on that product's 
grower, shipper, and importer, and may require a number of compliant shipments to Korea before 
the requirement is removed.  
 
Question(s) : 
1. Could Korea please explain the basis and rationale for deleting the existing MRLs for tropical 
fruits and tree nuts? Why are Codex MRLs or MRLs for similar agricultural  products no longer 
applicable?  
 
ANSWER : The purpose of PLS introduction is to ensure all MRLs are established based on 
scientific evidence such as residue data and diet exposure. Existing MRLs that are introduced 
without risk assessment will be deleted after re -assessments.  
 
2. We request Korea to kindly provide us with the English version of  the relevant regulations and 
contents of the PLS so that we can inform our industries and related businesses.  
 
ANSWER : 
English versions of food sanitation law and food code are available on MFDS webpage.  
* Food Sanitation Act and Food Code: 
http://www.mfd s.go.kr/eng/eng/index.do?nMenuCode=120&page=2 . WT/TPR/M/346/Add.1  
 
- 46 - 
 
  ** PLS Application manual: 
http://www.foodnara.go.kr/residue/article/view.do?articleKey=783&searchTitleFlag=1&boardKey=
0&menuKey=4&subMenuKey=5&currentPageNo=3 . 
 
 
3.2.10 Government Procurement  
Page 79 (Para 3. 109)  
 
Korea operates international tendering and other procurement procedures in accordance with its 
commitments under the WTO Plurilateral Agreement on Governm ent Procurement (GPA). As of 
14 January 2016, the revised GPA came into force for Korea, thus op ening its government 
procurement market to more international competition. During the review period, its list of public 
entities subject to GPA provisions was revised on 22 September 2013 and on 8 May 2016, and 
information on its respective threshold figur es in national curre ncy was provided.132 As from 
18 December 2015, the  WTO GPA threshold has been ₩210 million, down from ₩250 million (or 
from SDR 450,000 to SDR 400,000), whereas since the entry into force of the KORUS FTA 
(15 March  2012, Section 2.6.2), the threshold for goods and services from the United States has 
remai ned at ₩100 million.133 Korea's international tendering system is based on open 
competitive tendering; according to the authorities, restricted tendering is rarely used (see 
below).134 According to the authorities, the value of contracts subject to Korea's  WTO 
Government Procurement Agreement (GPA) commitments dropped to about ₩6.3 billion in 2015 
(₩6.7 billion in 2014), equivalent to about 6% of the value of the entire government procurement 
market. In the case of contracts subject to Korea's WTO GPA commi tments, centralized 
procurement (see below, Public Procurement Service (PPS)) represents 15% of total procurement 
of GPA -covered entities. No detailed statistical data on the participation of WTO GPA -covered 
entities in the government procurement market op erations were available from the authorities; 
Korea's only notifications over the past ten -year period were in 2006 (2004 data) and 2011 
(2010  data).  
 
Question(s):  
1. According to statistics reported in Article XIX:5 of the Agreement by the Republic of Korea,  the 
annual value of contracts subject to Korea's WTO Agreement on Government Procurement 
(GPA) commitments far exceeds those values for 2014 and 2015. Please clarify the values of 
contracts subject to Korea's WTO/GPA commitments for 2014 and 2015, respect ively. The unit 
"billion" may be a typing error.  
 
ANSWER :  
Please revise ₩6.7 billion in 2014 to ₩6,743 billion, ₩6 .3 billion in 2015 to ₩6,335  billion.  
 
 
II. TRADE AND INVESTMENT  REGIME   
2.5.2 Trade -related legislation  
Table 2.1 Main trade - and investment -related legislation amended since 2012  
Intellectual property rights 
protection  Utility Model Act, most recently amended in 2015  
Patent Act, most recently amended in 2015  
Trademark Act, most recently amended in 2016  
Copyright Act, most recently amended in 2016  
 
Question(s):  
1. The amendment to the Korean Trademark Act took e ffect on 1 September 2016. What are the 
key revisions in the amendment?  
 
ANSWER :  
1) To enhance understanding of applicants, simplified the definition of the trademark –"the term 
trademark means a mark used to distinguish goods of one business from those o f others ". 2) New 
definition of "mark" does not set a limit on the organizing method of a mark, 3) Upon request or 
ex officio, a period of each paragraph, only once, may be extended up to 30 days, 4)Person(s) in 
areas with poor transportation service may r equest an extension of  a period, only once, within 
30 days.  
 WT/TPR/M/346/Add.1  
 
- 47 - 
 
  2. When will the English translation be available?  
 
ANSWER : 
It is available now.  
 
 
III. TRADE POLICIES AND PRACTICES BY MEA SURE  
3.4.6  
 
Page 104 (Para 3.198 ) 
 
3.198. After steady improvements over se veral years, IPR administration continued to raise its 
already high efficiency level.250 The rate of electronic applications ("e -application") made to KIPO 
has remained among the highest in the world since 2005; in 2015, 96.3% (94.3% in 2009) of all 
applic ations were filed online. In 2015, KIPO's first action pendency period (i.e. the time it takes 
for a new application to receive an initial response) was an average of 10 (18.5 in 2010) months 
for patent and utility model examinations, and 4.7 (10.6 in 2010 ) and 4.4 (10 in 2010) months for 
trademark and design examinations, respectively. In 2015, 101,873 patents; 3,253 utility models; 
54,551 industrial designs; and 114,747 trademarks were registered, representing a total increase 
of 71.5% compared to 2010. A ccording to KIPO, 475,802 IPR applications including patents, utility 
models, designs, and trademarks were filed in 2015, 28.6% higher than in 2010; 213,694 were 
patent applications (an 25.6% increase from 2010), 46,421  (21.7%) of which were from 
non-residents. 
 
Question(s):  
1. KIPO is a role model in terms of its continuous efforts to improve patent quality and shorten 
examination pendency. In 2015, the average first OA pendency for patent examination at KIPO 
10 months (18.5 months in 2010). What are the meas ures taken by KIPO to smoothen 
examination procedures an d shorten examination pendency?  
 
ANSWER : 
From 2010, KIPO has increased the number of examiners by 178, and also increased outsourcing 
of prior art search. This in turn reduced pressure on examiners ' during examinations, and led to 
the possibility of improving patent quality, as well as, shortening examination pendency.  
 
2. How does KIPO calculate first OA pendency? At TIPO, first OA pendency begins from filing of 
substantive examination request and ends i n issuing of first OA.  
 
ANSWER : 
Same as the TIPO, we calculate first OA pendency from the filing of a substantive examination 
request to the issuing of first OA.  
 
 
Page 105 (Para 3.203 ) 
 
3.203. The Trademark Act (1949, last revised in 2013) protects tradem arks on goods and services 
for ten years upon registration, renewable indefinitely for ten -year periods. Following the entry 
into force of the KORUS FTA, an April 2012 amendment to the Trademark Act allows the 
trademarking of sounds and scents if they are capable of visual representation . It is also possible 
to apply for and obtain certification marks that verify the origin, quality or method of production. 
Trademark registrations may be rejected for a lack of intent to use. In 2013, the Trademark Act 
was f urther amended in a holistic manner for the first time in more than 23 years to address prior 
use of trademarks to, inter alia , protect owners of small businesses who had previously been 
forced to amend their trading names if challenged by new owners of tr ademarks. Consequently, 
the 2013 amendments (effective as of 11 June 2014) included measures to stop the  unjust 
registration and exercise of trademark rights (such as preventing the acquisition of rights in 
violation of the principle of good faith), solve the problem of the prior application principle, and 
crack down on trademark brokers. Under the 2013 amendments, effective as of 6 October 2013, a 
party that, without bad -faith intent, uses a trademark in its name or any personal identifiers, in 
accordance with customary practices, will be able to continue doing so as long as such usage 
started before the application date of a trademark claim. It is now possible for examiners to 
correct minor errors made by applicants and extend the peri od of redress from 14  days to WT/TPR/M/346/Add.1  
 
- 48 - 
 
  2 months in cases where certain procedures were missed due to unavoidable circumstances. In 
2013, the examination standards were revised to allow examiners to investigate, amend, or reject 
trademarks that are highly likely to disturb market order by mimicking famous trademarks, or that 
are filed to acquire rights to valuable pre -existing trademarks . The trademark examination 
standards amendments allowed the rearrangement of the previous legal provisions by classifying 
them according to "part, chapt er, and number" and the updating of other examples and cases, 
thus ensuring that trademark examination standards are easy to understand and that 
examinations are conducted in accordance with the fundamental purpose of the trademark system. 
A new chapter fo r non -visual trademarks (e.g. sounds and scent marks) was added in the 
examination standards.  As of 2015, KIPO had designated 45,000 (15,000 in 2014) names of goods 
and services as a reference for applicants in order to increase their convenience and refle ct 
industrial development.  
 
Question(s):  
 
1. Please tell us about the number of applications for non -visual trademarks at KIPO. How are 
they processed? If any, can you provide relevant statistics? Are there any hurdles when 
processing such applications?  
 
ANSW ER:  
 3D Hologram  Motion  Sound  Smell  Position  
Applications  2036 12 16 46 2 1 
 
2. Is there an English translation of trademark examination guidelines?  
 
ANSWER : 
No, there is no English translation of the trademark examination guidelines.  
 
3. According to the re port, examiners may "investigate" marks that mimic famous trademarks, 
which in turn can disturb market order. Specifically, what are the measures taken in the 
investigation? And to what extent can an investigation be carried out? If any, are the expenses 
for investigation borne by owners of famous trademarks?  
 
ANSWER : 
KIPO trademark examiners do not have the authority to investigate the marks that imitate famous 
marks.  (However, KIPO has an investigation team that specialized in controlling counterfeited 
goods.) Lastly, examiners could search and decide the registrability of a mark during the 
examination process of an application if such mark is likely to have the unfair purpose of imitating 
a famous mark.  
 
 
Page 108 (Para 3.213 ) 
 
3.213. The July 2013 amendm ents to the unfair competition prevention and trade secret 
protection act were aimed at better responding to diverse new types of unfair competition and, 
inter alia , involved: a broader legal basis for punishing acts involving unauthorized use of another 
person's creative achievements; a legal basis for the trade secret certification service ; regulations 
for a system compensating the reporting of counterfeit goods; and, the expansion of the legal 
definition of trade secret possessors from "enterprises" to " individuals". To alleviate the difficulty of 
authenticating trade secret ownership during infringement litigation as from June 2012, the trade 
secret protection centre (http://www.tradesecret.or.kr) has provided useful information for 
protecting corporate trade secrets; a total of 93,256 cases had been received by the end of 
December 2015.  in addition, a standard management system to provide low -cost management 
with minimal staff requirements for companies struggling to effectively manage their trade secret s 
was developed.  
 
Footnote 264: this service operates by taking the hash values from trade secret e -documents and 
combining them with authorized time values from trusted third parties, thereby creating time 
stamps. Time stamps are then registered with the Korea Institute of Patent Information (KIPI) to 
prove the existence of original copies of trade secrets, and well as their initial dates of possession.  
 
 WT/TPR/M/346/Add.1  
 
- 49 - 
 
  Question(s):  
 
Trade secret certification provides tangible proof in terms of existence of information and date of 
possession. How is this certification carried out in practice?  
 
ANSWER : 
By utilizing time stamps from the extracted hash values from trade secret, electronic signatures, 
and time information, we can confirm the existence of original documentati on, as well as the initial 
dates of possession.  
* time value stamp service: electronic technology which confirms the existence of data at certain 
point, and that no changes were made after such point in time.  
 
According to Article 9 -2 subsection 3 of the U nfair Competition Prevention and Trade Secret 
Protection Act, it is assumed that person(s) who are issued a certification of original document of 
trade secrets are in possession of the information as described in the electronic document.  
 
 
Page 111 (Para 3.226 ) 
 
3.226. The MCST may collect, delete or destroy illegally acquired computer programs, and instruct 
internet service providers to reject, suspend or limit pirated products and services. In an effort to 
create a "copyright ecosystem of balance and sha red prosperity" through the establishment of an 
airtight copyright protection network, in 2013, the Government expanded investigation into 
violators of the Copyright Act, while reinforcing online monitoring in vulnerable hours such as night 
hours and publi c holidays by expanding the num ber of online monitoring staff.  
 
Question(s):  
As mentioned, the measures taken include stepping up Internet monitoring. Is this monitoring 
carried out within and outside of Korea? What do you do if you locate rogue sites? How  has this 
monitoring been carried out so far?  
 
ANSWER : 
Korea does monitor websites within and outside of its territory. With regards to monitoring 
websites within Korea, first, we use this program called the ICOP (Illegal Copyright Obstruction 
Program). IC OP is a program that automatically monitors illegal copies of copyright -protected 
works which are uploaded to domestic OSPs, such as Webhards(cyper -lockers). ICOP detects the 
illegal use of protected works through its OSP automatic search function and DNA -based contents 
recognition technology.  
Second, Korea employs 320 telecommuting workers to monitor the websites within Korea. The 
government hires socially disadvantaged groups, such as disabled persons, women who left the 
workforce involuntarily, and pers ons of multicultural families, to help their adjustments in society. 
(They monitor online website of all sorts, including, but not limited to, online forums, message 
boards, blogs, and torrents)  
Once a website is caught for copyright infringement, the Kor ea Copyright Protection Agency will 
inspect the situation and order for rectification if necessary.  
 
With regards to websites outside of Korea, currently only a few websites are being monitored, and 
when the websites infringing copyright are found, the go vernment contacts a relevant copyright 
organization in the country where the website is located, and shuts down the website under the 
joint efforts.  
 
 
4. TRADE POLICY BY SECTOR  
4.4 E nergy  
4.4.2 Hydrocarbons  
4.4.3.1 Oil  
Page 126 (Para 4.67)  
 
Korea imports  99% of its crude oil requirements. Imports of oil came largely from the Middle East 
(82.3% of total crude imports in 2015, down from 87% in 2011), with another 10.4% from Asia, 
5% from the Russian Federation, and 2.4% from the United Kingdom. Diversificat ion of crude oil WT/TPR/M/346/Add.1  
 
- 50 - 
 
  supply has been encouraged by the Government, through subsidizing up to 100% of the additional 
transport cost of importing crude oil from non -Middle East countries (Section 3.2.5).  
 
Question(s):  
1. Are retail oil prices fixed in your country?  If so, how are the oil prices determined? If not, are 
subsidizations for transport costs of importing crude oil from non -Middle Eastern countries 
reflected in the market price of oil?  
 
ANSWER : 
Retail oil price of Korea is determined by the market. Therefo re, the oil price is not fixed.  
 
To support the "diversification of crude oil supply ", Korean government refunds the additional 
transport cost to refiners and/or importers for the non -Middle East country imported crude oil 
within a limit of actually levied  "surcharge on import petroleum " (₩16 per litter).  
 
In 2015, the ratio of the crude oil subsidized by this "diversification of crude oil supply " and 
consumed in the country among total imported crude oil was 7%. And total refunded amount is 
less than 0.1% of total amount of imported crude  oil. 
Considering these low rate of subsidized crude oil quantity consumed in the country and subsidized 
amount among total imported crude oil, the impact of this subsidy to the Korean market price will 
be insignificant.  
 
2. Can you provide further informatio n regarding the Petroleum Business Act of 1977 which 
governs the granting of such subsidies? What are the procedures for granting subsidies?  
 
ANSWER : 
Petroleum Business Act of 1977  prescribes petroleum related regulation such as "Petroleum 
business ", "Petroleum stockpile ", "Surcharge on import and retail petroleum ", "Adjustment of 
supply and demand of petroleum emergency ", "Quality management of petroleum ". 
 
The additional transport cost of importing crude oil from the non -Middle East countries for the 
diversification of crude oil supply, shall be refunded within a limit of actual "surcharge on import 
petroleum " (₩16 per litter)  
1) Condition of Refund of "Surcharge on import petroleum " 
- Over 2 million barrels of crude oil import from Non -Middle East countries ' with 1 year over 
long-term contract (through 2 or more parcels).  
2) Process  
- Relevant companies apply the refund of "Surcharge on import petroleum " to KNOC (Korea 
National Oil Corporation)  
- If application is qualified, KNOC shall refund the Surcharge within a week  
 
 
4.4.3.2 Natural Gas  
Page 127 (Para 4.78)  
KOGAS imports LNG either through long -term contra cts at a rate indexed to crude oil prices, or 
through the spot market. Ten companies such as POSCO, SK E&S, and KOMIPO, have been able to 
obtain licences to import gas for their "own use". There are seven LNG receiving terminals in 
Korea: 4 owned by KOGAS,  1 by POSCO, 1 jointly owned by SK E&S and GS Energy (Boryung, to 
be operational from late 2016), and 1 under construction. KOGAS is the only wholesaler and is also 
the TSO (transmission system operator) of gas in Korea. KOGAS is listed on the Korean Stock  
Exchange, and its owners include the central government (26.15%), KEPCO (20.47%), local 
governments (7.93%), and the Treasury (5.07%).  
 
Question(s):  
1. Can you provide a more general legal framework for licensing the importation of natural gas? 
What are the procedures and criteria for such licensing? Are there any legal or material 
restrictions on foreign companies to acquire such a licence? Are there any legal restrictions on 
gas imports other than the licencing of imported gas for "own -use"?  
 WT/TPR/M/346/Add.1  
 
- 51 - 
 
  ANSWER : 
 Accord ing to the related laws and rules, urban gas business operators for gas wholesale 
 business(gas wholesaler) and direct importer for his/her own consumption are classified as 
 any person who counducts natural gas export and import.  
 Any person that intends t o conduct natural gas export and import business shall file for 
 registration with the Minister of Trade, Industry and Energy, as prescribed by Ordinance of 
 the Ministry of Trade, Industry and Energy. (Article 10 -2(1) of Urban Gas Business Act)  
 [Procedure ] any person who intends to file for registration under shall file the registration 
 form attached by its work plan with the Minister of Trade, Industry and Energy 30 days prior 
 to a prospective date of the first import clearance.(Article 10 -6 of Enforcem ent Decree of 
 Unrban Gas Business Act)  
 [Facility Standards]  
 Any general urban gas business entity shall install facilities for storing the quantity amount 
 to 30 day's domestic natural gas sale plan.  
 Any direct importer for his/her own consumption shall install facilities for storing the 
 quantity amount to 30 day's natural gas self consumption plan for the initial year of the 
 same business. ( Article 3 -1 of Enforcement Decree of Urban Gas Business Act)  
 There is no different treatment for foreign compani es in acquiring such a license.  
 Any person that intends to conduct gas wholesale business shall obtain permission from the 
 Minister  of Trade, Industry and Energy.  
 
Where a natural gas export and import business entity that is an urban gas business entity intends 
to conclude an import, export, or transportation contract of natural gas, he/she shall obtain 
approval from the Minister of Trade, Industry and Energy after fully meeting the requirements, 
such as necessity of such export, import, or transportation  in light of supply of and demand for 
urban gas, appropriateness of price, etc., as prescribed by Ordinance of the Ministry of Trade, 
Industry and Energy.(Article 10 -5(1) of Urban Gas Business Act)  
 
2. The Secretariat report shows that more than 50% of KOGAS' s shares are publically controlled 
although they were listed on the Korean Stock Exchange. Given this information, are there any 
possible restrictions on the transactions of KOGAS's shares?  
 
ANSWER : 
Restrictions on the transactions of KOGAS 's shares are th e following two that are based on 
KOGAS's Article of Incorporation, and related Act.  
- Limitation on holdings of stocks by foreign shareholders (Article 11 of KOGAS Article of 
Incorporation)  
- The percentage of KOGAS's stock held by foreign shareholders in total should not exceed 
thirty(30) % of the total number of issued stocks  
- Limitations on holdings of stocks by same person (Article 18 of Act on the Improvement of 
Managerial Structure and Privatization of Public Enterprises)  
- same person, regardless of the nationality, is not allowed to hold stocks in excess of fifteen 
(15)% of the total number of outstanding voting stocks of a designated corporation. However, the 
central and local governments of Korea and Korea Electric Power Corporation(KEPCO), who 
acquired KOGAS's stocks prior to the enforcement of the Act in 1999, shall not be governed by the 
Article 18 of the Act.  
 
 
4.6.3.2 Postal Services  
Page 145 (Para4.172 、4.173、4.174)  
4.172. Some postal services are reserved for Korea Post: delivery of letters if the weight of each 
letter is not more than 350 grams and the postage charge for each such letter does not exceed 
ten times the ordinary postal charge prescribed b y presidential decree. Registered letters 
dispatched by a state agency or local government are also reserved for Korea Post. Apart from 
these reserved services, postal services are open to domestic competition. According to the 
Foreign Investment Promotion  Act, postal business is not open to foreign investment.  
 
4.173. Universal postal service, reserved for Korea Post, is defined as:  
a. Letters weighing below two kilograms per item;  
b. Parcels weighing below 20 kilograms per item;  
c. Mail items with val ue added features including recorded items of the above categories.  WT/TPR/M/346/Add.1  
 
- 52 - 
 
  4.174. Korea Post sets postal rates, in consultation with the Ministry of Strategy and Finance. 
Consultation is not required for postal rates for domestic and international parcels, Expre ss mail 
services and postal money orders. The authorities indicated that in 2015, Korea Post made a profit 
with 39% of its income linked to postal financial services and 37% to letter services (Chart 4.2).  
 
Question(s):  
1. According to Paragraph 4.172, "Posta l business is not open to foreign investment".  What kinds 
of businesses are included under the term "Postal business"? Please explain and give 
examples? At present in Korea, have any "Postal Service" or "Postal business" operations been 
opened to private o perators?  
 
ANSWER : 
The Postal Law of Korea stipulates that postal services in Korea shall be operated by the State. 
Accordingly, operation of postal businesses and provision of postal services – i.e. Installation of a 
post office and handling of postal ite ms – are not open to the private sector. The sentence, which 
you mentioned in the question, "Postal business is not open to foreign investment " could be 
interpreted in the context of this Law. But in Korea as well, there are private service operators 
providing delivery services in similar kinds of postal services, although they are referred to as 
"Courier Services, " distinguished from "Postal Services. "  
 
2. In Paragraph 4.173, what does "Mail items with value added features including recorded items 
of the abo ve categories" mean?  
 
ANSWER : 
More specifically, they refer to the postal items with a supplementary feature such as registered 
mail, contents -certified mail, domestic express mail, etc.  
 
3. Referring to Para 4.174, Korea Post made a profit with 37% of income  linked to letter services. 
Please indicate the categories and scope of the "letter."  Is the scope confined to reserved 
letters that range below  350g and 10 times the ordinary postal charge? In addition, does 
Korea have any postage adjustments of pricing formula s for "letter s"? 
 
ANSWER :  
In regard to Question No. 3, the part "Korea Post made a profit with 37% of income linked to letter 
services " is an inaccurate data, and we submitted a revised version to WTO. To correct the 
information, 32% of the total in come of Korea Post in 2015 was linked to letter services. As for the 
last sentence of your question "In addition, does Korea have any postage adjustments of pricing 
formulas for "letters"? " we found it hard to identify what it exactly means. So, could you clarify the 
sentence once again?  
Regarding the categories and scope of the letter, the categories of letters include correspondences 
such as letters, currencies, and small packets.  
A letter shall have a size less than 90cm in sum of width, height, thicknes s. And the weight scale 
of a letter ranges from 2 g to 6kg. Letters also include reserved letter items weighing below 350 g 
and with a price under 10 times the ordinary postal charge.   
 
 
PART II: REGARDING T HE GOVERNMENT REPORT  (WT/TPR/G/ 346) 
3. ECONOMIC PO LICY  
3.2 Regulatory Reforms  
Page 6 (Para 3.12)  
Strong leadership guided the creation of a regulatory reform framework. Launched in March 2014, 
the Ministerial Meeting on Regulatory Reform is chaired by the President while another mechanism, 
on-site inspec tion meetings for regulatory reform, is led by the Prime Minister.  
 
Page 7 (Para 3.13)  
The entire regulatory system was also improved through measures such as the "cost -in, cost -out" 
system, regulation impact assessment and the Regulatory Reform Sinmungo24  among others.  
 
Page 7 (Para 3.14)  
Introduced in January 2014, the "cost -in, cost -out" system offsets the cost of newly creating or 
reinforcing regulations by abolishing or relaxing existing regulations. Regulations can now be WT/TPR/M/346/Add.1  
 
- 53 - 
 
  analysed in more detail than ks to the adoption of the regulation impact assessment system in a 
number of areas including competition, SMEs and technical regulations.  
 
Question(s):  
1. The report indicates that the Ministerial Meeting on Regulatory Reform is chaired by the 
President while  another mechanism, on -site inspection meetings for regulatory reform, has 
been led by the Prime Minister since 2014. Please specify how this mechanism can be 
promoted to accelerate regulatory reform.  
 
ANSWER :  
The Ministerial Meeting on Regulatory Reform,  chaired by the President, aims to find and improve 
regulations that contain significant impacts. The On -site Inspection Meeting for Regulatory Reform, 
chaired by the Prime Minister, aims to ease on -site regulatory challenges and to oversee the 
progress of  regulatory reform efforts. Through these mechanisms that bring forth concerted efforts 
of the entire cabinet members along with the leadership of the President, regulatory reform has 
been pursued as a top priority of national agenda.  
 
 
2. The report indicate s that the government has promoted the "cost -in, cost -out" system since 
January 2014. When passing or implementing newly creating or reinforcing regulations, this 
increases the cost of regulatory compliance. However, this also offsets the cost of newly 
creating or reinforcing regulations by abolishing or relaxing existing regulations. Please specify 
the model for promoting the "cost -in, cost -out" system. Also, how does the government decide 
which existing regulations should be abolished or relaxed?  
 
ANSWER :  
The report indicates that the government has promoted the "cost -in, cost -out" system since 
January 2014. When passing or implementing newly creating or reinforcing regulations, this 
increases the cost of regulatory compliance. However, this also offsets the cost of newly creating 
or reinforcing regulations by abolishing or relaxing existing regulations. Please specify the model 
for promoting the "cost -in, cost -out" system. Also, how does the government decide which existing 
regulations should be abolished  or relaxed?  
 
 
3.3.3 Energy  
Page 8 (Para 3.29)  
The supply quota of new and renewable energy was raised to stimulate production and 
distribution. In order to expand private sector participation in the energy market, the direct sale of 
electric power produce d from solar energy to consumers or businesses will be allowed. Companies 
using energy storage systems (ESS) will be permitted to engage in the electricity sales business, 
and investors in new energy industries such as ESS will be able to purchase electric ity directly 
from the electric power market. In addition, complicated regulations will be modified to foster new 
energy industries including electric vehicles, solar energy and ESS.  
 
Question(s):  
 
1. Can you briefly indicate the possible direction for modify ing related regulations under the said 
goal of promoting new and renewable energy?  
 
ANSWER :  
For promoting energy new industry including renewable energy, MOTIE announced comprehensive 
regulatory reform plans in July, 2016.  
It is planned to accelerate over seas expansion based on expanding domestic foundation and to 
foster as an alternative industry which supplements key industries with drastic deregulation and 
concentrated support.  
Currently, in the area of new and renewable energy, "Solar+ESS linking with REC", "Allowing large 
building solar development offset " and "Allowing small scale new and renewable development grid 
connections " etc. has been improved.  
 
2. Are there any restrictions on foreign companies which seek to invest in renewable energy in 
your cou ntry? 
 WT/TPR/M/346/Add.1  
 
- 54 - 
 
  ANSWER : There are no special restrictions on foreign companies in renewable energy field.  
 WT/TPR/M/346/Add.1  
 
- 55 - 
 
  QUESTIONS FROM SWITZERLAND  
Report by the Secretariat (WT/TPR/S/346)  
 
1.3.1 Monetary and Exchange rate policy  
 
Paragraph 1.7  (first line) " Monetary policy has  been conducted by the independent Bank of Korea 
(BOK) mainly on the ba sis of an inflation target […]" : What is meant by mainly? What is (are) the 
other indicator(s) that has (have) been followed by the BOK?  
 
ANSWER :  
Kidnly eraborate further your question , meaning other indicators, follow up answer will be 
provided.  
 
 
2.3 Structure of trade Policy Formulation  
 
Para 10 states that the authorities indicated that the objective was to, inter alia, utilize science and 
ICT as the key sources for a creative econ omy. Can Korea give a concrete example of how science 
could be utilized as a source of a creative economy?  
 
ANSWER :  
A case in point would be TEGway 's "Wearable thermo -element ". 
Wearable thermo -element is a source technology developed by utilizing bendable  and flexible 
thermo -element with the support from the Korean government. Since receiving governmental 
support, it has attracted private investment and established TEGway to commercialize its products.  
Wearable thermo -element technology was awarded the Gr and Prix in December 2014 as one of 
"UNESCO 's Top 10 Technologies that will Change the World. " Since then, the technology has been 
utilized in various fields such as recharge of smart devices, healthcare and military purposes and it 
is expected to pioneer into new markets, widening its scope of usage in the future.  
 
 
2.4 Trade Policy Objectives  
 
Para 2.16  presents the main objectives of the Three -Year Plan for Economic Innovation. Could 
Korea expose to what extent notions of sustainability and environmenta l issues are incorporated in 
the Three -Year Plan for Economic Innovation?  
 
ANSWER :  
The 3 -year Plan for Economic Innovation has three goals to achieved, Economy with strong 
fundamentals; Growth through Innovation; and Balance between exports and domestic 
consumption. Even though it doesn 't have clear environmental issue as a manner of clear goals, 
the Korean government is considering sustianabiltiy and environmental issues as one of priorities 
in its economic policies.  
 
Para 2.17  displays the policy priori ties to reach the objectives of the Three -Year Plan for Economic 
Innovation. One of those policy objective is to foster a cooperative industrial ecosystem, especially 
for small and medium -sized businesses, by enforcing market rules  (second bullet point). C ould 
Korea specify what market rules will be enforced? And which authority is responsible for the 
enforcement of such rules?  
 
ANSWER :  
The 3 -year Plan for Economic Innovation is currently being implemented in a smooth manner. The 
Plan's outcomes are increa singly visible, especially with regards to structural reforms and creative 
economy. Designed to reduce high turnover rate of Korean SMEs, this program helps asset 
building for small - and medium -sized company workers. If a newly -hired employee deducts a set  
amount from his/her paycheck, the government and the employer both will match the same 
amount or more of worker 's contribution with contributions of their own. The fund accumulated will 
be given to the worker if he/she works at the company for two full ye ars, thereby increasing the 
worker 's total income.  
 WT/TPR/M/346/Add.1  
 
- 56 - 
 
  3. Trade policies and practices by measure  
3.2.3 Tariffs  
3.2.3.1 Applied MFN tariffs  
 
Para. 3.30, page 54:  According to the WTO Secretariat report (para. 3.30) there are over some 
130 different rate bands  in the Korean MFN applied tariff, of which about 43 involve decimal rates. 
The report continues by indicating " The Korean tariff could be rationalized, for, example, by 
reducing the large number of rate bands and remove decimal rates ." 
 
 Could Korea consid er removing decimal rates in the first place and then reduce the number 
of bands? Are there plans in Korea to start at least a study on the feasibility of this trade 
facilitating measure?  
 
ANSWER :  
Korea already signed FTAs with a number of trading partner s and Korea is also under several FTA 
negotiations with other countries. In this regard, Korea plans to realign our overall tariff regime 
including simplification and reduce tariff rates at some point where Korea concludes the ongoing 
negotiations of FTAs,  RTAs, WTO DDA and plurilateral agreement.  
 
 
3.2.3.3 "Flexible" tariffs  
 
Para. 3.34 page 57, 58:  According to the report, Korea applies "flexible" tariffs to encourage or 
discourage imports of particular items to stabilize prices, protect local producers a nd ensure a 
steady supply . Thus, the system allows the authorities to  increase or decrease certain tariffs at 
their discretion . 
 
 Could Korea indicate on which criteria do the authorities base their decision to increase or 
decrease the "flexible" tariffs?  
 How often are these tariffs adjusted?  
 How are exporters to Korea informed of those changes?  
 
In addition, the system of adjustment duties seems to be rather complex.  
 Could Korea specify how the system works in practice?  
 For instance, how does the syste m function in relation to boosting exports?  
 
ANSWERS (for 5 questions above) :  
The Customs Act stipulates that quota tariff is designed to reduce tariff rates temporarily and 
limitedly for the purpose of stabilizing the economy, strengthening industrial co mpetitiveness and 
controling imbalance in tariff rates, and that adjustment tariff is applied also temporarily and 
limitedly in times of concerns that domestic markets might be disturbed and industrial 
infrastructures might be collapsed.  
ㅇ In general, thos e flexible tariffs are applied limitedly within a range of one year, depending on 
the domestic economic situation. Under the regime, the related Presidential Decree needs to be 
revised in order to designate the subject items and time schedule. Such revisio ns are notified 
through the official Gazette, and the following is the web address of the Gazette: 
http://www.moi.go.kr . 
 
 
3.2.3.6 "Usage" tariff rates  
 
Para. 3.44  indicates that «  usage  » tariff rates relate to imported inputs for specified end -uses. 
 
 Could Korea provide more details on how the system works? Is there a time limit for an 
imported input to be exempted from tariffs?  
 
ANSWER :  
Korea imposes different tariff rates on goods depending on their usage. Among those rates, a 
lower one becomes usage tariff rate. If an importer wishes to be applied by usage tariff, s/he 
should submit an application for usage tariff rate to the Korean customs house for approval at the 
time of import declaration. The application should include the information of usage, d escription, 
size, etc. of the goods.  WT/TPR/M/346/Add.1  
 
- 57 - 
 
  - During the period specified in the Customs Act from the date on which import declaration is 
accepted, the good applied by usage tariff rate cannot be used except for the approved usage or 
transferred to others. Otherw ise, the duty amount calculated based on usage tariff rate is imposed 
on the person who is used the good except for the approved usage or to whom the good is 
transferred.  
 
 Which criteria are the basis for taking such a decision?  
 
ANSWER :  
An importer need s to submit an application for usage tariff rates to get an approval from the head 
of a customs house. If approved, the customs house will provide follow -up control for the importer.  
 
 Is the list of activities in para. 3.44 exhaustive?  
 If not, could Korea  provide an exhaustive list of activities benefitting from this scheme?  
 
ANSWER( for 2 questions above):  
There is no such list of activities or items. Goods for a specific usage are specifically designated or 
marked to be applied by flexible tariff in the H SK classification.  
 
 
3.2.4 Tariff quotas  
3.2.4.1 Agricultural tariff quotas  
 
Para 3.51:  Tariff quotas, and the import quota on rice (until end -2014), are administered or 
allocated by 24 different organizations (as of 2016) including ministries, state tradi ng entities 
(such as the Korea Agro -Fisheries and Food Trade Corporation (aT) commissioned by the Ministry 
of Agriculture, Food and Rural Affairs (MAFRA) (until March 2013, Ministry for Food, Agriculture, 
Forestry and Fisheries)), and various producer asso ciations. In some cases, the administering 
agency is owned or controlled by domestic producers competing with the imported item. With the 
exception of the National Agricultural Cooperatives Federation, the National Forestry Cooperative 
Federation, and the Jeju Citrus Growers' Agricultural Cooperative, producers associations include 
members that process foodstuffs imported under tariff quotas. Credible import administration 
would require that directly interested parties are not directly involved in controlli ng imports. The 
authorities indicated that in most cases the administering agency (e.g. Korea Feed Association, the 
Korea Corn Processing Industry Association, the Korea Paper Association, the Korea Dairy Industry 
Association, and the Korean Soybean Proces sors' Association) does not produce goods competing 
with the imported items but utilizes them for processing foodstuff or for breeding animals as 
domestic agricultural production cannot meet demand for ingredients or raw materials used for 
processed food.   
 
 The Secretariat Report describes that "in some cases, the administering agency is owned or 
controlled by domestic producers competing with the imported item". How can Korea ensure 
that this import administration has no negative effect on importers that w ant to import their 
product into Korea? Does the government foresee any changes in this system in order to 
guarantee a more credible import administration?  
 
ANSWER :  
Domestic producers that administer tariff quotas do not directly compete with the imported  items 
but rather are in a complimentary relationship with them, since they are also distributers and 
processors who handle both imported and domestically produced agricultural products.  
The producers are administering tariff quotas in order to use importe d items for processing, and 
those producers are often the only consumers of some TRQ products, including breeding fowls, 
birds' eggs, breeding pigs, breeding cattle, and seedlings.  
 
Para 3.52:  Mechanisms used for quota allocation (depending on the product)  include the 
auctioning of quotas, allocation to designated agency, real demand allocation, and a combination 
thereof. State -trading enterprises impose additional mark -ups on top of the in -quota tariff on 
various items (Section 3.2.7). Most state -trading e nterprises are engaged directly in marketing 
imports by selling through wholesale markets or distributing directly to final users. State -trading 
enterprises, producer associations, processor associations and importing companies allocate 
quotas. The authori ties indicated that, as of 2016, only 1 item (rice) was state traded, 2 items 
(chestnuts and  WT/TPR/M/346/Add.1  
 
- 58 - 
 
  ginseng) were auctioned, 49 items (including maize, barley, and potatoes) were allocated on a real 
demand basis, and 11 other items (including ginger and onion) w ere allocated through state -
trading and other methods.  
 
 The Secretariat's report indicates that there are agricult ural products affected by 
state-trading enterprises in the administration of tariff quotas. How does Korea ensure that 
the tariff quota admin istration is carried out in a non -discriminatory way?  
 
ANSWER :  
The Korean government is making efforts to improve transparency, fairness and efficiency in TRQ 
administration including state trading, auction, and other allocation methods.  
As a result of ef forts fornon -discrimination in state trade, most of seven items under state trading 
management in 2015 recorded high fill rates at 100% for five, 94% for one, and 14% for one.  
 
 
3.3.3 Export subsidies  
 
According to para. 3.128 , Korea does not have export s ubsidy commitments. The latest available 
export subsidy notification of Korea is rather outdated.  
Although the report indicates that the Korean authorities intend to notify export subsidies from 
2008 onwards in the course of 2016, no such notification has  been made yet.  
 
 When does Korea intend to notify its missing export subsidies' notification?  
 
ANSWER :  
Korea is currently on the phase of finalizing and confirming its export subsidy notifications and the 
notifications will be submitted soon.  
 
 
3.4.6 Inte llectual property rights  
3.4.6.3 Enforcement  
 
We welcome the fact that the Republic of Korea generally provides strong IPR protection and 
enforcement. We would appreciate to receive information on the average length of patent disputes 
in the Republic of K orea. Furthermore, we also would like to ask if injunctions are available during 
those disputes in order to prevent possible infringements.  
 
ANSWER : 
Preliminary and permanent injunctions are available for patent disputes under the Korean patent 
litigation system. A preliminary injunction, which is a temporary court order made to prevent 
further injury to a patent holder, can be issued before rendering a final and conclusive judgment. 
In the case of a preliminary injunction, the cessation of the infringement  shall be demanded in 
accordance with Article 304 (Provisional Disposition to Fix Temporary Position) of the Civil 
Execution Act.    
 
 
4.3.1 Overview (Fisheries)  
 
Para 4.50:  How does Korea determine the Total Allowable Catch (TAC)? Does Korea integrate 
notions of sustainability (for instance sustainable management of fisheries to avoid overfishing and 
the depletion of fisheries resources) in determining the TAC?  
 
ANSWER : 
The total allowable catch(TAC) is determined considering the desired value of the accep table 
biological catch(ABC) and the recent level of catch in order to prevent overfishing and pursue 
sustainable use of the fisheries resources.  
Fisheries species which are subjected to TAC are managed to be used sustainably, thus, there is 
low possibilit y of them becoming overfished.  
 
 WT/TPR/M/346/Add.1  
 
- 59 - 
 
  4.3.4 IUU fishing  
 
In light of Korea's fight against IUU fishing, as stated in para 4.57, does Korea plan to join the 
WTO plurilateral talks on fisheries subsidies recently launched (14 September 2016) in Washington 
on the  margin of the third Our Ocean Conference ? 
 
ANSWER :  
We fully take note of the importance of protecting fishery resources, for instance, by fighting 
against IUU fishing. However, when it comes to our participation in the plurilateral talks on 
fisheries sub sidies, we need to consider all relevant factors comprehensively, such as the specific 
content and target level of the negotiations. In addition, there are also domestic procedures that 
need to be carried out.  
 
Korea strengthened the penalties and raised the level of sanctions for those engaged in IUU fishing 
by amending the related legislations, established and is operating Fisheries Monitoring 
Center(FMC), and supports countries that are exposed to IUU fishing by passing on our experience 
and technology in order to combat IUU fishing.  
The decision on whether to join the WTO plurilateral talks on fisheries subsidies is to be made afte r 
the announcement of more specific contents and goals of the negotiation, and when int ernal 
discussion are concluded.  
 
 
4.4.4 Coal  
Para. 4.91  states that the subsidies for coal distorting resource allocation and encouraging 
excessive consumption of coal are to be terminated by 2020. What measures does Korea consider 
in order to support low -income groups? Furthermore, are ther e other fossil fuel subsidies in place 
distorting trade? If this is the case, are there plans for a phasing out of these subsidies?  
 
ANSWER :  
In the plan Korea submitted in 2010 to abolish its fossil fuel subsidies included support funds for 
coal productio n stabilization and briquette making. At that time, the briquette coupon was 
excluded since its purpose is to reduce the burden of heating costs on low -income families in 
winter time.  
 
 
4.6.2 Financial Services  
In paragraph 4.143  the document states that Korea began introducing end 2013 Basel III 
capita l-adequacy regulations for banks and that Korean banks are well capitalized (above the Basel 
III requirements). In the same paragraph, the report informs that in December 2015 the FSC and 
the FSS designated five banks as D -SIBs.  
 
a) Could you tell us the criteria used by the Korean authorities to designate a bank as D -SIB? 
 
ANSWER :  
According to article 26 -2 of "Regulation on supervision of banking business " and article 25 -2 of 
"Supervisory regulations on financ ial holding companies ", banks or bank holding companies are 
scored as a weighted average of five assessment categories including size(total exposure), 
interconnectedness(intra -financial system assets/liabilities, securities outstanding), substitutability  
(payments activity in KRW, payments activity in foreign currencies, assets under management), 
complexity(notional amount of OTC derivatives, trading and A FS securities), and 
two country -specific factors(foreign currency denominated debt, household debt).  
 
b) We would like to know if exist freely available information about the formal process adopted 
by the Korean authorities to designate banks as D -SIBs?  
 
ANSWER :  
Overall information about designation  process of D -SIB is included in "Regulation on supervision of 
banking business ", "Detailed regulation on supervision of banking business ", "Supervisory 
regulations on financial holding companies ", and "Detailed supervisory regulations on financial 
holding companies " which are both publicly disclosed on FSC/FSS(Fin ancial Supervisory Service) 
website (www.fsc.go.kr , www.fss.or.kr ) (only in Korean) . Also, the list of D -SIBs are disclosed 
every year via FSC/FSS press release.  WT/TPR/M/346/Add.1  
 
- 60 - 
 
  c) Could you tell us what are the additional requirements imposed on D -SIBs in Korea, in 
particula r relation to the Basel III capital -adequacy regulations?  
 
ANSWER : 
According to the article 26 -2 and appendix 2 -12 of "Regulation on supervision of banking 
business ", and article 25 -2 and appendix 3 -4 of "Supervisory regulations on financial holding 
compan ies", once identified as a D -SIB, the bank or bank holding company with SI scores between 
600 and 1,400 is subject to the higher loss absorbency (HLA) requirement of 1% (0.25% by the 
end of 2016 considering the phase -in) from 01 -01-2016. The HLA requiremen t should be met with 
common equity capital. There is an empty bucket (for banks with SI scores over 1,400) with a HLA 
requirement of 2 % to discourage banks or bank holding companies from getting more 
systemically important. If a foreign bank branch is des ignated as a D -SIB, it is not subject to a 
HLA requirement. Instead, it will face a higher LCR requirement of 100% (85% by the end of 2016 
considering the phase -in). WT/TPR/M/346/Add.1  
 
- 61 - 
 
  QUESTIONS FROM THE EUROPEAN UNION  
 
 
WT/TPR/S/346 – WTO Secretariat's Report  
 
1 ECONOMIC E NVIRONMENT  
1.3 Main Macroeconomic Policy Developments  
1.3.1 Monetary and exchange rate policy  
 
Reference is made to the nominal depreciation of the ₩/US$ exchange rate. A high current 
account surplus and high level of reserves are clear indicators of an undervaluation of the Korean 
currency following the IMF comments.  
 
EU question No 1 : Could Korea explain the movements in international foreign exchange markets 
that support a systematic purchase of foreign currencies to weaken the Korean Won? What is the 
main reason for a new swap currency agreement with the Ba nk of Japan?  
 
ANSWER :  
The KRW 's depreci ation against the US$  in 2015 was mostly affected by external factors. For 
example, major economies continued their different monetary policies, such as the U.S. Fed 's rate 
hike and the ECB 's quantitative easing, and risk aversion intensified due to a weak er RMB and 
China 's unstable stock market. The Korean government basically runs the floating exchange rate 
system, where the exchange rate is market -determined, and does not pursue an artificial foreign 
exchange policy which sets a specific target level or direction for the exchange rate.  
 
 
1.3.3.5 Labour market policies (and also Government report paragraph 3.8, page 6)  
Paragraph 1.17, page 20  
 
Both reports point to labour reforms needed to address, inter alia, labour market rigidities and to 
promote social  cohesion.  
 
EU question No 2 : In the context of Korea's labour reforms, what actions did Korea take or is 
planning to take towards ratification of the fundamental ILO conventions it hasn't yet ratified, 
notably ILO Convention 87 on freedom of association, Convention 98 on right to organise and 
collective bargaining, Convention 105 on abolition of forced labour and Convention 29 on forced or 
compulsory labour?  
 
ANSWER :  
There seems to be no direct correlation between the report and ratification of the ILO co nventions, 
but the Government continues to make efforts to foster an environment to ratify fundamental 
conventions which are yet to be ratified.  
 
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.2 Measures Directly Affecting Imports  
3.2.1 Customs procedures  
Paragraph 3.13, page 50  
 
The inspection of gourmet products, e.g. saffron or ham (of different qualities), implies a big loss 
for exporters due to the big sizes of the samples required for analysis. Furthermore, in the EU's 
view, the size of the samples doe s not consider the high price of these products.  
 
EU question No 3 : Is Korea envisaging any measure to find a balanced mechanism to carry out 
analysis and at the same time minimize value loss for importers?  
 
ANSWER : 
The two sides confirmed that EU also doe sn't have measures to differentiate the required volume 
of food samples in accordance with the value of the food through the KOR -EU SPS Committee on 
June 2015.  WT/TPR/M/346/Add.1  
 
- 62 - 
 
  As MFDS expressed its intention many times during the bilateral meetings between the two sides, 
if European side provides relevant regulations or science -based evidence regarding the matter, 
MFDS is willing to refer them.  
Currently, MFDS is reviewing the document received from the EU on September 2016.  
For the food samples which are classified as "appropriate to import ", MFDS would return the rest 
of food samples if importer wants to take them back. MFDS believes that would reduce importer 's 
financial burden of collecting food samples.  
On the other hand, recently, saffron from EU member states freq uently failed to meet safety 
standard due to metal granule detection in samples, MFDS would highly appreciate if exporters 
pay more attention on food quality control.  
 
 
3.2.9 Standards and other technical requirements  
3.2.9.1 Standards, testing, and certif ication  
 
Another example concerns the certification of medical devices. While the Korean Agency for 
Technology and Standards (KATS) implemented its fourth National Standards Plan (2016 – 20) 
with key policy goals including, among other policies, the eradic ation of redundant certification 
systems, EU companies consider that the certification of medical devices remains too burdensome 
as the testing is still too complicated and expensive.  
 
EU question No 4:  Could Korea give an overview of the actions envisage d to simplify its testing 
procedures?  
 
ANSWER :  
Korean government will resolve financial burden of companies and market -entry regulation by 
reorganizing irrational certification system which causes unnecessary cost and time.  
Every newly established certif ication including mandatory and voluntary should be screened in 
advance.  
Moreover it will construct regular monitoring system by operating integrated certification and 
management system .  
 
 
3.2.9.2 Sanitary and phytosanitary measures  
3.2.9.1.2 Food, healt h-related and other measures  
Paragraph 3.78, page 71  
 
Any person intending to import medical devices or pharmaceuticals must obtain an item -specific 
approval from, or file a notification with, the Ministry of Food and Drugs Safety (MFDS) in 
accordance with  the relevant law. Item -specific pre -approval involves the submission of extensive 
clinical trial data and other safety and efficacy -related data as prescribed by the Pharmaceutical 
Affairs Act Enforcement Decree.88. Manufacturers must submit detailed data  on certain active 
pharmaceutical ingredients under the MFDS's Drug Master File.  
 
EU question No 5 : Only a few countries have obtained the Korean recognition of their national 
pharmaceutical directory and their companies enjoy the exemption for clinical t rial data and other 
safety and efficacy -related data according to the MFDS Notification 2013 -238 on 
25 November  2013. When will Korea proceed to update and recognize national pharmaceutical 
directories from other countr ies? 
 
ANSWER : 
According to MFDS 's not ification, recognition of pharmaceutical compendium means that MFDS 
refers to other countries ' approval status to enhance efficiency of pharmaceutical approval when 
there is a request for approval of OTC drugs published in pharmaceutical compendium.  
MFDS did not introduce this system to exempt certain countries from submission of required data.  
When it comes to recognition of pharmaceutical compendium, MFDS takes into overall  
consideration the country 's regulatory competence including verification level o f safety and efficacy 
of pharmaceuticals, as well as consumption history of OTC drugs from the country.  
 
 
Paragraph 3.80, page 71  
Reference is done to the reviews carry out by the MFDS on cosmetics and the relevant import WT/TPR/M/346/Add.1  
 
- 63 - 
 
  procedures applicable to cosmeti cs. The EU is w ell aware that general cosmetics, as illustrated, 
should go through the so -called EDI (Electronic Data Interchange) system and regrets to 
acknowledge that, although this system was initially aimed at simplifying the lengthy customs 
clearance  process and at saving costs and time on the part of importers, it has long caused 
concern about its discriminatory features, on the basis that only the imported goods are subject to 
"approval " by a private organization, i.e. the KPTA. Moreover, the KPTA k eeps a scanned copy of 
all the submitted documents including the manufacturing certification (containing the product 
formulation) and the sales certificate, which require appropriate actions to preserve confidential 
and business -sensitive information .  
 
EU questions No 6 -7: Is Korea envisaging any actions to tackle the de facto  discrimination against 
imported goods under the EDI system. In addition, the EU would like to know what measures are 
in place to ensure the appropriate management of confidential and  business -sensitive information.  
 
ANSWER :  
The EDI system is not discrimination but the minimum measures to confirm the influence of 
imported goods on consumers.  
Domestic cosmetics are strictly managed by registration of manufacturing business and penalty  for 
act violation, But this does not apply to imported goods. So it is necessary that importer should 
prove the safety by reporting information of imported products in customs clearances.  
KPTA has a public responsibility within the scope of doing business  for the ministry of food and 
drug safety, and carries out its own tasks under the management and supervision of the 
government.  
Korea would like to know the detailed cases which EU business groups are damaged by the 
leakage of confidential -sensitive infor mation through KPTA.  
 
 
Paragraph 3.86, page 71  
According to the report, the MFDS facilitates food imports through the "authorization of foreign 
official laboratories" system and the "pre -confirmed registration system of imported foods". The 
former covers inspection agencies authorized by the Government of the exporting countries and 
the MFDS; it includes 59 agencies in 9 countries.  
 
EU question No 8:  Could Korea explain whether there are any plans to increase its manpower for 
onsite inspections abroad in order to be able to respond to the huge  demand of exporting 
countries?  
 
ANSWER : 
MFDS is trying to secure additional professional manpower for onsite inspections.  
 
 
3.2.9.2.1 Food standards -setting framework,  
Paragraph 3.91, Page 74  
 
Following efforts to c onsolidate all import food regulations, which were scattered among various 
acts, into a single act, a Special Act on Imported Food Safety Management, effective as of 4 
February 2016, requires all foreign food facilities and establishments to be registered and assessed 
by the MFDS.  
According to the available information, companies which have exported food to Korea before 
February 2016 are exempted from the assessment. This measure concerns only new companies 
coming to Korea after February 2016. The registra tion is rather complex and lengthy in 
comparison to other developed countries .  
 
EU question No 9:  Could Korea confirm that the measure (certification) concerns only new coming 
(after February 2016) companies?  
 
ANSWER :  
The registration  concerns only new c oming companies. Companies with prior registration record on 
their facilities and establishments are exempted from the registration . Countries wish to export 
their livestock products to the Republic of Korea must issue their health certificates and submit 
them when they report import of livestock products. Otherwise, original or duplicated copy of WT/TPR/M/346/Add.1  
 
- 64 - 
 
  health certificate for export should be submitted under the format which exporting and importing 
countries agreed to use.  
EU question No 10:  Does Korea have any plan to simplify the registrat ion and assessment by the 
MFDS?  
 
ANSWER :  
Food companies can register their facilities or establishments via online webpage. MFDS does not 
have any plan to further simplify current registration procedure as MFDS believes it do es not incur 
any incontinence for foreign companies and it requires only minimum information.  
On the other hand, foreign establishments intend to export livestock products to the Republic of 
Korea must fill out the Application for Registration (Updating) of Foreign Establishments and make 
a request to the Korea's Ministry of Food and Drug Safety for a registration of foreign 
establishment through the government of the exporting country.  
 
The implementation of the new Act is creating administrative duplicit ies in fresh meat products as 
both QIA (Quarantine Inspection Agency) and MFDS request two original sanitary certificates.  
 
EU question No 11:  Is Korea planning new procedures to facilitate the certification procedure fo r 
fresh meat products?  
 
ANSWER :  
EU Countries intending to export livestock products to the Republic Korea must issue the health 
certificate s for export and the certificate s should be submitted when exporting countries report 
import of livestock products. The health certificate for export can be replaced with duplicates of 
quarantine certificates which are issued under the Livestock Products Sanitary Control Act.  
 
 
Paragraphs 3.93 and 3.94, pages 74 -75 
Maximum residue levels  
 
The report indicates that the Maximum Residue Levels (MRLs) are est ablished based on the 
scientific residue data, and the MFDS tries to harmonise them with the CODEX tolerance whenever 
possible until full enforcement of the positive list. In the process of making the shift to a new 
positive list system, Korea is requiring  new import tolerances for agrochemicals not already 
registered for use in the country, which requires data from the applicants.  
 
EU questions No 12 -13: How is Korea contemplating a process of convergence on these MRL limits 
allowed in food, towards the le vels generally accepted by the international standards setting 
bodies? How will Korea ensure that shifting to the new positive list is smooth and that applicants 
have enough time to upda te the data needed by the MFDS?  
 
ANSWER :  
Korea notifies relevant info rmation regarding legislation and amendment on establishing MRLs and 
introducing PLS to WTO in order to share them with other member countries.  
Also, Korea announced its intention to introduce PLS since 2011. To facilitate smoother 
introduction of PLS, Ko rea also adopted import tolerance and field trial research for minor crops.  
 
 
3.2.9.2.2 Quarantine regulations  
Paragraph 3.101, page 76  
 
Korea bans all fresh fruits and vegetables from most countries and requests a risk assessment 
with onsite inspection to  raise the ban on a particular product. MAFRA (Ministry of Agriculture) 
applies a rule of ¨one country, one product¨ each time they start a negotiation. In the EU's view, 
this rule is highly inefficient since not all the countries have the same exporting p otential.  
 
EU question No 14:  Could Korea explain whether it has any plans to review this rule and to 
proceed to new market openings for fresh fruits and vegetables?  
 
ANSWER : 
Korea carries out a risk assessment procedure for agricultural products and plant s based on the 
scientific evidencein accordance with international standards. Pest Risk Analysis (PRA) for on the WT/TPR/M/346/Add.1  
 
- 65 - 
 
  subject item is implemented according to the order of prioritiesupon the request of the exporting 
country. This is because we cannot proceed w ith PRA proced ures simultaneously for all 
190 requested items by 40 different countries due to the limited specialized workforce.  
 
 
Paragraph 3.102, page 77  
 
Quarantine regulations and transparency  
 
The report indicates that Korea bans the imports of anim als and their products from countries 
affected by exotic animal diseases such as foot -and-mouth disease and bovine spongiform 
encephalopathy (BSE). The EU remains concerned of the situation as some main trading partners 
are allowed to export beef to Korea,  and others are not, even if the countries carry the same OIE - 
determined risk status.  
 
EU questions No 15 -16: Could Korea clarify how it applies the quarantine principles? Could Korea 
explain why is it still carrying out a one by one analysis of each EU M S while the same food safety 
rules apply across  the whole territory of the EU?  
 
ANSWER : 
15. When a request for import permit of animal or livestock products is submitted, MAFRA 
undertakes Import Risk Analysis (IRA) and confirms the product 's safety from in fectious animal 
disease before granting an import permit.  
16. Since spread of plant pests differs among countries, PRA sho uld be carried out in a 
science -based and reasonable manner by taking into account different characteristics of each 
nationwith feasib le risk management measures.  
 
EU question No 17:  Could Korea clarify when is it planning to allow the imports of beef from the 
EU, pursuant to the principle of non -discrimination a nd the OIE defined risk status?  
 
ANSWER : 
We received requests for import per mit of beef from many countries including some of EU member 
states. Currently risk analysis is being implemented on beef from 4 EU countries, which have 
requested import permit prior to other EU members.  
 
The EU is aware that Korea conducts an import risk analysis for the individual requests received.  
 
EU questions No 18 -19: How does Korea justify the delay for EU MS applications where the first 
Member State application dates back to December 2006? How can Korea justify that there are 
applications received  from Member States in 2012 and 2013 which Korea ha s not even started to 
process?  
 
ANSWER : 
We received requests for import permit of beef from many countries including some of EU member 
states. Currently risk analysis is being implemented on beef from 4 EU  countries, which have 
requested import permit prior to other EU members. Risk analysis procedure is often delayed 
because mutual cooperation is necessary for reviewing of documents, investigation and local 
inspection.  
 
The report indicates that cheese imp orts must meet Korea's pasteurization requirements stipulated 
in the footnote 121.  
 
EU question No 20 : Could Korea clarify the pasteurisation conditions on dairy products which are 
established under two different Minist ries? 
 
ANSWER : 
MAFRA requires sterili zation as below for dairy products, which corresponds OIE standards.  
- Non FMD -free states: UHT, HTST (twice)  
- FMD-free states: sterilization (HT, HTST, LTLT), thermization (for cheese only, matured after 
heat treatment at 57 -68℃ for 15 seconds). Raw milk  for cheese and dairy products matured for 
more than 60 day at temperature of 2 ℃ or higher may be exempted.  WT/TPR/M/346/Add.1  
 
- 66 - 
 
  Processing Stadnards and Ingredient Specifications for Livestock Products stipulates the 
pasteurization standard for dairy product. According to the  standards, excluding special cases, the 
pasteurization or sterilization process of processed milk produc ts shall be performed under 
low-temperature long -term pasteurization (63 –65°C, 30min), high -temperature short -term 
pasteurization (72 –75°C, 15 –20 sec),  ultrahigh temperature sterilization (130 –150°C, 0.5 –5 sec), 
or by a method that has similar or better effectiveness  
 
 
Paragraph 3.103, page 77  
 
The report indicates that STC concerning Korea's import restrictions due to African swine fever has 
been first raised in the WTO SPS Committee on 15 July 2015 by the EU.  
EU question No 21:  The EU remains concerned that Korea does not apply regionalisation for 
African swine fever and Avian Influenza. How will Korea effectively and correctly apply 
regionalisation for  importing countries of animal products so that trade can take place under the 
rules set down by the OIE and the WTO SPS Agreement?   
 
ANSWER :  
IRA was carried out to determine regionalization of ASF, but is currently suspended due to the 
changes in ASF ou tbreak patterns.  
As for AI regionalization, upon the request of the exporting party for import permit, IRA is 
implemented for applying AI regionalization after the country 's HPAI -free status is confirmed.  
Furthermore, the report indicates the number of the  SPS notifications submitted by Korea during 
the review period.  
 
EU questions No 22 -23: Considering that Korea has offered only a normal 60 -day commenting 
period for SPS notifications which exceed even 700 pages (and in some cases less than 60 days) 
and a re only in Korean, could Korea explain how it can ensure its transparency obligations for 
notifications? When will Korea provide the draft legislation in other languages than Korean (at least 
one of the WTO official languages)?   
 
ANSWER :  
To the extent th at the given environment allows, Korea will exert all its efforts to translate draft 
proposals in Korean into a WTO official language and provide them to member countries to comply 
with transparency obligation.  
 
 
3.2.9.3 Labelling, page 77  
 
Korea has recen tly notified to the WTO a draft text amending health messages mandatory for 
alcoholic beverages (G/TBT/N/KOR/664). In the EU's view, it is essential to have sufficient time to 
facilitate compliance for business and, in this respect, we consider that Korea should allow at least 
18 months to allow the traders to adjust to the new requirements.  
 
EU questions No 24 -25: Could Korea confirm that the amended regulation took effect from 3 
September 2016 with the 6 -month transitional period for imported goods? Coul d Korea clarify 
whether it intends to grant a minimum period of at least 18 months allowing companies to adjust 
to the new labelling procedures?  
 
ANSWER : 
1) Effective September 03, 2016, the amended regulation* applies to all beverages sold in Korean 
marke t, regardless of the country of manufacture . Concerning the transition period for 
products with old health messages, six (6) months has been granted for manufacturing and 
one (1) year for sale.   
*As the proposed partial amendments to the National Health Pr omotion Act were passed at the 
Korea 's National Assembly on February 4, 2016 and promulgated on March 2, 2016, the amended 
regulation with regard to health messages on alcoholic beverages took effect September 3, 2016.  
2) Pursuant to Article 4 of the Enfor cement Regulations of the National Health Promotion Act, the 
Ministry of Health and Welfare (MOHW) has granted the transition period for up to one (1) year to 
help the industry adjust to new labelling requirements and sell out of products in stock. The MOH W 
has no plans to extend the transition period for now.   
 WT/TPR/M/346/Add.1  
 
- 67 - 
 
  Article 4 of the Enforcement Regulations of the National Health Promotion Act  
(4) An alcoholic liquor that falls under one of the following subparagraphs may be sold , with old health 
messages bein g attached onto it,  for one (1) year  after the date notice or notification pursuant to 
paragraph (3) is made:  
1. An alcoholic liquor that has been fermented, manufactured or imported before notice or notification is made  
2. An alcoholic liquor that has b een manufactured or imported no later than six(6) months after notice or 
notification is made  
 
 
3.2.10 Government procurement  
Paragraph 3.118, page 87  
 
As stated in the report Korea has continued to use government procurement as an instrument of 
economic policy for promoting SMEs, companies in a disadvantageous position (firms owned by 
women and disabled people), regional development, and green purchasing. Although no 
substantial changes were made to the main government pr ocurement legislation, since 
14 January  2016, additional market opening commitments in the form of a reduction of threshold 
values and a slight expansion of entities' coverage have been undertaken as a result of the 
implementation of the revised WTO Agreement on Government Procurement (GPA ); nevertheless, 
the already small share of foreign supplies continued to  fall during the review period.  
 
EU question No 26:  With the above results in mind regarding the level of foreign participation in 
the procurement by the Korean Government and the lev el of foreign supplies resulting from 
successful bids, could Korea explain why the results in terms of foreign procurement are more 
favourable to domestic companies?  
 
ANSWER : 
According to principle of National Treatment and Non -discrimination as specified in WTO GPA, 
international bidders have an equal opportunity of participating in public biddings in Korea, if 
applicable. International bidders can participate in public biddings by submitting documents via 
post or online. However, in case where internation al bidders do not have Korean corporate body or 
agency, Korean bidders seem to have an upper hand over them in bidding . 
 
 
3.4.2 Financial assistance  
3.4.2.2. Other subsidies (linked to 3.3.3 Export subsidies)  
 
The EU notes that " Korea uses export subsidies  for certain farm products under the provisions of 
Article 9.4 of the WTO Agreement on Agriculture for developing countries "; and "during the period 
under review, sector -specific support measures benefited shipbuilding, automotive, 
pharmaceutical, and stee l-industry activities. "  
 
EU question No 27:  As regards subsidies and other support measures for some specific industries 
and/or sectors, the EU would like to know whether Korea has a single window for compiling and 
managing such measures in a systematic m anner. If this is not available as yet, it would be 
interesting to know whether Korea has any plans to introduce it in the future.  
 
 
3.4.2.2. Other subsidies and 4.5.3. Shipbuilding  
Paragraph 3.162, page 92  
 
According to the report, during the period und er review, sector -specific support measures 
benefited, among others, also the shipbuilding sector.  
 
EU question No 28:  Could Korea please give an overview of the total amount and the objective of 
public financial support granted to the shipping/shipbuildi ng companies since its last TPR?  
 
ANSWER : 
The Korean government has not provided public financial support to any industry , including 
shipbuilding , or individual shipbuilder . However, state -owned financial institutions  such as KDB or 
KEXIM as a large shareh older of some of the shipbuilders or shipyards  have made a n independent  
decision on whether  to provide support  to those companies.  WT/TPR/M/346/Add.1  
 
- 68 - 
 
  EU question No 29:  Could Korea clarify whether the  Shipping Fund of US$ 1.2 bn, announced in the 
past, has been put in place? In this case, how is it operating and who  can and has benefited from 
it? 
 
ANSWER : 
According to Korean Government 's understanding, participating institutions to the Shipping Fund 
have finalized necessary preparations so that the Fund may be utilized on an a s-needed basis 
based on discussion among the partakers. We cannot pinpoint specific beneficiaries of the Fund 
since the Fund will be operated under commercial decisions.  
 
 
3.4.4 State -owned enterprises and privatization  
Paragraphs 3.169 -3.171, pages 94 -95 
Privatisation process  
 
EU question No 30:  The EU would appreciate if Korea could elaborate on the country 's mid - and 
long-term plans, if any, to further accelerate privatization efforts and the sectors to be affected.  
 
ANSWER :  
Instead of privatization, th e Korean government today focuses on a productivity boost for public 
institutions by enhancing their efficiency and concentration on key functions.  
1) The government is driving up practical productivity through annual functional readjustments 
for public insti tutions. Those adjustments include greater concentration on key functions by 
streamlining overlapping functions and reducing non -essential tasks. It also aims to 
invigorate the private sector by encouraging its participation in the public sector as well as  
slashing public institutions ' functions that overlap with those of the private sector. Lastly, 
the plan pursues greater management efficiency through improvement in financial structure 
and transparency.  
2) Wage peak system is now fully introduced to encourag e merit -based corporate culture in 
public institutions. Not just managers but lower -ranking employees are now subject to merit 
pay system. This shift is expected to enhance productivity and efficiency of those institutions 
as well as the quality of public services they provide.  
 
Privatization is a matter to be decided after collecting and reflecting the views of the public, the 
National Assembly and market. To date, the government does not have a concrete plan on 
privatization.  
 
 
3.4.5 Competition and consu mer policy  
3.4.5.1 Competition policy  
Paragraph 3.174, page 97  
 
The EU understands from the WTO Secretariat Report that liner shipping conferences are 
exempted from Korean Competition law.  
 
EU question No 31:  Could you please explain why liner shipping c onferences allowing for price 
fixing are (still) exempted from Korean Competition law, considering their pot ential 
anti-competitive nature?  
 
ANSWER : 
For the smooth operation of transports, contracts on the conditions of fares and transport or joint 
actions  (convention) are accepted, however, price -fixing is not allowed. In case of violation, we 
impose corrective action or penalty. Furthermore, constant monitoring of unfair practices regarding 
the market price is done through consultations with shippers asso ciation, mandatory publication of 
freight fares in order to prevent price fixing.  
 
EU question No 32:  Are there any policy initiatives in Korea to bring its policy on this matter closer 
to recent developments in this area worldwide (see also the OECD Compe tition Committee 
Discussion on this matter: http://www.oecd.org/daf/competition/competition -issues -in-liner-
shipping.htm )? 
 WT/TPR/M/346/Add.1  
 
- 69 - 
 
  ANSWER : 
Due to the nature of the shipping industry, alliance is seen inevitable. However, it is separately 
regulated under Shipping Act since there are possible negative influence in concern when it is 
regulated under the general Competition Law, therefore, there is no policy initiative to amend the 
policy so far.  
 
 
Paragraph 3.175, page 98  
 
The EU understands that under Korean competi tion law a company is presumed to possess a 
dominant position if its market share is at least 50%.  
EU question No 33 : Could you please explain if under Korean competition law the presumption of 
dominance at market shares of at least 50% is rebutt able or wh ether it is absolute?  
 
ANSWER : 
Whether an enterpriser is a dominant firm shall be determined by comprehensively considering 
various factors other than market share such as relative size of the competitors, existence of an 
entry barrier and extent of it, an d existence of similar goods and neighbouring market. Therefore, 
the presumption of market dominance can be reversed  
 
 
3.4.5 Competition and consumer policy  
3.4.5.1 Competition policy  
Paragraph 3.179, page 99  
 
According to the report, m onopoly power seems  unchanged and market concentration relatively 
high.  
EU question No 34 : The EU would be interested to know whether Korea envisages any measures or 
changes to legislation in the making or which the government is considering, as part of efforts to 
diminish the market concentration ratio of its top three l eading manufacturing companies.  
 
ANSWER : 
The KFTC is continuously detecting and improving anti -competitive regulations such as entry 
barrier regulations to enhance monopolistic market structure, and also mak ing efforts to promote 
market competition through blocking anti -competitive M&As and regulating cartels.  
 
 
3.4.6 Intellectual property rights  
3.4.6.1 Industrial property  
 
Effective 15 March 2015, Korea implemented a new system to resolve patent disputes p rior to 
linking generic drug approval with patent enforcement. As part of this system, Korea established a 
"Green List ", maintained by the Korean Ministry of Food and Drug Safety (MFDS), in which 
innovative biopharmaceutical companies can list patents rela ting to their original pharmaceutical 
products. Any prospective generics company must notify the patentee if it intends to challenge its 
listed patent(s) in connection with seeking generic approval. The practical implementation of the 
systems has raised a number of concerns. The EU would like to receive the following clarifications:  
 
EU question No 35:  MFDS is currently afforded discretion to rewrite or amend listed patent claims 
resulting in inconsistencies with the patent claims granted by the Korean Inte llectual Property 
Office. How does Korea exp lain the rationale behind this?  
 
ANSWER : 
The "patent claims ", which are granted by the Korean Intellectual Property Office and not rewrote 
or amended, are listed on the pharmaceutical patent list.  
 
EU questions N o 36-37: Under this system, a patentee in Korea may seek a stay of sales against a 
generics drug for up to nine months, by filing a patent infringement action. Could Korea please 
provide data on the average time it takes Korean courts to resolve a patent d ispute? In addition, 
could Korea please confirm whether pending the resolution of such patent disputes, injunctive 
relief will remain available through Korea 's courts?  
 WT/TPR/M/346/Add.1  
 
- 70 - 
 
  ANSWER :  
There are various processes to resolve patent disputes in Korea. The Intellect ual Property Trial and 
Appeal Board, an administrative tribunal under the Korean Intellectual Property office, handles the 
administrative appeals. The civil courts and the Patent Court of Korea deal with legal proceedings.  
 
It is difficult to state how lo ng a patent dispute will last since it can vary depending on various 
factors such as, which organization is handling the case or how complicated/serious the dispute is.  
Preliminary and permanent injunctions are available for patent disputes under the Kore an patent 
litigation system. A preliminary injunction, which is a temporary court order made to prevent 
further injury to a patent holder, can be issued before rendering a final and conclusive judgment. 
In the case of a preliminary injunction, the cessatio n of the infringement shall be demanded in 
accordance with Article 304 (Provisional Disposition to Fix Temporary Position) of the Civil 
Execution Act.  
 
Patent owners can file not only a patent infringement action but also a  patent trial in order to 
request  for stay of sales. If patent owners wish to shorten the trial period, they can request 
preferential trial examination at the patent trial.  
 
Effective 29 May 2015, Korea 's Ministry of Health and Welfare (MOHW) published Notification 
No.2015 -327 (2015.5.29)  which provides that locally developed medicines that (1) are produced 
by "innovative pharmaceutical companies " as designated by Korea 's Ministry of Health and Welfare 
(MOHW); (2) are first approved in Korea; and (3) are in at least Phase III clinical tria ls in multiple 
other countries, can negotiate confidential rebates with the MOHW instead of being subject to 
public price volume agreements.  
 
EU question No 38 : Could Korea please clarify what are the criteria for being designated as an 
"innovative p harma ceutical company" by MOHW?  
 
ANSWER :  
The purpose of Price -Volume Agreement (PVA) -linked pay -back system is to facilitate the 
development of global innovative new drugs by creating a climate that would encourage research 
and development activities in Korea and ultimately contribute to improving the Korean people 's 
health.  
○ Any pharmaceutical company, whether domestic or international, may be designated as an 
innovative pharmaceutical company if they meet its requirements, such as R&D investment in 
Korea, and accordingly benefit from the pay -back system. As of September, 20 16, there are 
two international pharmaceutical companies in Korea designated as an innovative pharmaceutical 
company: Sanofi -Aventis Korea (France) and Korea Otsuka Pharmaceutical (Japan).  
 
○ To designate a pharmaceutical company as an Innovative Pharmaceu tical Enterprise, the 
following factors must be considered (as specified in Article 12 of the Enforcement Decree of the 
Special Act on Fostering and Support of Pharmaceutical Industry)  
 
1. Excellence in human·material resources, such as research personnel,  record of investment in research and 
development, and manufacturing facilities;  
 
2. Excellence in research and development activities for new drugs, such as the planning of research and 
development, conduct of clinical·non -clinical trials associated with  new drug development, and mid -to long -
term investment plans for research and development;  
 
3. Excellence in technological·economic achievements and the extent of contribution to public health, such as 
pharmaceutical patent and out -licensing, capacity to e xpand into foreign markets, and development·supply 
of quality pharmaceuticals;  
 
4. Corporate social responsibility and ethics, such as observance of distribution systems and selling rules on 
pharmaceuticals, etc.;  
 
5. Whether the pharmaceutical company is  subject to external audits pursuant to Article 2 of the 「Act on 
External Audit of Stock Companies 」; and  
 
6. Other matters that the Minister for Health and Welfare considers to be necessary as standards for 
certification of an innovative pharmaceutical ent erprise, and then notifies  
 WT/TPR/M/346/Add.1  
 
- 71 - 
 
  Reference  Legal Basis on Certification of Innovative Pharmaceutical Enterprises  
< SPECIAL ACT ON FOSTERING AND SUPPORT OF PHARMACEUTICAL INDUSTRY >  
Article 7 (Certification of Innovative Pharmaceutical Enterprises) (1) A phar maceutical enterprise that intends 
to be certified as an innovative pharmaceutical enterprise shall file an application with the Minister for Health 
and Welfare for the certification of an innovative pharmaceutical enterprise, as prescribed by Ordinance of  the 
Ministry of Health and Welfare.  
 
(2) In receipt of an application under Article 7 (1), the Minister for Health and Welfare may certify the applicant 
as an innovative pharmaceutical enterprise through deliberation by the Committee. In such cases, stan dards 
necessary for the certification shall be prescribed by Presidential Decree.  
 
(3) Matters necessary for methods and procedures for certification, and the public notification of such 
certification shall be prescribed by Ordinance of the Ministry of He alth and Welfare.  
 
<ENFORCEMENT DECREE OF SPECIAL ACT ON FOSTERING AND SUPPORT OF PHARMACEUTICAL 
INDUSTRY>  
Article 2 (the Scale of Annual Research and Development Expenses, etc.)  
(1) The "amount specified by Presidential Decree" in the Articles 2. 3 (a) and (b) of the "Special Act on 
Fostering and Support of Pharmaceutical Industry "(hereinafter referred to as "Act") means annual research and 
development expenses on pharmaceuticals defined in each of the following subparagraphs:  
 
1. For a pharmaceutical e nterprise whose annual sales of pharmaceuticals is less than \100 billion, the amount 
is \5 billion per year or 7/100 of its annual sales of pharmaceuticals;  
 
2. For a pharmaceutical enterprise whose annual sales of pharmaceuticals is \100 billion or more , the amount 
is 5/100 of its annual sales of pharmaceuticals;  
 
3. For a pharmaceutical enterprise whose good manufacturing practices (GMP) standards are considered to 
meet their pharmaceutical GMP regulations by either the U.S. or EU governments or public agencies, the 
amount is 3/100 of its annual sales of pharmaceuticals;  
 
(2) The annual research and development expenses on pharmaceuticals and the annual sales of 
pharmaceuticals in paragraph (1) shall be calculated in accordance with each of the followin g subparagraphs:  
 
1. Those annual research and development expenses and annual sales shall be about pharmaceuticals specified 
in subparagraph 4 of Article 2 of the 「Pharmaceutical Affairs Act 」; and  
 
2. Those annual research and development expenses and annual sales shall be th e annual average R&D 
expenses on pharmaceuticals and the annual average sales of pharmaceuticals of the three (3) consecutive 
business years immediately before the business year of the date when a pharmaceutical enterprise files an 
application for the cert ification of an innovative pharmaceutical enterprise under Article 7 (1) of the Act (If 
the consecutive business years are less than three (3) years, however, those annual R&D expenses and 
annual sales mean the amount converted into the annual average of t he R&D expenses and that into the 
sales, respectively, until the business year immediately before the year of application, after the beginning of 
business.)  
 
(3) The R&D expenses on pharmaceuticals and the sales of pharmaceuticals pursuant to paragraphs ( 1) and 
(2) shall be calculated in line with Article 13 (Standards for Accounting) of the "Act on External Audit of Stock 
Companies ", but detailed elements included in the R&D expenses shall be determined and notified by the 
Minister for Health and Welfare.  
 
Article 12 (Standards for Certification of Innovative Pharmaceutical Enterprises) The standards for Certification 
pursuant to Article 7 (2) of the Act are the following subparagraphs:  
 
1. Excellence in human·material resources, such as research personne l, record of investment in research and 
development, and manufacturing facilities;  
 
2. Excellence in research and development activities for new drugs, such as the planning of research and 
development, conduct of clinical·non -clinical trials associated wi th new drug development, and mid -to long -
term investment plans for research and development;  
 
3.  Excellence in technological·economic achievements and the extent of contribution to public health, such as 
pharmaceutical patent and out -licensing, capacity t o expand into foreign markets, and development·supply 
of quality pharmaceuticals;  
4. Corporate social responsibility and ethics, such as observance of distribution systems and selling rules on 
pharmaceuticals, etc.;  
5. Determination as to whether a pharma ceutical company is subject to external audit pursuant to Article 2 of WT/TPR/M/346/Add.1  
 
- 72 - 
 
  the "Act on External Audit of Stock Companies "; and 
 
6. Other matters that the Minister for Health and Welfare considers to be necessary as standards for 
certification of an innovative pharmaceutical  enterprise, and then notifies  
Paragraph 3.203, page 105 – Trademarks  
 
The report explains that "in 2013, the examination standards were revised to allow examiners to 
investigate, amend, or reject trademarks that are highly likely to distu rb market order by 
mimicking famous trademarks, or that are filed to acquire rights to valuable pre -existing 
trademarks ". 
 
EU question No 39 : Could Korea list the criteria which examiners have to take into account when 
deciding on such cases? It would furt her be appreciated to receive an indication of leading case 
law in this regard. (note: these questions cover both trademarks and designs, in view of the same 
approach applied to designs, as explained in point 3.210)  
 
ANSWER : 
According to Trademark Act Arti cle 34. 1, 14: Any trademark likely to cause confusion with goods 
or business of another person remarkably recognized by consumers or to dilute their 
distinctiveness or reputation.  
 
 
Paragraph 3.206, page 106  
 
The report states that "the trademark legislat ion prevents registration of trademarks consisting of 
a "conspicuous geographical name"; it allows them to be registered as geographical collective 
marks. The owner of a GI collective mark has the right to use it exclusively and prevent others 
from using i dentical or similar signs for identical goods, where it might result in confusion".  
 
EU question No 40 : Could Korea explain how a "trademark consisting o f conspicuous geographical 
name"  should be understood and, if possible, give an example of such trad emark? 
 
ANSWER : According to the Korean trademark examination guideline, conspicuous geographical 
name means name of a state, name of a domestic metropolitan city, name of a domestic province, 
name of a foreign well -known capital, name of a very well -known hi storic place and name of a 
very well -known tourist site, etc. Some examples of conspicuous geographical names include 
"Fifth Avenue ", "GEORGIA ", "MANHATTAN " and "INNSBRUCK ", etc. 
 
Considering that in principle GI and trademark would be different types of I P rights, Korea is also 
invited to clarify what is meant by a term "GI collective mark" .  
 
EU question No 41:  Could Korea clarify who is entitled to register such a "GI collective mark"  and 
whether any GI producer installed in the relevant geographical are a is allowed to use su ch a 
"GI collective trademark"?  
 
ANSWER : 
"GI collective mark" means a mark intended to be used directly by a corporation incorporated by 
person(s) who produce, manufacture, or process the goods on which a geographical indication 
may b e used, or is intended to be used by its members.  
And corporations only comprised of person(s) who produce, manufacture or process the goods on 
which such geographical indication may be used is entitled to register a GI collective mark.  
 
 
Paragraph 3.213, page 108  
 
The report describes that the Trade Secret Protection Centre provides useful information for 
protecting corporate trade secrets, and that a total of 93,256 cases had been received by the end 
of December 2015 . 
 
EU question No 42 : Could Korea furt her explain how the present rules guarantee the maintenance 
of confidentiality in trade secrets proceedings (as regards participants in proceedi ngs, documents, 
and decisions)?  WT/TPR/M/346/Add.1  
 
- 73 - 
 
   
ANSWER : 
If all the requirements are met, a confidentiality order, which demands  that confidentiality of the 
secrets be maintained, may be granted against defendants, and any relevant parties (in 
accordance with the maintenance of secrecy provision, Article 14 -4 section 1 of the Unfair 
Competition Prevention and Trade Secret Protectio n Act.)  
 
Unless just cause exists, any party violating a confidential ity order, as per Article 14 -4 Section 1, 
may be subject to imprisonment of not more than 5 years,  and/or a fine not more than 
₩50 million (in accordance with Article 18 -4, Violation of a Confidentiality Order).  
 
 
3.4.6.2 Copyright and related rights  
Paragraph 3.218, page 109  
 
The report explains the approach taken by enforcement authorities against online counterfeiting 
and pirac y. 
 
EU question No 43 : Could Korea indicate whether it also applies a policy which supports and/or 
facilitates business -to-business solutions to fight online infringements, such as Memoranda of 
Understanding between platfo rm providers and right holders?  
 
ANSWER : 
Korea would like to point out that the Paragraph and the Page mentioned in this question do not 
match the content of the question.  
Korea does not apply any policy to support or facilitate any MOUs between platform providers and 
right holders becaus e the platform providers and right holders distribute copyrighted materials 
online through arrangements between private persons.  
 
 
Paragraph 3.227, page 112 and page 49  
 
The report explains that "Korea's intellectual property rights legislation has been s trengthened with 
wide-ranging amendments "; in particular, the report lists (inter alia) a number of changes under 
the 2016 amendment to the Copyright Act, effective as of 23 September 2016 . At the time of 
writing this (15 September 2016), it appears that K orea is in the process of drafting an amended 
Presidential Decree (after adoption in Feb 2016 of an amended Copyright Act in the National 
Assembly) that might introduce some but only limited changes to the issue of the exemptions.  
 
EU question No 44 : The r eport does not refer to the issue of public performance rights where an 
overbroad exception in the existing law, notably for businesses whose premises are smaller than 
3,000 square meters. Is Korea conside ring any changes on exemptions?  
 
ANSWER : 
Korea plan s to amend Copyright Act and the pertaining Presidential Decree in order to improve the 
protection of public performance rights with regard to music.  
 
EU question No 45 : More generally, could Korea describe its policy in terms of drafting exemptions 
from the obligations to pay royalties for the public performance of music in order to be in full 
compliance with its WTO obligations and be fully respecting the intellectual property rights owned 
by aut hors, producers and performers?  
 
ANSWER : 
Korea will draft a  Presidential Decree amending the current version. To decide the scope of the 
extension of the public performance right, Korea will conduct a research on actual status of public 
performance of music in Korea jointly with right -holder organizations such as collecting societies.  
 WT/TPR/M/346/Add.1  
 
- 74 - 
 
  4 TRADE POLICIES BY SECTOR  
4.2 Agriculture and livestock  
4.2.2.1 Border measures  
4.2.2.1.1 Tariffs and tariff quotas  
Paragraph 4.19, page 116  
 
The report refers that the quotas are valid for the whole calendar year, and import permi ts are 
required and have validity either of 30 or 90 days.  
 
EU question No 46 : Could Korea explain why import permits only have a short validi ty period 
(30 days or 90 days)?  
 
ANSWER : 
The present validity period for import permit of 30 -90 days is long enou gh for importers to carry 
out import process. The period was established in order to improve fill rate when an importer fails 
to implement import, by reclaiming tariff quotas and transferring them to a third importer  
 
 
4.2.2.1.3 Export restrictions, and ex port subsidy programmes  
Paragraph 4.26, page 117  
 
The last notification from Korea on its export subsidy programme dates 2010 and refers to the 
period 2005 -08. 
 
EU question No 47 : Could Korea indicate if it has applied agriculture export subsidies after 20 08 
and if yes, when it intends to abolish them, in line with the Bali and Nairobi mandate?  
 
ANSWER : 
Korea has provided export subsidies based on Article 9.4 of AoA since 2008. According to the 
timeframe set at the Nairobi Ministerial Decision, Korea will e liminate the export subsidies by 
2023.  
 
 
4.5.2 Automotive  
Paragraph 4.108, page 132  
According to the report, the Government has implemented some tax and other incentives for the 
automobile sector during the review period, to boost consumption.  
 
EU questio n No 48 : Could Korea provide any further details on the individual consumption tax 
which applies to cars? In particular, the EU would like to know whether Korea is planning to 
introduce further exemptions or reductions, as a means to boost domestic consump tion in the 
second half of this year.  
 
ANSWER : 
The individual consumption tax, which is a special excise tax, applies to cars: 5% on cars, with a 
temporary tax cut to 3.5% from 27 August 2015 to end -June 2016, to boost consumer 
spendingExempted on mini car s (less than 1,000 cc);Red uced on hybrid cars (maximum 
₩1 million, until 2018), and electric cars (maximum ₩2 million, until 2017).  
 
 
4.5.3 Shipbuilding  
Paragraph 4.116, page 133  
 
The EU understands that the Korean Government is currently reviewing its policy related to the 
restruc turing of the shipbuilding sector.  
 
EU question No 49:  Could Korea please explain the main characteristics of the Korean policy 
regarding the restructuring of the shipbuilding sector and indicate how the Korean Government 
ensures that no subsidies will be granted to ailing enterprises that do not have a credible 
restructuring plan based on realistic assumptions allowing the recipient to  return to long term 
viability?  
 WT/TPR/M/346/Add.1  
 
- 75 - 
 
  ANSWER : 
The Korean government encourages industries to implement restructuring voluntarily  under the 
lead of creditors of each companies, and do not provide any subsidies to ailing companies.  
 
EU question No 50:  Could Korea please explain how the announced restructuring measures will 
tackle the fundamental problems associated with overcapacity in the shipbuilding market, in 
particular by reducing capacity on the product segments c oncerned (i.e. types of ships)?  
 
ANSWER : 
Each shipbuilding company is consulting with its creditors based on market principles to voluntarily 
implement restructuring th rough  various  measures .  
 
 
4.6.2.2 Insurance  
4.6.2.2.2 Regulatory framework  
Paragraph 4.153, page 141  
 
The section related to insurance services in the Commercial Act was amended in 2014, covering, 
inter alia :  
a. A requirement for insurers to explain ins urance contract provisions to policyholders;  
b. Extension of the cooling -off period; and  
c. Introduction of new insurance policies such as guarantee insurance and disease insurance .  
 
EU question No 51:  Could Korea explain what exactly was reformed in th e Commercial Act's 
insurance section and, in particular, explain what are the rules regarding "Introduction of new 
insurance policies such as guarantee ins urance and disease insurance."?  
 
ANSWER : 
The Commercial Act 's insurance section was revised on March 11, 2014  and went into force on 
12 March  2015. The amendments include: i ) duties for insurers to explain insurance policy 
provisions to policyholders have been strengthened and the revocation period for the policyholders 
has been extended when such violati on occurs , ii) actions and rights that can be carried out by 
insurance agencies and planners in relation to insurance contracts have been provided, iii) the 
statute of limitations on insurance premiums and claims has been extended and iv) new provisions 
have been introduced for guarantee insurance and disease insurance.  
In the case of guarantee insurance, established provisions are; provisions of guarantee insurer 's 
liabilities, provisions to exclude provisions of the Commercial Act 's insurance section whi ch is not 
applicable due to the character of the guarantee insurance, and provisions to apply Civil Act within 
the scope that does not go against its character.  
Regarding disease insurance, legal relations as to disease insurance such as the liabilities o f 
disease insurers and applicable provisions have been newly added to the Commercial Act.  
 
 
WT/TPR/G/346 – Government's Report  
 
2.3 Foreign Direct Investment  
Inbound FDI rises, outbound FDI remains steady  
 
Reference is done to the action plan established  by the government to improve the foreign 
investment environment.  
 
EU question No 52 : Could Korea further elaborate on the action plan at issue, particularly whether 
it pertains to or entails any domestic regulatory reform measures conducive to reducing 
restrictions to foreign direct investments, and also on the timeframe, if any, for its 
implementation?  
 
ANSWER : 
The ROK annually reviews the restricted business areas, including the scope and definition of 
restricted areas, aligning with domestic laws of in dividual sectors and FTAs. For example, the 
Aviation Act is going to be amended to rescind a foreign investment restriction on the aircraft 
maintenance, repair and overhaul field. It may enter into force in 2017.  
 WT/TPR/M/346/Add.1  
 
- 76 - 
 
  3.3.4 Services  
 
The report states that Ko rea is preparing a new framework legislation covering the service sector. 
The EU welcomes the planned review of laws and regulations and hope that it will abolish the 
existing barriers to trade in the Korean service sector.  
 
EU question No 53 : Could Korea  give some examples of concrete measures taken or to be taken 
for fostering competition and promoting further liberalization in the services sector, in particular in 
the distribution sector?  
 
ANSWER : 
Amid intensifying international competition, the Korean government launched a strategy to foster 
the service sector as a means to draw dynamism in the Korean economy and create jobs.  
Priorities of this strategy include:  
1) Promoting a convergence between service and manufacturing sectors  
Today, government polic ies designed to support businesses often focus on manufacturers, 
effectively discriminating service providers. Addressing this problem is expected to promote 
industrial convergence and help generate high added value in the manufacturing sector through a 
synergy with the service sector.  
2) Infrastructural innovation for the service sector  
The government will increase investment in service -related R&D, while encouraging the private 
sector to do the same. Plus, more support will be offered to service -related t raining programs and 
overseas market exploration.  
3) Focusing on seven promising industries*  
* Healthcare, tourism, cultural contents, education, finance, software and logistics  
For all 7 promising industries, development plans will be devised and tailored  in consideration of 
various factors including global trends and technological progress.  
 
EU question No 54 : Could Korea explain why the sector of the provision of "legal services" has 
remained outside of the scope of this enactment and plan?  
 
Could also K orea detail its reasons for:  
 
a. limiting foreign equity in joint ventures to 49 %, which prevents foreign entities 
from controlling their investments;  
 
ANSWER : 
Limiting foreign equity in joint venture law firms  
The reasons for limiting foreign equity in a jo int venture law firm are as follows: i) to prevent it 
from becoming a de facto  subsidiary of the foreign law firm and ii) to ensure the Korean law firm 
to play a substantial role in the joint venture at an early stage of the third -phase liberalization of 
the legal market. According to the schedules of commitments (or reservations) of Korea -US and 
Korea -EU FTAs, Korea can exercise policy discretion in imposing restrictions on the proportion of 
voting shares or equity interests of the joint venture law firm.  
 
b. stipulating that foreign firms may form joint ventures only with Korean entities in 
existence for three or more years, which in some cases could impede the 
implementation of free trade agreements for three years; and  
 
ANSWER : 
Three -year practice requirem ent for forming joint ventures  
The three -year practice requirement was introduced to prevent a foreign law firm from establishing 
a nominally "joint venture " with a Korean counterpart but in fact its subsidiary, and to encourage 
foreign and Korean law firm s specializing in certain areas of law to create joint ventures on an 
equal footing.  
 
c. limiting the scope of practice, which significantly disadvantages forei gn- Korean 
joint venture firms?  
 
ANSWER : 
Limiting the scope of practice of joint venture law firms  WT/TPR/M/346/Add.1  
 
- 77 - 
 
  The Korean government limits the scope of practice of joint venture law firms with the aim to 
achieve the third -phase liberalization of the legal market. The ultimate goal of Korea 's legal 
industry is to gain its competitive edge in the areas of laws wher e foreign law firms have the edge. 
Accordingly, the amended Foreign Legal Consultant Act allows joint venture law firms to practice in 
those laws while precludes, inter alia,  legal representation for judicial or statutory procedures in 
courts and  activitie s in legal cases concerning family relations (which are generally domestic). Also 
excluded from the scope of practice of joint venture law firms include areas that go beyond the 
scope of liberalization in the FTAs, such as practice in intellectual property  rights and activities 
concerning labour affairs consulting.   
 
 
4.1.2 Plurilateral Trade Agreements  
 
The EU welcomes Korea 's participation in the ITA agreement and notes that it is currently 
undertaking the necessary WTO and domestic procedures for its im plementation.  
 
EU question No 55 : The EU would like to have more clarity on the nature and the expected 
timeline of Korean domestic procedures to be still undertaken.   
 
ANSWER : 
For the implementation of the ITA Expansion, domestic procedures are currently  underway in 
Korea following the circulation and certification of our WTO sche dule in late August and on 
14 September , respectively, in line with the Procedures for Modification and Rectification of 
Schedules of Tariff Concessions. Although uncertainty sti ll remains with regard to how the Korean 
National Assembly 's ratification process would be carried out, we hope that the agreement could 
enter into force within this year at the earliest.   WT/TPR/M/346/Add.1  
 
- 78 - 
 
  QUESTIONS FROM INDIA  
 
 
Questions on Secretariat Report (WT/TPR/S/ 346)  
 
Para 3.130, Page 85  
 
Question  1 
Whether the Korean EXIM bank incurred any losses in the last three years, thus occasioning the 
recapitalization of the institution by such large amounts during 2014 & 2015? Whether any such 
recapitalization is similarl y proposed during 2016?  
 
ANSWER : Korea Eximbank  has consistently generated positive net income since its inception in 
1976. The net income of the bank for FY2013, FY 2014 and FY2015 was ₩77 billion , ₩85 billion 
and ₩41 billion, respectively.  The Korean gove rnment made the capital injections because the 
bank's operations and assets have expanded significantly along with economic growth. The total 
outstanding of the bank has increased from ₩90.1 trillion at the end of 2013 to  ₩124.7 trillion at 
the end of 2015 . The government 's capital injection was also made in 2016.  
 
Question  2 
Whether the equity infusion/recapitalization could be construed as making good of the losses 
incurred by Korean Exim bank in the past? Whether this would not be an  infringement of the 
WTO Agreement on Subsidies and Countervailing Measures?   
 
ANSWER : Korea Eximbank  has consistently generated positive net income since its inception in 
1976. The capital injection was made because the bank 's operations and assets have expanded 
significantly  along with economic growth. The capital injection made by the government in an 
Export Credit Agency which provides financial service would no t be an infringement of the 
WTO ASCM.  
 
 
Para 3.132, Page 86  
 
Question  3  
Whether the K – SURE 's risks (on such non  marketable insurance covers) are underwritten by the 
Government of Korea through any special funds? Whether the pricing of such risks reflects actual 
default probabilities or is subsidised or subvented in any manner?  
 
ANSWER : K-sure operates the trade ins urance business based on the Trade Insurance Fund. 
Premium is charged to cover the risk of export credit business, basically according to the OECD 
Arrangement.  
 
Question 4  
What were the non -payments/ defaults on such non marketable insurance cover in the l ast three 
years?  
 
ANSWER : The claims paid in the last three years were respectively 690  (2013), 770  (2014), and 
510 (2015) in  ₩ billion.  
 
Question  5 
How were such losses accounted in the balance sheet of K –SURE?  
 
 
ANSWER : Claims paid is recorded as expenses in the Trade Insurance Fund.  
 
 
Para 3.132, Page 86  
 
Question  6 
Whether the OECD Guidelines permits export insurance cover w ith no down payment, and 
coverage of 100% of the contract value?  
 WT/TPR/M/346/Add.1  
 
- 79 - 
 
  ANSWER : 
K-sure requires purchasers of goods and services which are the subject of official support to make 
down payments of a minimum of 15% of the export contract value according to the OEC D 
Arrangement.  
 
 
Para 3.155, Page 91  
 
Question 7  
Whether the recapitalisation/ loss replenishment of the IBK and KDB is drawn from the national 
budget as grant or long term loan? What are the terms of the recapitalisation/loss replenishment?  
 
ANSWER : 
There  were several recapitalization of the IBK led by the government - none of loss replenishment 
took in place since IBK incorporated - and all had been drawn from the national budget, which is 
subject to approval from the National Assembly, in a form of capit al injection. It has been 
conducted in the same way as such investments of private sector, thus there had been no other 
special condition existed, including specific terms, in returns of investing money to the bank. The 
government just became to seize prop ortional powers in exercising voting right as much it holds 
shares of the bank.  
The government, meanwhile, has legal ground for raising capital for IBK based on local laws, such 
as "Act of the management of Public Institution ", "Industrial Bank of Korea A ct".  
Recapitalization of KDB takes the form of neither grant nor long -term loan but capital injection. 
This does not involve any terms of conditions, unlike loan agreements. KDB is 100% government 
owned bank. The bank 's capital increase is made with eithe r cash or in kind contribution. For cash 
contribution, Government incorporates budget allocation for KDB in its annual budget plan, which 
is then implemented after getting approval from the National Assembly.  
 
 
Para 3.157, Page 91  
 
Question 8  
Whether the s aid losses as above were made good in any manner by the Government of 
Korea/bank of Korea and if so the manner thereof?  
 
ANSWER : 
No measure was taken by the Government or the Bank of Korea for the loss incurred to KDB in 
2013 and 2015. Government 's loss re plenishment is made only when KDB 's reserve is not 
sufficient to cover its loss. Therefore, the said losses were replenished with KDB 's own reserve.  
To reiterate, BOK is not, by any means, a stakeholder of KDB 's losses.  
 
 
Para 4.113, Page 133  
 
Question 9  
Whether the said significant equity stakes held by the above institutions in major shipbuilding 
companies were an outcome of conversion of debt into equity or other such bad loan  
management measures? If so the terms thereof and the manner of treatment of t he said equity 
stakes in the books of account of the said institutions i.e. at cost, market, written down etc.  
 
ANSWER : 
KDB is a shareholder of DSME and STX, holding 49.7% and 48.1% of their shares respectively, as 
of September -end 2016.  
STX's share was ac quired after 3 rounds of debt to equity conversion which was determined based 
on commercial judgment under creditors -led debt restructurin g program. In accordance with 
K-IFRS, fair value of converted debt was set as ₩1 per share, while the gap between converted 
debt and face value of stock is booked as realized loss from acquisition of securities.  
KDB first acquired DSME 's share in December 2000 at the time when Daewoo Group was under 
workout program. Early in 2015, D SME incurred significant losses, leading to capital increase 
through third party allocation as an effort to normalize business and minimize creditor loss. Based 
on KDB 's participation in the process, KDB 's stake in DMSE increased to 49.7%. Since its increa se 
of DMSE shareholding, KDB has been classifying DSME shares as an item subject to consolidated WT/TPR/M/346/Add.1  
 
- 80 - 
 
  accounting, in accordance with K -IFRS standards.  
Such issue is not applicable to IBK, as it holds no shares of those companies  
 
 
Para 4.138, page 138  
 
Question  10 
Whether the aid above institutions are subject to the normal banking regulation of the bank of 
Korea with regard to banking sector prudential norms like Income Recognition, asset Classification, 
Provisioning, Risk Concentration etc.? Whether any specia l exemption or privileges are enjoyed by 
them?  
 
ANSWER : 
KDB is subject to the same rules and regulations applied to commercial banks, except for credit 
ceiling and liquidity coverage ratio (LCR).  
 
(credit ceiling) KDB 's credit ceiling is 5%p higher than th e ceiling applied to other banks. This is a 
temporary relief provided in consideration of exposure increase following consolidation with KoFC. 
Starting from 2020, KDB will be subject to the same credit ceiling. Despite such measure, KDB is 
currently keepin g credit extension within the credit ceiling applied to other commercial banks.  
 
(LCR) KDB will be subject to laxer LCR requirement starting from 2017. Laxer regulation is applied 
due to KDB 's stronger capacity for FX financing.  
 
IBK is exempted from LDR  regulation and IBK can issue its bonds up to 20 times of paid -in-capital 
and reserves.  
 
 
Para 1.1, 1.4 and 4.4  
 
Question 11  
Korea is a highly labour skilled economy; however, according to the Secretariat Report there has 
been a decline in labour producti vity in Republic of Korea since 2011. What are the reasons for 
such a trend?  
 
ANSWER :  
According to the OECD statistics, the increase rate of Korea 's labor productivity is somewhat 
slowed down but it is not decreasing.  
 
 
Questions from Country  Report (WT/ TPR/G/346)  
 
Para 3.8  
 
Question  12 
Under the three -year plan for economic innovation, Republic of Korea is undertaking structural 
reforms in the labour sector. What are these reforms and what has been the impact of such 
reforms on employment and unemploymen t levels in Korea and on overall economic activity?  
 
Para 3.1.1  
 
Question  13 
What has been the impact of Creative Economy initiative on quality job creation?   
 
ANSWER(12~13) :  
The Creative Economy Innovation Centers established in 17 different regions acro ss the nation 
have fostered 578 startups, supported 541 SMEs. The Republic of Korea is in the midst of the 
largest startup boom in history. Between 2012 and 2015, the number of startup clubs at 
universities increased by 233 percent, while the number of newly founded companies 
(93,000  companies, representing a 26.4 -% increase) and the volume  of venture investment 
(₩2.1 trillion, representing a 69.1 -% increase) recorded the highest values in the country 's 
history.  WT/TPR/M/346/Add.1  
 
- 81 - 
 
  Para 3.8  
 
Question  14 
The labour sector reforms while promoting ease of doing business are aimed at labour protection 
and better working conditions. How ha s the business community responded to these reforms?  
 
ANSWER :  
Implemented labor reforms  aims to s trengthen the protection of non -regular workers , resolve 
discrimination, reduce job instability, address the dua  structure of the Korean labor market, and 
strengthen the social safety net , provide stability for the unemployed and support their prompt 
reemployment  
 
 
Para 4.3  
 
Question  15 
Korea has continued to pursue FTAs with the conviction that market openness and liberalization 
contribute to strengthening nat ional competitiveness. What has been the impact of such FTAs on 
job creation? How is the welfare of workers (both skilled and unskilled) ensured and how are they 
protected against any wage or benefit loss?  
 
ANSWER :  
No information is avialbe at this moment  and further studies will be nessary to scientifically 
evaluate impact of FTAs and welfare of workers.  
 
 
Para 4.16 and 4.17  
 
Question  16 
How has FDI contributed to domestic job creation in Korea? Which sectors in particular have 
witnessed an increase in e mployment levels due to inflow of FDI?  
 
ANSWER :  
The employees who work for foreign -invested companies account for about 6 % of total domestic 
employments. In particular, foreign -invested companies in manufacturing sector are hiring 9.1 %of 
the total domest ic employments in that field.  
 
 WT/TPR/M/346/Add.1  
 
- 82 - 
 
  QUESTIONS FROM HONG KONG, CHINA  
Questions on the Secretariat Report  
 
A. Trade Policies and Practices by Measure  
SMEs and Financial Assistance  
(WT/TPR/S/346: Page 11, para 22; Page 18, para 1.11; Page 92, para 3.159)  
1. Future prosperity and sustainable growth depend on the Government implementing total 
factor productivity enhancing structural reforms, especially those aimed at closing productivity 
gaps in the non -traded sector as well as addressing issues relating to unviabl e SMEs.  
According to the IMF, as of 2015, key priority areas for raising productivity include: phasing out 
government support to unviable SMEs.  
The Government announced in November 2015 a new policy direction for reducing guarantees to 
mature SMEs (i.e. mo re than five years old) to focus more on start -ups and early -stage SMEs, 
where the difficulty of securing market financing is greatest. In 2015, six SME programmes were 
eliminated and 13 merged, resulting in budget savings.  
Question:  
What measures have bee n taken to address issues relating to unviable SMEs? Are there any 
objective criteria to determine whether an SME is "unviable "? Will these "unviable SMEs " receive 
any warning and assistance before the government reduces its support to the m? 
 
ANSWER :  
Information is not avialbe at this moment however relavant information will be provided soon  
 
 
Privatization  
(WT/TPR/S/346: Page 19, para 1.14; Pages 94 -95, paras 3.170 -3.171)  
2. Despite the Government's commitment to privatization of some state -owned enterpr ises, 
there has been virtually no progress in its few attempts in this area. Instead, to boost efficiency of 
the public sector, a 2013 Public Institution Reform Plan, inter alia , involving efforts to reduce the 
debt level of public institutions and improve  their productivity was launched and is under way.  
The brief push to restart privatization of public services in 2013 led to strikes or criticism from 
opposition parties and civic groups and the Government appeared to have lost the political 
appetite amid a faltering economy. The authorities added that the policy stance on the 
privatization of public services was to reflect the general public's opinion in decision -making.  
Question:  
We note that Korea 's plan on privatization of public services was put on hol d due to negative 
public sentiments. Instead, a Public Institution Reform Plan was launched to boost efficiency of the 
public sector. How successful is this Public Institution Reform Plan in reducing the debt level and 
improving productivity? Does Korea ha ve any plan to continue with the privatization of public 
services?  
 
ANSWER :  
The government 's debt reduction policy package is based on  reduction plans submitted by  public  
institutions. Annual management assessment for public institutions has been  used as  a tool to  
supervise the preparation and implementation of those plans.  To encourage active engagement of 
institutions, the government uses performance -based benefits distributed to them as an incentive.  
1) Debt reduction plan: self -help plans by public  institutions to cut debt s by selling non -essential 
assets and improving management practices  
2) Management assessment as a means to monitor implementation  
3) Establishing an institutional background for debt management:  
- introduction of segment accounting s ystem  
- adoption of quota system to prevent excessive issuance of corporate bond  
- improvement in feasibility study and in -depth ex -post evaluation  
 
Thanks to these efforts, the debt -capital ratio of Korean public institutions fell below the 200% 
target (1 83% in 2015) well ahead the 2017 deadline.  
 
On reckless management, excessive pays and perks were readjusted. Reckless management was 
added to assessment criteria for institutions and their chief officers. Additionally, management WT/TPR/M/346/Add.1  
 
- 83 - 
 
  data are now released to  the public, allowing a better monitoring by the media and the public. 
Audits also take place on a regular basis. As a result, the total welfare costs fell by 190 billion won.  
Privatization is a matter to be decided after collecting and reflecting the view s of the public, the 
National Assembly and market. To date, the government does not have a concrete plan on 
privatization.  
 
 
Industrial property  
(WT/TPR/S/346: Pages 105 -106, para 3.203)  
3. As of 2015, KIPO had designated 45,000 (15,000 in 2014) names of g oods and services as a 
reference for applicants in order to increase their convenience and reflect industrial development.  
Question:  
Could Korea elaborate on what t hese designations of names are?  
 
ANSWER : 
These designation names correspond to the different  classification of goods and services that they 
must fall under.  
 
Are they standardised description of common goods and services issued for reference by trade 
mark applicants (aimed to enable applicants to describe their goods or services more clearly and 
precisely, and to facilitate examiners' work in examining specifications of goods and services)? If 
yes, would Korea share information on the following - 
how are these "designations" selected and designed?  
 
ANSWER : 
Based on the past applications, the TM5 ID  list and WIPO Publications.  
the nature, purpose and effect of these "designations";  
 
ANSWER : 
Designations were established to minimize errors (specifically, inaccurate descriptions) in an 
applicants ' submission of the description for their goods and servi ces, thereby allowing easy 
selection of the type of goods or services. As a result, the burden of avoidable extra work was 
reduced for not only applicants, but also examiners.  
is the adoption of the standardised description in trade mark applications volun tary? If yes, what 
were the adoption rates in previous years?  
 
ANSWER : 
The adoption of the designations are voluntary, therefore, unfortunately, we have not been 
keeping account of the adoption rate.  
what are the tools (including automated or otherwise) or  measures, if any, for promoting the 
usage of the standardised descriptions by applicants?  
 
ANSWER : 
To promote the usage of the standardised descriptions, KIPO offers a fee reduction to applicants 
who submit a trademark application while using the standard ised description  
 
is there an English version of the descriptions? If yes, please provide a link for access.  
 
ANSWER : 
Yes, www.kipo.go.kr  
 
 
Copyright and related rights  
(WT/TPR/S/346: Page 108, para 3.216)  
4. In 2014, a variety of policies under the theme of "cultural prosperity" to protect 
the rights of the creator while facilitating the use of the created works were pursued including: the 
introduction of an open licence system for public copyrighted works; the development of copyright 
protection technolog y for the smart device environment; the strengthening of monitoring of illegal 
websites... " WT/TPR/M/346/Add.1  
 
- 84 - 
 
  Question  
Could Korea provide further elaboration and explanation on the specific policies introduced under 
the theme of "cultural prosperity" in 2014 in relation to  (a) "the introduction of an open licence 
system for public copyrighted works " and (b) "the strengthening of monitoring of illegal websites ". 
For (a), how are "public copyrighted works " defined? Are "private copyrighted works " excluded? 
We should be gratef ul to know how the system is operated – by the Government, an industry 
organisation or the private sector (e.g. record labels, movie production houses, etc.)? What is the 
role of the Government, if any? Is there a "central clearing house " and what is the s ource of 
funding of the scheme? If private copyrighted works are included, is it a voluntary system which 
record labels, movie production houses, etc. can choose to join or not? We should also be grateful 
to know the annual number of transactions and turno ver of the system since its implementation. 
How do the figures compare with the overall transactions of copyrighted works in Korea (if the 
system does not cover all transactions in Korea)? Has there been a review on the effectiveness of 
the system and, if yes, what is the outcome?  
 
ANSWER :  
Public Copyrighted Works are defined as works that are created by the national or local 
governments or as works whose intellectual property rights are wholly owned by the national or 
local governments. Nationals of Korea  can freely use these works without authorization from the 
government in accordance with Article 24(2) of the Copyright Act. (Please note copyrighted works 
privately owned are not included.)  
 
Since 2012, Korea has developed and created the open license sys tem for copyrighted works 
produced by government organizations, called "KOGL (Korea Open Government License) ", to 
stimulate the use of such works in the private sector. KOGL has its own logo, and each public 
organization puts this logo image on a cover of its publications open to the public. The publications 
with the KOGL logos can be accessed via the KOGL web portal ( http://www.kogl.or.kr ) or the 
website of each institution where the works were originally published.  
 
The Korea Culture Information Service Agency oversees and manages the services related to the 
free use of public copyrighted works. The agency receives the government subsidy valued at 
₩2 billion to run the services.  
 
The free use of public copyrighted works does not require authorization. It  only provides 
information on the public copyrighted works that are free to use. Therefore, no financial profit or 
transaction can occur from such services.  
 
Please see the table below for available data on KOGL for the past 3 years.  
The Cumulative Data on the Numbers of Participant Organizations and Public Copyrighted Works 
That Are Free To Use.  
YEAR  2013  2014  2015  AUG. 2016  
Number of 
Participant 
Organizations  
(Those that have 
put KOGL logo 
images on their 
publications)  46 103 168 187 
Number of Public  
Copyrighted 
Works  around 1 million  around 3 million  around 5 million  around 5.8 million  
 
For (b), we should be grateful to know the initiatives put in place for monitoring illegal  websites – 
is there a judicial site blocking mechanism, graduated response  system, infringing website list or 
something else? How are "illegal websites " defined? Has there been a review and how is the 
effectiveness measured? Please provide, if available, information or statistics that have come to 
the attention of the Korean Gov ernment (for example, the reduction in the number of illegal 
websites in Korea or the access rate of illegal websites in Korea).  
 WT/TPR/M/346/Add.1  
 
- 85 - 
 
  ANSWER :  
- With regards to judicial "site-blocking " mechanism, right holders of broadcasts, phonograms, 
films or etc., report a website suspicious of possible copyright infringement to the Korea Copyright 
Commission. The Commission, then, collects relevant evidence and data to determine whether the 
reported infringement has actually occurred. After this evaluation, the Commission  reports to the 
Ministry of Culture, Sports, and Tourism which will verify the evaluation report and request the 
counter -measures (i.e. blocking) to the Korea Communications Commission. The Korea 
Communications Commission, then, will separately assess the case, and request the site -blocking 
to the Internet Service Providers who will then block the website.  
 
The government does not make the infringing website list. Rather, the list is made through 
individual reports from right holders.  
 
When the report on  a possible copyright infringement case is submitted, the website may be 
blocked according to the process mentioned above.  
 
Illegal website is defined as a website in which 70% or more of its total posts infringe copyright. 
This website is subject to site -blocking.  
 
After reviewing our site -blocking policy, a faster response is needed for a copyright infringement of 
digital content case.  
 
The Ministry of Culture, Sports and Tourism, the Korea Copyright Commission, and the Korea 
Communications Commission co operate on a number of issues. They cooperate during the 
assessment process for site -blocking and to reduce the time spent for this procedure.  
 
Number of Blocked -Websites Outside of Korea due to Copyright Infringement (Unit: 
Cases)  
 2012  2013  2014  2015  2016(as of the end of 
June)  
Websites  Website 
Posts  Websites  Website 
Posts  
Number of 
Requests for 
copyright 
Infringment 
Assessment  30 13 44 140 412 134 111 
Number of 
Sites 
Blocked  - 12 44 122 385 128 73 
 
- The Graduated Response is a measure against a  sender who repeatedly distributes and 
reproduces illegal copyrighted materials on OSPs within Korea.  
B. Trade Policies by Sector  
Banking  
(WT/TPR/S/346: Page 138, para 4.138)  
 
5. Privatisation efforts of the fully government -owned Korea Development Bank ( KDB) were 
suspended in 2013. The Korean Government prepared to consolidate the KDB and the Korea 
Finance Corporation (KoFC) to re -establish it as a financial policy institution.  
Question:  
What role will the re -established institution take? Will it continue  to serve as a specialised bank as 
the KDB? Will the re -established institution operate commercially? Is there any plan to privatise 
the re -established institution?  
 
ANSWER : 
Pursuant to article 1 of KDB Act, the role of the bank is to contribute to ROK 's sound financial and 
economic development by facilitating industrial development and growth, expansion of 
infrastructure, regional development, financial market stabili ty and sustainable development.  
 WT/TPR/M/346/Add.1  
 
- 86 - 
 
  The re -established KDB, which was consolidated in 2015, w ill continue to serve the above 
mentioned roles as a specialized bank. KDB is operated commercially in line with global standards. 
At current stage, Korean Government does not hav e a plan to privatise the bank.  
 
 
Insurance  
(WT/TPR/S/346: Page 142, para 4.1 55) 
6. An insurance industry deregulation package was announced in October 2015. It contained 
deregulation in areas from product development, marketing and pricing, to asset management and 
financing. In this connection, insurers would have greater autonomy  over insurance products, 
insurance premiums and interest rates.  
 
Question:  
Will the insurers with foreign capital be subject to the same treatment as other domestic insurers 
under this deregulation package?  
 
ANSWER : 
Yes. Foreign insurance firms establishe d in Korea will have the same treatment with domestic 
insurance companies in regards to the deregulation above mentioned  
 
 
Telecommunications  
(WT/TPR/S/346: Page 143, para 4.161)  
7. The Korean Communications Commission (KCC) is responsible for the promotio n of fair 
competition and consumer protection in the telecommunication market, as well as arbitration in 
disputes between carriers, and between carriers and users. Among 63 cases submitted to the KCC 
for arbitration in 2015, 42 were dropped, 15 were dismis sed, and 6 cases were admitted or denied 
by the KCC.  
 
Question : 
Is there any co -operation between the Ministry of Science, ICT and Future Planning (MSIP) and the 
KCC for the promotion of fair competition and consumer protection in the telecommunication 
market? Will the MSIP take into account the arbitration results from the KCC when granting 
licences to the subject service suppliers?  
 
ANSWER : 
KCC-MSIP Trade Negotiation Response System  
Division of duties according to the law  
The government agencies in charge  of specific duties are designated according to domestic law on 
broadcasting and communications.  
- (Broadcasting) According to the "Broadcasting Act," the KCC is responsible for duties related to 
terrestrial, general channel and news -only channel broadcast ing with restrictions on foreign 
investment. The MSIP is responsible for cable, satellite, IPTV, and home shopping channels . 
According to the "Notice on Broadcasting Programming, Etc.," the KCC is in charge duties related 
to broadcasting programming quotas . 
- (Telecommunications) According to the "Telecommunications Business Act," the MSIP is 
responsible for duties related to telecommunications with foreign investment restrictions, and the 
KCC is responsible for duties related to prohibited actions and conf lict arbitration.  
- (E-commerce) According to the "Network Promotion Act" and "Location Information Act," the 
KCC (Consumer Policy Bureau) is responsible for transfer of information between countries. The 
Financial Services Commission (Financial services, etc.), the Ministry of the Interior (digital 
certification and digital signature, etc.) and the MSIP (digital products, etc.) are responsible for all 
other areas.  
* Following discussions between the MSIP and the MOTIE, starting in 2015 the MOTIE will overs ee 
negotiations related to e -commerce.  
 
 
Maritime Transport  
(WT/TPR/S/346: Page 147, para 4.184)  
8. When expanding port infrastructure to facilitate the transport of import and export cargo, 
public -private partnership was used. Port infrastructure at Busan , Incheon, Pyeongtaek -Dangjin, 
Ulsan and Gwangyang were developed and operated by private funds. Non -profitable facilities such WT/TPR/M/346/Add.1  
 
- 87 - 
 
  as seawall, dredging, shore protection, and hinterland transportation are provided by the 
Government, while profitable facilitie s such as container terminals are privately operated.  
 
Question:  
We would like to know what factors and criteria have been taken into account by the Korean 
Government when expanding port infrastructure through public -private partnership. How were the 
private companies selected for these port infrastructure projects, i.e. by open quotations or by 
invitations? Are companies with foreign capitals eligible for participating in these projects?  
 
ANSWER : 
When expanding port infrastructure through pub lic-private pa rtnership, Korean  government 
consider the correspondence with related plans such as its economics, urgency, and national port 
master plan. The private companies for the port infrastructure projects are selected through public 
offering and the final operato r is determined by business plan evaluation along with negotiations .  
 
 
Distribution Services  
(WT/TPR/S/346: Page 149, para 4.202)  
9. A large store or a super supermarket (SSM) is required to register with the local government 
before commencing business in  any traditional commerce preservation area. A licence is not 
required. Pursuant to a 2011 amendment to the Distribution Industries Development Act, the 
limitation on access by SSMs to traditional markets is revised from within a 500 m radius to 1 km 
radius. The validity of the restrictive rules was also extended from 3 to 5 years. This regulation is 
valid until 2020, according to an amendment in 2015.  
Question:  
How long does it usually take for a large store or a SSM to register with the local government? Is 
the information on the registration publicly available to service suppliers? Has any registration 
been rejected or declined by the local governments before? Regarding the amendment to the Act, 
has the distribution services industry, including wholesale and retailing service suppliers, been 
consulted before the amendment of the Act?  
 
ANSWER : 
Information of regitstion procedure is available in public. The requested statistic information is not 
available at this moment.  WT/TPR/M/346/Add.1  
 
- 88 - 
 
  QUESTIONS FROM G UATEMALA  
 
1) En los pár rafos 4.61 y 4.62 se hace referencia a la Iniciativa Visión Energía 2030, 
programa destinado a reducir la intensidad energética a través del conjunto de 
medidas concretas listadas en ese apartado. ¿Podrían comentarnos con más detalle 
sobre las mediciones y  el monitoreo llevado a cabo para confirmar los resultados 
intermedios alcanzados durante este proceso?  
ANSWER : 
Korean government changed the paradigm to demand -oriented energy policies based on power 
distribution system from Centralized supply -oriented e nergy policies. As one of the polices, the 
Korean government laid out "The Measures for Creating New Markets in Energy Demand 
Management Based on Information and Communications Technology (ICT) in the Era of Creative 
Economy." According to these measures, along with energy efficiency improvements in each type 
of energy using equipment, energy consumption would be further reduced by system -centered 
management using ICT applications. In addition, an enabling environment would be created where 
energy can be co nsumed in an efficient manner by shifting the electricity load from peak to off -
peak times.  
Furthermore, in the Fourth Basic Plan for Technology Development, Application and Deployment of 
New and Renewable Energy developed in September 2014, the Korean gov ernment set a target of 
raising the rate of new and renewable energy supply from 3.2% of that of primary energy in 2012 
to 11% and from 3.7% of total electricity supply in 2012 to 13.4% by 2035.  
2) En el párrafo 4.94, se mencionan diferentes iniciativas para promover el desarrollo del 
sector manufacturero, debido a la desaceleración de su crecimiento anual. ¿Podrían 
comentarnos con más detalle sobre los programas de investigación y desarrollo, así 
como el proceso de identificación y reducción de los obstáculos  reglamentarios?  
ANSWER:   
To respond proactively to the "smart revolution, " the convergence of manufacturing and IT that 
succeeds the industrial and information revolutions, the Korean government launched the 
Manufacturing Innovation 3.0 Strategy in June 2014. Key elements of the strategy include 
promoting the use of smart factories to fundamentally innovate production systems using IT, 
software and the Internet of Things (IoT); designating special zones for the demonstration and 
pilot operation of innovat ive products; and laying the groundwork for new industrial convergence.  
 WT/TPR/M/346/Add.1  
 
- 89 - 
 
  QUESTIONS FROM CHILE  
I. Informe de la Secretaría  
 
2 RÉGIMEN DE COMERCIO E INVERSIÓN  
2.1 Introducción  
Párrafo 2.1: Se señala que la República de Corea ha seguido mejorando su entorn o comercial 
desde el último examen realizado en 2012. En febrero de 2014, el Gobierno publicó su Plan Trienal 
de Innovación Económica, que abarca el período comprendido hasta febrero de 2017 y cuyo 
objetivo es mejorar los fundamentos económicos y aumentar la tasa de crecimiento del PIB. 
Corea, líder mundial en materia de gobierno electrónico, ha aplicado una Estrategia de Gobierno 
Inteligente entre 2011 y 2015.  
 
Pregunta 1:  Chile agradecería a Corea dar mayor información de en qué consiste dicha 
estrategia,  los resultados obtenidos y los cambios que se han hecho en esta materia.  
 
ANSWER : 
The 3 -year Plan for Economic Innovation is currently being implemented in a smooth manner. The 
Plan's outcomes are increasingly visible, especially with regards to structura l reforms and creative 
economy.  
The public sector is leading the Plan, starting with a pension plan re form for public workers. The 
17 Creative Economy and Innovation Centers across the nation also help spread the spirits of 
creative economy.  
The internatio nal community including the G20 highly recognized the Plan's implementation and its 
impact on growth.  
 
Three Goals  Achievements  
Economy with strong 
fundamentals  [Public sector reform]  pension plan reform for public workers, functional 
readjustments and de bt reduction for public institutions  
[Labor reform]  adoption of merit pay and wage peak systems  
[Financial reform]  preliminary approval of online -only banks, introduction of 
crowd funding and account switch service  
[Educational reform]  Selection of PRIME u niversities [ PRogram for Industrial 
needs -Matched Education], expansion of test -free semester program to all 
schools  
Growth Through Innovation  [Creative economy] opening of 17 Creative Economy Innovation Centers and 
promotion of start -up entrepreneurship  
[Overseas market development]  effectuation of Korea -China, Korea -New 
Zealand, Korea -Vietnam FTAs; facilitation of FTA utilization  
[Investment in future]  Selection of 19 future growth -driving industries, 
introduction of a new tax system and funds to support  new and emerging 
industries  
Balance between exports 
and domestic consumption  [Support for SMEs] Direct payment system for subcontractors, asset -building 
assistance program for young small -company workers*  
[Regulatory Relaxation] Wider adoption of cost -in, cost -out approach in the 
regulatory regime  
[Housing support] An additional supply of "Happy Housing" and "New Stay" 
houses** for 300,000 families  
 
*Translator 's note: Designed to reduce high turnover rate of Korean SMEs, this program helps 
asset buildin g for small - and medium -sized company workers. If a newly -hired employee deducts a 
set amount from his/her paycheck, the government and the employer both will match the same 
amount or more of worker 's contribution with contributions of their own. The fund accumulated will 
be given to the worker if he/she works at the company for two full years, thereby increasing the 
worker 's total income.  
**TL's note: Government -led housing lease programs.  
As a result, Korea's credit rating went up to a record high. Growth  and employment are also faring 
relatively well amid a prolonged downturn in the global economy.  
 
Párrafo 2.3:  Se señala que Corea tiene el tercer volumen de IED más bajo en la zona de la OCDE, 
lo que en parte se debe a los obstáculos al comercio y a la in versión que siguen existiendo. Las 
inversiones extranjeras están reguladas por la Ley de Fomento de las Inversiones Extranjeras, que 
fue modificada por última vez en 2016 para atraer inversiones procedentes de empresas 
mundiales. La IED sigue estando restr ingida a algunos sectores (…), estando parcialmente WT/TPR/M/346/Add.1  
 
- 90 - 
 
  permitida en el 2,5 de las actividades comerciales (como los servicios de transporte, los servicios 
de radiodifusión y telecomunicaciones y algunos servicios financieros).  
 
Pregunta 2: Chile agradecería a  Corea dar mayor información sobre en qué consiste dicho 
permiso parcial para invertir en los sectores anteriormente mencionados.  
 
ANSWER :  
Firstly, the reason of low level of FDI stock is based on manufacturing industry -centered economic 
structure as well  as short history of opening its economy to foreign investment. The ROK is going 
to take an economic policy to vitalize service industry and strengthen communication with foreign 
investors to relieve their grievance of investing to Korea.  
 
The ROK annuall y reviews the restricted business areas, including the scope and definition of 
restricted areas, aligning with domestic laws of individual sectors and FTAs. For example, the 
Aviation Act is going to be amended to rescind a foreign investment restriction on  the aircraft 
maintenance, repair and overhaul field. It may enter into force in 2017.   
 
Párrafo 4.166: Se indica que el MISP realiza, en forma periódica, análisis sobre la competencia 
en los distintos segmentos de servicios en el mercado de telecomunicac iones, designando los 
servicios y proveedores de servicios para los cuales es necesaria una aprobación de precios.  
 
Pregunta 3:  Chile agradecería a Corea detallar los criterios utilizados en la determinación de los 
mercados relevantes y también detallar lo s criterios utilizados para la aprobación de precios.  
 
ANSWER :  
- According to the Telecommunications Business Act, an evaluation of competition is conducted 
every year in order to identify markets necessary of ex ante regulation and business operators 
that should be subject to regulation, determine the kinds and intensity of regulation and impose 
obligations on dominant business operators in non -competitive markets.  
 
- To demarcate relevant markets, an SSNIP Test is conducted based on Critical Loss Analys is 
(CLA).  
 
- In case of dominant business operators, telecommunication charges are regulated* according to 
the Telecommunications Business Act  
 
 < * Criteria for approving authorization of 
terms and conditions of use>   
Whether telecommunications service charges have been determined with reasonable consideration of the costs 
for supply, profits, classification of expenses and profits corresponding to each service, cost saving depending 
on the methods of service delivery, influence over fair competition env ironments, etc.  
 
 
3.2.9 Normas y otras prescripciones técnicas  
3.2.9.1 Normas, pruebas y certificación  
3.2.9.1.2 Medidas relacionadas con los alimentos, la sanidad y otras cuestiones  
Párrafo 3.2.9.1.2: Respecto del  sistema de aprobación sanitaria y fitos anitaria implementado por 
Corea, el cual permite trabajar solo un producto a la vez por cada país y cuyo proceso demora 
varios años, solo para un producto, lo cual, sin duda afecta particularmente el desarrollo del 
comercio potencial entre Chile y Corea.  
 
Pregunta 4:  Chile agradecería a Corea dar información sobre si tiene planificado adecuar los 
procedimientos de manera de permitir mayor cantidad de aperturas sanitarias y fitosanitarias en 
un plazo razonable, a fin de otorgar mayor fluidez al comercio tran sfronterizo. De ser afirmativa la 
respuesta, Chile agradecería a Corea dar información sobre los cambios en dichos procedimientos.  
 
ANSWER : 
Korea carries out a risk assessment procedure for agricultural products and plants based on the 
scientific evidencei n accordance with international standards. Pest Risk Analysis (PRA) for on the 
subject item is implemented according to the order of prioritiesupon the request of the exporting WT/TPR/M/346/Add.1  
 
- 91 - 
 
  country. This is because we cannot proceed with PRA procedures simultaneously f or all  
190 requested items by 40 different countries due to the limited specialized workforce.  WT/TPR/M/346/Add.1  
 
- 92 - 
 
  QUESTIONS FROM NORWAY  
1. We would like to ask the Republic of Korea for an assessment of the experiences gained 
from measures administered by the Korean Intellectu al Property Office directed towards 
increasing the innovation output of Republic of Korea's economy. Which of those measures 
seem to work best, and what are the lessons learned?  
 
We are specifically interested in the Republic of Korea's 17 regional Center s for Creative 
Economy and Innovation (CCEI). What is the Republic of Korea assessment at this point?  
 
ANSWER :  
To date, KIPO has increased innovation output from the private financial market by implementing 
a IP financial policy. The IP financial policy helps SMEs utilize their own intellectual property (i.e. 
patents) as collateral when they need to raise funds from financial organizations. As a result, 
SMEs, whose property is small but highly valuable intangible property, specifically IP, can establish 
funds by utilizing their own IP.  
We believe that CCEIs are playing a major role in vitalizing regional economic activities supporting 
the following: innovation of startups and SMEs, building new collaboration models, nurturing 
region -specific industries an d job matching for the youth.  
Entrepreneurial activities encouraging any Korean citizen to create new businesses are active by 
establishing outstanding startup support system through CCEIs utilizing public -private partnership.  
 
 
2. Seafood has become a very important Norwegian export to the Republic of Korea, including 
a significant volume of fresh -farmed fish.  This is a perishable commodity and vulnerable to 
any delay in the transportation chain.  According to our information, approximately 3 % of 
these produ cts are subject to random testing in the Republic of Korea and kept in custody 
until the test results are ready, 5 -7 days later.  During this delay, the quality and shelf life 
of the products are reduced, sometimes to a level where destruction is the only o ption for 
the traders.  
 
Norway requests the Republic of Korea to describe and explain the routines for random 
testing of perishable seafood. Which measures are taken to avoid quality reduction and to 
save shelf life of fresh seafood tested without any ind ications to suspect any irregularities 
with the products.  
 
ANSWER : 
Seafood s imported to Republic of Korea from all countries are subject to document inspection, field 
inspection, thorough inspection, and random sample inspection to verify safety of the pro ducts. 
Random sample inspection takes 3 -4 days, and MFDS (Ministry of Food and Drug Safety) complies 
with the regulation to control the temperature during storage and distribution to maintain the 
quality of the products while the inspection is performed.  
 
 
3. Paragraph 3.162 in the secretariat's report describes the government support schemes for 
Korean ship builders and Korean offshore equipment suppliers:  
 
3.162. During the period under review, sector -specific support measures benefited 
shipbuilding, automo tive, pharmaceutical, and steel -industry activities (Section 4.5). In 
Novem ber 2013, Korea announced a ₩900 billion (€662.4 million) support scheme for the 
development of the offshore infrastructure sector through public -private partnerships to 
preserve its status on the global shipbuilding and maritime industry market.199 This 
scheme was to favour Korean equipment through various policy means and would rely on 
the use of the Korea EXIM Bank and K -sure to guarantee orders for the Korean yards 
(Section 3.3.5).  
 
Which policies and regulatory mechanisms does the Republic of Korea ha ve in place to 
secure a fair and transparent competition between Korean and foreign offshore and 
maritime equipment suppliers where government support measures are applied?  
 
It has been pointed out, i.a. in the Peer Review of the Korean Shipbuilding Indust ry and 
Related Government Policies by the OECD Working Par ty on Shipbuilding from WT/TPR/M/346/Add.1  
 
- 93 - 
 
  January  2015, that Korean government -related agencies hold substantial ownership in 
Korean shipbuilding companies.  
 
We would like to know which steps the Republic of Korea i s taking to make sure that 
ownership of its government -related agencies in the shipbuilding industry do not hamper 
free competition and a level -playing field among the industry players in shipbuilding and in 
its subsidiary supply industries?  
 
ANSWER : 
Wheth er to decide an entity "public -related agencies " or not does not have a common principle 
among countries and still open to debate. Furthermore, t he Korean government has not provided 
public financial support to any industry , including shipbuilding , or indi vidual shipbuilder . However, 
state-owned financial institutions  such as KDB or KEXIM as a large shareholder of some of the 
shipbuilders or shipyards  have made a n independent  decision on whether  to provide support  to 
those companies.  
 WT/TPR/M/346/Add.1  
 
- 94 - 
 
  QUESTIONS FROM SINGAP ORE 
PART I: QUESTIONS RE GARDING THE SECRETARIAT REPORT  
QUESTIONS:  
 
II – Trade and Investment Regime  
 
 
Page 28 (Para 2.3) FDI  
 
1. The Secretariat report highlights that ROK has the third -lowest FDI stock in the OECD 
area, in part due to the remaining trade and  investment barriers. ROK also recently amended its 
Foreign Investment Promotion Act in 2016 to attract investment from global companies.  
 
Does ROK have any plans to increase FDI levels by addressing its trade and investment barriers as 
well? 
 
ANSWER : 
Firstly, the reason of low level of FDI stock is based on manufacturing industry -centered economic 
structure as well as short history of opening its economy to foreign investment. The ROK is going 
to take an economic policy to vitalize service industry and st rengthen communication with foreign 
investors to relieve their grievance of investing to Korea.  
 
 
Page 32 (Para 2.22) Regulatory reform  
 
2. We note that the ROK government launched a "cost -in, cost -out" (CICO) approach to 
regulation during the review period.  
 
Can the ROK provide examples pertaining to how this CICO approach has positively impacted 
customs or trade regulatory procedures?  
 
ANSWER : 
CICO is in its nascent stage. So far, there has not been any customs or trade -related case that has 
utilized CICO a pproach. CICO was launched as a pilot project in 2014, and it went into full force on 
the 19th of July, 2016.  
 
 
III – Trade Policies and Practices by Measure  
Page 51 (Para 3.16) Customs procedures  
 
3. We note that as part of the Korea Customs Service's (KCS) 2015 Future Customs 
Administration Strategy, action is envisaged in several areas. ROK's vision to improve trade 
efficiency and reduce non -tariff barriers is desirable for its trading partners.  
 
Could KCS elaborate more on "the overall reorganization of t he national trade information 
system"? What is the vision and outcome that ROK is trying to achieve in this reorganization? How 
would it improve the import and export process?  
 
ANSWER : 
1. With integrated modeling, the system is downsized with the flexibili ty for maintenance and 
provision of necessary information is enabled.   
2. By providing non -stop 24/7 services, the reliability of customers such as importers, exporters, 
and customs brokers in customs administration has been raised.  
3. Transparency in the  operations and maintenance of information resources is secured, and the 
system efficiency and service satisfaction are improved.  
 
Page 70 (Para 3.79) Pharmaceuticals  
4. We note that each batch of imported pharmaceutical products remains subject to batch 
release testing by the healthcare authorities, even if they have already been tested and released WT/TPR/M/346/Add.1  
 
- 95 - 
 
  by the manufacturer and the health authority of the country of origin. In addition, for some 
medical devices used for medical practice, the Government needs to de termine whether they are 
eligible for reimbursement before they are used at healthcare institutions including hospitals, since 
all healthcare institutions in Korea are reimbursed by the Government for medical services 
provided to patients. With regard to m edical devices subject to health technology assessment, 
under the relevant laws, it takes up to about 17 months (or 510 days) from the date of application 
for MFDS approval by a device manufacturer to the date when the MFDS approval is granted and 
the prod uct is launched onto the market: approval takes 80 days; health technology assessment 
280 days; and listing the product for reimbursement 150 days.  
 
What is the ROK's rationale and justification for the requirement for imported pharmaceutical 
products to b e batch tested before they can be released into the market? Are there plans to reduce 
the time taken for a medical device subjected to Health Technology Assessment to be approved 
and used in ROK's health institutions?  
 
ANSWER : 
In July 2016, the Ministry of  Health and Welfare (MOHW) improved health technology assessment 
(HTA) in a way where it could coincide with MFDS approval. The improved HTA is now being 
implemented in Korea. With those improvements, the time taken for both MFDS approval and HTA 
has been reduced down to 80 - 280 days from the previous one (1) year*, which has made a 
medical device available in the market three (3) to nine (9) months earlier. In May 2016, the 
MOHW shortened the HTA period for diagnostic tests, such as in -vitro diagnostic an d gene tests, 
from the previous 280 days to 140 days.  
* MFDS approval: 80 days, HTA: 280 days (a medical device may be used at healthcare 
institutions after the completion of HTA)  
 
 
IV – Trade Policies by Sector  
Page 132 (Para 4.109) Green Cars  
 
5. What spec ific incentive schemes has the ROK put in place, or intend to implement, to 
promote fuel cell electric vehicles (FCEV)? How does the ROK plan to encourage automakers to 
lower the prices for the FCEVs?  
 
ANSWER : 
currently no information is avaialbe however t he further information will be provided as soon as 
possible.  
 
ANSWER : 
As indicated in the secretariat report, in order to facilitate the development of "green cars" 
including electric vehicles (EVs), the Government plans to increase the number of public f ast 
charging stations (building 1,400 units of EV charging stations by 2020 through public -private 
collaboration), diversify charging type and method, develop infrastructure for the construction of 
hydrogen filling stations, provide incentives (₩27.5 milli on per vehicle) to FCEVs (fuel cell electric 
vehicles), and encourage automakers to lower prices for FCEVs (by ₩85 million in 2015, and by 
₩64 million in 2018)  
 
Page 147 (Para 4.187) Aviation policy  
 
6. We note that ROK's current aviation policy includes "bui lding Korea as an aviation 
powerhouse leading the pan Pacific region", "pursuing open skies agreements with the EU and 
ASEAN" and "promoting open skies agreements with Asian countries".  
 
How does ROK measure success of being an aviation powerhouse leading  the pan -Pacific region? 
Could the ROK elaborate on its plans to materialise this? What is the ROK's definition of an open 
skies agreement? Given the potential benefits on investment, trade and economic growth arising 
from open skies agreements, i.e. with the exchange of unlimited 3rd, 4th and 5th freedom traffic 
rights, what is the ROK's timeline to pursue such agreements with A SEAN and other Asian 
countries?  WT/TPR/M/346/Add.1  
 
- 96 - 
 
  ANSWER :  
The Republic of Korea acknowledges that open skies agreements provide potential benefits to 
trade, investment and economic growth.  
 However, each country's geographical location and maturity of aviation businesses are 
different. So it would be desirable to pursue open skies agreements in consideration of 
such different conditions.  
 
There is no planned time schedule for open skies agreements . 
 
 
PART II: QUESTIONS R EGARDING THE NATIONA L REPORT  
 
QUESTIONS:  
 
III – Economic Policies  
 
Page 8 (Para 3.24) Negative Rules Evaluation System  
 
7. We note that the ROK government adopted a Negative Rules Evaluati on System, under 
which rules related to investment are screened on a negative list approach, alongside the existing 
fast-track licensing system.  
 
Could ROK elaborate on how the Negative Rules Evaluation System is implemented? Will the same 
set of screenin g criteria be applied to all foreign investors?  
 
ANSWER :  
The Korean government also seeks to facilitate smooth market entry and swift investment in new 
convergence industries. To this end, a Negative Rules Evaluation System was adopted, under 
which rules related to investment are screened on a negative list approach, alongside the existing 
fast-track licensing system. The government is also preparing the enactment of the Special Act on 
the Designation and Operation of Regulation -Free Zones to Promote Local  Industries, which would 
temporarily lift regulations inside certain regions.  
 
Page 8 (Para 3.24 and 3.26) Regulation -free zones  
 
8. We note that the ROK government is preparing the enactment of the Special Act on the 
Designation and Operation of Regulation -Free Zones to Promote Local Industries, which would 
temporarily lift regulations inside certain regions.  
 
Could ROK elaborate on how the Regulation -Free Zones will be differentiated, in terms of policy 
incentives, from existing foreign investment zones (FI Zs), free trade zones (FTZs) and free 
economic zones (FEZs)? What is the implementation timeline for these Regulation -Free Zones? 
Could ROK also elaborate on the industries that are targeted for the Regulation -Free Zones and 
whether there will be incentive s to attract foreign investments in these industries?  
 
ANSWER :  
The regulation -free zones aim to to help boost provincial economies by nurturing region -specific 
industries such as such as the Internet of Things (IoT), drones, bio -health and smart devices a nd 
will be established in 14 cities and provinces.  WT/TPR/M/346/Add.1  
 
- 97 - 
 
  QUESTIONS FROM CHINA  
Questions based on Report by the Secretariat (WT/TPR/S/346)  
Page 86, Para 3.132 -3.133  
"The state -owned Korea Trade Insurance Corporation (K -sure, previously KEIC), under MOTIE, 
provid es export credit insurance against non -payment risks (Trade Insurance Act, 1968)...K -sure's 
underwriting volume rose from 202 trillion underwritten in 2012 to 204 trillion in 2013, and 
subsequently dropped to 190 trillion in 2014, and 168 trillion in 2015.  Total exports underwritten 
by K-sure represented 22% of total exports and 88% of covered short -term insurance. K -sure was 
planning to provide 196 trillion (US$160 billion) worth of trade cover in 2016 to support exports at 
a time when they were faltering (Section 1.4). "  
"Korean exporters benefit from promotional activities of the state -owned Korea Trade and 
Investment Promotion Agency (KOTRA). With 126 Korea Business Centres in over 86 countries, 
the agency operates a "business matchmaking" service introd ucing foreign importers to Korean 
businesses. KOTRA also organizes or assists with trade missions and exhibitions domestically and 
overseas, providing SMEs with export -related information and consulting services. "  
1. The underwriting volume of K -sure has been decreasing continually since 2013 and the figure in 
2015 decreased by 11.6% over the previous year, please kindly explain the reasons for the 
significant decline.  
 
ANSWER : 
Korea 's export volume has decreased since 2013. It decreased in 2015 by 8% YOY.  Accordingly, 
the demand for export credit insurance has decreased.  
2. As two large state -owned enterprises promoting Korea's export, how do K -sure and KOTRA 
cooperate?  
 
ANSWER : 
The coopration between KOTRA and K -sure based on their MOU as well as a regula r meeting for 
their coopration  
3. What is taken into consideration and what is the business evaluation standard for the "business 
matchmaking" established by KOTRA between Korean enterprises and foreign enterprises?  
 
ANSWER : 
Outstanding Korean companies an d products are introduced to foreign buyers and we help 
facilitate business transactions, setting up meetings for foreign and Korean companies as well.  
 
Page 105, Para 3.199  
"Patent protection under the Patent Act of 1946 (last amended in 2015) is for 20 y ears from the 
date of filing (extendable for up to five years for pharmaceuticals and agricultural chemicals 
undergoing certain market -approval procedures). Both product and process patents may be 
granted. The grace period for filing is twelve months, and the term of the patent right may be 
extended when its registration is delayed by more than four years after the filing date, or three 
years after request for review when the reason is not attributable to the applicant. Green 
technology benefiting from gove rnment -supported R&D is allowed speedy screening/review. The 
document format for patent applications is identical to the United States, Japanese, and the EU 
model. The KIPO may grant a compulsory non -exclusive licence to work a patent if the holder has 
not worked it for more than three consecutive years.251 To date, one compulsory licence has been 
issued. Under the present legislation (including the Patent Act and the Unfair Competition 
Prevention and Trade Secrets Protection Act), penalties for p atent viol ations  can reach 
₩100 million in fines or seven years in prison. "  
 
4. What is the quantity of pharmaceuticals and agricultural chemicals patents for which the patent 
protection period is extended in Korea during this review period?  
 
ANSWER : 
487 (from 2007 to Au gust 2016)  
 
5. During this review period, based on the reason that registration is delayed by more than four 
years after the filing date, or three years after request for review, how many patents have been 
granted extension for patent protection period by  Korea?  
 WT/TPR/M/346/Add.1  
 
- 98 - 
 
  ANSWER : 
One patent has been granted extension for patent protection period by Korea.  
6. How many patent applications have used the novel grace period system during this review?  
 
ANSWER : 
The number of patent applications, which have used the nove grace period system, is 18,482 
during the most recent three years( '13~'15), and 6000 annually.  
 
7. Over how many patent applications has Korea speeded up the examination each year? How do 
foreigners apply for speeding up the examination? Is there an expedi ted examination system for 
the patent reexamination and invalidation?  
 
ANSWER :  
During the past three years ( '13~15), the number of patent applications, which sped up 
examinations, was 81,620, with an annual average of 27,000.  
 
The way of applying for exp edited examinations is the same for local people and foreigners. People 
who want to apply for this type of examination should submit an expedited examination 
application along with the required attachments that include explanations of the application.  
 
In cases of applications for reexamination, examiners are obliged to reexamine the case within one 
month from the date of delivery of such application or registration files. So, expedited 
examinations for reexamination are not necessary.  
 
8. Please describe  in detail the related conditions on compulsory licensing cases as mentioned in 
the report, including the patent number, obligee's and applicant's personal information, related 
background, content of compulsory licensing decision and calculation of license  fees, etc.  
 
ANSWER : 
There was a relevant case in 1980, but as the data is unavailable now, it is difficult to offer more 
detailed information about the case.  
 
 
Page 105, Para 3.200  
"The 2013 amendments to the Patent Act were, inter alia , aimed at: providi ng greater opportunity 
for renewing extinguished patent applications or rights; making applications more expedient; 
expanding the availability of refunds for patent fees (effective as of 1 July 2013); and, submitting 
applications with specifications in for eign languages through the introduction of foreign language 
patent applications (as from January 2015). Moreover, as a result of 2014 amendments, as from 
July 2015, the time period for invoking the grace period, which previously ended at the time of 
applic ation, has been extended all the way to patent registration, and divisional applications were 
made possible even after the examiner decides to grant the patent."  
 
9. According to the amended act, what are the conditions for requesting to restore patent 
application or patent right?  
 
ANSWER : 
An applicant whose patent has been extinguished due to non -payment of fees can apply for a 
revival by paying double the original fee as stated by Article 79 of the Patent Act within 3 months 
from the expiration of the pay ment period.  
 
10. What are the limitations for the use of foreign language in terms of the patent applications in 
foreign languages? Is it possible to submit patent applications in Chinese? Has any of the patent 
applications submitted in foreign languages been accepted and examined so far?  
 
ANSWER : 
A Korean Translation of the application must be filed within 14 months from the earliest priority 
date. The specifications and drawings may be submitted in English, however, the claim and 
summary must be translat ed into Korean.  
 
11. As to the timing of submission, please clarify whether the divisional applications can be 
submitted at any time after the examiners decide to grant the patent?  WT/TPR/M/346/Add.1  
 
- 99 - 
 
  ANSWER :  
1) In cases where applications are made subsequent to July 29, 201 5, divisional applications may 
be submitted before, or 3 months after (however, before establishment of registration) the 
decision to grant a patent is delivered.  
2) Prior to 29 July 2015, divisional application submissions were only allowed before the dec ision 
to grant a patent is delivered.  
3) From  1 July 1999 to June31, 2001, divisional application submi ssions were permitted within 
15 months from the earliest priority date, or before delivery of a certified copy of a patent.  
Page 134, Para 4.116  
"The au thorities indicated that the Government is currently reviewing the policy related to the 
restructuring of the shipbuilding sector".  
 
12. As a pillar industry in Korea, the shipbuilding industry is currently facing severe challenges and 
three major shipbuil ding enterprises are confronting huge losses. Has the Korean Government 
issued restructuring and support programs for the shipbuilding industry under this background? If 
any, please specify.  
 
ANSWER : 
Each shipbuilding company is consulting with its credito rs based on market principles to voluntarily 
implement restructuring through  various  measures . 
 
Page 146, Para 4.182  
"International vessels registered under the Minister of Oceans and Fisheries, and having one of the 
ports in Jeju -do designated as a port o f shipment, benefit from tax breaks relating to the 
acquisition, registration and property taxes."  
13. Please provide detailed information about international ship registration system and tax 
deduction and exemption policies involved.  
 
ANSWER : 
Internationa l ship registration system is a scheme to prevent domestic vessels to register at 
foreign ports. Moreover, it provides supports such as tax exemption or ease of restrictions for the 
number of foreign crew allowed on board for national ocean -going vessels r egistered as 
international fleet in order to increase national controlled fleet. However, among international 
ships, the only vessel which designated Jeju Island as its port of loading is referred to as Jeju SEZ 
registered ship.  
Duty-free regime is a syste m that exempts the purchase tax, property tax, local resource facilities 
tax for ships for the purpose of international ship registration.  
 
14. Please provide the charging level for the main ports like Busan, Inchon, Pyeongtaek and Ulsan 
and list related d etails.  
 
ANSWER : 
Port charges are difficult to refer to uniformly since they are charged as tug/pilotage fee, port 
entrance fee, anchorage fee, berth charge, landing charge which are determined according to 
vessel size or cargo volume etc. However, the tot al charge for 6,000TEU vessel entering Busan 
port is approximately US$ 24 thousand (based on 2015 Busan Port Authority casestudy).  
 
15. What are the main reasons for and the influence of the bankruptcy of Hanjin Shipping Co., 
Ltd.? What do the South Korean authorities think of the risk of maritime transport and its 
relationship with trade?  
 
ANSWER :  
Creditors assume that the main reason for Hanjin Shipping's file for court is due to the business 
management that caused excessive loan during the long period of  stagnation in the shipping 
industry  
- Following the Hanjin Shipping's file for court receivership, damages such as shipping delays for 
loaded cargoes and contraction of related industries have been occurring due to misfunctioning of 
Hanjin Shipping's vess els. WT/TPR/M/346/Add.1  
 
- 100 - 
 
  - The risk of maritime transport and its relationship with trade depends on the market supply and 
demand. In the case of the container market, it is assumed that freight charge has been 
continuously decreasing due to supply and demand imbalance caused  by the slowdown of cargo 
volume growth and increase in the number of vessels from pre -ordered mega -vessels.  
 
Page 148, Para 4.195  
"The Korean government encourages private investment in r oad construction, through 
build-transfer -operate (BTO)contracts."  
16. What are the relevant regulations in Korea on the access of foreign investment into road 
passenger and freight transportation market?  
 
ANSWER : 
There is no limitation.  
 
Other Questions  
17. After the sinking accident of "Sewol" ship occurred, which laws h ave been modified? Is there 
any limit on ship age? What measures have been taken to strengthen safety management of 
ferries and passenger ships?  
 
ANSWER : 
Following the Sewol ferry disaster, the laws and regulations restructured to strengthen the safety 
management of ferries are as follows:  
- (Saftey Management System Innovation) transferred the sailing administrator responsible for 
ferry inspection duties from the interest groups of a shipping company to the public sector, hired 
Maritime Safety Commissioner  for the direct supervision and guidance by the government.  
- (Ship Safety Enhancement) enhancement of the age limit of passenger and cargo combination 
carriers from 30 years to 25 years, prohibition of any modifications that lowers the stability, 
implemen tation of history mangement system of the ferries, promotion of modernization of coastal 
ferries.  
- (Passenger and cargo management) computerized ticketing and identification required for all 
passengers, introduced computerized ticketing for all cargoes, a nd strengthening of cargo securing 
standards  
- (Enhancement of sailors responsibility) enhancement of manning standard for captain, mandated 
crews to wear uniforms and enhancement of the training.  
 
 
18. Which tax policies have been adopted by the Korean Go vernment to attract international 
transit in addition to the tonnage tax policy in order to build Busan into the logistics center of 
Northeast Asia and a world -class hub port? What is the proportion of international transit 
containers in throughput rate?  
 
ANSWER : 
There is no direct or indirect regulations which involve government financing in order to attract 
international transit, and tonnage tax policy is unrelated to a system for attracting transit cargo. 
Port cargo volume is supported by individual port  authorities such as Busan Port Authority.  
- The proportion of international transit container throughput is 41.7% compared to the total 
container throughput.  
* 2015 Korea 's total cargo volume/transit volume : 2 5 million 681 thousand TEU / 
10 million  719 thousand TEU  
 
 
19. What is the proportion of invention patents rejected after the first notice of examination 
opinions are issued during the substantive examination in Korea?  
 
ANSWER : 
15% (as of 2015)  
 
20. It is known that three years of annual fees need to be paid in a lump sum after the patents are 
authorized in Korea. If the patent right is abandoned within three years, can the remaining fees be 
refunded?  
 
 WT/TPR/M/346/Add.1  
 
- 101 - 
 
  ANSWER : 
According to Article 84.1.6 of the Patent Act, patent fees for the following year after a bandoning 
patent rights shall be refunded  
 
21. Which supporting documents need to be notarized in Korea?  
 
ANSWER : 
Parties of legal relations may have documents notarized when they consider it necessary. 
Supporting documents which need to be notarized are p rovided in relevant legislation.  
 
22. What is the proportion of invalid patents in the total invalidation requests in the patent 
invalidation procedure in Korea ? 
 
ANSWER : 
45.0% (as of 2015)  
 WT/TPR/M/346/Add.1  
 
- 102 - 
 
  QUESTIONS FROM INDONESIA  
SECRETARIAT REPORT  
 
Summary  
Page 8 Pa ra 4 
"The openness of the Korean economy to international trade, and its integration into the world 
economy continued to be reflected by the high ratio of its trade (exports plus imports) in goods 
and services to GDP that stood at 84.8% in 2015, though sig nificantly lower than in 2012. 
International trade and foreign direct investment (FDI) trends reflect the continued importance of 
Asia-Pacific as Korea's main regional market and supplier, though China, the EU, and the 
United  States remain its major indivi dual trading and FDI partners; furthermore, trade under 
regional (free trade) agreements (RTAs/FTAs) has risen during the review period. Korea's FDI 
policy remains unchanged. FDI caps are in place in several sub -sectors, including: beef cattle 
farming, ins hore and coastal fishing, transmission and distribution of electric power, air transport 
and supporting services, publishing activities, broadcasting and telecommunication services. 
Official approval is required for foreign investment in financial services , while prior notification by 
foreigners is needed in various other subsectors. Incentives to FDI are mainly in the form of tax 
exemptions/reductions, cash grants, and industrial site support. The cost effectiveness of these 
incentives remains questionable ." 
 
Question:  
1. Would the Republic of Korea explain the reasons for keeping some sectors/sub -sectors closed, 
and what steps it plans to boost inward FDI?  
 
ANSWER :  
The WTO GATS (Article  XIV General Exceptions) does not prevent a member from taking action 
which it considers neceesary to protect public morals or to maintain public orders, to protect 
human, animals or plant life or health, and so on. In this context, the ROK restrict some 
sectors/sub -sectors, such as nuclear power, to protect national security o r to maintain public 
orders. To boost inward FDI, the ROK is going to take an economic policy to vitalize service 
industry and strengthen communication with foreign investors to relive their grievance.  
 
 
Page 9 Para 7  
"The Government has continued to impro ve its regulatory framework to reduce the burden of 
doing business. In 2014, the Government launched the "cost -in, cost -out" approach to avoid 
introducing unnecessary new regulations. From January 2014 to January 2015, the number of 
economic regulations wa s cut by 10%. Korea has taken steps to fulfil its transparency obligations 
at the multilateral level by, inter alia , meeting its WTO notification requirements, though 
notifications in certain areas (e.g. government procurement, export subsidies, and domest ic 
support in agriculture) have been subject to long submission gaps."  
 
Question:  
1. Would the Republic of Korea please elaborate on the extent to whom and how the "cost -in, 
cost-out" approach are adopted to?  
 
ANSWER :  
CICO is applied to 27 central administra tive agencies, with the exception of some agencies that 
concern diplomacy, security, etc.  
In principle, administrative agencies are supposed to propose which regulations are to be 
abolished or relaxed when they wish to introduce new regulations. However, if simultaneous 
proposal is deemed not viable, the concerned administrative agencies can instead submit a plan of 
regulatory reform/revision within a year of introducing the new regulation.  
 
 
Page 9 Para 8  
"The tariff remains one of Korea's main trade poli cy instruments, and a significant, albeit 
declining, source of tax revenue. The 2016 customs tariff remains transparent but is relatively 
complex, involving a multiplicity of rates (85  ad valorem  duties, 44  alternate duties, and 1 specific 
duty) often with  small rate differences and some involving decimal points. As a result of changes 
relating to the insertion of 16 tariff lines at 513% (rice and rice products), the splitting of tariff WT/TPR/M/346/Add.1  
 
- 103 - 
 
  lines with high rates and the merger of tariff lines with low rates, th e average applied MFN  tariff 
rate increased from 13.3% in 2012 to 14.1% in 2016. This remains high by OECD -country 
standards, thereby requiring tariff concessions or drawbacks to ensure that tariffs on intermediate 
inputs do not become taxes on exports, ad ding to the complexity of border taxation. Peak 
ad valorem  rates also remained unchanged and concentr ated in agricultural items 
(WTO  definition); applied MFN tariff rates ranged from zero to 887.4% (for manioc). As was the 
case in 2012, 85% of rates were 1 0% or below in 2016. Tariff -rate quotas are in place under 
Korea's multilateral agricultural market access commitments, with in -quota rates ranging from 
zero to 50% (2016) compared with out -of-quota rates of up to 887.4%, and with a decreasing 
average fill  rate of 59.5% (2015). Other measures (e.g. "autonomous" tariff quotas, usage tariffs, 
and duty concessions) selectively reduce tariffs on inputs. Korea has bound 90.1% of its tariff 
lines; that is, 99.6% of agricultural lines (excluding seaweeds and bait for fishing) and 88.6% of 
its non -agricultural lines (WTO definitions). The gap of 4.4 percentage points between the average 
bound and applied MFN tariff rates imparts a degree of unpredictability to the tariff regime and 
provides scope for the authorities  to raise applied rates within the bindings. Korea has continued 
to use this gap to apply higher MFN duties (e.g. adjustment duties) termed "flexible tariffs", which 
the authorities maintain are within WTO bindings; product coverage under "flexible tariffs " fell 
from 216 (HS six -digit) items in 2012 to 145 in 2016."  
 
Question:  
1. Would the Republic of Korea provide more information on the mechanisms used to decide which 
products will receive tariff rate increases?  
2. Please elaborate upon the factors taken into a ccount when goods are selected for flexible 
tariffs.  
3. Please inform us on what new products have been covered by flexible tariff since 2013?  
 
ANSWER(1~3) :  
Adjustment tariff is applied in times of concerns that domestic markets might be disturbed and 
indus trial infrastructures might be collapsed. Since 2013, one item (naphtha) has been added to 
the list of adjustment tariff. And Korea is gradually reducing the items covered by adjustment 
tariff.  
 
 
Page 9 Para 9  
"During the review period, trade facilitation improvements inclu ded the ratification of the 
WTO Trade Facilitation Agreement (TFA) in 2015, the expansion of t he authorized economic 
operator -related mutual recognition arrangements, and the introduction of a de minimis clearance 
process for consumer goo ds purchased online. Regarding customs valuation, legislation allowing 
for joint application of a unilateral advance pricing arrangement and an advance customs valuation 
arrangement were introduced. Activities to help companies utilize RTA/FTA trade prefer ences, 
inter alia, subject to diverse and complicated rules of origin were continued."  
 
Question:  
1. Would the Republic of Korea please  provide us with more information on the requirements to 
decide which entities will qualify as an Authorized Economic Operato r? 
 
ANSWER :  
Korea has 4 AEO authorization criteria : 1) law compliance, 2) financial solvency, 3) internal control 
system (internal system of the company to improve legal compliance), and 4) security  
management, which need to be fulfilled. There are 3 AEO grades of A/AA/AAA : A with 80 or above 
of law compliance score; AA with 90 or above of law compliance score; AAA with 95 or above of 
law compliance score together with best practices.  
 
Page 9 Para 10  
"Rice import quotas were replaced as of 1 January 2015 by a tariff -rate quota of 5% and a 
virtually prohibitive 513% out -of-quota duty. Import licensing requirements cover numerous tariff 
items and prohibitions are maintained mostly for the protection of public morals, human health, 
hygiene and sanitation, ani mal and plant life, environmental conservation or essential security 
interests in compliance with domestic legislation requirements or international commitments. 
Korea intensified the use of anti -dumping provisions, mainly against imports of chemicals, pla stics, 
and stainless steel; it initiated 20 anti -dumping investigations (2011 -2015) and had 32 final 
measures in effect on imports from 11 countries, mostly in Asia. Price -based special safeguard WT/TPR/M/346/Add.1  
 
- 104 - 
 
  provisions (SSG) have been imposed on ginseng and rice and r elated products, while volume -
based SSGs were imposed for the first time since 2007 on ground -nuts, rice and related products, 
cereal flour and other worked grain."  
 
Question:  
1. Would the Republic of Korea please inform us the list of products which requires  import 
licensing?  
 
ANSWER :  
Import approval is governed by the Foreign Trade Act and 56 other laws. The Consolidated Public 
Notice, containing all export and import certification requirements stipulated in the 56  separate 
laws, is updated by the Ministry of Trade, Industry and Energy . Please kindly refer to the 
secreatirat report 3.55 for the some list of products under import licensing.  
 
 
Page 9 Para 11  
"Korea continued to maintain the option to restrict or monitor exports of certain products to 
ensure a dequate domestic supplies, thereby possibly assisting downstream processing of these 
products. Quantitative export restrictions (recommendations) on rice were removed in March 2015 
although, in practice, there has been no trade -restrictive effect; no quant itative export restrictions 
for any other agricultural products are in place. Export prohibitions are aimed at protecting animal 
rights and endangered species, and conserving natural resources. Direct export subsidies are 
maintained to reduce marketing cos ts for certain agricultural products. In addition to the tariff 
drawback scheme, excises and VAT are rebated at the border. Furthermore, income tax relief is 
accorded to enterprises located in free trade zones. Exporters continue to benefit from export 
credit insurance, finance, and the promotional activities provided by state -owned institutions."  
 
Question:  
1. Would the Republic of Korea please inform us on the compliance of direct export subsidies 
policy to the related Agreements in the WTO?  
 
ANSWER :  
Korea kindly confirm that aboved mentioned policy measures are imple mented in compliance to 
the rele vant agreements of WTO.  
 
 
Page 11 Para 18  
"The agriculture sector remains heavily protected; its contribution to GDP (2.3%) was little more 
than its support (1.8 %). In 2015, Korea replaced its import quota regime on rice with a tariff 
quota system, and abolished its rice export quota regime. Other agricultural policies have 
remained largely unchanged since the previous Review in 2012. At the border, tariffs contin ue to 
be the main instrument supporting domestic prices, particularly on rice. The average applied MFN 
tariff for agricultural goods reached 60% in 2016, up from 55% in 2012, and is more than nine 
times the average for non -agricultural goods (6.6%). Tariff  quotas are utilized, administered or 
allocated by state -trading entities or industry associations. Domestic support continued to affect 
agricultural production and trade, and Korean consumers had to pay much higher prices than the 
world levels (1.9 times) . Domestic support for fishing has fallen significantly. The Government 
introduced more severe sanctions in recent years to fight against illegal, unreported and 
unregulated fishing."  
 
Question:  
1. What steps, if any, are the Government of Korea taking to red uce MFN agricultural goods 
tariffs?  
 
ANSWER : All of the Korean tariff rate was determined based on TE in the 1994 UR, we do not 
have any plan to change them. However, Korea has further liberalized its agricultural market 
through FTAs with major trading par tners.  
 
 WT/TPR/M/346/Add.1  
 
- 105 - 
 
  Page 11 Para 20  
"Manufacturing contributed to about 30% of GDP, 17% of total employment and around 85% of 
total merchandise exports. Manufacturing activities are dominated by large conglomerates, with a 
large labour productivity gap between large firms and SMEs. The simple average applied MFN tariff 
rate was 11.3% (ISIC 3) on imports of manufacturing products, and the rate was 6.3% on 
manufacturing excluding food processing products; both are much lower than the rates for 
agricultural products. Sec tor-specific support included incentives to upgrade the steel industry, and 
the financing arrangement of the shipbuilding industry."  
 
Question:  
1. Would the Republic of Korea please inform us the detail of the incentives to upgrade the steel 
industry and the financing arrangement of the shipbuilding industry?  
2. Related to Question No. 1, please share us the information concerning the basis of the said 
policy?  
 
ANSWER(1~2) :  
 
The Korean government does not have a plan to provide public support to any specific s ector, 
including shipbuilding industry, in the foreseeable future. As indicated in the secretariat report, 
limited policy measures are implemted such as promoting eco -friendly steel plates etc.  
 
 
3 Trade policies and Practices by Measure  
3.1 Introduction  
 
Page 47 Para 3.5  
"Rice import quotas under Korea's WTO minimum market access (MMA) commitments were 
replaced as of 1 January 2015 by a tariff -rate quota of 5% and a virtually prohibitive 513% 
out-of-quota duty. Import licensing requirements cover numerous  tariff items and prohibitions are 
maintained mostly for the protection of public morals, human health, hygiene and sanitation, 
animal and plant life, environmental conservation, or essential security interests in compliance 
with domestic legislation requi rements or international commitments. Korean industrial standards 
have been reduced over the review period and those adopted in mandatory technical regulations 
decreased by 39%; the share of those harmonized with international standards increased. During 
the review period, a mandatory organic certification programme was introduced and changes were 
made, inter alia,  in the areas of reporting, declaration of conformity, testing and environmental 
impact review as well as maximum residue limits, food additives,  and genetically engineered 
animals. As of 2015, Korea has been shifting its maximum residue limits system to a new "positive 
list" system (PLS) for agrochemical residues inhibiting the use of non -registered pesticides which 
are not evaluated by scientific  assessment. A traceability system for infant/baby food and health 
functional foods, labelling requirements for tobacco health warnings and biotech crops and food 
were introduced. During the period under review, recourse to anti -dumping action doubled; Korea 
continued to use anti -dumping provisions, mainly against imports of chemicals, plastics, 
and stainless steel  originating mostly in Asia. Price -based special safeguard provisions (SSGs) 
under the WTO  Agreement on Agriculture have been used on ginseng and  rice and related 
products, while volume -based SSGs were imposed for the first time since 2007 on ground -nuts, 
rice and related products, cereal flour and other worked grain."  
 
Question:  
1. Korea continued to use anti -dumping provisions, mainly against import s of chemicals, plastics, 
and stainless steel. Please inform us the reason for focusing the anti -dumping provisions on 
those three products.  
 
ANSWER : The Applications for anti -dumping investigation from those three industies are more 
than other industies  
 
 
Page 48 Para 3.7  
"Measures involving grants, tax concessions, and low -interest loans continued to support 
production and trade of various agricultural, forestry, fishing, coal mining and manufactured 
products, and to encourage SMEs, R&D, and environmental -protection activities. Although tax 
incentives were to terminate automatically in accordance with sunset clauses, many were WT/TPR/M/346/Add.1  
 
- 106 - 
 
  extended. SMEs remain among the major beneficiaries of these measures, which are especially 
generous for information technology act ivities. However, a 2015 policy direction is aimed at 
reducing guarantees to mature SMEs and focusing on start -ups and early -stage SMEs; those facing 
problems of access to raw materials are supported by a fund.Agriculture receives substantial 
domestic fina ncial support. Compensation or adjustment support for farmers and manufacturers 
adversely affected by a bilateral free trade agreement remains in place."  
 
Question:  
1. Would the Republic of Korea please inform us on the compliance of grants, tax concessions, and 
low-interest loans continued to support production and trade of various agricultural, forestry, 
fishing, coal mining and manufactured products, and to encourage SMEs, R&D, and 
environmental -protection activities to the related Agreements in the WTO?  
 
ANSWER :  
Kinldy note that the above mentioned policy measures are all notified to WTO in compliance with 
the WTO Agreement on Subsidies and Countervailing measures.  
 
2. Would the Republic of Korea please inform us on the compliance of the domestic financial 
support policy on agriculture to the related Agreements in the WTO?  
 
ANSWER :  
Korea 's agricultural support is operated in compliance with the related WTO Agreement including 
Agreement on Agriculture and Agreement on Subsidies and Countervailing measures.  
 
 
3 Trade policies and Practices by Measure  
3.2 Measure Directly Affecting Imports  
3.2.8 Contingency Measures  
3.2.8.1 Anti -Dumping and Countervailing Measures  
 
Page 66 Para 3.66  
"During the period under review, recourse to anti -dumping action doubled. Between 2012 and 
2015, Korea initiated 20  anti-dumping investigations (8 in 2008 -11) involving aluminium bottle 
can (Japan), plywood (China), oriented polypropylene film (China, Indonesia , and Thailand), PET 
film (Japan), ethanolamine (Japan, Malaysia, Thailand, a nd United States), polyester filament 
partially oriented yarn (India, Malaysia, and Thailand), valves for pneumatic transmissions 
(Japan), structural steel sections (China), ethyl acetate (India), and coniferous wood plywood 
(China). As of December 2015, 3 2 anti-dumping measures were in force on 12 products, mainly 
choline chloride (4 cases), ethanolamine (4 cases), ethyl acetate (3 cases), PET film (3 cases), 
oriented polypropylene film (3 cases), and stainless steel bar/plate (2 cases); 31 measures were i n 
place in March 2012. Action affected mostly products originating in Asia (28,  mainly China (10), 
Japan (7), India (3), Malaysia (3), and Thailand (2)), and to  a lesser extent Canada, the 
EU (Spain) and the United States. Virtually all final measures cons isted of definitive duties. 
Between 2012 and 2015, Korea completed 13 sunset reviews, of which 12 resulted in the 
extension of measures and 1 in termination; 3 measures were terminated without a review. In 
January 2016, 1  sunset review was under way. On 15  March 2016, Japan requested consultations 
with Korea under the dispute settlement system concerning measures imposing anti -dumping 
duties on valves for pneumatic transmission ("pneumatic valves") from Japan (Section 2.5.1)."  
 
Question:  
1. The Republic of Kor ea imposes anti dumping measures on Oriented Polypropylene Film (HS 13 -
002) originated from Indonesia since 20 December 2013. Please inform us the current position 
of the said measures and when would it be reviewed?  
 
ANSWER :  
The above mentioned anti -dumpi ng duty is valid until December 19, 2018. As it has been more 
than one year since the initiation date of the measure, it is possible to apply for a review in 
accordance with the Korean domestic law. The review application can be made until six months 
before the expiration date of the measure while there has been none so far.  
 WT/TPR/M/346/Add.1  
 
- 107 - 
 
  3 Trade Policies and Practices by Measure  
3.2 Measures Directly Affecting Imports  
3.2.9 Standards and Other Technical Requirements  
3.2.9.1 Standards, Testing and Certification  
3.2.9.1. 3 Conformity Assessment  
 
Page 71 Para 3.84  
"Certification authorities are encouraged to negotiate mutual recognition arrangements (MRAs) 
with foreign counterparts. KOLAS is a signatory to the International Laboratory Accreditation 
Cooperation (ILAC) Multil ateral Recognition Arrangement (MLA) for testing and for calibration; as 
of May 2016, 89 accreditation bodies from 74 countries participated in the MLA. KATS is a 
signatory to the International Accreditation Forum (IAF) MLA for bodies operating product 
certification systems. Korea also maintains an extensive network of MRAs, especially with APEC 
economies. The Korean Accreditation Board (KAB) and KAS form part of the Pacific Accreditation 
System (PAC). KAB is a signatory of the IAF MLA for Quality Managemen t Systems, and 
participates in the IAF MLA for Environmental Management Systems. Korea is also a member of 
the APEC MRA on Conformity Assessment of Telecommunications Equipment (Phase I and II) and 
of Part I of the APEC Electrical MRA; it does not intend t o participate in Part II and III of the latter. 
It joined the MRA on Conformity Assessment of Electrical and Electronic Equipment in 2015."  
 
Question:  
1. Would the Republic of Korea give us information on the procedures, requirements, and the 
related governme nt institutions in Russia that are in charge of counducting a bilateral MRA?  
 
ANSWER : 
Korea has not made any MRA with Russia so far.  
 
 
3 Trade Policies and Practices by Measure  
3.2 Measures Directly Affecting Imports  
3.2.9 Standards and Other Technical Req uirements  
3.2.9.2 sanitary and Phytosanitary Measures  
3.2.9.2.1 Food Standards -Setting Framework  
 
Page 75 Para 3.94  
"Since 2015, Korea has been in the process of shifting to a new positive list system (PLS) for 
agrochemical residues which would inhibit the  use of non -registered pesticides which are not 
evaluated by scientific assessment and would no longer allow imports of food containing 
agrochemical residues unless the substance has been listed, or approved, for the commodity in 
question and an MRL has be en established. The MFDS plans to first complete the transition to the 
PLS for tropical fruit and nuts/seeds by the end of 2016; it then plans to complete the transition 
for all other crops by the end of 2018 and veterinary drugs by 2020. In the process of  making this 
shift, Korea is requiring new import tolerances for agrochemicals not already registered for use in 
the country. This process may prove a significant challenge to exporters of fruit and grain if import 
tolerances are not set at an appropriate level and in a timely manner; sufficient time for a smooth 
transition to the PLS may be required. After a single MRL violation by an export shipment to either 
Korea or another country, Korea may impose restrictive import requirements on that product's 
grower, shipper, and importer, and may require a number of compliant shipments to Korea before 
the requirement is removed."  
 
Question:  
1. Indonesia believes that the Republic of Korea's notification to impose SPS measures including 
the uniform maximum residue sta ndard of 0.01 ppm will create unnecessary barriers to trade. 
The measures will create new burdens on exporting countries like Indonesia. Indonesia 
therefore would like to request the Government of Korea to reconsider the adoption of the new 
measures.  
 
ANSW ER: 
Korea is not the only country introducing PLS. Many countries like Japan, Hong Kong, Chienese 
Taipei adopted PLS. Also, Countries like U.S., Austrilia, New Zealand introduced similar policy too. 
For your information, Korea announced its intention to in troduce PLS in 2011 and notified it to 
WTO in 2014.  WT/TPR/M/346/Add.1  
 
- 108 - 
 
  2. Would the Republic of Korea please share the progress on the plan to set the new positive list 
system for agrochemical residues which will become effective by the end of 2016 for nuts, 
tropical products a nd will become effective for other agricultural commodities by the end of 
2018?  
 
ANSWER : Regarding second PLS introduction, ROK plans to notify it to WTO on June 2017. Also, 
ROK will hold approximately four times of presentations to share relevant informat ion on 2nd PLS 
introduction.  
 
 
3 Trade Policies and Practices by Measure  
3.4 Measures Affecting Production and Trade  
3.4.5 Competition and Consumer Policy  
3.4.5.2 Price Controls and Monitoring  
 
Page 102 Para 3.190  
"Price controls remain in place in specifi c areas. The President can order the control of prices on a 
range of products through "emergency demand and supply adjustment measure" decrees; no such 
measures have been adopted since 2012. The Government may, when deemed necessary to 
stabilize the people 's livelihood and the national economy, designate a ceiling price on important 
commodities, rent for real estate, etc., or charges for services. Price controls and monitoring are 
operated under the Coal Business Law, the Petroleum Business Law, and the MRF TA. According to 
the authorities, in principle, prices are determined by the market with no intervention from the 
Government except for in the following exceptional circumstances. First, the Government can 
approve the price adjustment of public goods or se rvices that are deemed necessary to stabilize 
the people's livelihood or supplied by a monopoly state -owned provider upon their provider's 
requests. Second, in case of urgent financial or economic crises or other extraordinary 
circumstances including natur al disasters and emergencies at home or abroad, an emergency 
demand and supply adjustment measure can be adopted. Third, if necessary, the Government 
may designate a ceiling price if a commodity's supply condition changes dramatically to stabilize 
the live lihood of consumers or spur industrial restructuring. Charges on public goods and services 
may be adjusted by central and regional governments. The central government approves: the 
wholesale price of coal products used for home heating; the rates for metro politan region 
waterworks service (wholesale only) and electricity; fees for telecoms, television services and 
postal services; and, fares for railway, intercity bus fares, motorway tolls and international 
airfares. The regional governments are responsible  for determining: the retail price of coal 
products used for home heating; the ticket price of art exhibitions and performances; rates for 
water and sewage; fares for inner city buses and taxis; entrance fees of local museums and 
memorials; the price of se ptic tank cleaning and food garbage bags; and, high school tuition fees."  
 
Question:  
1. Would the Republic of Korea please give further information on goods and services sectors 
classified as having direct impact on people's livelihood and the national econom y? 
 
ANSWER :  
Coal and coal briquettes used under a limited number of circumstances are classified as products 
with direct impact on people 's livelihood (the third exception in the original text).  
 
2. Would the Republic of Korea please give information on the monitoring of the implementation of 
price control in goods and services?  
 
ANSWER :  
While no goods or services are under price control at the moment, the Statistics Korea is 
monitoring prices through its monthly survey.  
 
 WT/TPR/M/346/Add.1  
 
- 109 - 
 
  4 Trade Policies by Sector  
4.4 Ener gy 
4.4.4 Coal  
 
Page 129 Para 4.90  
"Coal is the cornerstone of the power system in Korea, accounting for 31% of total primary energy 
supply, and 40% of electricity generation. Almost all coal used in Korea is imported, and imports 
come mainly from Australia , Indonesia, and the Russian Federati on, followed by China and 
South  Africa. Korea is the third -largest importer of coal in the world, after Japan and China."  
 
 
Question:  
1. Would the Republic of Korea please share its experience in developing the power syste m? 
 
2. Does the Republic of Korea have any plan to increase its investment in Indonesia, including on 
power system?  
 
ANSWER(1~2) : 
Korea is welcome to discuss further regarding the above mentioned matte.  
 
OTHERS  
 
The Republic of Korea Imposes Penalty on Indon esia's Oleochemical Products  
 
Question:  
1. Indonesia would like to reiterate the commitment of the 23rd Meeting of the ASEAN -Korea 
Sub-Committee on Tariffs and Rules of Origin (AKSTROO) where the Republic of Korea will 
render flexibilities and preferential tr eatment for Indonesia's export that uses trans -shipment 
through Singapore or any other ASEAN countries.  
 
ANSWER:  
Korea and Indonesia agreed, to their best endeavor, to give flexibility to the definition of 
"a through  bill of lading " under Rule 19 of the Op erational Certification Procedure (OCP). Both 
sides agreed to refrain from denying the preferential treatment for goods exported from Indonesia 
that undergo transshipment or transit via intermediate countries using Bill of Lading or multimodal 
transportati on documents, complemented by relevant supporting documents, provided that the 
goods are originating and are considered as in compliance with direct consignment requirement 
under Rule 9 of AKFTA Rules of Origin.  
 
 WT/TPR/M/346/Add.1  
 
- 110 - 
 
  QUESTIONS FROM MEXICO  
Informe del Gobiern o de la República de Corea (WT/TPR/G/346):  
 
Pregunta 1. WT/TPR/G/346 • Corea; Informe de la República de Corea; 3 POLÍTICAS 
ECONÓMICA; 3.1 El Plan Trienal de Innovación Económica; 3.1.2 Reformas estructurales:  
 
Página 6, párrafo 3.7: El Gobierno de Corea h a adoptado varias medidas encaminadas a mejorar la 
eficiencia en las instituciones públicas. Se han introducido reformas estructurales en las 
instituciones públicas, entre las que figuran el ajuste para evitar la duplicación de funciones en las 
institucion es, la reducción de las actividades no esenciales y la mejora de la eficacia de la gestión. 
En mayo de  2015 se llevó a cabo una reforma del régimen de pensiones de los empleados 
públicos, seguida de una reducción de la deuda y de una reestructuración funci onal del sector 
público. Además, las instituciones públicas han adoptado un sistema de salarios anuales basados 
en el rendimiento22[3] y de topes salariales.23 Gracias a estos esfuerzos, la deuda pública total ha 
disminuido (del 220% en  2012 al 183% en 201 5), lo que ha permitido mejorar considerablemente 
la solidez financiera de las instituciones públicas. Por otra parte, el ahorro financiero derivado del 
sistema de topes salariales se utilizará para apoyar la creación de más de 8.000 puestos de 
trabajo en 2016 y 2017.  
 
Nota al pie de página 23: El sistema de topes salariales prevé la reducción gradual de los salarios 
a partir de determinada edad a cambio de una ampliación de a edad de jubilación. El sistema de 
topes salariales terminó de introducirse en tod as las instituciones públicas en diciembre de 2015.  
 
México pregunta 1:  ¿Podría Corea dar más detalles sobre la manera en que se reducen los salarios 
a partir de determinada edad, el sistema de topes salariales y la ampliación de la edad de 
jubilación?  
 
ANSWER : 
Labor market reform based on the Tripartite Agreement includes revision of labor laws, 
administrative measures, implementation measures onsite (for workers and employers). Although 
labor law revision bill is still pending at the National Assembly due  to strong resistance from the 
opposition party, there are various measures already implemented such as requirements of 
ordinary dismissal, administrative measures regarding changes of employment rule, and incentive 
measures, including tax breaks aimed at encouraging mutual cooperation between principal 
contractors and subcontractors. As a result, a sign of positive changes, for example, expansion of 
the wage peak system and efforts for the increase of youth employment are spreading.  
Led by the public secto r, the wage peak system is fully implemented in every public organization 
by the end of last year. Thanks to the system, a room is secured for additional employment of 
approximately 8,000 people for the next 2 years under a policy direction of increasing e fficiency in 
management of public organizations. Implementation of the wage peak system is still low in the 
private sector, but it is expanding led by large -sized companies.  
 
Pregunta 2. WT/TPR/G/346 • Corea; Informe de la República de Corea; 3 POLÍTICAS 
ECONÓMICA; 3.1 El Plan Trienal de Innovación Económica; 3.1.2 Reformas estructurales:  
 
Página 7, párrafo 3.10. En el sector de la enseñanza se han introducido reformas estructurales en 
las universidades para garantizar la calidad de la enseñanza superior en  Corea. Estas reformas, 
que tratan de reflejar la oferta y la demanda reales de los jóvenes que buscan empleo y de las 
empresas que contratan, se basan en el ajuste del número de estudiantes admitidos en las 
distintas facultades y en el aumento del número de centros de formación profesional que combinan 
la enseñanza técnica y académica. Asimismo, está previsto reducir las tasas de matrícula 
universitaria en respuesta al cambio de tendencia demográfica. La legislación promulgada 
recientemente para promover l as humanidades tiene por objeto desarrollar las aptitudes de los 
estudiantes y contribuir a reforzar la capacidad de las universidades en este ámbito.  
México pregunta 2:  ¿Podría Corea explicar de manera más detallada el funcionamiento de sus 
reformas al si stema de enseñanza y de empleo?  
                                                
3 El sistema de salarios anuales basados en el rendimiento, que actualmente sólo se aplica a los 
funcionarios de alto nivel, se ampliará para abarcar a los emple ados públicos de rango superior al de director 
adjunto.  WT/TPR/M/346/Add.1  
 
- 111 - 
 
  ANSWER : 
For more information about the structural reform of universities in Korea, please read below. 
Resource: "Education in Korea," published by the Ministry of Education & National Institute for 
International Education (2 016).  
 
Coping with the reduction in the number of students entering into universities, the government 
has carried out restructuring of universities. The original cause of this reduction comes from the 
constant reduction of school children. The government e valuates each university and decides to 
support it financially or to cut down its entrance quota. In addition, the government is 
implementing a policy for foreign students and adult learners in order to create new demands of 
higher education.  
 
In addition , there has been a mismatch between the supply and demand of labor market, in which 
industries experience a high number of issues concerning manpower shortage while youths face 
difficulties in transitioning from school to work. As a result, the government has supported 
universities to restructure the organization of undergraduate programs based on the prospective 
number of students, adjusting the entrance quota and establishing departments/majors relevant 
to the industrial demands. In particular, the govern ment has promoted 1) implementation of 
curriculum and field work linked to local industries, and support locals/industries/universities in 
training talented learners customized to industrial sectors, and 2) support of universities ' liberal 
arts competencie s, promoting the foundational academics of humanities and enhancing social 
adaptive abilities of students in the liberal arts stream.   
 
There are a few projects the government has implemented. First is "PRIME: Program for Industrial 
needs -Matched Educatio n" for the purpose of solving the mismatching of socially demanded 
manpower. This PRIME project, which is intended to foster human resources for industries by 
shifting the basic nature of university, has a remarkable feature. Simply put, it increases entra nce 
quota of potentially large demand and reduces the quota of relatively small demand. This is so 
called a "movement of quota ".  
 
Besides, the government is beginning a project named "CORE ", a reinforcing business for liberal 
arts. Currently, creativity s eems to be considered as the most valuable worth in our society. 
Accordingly, they recognize the significance of liberal art much more than before. The birth of this 
project is deeply related with such recognition. CORE is a project for intensive support t o liberal art 
that has been treated with disregard. It provides a necessary fund to liberal art education 
programs fitted to the characteristics of each university rather than adapted to the standardized 
programs. Academic -industrial cooperation brings up the talented manpower with practical senses!  
 
A project to strengthen the university students ' capacities of employment or of inauguration has 
successfully implemented by augmenting the linkage between industries and universities. The 
government has desig nated LINC (Leaders in Industry -university Cooperation) universities and 
supported them since 2012. LINC program has an objective of changing the existing educational 
system to the one fitted to the needs of industries. The ultimate goal of this project is  to lead the 
development of local communities. This LINC project has transformed the original constitution of 
universities into the customized one through the cooperation with the local industries. And also, 
this project has produced many talented workers armed with practical senses. Hereby, the 
universities are no longer the ivory towers but have strengthened their status as herbs of 
academic -industrial cooperation.  
 
Informe de la Secretaría (WT/TPR/S/346):  
 
Pregunta 3. WT/TPR/S/346 • Corea; Informe de la Secretaría; RESUMEN:  
Página 10, párrafo 5. En 2013 se llevó a cabo un ejercicio de reestructuración del Gobierno que 
afectó a varias instituciones públicas; por ejemplo, el Ministerio de Comercio, Industria y Energía 
(MOTIE), que formula y aplica las polí ticas comerciales e industriales, sustituyó al Ministerio de 
Economía del Conocimiento (MKE). Corea, que es un líder mundial en materia de gobierno 
electrónico, aplicó una Estrategia de Gobierno  Inteligente en el período 2011 -15. 
 
México pregunta 3:  ¿Podrí a Corea dar más detalles de su estrategia de Gobierno In teligente para 
el periodo 2011 -15? 
 WT/TPR/M/346/Add.1  
 
- 112 - 
 
  ANSWER  
The key objective of Korea 's smart e -government was to provide the world 's highest level of 
satisfaction with e -government services. The four major strategie s taken were : 1) Disclosure of 
public information and openness in policies and services, 2) Citizen -centered integration of 
services and channels, 3) Stronger collaboration between organizations and departments and 
enhanced sharing of information, 4) Deve lopment of environmentally sound low cost system.  
Four organizations were involved in pushing forward the st rategy of Smart Government 
2011-2015. The President 's Council on Information Strategies (e -Government Advisory 
Committee) initiated establishing the  e-goverment policies and provided long -term directions. The 
Ministry of Public Administration and Security (which is now the Ministry of the Interior) was 
responsible for preparing the action plan and designing the overall policy. Also, the Government 
Integrated Data Center (GIDC) planned and managed the e -government infrastructure and 
services and the National Information Society Agency (NIA) provided professional technical 
support and project management assistance.  
 
Pregunta 4. WT/TPR/S/346 • Corea; Info rme de la Secretaría; RESUMEN:  
Página 11, párrafo 12. Varias medidas, entre ellas, subvenciones, deducciones fiscales o 
préstamos a bajo interés, siguen apoyando la producción y el comercio de una gama de productos 
y estimulando las actividades de las pyme s, la investigación y el desarrollo, y la protección del 
medio ambiente. Aunque estaba previsto que las cláusulas de extinción pusieran fin 
automáticamente a los incentivos fiscales, muchos de ellos fueron prorrogados. Entre los 
principales beneficiarios d e esas medidas, especialmente generosas para las actividades de 
tecnología de la información, están las pymes, aunque una nueva directiva de  2015 tiene por fin 
reducir las garantías para las pymes maduras y concentrar la atención en las empresas nuevas y 
las establecidas recientemente; las que se enfrentan a problemas de acceso a las materias primas 
cuentan con el apoyo de un fondo. La agricultura sigue recibiendo una importante ayuda financiera 
conforme con las disposiciones pertinentes de la OMC. Sigue ha biendo compensaciones o ayudas 
para el ajuste destinadas a los agricultores y fabricantes que resultan perjudicados por acuerdos 
bilaterales de libre comercio.  
 
México pregunta 4:  ¿De qué manera propone Corea reducir las garantías para las pequeñas y 
media nas empresas (pymes) maduras y concentrar su atención en las nuevas y las establecidas 
recientemente?  
How does Korea proposes to reduce the guarantees for small and medium enterprises (SMEs) 
mature and concentrate their attention on new and newly establish ed? 
 
ANSWER:  
The Article 2 of Framework Act on SMEs and the Article 3 of Enforcement Decree of the Act defines 
SMEs based on average sales scale. Such criteria are applied differently according to sectors.  
 
Until 2014, the Framework Act on SMEs has defined  SMEs based on the number of workers, 
capital, or sales scale. However, the method that decides if a company is a SME by the size of the 
input of production factors such as the number of employees, had its limit in grasping the level of 
a company's output.  In particular, the "choosing one among several standards' system in which a 
company chooses a standard to be used for it to be decided as a SME had led to the Peter Pan 
syndrome, in which a company artificially refuses to grow and the problem of a grown c ompany is 
included as a SME. For solving these problems, the scope of small and medium business was 
revised to "the type to boost growth and create jobs" from "the production input type", therefore, 
the criteria is unified to the average sales in the last three years starting 2015.  
 
 
Pregunta 5. WT/TPR/S/346 • Corea; Informe de la Secretaría; 1 ENTORNO ECONÓMICO; 
1.3 Principales aspectos de la evolución de las políticas macroeconómicas; 1.3.3 
Políticas estructurales:  
 
Página 21, párrafo 1.11. El comercio y las reformas internas se consideran intrínsecamente 
vinculado. El Plan Trienal de Innovación Económic a del Gobierno, anunciado el 
25 de febrero  de 2014, tiene la finalidad de crear una economía basada en parámetros sólidos y en 
una innovación dinámica, que  mantenga un equilibrio entre la demanda interna y las WT/TPR/M/346/Add.1  
 
- 113 - 
 
  exportaciones (sección 2.4).4 Entre otras cosas, prevé la reforma del sector público, el fomento de 
ramas de producción creativas, la inversión en el futuro, una mayor presencia en los mercados 
extranj eros, la desreglamentación de los sectores de servicios más prometedores (atención 
sanitaria, enseñanza, finanzas, turismo y programas informáticos) y la creación de puestos de 
trabajo para estimular la demanda interna. Según el FMI, en 2015 los ejes prior itarios para 
aumentar la productividad eran los siguientes: promover la competencia en la atención sanitaria, 
la enseñanza y otras profesiones protegidas; eliminar gradualmente la ayuda pública a las pymes 
inviables (secciones 1.1, 1.2.1 y 3.4.2.1); y aten uar las rigideces del mercado laboral.5 
 
México pregunta 5:  ¿Cuáles son las rigidec es del mercado laboral coreano?  
 
ANSWER:  
Addressing the dual structure in labor market needs various policies and government -wide 
cooperation. Based on the Tripartite Agreem ent, relevant ministries jointly announced measures to 
promote employment through addressing labor market dualism in March 2016.  
The government is enhancing its efforts to provide various incentives such as financial support and 
tax breaks in order to enco urage large -sized companies to share its profits with SMEs and to 
mutually cooperate with subcontractors and affiliated companies. In addition, the government is 
carrying out labor reform to foster competency - and performance -based fair labor market so tha t 
regular workers increase, accordingly, improving employment structure.  
On top of that, a series of revision bills are submitted to reduce the dual structure and gaps in the 
labor market in order to foster fairer labor market.  
Labor market reform bills a im to provide legal protection and benefits necessary to youth, the 
middle -aged, and the unemployed who are suffering difficulties the most. The bills are pending at 
the National Assembly and the government is actively providing support to have it passed 
promptly.  
The following bills are submitted to the National Assembly in June 2016. 1) Work -Study Dual 
System Assistance Act  to expand Korean apprenticeship system; 2) Minimum Wage Act  to 
strengthen implementation of the minimum wage; 3)Occupational Safety and Health Act  to 
strengthen principal contractors' responsibility on safety and health of subcontract workers  
 
Pregunta 6. WT/TPR/S/346 • Corea; Informe de la Secretaría; 1 ENTORNO ECONÓMICO; 
1.5 Composición y estructura del comercio:  
Página 26, párrafo 1.23. Al mismo tiempo, el comercio de mercancías de Corea con los países de 
la región apenas ha sufrido cambios en lo que respecta a las exportaciones; en cambio, en la 
estructura de las importaciones ha perdido peso la región de Asia y el Pacífico, ya que  ha 
aumentado la proporción correspondiente a la Unión Europea, posiblemente por la entrada en 
vigor del ALC con este interlocutor (gráfico 1.2, cuadros A1.3 y A1.4, sección 2.6.2). A pesar de 
cierta fluctuación en la distribución geográfica del comercio, más del 66,2% de los intercambios 
totales de mercancías han seguido teniendo lugar con interlocutores comerciales del Foro de 
Cooperación Económica de Asia y el Pacífico (APEC) y el 12,6% con miembros de la ASEAN. Según 
se ha informado, la proporción de lo s intercambios realizados en el marco del ALC aumentó 
del 24,6% (2011) al 36% (2013) de los intercambios totales y probablemente habrá aumentado 
aún más tras la entrada en vigor de los ALC concertados con los Estados Unidos y el Canadá.47 Los 
principales i nterlocutores comerciales de Corea siguen siendo China, los Estados Unidos, la Unión 
Europea y el Japón. La proporción del comercio de mercancías con China ha aumentado, tanto las 
importaciones como las exportaciones, mientras que la correspondiente al Jap ón ha disminuido.  
Nota al pie de página 47: Las tasas de utilización de los ALC fueron del 78,4% para Chile, el 
80,5% para la AELC, el 38,5% para la ASEAN, el 43% para la India, el 80,9% para la UE, el 92% 
para el Perú, el 76,4% para los Estados Unidos y e l 70,2% para Turquía; cuando no se han 
utilizado ha sido principalmente por su desconocimiento. Presentación en línea de un funcionario 
del Servicio de Aduanas de Corea en la Conferencia de la OMA sobre el origen, con el título " Korea 
Customs' FTA Outreach  Program for Small and Medium -sized Enterprises ", 21 de enero de  2014.  
 
México pregunta 6:  ¿De qué manera evalúa y mide Corea las tasas de utilización (y las tasas de no 
utilización) de sus Acuerdos de Libre Comercio (ALC)?  
                                                
4 Korea.net , "President Park announces three -year plan for econ omic innovation", 
27 de febrero  de 2014. Consultado en: http://www.korea.net/NewsFocus/Policies/view?articleId=117839 ; 
información en lín ea del Gobierno de Australia, consultada en: http://dfat.gov.au/people -to-
people/foundations -councils -institutes/australia -korea -foundation/Pages/koreas -3-year-plan-for-economic -
innovation.aspx . 
5 FMI (2015).  WT/TPR/M/346/Add.1  
 
- 114 - 
 
  ANSWER : 
1) FTA UTILIZATION RATE S ARE PRODUCED SEPARAT ELY FOR IMPORTS AND EXPORTS WITH THE 
FORMULAS BELOW:  
FTA UTILIZATION RATE  FOR EXPORTS=  
 X 100%  
FTA UTILIZATION RATE  FOR IMPORTS=  
 X 100%  
 
2) APPLICABLE ITEMS SUB JECT TO FTAS INCLUDE  ONLY THE ONES WITH A CTUAL B ENEFITS 
FROM FTA UTILIZATION . (EXCLUDING TARIFF -FREE ITEMS AND NON -PREFERENTIAL ITEMS A S 
WELL AS ITEMS WITH H IGHER TARIFF RATES T HAN MFN TARIFF RATES ) 
 
Pregunta 7. WT/TPR/S/346 • Corea; Informe de la Secretaría; 2 RÉGIMEN DE 
COMERCIO E INVERSIÓN; 2.1 Intro ducción:  
Página 32, párrafo 2.1. La República de Corea ha seguido mejorando su entorno comercial desde 
el último examen realizado en 2012. En febrero de 2014, el Gobierno publicó su Plan Trienal de 
Innovación Económica, que abarca el período comprendido h asta febrero de 2017 y cuyo objetivo 
es mejorar los fundamentos económicos y aumentar la tasa de crecimiento del PIB. Corea, líder 
mundial en materia de gobierno electrónico, ha aplicado una Estrategia de Gobierno Inteligente 
entre 2011 y  2015. El Gobierno  también ha seguido mejorando su marco normativo a través de 
diversas iniciativas para reducir la carga de las actividades comerciales. Las medidas de 
democratización de la economía apuntaban a estrechar la brecha de la riqueza y promover la 
competencia le al entre las grandes y pequeñas empresas.  
 
México pregunta 7:  ¿Podría Corea explicar de qué manera las medidas de democratización de la 
economía apuntaban a estrechar la brecha de la riqueza y promover la competencia leal entre las 
grandes y pequeñas empre sas, tomando en cuenta el hecho consistente en que las grandes 
empresas generalmente cuentan con mayor capital, recursos humanos y medios para competir y 
asumir riesgos que las pequeñas?  
 
ANSWER : 
The realization of economic democratization intended to narr ow the wealth divide, as well as to 
reflect the actual market situation and improve regulations, were undertaken in the competition 
policy framework.  
 
Preguntas 8 y 9. WT/TPR/S/346 • Corea; Informe de la Secretaría; 2 RÉGIMEN DE 
COMERCIO E INVERSIÓN; 2.7 I nversión extranjera directa; 2.7.1 Panorama general:  
Páginas 46 y 47, párrafo 2.46. El Comité de Inversiones Extranjeras se encarga de regular la IED y 
está formado por representantes de distintos organismos y ministerios, incluidos el Ministerio de 
Estrategia y Hacienda y el Ministerio de Comercio, Industria y Energía. Los organismos de la 
administración central y local designan oficinas de promoción de las inversiones extranjeras para 
apoyar ese tipo de inversiones, mientras que el Organismo de Fomento d el Comercio y la Inversión 
de Corea (KOTRA) facilita y fomenta la IED (sección 2.3) y cuenta con una serie de centros de 
negocios de Corea (KBC) en todo el mundo. Su principal dependencia comercial, Invest Korea, 
funciona como ventanilla única para los inv ersores extranjeros. La Oficina del Mediador en asuntos 
de inversiones extranjeras (y su organismo de tramitación de reclamaciones), integrada en el 
KOTRA, atiende las reclamaciones concretas de los inversores extranjeros establecidos en Corea. 
El número d e casos gestionados por la Oficina aumentó de 383 en 2013 a 462 en 2015.6 
 
México pregunta 8:  ¿Qué funciones específicas de solución de diferencias realiza la Oficina del 
Mediador de Corea? ¿Es únicamente mediadora o también puede proponer soluciones a las  partes 
de la diferencia o emitir laudos arbitrales vinculantes?  
 
ANSWER : 
The role of the Office of the Foreign Investment Ombudsman is closer to a mediator. In 
accordance with Article 21 -3, of the Enforcement Decree of the Foreign Investment Promotion Act , 
a foreign investment ombudsman shall perform the following duties; 1. Investigation and handling 
                                                
6 Office of the Foreign Investment Ombudsman (2 016).  WT/TPR/M/346/Add.1  
 
- 115 - 
 
  of complaints of foreign investors and foreign -capital invested companies; 2. Preparation of policy 
measures for improving a foreign investment system and re commendation on the implementation 
thereof to the relevant administrative agencies and public agencies; 3. Other necessary matters 
for handling complaints of foreign investors and foreign -capital invested companies.  
México pregunta 9:  ¿En caso de que la Of icina del Mediador de Corea también pueda emitir laudos 
arbitrales vinculantes, de qué manera asegura a los inversionistas extranjeros su imparcialidad e 
independencia con respecto al Estado Coreano?  
 
ANSWER : 
The nature of the Foreign Investment Ombudsman is not a main body of the decision on issues. 
He/She collects and analyzes information concering the problems of foreign invested companies, 
and requests cooperation from and recommends implementation thereof to relevant administrative 
agencies, and also p roposes new polices to solve foreign investor 's grievances.  
 
Pregunta 10. WT/TPR/S/346 • Corea; Informe de la Secretaría; 2 RÉGIMEN DE 
COMERCIO E INVERSIÓN; 2.7 Inversión extranjera directa; 2.7.3 Incentivos a la 
Inversión Extranjera Directa (IED); 2.7.3. 4 Ayudas para suelo industrial:  
Página 51, párrafo 2.56. Con arreglo a la Ley de Fomento de las Inversiones Extranjeras, la Ley de 
Designación y Administración de Zonas de Libre Comercio y la Ley de Designación y 
Administración de Zonas Francas, el Gobiern o puede designar zonas de inversión extranjera, zonas 
de libre comercio y zonas económicas francas para atraer inversión extranjera (cuadro 2.5). Las 
zonas designadas para la IED pueden variar en función de la idoneidad para el empleo, las ramas 
de producc ión beneficiarias y los incentivos a la inversión (alquiler, fiscalidad, derechos de aduanas 
y donaciones en efectivo) (cuadro A2.2).  
 
México pregunta 10:  ¿Cuál es la diferencia de trato para los inversionistas extranjeros en cada una 
de las diversos tipos  de zonas (de inversión extranjera, de libre comercio y económicas francas 
para atraer inversión extranjera)?  
 
ANSWER : 
These three sites are planned for attracting foreign direct investment, but the main purposes or 
incentives to foreign investors are diff erent slightly. First, Foreign Investment Zones(FIZs) and 
Free Trade Zones(FTZs) are rental sites, but Free Economic Zones(FEZs) are planned complex 
sites to sold in lots. FIZs are rented to foreign -inveted companies only, but FTZs are rented to 
foreign -invested companies as well as dometic companies who export their goods more than 50% 
of their sales. The rental fee of FIZs and FTZs is lower than any other state or local government 
owned sites. Second, tax incentives to foreign -invested companies in three zones are almost 
same. The foreign -invested companies who are located in those zones can get 100% corporate tax 
reduction for 3 years and 50% tax reduction for 2 years. If you want to get more information, 
please refer to Table A2.2 of a Report by the secr etatiat.  
 
Pregunta 11. WT/TPR/S/346 • Corea; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.1 Introducción:  
Página 54, párrafo 3.6. Corea siguió manteniendo la opción de restringir o fiscalizar la exportación 
de ciertos produ ctos para asegurar un abastecimiento adecuado del mercado interno, con lo que 
posiblemente preste asistencia a la elaboración de esos productos. Entre 2008 y marzo de 2015, el 
arroz era el único producto sujeto a restricciones cuantitativas a la exportació n 
(recomendaciones), si bien en la práctica no han tenido efectos restrictivos del comercio. No hay 
en la actualidad restricciones cuantitativas a la exportación de arroz ni de ningún otro producto 
agrícola. Por otra parte, se mantienen subvenciones direct as a la exportación para reducir los 
costos de comercialización de ciertos productos agrícolas. Mediante un sistema de devolución se 
siguen reintegrando los impuestos en frontera sobre las materias primas utilizadas en las 
exportaciones. Se reembolsan los impuestos internos indirectos sobre las exportaciones, pero se 
conceden desgravaciones del impuesto sobre la renta solamente a empresas con inversión 
extranjera situadas en zonas de libre comercio. Los exportadores se benefician de seguros de 
crédito a la exportación, financiación y actividades de promoción que llevan a cabo instituciones 
estatales.  
 
México pregunta 11:  ¿Cuáles son los criterios que debe cumplir un producto cuya exportación 
pueda ser restringida o fiscalizada por Corea para asegurar un abas tecimiento adecuado del 
mercado interno?  
 WT/TPR/M/346/Add.1  
 
- 116 - 
 
  ANSWER : 
Kindly refer to the secretariat report, para 3. 126 regarding export licensing and restrictions.  
Preguntas 12 y 13. WT/TPR/S/346 • Corea; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR  MEDIDAS; 3.1 Introducción:  
Página 55, párrafo 3.9. Durante el período que abarca el examen se introdujeron varios cambios 
legislativos necesarios para la democratización de la economía y para reflejar la situación real del 
mercado y mejorar las reglamenta ciones en el marco de la política de competencia; las exenciones 
de cobertura sectorial siguen sin cambios. Se prohibió la participación cruzada (participación 
circular) en el capital entre filiales de un gran grupo empresarial, muchos de los cuales están 
controlados por familias ( chaebols ), pero la concentración del mercado sigue siendo relativamente 
elevada. Se alienta a las grandes empresas y a las pymes a suscribir voluntariamente un acuerdo 
de comercio leal y crecimiento conjunto. Se ha mejorado la pro tección del consumidor mediante el 
fortalecimiento del cumplimiento de las leyes aplicables a productos y áreas que afectan 
directamente a los consumidores, como los artículos de uso diario y el comercio electrónico. Se ha 
fortalecido la legislación sobre derechos de propiedad intelectual mediante enmiendas importantes, 
incluida la ampliación de la protección del derecho de autor durante la vida del autor más 70 años, 
entre otras cosas, para facilitar la aplicación de la visión de una "economía creativa" de l Gobierno. 
Se mejoró también la protección con la ampliación constante de los compromisos internacionales y 
otras mejoras en el cumplimiento.  
 
México pregunta 12:  ¿En qué consiste la prohibición de la participación cruzada (participación 
circular) en el c apital entre filiales de un gran grupo empresarial? ¿Consiste en que las filiales de 
una misma sociedad matriz o controladora ( "holding ") no puedan ser socias entre sí? ¿Deben tener 
éstas socios que no sean controlados por la misma sociedad matriz o contro ladora ( "holding ")? 
¿Cuál es la proporción mínima de partes sociales o acciones que esos socios deben tener en el 
capital social de las filiales?  
 
ANSWER : 
In a move to promote joint investment ventures between domestic and foreign companies, the 
Foreign I nvestment Promotion Act was amended in December 2014 to allow the establishment of a 
third-tier subsidiary of a parent company (to partially own shares), on the condition that it is a 
joint stock corporation with a foreign company. This represents a deregu lation of the Monopoly 
Regulation and Fair Trade Act, which prohibited second -tier subsidiaries of parent holding 
companies from owning stock in a second -tier company 's subsidiaries.  
México pregunta 13:  ¿En qué consisten los acuerdos voluntarios de comerc io leal y crecimiento 
conjunto suscritos entre las grandes empresas y a las pymes?  
 
ANSWER : 
Fair trade and shared growth agreement includes establishing voluntary fair trade compliance 
system, large companies 's support toward SMEs, and commitment for share d growth.  
 
Pregunta 14. WT/TPR/S/346 • Corea; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.2 Medidas que afectan directamente a las 
importaciones; 3.2.3 Aranceles; 3.2.3.6 Tipos arancelarios "en función del uso ": 
Página 68,  párrafo 3.44. Los insumos importados que se destinan a determinados usos pueden ser 
eximidos de derechos arancelarios "en función del uso" (artículo 83 de la Ley de Aduanas). Corea 
sigue utilizando los derechos arancelarios "en función del uso", los conti ngentes arancelarios 
autónomos y las concesiones en materia de derechos sobre los insumos como parte de la política 
industrial del país para fomentar algunas actividades manufactureras (secciones 3.2.3.5 y 
3.2.4.2). Desde 2012 se han utilizado tipos arance larios "en función del uso" como insumos en 
actividades como la siembra, la producción de piensos y la fabricación de semiconductores. No se 
ha podido obtener más información de las autoridades sobre este instrumento de política.  
 
México pregunta 14:  ¿De q ué manera demuestran los exportadores de productos destinados a 
Corea o los importadores en Corea a las autoridades coreanas que sus insumos tienen un uso 
determinado, conforme al artículo 83 de la Ley de Aduanas, con la finalidad de ser eximidos del 
pago de derechos arancelarios?  
 
ANSWER : 
An importer needs to demonstrate that their inputs have a specific use by submitting an 
application to the Korean customs house which includes the information of description, size, WT/TPR/M/346/Add.1  
 
- 117 - 
 
  quantity, usage, how and where to use, e tc. Then, the customs house will provide follow -up check 
for the importer as to whether the imported goods are used for the specific use.  
 
Pregunta 15. WT/TPR/S/346 • Corea; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.4 Me didas que afectan a la producción y al 
comercio; 3.4.6 Derecho de Propiedad Intelectual; 3.4.6.1 Propiedad Intelectual:  
Página 123, párrafo 3.205. De conformidad con la Ley de Marcas de Fábrica o de Comercio, no se 
aceptará el registro de indicaciones geog ráficas que sean iguales o similares a otras protegidas por 
acuerdos multilaterales o bilaterales; el material con que se hayan infringido indicaciones 
geográficas o marcas de fábrica o de comercio será confiscado, al igual que el equipo y los 
productos in fractores. En virtud de la Ley de Prevención de la Competencia Desleal y Protección 
del Secreto Comercial, se sanciona la utilización no autorizada de indicaciones geográficas. Las 
indicaciones geográficas extranjeras pueden registrarse de conformidad con los mismos 
procedimientos y criterios que las de mercancías nacionales y están protegidas por diversas leyes, 
como la Ley de Marcas de Fábrica o de Comercio y la Ley de Prevención de la Competencia Desleal 
y Protección del Secreto Comercial; reciben la mis ma protección que las indicaciones geográficas 
nacionales registradas. La Ley de Marcas de Fábrica o de Comercio prohíbe el registro de etiquetas 
que infrinjan indicaciones geográficas; también impide el etiquetado y la publicidad engañosos, por 
ejemplo me diante cualquier tipo de etiquetado o publicidad ambiguo o falso que pueda inducir a 
los consumidores a error en cuanto al lugar de origen del producto. La legislación en materia de 
marcas de fábrica o de comercio impide el registro de marcas con un "nombr e geográfico 
conspicuo"; en cambio, permite registrarlas como marcas geográficas colectivas. El titular de una 
marca colectiva de indicación geográfica tiene el derecho de usarla con carácter exclusivo e 
impedir que los terceros usen signos idénticos o sim ilares para productos idénticos cuando ello 
pueda dar lugar a confusión. Están prohibidas la importación y la exportación con indicaciones de 
origen falsas o indicaciones geográficas infractoras (Ley de Comercio Exterior).  
México pregunta 15:  De acuerdo a lo establecido en la Ley de Marcas de Fábrica o de Comercio 
¿Cómo proceden cuando una marca registrada con antelación hace alusión a un lugar de origen 
distinto al que en realidad se produjo el producto?  
ANSWER : 
The registration of trademark which is likel y to mislead consumers about the quality of goods or 
deceive consumers shall be refused. Further, even if such mark is registered, it can be invalidated 
by a third party 's invalidation action . WT/TPR/M/346/Add.1  
 
- 118 - 
 
  QUESTIONS FROM BRAZIL  
QUESTIONS REGARDING THE SECRETARIAT REPO RT 
 
Page 84 (Para 3.128) - Export subsidies  
 
The WTO report states that "Korea does not have export subsidy commitments; during the review 
period, it continued to use export subsidies for certain farm products under the provisions of 
Article 9.4 of the WTO  Agreement on Agriculture for developing countries but no recent data on 
the amounts involved were available from the authorities. These subsidies, which were last notified 
to the WTO Committee on Agriculture in 2010, totalled ₩32.68 billion (2008) and cov ered fruit, 
flowers, vegetables, kimchi, ginseng, livestock, grain and processed food, and traditional liquor. 
The subsidies were used to reduce exporters' marketing costs…"  
 
Questions:  
 
1 - When does Korea intend to notify the WTO of its most recent data regarding agricultural export 
subsidies?  
 
ANSWER : 
Korea is currently on the phase of finalizing and confirming its export subsidy notifications in 
accordance with Article 9.4 of the Agreement on Agriculture and plans to submit the notifications 
soon.  
 
2 - When does the Korean Government intend to implement Nairobi´s commitment to end all 
agricultural export subsidies?  
 
ANSWER : 
According to the timeframe set at the Nairobi Ministerial Decision, Korea will eliminate the export 
subsidies by 2023.  
 
 
Pages 89/90  (Para 3.148) - Tax incentives  
 
The WTO report states that "SMEs continue to benefit substantially from larger tax incentives than 
those generally available; for example, much larger tax credits for investment in technology and 
human resource development."  
 
Question:  
 
3 - What are the Korean criteria for a company to be classified as a SME? Are there regional 
differences within the country or is there a national rule/standard?  
 
ANSWER : 
The Article 2 of Framework Act on SMEs and the Article 3 of Enforcement Decree of the Act defines 
SMEs based on average sales scale. Such criteria are applied differently according to sectors.  
 
Until 2014, the Framework Act on SMEs has defined SMEs based on the number of workers, 
capital, or sales scale. However, the method th at decides if a company is a SME by the size of the 
input of production factors such as the number of employees, had its limit in grasping the level of 
a company's output. In particular, the "choosing one among several standards' system in which a 
company chooses a standard to be used for it to be decided as a SME had led to the Peter Pan 
syndrome, in which a company artificially refuses to grow and the problem of a grown company is 
included as a SME. For solving these problems, the scope of small and mediu m business was 
revised to "the type to boost growth and create jobs" from "the production input type", therefore, 
the criteria is unified to the average sales in the last three years starting 2015.  
 
 
 WT/TPR/M/346/Add.1  
 
- 119 - 
 
  QUESTIONS FROM JAPAN  
Report by the Secretariat (WT/TPR /S/346)  
 
2 TRADE AND INVESTMENT REGIME  
2.6 Trade Agreements and Arrangements  
2.6.1 WTO  
 
(Question 1: Page 35, Paragraph 2.31)  
According to the report by the Secretariat, Korea accords MFN treatment to all WTO Members, but 
Korea does not allow some categor ies of Japanese broadcasting contents such as drama and 
entertainment to be aired on terresterial broadcasting. We understand that such regulations are 
only imposed on Japanese broadcasting contents. Japan would like to ask for Korea's view on 
conformity b etween the regulations and WTO GATS Article II (Most -Favored -Nation Treatment).  
 
(Question 2:  Page 35, Paragraph 2.31)  
According to the report by the Secretariat, Korea accords MFN treatment to all WTO Members, but 
Korea grants benefit co -produced audiovi sual works with EU and France by Protocol on cultural 
cooperation in Korea EU FTA and a FILM CO -PRODUCTION AGREEMENT BETWEEN THE 
GOVERNMENT OF THE FRENCH REPUBLIC AND THE GOVERNMENT OF THE REPUBLIC AND THE 
GOVERNMENT OF THE REPUBLIC OF KOREA Signed on 27 O ctober 2006.  
We understand that Korea stipulates no limitation on Mode1 to Mode3 for MA and NT regarding 
"Motion Picture and Video Tape Production and Distribution Services Excluding Those Services for 
Cable TV Broadcasting in Audio Visual Services" in GAT S, so it seems difficult to give special 
benefit to co -produced audiovisual works with specific countries.  
Japan would like to ask for Korea's view on conformity between the above treaties and WTO GATS 
Article II (Most -Favored -Nation Treatment).  
 
ANSWER (1~2): 
Korea is fully in compliance with the relavant provision of WTO GTAs and Korea is welcome to 
discuss further if necessary.  
 
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.2 Measures Directly Affecting Imports  
3.2.8 Contingency measures  
 
(Question 3:  Page 66, Paragraph 3.65)  
In paragraph 3.65, it is said that the RTAs which Korea concluded contains a specific trade 
remedies chapter providing the possibility of excluding imports of products covered under the 
relevant bilateral agreement from the appreciat ion of WTO safeguard measures. Could Korea 
clarify whether there have been any cases where imports from Korea were excluded from an 
application of WTO safeguard measures pursuant to such provisions under the RTAs including 
which entered into force before 2 012? If any, could Korea identify the cases? With respect to 
bilateral safeguard measures provided under the RTAs, if Korea has ever imposed or being 
imposed a bilateral safeguard measure, please explain the measures, such as the product scope, 
the date of  measure being taken and the period of the measure.  
 
ANSWER : 
Korea has not imposed or being imposed any bilateral safeguard measures under the RTAs.  
3.2.8.1 Anti -dumping and countervailing measures  
 
(Question 4:  Page 66 -67, Paragraph 3.66)  
With regard to the sentence "Between 2012 and 2015, Korea completed 13 sunset reviews, of 
which 12 resulted in the extension of measures and 1 in termination; 3 measures were terminated 
without a review. " at paragraph 3.66, Japan would like to confirm the specific proce ss of the 
sunset review conducted by the investigating authority.  
 WT/TPR/M/346/Add.1  
 
- 120 - 
 
  ANSWER : 
Process of Sunset Review  
 
 
 
3.4 Measures Affecting Production and Trade  
3.4.6 Intellectual Property rights  
 
(Question 5:  Page 103 -104, Paragraph 3.195)  
Assuming the provisions in amended Patent Act effective as of January 1, 2016 seem consistent 
with the PLT, we would like to know if Korea is considering to conclude Patent Law Treaty ("PLT"). 
We also would like to know whether the amended Copyright Act provides equivalent protectio n to 
those in the Beijing Treaty on Audiovisual Performances ("Beijing Treaty"), and the status of 
preparation for the conclusion of the Beijing Treaty.  
 
ANSWER : 
Korean Copyright Act seem to provide the same level of protection with the Beijing Treaty, and  
with respect to its accession to the Treaty, Korea is conducting a very careful review.  
 
 
(Question6:  Page 103 -104, Paragraph 3.195)  
Korea is a signatory to the October 2011 Anti -Counterfeiting Trade Agreement (ACTA). Does Korea 
have a schedule to conclu de the ACTA shortly? If this is not the case, please explain Korea's view 
on the ratification thereof and currently which provisions of Korea's relevant laws and regulations, 
if any, are not in compliance with the provisions of ACTA.  
 
ANSWER : 
No plans as o f yet. More time is needed to review the related domestic laws.  WT/TPR/M/346/Add.1  
 
- 121 - 
 
  4 TRADE POLICIES BY SECTOR  
4.5 Manufacturing  
4.5.3 Shipbuilding  
 
(Question 7:  Page 132 -134, Paragraph 4.114)  
According to the report by the Secretariat, Korean government is trying to maintai n a level playing 
field between public and private entities. But it was reported by press that Korea Development 
Bank (KDB) and Export -Import Bank of Korea (KEXIM) decided financial aid of ₩4.2 trillion 
(US$3.7 billion ) to Daewoo Shipbuilding & Marine Engineering (DSME) last October. It was also 
reported that this public support was indicated by Korean government, while private financial 
institutions declined to provide new loan to such heav ily indebted shipyards.  
First, Japan would appriciate it that Korea would clarify if the public support to DSME was indicated 
by Korean government.  
 
ANSWER : 
KDB is DSME 's large shareholder whereas KEXIM is the shipyard 's largest creditor. Thus KDB and 
KEXIM make decision with respect to DSME, their debtor , on a voluntary manner. 
Korean  Government acknowledges that KDB and KEXIM 's decision to support DSME was 
commercially reasonable decision made based on an independent due diligence conducted by 
KPMG which  was then verified by PWC.  
 
Second, Japan would appriciate it if Korean government could provide its view on how 
compatibility between massive public financial aid to some heavily indebted shipyards and 
maintenance of a level playing field can be achieved . 
 
ANSWER : 
Korean Government respects KDB and KEXIM 's decision to support DSME as the shipyard 's largest 
shareholder and largest creditor respectively, based on their judgment that such action would 
maximize commercial profit and minimize loss. The Governm ent anticipates such decision would 
ensure financial stability of Korea.  
 
(Question 8:  Page 132 -134, Paragraph 4.116)  
According to the report by the Secretariat, Korean government is currently reviewing the policy 
related to the restructuring of the ship building sector.  
Japan would appreciate it if Korea could provide detailed information on what point of the 
restructuring is reviewed, with specific examples.  
 
ANSWER : 
Each shipbuilding company is consulting with its creditors based on market principles to voluntarily 
implement restructuring through  various  measures ..  WT/TPR/M/346/Add.1  
 
- 122 - 
 
  QUESTIONS FROM NEW ZEALAND  
 
 
REPORT BY THE WTO SECRETARIAT (WT/TPR/S/346)  
SUMMARY  
WT/TPR/S/346, paragraphs 6 and 18  
In the summary of the report, paragraph  6 states that Korea's " general t rade policy objective 
remains to build a free and open economy based on market principles ", howeve r, paragraph 18 
notes that the " agriculture sector remains heavily protected, its contribution to GDP (2.3%) was 
little more than its support (1.8%)... and th at "tariffs continue to be the main instru ment 
supporting domestic prices" .  
 
Questions :  
1. How does the significant support and protections provided for the agriculture sector align 
with Korea's objective of building " a free and open eco nomy based on market  principles" ?  
2. What plans does Korea have for reforming the agriculture sector, inclu ding the current tariff 
regime?  
 
ANSWER : 
(1-2) Korea 's agricultural support is operated in compliance with international rules including the 
WTO Agreement on Agriculture. Half of the food Korean people consume in every morning is 
imported from other countries which shows high level of agricultural market access. As a result, 
the large deficit of agricultural trade continues in Korea. Nonetheless, Korea has further liberaliz ed 
its agricultural market through FTAs with major trading partners in a bid to implement trade 
policies that is in line with the free market economy  
 
 
WT/TPR/S/346, paragraphs 14 and 3.116  
Paragraph 14 of the Summary of the Report states that despite the changes made as a result of 
the implementation of the revised WTO GPA, the share of foreign suppliers continued to fall during 
the review period. Foreign suppliers accounted for only 0.9% of the Public Procurement Service's 
total purchase operations in 201 5. Over a similar time period, the share of the Public Procurement 
Service's purchases from SMEs rose from 66.3% to 73.9% (paragraph 3.116) . 
 
Questions  
1. Could Korea please provide details of the preferential measures available to small and 
mediu m enterprise s (SMEs) under the " Act on Contract s to which the State is a Party" and 
"Act on SMEs Produ cts Promotion and Market Access" ? 
 
ANSWER : 
(State of Various Supporting Policies for SMEs ) 
 
"Product Purchase " 
 Purchase of the 204 designated competitive products for  small companies is conducted 
through limited competition among small companies  
 Single -source contract (low price) for supply of designated competitive products  
 Prevention of conglomerates from p articipating in bidding for supply of general goods worth 
less than notified price ( ₩210 million)  
 Preferential treatment given in bid awarding to those firms with "Excellent Performance 
Certification" or "INNO -BIZ"  
 Designation of "Excellent Procurement Products" and single -source contracts used to explore 
market s for SMEs and start -ups  
 Designation of "Joint Brand of Excellent Procurement" and single -source contracts used to 
promote collaboration for co -existence among SMEs like through technology exchange and 
transfer, and joint production.  
 Support for promotio n of SMEs' products through MAS contract (in the second competition)  
 For flexible contract implementation, advance payment and network loan system are set up  
 
"Construction Contract " 
 "List of Qualified Suppliers by Class" is established in which constructi on firms are classified 
by seven classes according to their construction capability. Under the system, firms with the 
right class (depending on size of cons truction) are exclusively entitled to participate in WT/TPR/M/346/Add.1  
 
- 123 - 
 
  construction bidding. Participation by firms wi th class above the required is prohibited(Less 
than 20% in equity participation).  
* Size of construction for Class 2 or below in which SMEs mainly participate: Earthwork - less than 
₩150 billion, building construction - less than ₩110 billion )  
 
2. Are these preferential measures available to international SMEs or are they restricted to 
domestic SMEs?  
 
ANSWER : 
Preferential treatment system for SMEs is only applicable to those in Korea . 
 
3. What is the percentage rate of foreign suppliers who bid for Public Procurement Service 
contracts in comparison to domestic suppliers?  
 
ANSWER : 
Statistics on number of international bidders as a percentage to entire bidders that participated in 
biddings in  Korea are not available. However, statistical data on contract volume of international 
bidders as a percentage to the entire volume is available (0.9% in 2012, 1.0% in 2013, 1.2% in 
2014, 0.9% in 2015))  
 
 
SUMMARY and 3.2.3.1 Applied MFN rate  
WT/TPR/S/346 , paragraphs 18 and 3.29  
Paragraph  18 of the summary of the Secretariat's report notes that "Domestic support continued 
to affect agricultural production and trade, and Korean consumers had to pay much higher prices 
than the world levels (1.9 times). Para graph 3.29 further states that " by according varied and 
substantial levels of protection to selected industries, especially agriculture, tariffs distort 
competition by favouring some activities " and that " reducing high tariffs (mainly out -of-quota 
agricultu ral duties) would improve Korea's resource a llocation and national welfare…"  
 
Question : 
1. Given the current negative impact of trade distortive domestic support on Korea's 
agricultural production, trade and national welfare, what plans does Korea have to mov e to 
less distortive forms of domestic support?  
 
ANSWER :  
Trade distorting agricultural support in Korea is operated in compliance with WTO rules, and is 
implemented to cope with difficulties in agriculture such as aging population, a large ratio of small 
size farmers, and an income gap between rural and urban areas. Nonetheless, Korea has 
continued its efforts to reform agricultural policies despite poor circumstances in agriculture.  
Since the Uruguay Round was concluded (in 1993), Korea has been adopting trade policies only, 
which are allowed under the WTO regime. Also, tariff rates are being reduce d through each FTA 
negotiation.  
 
 
(2) TRADE AND INVESTMENT REGIME, (3) TRADE POLICIES AND PRACTICES BY 
MEASURE  
2.6.1 WTO and 3.3.3 Export subsidies  
WT/TPR/S/34 6, paragraphs 2.35 and 3.128  
Paragraph 2.35 of the Secretariat's report notes the "Korea has submitted a number of 
notifications to the WTO during the review period (Table A2.1), although notifications in certain 
areas (e.g. government procurement, and exp ort subsidies, special safeguards and domestic 
support in agriculture) have been subject to long submission gaps. The Government plans to 
submit notifications to the WTO in the areas with notificati on gaps before the end of 2016."  
Howev er, paragraph 3.128 notes that " at the time of the previous Review, the authorities indicated 
that data on export subsidies from 2008 onwards were to be notified in the course of 2012, though 
no notification had been submitted as of June 2016…"   
 
Question : 
1. New Zealand welcome s Korea's intention to bringing all its notifications up to date by the 
end of 2016, and looks forward to the transparency this will provide. Given Korea's plan, at WT/TPR/M/346/Add.1  
 
- 124 - 
 
  the time of the previous review, to notify data on export subsidies did not eventuate, what  
steps is Korea taking to ensure that the required notificatio ns will be submitted this year?  
 
ANSWER : 
Korea is currently on the phase of finalizing and confirming its export subsidy notifications in 
accordance with Article 9.4 of the Agreement on Agricult ure and plans to submit the notifications 
soon.  
 
 
3.4 Measures Affecting Production and Trade  
3.4.2 Financial assistance  
3.4.2.2 Other subsidies  
WT/TPR/S/346, paragraph 3.161  
Paragraph 3.161 of the Secretariat's report says tha t "Korea has notified seve ral direct support 
programmes to the WTO Committee on Subsid ies and Countervailing Measures"  covering the 
period 2013 -14. The 22 subsidy schemes notified include "grants, tax concessions or concessional 
loans… " used to assist a range of agricultural' and o ther sectors.  
 
Question : 
1. When Korea updates its export subsidies notification and domestic support for agriculture 
notification, will these include data on relevant subsidy schemes that assist agriculture as 
identified in your most recent Subsidies and Co untervailing Measures notification?  
 
ANSWER : 
Agricultural supports notified to Committee on Subsidies  will be also notified to Committee on 
Agriculture, including foodgrain management program, support for marketing and promotion of 
agricultural and livesto ck products, support for livestock products.  
 
 
(3) TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Introduction, 3.2.3.3 "Flexible" Tariffs  
WT/TPR/S/346, paragraphs 3.2, 3.3, 3.34  
Paragraph 3.2 of the Secretariat's report notes that "Although most tariff line s are ad valorem , and 
therefore transparent, the tariff in volves a multiplicity of rates",  and that the complexity of border 
taxation is exacerbated by "tariff concessions or drawbacks [required] to ensure that tariffs on 
intermediate inputs do not become taxes on exports ". Further, paragraph 3.34 o utlines Korea's 
application of "flexible tariffs"  which include adjustment and seasonal duties, autonomous tariff 
quotas and "usage" tariffs as well as safeguard and special safeguard duties, and states that the 
"system allows the authorities to increase or decrease certain tariffs at their discretion providing 
considerable scope to encourage or discourage imports of particular items ..."  
 
Question s: 
1. Has Korea considered simplifying the current border taxation reg ime, including by ending 
the use of " flexible tariffs " and other mechanisms?  
2. If not, why not?  
 
ANSWER(1~2) : 
Korea already signed FTAs with a number of trading partners and Korea is also under several FTA 
negotiations with other countries. In this regard,  Korea plans to realign our overall tariff regime 
and reduce tariff rates at some point where korea concludes the ongoing negotiations of FTAs and 
RTAs.  
 
 WT/TPR/M/346/Add.1  
 
- 125 - 
 
  3.2 Measures Directly Affecting Imports  
3.2.4 Tariff quotas  
3.2.4.1 Agricultural tariff quotas  
WT/TPR/S/346, paragraphs 3.3, 3.8, 3.50, 3.51  
Paragraph 3.3 notes a large proportion of tariff -rate quotas are persistently unfilled, and that 
"other measures, such as autonomous tariff quotas that selectively reduce tariffs on inputs, are a 
potential impedim ent to efficient resource use and add to tariff complexity and uncertainty ". 
Paragraph 3.51 goes on to say that "in some cases, the administering agency is owned or 
controlled by domestic producers competing with the imported i tem, and that " credible impor t 
administration would require that directly interested parties are not directly involved in controlling 
imports. " 
 
Question : 
1. Given a large proportion of Korea's tariff -rate quotas are persistently unfilled and credible 
quota administration requires that d omestic producers not be involved in controlling imports, 
while Korea has industry organisations administer some quotas, how does Korea ensure 
conflicts of interests are effectively managed?  
 
ANSWER : 
Domestic producers that administer tariff quotas do not  directly compete with the imported items 
but rather are in a complimentary relationship with them, since they are also distributers and 
processors who handle both imported and domestically produced agricultural products.  
The producers are administering ta riff quotas in order to use imported items for processing, and 
those producers are often the only consumers of some TRQ products, including breeding fowls, 
birds' eggs, breeding pigs, breeding cattle, and seedlings.  
 
2. To what extent does quota administratio n by industry groups contribute to under -fill? 
 
ANSWER : 
TRQ fill rate are largely determined by domestic demand and TRQ administering methods or 
agency do not have much effect on fill rates.  
For example, fill rates for rye, oats, and ground -nuts are 100% e ven though producer 
organizations such as NACF administer TRQ for those products, whereas TRQs administered by 
non-producer agencies such as aT on a first -come first -served basis, such as oranges, shows a low 
level of fill rate.  
 
 
3.2 Measures Directly Aff ecting Imports  
3.2.9 Standards and other technical requirements  
3.2.9.1 Standards, testing, and certification  
WT/TPR/S/346, paragraph 3.75  
Paragraph 3.75 of the Secretariat's report notes "At April 2016, 19,880 (97%) of [Korean 
Industrial Standards] had been harmonized with correspondi ng international standards…" 
Non-harmonized standards, i.e. those that are either unique to Korea, with no corresponding 
international norm (e.g. for kimchi), or cannot be harmonized because of their link to other 
domestic r egulations, remain in place; no information on developments on "Korea -specific" 
standards since 2012 was available from the authorities. Roughly 3% (2.5% in 2010) of [Korean 
Industrial Standards] have been established without any reference to international  standards.  
 
Question : 
1. In instances where Korean industrial standards cannot be harmonized with existing 
international standards "because of their link to other domestic regulations ", is Korea 
considering changes that will allow for harmonization with int ernational standards?  
2. If not, why not?  
 
ANSWER(1~2) : 
The number of KS which is not harmonized with international standard "becasue of their link to 
other domestic regulations " is extremely low. For the future, Korea will gradually make KS to be 
harmonized  with international standard.  
 
 WT/TPR/M/346/Add.1  
 
- 126 - 
 
  3.2.9.1.2 Food, health -related and other measures  
WT/TPR/S/346, paragraph 3.77  
Paragraph 3.77 of the Secretariat's report notes that l egislative responsibility for regulating food 
safety and quality remains divided between s everal ministries. The Ministry of Food and Drug 
Safety (MFDS) regulates food safety (including foods of plant, animal and aquatic origin), whereas 
the Ministry of Agriculture, Food and Rural Affairs (MAFRA) deals with animal and plant health 
(including im port quarantine measures for animal, livestock products and plants).  
 
Question:  
1. Given responsibility for regulating food safety and quality is divided between different 
ministries, what measures has Korea taken to ensure its import system for food products  is 
efficient and avoids duplication?  
 
ANSWER : 
The Special Act on Imported Food Safety Control stipulates that any person who files an import 
declaration of livestock products shall attach a health certificate for export issued by the 
government of an exp orting country according to the form, etc. on which it has consulted with the 
Ministery of Food and Drug Safety.  
The Korean Ministry of Food and Drug Safety is responsible for food safety and requires the health 
certificate for export agreed upon between t he countries. On the other hand, the Korean Ministry 
of Agriculture, Food and Rural Affairs is responsible for animal disease quarantine and requires an 
export quarantine certificate. Exporters should submit original and duplicated copies of health 
certifi cate to the MFDS and export quarantine certificate to the MAFRA.  
 
2. Has Korea considered developing a single portal for receiving government to government 
official assurances?  
 
ANSWER : 
Regarding safety management of harmful materials(pesticide residue, heavy  material, radiation, 
etc.), MFDS is in charge of imported food products while MAFRA is in charge of domestically 
produced agricultural products. Therefore, administrative process for imported food is centralized 
on MFDS. Though, registration of country of  origin is managed by MAFRA, so MAFRA and MFDS are 
coordinating through consultations to avoid duplicative administrative process.  
Amendment of relevant laws and preparation of relevant budget should be discussed first in order 
to develop a portal for exch ange of electronic certicates between governments.  
 
 
3.2.9.2 Sanitary and phytosanitary measures  
 
WT/TPR/S/346, paragraph 3.91  
Paragraph 3.91 of the Secretariat's report notes that Korea's imported food regulations have been 
consolidated into "a Special Ac t on Imported Food Safety Management ", which amongst other 
matters requires all foreign food facilities and establishments to be registered by the MFDS.  
Question:  
1. What enhanced public health benefits does Korea anticipate arising from the registration of 
all foreign food facilities?  
 
ANSWER : 
Foreign facility registration scheme intends to ensure a safer environment which provides Korean 
people with safer imported food, and it is expected to contribute to the public health too.  
 
 
3.2.9.2.3 Transparency  
 
WT/T PR/S/346, paragraph 3.103  
Paragraph 3.103 of the Secretariat's report notes that b etween January 2012 and mid -June 2016, 
161 notifications were submitted under the WTO Agreement on Sanitary and Phytosanitary 
Measures (the SPS Agreement).  WT/TPR/M/346/Add.1  
 
- 127 - 
 
  Question:  
1. In order  to improve transparency and better facilitate consultation, has Korea considered 
providing the draft proposals submitted in its notifications in languages other than Korean?   
 
ANSWER : 
To the extent that the given environment allows, Korea will exert all i ts efforts to translate draft 
proposals  in Korean into a WTO official language and provide them to member countries to comply 
with transparency obligation.  
 
 
(4) TRADE POLICIES BY SECTOR  
4.2 Agriculture and Livestock  
4.2.2.1.1 Tariffs and tariff quotas  
WT/TPR/S/346, paragraph 4.10  
Paragraph 4.10 of the Secretariat's report notes that "in January 2016, MAFRA presented 
"Measures to boost rural economy and export by transferring agr iculture into the 6th industry""  
which include expanding exports.  
 
Question : 
1. Can Korea provide further details of initiatives aimed at expanding exports under this 
programme?  
 
ANSWER : 
Export promotion measures in the program include R&D and promotion of agri -food for export, 
information sharing of foreign markets and resolving diffi culties faced in the field.  
 
 
4.3 Fisheries  
4.3.3 Domestic support  
WT/TPR/S/346, paragraph 4.55  
It is noted in section 4.3, paragraph 4.55 of the Secretariat's report that Korea provides a variety 
of forms of financial support for its fisheries sector. Tab le 4.9 provides more detail regarding the 
nature and quantum of the financial support programmes.  
 
Questions  
1. can Korea identify the fisheries affected by its support programmes:  
- by geographical area (e.g. territorial sea, EEZ, high seas), and;  
- the spec ies affected by the programmes(e.g. both target and by -catch species).  
2. Can Korea confirm the primary objectives of the support programmes, and the extent to 
which the programmes are delivering on those objectives?  
ANSWER (Q.1, 2):  
Most of the fisheries supp ort programmes are not provided according to the geographical area or 
species, thus, the identification of the fisheries affected by geographical area or species is difficult. 
However, fractions of the supports are provided according to coastal or overseas  deep-sea 
fisheries. The objectives of the support programmes are not quantitative, thus, the exact 
attainment of the goal is difficult to evaluate. For instance, the primary objective of the support 
programmes is to pursue sustainable operation of the fis heries industry through supports such as 
modernization of old distant -fishing vessels and its equipment for the safety of the crew and 
development of aquaculture to switch to fish farming.  
3. UN SDG Target 14.6 calls on governments by 2020 to prohibit certain  forms of fisheries 
subsidies which contribute to over -capacity and overfishing, and eliminate subsidies that 
contribute to IUU fishing, and refrain from introducing new such subsidies. What initiatives 
does Korea have in place to implement that target, in cluding the standstill commitment ?  
ANSWER (Q.1, 2):  
Korea plans to gradually reduce and abolish the subsidies which contribute to overfishing and 
overcapacity, and maintain the ones which are necessary for the sustainable use and development 
of fisheries resources.  
4. Can Korea provide details on the measures it has taken to ensure that the support and 
modernisation of old distant -fishing vessels and its equipment  do not result in fishing WT/TPR/M/346/Add.1  
 
- 128 - 
 
  over-capacity in the distant water fishing fleet, taking into account t hat production from 
distant waters increased by 19% from 2013 to 2014?  
5. Can Korea provide details on the measures it has taken to ensure that support for vessel 
decommissioning results in the permanent decommissioning of vessels and prevents them 
from enter ing a different fishery?  
6. Can Korea provide details on the measures it has taken to ensure that the support for 
management of distant water fisheries does not result in fishing over -capacity in the 
distant water fishing fleet, taking into account that produ ction from distant waters 
increased by 19% from 2013 to 2014?  
 
ANSWER (4~6)  
Replacement and modernization of old distant -fishing vessels and its equipment project pursues to 
prevent safety accidents of fishing ship crew by replacing over 21 -years -old distan t-fishing vessels 
and it does enhance the capacity by reinforcing the facilities.  
The decommissioned vessels are permanently dismantled, thus it cannot enter a different fishery.  
The increased production between 2013 and 2014 was due to increased populati on of squid 
species followed by increased catch in the squid items, however, replaced new vessels by this 
project are not for squid fishing operation, thus, there is no relevance between the two.  
 
 
4.4 Energy  
4.4.4 Coal  
WT/TPR/S/346, paragraphs 4.61, 4.62,  4.90 and 4.91  
Paragraphs 4.61 and 4.62 of the Secretariat's report note that Korea's "Energy Vision 2030" aims 
to reduce energy intensity, with three basic focuses: energy security, energy efficiency, and 
environmental friendliness. In 2008, the Basic Ene rgy Law was enacted to reduce energy intensity. 
In 2013, the second Energy Master Plan 2013 -35 was announced, aiming at reducing energy 
consumption by 13% by 2035, through measures in areas such as demand management, 
establishment of a generation system, e nvironment protection and public safety, energy security 
and stable supply. The overall energy saving goal for 2035 is nearly 34 Mtoe, across various 
sectors. The Government plans to rely more on environmentally friendly new and renewable 
energy such as ph otovoltaic energy and wind power energy (increasing their share from 3.9% in 
2014 to 11% by 2035), and reduce its reliance on fossil fuels.  
To reach the target, the Government is to follow the following steps: improving energy efficiency 
and reducing energ y consumption; increasing the supply of clean energy and reducing the use of 
fossil fuels; boosting the green energy industry; and ensuring that Korean citizens have access to 
affordable energy.  
Paragraphs 4.90 and 4.91 also note that coal is currently the  cornerstone of the power system in 
Korea, accounting for 31% of total primary energy supply, and 40% of electricity generation. 
However, subsidies for coal production are to be terminated by 2020, and as these subsidies tend 
to distort resource allocation  and encourage excessive consumption of coal, the Government may 
consider other measures to support low -income groups.  
 
Questions  
1. New Zealand welcomes Korea's target to increase renewable energy supply and 
decrease its reliance on coal. We understand that Korea intends to phase out its 
coal briquette consumer subsidy by 2020 in addition to the coal production 
subsidy, and in this light, has Korea considered utilising the G20 or APEC peer 
review process for reform of fossil fuel subsidies as a mechanism for reviewing its 
fossil fuel policies and accessing expert advice?  
2. Could Korea elaborate on possible targeted measures to support low -income 
groups that would not incentivise coal consumption?  
 
ANSWER(1~2) : 
In the plan Korea submitted in 2010 to abolish its fossil fuel subsidies included support funds for 
coal production stabilization and briquette making. At that time, the briquette coupon was 
excluded since its purpose is to reduce the burden of heating costs on low -income families in 
winter time.  
 WT/TPR/M/346/Add.1  
 
- 129 - 
 
  QUESTI ONS FROM COLOMBIA  
Informe de la Secretaría WT/TPR/S/346  
 
RESUMEN  
 
El párrafo 9 y el párrafo 3.4 del informe de la Secretaría indican que: Párrafo 9…" En cuanto a la 
valoración en aduana, se introdujeron leyes que permiten la aplicación conjunta de un mecani smo 
de fijación previa unilateral del precio y un sistema de valoración aduanera previa . Continuaron las 
actividades para ayudar a las empresas a aprovechar, entre otras ventajas, las preferencias 
comerciales de los ACR y los ALC, sujetas a diversas y comp lejas normas de origen ." 
 
 
3. POLÍTICAS Y PRÁCT ICAS COMERCIALES, PO R MEDIDAS  
3.1 Introducción  
 
Párrafo 3.4…"Continuaron las actividades de promoción de los ACR y ALC con el fin de ayudar a las 
empresas a utilizar preferencias comerciales sujetas, entre otr as cosas, a normas de origen 
diversas y complejas."  
 
1. Podría el Gobierno de Corea explicar con mayor detalle ¿Cuáles son las actividades 
que realiza para ayudar a las empresas a aprovechar las preferencias comerciales 
de los ACR y los ALC, en particular lo relaci onado con las normas de origen?  
 
ANSWER :  
1) Through the import/export business support centers, the Korea Customs Service (KCS) provides 
tailored consulting to companies. Working level education for employees of the companies is 
provided on a regula r basis through the FTA Academy, etc. 2) The KCS developed and 
disseminated the origin management system ｢FTA-PASS｣ for SMEs.  
 
2. ¿Cómo evalúan la eficacia de esas actividades y cuáles han sido sus resultados?  
 
ANSWER : 
Consulting is carried out for about 550 companies and 5,000 employees per year. Through the 
satisfaction survey on the consulting or education, the result assessment is carried out and 
feedback is given.  
 
 
RESUMEN  
 
El párrafo 11 y el párrafo 3.6 del informe de la Secretaría indican que: Párrafo 11… " Por otra parte, 
se mantienen subvenciones directas a la exportación para reducir los costos de comercialización de 
ciertos productos  agrícolas . Además del programa de devolución de aranceles, se desgravan 
derechos especiales de consumo y el IVA en la frontera. Por otra parte, se conceden exenciones 
del impuesto sobre la renta a las empresas ubicadas en zonas de libre comercio. Los exportadores 
siguen beneficiándose de seguros de crédito a la exportación, financiación y actividades de 
promoción que llev an a cabo instituciones estatales ." 
 
 
3. POLÍTICAS Y PRÁCT ICAS COMERCIALES, PO R MEDIDAS  
3.1 Introducción  
 
Párrafo 3.6… "Mediante un sistema de devolución se siguen reintegrando los impuestos en frontera 
sobre las materias primas utilizadas en las exportaci ones…. Los exportadores se benefician de 
seguros de crédito a la exportación, financiación y actividades de promoción que llevan a cabo 
instituciones estatales."  
 
3. En algunos acuerdos comerciales de Corea se ha acordado o confirmado que no 
hay exportaciones  de mercancías agrícolas subsidiadas entre las partes. En los dos 
párrafos anteriores así como en muchos otros en este examen de política comercial 
se citan las diversas formas de subvenciones con las que cuentan los agricultores 
coreanos. Podría el Gobier no de Corea indicar ¿Qué mecanismo aplica para cumplir WT/TPR/M/346/Add.1  
 
- 130 - 
 
  lo pactado en los ACR o ALC de no exportar bienes del sector agropecuario que 
hayan recibido subvenciones directas o indirectas?  
 
ANSWER : 
Korea does not provide export subsidies on agriculture except f or the export subsidies under the 
article 9.4 of the AoA which Korea can provide until 2023 based on Hong Kong and Nairobi 
Ministerial decision.  
 
 
3.3.3 Subvenciones a la exportación  
 
El Párrafo 3.128 y el párrafo 4.26 del informe de la Secretaría indican que: Párrafo 3.128… "Estas 
subvenciones, notificadas por última vez al Comité de Agricultura de la OMC en 2010, ascendieron 
en total a 32.680 millones de won (2008) y abarcaron los siguientes productos: frutas, flores, 
legumbres y hortalizas, kimchi, ginse ng, ganado, cereales y alimentos elaborados, y bebidas 
alcohólicas tradicionales. Las subvenciones se destinaron a reducir los costos de comercialización 
de los exportadores y están exentas de los compromisos de reducción asumidos en la OMC. 
Cuando se real izó el examen anterior, las autoridades indicaron que los datos sobre las 
subvenciones a la exportación para 2012 y años posteriores se facilitarían en 2012, pero en junio 
de 2016 no se había presentado ninguna notificación; han comunicado ahora su intenci ón de 
notificar dichas subvenciones en el transcurso de 2016"  
 
4.2.2.1.3. Restricciones a la exportación y programas de subvenciones a la exportación  
 
Párrafo 4.26... "Corea presentó su última notificación relativa a su programa de subvenciones a la 
expor tación de determinados productos agrícolas en 2010, para los años 2005 a 2008. En 2008, 
las subvenciones a la exportación alcanzaron un total de 32.680 millones de won, y comprendían 
frutas (10.850 millones), flores (5.390 millones), hortalizas y legumbres  (11.020 millones), kimchi 
(3.030 millones), ginseng (920 millones), ganado (1.260 millones), cereales y alimentos 
elaborados (80 millones), y licores tradicionales (130 millones).7 Estas subvenciones se utilizaban 
para reducir los costos de comercializaci ón de los exportadores, y están exentas de compromisos 
de reducción en la OMC"  
 
4. Entendemos que Corea es un país con un nivel muy alto en la aplicación de las 
tecnologías de la información en toda la estructura del Gobierno. Por ello, y con el 
fin de mejora r en el proceso de transparencia en que nos hemos comprometidos 
todos los países de la OMC, invitamos al Gobierno de Corea a presentar las 
notificaciones atrasadas, con el fin de contar con información actualizada y de 
primera mano, para el p roceso de nego ciación en curso.  
 
ANSWER : 
Korea is currently on the phase of finalizing and confirming its export subsidy notifications and the 
notifications will be submitted soon.  
 
 
3.4.2.2. Otras subvenciones  
 
1.1.  El párrafo 3.166 del informe de la Secretaría indica que.. . "En virtud de la Ley de Ayuda para 
el Ajuste Comercial, desde abril de 2007 los fabricantes coreanos afectados negativamente por un 
acuerdo bilateral de libre comercio pueden obtener una compensación del Ministerio de Comercio, 
Industria y Energía (MOTIE ) y del Ministerio de Trabajo (MOL) mediante préstamos, inversiones y 
apoyo para la colocación de personal. Se adoptan medidas para facilitar el ajuste de las industrias 
si las ventas o la producción disminuyen más de un 10% (desde 2012; este porcentaje se  había 
reducido del 25% al 20% en 2011), o bien si, teniendo en cuenta los ingresos de explotación, el 
número de empleados, la tasa de explotación, el inventario, etc. de la empresa, se considera que 
el daño es equivalente a más del 10% durante un período prolongado por efecto de la competencia 
de las importaciones. Las autoridades no han facilitado datos sobre la ayuda para el ajuste 
comercial."  
 
                                                
7 Documento G/AG/N/KOR/42 de la OMC, de 4 de octubre de  2010.  WT/TPR/M/346/Add.1  
 
- 131 - 
 
  5. ¿Podría el Gobierno de Corea explicar con más detalle el mecanismo que utiliza 
para determinar cuáles son los f abricantes afectados negativamente por un 
acuerdo comercial derivado de un acuerdo bilateral de libre comercio?  
 
ANSWER : 
Refer ANSWER 6, 7  
 
6. En este párrafo se menciona que el MOTIE y el MOL compensan con préstamos e 
inversiones a los fabricantes coreanos a fectados negativamente por un acuerdo 
bilateral de libre comercio. ¿Podría el Gobierno de Corea explicar con mayor detalle 
los programas, formas, mecanismos y montos en que éstos Ministerios hacen tales 
compensaciones préstamos?  
 
ANSWER : 
When a corporate applies loan, MOTIE validates whether the corporate is affected by FTA or not, 
based on the results of damage level evaluation and conformity assessment for a trade adjust 
proposal. MOTIE supports manufacturers within the limit of respectively 4.5 mil doll ars of facility 
capital loan and 0.5 mil dollars of working capital loan per corporate.  
 
7.  ¿Todos los fabricantes que sean calificados como afectados negativamente por un 
acuerdo comercial derivado de un acuerdo bilateral de libre comercio reciben la 
compen sación mencionada en este párrafo? En caso negativo, ¿Cómo seleccionan 
o califican el nivel de afectación?  
 
ANSWER : 
The level of affectation is determined as per the sales revenue or production quantity over 10% 
decreased or not on a YOY basis, otherwise t he damages of operating profit, employment, 
operating ratio, inventory and etc. are same as the level.  
 
 
RESUMEN  
 
El Párrafo 8 y el párrafo 3.34 del informe de la Secretaría indican que: Párrafo 8… " Corea ha 
consolidado el 90,1% de sus líneas arancelarias;  es decir, el 99,6% de las líneas agrícolas 
(excluidas las algas y las carnadas para la pesca) y el 88,6% de sus líneas no agrícolas 
(definiciones de la OMC) . La diferencia de 4,4 puntos porcentuales entre los promedios de los tipos 
arancelarios consolidad os y los tipos arancelarios NMF aplicados añade cierto grado de 
imprevisibilidad al régimen arancelario y deja margen a las autoridades para aumentar los tipos 
aplicados dentro de las consolidaciones . Corea ha seguido utilizando esa diferencia para aplicar  
derechos NMF más elevados (por ejemplo, derechos de ajuste), denominados "aranceles flexibles", 
que, en opinión de las autoridades, se hallan dentro de los límites consolidados en la OMC; la 
cobertura de productos de los "aranceles flexibles" se redujo de  216 partidas (al nivel de seis 
dígitos del SA) en 2012 a 145 partidas en  2016." 
 
 
3.2 Medidas que afectan directamente a las importaciones  
3.2.1  Procedimientos aduaneros  
En el párrafo 3.20 se menciona que "los artículos decomisados en las oficinas de adua nas se 
subastan electrónicamente después de su entrega a una empresa encargada de la venta mediante 
ofertas electrónicas, Internet o exhibición de artículos. Las autoridades han indicado que estos 
incluyen objetos de oro, joyas, cosméticos, prendas de vest ir, bebidas alcohólicas importadas y 
relojes."  
 
8. Podría Corea compartir cómo funcionan las subastas electrónicas? La empresa 
encargada de las subastas es parte del gobierno coreano? Cuáles son los requisitos 
para que las personas puedan participar en estas subastas?  
 
ANSWER : 
When seized items are forfeited as a result of court rulings or notifications by the Customs, the 
items for sale are commissioned to and sold by a private contractor or an agent.  
The entity in charge of auction is a special corporation o r non -profit organization (entity) which is 
established in accordance with individual laws with the fulfillment of the criteria for facilities and WT/TPR/M/346/Add.1  
 
- 132 - 
 
  systems determined by the Commissioner of the KCS, and which is designated by tender. 
Participation in auctio ns is allowed to the persons who give consent to conditions and matters to 
note for public auction announced by the competent customs office. In case of auctions for specific 
items subject to special laws (e.g. license for liquor importation, etc.), partic ipation in auctions is 
limited.  
 
 
3.2.3.3 Aranceles "flexibles"  
 
Párrafo 3.34. "Corea aplica derechos NMF temporales (denominados aranceles "flexibles"). En el 
mecanismo de los aranceles flexibles no solo se incluyen los derechos de ajuste y estacionales 
(que se describen más abajo) sino también los contingentes arancelarios autónomos y los 
aranceles "en función del uso", así como también los derechos de salvaguardia y de salvaguardia 
especial… El sistema permite que las autoridades aumenten o reduzcan cier tos aranceles 
discrecionalmente, de modo que cuentan con un margen considerable para alentar o desalentar la 
importación de determinados artículos a fin de estabilizar los precios, proteger a los productores 
nacionales y asegurar un abastecimiento constant e" 
 
9. ¿Podría el Gobierno de Corea confirmar si las partidas arancelarias a las cuales 
aplica "aranceles flexibles" y que han sido negociadas en los ACR y ALC , no se les 
aplican esos aranceles flexibles sino únicamente los aranceles que le corresponde 
a cada  partida arancelaria de conformidad con el cronograma de desgravación 
respectivo?  
 
ANSWER : 
Originating goods under FTAs or RTAs are allowed to be subject to tariff preference of the 
agreements rather than flexible tariffs, when the rate of flexible tariffs  is higher than that of FTAs 
or RTAs. Unlike FTAs or RTAs, flexible tariffs are applied to all countries.  
 
10. Respecto al Cuadro A3 - 1 Arancel de ajuste, 2015 y 2016 del informe de la 
Secretaría, reproducido más abajo, s ólo se li stan 22 partidas arancelarias y en el 
párrafo 8 se mencionan 145 partidas para 2016. ¿Dónde se puede consultar por 
internet el listado completo en inglés?  
 
ANSWER : 
Korea already submitted the subject English list to the WTO Secretariat.  
 
SA Designación  General 
(%) 2015  
(%) 2016  
(%) 
0301.92  Anguilas ( Anguilla  spp. excepto las angulas y 
las anguilas jóvenes para la acuicultura)  10 22% o 1.531 ₩/kg 
según cuál sea 
mayor  22% o 1.531 ₩/kg  
según cuál sea 
mayor  
0301.99  Doradas de mar (excepto alevines (para la 
acuicultura))  10 28% o 2.052 ₩/kg  
según cuál sea 
mayor  28% o 2.052 ₩/kg  
según cuál sea 
mayor  
0301.99  Róbalos (excepto alevines (para la 
acuicultura))  10 28 28 
0303.67  
0303.69  Abadejo de Alaska (excepto su aleta, cabeza, 
cola, estómago y otros despojos de pescado)  10 22 22 
28 
0303.89  Paparda, cuya longitud total supere los 22 cm 
desde la cabeza hasta la cola, excepto el pez 
cuerno  10 28 35% o  236 ₩/kg  
según cuál sea 
mayor  
0303.89  Corvinas, limitado a los Sciaenidae , excepto la 
corvina amarilla y el verrugato de Manchuria  10 28 22 
0306.26  
0306.27  Camarones y langostinos, salados o en 
salmuera  20 35% o 236 ₩/kg  
según cuál sea 
mayor  40% o 1.625  ₩/kg 
según cuál sea 
mayor  
26% o 206 ₩/kg  
según cuál sea 
mayor  
0307.49  Calamares y potas, excepto sepia, Notodarus 
gouldi , Loligo vulgaris  y el surimi  10 22 50 
0709.59  
0712.39  Setas de roble  30 40% o 1.625 ₩/kg  
según cuál sea 
mayor  45 
35 WT/TPR/M/346/Add.1  
 
- 133 - 
 
  SA Designación  General 
(%) 2015  
(%) 2016  
(%) 
1902.19  Fideos chinos  8 26% o 206 ₩/kg  
según cuál sea 
mayor  10 
1904.90  Arroz en grano, que no contenga cacao, al 
vapor o hervido  8 50 0,5 
2103.20  
2103.90  Preparaciones para salsas, salsas preparadas 
y sazonadores compuestos de lo siguiente: 
con un contenido igual o sup erior al 20% de 
Capsicum  o ajo o cebolla o jengibre, o con un 
contenido igual o superior al 40% de cualquier 
mezcla de estos  8 45 22% o 1.531 ₩/kg  
según cual sea 
mayor  
28% o 2,052 ₩/kg  
según cual sea 
mayor  
2103.90  Gochujang  8 35 28 
2103.90  Mae joo  8 13% o 52 ₩/kg  
según cual sea 
mayor  22 
4412.31  
4412.32  
4412.39  
4412.99  Madera contrachapada, madera chapada y 
madera estratificada similar, de un espesor 
total superior o igual a 6 mm; y cada hoja de 
madera de espesor unitario inferior o igual 
a 6 mm 8 10 28 
Fuente:  Datos facilitados por las autoridades coreanas.  
3.4.6 Derechos de propiedad intelectual  
 
El párrafo 3.194 del informe de la Secretaría indica que... "De conformidad con las disposiciones 
de la Ley Marco de Propiedad Intelectual, el 28 de julio de 2 011 se estableció el Consejo 
Presidencial de Propiedad Intelectual (PCIP) para examinar y corregir las principales políticas del 
Gobierno en materia de propiedad intelectual, así como evaluar y vigilar los progresos en esta 
esfera. El PCIP formuló, y está aplicando, el Primer Plan Estratégico de la Propiedad Intelectual 
Nacional (2012 -2016). Todos los años se elabora un plan de acción para cumplir sus objetivos de 
política; en este sentido, el PCIP empezó a aplicar un sistema de promoción de la creación, 
protección y utilización de la propiedad intelectual, cuestiones que siguen preocupando al país."  
 
11. ¿Cómo está conformado y qué funciones tiene el Consejo Presidencia de 
Propiedad Intelectual (PCIP)?  
 
12. ¿Cuáles son las principales líneas de política del Primer Plan Estratégico de la 
Propiedad Intelectual Nacional (2012 -2016)?  
 
ANSWER(11~12) : 
On July 29, the President of the Republic of Korea presided over the meeting of the Presidential 
Council on National Competitiveness to make a decision for the promotion of  national strategy on 
making the nation an intellectual property power house.  
The Consultative Committee for Intellectual Property Policies and its Secretariat were established 
under the Prime Minister to carry forward important preparatory tasks includin g legislation of a 
"Framework Act on Intellectual Property." * Regulation on the Establishment and Operation of the 
Consultative Committee for Intellectual Property Policies(Prime Minister 's Instruction) was set and 
promulgated. (October 27, 2009)  
The Fra mework Act on Intellectual Property(IP Framework Act) was enacted and taken effect on 
July 20, 2011. The Act stipulates the creation of Presidential Council on Intellectual Property(PCIP) 
co-chaired by Prime Minister and private expert and the formulation of a master plan for national 
intellectual property, among other things.   
The Presidential Council on Intellectual Property was established on 28 July 2011, and its 
administrative body, Office of IP Strategy and Planning on 1 September  2011.  
Functions : Th e Council deliberates on and coordinates the following matters:  
- Formulation and change of the master plan for national IP and its action plans.  
- Review and evaluation of the master plan and its action plans.  
- Matters concerning the direction of distrib ution and efficient management of financial resources 
related to intellectual property.  
-Policies for promoting the creation, protection and utilization of intellectual property and for 
creating foundations thereof.  WT/TPR/M/346/Add.1  
 
- 134 - 
 
  QUESTIONS FROM LDC GROUP (BENIN)  
 
 
Ques tions du Groupe des PMA — Examen des politiques commerciales de la République 
de Corée 2016  
 
QUESTIONS PORTANT SUR LE RAPPORT DU SECRÉTARIAT ET LE RAPPORT DU 
GOUVERNEMENT8 
 
3. PRATIQUES  ET POLITIQUES  COMMERCIALES  PAR TYPE  DE MESURE   
 
Rapport du Secrétariat , page  57 (graphique  3.3) 
Le graphique  3.3 montre une progressivité des droits pour les denrées alimentaires, les boissons 
et le tabac, le textile et le cuir, le bois et les meubles, ainsi que pour les produits minéraux non 
métalliques. Ces produits présen tent un intérêt pour les PMA. La politique en matière de 
progressivité des droits reste en grande partie inchangée depuis le dernier exam en des politiques 
commerciales.  
 
Questions  
1. La Corée peut -elle préciser si la progressivité des droits s 'applique égalem ent aux produits 
originaires des PMA  ?  
2. Si c'est le cas, la République de Corée est -elle disposée à offrir un accès en Franchise de 
droit et sans contingents pour ces produits afin de répondre aux préoccupations quant à la 
progressivité des droits  ?  
3. Afin de favoriser les opérations de transformation et d 'ajout de valeur effectuées dans les 
PMA, la République de Corée pourrait -elle envisager de supprimer la progressivité des droits 
dans le cadre de son système d 'accès aux marchés en franchise de droits et s ans 
contingents, en particulier pour les produits semi -transformés dans les secteurs tels que les 
denrées alimentaires, les boissons, le tabac, ainsi que le textile et la confection  ?  
ANSWER(1~3):  
Since  1 January 2012, Korea has expanded duty -free quota -free preference for imports from LDCs. 
Currently, 93.6% of the goods imported from LDCs benefits from the preferential treatment.  
ㅇ Korea has not provided the DFQF preference for ag ricultural, fishery and light industry goods as 
those have less competitiveness in the global market.  
ㅇ For these reasons, Korea has no plan to expand preferential treatments or to change our policy 
of progressivity rights for LDCs at the moment.  
 
 
Tarif s préférentiels  
 
Rapport du gouvernement, page  10 (Para. 4.11) et rapport du Se crétariat, pages  59 – 60 
(para.  3.45 et tableau  3.2) 
 
Le Groupe des PMA remercie chaleureusement la République de Corée d 'avoir mis en place, depuis 
le mois de janvier 2012, un  système amélioré d 'accès préférentiel aux marchés en faveur de 48 
PMA. La République de Corée est un partenaire commercial crucial pour plusieurs PMA, 
représentant plus de 8  % du total des exportations du groupe. Depuis 2012, les exportations des 
PMA vers la République de Corée ont connu une croissance marquée. Plusieurs facteurs viennent 
expliquer cette croissance, mais il ne fait aucun doute que le système d 'Accès aux marchés en 
Franchise de Droits et Sans Contingents mis en place par la République de Co rée a joué un rôle 
significatif dans la stimulation des exportations des PMA. Cependant, comme pour tout système 
d'accès aux marchés en Franchise de Droits et Sans Contingents, les exemptions peuvent avoir un 
impact sur l 'efficacité du système. L 'exclusion  de plusieurs produits agricoles en particulier a 
pénalisé les exportations de certains fruits et légumes et autres denrées alimentaires.  
 
Questions : 
 
1. En 2004, les importations des PMA représentaient 0,46  % des importations coréennes, et ce 
chiffre a légè rement augmenté pour atteindre 0,85  % en 20139. Alors qu 'en termes absolus 
                                                
8 WT/TPR/S/346 (rapport du Secrétariat); WT/TPR/G/346 (rapport du gouvernement).  WT/TPR/M/346/Add.1  
 
- 135 - 
 
  les exportations des PMA vers la République de Corée ont augmenté, la part des 
importations en provenance des PMA reste marginale.  
 
La République de Corée peut -elle indiquer le pou rcentage des importations en provenance 
de PMA qui bénéficient actuellement du système d 'accès aux marchés en franchise de droits 
et sans contingents  ?  
 
ANSWER:  
Imports from LDCs accounted for 1.11% in 2014 and 0.87% in 2015 of the total imports of Korea,  
which is calculated based on the import value declared to the Korea Customs Service.  
 
- Import value from LDCs which enjoyed Korea 's duty -free quota -free preference took up 0.45% in 
2014 and 0.67% in 2015 of the total imports of Korea.  
 
2. Le groupe des PMA félicite la République de Corée pour la régularité observée dans ses 
notifications et l 'encourage à continuer de notifier régulièrement les importations 
préférentielles au Secrétariat, conformément aux dispositions pertinentes du mécanisme 
pour la transpar ence des arrangements commerciaux préférentiels.   
 
La République de Corée a -t-elle pris des dispositions pour notifier les données d 'importations 
de 2015 et 2016, conformément à la décision de Nairobi  ? 
 
ANSWER:  
Korea already submitted to the WTO Secretar iat the import data on total items made before 2015.  
- Given that the template for the notification of preferential rules of origin made in accordance with 
the decision of Nairobi is under discussion at the WTO Committee on Rules of Origin, Korea will 
notify the data after the form of the template determined by the Committee.  
 
3. D'après le dernier examen des politiques commerciales de la Corée, le pays a, tenant 
compte de la Déclaration ministérielle de Hong Kong de 2005, étendu l 'accès aux marchés 
en Franchi se de droits et sans contingents à 95  % de ses lignes tarifaires (s ur la base du 
système harmonisé à 6 chiffres) pour les produits originaires de PMA, et ce depuis janvier 
2012.10 Cependant, d 'après le rapport du gouvernement, le système d 'accès aux marchés  en 
Franchise de droits et sans contingents couvre 4  870 ou 93,6  % de l 'ensemble des lignes 
tarifaires. Le tableau  3.2 du rapport du Secrétariat indique pour sa part un pourcentage de 
90,3 des lignes tarifaires.  
 
Qu'est ce qui explique la réduction du tau x de couverture de 95 % (notifié le 20 mars 2012, 
WT/COMTD/N/12/Rev.1/Add.1) à 93,6 % selon le Rapport du Secrétariat et à 90,3 % selon 
le Rapport du Gouvernement  ? La République de Corée peut -elle clar ifier cette différence 
observée ? 
 
ANSWER:  
The Harmoniz ed System of Korea made at the 10 -digit level was revised in 2013, 2014 and 2015.  
- As a result, the percentage of duty -free quota -free preference of Korea granted to LDCs 
decreased from 95% in 2012 to 93.6% in 2016. However, the actual number of items cov ered by 
the DFQF treatment was not reduced.  
 
 
4. D'après le Département des Nations Unies pour les affaires économiques et sociales 
(DESA)11, le ministère de la Stratégie et des Finances de la République de Corée a indiqué 
en 2015 qu 'une extension supplémentai re de l 'accès aux marchés en Franchise de droits et 
sans contingents en faveur des PMA était envisagée.  
                                                                                                                                                  
9 Département des Nations Unies pour les affaires économiques et sociales (DESA) , 2015.  
10 Le document  WT/CO MTD/N/12/Revu.1/Ad.1 soumis par la République de Corée le 20 mars 2012 
indique également que le pourcentage des lignes tarifaires couvertes par le traitement en franchise de droits et 
sans contingents sera porté à 95 %. 
11 http://esango.un.org/ldcportal/web/10447/ -/expansion -of-korea%E2%80%99s -dfqf-market -access -
for-ldcs?groupId=19799&redirect=http%3A%2F%2Fesango.un.org%2Fldcportal%2Ftrade%2Fall -facts-
figures%3Bjsessionid%3D95B54291792AFC745CF085FD97A5DF54%3Fp_p_id%3D101_IN STANCE_AuRAMSiMt
8zf%26p_p_lifecycle%3D0%26p_p_state%3Dnormal%26p_p_mode%3Dview%26p_p_col_id%3Dcolumn -
1%26p_p_col_count%3D1  WT/TPR/M/346/Add.1  
 
- 136 - 
 
  La République de Corée prévoit -elle d 'étendre son système d 'accès aux marchés en 
Franchise de droits et sans contingents pour atteindre un taux de couv erture de 97  %, 
comme envisagé dans les décisions de Hong Kong et de Bali  ? Et si oui, dans quel délai  ?  
 
5. En dépit du système d 'accès aux marchés en Franchise de droits et sans contingents accordé 
par la République de Corée, le tableau  3.2 indique que le taux moyen appliqué aux PMA est 
de 7,8  %, contre 4,6  % pour les exportations des États -Unis, 4,9  % pour celles en 
provenance de l 'UE, et 5,3  % pour les pays de l 'ASEAN, en vertu des différents accords 
régionaux et bilatéraux conclus par la Corée du Sud.  
 
La République de Corée peut -elle envisager d 'étendre aux PMA ces préférences 
commerciales accordées dans le cadre de ses ALE  ? 
 
6. Le taux moyen appliqué aux exportations agricoles des PMA est de 51,5  %, un chiffre plus 
élevé que celui appliqué aux exportations des États -Unis, du Vietnam, du Pérou, du Chili, de 
l'UE ou des pays de l 'ASEAN.  
 
Est-il envisageable pour la République de Corée d 'améliorer le traitement appliqué aux 
exportations de produits agricoles (fruits et légumes) ainsi qu 'aux produits de la pêche, des 
textiles et de la confection en provenance des PMA, tout en tenant compte que ceux -ci 
représentent des biens d 'intérêt spécial et une large part des exportations des Membres du 
Groupe.  
 
ANSWER(4~6):  
Since January 1, 2012, Korea has expanded duty -free quota -free preference for imports from 
LDCs. Currently, 93.6% of the goods imported from LDCs benefits from the prefer ential treatment.  
ㅇ Korea has not provided the DFQF preference for agricultural, fishery and light industry goods as 
those have less competitiveness in the global market.  
 
- For these reasons, Korea has no plan to expand preferential treatments or to chang e our policy 
of progressivity rights for LDCs at the moment.  
 
In terms of Agriculture, Preferential tariff rates for products exported from LDCs are already in 
place for 990 tariff lines out of total 1,623 agricultural tariff lines.  
 
 
Facilitation des écha nges  
Rapport du Secrétariat, page  47 (para  3.4, 3.15)  
Le Secrétariat indique que depuis juillet 2014, une procédure de dédouanement de minimis pour 
les biens de consommation achetés en ligne pour moins de 100  dollars US — 150 dollars US 
depuis décembre 201 5 — les exempte des obligations de documentation et de dédouanement. 
Pour les biens achetés sur des sites américains, le seuil est porté à 200  dollars US en vertu de 
l'ALE KORUS.  
 
Question : 
1. La Corée a -t-elle enregistré des importations en provenance de PMA  rentrant dans le cadre 
de cette procédure de minimis  pour des biens achetés en ligne  ?  
ANSWER : 
none 
Rapport du Secrétariat, page  49 (paras  3.11 et 3.12, note de bas de page n° 2) ; rapport du 
gouvernement, page  10 (para  4.5) 
Le rapport du Secrétariat fait référence au système UNI  PASS  mis en place par la Corée du Sud, 
notant qu 'il s'agit du prem ier portail de dédouanement 100 % électronique au monde, que la Corée 
a exporté dans plusieurs pays not amment le Népal et la Tanzanie.  
 
Questions  
2. La République de Corée prévoit -elle d 'étendre UNI PASS  à d'autres PMA  ? WT/TPR/M/346/Add.1  
 
- 137 - 
 
  ANSWER : 
The Korea Customs Servi ce (KCS) is under final negotiations with Ethiopia and Tanzania 
(additional exportation) for the exportation of UNI -PASS. To contribute to global trade facilitation 
and to increased revenues in the corresponding countries through the exportation of UNI -PASS, 
The KCS will continue to identify LDCs ' demand on UNI -PASS.  
3. La République de Corée peut -elle fournir une assistance technique aux PMA dans le cadre de 
ses efforts visant à mettre en place un guichet unique mondial  ?  
ANSWER : 
Based on the experience with the Global Single Window, the KCS developed the standard 
guidelines for the current version of the web services linked with the public users. Linkage with 
customs authorities of other countries depends on the level of informatization of the two countries 
involved but providing coordination or guidance is possible.  
 
 
Règles d 'origine  
 
Rapport du Secrétariat, page  61 (para  3.46)  
La République de Corée considère que les règles doivent être transparentes et promouvoir le  
commerce et l 'investissement. Les Règles d 'origine applicables aux importations en vertu des 
régimes préférentiels APTA, GSTP, TNDC et PMA se fondent sur les dispositions prévues par le 
code des douanes coréen. Pour que les PMA bénéficient d 'un accès aux marchés en franchise de 
droits pour les importations éligibles, les biens doivent être soit «  intégralement produits ou 
obtenus  » dans le pays exportateur, ou fabriqués à partir de matériaux locaux pour au moins 40  % 
du prix FOB (c. -à-d. que les matières p remières non locales ne doivent pas excéder 60  % du prix 
FOB). Les navires de pêche doivent tout d 'abord être enregistrés dans le pays exportateur, et être 
détenus à 60  % minimum par des investisseurs locaux.  
 
Questions  
1. Les PMA rencontrent des difficultés  pour atteindre le seuil de 40  % de matières premières 
locales étant donné leur faible base industrielle  ; La République de Corée envisage -t-elle de 
mettre en œuvre le paragraphe 1.1.b) de la Décision de Nairobi sur les Règles d 'Origine 
Préférentielles ? 
 
2. Est-il envisageable pour la République de Corée d 'introduire davantage de flexibilité dans les 
Règles d 'origine portant sur la propriété des navires, en assouplissant les critères de 
propriété pour tenir compte des capacités des PMA, soit par l 'adoption d 'une Règle d 'origine 
fondée sur l 'approvisionnement mondial, soit par une modification des catégories de t arifs ? 
 
3. La République de Corée envisage -t-elle de mettre en œuvre le paragraphe 2 (cumul de 
l'origine) de la décision de Nairobi sur les règles d 'origine  ?  
ANSWER(1~3):  
Since 1 January 2012, Korea has expanded duty -free quota -free preference for imports from LDCs. 
Currently, 93.6% of the goods imported from LDCs benefits from the preferential treatment.  
- Korea has not provided the DFQF preference for agricultural, fishery and light industry goods as 
those have less competitiveness in the global market.  
- For these reasons, Korea has no plan to expand preferential treatments or to change our policy 
of progressivity rights for LDCs at the moment.  
 
In terms of Agriculture, Preferential tariff rates for products exported from LDCs are already in 
place for 990 tari ff lines out of total 1,623 agricultural tariff lines.  
 
Rapport du Secrétariat, page  60 (para  3.45)  
Depuis le dernier examen de ses politiques commerciales, la République de Corée n 'a quasiment 
pas modifié le nombre de biens PMA pouvant bénéficier d 'un tra itement unilatéral (non réciproque) 
libre de droits et sans contingents (section  2.6.3, tableau  3.2). Le ministre de la Stratégie et des 
Finances peut modifier ou retirer les préférences commerciales unilatérales s 'il les considère 
comme inadaptées, compte  tenu du niveau de revenu du pays, du volume des importations, et de 
la compétitivité internationale du produit et du pays concerné.  
 WT/TPR/M/346/Add.1  
 
- 138 - 
 
  Questions  
Le paragraphe  3.45 suggère que le ministre de la Stratégie et des Finances peut modifier ou 
retirer les préfére nces commerciales unilatérales s 'il les considère comme inadaptées, compte tenu 
du niveau de revenu du pays, du volume des importations, et de la compétitivité internationale du 
produit et du pays concerné  
 
4. Certains produits PMA ont -ils été retirés de la l iste des biens en Franchise de droits et sans 
contingents en vertu de cette disposition  ?  
 
5. Des discussions sont -elles possibles avec les PMA concernés avant la modification ou le 
retrait des préférences  ?  
 
ANSWER(1~2):  
Korea will consider to discuss with  LDCs concerned before expanding the preferential treatment for 
LDCs in the future.  
 
 
Mesures de sauvegarde  
 
Page 67 (para  3.69)  
Les notifications sur la période  2011-2013 font état de mesures SGS fondées sur le prix pour le 
ginseng brut (2011 et 17.4.201 2-13,12. 2012), le ginseng blanc (11.1.2011), et le ginseng racine 
(24.4.2013 -24,12. 2013)  ; des mesures similaires ont concerné le ginseng sur la période  2014-
2016 et le riz et les produits dérivés en 2015 -2016. Des SGS basées sur le volume ont été utilisées 
pour l 'arachide (2012 -2013), le riz et les produits dérivés (2014 -2015), la farine de céréales et 
d'autres grains transformés (SH  1102.90.9000, SH  1103.11.0000, SH  1104.22.0000, 
SH 1104.29.9000) (16.5.2015 -31,12. 2015) pour la première fois depuis 2007. La République de 
Corée a notifié ses dernières mesures SGS auprès du Comité de l 'agricul ture de l 'OMC en juillet 
2016.  
 
Question  
1. La République de Corée peut -elle indiquer si des produits en provenance de PMA ont été 
concernés par les mesures SGS  mentionnées au paragraphe  3.69 ci -dessus ? 
ANSWER : 
In 2015, the SSG applied to ginseng and other processed cereals, and agricultural products 
imported from LDCs were not subject to the SSG measures.  
 
 
Normes  
Page 77 (para. 3.103)  
Le rapport du Secrétariat indique que durant la période sur laque lle porte l 'examen, soit entre 
2012 et 2016, la Corée a soumis 161 notifications SPS dans le cadre de l 'accord de l 'OMC sur les 
mesures SPS. Il est primordial pour les exportateurs PMA d 'acquérir la capacité de se conformer 
aux mesures établies, en particu lier en ce qui concerne les exportations agroalimentaires de haute 
valeur. Le respect des normes SPS  internationales et des autres exigences en vigueur dans les 
marchés importateurs est une difficulté constante pour les PMA, en raison des capacités 
financi ères, humaines et techniques limitées des exportateurs PMA.  
 
Question  
 
1. La République de Corée a -t-elle mis en place des mécanismes d 'aide aux exportateurs PMA 
pour les aider à se conformer aux exigences SPS  en vigueur dans le pays  ? 
ANSWER : 
Korea invited quarantine officers from some LDCs(including Cambodia, Lao PDR) to provide 
various training program such as technical education to categorize and identify pests and 
enhancing plant quarantine abilities. From 2006 to October 2016, 256 officers were invited to the 
training program.  
Ministry of Food and Drug Safety(MFDS) of Republic of Korea has held capacity enhancement 
programs for regulators of LDCs. The list of programs are following  : 
<Seminar on Safety Governance of Agricultural and Livestock Products fo r Asian Countires>  WT/TPR/M/346/Add.1  
 
- 139 - 
 
  <Capacity Development Program for Food Hygiene Public Officers(Asia>  
<Food Safety Management(Bangladesh)>  
Through these programs, MFDS offers information and knowledge related to food safety which can 
enhance LDCs ' export capabilities s uch as Korea 's food sanitary & safety management system, 
production & distribution management, imported food control, food addtives, standards & 
specifications for foods and etc  
 
 
Droits de la propriété intellectuelle  
Page 104 (para  3 198) 
 
À l'occasion des examens des politiques commerciales des Membres, les PMA souhaitent 
déterminer le rôle qu 'ils jouent dans l 'économie des autres Membres, afin de mieux juger de leur 
intégration au système commercial multilatéral et de leur capacité à exploiter les outils 
commerciaux que leur offre leur qualité de Membres de l 'OMC, et le potentiel qui accompagne leur 
utilisation. Le rapport du Secrétariat décrit l 'application suivie que fait la République de Corée des 
droits de la Propriété Intellectu elle, notant que 21,7  % des 213  694 demandes de brevet déposées 
en 2015 émanaient de non -résidents.  
 
Questions  
1. Le Groupe des PMA souhaite savoir si la République de Corée a reçu des demandes de 
brevet, de marque déposée ou d 'indication géographique de la part de PMA.  
2. Si oui, ont -elles été enregistrées ou accordées, et quelle était la nationalité des requérants  ? 
ANSWER  (1~2) : 
At this moment, KIPO does not have the statistics representing the applications originated only 
from Benin(LDC). However, all the applications have been and will be processed based on Korean 
trademark laws and examination guidelines.  
 
 
4 POLITIQUES  COMMERCIALES  PAR SECTEUR  
Agriculture (et pêche)  
Page 116 (para. 4.19)  
D'après le rapport du Secrétariat, la Corée applique des contingents tarifaires dans le cadre de se s 
engagements multilatéraux sur l 'accès au marché des produits agricoles, sur 227 lignes à dix 
chiffres, les droits hors contingents s 'élevant entre 9 et 887,4  %. 
 
Question : 
1. Ces contingents s 'appliquent -ils également aux PMA dans le contexte du traitement en 
Franchise de droits et sans contingents appliqué par la République de Corée  ? 
 
ANSWER : 
Dury-free Quota -free is applied for 4 tariff lines of 227 tariff lines which are scheduled for tariff 
quotas of Korea. Those include pine -nuts(shelled and not shelled ), millets and sorghum.  
Page 117 (para. 4.26) et page  84 (para. 3.128)  
D'après le rapport du Secrétariat, les dernières notifications portant sur les subventions à 
l'exportation soumises par la Corée du Sud, datent de 2010, et portent sur la période  2005-2008. 
Les notifications concernaient des subventions à l 'exportation pour, entre autres, les fruits, les 
fleurs, les légumes, les céréales et denrées alimentaires transformées. Au cours de la période 
examinée, ces subventions ont perduré pour certains produ its agricoles dans le cadre des 
dispositions de l 'article  9.4 de l 'accord sur l 'agriculture portant  sur les pays en développement.  
 
Question : 
2. La République de Corée prévoit -elle de notifier les subventions à l 'exportation accordées 
depuis 2008 dans un aven ir proche  ? Compte tenu de l 'accord de Nairobi sur les subventions 
à l'exportation, comment la République de Corée envisage -t-elle éliminer progressivement 
ces subventions d 'ici 2023  ?  
 
ANSWER : 
Korea is currently on the phase of finalizing and confirming its expor t subsidy notifications in 
accordance with Article 9.4 of the Agreement on Agriculture and plans to submit the notifications WT/TPR/M/346/Add.1  
 
- 140 - 
 
  soon.According to the timeframe set at the Nairobi Ministerial Decision, Korea will eliminate the 
export subsidies by 2023.  
 
Page 119 (para. 4.33) et page  93 (para. 3.165)  
D'après les dernières notifications soumises par la Corée du Sud, le soutien interne global, y 
compris les mesures de catégorie verte, les programmes de développement soumis au traitement 
spécial et différencié, et le soutien de minimis non sujet à réduction, a considérablement 
augmenté entre 2008 et 2011.  
 
Question  
3. Compte tenu de la baisse continue du prix des denrées alimentaires observée depuis 2011, 
la République de Corée prévoit -elle une augmentation du montant du soutien interne, y 
compris les versements ayant un effet de distorsion sur les échanges  ? 
 
ANSWER : 
We are still collecting data for domestic support notifications since 2011, but it is expected that 
Korea 's trade -distorting supports have not increased much . 
 
4. Cela affectera -t-il les produits d 'exportation représentant un intérêt pour les PMA  ? 
 
ANSWER : 
Most of domestic supports in Korea are not in trade -distorting form but in green box, and they are 
not operated in a way that undermines other countries ' export, including LDCs.  
 
 
Pêche  
 
Pages  123 -125 (Paras  4.55 -4,56 et tableau  4.9) 
Le Groupe  des PMA félicite la République de Corée pour les réformes continues de son programme 
d'appui à la pêche et la réduction des subventions accordées au secteur, de ₩151  207 millions en 
2011 à ₩ 82 270 millions en 2014. La République de Corée reste néanmoins l 'un des principaux 
producteurs de poisson et dispose d 'une flotte importante de navire d e pêche en haute mer. 
D'après le rapport du Secrétariat, tandis que le nombre de navires a décliné au cours des dernières 
années, la production totale a, pour sa part, augmenté, en particulier pour les vaisseaux de pêche 
en haute mer, avec une croissance  de 19 % entre 2013 et 2014.  
 
Questions  
1. À part le développement de l 'aquaculture et le retrait de certains navires, les subventions 
accordées par la République de Corée au secteur de la pêche portent sur les " activités de 
pêche ". La République de Corée peut -elle préciser à quoi correspond ce type d 'aide en 
pratique, et dans quelle mesure il pourrait contribuer à accroitre la capacité ou les efforts de 
pêche ? 
2. Dans quelle mesure les programmes existants contri buent -ils au développement et au 
fonctionnement de la flotte de pêche en haute mer du pays  ?  
3. Des subventions supplémentaires sont -elles accordées à la construction de navires de pêche 
au-delà de celles listées dans le tableau  4.9 ? 
 
ANSWER(1~3) : 
Fishery f und for the stabilization of the artisanal fishermen is provided in the form of loans, those 
of which cannot be directly related to enhancement of fishing capacity.  
Among the subsidies, replacement and modernization of old distant -fishing vessels and its 
equipment project pursues to prevent safety accidents of fishing ship crew by replacing over 21 -
years -old distant -fishing vessels which are permanently dismantled and it does not enhance the 
capacity by reinforcing the facilities. Moreover, the number of d istant -fishing vessels are 
continuously decreasing.  
The increased production between 2013 and 2014 was due to increased population of squid 
species followed by increased catch in the squid items, however, replaced new vessels by this 
project are not for s quid fishing operation, thus, there is no relevance between the two. Existing 
subsidies are notified according to the WTO SCM Agreement. Besides, there are partial supports 
for the welfare of the fishermen and enhancement of the resources.  
 WT/TPR/M/346/Add.1  
 
- 141 - 
 
  Rapport du Secr étariat, page  125 (para  4.57)  
4. Nous saluons les mesures plus strictes adoptées par la République de Corée pour 
sanctionner les navires impliqués dans la pêche INN. La Corée peut -elle donner plus de 
détails sur la mise en œuvre de sa loi modifiée sur le déve loppement de la pêche en haute 
mer ? Existe -t-il des exemples de navires sanctionnés pour des faits de pêche INN en vertu 
de la nouvelle loi  ? 
 
ANSWER : 
Distant Water Fisheries Development Act was amended in 2014 and 2015  (final amendment: JUL 
2015), which introduced an imprisonment of up t o five years or a criminal fine of up to five time 
the wholesale value of illegal catches, or a criminal fine of at least ₩500 million -₩1 billion, 
whichever is higher when caught involved in IUU fishing, and measures such as instant suspension 
of fishing o peration as well as obligation to moor at a designated port is taken when oversea 
fishermen violate the terms of obedience.  
 
 
Services  
 
Page 140 (para  4 145) 
Le rapport du Secrétariat donne des informations détaillées concernant le traitement des services 
non bancaires en Corée du Sud.  
 
Question  
1. La République de Corée peut -elle préciser le traitement appliqué aux transferts d 'argent, aux 
services bancaires mobiles et aux services de change dans le cadre de ce régime  ? Il s'agit 
de services présentant un int érêt particulier pour les PMA.  
 
ANSWER : 
Information is not available at this monent however follow up answer will b e provided as soon as 
possible.  
 
 
Page 150 (Para  4 206 et 4  207) 
Le rapport du Secrétariat relève un nombre important de mesures prises par l e gouvernement 
coréen pour promouvoir la diversification de l 'économie dans le secteur des services, créer des 
emplois et augmenter la part des services dans le PIB. Parmi les mesures incitatives prévues par la 
Corée pour stimuler le secteur émergent du to urisme figurent un fonds spécial et des exemptions 
de frais de visa et la facilitation des entrées multiples. Il est évident que de tels obstacles 
règlementaires entravent l 'accès au marché. C 'est particulièrement problématique pour les PMA. 
Le Groupe des PMA souhaite continuer les négociations sur les obstacles non tarifaires à l 'accès 
aux marchés des exportateurs PMA, notamment la réduction ou l 'élimination des visas, des permis 
de travail ou de résidence, et les autres frais imposés aux fournisseurs de s ervices des PMA. Le 
Groupe des PMA prend également note et salue la notification soumise par la Corée concernant la 
dérogation sur les services pour les PMA, qui ne contient que des mesures axées sur l 'accès aux 
marchés.  
 
Question  
2. Conformément aux principe s suivis par la République de Corée en matière de services, et 
décrits dans le rapport du Secrétariat, la République de Corée peut -elle, en consultation 
avec les PMA, proposer des mesures incitatives similaires en leur faveur  ? 
 
ANSWER : 
Further discusion w ith LDC group would be pleased regard ing the above mentioned matter.  
 
 
Assistance technique  
 
Rapport du gouvernement, page  10 (para  4.12)  
 
Nous saluons l 'aide apportée par la République de Corée aux PMA dans le cadre du Fonds global 
d'affectation spéciale  du PDD et du Cadre intégré amélioré et nous nous réjouissons de continuer à 
travailler avec la Corée à cet égard. Nous notons également que la République de Corée a pu WT/TPR/M/346/Add.1  
 
- 142 - 
 
  participer efficacement aux chaînes de valeur mondiales, toutefois la plupart des PMA p einent à 
intégrer ces chaînes de valeur, et leur part des échanges internationaux reste très faible. Les 
principales difficultés entravant la participation effective des PMA au commerce international 
portent sur les faibles capacités de production de biens  et services à valeur ajoutée, et ce de 
manière compétitive.  
 
Question  
1. La République de Corée est -elle disposée à réorienter son appui technique et financier pour 
cibler davantage l 'aide apportée aux PMA pour renforcer leurs capacités de production, afin 
qu'ils puissent offrir des biens et des services à valeur ajoutée et participer de manière 
effective aux chaînes de valeur régionales et mondiales en vue de leur industrialisation  ?  
 
ANSWER : 
Korea has so far made various efforts to support trade -driven de velopment in LDCs: Korea 
extended Duty Free Quota Free (DFQF) to more than 90% of its tariff lines for LDCs trade 
partners, and submitted its notification of preferential treatment to LDCs ' services and services 
suppliers to the WTO Council for Trade in Se rvices last July.  
 
Moreover, according to the OECD statistics, Korea is among top 20 providers of Aid for Trade in 
2013, and is one of the 20 countries who made the biggest contributions to the First Phase of the 
EIF.  
Korea will also contribute a total o f US$1  million for two years from 2016 to 2017 to the EIF for its 
Second Phase programs, as pledged at the WTO Ministerial Conference in 2015. Korea will also put 
its best efforts to provide additional amounts thereafter, depending on its relevant domestic  
circumstances. As for the issue of reorienting technical and financial support for LDCs to reinforce 
their production capacity, Korea will consult internally on how to better accommodate the needs of 
LDCs in its future contribution.  
The Republic of Korea  has donated US$ 350,000 (over CHF 340,000) each year since 2007 to help 
developing and least -developed countries(LDCs) participate effectively in WTO multilateral trade 
negotiations. The Korea is the sixth donor to the WTO 's Doha Development Agenda Global Trust 
Fund (DDAGTF) in 2016. Overall, Korea has donated nearly CHF 5 million to this trust fund over 
the past 15 years.  
 
Rapport du Secrétariat, page  35 (para  2.33)  
Nous saluons l 'appui apporté par la République de Corée aux programmes de formation de l 'OMC 
visant à aider les PMA à participer plus efficacement aux négociations et autres activités de l 'OMC. 
Au-delà de ces programmes, l 'une des principales difficultés empêchant les PMA de mieux intégrer 
le système commercial multilatéral est le coût élevé q ue peuvent représenter les opérations 
d'exportation vers un pays importateur, en particulier en raison de la lourdeur des procédures et 
du manque d 'équipement aux postes -frontière.  
 
Question  
2. La République de Corée propose -t-elle une aide technique et de re nforcement des capacités 
sur le terrain pour aider les PMA à simplifier leurs procédures aux frontières, y compris au 
niveau régional entre PMA, et à acquérir un équipement adéquat  ? 
 
ANSWER : 
Korea has been providing technical assistance and capacity build ing programs to support LDCs to 
simplify thier border prodecures especially in the areas of the trade policy capacity building and 
customs administration modenization in the forms of workshops, training programs, scholarships, 
research projects and equipme nt provisions. From 2013 to 2015, 18 LDCs have been benefited 
from those programs.  
 
_______________  
 WT/TPR/M/346/Add.1  
 
- 143 - 
 
  ADDITIONAL QUESTIONS FROM CANADA  
 
 
Part 3. Trade Policies and Practices by Measure: Standards and other technical requirements: 
paragraph 3.73, page 69:  
The Secretariat report notes that the Korea Forest Service is one of several Korean Ministries 
participating in the development of standards.  
14. Canada understands that Korea Forest Service plans to develop new requirements for Korean 
importers of forest products to conduct due diligence regarding the legality of imported forest 
products. Could Korea provide more details on these plans, particularly how Korea Forest Service 
plans to notify and consult foreign and domestic stakeholders and what the requirem ents will be 
for exporters to the Korean market?  
 
ANSWER : 
Information is not available at this moment, further update information will be provided soon.  
 
Follow -up question : 
While awaiting an update for information on the requirements for this new legislat ive measure, 
could Korea provide the name of the bill or legislation to be introduced regarding the legality of 
imported forest products?  
 
ANSWER : 
The name of the bill is the Act on the sustainable use of timber.  WT/TPR/M/346/Add.1  
 
- 144 - 
 
  ADDITIONAL QUESTIONS FROM CHINESE TAIPEI  
 
 
Page 48 of RD/TPR/696  
Page 108 (Para 3.213)  
3.213. The July 2013 amendments to the unfair competition prevention and trade secret 
protection act were aimed at better responding to diverse new types of unfair competition and, 
inter alia , involved: a broad er legal basis for punishing acts involving unauthorized use of another 
person's creative achievements; a legal basis for the trade secret certification service; regulations 
for a system compensating the reporting of counterfeit goods; and, the expansion o f the legal 
definition of trade secret possessors from "enterprises" to "individuals". To alleviate the difficulty of 
authenticating trade secret ownership during infringement litigation as from June 2012, the trade 
secret protection centre (http://www.tra desecret.or.kr) has provided useful information for 
protecting corporate trade secrets; a total of 93,256 cases had been received by the end of 
December 2015. in addition, a standard management system to provide low -cost management 
with minimal staff requi rements for companies struggling to effectively manage their trade secrets 
was developed.  
 
Footnote 264: this service operates by taking the hash values from trade secret e -documents and 
combining them with authorized time values from trusted third partie s, thereby creating time 
stamps. Time stamps are then registered with the Korea Institute of Patent Information (KIPI) to 
prove the existence of original copies of trade secrets, and well as their initial dates of possession.  
 
Question(s):  
Trade secret c ertification provides tangible proof in terms of existence of information and date of 
possession. How is this certification carried out in practice?  
 
ANSWER:  
By utilizing time stamps from the extracted hash values from trade secret, electronic signatures , 
and time information, we can confirm the existence of original documentation, as well as the initial 
dates of possession.  
time value stamp service: electronic technology which confirms the existence of data at certain 
point, and that no changes were made  after such point in time.  
 
According to Article 9 -2 subsection 3 of the Unfair Competition Prevention and Trade Secret 
Protection Act, it is assumed that person(s) who are issued a certification of original document of 
trade secrets are in possession of the information as described in the electronic document.  
 
Additional question:  
How is the evidentiary effect of the trade secret certification treated in court? Is it common for the 
party to dispute over the authenticity of the certification?  
 
ANSWER : 
In regards to possession of original documentation, in accordance with Article 9 -2(3) of the Unfair 
Competition Prevention and Trade Secret Protection Act, it is presumed that being in possession of 
the electronic documents of a trade secret certification qual ifies as possessing original 
documentation, therefore, in the case of trade secret litigation, such electronic documents can be 
used and has evidentiary value for court proceedings. As far as we know, there are no cases 
involving disputes over the authenti city of certifications.  
 
 
Page 48 of RD/TPR/696  
Page 111 (Para 3.226)  
3.226. The MCST may collect, delete or destroy illegally acquired computer programs, and instruct 
internet service providers to reject, suspend or limit pirated products and services. In an effort to 
create a "copyright ecosystem of balance and shared prosperity" through the establishment of an 
airtight copyright protection network, in 2013, the Government expanded investigation into 
violators of the Copyright Act, while reinforcing onl ine monitoring in vulnerable hours such as night 
hours and public holidays by expanding the number of online monitoring staff.  
 WT/TPR/M/346/Add.1  
 
- 145 - 
 
  Question(s):  
As mentioned, the measures taken include stepping up Internet monitoring. Is this monitoring 
carried out within an d outside of Korea? What do you do if you locate rogue sites? How has this 
monitoring been carried out so far?  
 
ANSWER:  
Korea does monitor websites within and outside of its territory. With regards to monitoring 
websites within Korea, first, we use this p rogram called the ICOP (Illegal Copyright Obstruction 
Program). ICOP is a program that automatically monitors illegal copies of copyright -protected 
works which are uploaded to domestic OSPs, such as Webhards(cyper -lockers). ICOP detects the 
illegal use of protected works through its OSP automatic search function and DNA -based contents 
recognition technology.  
Second, Korea employs 320 telecommuting workers to monitor the websites within Korea. The 
government hires socially disadvantaged groups, such as disab led persons, women who left the 
workforce involuntarily, and persons of multicultural families, to help their adjustments in society. 
(They monitor online website of all sorts, including, but not limited to, online forums, message 
boards, blogs, and torren ts). 
Once a website is caught for copyright infringement, the Korea Copyright Protection Agency will 
inspect the situation and order for rectification if necessary.  
With regards to websites outside of Korea, currently only a few websites are being monitor ed, and 
when the websites infringing copyright are found, the government contacts a relevant copyright 
organization in the country where the website is located, and shuts down the website under the 
joint efforts.  
 
Additional question:  
Regarding the oversea s rouge site, is there any blocking order being issued by the Korean 
government? Please elaborate the practice and the effect.  
 
ANSWER : 
With regards to judicial "site -blocking" mechanism, right holders of broadcasts, phonograms, films 
or etc., report a web site suspicious of possible copyright infringement to the Korea Copyright 
Commission. The Commission, then, collects relevant evidence and data to determine whether the 
reported infringement has actually occurred. After this evaluation, the Commission repo rts to the 
Ministry of Culture, Sports, and Tourism which will verify the evaluation report and request the 
counter -measures (i.e. blocking) to the Korea Communications Commission. The Korea 
Communications Commission, then, will separately assess the case,  and request the site -blocking 
to the Internet Service Providers who will then block the website.  
The government does not make the infringing website list. Rather, the list is made through 
individual reports from right holders.  
When the report on a poss ible copyright infringement case is submitted, the website may be 
blocked according to the process mentioned above.  
Illegal website is defined as a website in which 70% or more of its total posts infringe copyright. 
This website is subject to site -blocking . 
After reviewing our site -blocking policy, a faster response is needed for a copyright infringement of 
digital content case.  
The Ministry of Culture, Sports and Tourism, the Korea Copyright Commission, and the Korea 
Communications Commission cooperate on  a number of issues. They cooperate during the 
assessment process for site -blocking and to reduce the time spent for this procedure.  
Number of Blocked -Websites Outside of Korea due to Copyright Infringement (Unit: Cases)  
 
 2012  2013  2014  2015  2016  (as of the end of June)  
Websites  Website 
Posts  Websites  Website 
Posts  
Number of 
Requests for 
copyright 
Infringment 
Assessment  30 13 44 140 412 134 111 
Number of Sites 
Blocked  - 12 44 122 385 128 73 WT/TPR/M/346/Add.1  
 
- 146 - 
 
  ADDITIONAL QUESTIONS FROM THE EU 
 
 
3.4.2 Financial assis tance  
3.4.2.2. Other subsidies (linked to 3.3.3 Export subsidies)  
 
EU original question No 27 : As regards subsidies and other support measures for some specific 
industries and/or sectors, the EU would like to know whether Korea has a single window for 
compiling and managing such measures in a systematic manner. If this is not available as yet, it 
would be interesting to know whether Korea has any plans to introduce it in the future.  
NO ANSWER  
 
EU follow -up question : the EU would like to reiterate its origi nal question as it remained 
unanswered.  
 
ANSWER : 
There is no single window system in Korea for compiling and managing subsidies or other support 
measures.  
 
 
3.4.2.2. Other subsidies and 4.5.3. Shipbuilding  
Paragraph 3.162, page 92  
 
EU original question No  29: Could Korea clarify whether the Shipping Fund of US$1.2 billion, 
announced in the past, has been put in place? In this case, how is it operating and who can and 
has benefited from it?  
ANSWER : According to Korean Government's understanding, participat ing institutions to the 
Shipping Fund have finalized necessary preparations so that th e Fund may be utilized on an 
as-needed basis based on discussion among the partakers. We cannot pinpoint specific 
beneficiaries of the Fund since the Fund will be operate d under commercial decisions.  
 
EU follow -up question:  Could Korea indicate who the partakers of the Shipping Fund are and how 
the Shipping Fund is operating? Could ailing companies benefit from this Fund?  
 
ANSWER : 
Shipping firms, private financial firms an d public financial firms may partake in the Shipping Fund. 
Investment decisions will be made under commercial decisions. Firms with debt ratio exceeding 
certain level are not eligible for applying for the support program under this Fund.  
 
4.5.2 Automotive  
Paragraph 4.108, page 132  
 
EU original question No 48 : Could Korea provide any further details on the individual consumption 
tax which applies to cars? In particular, the EU would like to know whether Korea is planning to 
introduce further exemptions or reductions, as a means to boost domestic consumption in the 
second half of this year.  
ANSWER :  
The individual consumption tax, which is a special excise tax, applies to cars: 5% on cars, with a 
temporary tax cut to 3.5% from 27 August 2015 to end -June 201 6, to boost consumer spending 
Exempted on mini cars (less than 1,000 cc);Reduced on hybrid cars (maximum ₩1 million, until 
2018), and electric cars (maximum ₩2 million, until 2017).  
 
EU follow -up question:  How can Korea guarantee that exempting mini cars only from the individual 
consumption tax, does not lead to de facto discrimination against imported cars, which would be 
contrary to GATT Article III.2?  
 
ANSWER : 
Mini cars with engine displacement of less than 1,000 cc, regardless of whether they are 
dome stically manufactured or imported, are excluded from those subject to Individual 
Consumption Tax and therefore it cannot be regarded that imported vehicles receive any 
discriminatory taxation treatment.  
 WT/TPR/M/346/Add.1  
 
- 147 - 
 
  4.5.3 Shipbuilding  
Paragraph 4.116, page 133  
EU ori ginal question No 49 : Could Korea please explain the main characteristics of the Korean 
policy regarding the restructuring of the shipbuilding sector and indicate how the Korean 
Government ensures that no subsidies will be granted to ailing enterprises tha t do not have a 
credible restructuring plan based on realistic assumptions allowing the recipient to return to long 
term viability?  
ANSWER : The Korean government encourages industries to implement restructuring voluntarily 
under the lead of creditors of e ach company, and do not provide any subsidies to ailing companies.  
 
EU follow -up question : Is DSME among the companies having benefited from liquidity support, 
refund guarantees and credit from the State?  
 
ANSWER : 
All financial supports given to DSME have been decided by creditors based on market principles.  
 
 
EU follow -up question : International trade has been interrupted in a big extent since Hanjin 
Shipping represents 3% of world trade and 10 % of the EU trade with Korea. How is Korea 
guaranteeing the tr ansparency of present Seoul Court decisions about the use of the emergency 
funds to alleviate the current situation of the ships stranded on the sea?  
 
ANSWER :  
In principle, logistics matters following the file for court receivership is an issue that Hanji n 
Shipping have to deal with.  
 - Port loading and unloading costs will be paid from Hanjin Shipping vault cash,  
 - In case of insufficient money, unloading will be proceeded through supports such as ₩50 billion 
that Korea Development Bank will provide under shipping cost bond.  
 - Seoul Court's decision on the use of the emergency fund is not confirmed.  
 
EU follow -up question:  The government announced a stabilization fund of ₩400 billion (about 
million  380) to assist the SME affected by the HANJIN crisis. Could the government provide more 
information about the kind of instruments (grants or loans) and selection criteria?  
 
ANSWER :  
SMBA (Small and Medium Business Administration) supports SMEs affected b y the HANJIN crisis 
through urgent management stabilization fund which consists of export fund ( ₩100 billion), 
temporary management difficulty fund (200 billion won) and general management stabilization 
fund ( ₩100 billion).  
* The purpose of stabilization fund (loan) is to establish a stable management base for export 
SMEs through satisfying urgent fi nancial fund needs such as solving management difficulties or 
providing production cost for export product.  
 
EU initial question No 50 : Could Korea please explain how the announced restructuring measures 
will tackle the fundamental problems associated with  overcapacity in the shipbuilding market, in 
particular by reducing capacity on the product segments concerned (i.e. types of ships)?  
 
ANSWER : Each shipbuilding company is consulting with its creditors based on market principles to 
voluntarily implement re structuring through various measures.  
 
EU-follow -up question:  Could Korea please explain the impact of these restructuring measures on 
overcapacity in the shipbuilding market?  
 
ANSWER : 
We are not sure about the exact impact but we hope these efforts to red uce overcapicity done by 
many countries will bring fruitful achievements.  
 WT/TPR/M/346/Add.1  
 
- 148 - 
 
  ADDITIONAL QUESTIONS FROM SINGAPORE  
 
PART I: QUESTIONS REGARDING THE Secretariat Report  
 
Page 70 (Para 3.79) Pharmaceuticals  
 
We note that each batch of imported pharmaceutical pr oducts remains subject to batch release 
testing by the healthcare authorities, even if they have already been tested and released by the 
manufacturer and the health authority of the country of origin. What is the ROK's rationale and 
justification for the r equirement for imported pharmaceutical products to be batch tested before 
they can be released into the market?  
 
ANSWER : 
It is based on Article 53 of Pharmaceutical Act, Article 63~66 of Regulation on Safety of Medicinal 
Products, etc., and Regulation on the Designation, Approval Procedure, and method of Biological 
Products subject to National Lot Release, Notification of MFSD. This requirement is applied same to 
the domestic products.  
 
 WT/TPR/M/346/Add.1  
 
- 149 - 
 
  ADDITIONAL QUESTIONS FROM CHINA  
 
 
Questions based on Report by the S ecretariat (WT/TPR/S/346)  
Page 114 and 115, paragraph 4.2.1:  
"Farmland continued to decline, from 1.73 million hectares in 2012 to 1.68 million hectares in 
2015. More than half of the farmland (about 54%) is in rice paddies." Besides, in paragraph 4.2.2 
"Policy Developments", it is mentioned that "Based on the Framework Act, in 2013, a five -year 
(2013 -17) implementation plan —Agriculture and Rural Community and Food Industry 
Development Plan —was announced. It aims at increasing the volume -based self -suffici ency ratio of 
grains (including animal feed) to 30% in 2017."  
 
Question:1  
The area of farmland continued to decline and the Korean government mentioned its goal of 
increasing self -sufficiency ratio of grains. What are the major policy measures to achieve t his goal?  
 
ANSWER :  
Measures to increase grain self -sufficiency rate include;  
a) Expansion of agricultural infrastructure by preserving high -quality farmlands while increasing 
the usage of idle and reclaimed lands,  
b) Scale -up of rice production and distri bution and boost of consumption by scaling up the rice 
industry through fostering community -based agricultural enterprises and establishing large rice 
wholesalers, and fostering the rice processing industry through R&D support expansion, boosting 
rice cons umption through support for advertising and promoting sales of rice -processed foods,  
c) Improvement in self -sufficiency ratio of major grains including wheat and beans by stabilizing 
production/distribution by realizing farm mechanization and fostering loc al brands of agri -food 
products  
 
 
Page 118, paragraph 4.30:  
"Market price support (MPS), which peaked at ₩22 trillion in 2013, is implemented through 
government purchases and public stockholding schemes, supported by trade barriers (Section 
4.2.2.1). In the period 2011 -14, Korean agricultural commodity prices avera ged 1.9 times world 
levels (consumer nominal assistance coefficient (NAC)), compared to 1.7 times in 2008 -10"; Page 
115, paragraph 4.2.2: "Korea terminated the import -quota -only regime for rice from 1 January 
2015, and replaced it with an import tariff of 513%, and reserved the right to use the special 
agricultural safeguard on imports of rice while maintaining the 408,700 MT quota with an in -quota 
tariff of 5%." and "Foreign investment is allowed in the growing of cereal crops and other crops for 
food, exc ept for rice and barley growing. Foreign investment is allowed for the farming of animals, 
except farming of beef cattle where a less than 50% foreign equity restriction applies"; Page 120: 
Korea remains a net rice importing country. Imported rice represen ted 9.7% of national 
consumption in 2015, up from 7.5% in 2012."  
 
Question2:  
The price of Korean agricultural products continues to increase and Korea imposes high import 
tariff on rice. Foreign investment is not allowed for the production of rice, wheat and beef among 
other agricultural products. Does Korea have a plan to apply target price policy to decrease the 
price of rice and other agricultural products so as to enhance the price competitiveness of Korean 
agricultural products in the international ma rket? 
 
ANSWER : 
Currently Korea is implementing target price policy only on rice to provide a standard for direct 
payment, which is an income safety -net for farmers.  
 
 
Page 115, paragraph 4.2.2 (4.13): "A pilot project of the agricultural revenue insurance scheme 
was introduced for onions, soybeans and grapes in January 2015 for a period up to December 
2017. For farmers farming these products, if their revenue falls below the average revenue for the 
most recent five years, the Government covers part of the r evenue decrease."  
 WT/TPR/M/346/Add.1  
 
- 150 - 
 
  Question 3:  
Why are onions, soybeans and grapes chosen to be covered by the subsidy policy of agricultural 
revenue insurance scheme? Is grain including rice covered in the scheme? In the implementation 
of the policy, do farmers pay part  of the insurance fee? If yes, what is the proportion of their 
payment in the total insurance payment?  
 
ANSWER : 
Elements such as price volatility, production value, and operability of insurance products are 
factored in to select items covered by the insura nce scheme. A pilot project on soybeans is 
underway and rice is not included in the subjects for pilot projects. Part of the insurance fee is 
covered by farmers. The total insurance payment differs in each province but it stands at 25% on 
average.  
 
 
Page 1 18, paragraph 4.31: "Direct payment programmes have been implemented with different 
objectives, including early retirement payment, rice income compensation (Section 4.2.3), 
promotion of environmentally friendly agriculture".  
 
Question 4:  
Please explain i n detail the operation and effect of the three direct payment programmes including 
early retirement payment, rice income compensation and promotion of environmentally friendly 
agriculture. What are the conditions for issuing subsidy for early retirement pa yment and 
promotion of environmentally friendly agriculture? Is there surveillance of applicants over their use 
amount of pesticides, chemical fertilizers and quality of water and soil as well as resources and 
other indicators? If there is, how is the surv eillance carried out?  
 
ANSWER :  
a) Payments for early retirement from farming  
This measure was established to encourage the retirement of aged farmers and help the expansion 
of young professional farmers' farming scale. The beneficiaries are limited to the  farmers who 
registered as an agricultural business entity and meet the following conditions simultaneously;  
 - farmers who are between 65 and 74 years of age as of 31 December 2016  
 - farmers who have been engaged in farming for more than 10 years just pr ior to the date of 
application for the payment  
 
b) Fixed Payment Scheme for Paddy Fields  
This is a direct payment scheme adopted in 2005 and aims to compensate income losses and help 
stabilizing management of rice producers. The scheme is consistent with t he criteria in Annex 2, 
paragraph 6. Production is not required to receive the payments. The amount of payments is not 
related to the type or volume of production.  
 
c) Payments for promotion of environmentally friendly agriculture  
This programme is to comp ensate farmers for income losses incurred in the course of 
implementing environment -friendly farming practices for the purpose of ensuring the conservation 
of agro -environment in rural areas. Direct payments are provided for certified producers. NAQS 
and p rivate certification organizations issue certification based by detailed inspection standards, 
including pesticides residue level, amount of chemical fertilizers, and quality of soil.  
 
 
Page 120, paragraph 4.37:  
"it is mentioned about the government purch ase and public stockholding of rice that "Purchase 
under this scheme ranged between 8.3% and 9.1% of domestic production in 2012 -15."; 
paragraph 120, paragraph 4.38: The rice income compensation scheme, introduced in 2005, 
includes both fixed and variable payments. Fixed payment for paddy fields was increased from 
₩800,000 (US$727) per hectare on average in 2013, to ₩900,000 (US$818) in 2014, and then to 
₩1 million (US$909) in 2015. Variable payment is determined according to the difference between 
a target  price and each year's post -harvest price. If the post -harvest price is lower than the target 
price, farmers receive 85% of the difference, after deduction of the fixed payment. The target 
price is changed every five years and it is ₩188,000 (US$171) per 8 0 kilograms of rice from 2013 
to 2017, up from ₩170,083 (US$155) before 2012. According to the OECD, the variable payment 
was not triggered for 2011 and 2012, but was paid in 2014 due to the decrease of the 
post-harvest price of rice and the increase of th e target price in 2013.25 The rate of the variable WT/TPR/M/346/Add.1  
 
- 151 - 
 
  payment was ₩4,226 (US$4) per 80 kilograms, amounting to ₩266,238 (US$242) per hectare. In 
2014, combined support payment totalled ₩950 billion (compared with ₩617 billion in 2011)."  
 
Question 5:  
It has b een 11 years since Korea started to apply target price policy for rice in 2005. What is the 
outcome of the policy? Compared with that of the public stockholding policy of rice, how is the cost 
of target price policy?  
 
ANSWER : 
Currently Korea is implementin g target price policy only on rice to provide a standard for direct 
payment, which is an income safety -net for farmers.  
The public stockholding and target price policy on rice have different policy targets and operation 
methods and thus it is difficult to compare the cost of two schemes.  
 
 
Page74（Para1)  
Following efforts to consolidate all imported food regulations, which were scattered among various 
acts, into a single act, a Special Act on Imported Food Safet y Management, effective as of 
4 February 2016, requires all foreign food facilities and establishments to be registered by the 
MFDS. Reportedly, this act is to facilitate sound transactions and enhance public health by 
guaranteeing the safety of imported foods in the domestic market and food exported o verseas, to 
promote quality, and to provide correct information, as well as to provide the legal grounds to take 
measures if foreign manufacturers decline audits. A six -month grace period for foreign facility 
registration, until 3 August 2016, was granted to allow a smooth transition.  
 
Question 6:  
In accordance with this Act, Korea will prohibit the import of any foodstuff supplied by any foreign 
manufacturers that reject supervisions. Please specify any mechanisms preventing the aforesaid 
measure from any  use for the purpose of trade prote ction.  
 
ANSWER : 
Where the Minister of Food and Drug Safety (MFDS) intends to conduct an on -site inspection of a 
foreign food facility, he/she shall notify the foreign food facility of the fact in advance, directly or 
via the government of an exporting country. The foreign food facility shall send a reply on whether 
to accept the inspection within 15 days of such notification, and the foreign food facility concerned 
may adjust its schedule in consultation with the MFDS.  
 
Where the government or foreign food facility concerned refuses an on -site inspection, the MFDS 
may take measures to suspend importation under Article 6(2) of the Special Act on Imported Food 
Safety Management.  
 
 
Question 7:  
Are there mechanisms to guard aga inst any corrupt practices or obstructions by the officials 
conducting food inspection activities in foreign countries?  
 
ANSWER : 
All Korean public officers are subject to "Improper Solicitation and Graft Act" and personal 
jurisdiction is established over a ll Korean public officers. If an inspector performs his/her duties as 
solicited, or receives bribery, improper gifts or etc, they will be punished in accordance with the 
Act even they violate against the act outside of Korean territory.  
 
 
Question 8:  
Please specify the payer responsible for the cost arising from the food inspection activities by 
related agencies of Korea.  
 
ANSWER : 
MFDS will be responsible for the costs incurred from the on -site inspection under Article 6. 
However, in case of the on -site in spection for the release of import suspension, the foreign food 
facility should cover all expenses incurred in inspection.  
 WT/TPR/M/346/Add.1  
 
- 152 - 
 
  Page 144 of the Report (4.163)  
 "…Foreign investment in basic telecommunication services is subject to a ceiling of 49%, while 
non-infrastructure based 9resale) services and value -added telecom services are fully open to 
foreign investment. The authorities stated that, for basic telecommunication services, foreign 
corporations from certain RTA partners and which had passed the public i nterest review, are not 
subject to this investment restriction."  
 
Question 9:  
Please further explain the policies and practices in public interest review as well as the specific 
procedures and mechanism.  
 
ANSWER : 
Public interest review is a system to asse ss whether share ownership (15% or more), change of 
largest shareholder, etc. of a basic telecommunication service operator harm public interest. Basic 
telecommunication service operators or shareholders of basic telecommunication service operators 
can req uest public interest review to the Ministry of Science, ICT and Future Planning (MSIP).  
 
Question 10:  
Is it possible to provide the current situation of the public interest review, including information on 
the RTA partners that had passed the public intere st review?  
 
ANSWER : 
One or more cases of public interest reviews are conducted every year.  
 
 
Page 143 (Footnote 62 of Paragraph 4.160)  
"Several mobile virtual network operations (MVNOs) are also providing mobile telephone services; 
however, their market sh ares are not significant."  
 
Question 11:  
Please introduce the entry requirements for mobile virtual business and the current market 
development situation, including the number of enterprises, their profitability and quality of 
services.  
Table 4.21 Ownersh ip structure of major telecom operators, December 2015 and May  2016 
Page 143 of the Report (The 4th Column of Table 4.21)  
"State participation: none"  
Page 143 of the Report (Note a of Table 4.21)  
"a Korea's GATS commitments on KT said that it would not be more than 33% foreign owned, 
i.e. not subject to the normal 49% foreign equity restriction for other infrastructure -based 
suppliers. However, this policy was changed and foreign participation reached 49%."  
 
ANSWER : 
According to the Telecommunications Busin ess Act, operating an MVNO business requires a Special 
Category Telecommunications Business registration and 300 million or ₩3 billion as paid in capital, 
depending on the requirements. Currently 39 MVNOs are in operation. Since MVNO business was 
fully int roduced in July 2011, the number of subscribers has grown (10.9% of the mobile 
communication market share), profitability has improved and operators are offering similar 
services as MNOs (e.g. LTE plans).  
 
 
Question 12:  
Does Korea's state capital have any equity in other telecom areas and what is the current 
situation?.  
 
ANSWER : 
The state does not own any equity of basic telecommunication business operators.  
 
 
Question 13  
Please explain the changed policy on KT as mentioned in the note of Table 4.21, and wh ether 
there will still be any change to the future ratio of equity.  
 WT/TPR/M/346/Add.1  
 
- 153 - 
 
  Page 143 of the Report (Paragraph 4.161)  
"Licensing and pricing of the telecommunications market is the responsibility of the Ministry of 
Science, ICT and Future Planning (MSIP). The Kore an Communications Commission (KCC) under 
the President's Office is the regulatory entity responsible for the promotion of fair competition and 
consumer protection in the telecommunication markets."  
 
ANSWER : 
The ceiling on foreign -owned equity was eased fro m 33% to 49% for the effective privatization of 
KT. 
 
 
Question14:  
Please explain if there is any overlap in the supervising mandates between the Ministry of Science, 
ICT and Future Planning (MSIP) and The Korean Communications Commission (KCC).  
 
ANSWER : 
The MSIP take charge of the pre -regulation of communication and pre -paid broadcasting sectors, 
meanwhile, the KCC is mainly responsible for the post -regulation of communications and terrestrial 
broadcasting. The MSIP and the KCC function independently from each other as the former is an 
executive department of the cabinet, while the latter is a government agency directly responsible 
to the President.  
 
 
Page 144 of the Report (Paragraph 4.169)  
"In 2012, Korea revised its privacy law to require data breach not ification, with further revisions in 
2014 to increase data breach fines and allow individuals to claim statutory compensation. Korea's 
privacy laws also include the Act on Promotion of Information and Communication Network 
Utilization and Information Prote ction, and the Personal Information Protection Act; the latter has 
a general notification requirement in the event of a data breach. These privacy laws apply to all 
telecom -related areas, including Internet services, telecommunication services, data servic es, and 
coverage of data breaches by computer services. Personal information is defined as any 
information related to persons (privacy, address, etc.). Following this, in March 2016, Korea 
introduced punitive damages of up to 3 times as the amount of damag es in the Network Act in 
order to strengthen the remedy for data breach victims."  
 
Question 15:  
Please introduce the specific requirements and measures in terms of data storage and 
cross-border data flow in order to enhance data protection and prevent data  leakage.  
 
ANSWER : 
Regulations related to data storage: The directly related laws are Article 28 and 29 of the Act on 
Promotion of Information and Communication Network Utilization and Information Protection and 
Article 15 and 16 of the Enforcement Decree of the Act. For further reference, please refer to 
Chapter 4 of the Act and the Enforcement Decree.  
Regulations related to cross -border data flow: Article 63 of the Act and Article 67 of the 
Enforcement Decree  
 
 
Question 16:  
Please provide the definition o f the above -mentioned "data" and its scope.  
 
ANSWER :  
The intention of the question about the definition of "data" is unclear, but under the jurisdiction of 
the Korea Communications Commission, the definition of personal information is set forth in Article  
2, Paragraph 1.6 of the Act on Promotion of Information and Communication Network Utilization 
and Information Protection.  
 
Question 17:  
Please provide the definitions and correlation of the above -mentioned "Internet services", 
"telecommunication services"  and "data services" in telecom -related areas. How do they 
correspond to the telecommunications business in the "Telecommunications Business Act"? What 
types of services does cloud computing belong to?  WT/TPR/M/346/Add.1  
 
- 154 - 
 
  ANSWER : 
Information and communications service provide rs are subject to the Act on Promotion of 
Information and Communication Network Utilization and Information Protection. The definitions of 
"information and communications services" and "providers of information and communications 
services" are set forth in  Article 2, Paragraph 1.2 and 1.3 of the Act.  
According to the Telecommunications Business Act, telecommunications services are divided into 
facilities -based, value -added and special category telecommunications services, and most internet 
services are inc luded in value -added telecommunications services.  
 
Question 18:  
Please further illustrate the specific regulations of data breach fines and data leakage notifications.  
 
ANSWER : 
Regulations related to data breach fines: Article 64 -3, Paragraph 1.6; Article  71, Paragraph 1.4 
and 1.5; Article 73, Paragraph 1; and Article 76, Paragraph 1.3 of the Act on Promotion of 
Information and Communication Network Utilization and Information Protection  
Regulations related to data leakage notification: Article 76, Paragra ph 1.2 -3 and 2 -4  
 
 
Question 19:  
Please further explain the government's law enforcement working framework, mechanism and 
procedures for data security management, users' personal information protection, and data 
breaching in the field of telecommunication -related areas.  
 
ANSWER : 
For violations of personal information protection law, the Korea Communications Commission may 
impose penalty surcharge, administrative fines, corrective orders, punishment (imprisonment 
or/and fine) through legal judgements, compen sation and confiscation or additional collection 
charge.  
- Compensation: Article 32 and 32 -2 of the Act on Promotion of Information and Communication 
Network Utilization and Information Protection  
- Penalty surcharge: Article 64 -3  
- Punishment: Article 71, 73 and 75  
- Confiscation or additional collection charge: Article 75 -2 
- Administrative fines: Article 76  
 
 
Question 20:  
Please introduce the latest development in the data protection legislation in Korea.  
 
ANSWER : 
Penalty surcharge for a personal info rmation leak increased from 100 million or less to 3% of sales 
related to the violation, and the imposition may be enforced without any causal relationship 
between protection measures and the leakage. (Entry into force: November 2014)  
Statutory damages wer e introduced to allow a claim of 3 million or less without proving the 
amount of damage. (Entry into force: November 2014)  
Punitive damages were introduced to allow compensation up to three times the amount of 
damage. (Entry into force: July 2016)  
An advis ory right on disciplinary measures was introduced for CEOs and executives of a service 
provider in the case of a violation of regulations on personal information.  
 
Paragraph 3.15  
Since July 2014, a de minimis clearance process for consumption goods purcha sed online and 
priced at US$100 – and as from December 2015 US$150 – or lower have been exempt from 
documentation and taxation requirements; for goods bought from U.S. websites the cap is raised 
to US$200 under the KORUS FTA.  
 
Question 21:  
The Report by t he Secretariat made a mention of the taxation for goods purchased online in 
Para.3.15. Regarding the goods purchased online that exceed the duty -free quota, please provide 
information on the components of their duty -paying value.  
 WT/TPR/M/346/Add.1  
 
- 155 - 
 
  ANSWER : 
For goods traded through e -commerce of which price exceeds US$150 of the baseline for tax 
exemption, same tax rates are applied as they are for general imports.  
The price is determined based on the CIF which combines the price of goods with cost, insurance 
and freight. It  is determined in accordance with Article 30 through Article 35 of the Customs Act of 
Korea, which is in line with the WTO Agreement on Customs Valuation.  
 WT/TPR/M/346/Add.1  
 
- 156 - 
 
  ADDITIONAL QUESTIONS FROM JAPAN  
 
 
REPLIES  TO ADVANCE  WRITTEN  QUESTIONS(RD/TPR/696)  
 
(Question 1 ) [related to Japan's Question 1 of advance written questions]  
If Korea is fully in compliance with the relevant provision of GATS, as provided in the answer, 
Japan would like to clarify the reasons why Japanese broadcasting contents (such as drama and 
enterta inment) are not allowed to be aired on terrestrial broadcasting. Also, if there is an 
administrative guidelines to substantially prohibit or restrict Japanese content's access to Korea's 
terrestrial broadcasting, please provide us with and explain the deta il of them.  
 
ANSWER : 
We do not have any administrative guidelines.  
 
 
(Question 2 ) [related to Japan's Question 2 of advance written questions]  
Is it correct that co -produced audiovisual works with Japan and Korea can be granted benefit as 
well as EU or Fra nce based on Most -Favored -Nation Treatment?  
 
ANSWER : 
Of course, we do not have any administrative guidelines.  
 
 
(Question 3 ) [related to Japan's Question 3 of advance written questions]  
Could Korea clarify the first half of our original question: "whether there have been any cases 
where imports from Korea were excluded from an application of WTO safeguard measures 
pursuant to such provisions under the RTAs including which entered into force before 2012? If any, 
could Korea identify the cases?"  
 
ANSWER : 
Korea confirms that there has not been any case where a safeguard measure was imposed on 
goods imported from or exported to Korea pursuant to bilateral trade agreements.  
 
 
(Question 4 ) [related to Japan's Question 5 of advance written questions]  
We have not ye t received the answer about first question: "Assuming the provisions in amended 
Patent Act effective as of January 1, 2015 seem consistent with the PLT, we would like to know if 
Korea is considering to conclude Patent Law Treaty ("PLT") in near future. "  
Please answer to this question.  
 
ANSWER : 
No plans as of yet  
 
 
(Question 5 ) [related to Japan's Question 7 of advance written questions]  
According to the answer, "KDB and KEXIM's decision to support DSME was commercially 
reasonable decision". Japan recognize s private financial institutions are also creditors and 
stakeholders. For transparency of the degree of the involvement by public financial institutions, 
Japan would appreciate it if Korean government provides information on 5 years transition of ratio 
of KDB, KEXIM, other public financial institutions and private financial institutions to the total 
amount with regard to:  
・financial exposure of DSME  
・shareholders of DSME  
 
ANSWER : 
Exposure and shareholding ratio for the past 5 years relating to DSME is info rmation pertaining to 
individual firms, and thus the FSC does not have such data.  
 
 WT/TPR/M/346/Add.1  
 
- 157 - 
 
  ADDITIONAL QUESTIONS FROM INDIA  
 
 
Page 32 : Para 2.25  
 
It has been stated that the Foreign Trade Act is the main legislation on international trade.  
 
Question : 1  
 
Whether  Foreign Trade Act provides for any institutional mechanism for handling trade complaints 
of foreign importers? Even if there is any such institutional mechanism independent of Foreign 
Trade Act, the relevant details may be provided. If there is no institu tional mechanism, the 
avenues available to the foreign importers or the foreign Missions for taking up the trade 
complaints may be elaborated.  
 
ANSWER :  
 
1. Paragraph (4) of Article 44 of Foreign Trade Act stipulates as follows:  
"The Minister of Trade, Indus try and Energy may initiate conciliation of a dispute or 
recommend the parties involved to make an arbitration agreement for the settlement of 
the dispute, under conditions prescribed by Presidential Decree, if considered necessary 
for settling the dispute  under paragraph (1) in a prompt and fair manner or if the parties 
to the trade dispute apply therefor."  
2. Apart from Foreign Trade Act, there is an independent arbitration institution called 
"Korean Commercial Arbitration Board" (KCAB) which was established  in 1966 to resolve 
commercial disputes both domestically and internationally. It provides dispute resolution 
services such as arbitration and mediation.  
3. Mediation service offered by KCAB is an entirely voluntary, risk -free process in which a 
neutral staff  of KCAB helps the parties to a dispute to negotiate their own settlement. The 
mediator will be unbiased and shall not judge either party, while encouraging open 
communication, helping to identify the specific areas of dispute and agreement, and 
working to ward bringing the parties to a negotiated settlement specified and reached by 
the parties themselves.  
 
 
Page 87 : para 3.138  
 
The individual consumption (special excise) tax applies to a wide range of goods, including luxury 
products. Rates vary from 5% on  cars of less than 2000 cc and motor cycles, to 20% (e.g. luxury 
items including bags). Flexible rates are used to boost or discourage consumption of certain 
products to allow efficient management of the economy in case of need of business cycle 
adjustment , price stabilisation etc.  
 
Question 2:  
 
Republic of Korea may indicate the individual consumption tax or luxury tax presently applicable 
on jewellery and the basis for including jewellery for imposition of luxury tax.  
 
ANSWER :  
The individual consumption tax applies to jewelry, pearl, tortoise -shell, coral, amber, ivory, and 
their products by the "Individual Consumption Tax Law"  
The tax rate of 20% is levied on the excess of the manufactured or imported price over five million 
won. 
 WT/TPR/M/346/Add.1  
 
- 158 - 
 
  ADDITIONAL QUESTIONS F ROM INDONESIA  
 
 
SECRETARIAT REPORT  
 
Page 68 Para 3.70  
"During the review period, the institutional setting in this area remained relatively unchanged. The 
Korean Agency for Technology and Standards (KATS), an affiliate of MOTIE, sets, administers, and 
disseminates Korean Industrial Standards (KSs) on the basis of the National Standardization Act 
and the Industrial Standardization Act. In December 2013, KATS was reorganized to strengthen 
the role of industrial standards and to augment their economic added va lue. KATS, the official 
enquiry point on industrial products under the WTO Agreement on Technical Barriers to Trade, is in 
charge of planning and coordinating national standards policy. The Korea Standards Association 
(KSA), a KATS affiliate with public an d private sector membership, provides comprehensive 
knowledge services (standardization, standards, certification and training), and several private 
bodies perform standardization -related tasks. Other bodies performing standards -related work 
include the Ko rea Research Institute of Standards and Science (responsible for metrology 
standards and measurement) (KRISS), and the Telecommunications Technology Association (TTA), 
an agency affiliated with the Korea Communications Commission, which is responsible for group 
standards for telecommunications, information technology, radio communications, and 
broadcasting. The National Standards Council reviews general plans for the introduction of national 
standards and coordinates the standards -related activities of the different ministries."  
 
Question:  
1) What is the base reference to the Telecommunications Technology Association (TTA) 
standards for telecommunications and information technology? Does the  reference comply 
with international standard s? 
 
ANSWER : 
The TTA is a n on-government SSO which sets Voluntary Consensus standards related to ICT. 
When there are international standards such as ITU, ISO or IEC, TTA use them as reference for 
TTA standards.   
 
Page 57 Chart 3.3 (Tariff escalation by 2 -digit ISIC industry, 2012 an d 2016)  
 
 WT/TPR/M/346/Add.1  
 
- 159 - 
 
  Questions:  
2) Based on the above chart, average applied rate in manufacturing increased from 10.8% to 
11.3% (i.e. tariff escalation). The Republic of Korea still applies high tariff and 
non-ad valorem  tariff, especially on food, beverages, and toba cco products. Why does the 
Republic of Korea still maintains a policy of applying high tariff and non -ad valorem  tariff?  
 
ANSWER : 
Tariff rates of Korea were approved at the Uruguay Round in an effort to reflect different economic 
situation of each country then. It seems that Korea's basic tariff rates are being reduced slowly, 
but we are steadily lowering applied tariffs through negotiations of bilateral and multilateral FTAs.  
 
 
3) Indonesia hopes the Republic of Korea could consider to further reduce or elimi nate those 
tariffs in accordance with the Republic of Korea's commitment in the WTO. From the 
perspective of a developed country such as the Republic of Korea, isn't it the case that the 
Republic of Korea is obliged to reduce or eliminate tariff barriers?  
 
ANSWER : 
Tariff rates of Korea were approved at the Uruguay Round in an effort to reflect different economic 
situation of each country then. It seems that Korea's basic tariff rates are being reduced slowly, 
but we are steadily lowering applied tariffs thr ough negotiations of bilateral and multilateral FTAs.  
 
 
Page 68 Para 3.71  
 
"Standard development remains government -led, and is a significant element of Korea's industrial 
policy. The KATS implemented its fourth National Standards Plan (2016 -20) with key p olicy goals 
including the development of standards for new growth engine activities, for improving people's 
daily life, and the eradication of redundant certification systems. Its third National Standards Plan 
(2011 -15) had the same key policy goals. At pr esent, it aims to advance the national standards 
system, strengthen the standard technology infrastructure, actively participate in international 
standardization activities, and assist the private sector in increasing its capacity to develop 
standards."  
 
Questions:  
4) Based on documents G/TBT/N/KOR/563 and G/TBT/N/KOR/599, the Republic of Korea is 
drafting a standard and specification for Wood Products. When will this standard and 
specification policy for Wood Products be implemented?  
 
ANSWER : 
The standard and  specification policy for Wood Products is already implemented for 14 Wood 
Products except for sawnwood. The standard for sawnwood (Annex 1) will be promulgated in the 
end of 2016 and implemented on 1 July 2017.  
 
5) What is the scope of the products in the st andard and specification for Wood Products 
policy?  
 
ANSWER : 
The policy covers 15 wood products (sawnwood, treated wood, flame retardant treated wood, 
wood plastic composites, glulam, ply wood, particle board, fiberboard, oriented strand board, wood 
floorin g, wood pellet, wood chip, wood briquet, charcoal and agglomerated wood charcoal) 
stipulated in the Act on the sustainable use of Timber.  
 
6) Could we obtain the English version of the standard and specification for Wood Products 
policy?  
 
ANSWER : 
There is no English version  
 
7) In light of this standard and specification policy for Wood Products mentioned above, 
would the Republic of Korea be willing to work with Indonesia on formulating an MRA on 
wood products?  WT/TPR/M/346/Add.1  
 
- 160 - 
 
  ANSWER : 
The standard and specification policy for W ood Products is to provide information on the wood 
products produced in Korea or imported to Korea to the domestic consumers, and each wood 
product requires specific technique. Therefore, rather than comprehensive MRA with exporting 
countries, we are tryin g to appoint Foreign Quality Inspection Institute (FQII) for each product and 
manage them for improved efficiency.  WT/TPR/M/346/Add.1  
 
- 161 - 
 
  ADDITIONAL QUESTIONS  FROM  INDONESIA II 
 
SECRETARIAT REPORT  
 
4 Trade Policies by Sector  
4.4 Energy  
4.4.4 Coal  
 
Page 129 Para 4.91  
"Korea also  has about 1.4 billion tonnes of coal resources. It has five coal mines, three of which 
are operated by the state -owned Korea Coal Corporation (KCC). Production of coal is subsidized in 
Korea, and the cost of production is higher than the cost of imports. Subsidies for coal production, 
ranging from ₩151.8 billion in 2012 to ₩236.5 billion in 2014 and then falling to ₩215 billion in 
2015, are to be terminated by 2020. Subsidies are mainly used for the production of coal, and its 
use in the form of charcoal briquettes by low -income households, covering  briquette 
manufacturers, industrial accident insurance premiums, and school expenses for children of mine 
workers. However, as these subsidies tend to distort resource allocation and encourage excessive 
consumption of coal, the Government may consider oth er measures to support low -income groups. 
The Government provides support to a part of heating cost to low -income groups."  
 
Questions:  
 
1. What is the percentage of subsidy being applied? What mechanism is used for granting the 
subsidy as well as in determini ng the percentage of the subsidy? How much produced coal is 
given to low income households?  
 
ANSWER : Coal subsides provided only for briquette production and briquttees in Korea are only 
used by low -income households.  
 
2. What are the trade effects of the s aid subsidy, considering that such subsidies could lead to an 
unbalanced competition between imported and domestically produced coal?   
 
ANSWER : Coal subsides provided only for briquette production and no subsidy provided for coal 
used for power generation,  therefore it does not affect trade.  
 
3. Is the coal subsidy a part of import substitution strategy?   
 
ANSWER : No, no subsidy provided for coal used for power generation, therefore it does not affect 
trade.  WT/TPR/M/346/Add.1  
 
- 162 - 
 
  ADDITIONAL QUESTIONS FROM INDONESIA II I 
 
 
Secretari at Report  
Page 75 Para 3.94  
"Since 2015, Korea has been in the progress of shifting to a new positive list system (PLS) for 
agrochemical residues which would inhibit the use of non -registered pesticides which are not 
evaluated by scientific assessment and would no longer allow imports of food containing 
agrochemical residues unless the substance has been listed, or approved, for the commodity in 
question and an MRL has been established. The MFDS plans to first complete the transition to the 
PLS for tropical  fruit and nuts/seeds by the end of 2016; it then plans to complete the transition 
for all other crops by the end of 2018 and veterinary drugs by 2020. In the process of making this 
shift, Korea is requiring new import tolerances for agrochemicals not alre ady registered for use in 
the country. This process may prove a significant challenge to exporters of fruit and grain if 
smooth transition to the PLS may be required. After a single MRL violation by an export shipment 
to either Korea or another country, Ko rea may impose restrictive import requirements on that 
product's grower, shipper, and importer, and may require a number of compliant shipments to 
Korea before the requirement is removed."  
 
Questions:  
1. Indonesia believes that the Republic of Korea's noti fication to impose sanitary and phytosanitary 
(SPS) measures including the uniform maximum residue level standard of 0.01 ppm will create 
unnecessary barriers to trade. The measures will create new burdens on exporting countries like 
Indonesia. Indonesia t herefore would like to request the Government of Korea to reconsider the 
adoption of the new measures.  
 
ANSWER : 
PLS is not a new policy. Many countries like Japan, Hong Kong, and Chinese Taipei etc. already 
adopted PLS. Also, USA, Australia, New Zealand et c. adopted a similar policy, zero -tolerance). In 
addition, Korea has been announced PLS enforcement since 2011 and make WTO notice in 2014.  
 
 
2. Would the Republic of Korea please share the progress on the plan to set the new positive list 
system for agro chemical residues which will become effective by the end of 2016 for nuts, tropical 
products and will become effective for other agricultural commodities by the end of 2018?  
 
ANSWER : 
MFDS plans to hold four presentations in a year to help other countries g et a clear picture of 
Korea's progress on PLS adoption. Also, MFDS plans to notify the adoption of second phase of PLS 
to WTO in June 2017.  
 WT/TPR/M/346/Add.1  
 
- 163 - 
 
  QUESTIONS FROM DOMINICAN REPUBLIC  
 
 
PREGUNTAS  
 
1- En el apartado 3.23 hacen mención de que las autoridades coreanas han utilizado 12,243, 
de partidas para las exportaciones. En ese sentido, nos interesa escuchar las explicaciones 
ya que se basan en la Nomenclatura del SA, que mundialmente está dada por partidas de 
4 dígitos y subpartidas de 6 dígitos, nacionalmente se i ncrementan para la clasificación  
arancelaria nacional que generalmente consisten en subpartidas de 8 dígitos.  
 
ANSWER : 
All export and import goods of Korea are classified by the Harmonized System of Korea (HSK). 
Based upon the HS Convention of the WCO, th e HSK is divided into 10 -digit level to cover a total 
of 12,243 tariff lines. When necessary, the HSK is revised in consideration of data, including trade 
volume of export and import goods after consultation between related ministries, industries and 
exper ts. 
 
 
3.2.4.2 Contingentes arancelarios autónomos  
 
3.53. Corea aplica aranceles preferenciales por medio de contingentes arancelarios autónomos, 
principalmente para las materias primas, los insumos, los productos semielaborados, los 
componentes, las pieza s de recambio y las máquinas (cuadro A3.6); la finalidad de esta medida es 
ayudar a estabilizar los precios aumentando la oferta y/o la competitividad de la agricultura y la 
ganadería nacionales, cuyos productos están sometidos a la creciente presión de la s importaciones 
que reciben un trato preferencial en virtud de distintos ACR y/o ALC.43 En 2016 los contingentes 
arancelarios autónomos abarcaban 116 partidas arancelarias a nivel de 6 dígitos (incluidas 
4 subpartidas adicionales en la misma línea arancela ria), en comparación con 235 en 2012. De ese 
total, 91 partidas estaban libres de contingentes. En 2015 Corea estableció una lista de los 
productos destinados a la alimentación animal para los cuales dependía de importaciones 
(lactosuero, "pellets" de mand ioca, cebada sin mondar y avena); estableció un contingente 
arancelario para la pulpa de remolacha, las tortas oleaginosas de semillas de algodón para el 
cultivo de setas y las anguilas jóvenes que se utilizan en la acuicultura, con la finalidad de hacer 
bajar el elevado precio de las importaciones de esos productos; e incrementó el volumen del 
contingente arancelario para el azúcar (de 40.000 a 90.000 toneladas métricas) para estabilizar 
los precios al por menor en el mercado interno. En 2016, entre otras cosas, redujo el contingente 
arancelario para las anguilas, las grasas animales y vegetales y el azúcar refinado, y aumentó el 
correspondiente al lactosuero y las raíces forrajeras; asimismo se abrieron contingentes 
arancelarios para todas las importacione s de semillas de algodón. Los tipos arancelarios dentro del 
contingente seguían oscilando entre el 0% y el 10% (mandioca en rodajas para bebidas 
alcohólicas), mientras que los tipos aplicados fuera de los contingentes iban del 1% al 40% 
(lactosuero para pi ensos). Los contingentes arancelarios autónomos se revisan anualmente.  
 
2- ¿Puede indicar Corea si piensa modificar dichos contingentes en un futuro próximo?.  
 
ANSWER : 
Quota tariff is applied temporarily on purpose on a yearly basis and is revised at the en d of the 
year. During the revision, goods covered by quota tariff can be added and deleted. And the 
covering period of the tariff can also be extended.  
 
3- ¿Tiene Corea intención de establecer nuevos contingentes de otro tipo, como por ejemplo 
los agrícolas?  
 
ANSWER :  
Autonomous tariff quotas are administered on 23 agricultural items until the end of 2016. Please 
refer Table A3.6 of the secretariat report for the list of agricultural items set for autonomous tariff 
quotas.  
Furthermore, Korea has no plan to est ablish a new regime for quota tariff system. Goods covered 
by quota tariff may differ depending on the economic situation of the year.  WT/TPR/M/346/Add.1  
 
- 164 - 
 
  QUESTIONS FROM PARAGUAY  
 
 
Preguntas sobre el informe del gobierno  
 
1- En base a lo manifestado en el punto 1.1 "...al ti empo que mantiene en el plano internacional 
su compromiso de apertura de los mercados y liberalización del comercio"; se consulta ¿Si el el 
gobierno coreano preve algun sistema de autorización de mayor celeridad que permita la 
importación de productos agrí colas y ganaderos al mercado coreano, fundamentalmente en los 
rubros de carne bovina, soja y derrivados, azucar orgánica, maíz, trigo, arroz, entre otros?  
 
ANSWER :  
Korea determines market access of animal products such as beef based on the results of risk  
analysis by MAFRA and import sanitation assessment of MFDS upon official request from an 
importing country. There has been no official request for market access of beef from Paraguay.  
Paraguay soybeans, wheat and rice are already being exported to Korea.  
 
 
2- Durante el año 2016, el gobierno de la República de Paraguay ha sido informado sobre la 
modificación de reglamentos y requerimientos técnicos en el Control de Seguridad Sanitaria de 
Productos Importados. Sin embargo todos los documentos y explicacione s recibidas acerca del 
cambio de régimen en esta materia hace un proceso de importación de productos cárnicos al 
mercado coreano más complejo y burocratico. ¿Podría el gobierno de la República de Corea dar 
una explicación más precisa sobre que implica esta s modificaciones y en que consiste?  
 
ANSWER :  
The Korean import assessment process consists of import sanitation assessment by the MFDS and 
disease assessment (risk analysis) by the Ministry of Agriculture, Food and Rural Affairs (MAFRA). 
Check the brochur e for those changes in detail on website.  
http://www.mfds.go.kr/index.do?x=0&searchkey=title:contents&searchDiv=&mid=699&searchwor
d=수입&cd=&y=0&pageNo=1&seq=22651&cmd=v  
 
 
3. Con respecto a la futura implementación del Acuerdo sobre Facilitación de comercio,  
consultamos si la República de Corea contará con algún esquema de facilitación de los mecanismos 
y procedimientos de importación de bienes agricolas provenientes de países en desarrollo sin 
litoral marítimo.  
 
ANSWER :  
Customs and quarantine procedures for  import of agricultural goods are conducted through a 
single window system pursuant to the relevant provisions of Article 10.4 of TFA. Currently there is 
no plan of introducing specific import procedures including those for landlocked developing 
countries.  Furthermore, Korea deposited the instrument of ratification on the WTO Trade 
Facilitation Agreement to the WTO Secretariat in 2014. Korea also revised the Customs Act and 
the Enforcement Decree of the Act in 2015, accordingly.  
Korea plans to organize a Na tional Committee on the WTO TFA in line with the entry into force of 
the Agreement, and to establish and implement the Basic Plan of the TFA.  
 
 
1- En la página 109, en el punto 3.4.2.2 Otras subvenciones, se menciona el siguiente párrafo:  
 
 
"3.166. En virt ud de la Ley de Ayuda para el Ajuste Comercial, desde abril de 2007 los fabricantes 
coreanos afectados negativamente por un acuerdo bilateral de libre comercio pueden obtener una 
compensación del Ministerio de Comercio, Industria y Energía (MOTIE) y del Mi nisterio de Trabajo 
(MOL) mediante préstamos, inversiones y apoyo para la colocación de personal. Se adoptan 
medidas para facilitar el ajuste de las industrias si las ventas o la producción disminuyen más de 
un 10% (desde 2012; este porcentaje se había red ucido del 25% al 20% en 2011), o bien si, 
teniendo en cuenta los ingresos de explotación, el número de empleados, la tasa de explotación, el 
inventario, etc. de la empresa, se considera que el daño es equivalente a más del 10% durante un 
período prolongado  por efecto de la competencia de las importaciones. Las autoridades no han 
facilitado datos sobre la ayuda para el ajuste comercial."  WT/TPR/M/346/Add.1  
 
- 165 - 
 
  El Paraguay consulta ¿Si este mecanismo se aplica de forma independiente a las salvaguardias 
bilaterales previstas en dete rminados Acuerdos Comerciales firmados por Corea, o se podrían 
aplicar de manera simultánea?. Asimismo, se consulta: ¿Si este mecanismo tiene un plazo de 
tiempo consistente con el cronograma de desgravación o si es indefinido?  
 
ANSWER : 
Korea's Trade Adjust ment Assistance (TAA) is a system to remedy damages sustained by domestic 
companies due to an import increase resulting from an FTA under the normal trade circumstances. 
The system is therefore operated separately from safeguard measures. In addition, the system has 
no direct relation to tariff schedules, although there can be indirect effects, such when an import 
tariff schedule leads to an increase in imports.  
 
2- En la pag.13 numeral 21 se menciona que el servicio de telefonía ha sido totalmente 
privatiz ado, así como otros sectores relacionados al comercio, y que exiten otros sectores que 
seguirían por el mismo camino. ¿Se podría saber cuales son estos sectores?  
 
ANSWER : 
Information is not available at this moment regarding specific sectors  
 
3- En numeral  1.4 pg. 17, se menciona que para mantener o incrementar la participación en los 
valores agregados mundiales se debe aumentar las inversiones en sectores menos fragmentados, 
como la manufacturera, ¿Existen algunas políticas para fomentar esas inversiones y  en qué 
sectores?  
 
ANSWER : 
Information is not available at this moment regarding specific sectors beyond telecommunication  
 WT/TPR/M/346/Add.1  
 
- 166 - 
 
  QUESTIONS FROM THAILAND  
 
 
QUESTION REGARDING THE REPORT BY THE SECRETARIAT  
 
2.  TRADE AND INVESTMENT REGIME  
 
Page 41 (paragraph 2.3 ) 
Question 1  According to the  Report by the Secretariat, table 2.3 of page 41 Korea has FDI 
restrictions in various categories, in this regard does Korea have plan to make change in order to 
pursue trade liberalization?  
 
ANSWER : 
The FDI restrictions in som e business categories are operated to protect National Security, Public 
Order and so on, based on the rule of WTO GATS. The Korean government reviews the restricted 
categories and contents of restrictions annually, in accord with the domestic laws and 
multilateral/bilateral agreements.  
 
 
3. TRADE POLICIES AND PRACTICES BY MEASURE  
 
Page 58 (Section 3.36 – 3.37)  
Question 2  Since Korea apply Adjustment duties to 13 different types of product covering mainly 
certain fish and seafood, rice preparations and sauce s, could Korea please elaborate more about 
the determination criteria of Adjustment duties for such products? Do these practices comply with 
WTO obligation?  
 
ANSWER : 
Adjustment tariff is applied limitedly to increase tariff rates in times of concerns that domestic 
markets might be disturbed and industrial infrastructures might be collapsed. When related 
ministries request that items shall be covered by adjustment tariff in consideration of domestic 
supply and demand, prices and necessity, the Ministry of St rategy and Finance reviews the items 
and the necessity and renews the items to be covered by adjustment tariff on a yearly basis. Since 
it is a kind of temporary flexible tariffs, adjustment tariff does not violate the WTO  provisions.  
 
 
Page 62 (Section 3. 51) 
Question 3  Thailand would like to obtain further information regarding the Republic of Korea's 
practice and guideline on the administration of Rice Tariff  quotas and Import quotas by 
24 different organizations including ministries, state trading entiti es and various producer 
associations. Moreover, whether each year, the tariff rate and quantity have been allocated to 
each organization differently or not.  
 
ANSWER : 
Rice is subject to state trading and aT conducts import of rice on behalf of MAFRA.  
 
 
Page  68 (Section 3.71)  
Question 4  According to the Report by the Secretariat, paragraph 3.71 page 68 "the KATS 
implemented its fourth National Standards Plan (2016 -20) with key policy goals including the 
development of standards for new growth engine activitie s, for improving people's daily life, and 
the eradication of redundant certification systems", in this regard which activities are considered 
as part of the new growth engine?  
 
ANSWER : 
Area  Notion  Target technology  
ICT 
Convergence  Field which can be disco vered of new 
growth power through convergence 
and integration of ICT and existing 
industry  Future of the car(Electric car, Smart car), Pilotless 
plane, Intelligent robot, Wearable device, Smart 
home, Aerospace, 3D printing, Virtual training 
system, Smart m anufacture, Soft power of 
manufacturing industry(design and etc), Knowledge 
service, Engineering and etc  WT/TPR/M/346/Add.1  
 
- 167 - 
 
  Area  Notion  Target technology  
Bio-health  Area of biotechnology with core 
technology which needs necessity of 
improvement of the life quality and 
preparation of aging and sphere of 
equipment and system which are 
fused with advanced technology to 
realize total medical service  Bio-pharmaceuticals, Smart health -care, Medical 
appliances and etc  
Consumer 
goods  Field of consumer goods which is 
expected to secure overseas market 
and a high -value commercialization  Cosmetics, Food, Baby product, Fashion clothes, 
Daily supplies and etc  
New-material 
component  Sphere of raw material and 
intermediate product which can be a 
base of future industry or has high 
added -value  Carbon fiber, Magnesium, Titanium, Nano -
convergence, Graphene, Ceramic Fiber reinforced 
plastic  
High molecule with high level functionality(Super 
engineering plastics), Fusion and integration 
Material, Chemical materials of smart function, Fiber 
materials of smart(electron), Super  fiber material 
with multi function and high performance, Material 
of natural origin, Material for 3D printing, 
Processing techniques of new material  
New industry 
of energy  It is a 'problem -solving industry' for 
settling major matters of energy 
field such  as preparation for climate 
change, energy security, demand -
side management.  
 
It can be defined as an energy 
business industry with new form 
which quickly utilizes and 
commercializes new technology and 
information and communication 
technology  ESS, Solar ce ll, Smart -grid and etc  
Valuing high -
value of key 
industries  Sphere which possibly creates future 
food or reinforces competitiveness of 
industry, through valuing high -value 
of key industries except 5 new 
industries of high -rank Appliance, Display, Fiber, G eneral machinery, Motor 
vehicle, Shipbuilding, Steel, Energy supply and 
demand, etc  
 
 
Page 76 (Section 3.101)  
Question 5 With respect to page 76, no. 3.2.9.2.2 Quarantine regulations, paragraph 3.101, 
Thailand would like to inquire the Republic of Korea's  policy in regard to the future review of the 
import prohibition on husk, chaff, and rice straw in order to provide the opportunity for other 
countries in case of the absence of pest issue.  
 
ANSWER : 
Korea has banned imports of rice in the husk, chaff and r ice straw to prevent the introduction of 
prohibited pests including rice stem nematode and Udbatta disease. Husked rice are allowed to be 
imported. If a country officially requests for the export of rice not fully husked, import permit will 
be decided acco rding to the result of a pest risk analysis based on the international standards.  
 
 
4.  TRADE POLICIES BY SECTOR  
 
Page 115 (paragraph 4.13)  
Question 6  According to the Report by the Secretariat, paragraph 4.13 page 115 what are the 
eligibility criteria fo r farmers farming these 66 products in order to join the agriculture insurance 
scheme?  
 
ANSWER : 
Farmers who produce the listed crops above a certain scale and farmers who breed the listed 
livestock can join the insurance scheme.  
 
 WT/TPR/M/346/Add.1  
 
- 168 - 
 
  Page 116 (paragraph 4.19)   
Question 7  According to the Report by the Secretariat, item 4.19 page 116: since  1 January 2015,  
Korea has been applying a global quota for rice products of 408,700 tones, with an in quota tariff 
rate at 5% and out quota tariff rate at 513% replacing its  country -specific quotas that had been 
given to Australia, China, United State and Thailand. Thailand and Korea held a discussion in 
December 2015 but no agreement has been reached. In this regard, we would like to ask Korea to 
rearrange the consultations without delay. In addition, Thailand would also like to have information 
on Korea's arrangements with other objecting members if the progress has been made.  
 
ANSWER : 
Korea welcomes the request for consultation from Thailand in regards to Korea's rice tarif fication 
and will make arrangements for the meeting to take place in the near future.  
 
 
Question 8  We noted that Korea has allocated different quotas for different types of grains 
(around 20% for long -grains and 70 -80% for short and medium grains). In ligh t of this 
information, Thailand would like to pose the following questions:  
 8.1 Will there be any adjustments in the allocation of quota to certain types of grains?  
 8.2 The country specific quota from 4 countries has been cancelled and been included unde r 
the global quota, same as the proportion of certain types of rice. Please clarify how the proportion 
of different types of rice importation under the previous scheme and global quota scheme are 
undertaken?  
 8.3 Since Thailand is an exporter of long grain  rice, we therefore request Korea to consider 
increasing the proportion of long grain imports. Our major concern is that the current trade will not 
be adversely affected  
 
ANSWER : 
8-1. Korea is administering TRQ of all items with global quotas under the rul e of MFN and 
commercial consideration of state -trading enterprises under the GATT since the beginning of rice 
tariffication as regulated in Korea's 2005 country schedule.  
8-2, 8-3. TRQ is administered based on the trade performance and domestic demand as i n the 
past. If there is an increase in domestic demand for long -grain rice, the import ratio may be 
increased.  
 
 
Page 116 (paragraph 4.22)  
Question 9  According to the Report by the Secretariat, item 4.22 page 116: Could Korea 
elaborate more in details on "the Government planned to ban the mixing of domestic and imported 
rice for sales and distribution" and please explain the reason.  
 
ANSWER : 
Before 2015, there were many cases where imported and domestic rice were mixed and labelled 
as domestic products to be sold in the market and the policy was introduced to prevent such 
practice.  
 
 
Page 118 (paragraph 4.30)  
Question 10  Since Korean use Market price support (MPS) as one of support tools for domestic 
agricultural commodities and make agricultural commodity  prices trend to increase (Korean 
agricultural commodity prices averaged 1.9 times world levels, compared to 1.7 times in 2008 -
10), Does Korea have any plan to reduce the gap between domestic price and world prices? Please 
provide information on the compli ance of these practices with WTO obligations?  
 
ANSWER : 
MPS referred in the paragraph 4.30 in the secretariat report is derived from OECD indicators and 
different from MPS defined in the WTO Agreement on Agriculture. According to the WTO's 
definition of the  market price support, Korea used MPS only for barley in 2011, and the amount of 
AMS was ₩4.81 billion. Korea's trade practices including tariffs and public stockholding schemes 
are in conformity with the WTO obligations  
 
 WT/TPR/M/346/Add.1  
 
- 169 - 
 
  Page 119 (sub -section 4.2.3.1)  
Question 11  Referring to page  119, no. 4.2.3.1  Rice production and importation, Thailand would 
like to inquire the Republic of Korea's policy about the possibility to review the rice import 
restriction and tariff reduction in order to increase your rice imp ort as rice production in Republic 
of Korea could not meet domestic consumption.  
 
ANSWER : 
Korea is importing rice under the TRQ system to meet the WTO obligation even though local rice 
production has exceeded local consumption.  
 
 
Page 122 (paragraph 4.47)  
Question 12  The Report mentions that the Government has been making efforts to boost 
aquaculture production in the shallow sea areas. Could Korea please provide details on the 
measures that have been undertaken so far?  
 
ANSWER : 
Korean Government has been working to establish mass production basis of aquaculture by 
reducing the mortality rate of aquaculture, developing superior species with high growing rate, etc. 
Moreover, Korea is progressing policies regarding improvements of fishery grounds, development  
implementation of assorted feed, enforcement of preventive measures, etc., to build 
environmental friendly aquafarm.  
 
 
Page 136 (paragraph 4.125)  
Question 13  the paragraph  indicates that the OECD suggested Korea to develop the services 
sector by elimina ting policies favoring manufacturing such as lower tax rates. Does Korea follow 
the OECD suggestions? Is there any services sector development plan? Please provide details of 
the plan?  
 
ANSWER : 
1.(Negative List Approach) Reform of tax system, including tax  reduction and exemption Control 
Act (2016)  
* Beside manufacturing sector is subject to tax support as an entity unit, service sector is subject 
to tax support with being left out of several businesses, including management consulting, 
architectural design , and sports and leisure and etc.  
 
- Retain all business types of service sector to non -taxable reduction, except in some parts of 
consumer product  
<List of conversion into Negative List Approach with qualifying non -taxable reduction>  
List Content  
Tax Cr edit on Human Resources in 
R&D ▪Partial corporate income tax exemption for R&D cost, payroll cost, and 
training cost (up to 30%)  
 
▪High rate of exemption on small business  
Job Creation Investment Tax Credit  ▪Partial investment tax exemption in case of ma intenance and increase 
in employment rate  
 
* Basic exemption: 1 ∼3% of investing amount, Additional exemption: 
3∼5% of investing amount  
Social Insurance Premium 
Exemption  ▪50% exemption for increased amount of social insurance fee on 
increased employment rate in particular for small business  
▪100% exemption for the youth  
Investment Tax Credit on Small 
business  ▪3% exemption for investing amount including corporate asset (4% for 
IPO Company)  
Customized Tax Credit (high school 
graduate, reinstatement of m ilitary 
service)  ▪10% exemption for payroll tax on small business with industry demand 
customized and reinstatement of military service in a year  
Tax credit for re -employment of 
career disconnected women on 
small business  ▪10% exemption for two -year amou nt payroll tax on small business with 
re-employment of career disconnected women on small business  
※ Further potential lists of Conversion into Negative List Approach and exception will be determined 
once tax reform begins  WT/TPR/M/346/Add.1  
 
- 170 - 
 
  2. Extend investment on service  sector, and establish ｢Development Strategy for Service Sector 
Economy ｣ on purpose of revitalizing economy and job creation in response to intensifying 
competition (7.5days)  
- (Develop service and manufacturing combined business model) Relieve discriminat ion between 
service and manufacturing sector, and extend increase in high quality value of manufacturing and 
inter-industrial conversion under the terms of administration provision  
 
-(Innovate infrastructure for service economy) Extend the investment on pu blic and private 
oriented research institutes, and increase in expense of human resources and training program 
abroad for service sector  
 
- (Intensify the growth on seven business categories) Prop ose effective measurement for 
7 selected businesses, includi ng medical, tourism, contents, education, software, and logistics with 
consideration of global shift and climate change.  
 
 
Page 136 (paragraph 4.128)  
Question 14  the paragraph  states that Korea has not revised its conditional offer concerning 
services und er GATS since 2005 however Korea already adopted services liberalization 
commitments under the FTAs with Australia, Canada, China, New Zealand, and Viet Nam. Refer to 
Korea's position to support the multilateral trading system under the auspices of the WTO  in the 
report WT/TPR/G/346, does Korea have any plan to revise its offer under the GATS?  
 
ANSWER : 
The WTO services market access negotiations have stalled since 2008. If a consensus is reached 
among Members on resuming the negotiations, it would be possib le for Korea to review its services 
concessions.   
 
 
 
Page 145 (sub -section 4.6.3.2)  
Question 15  the paragraph indicates that postal services face competition from express/courier 
services although postal business is not open to foreign investment. What ar e the criteria for 
foreign investment in courier services?  
 
 
ANSWER :  
The paragraph "postal business is not open to foreign investment"  has the following 
backgrounds and implications: In Korea, postal services refer to collection, sorting, and delivery 
processes for letters and parcels by Korea Post (post offices), which implies that other countries 
are not allowed to open or operate a post office within the Korean territory. In Korea, postal 
services are provided by the government, and Korea Post is the on ly legitimate universal service 
provider for postal services in Korea.  
 
As for  "the criteria for foreign investment in courier services," although postal businesses 
through post office are operated by the government in Korea, the business scope reserved on ly for 
state-run post offices is clearly specified in Article 2 of the Postal Service Act. Other services can 
be offered by not only post offices (national service provider) but also private couriers.  
 
The Post Service Act defines the limited reserved area  in letters. It stipulates that letters weighing 
over 350g or with a price of over 10 times of the letter price prescribed by the Presidential decree 
on postal service are open to competition.  
 
Excluding the reserved business area stipulated by the Postal Service Act, foreign country's 
couriers — delivery services providers except postal service providers — can open and operate its 
branch in Korea. As to the detailed criteria for foreign investment in courier service, please refer to 
the Foreign Investment Promotion Act, the Horizontal Commitments submitted by the Korean 
government to WTO as well as the table below (Korea -EU FTA commitments for courier services 
offered by Korea).  
 WT/TPR/M/346/Add.1  
 
- 171 - 
 
  Sector or Subsector  Limitation on MA  Limitation on NT  Additional 
Commitments  
2. Communication Services     
B. Courier Services  
Courier services including 
express delivery services  
(CPC 7512)  
Excluding the services to collect, 
process and deliver letters for 
which exclusive rights are reserved 
for the Korean Postal Authority 
(KPA) under the Postal Service Act.  
The exclusive rights of the KPA 
include the right of access to its 
postal network and operation 
thereof.  
The commitment shall not be 
construed to include the right to 
operate transport services under 
one's own responsibility f or hire.  
The commitment shall not include 
under any circumstances, the grant 
of air traffic rights for courier 
operators with own Air Operator's 
Certificate (AOC) and aircraft fleet.  1) Provision of services is 
limited to air and sea 
transport modes.  
2) No ne 
3) A trucking business 
license for domestic 
courier supply is subject to 
an economic needs test.  
For greater certainty, a 
person acquiring an 
existing domestic courier 
services supplier does not 
need to obtain a new 
trucking business license 
provided t hat the acquirer 
operates under the same 
terms and conditions as 
set out in the acquiree's 
license.  
4) Unbound except as 
indicated in the Horizontal 
Commitments section  1) Provision of services 
is limited to air and sea 
transport modes.  
2) None  
3) None  
 
 
 
 
 
 
 
4) Unbound except as 
indicated in the 
Horizontal Commitments 
section   
 
 
Page 146 (paragraph 4.178)  
Question 16  The paragraph states that cabotage is reserved for Korean vessels, except 
transportation between the Democratic People's Republic of Korea and the Republic of Korea: 
foreigners may participate in goods and passengers transport as a minority joint -venture partner 
with a firm of the Republic of Korea.  
Can vessels transport to every port in the Republic of Korea or limit to specific ports?  
 
ANSW ER: 
Participation of foreigners in goods and passengers transport is possible when the following three 
criteria are met: 1) goods and passengers transportation between the Democratic People's 
Republic of Korea and Republic of Korea 2) joint-venture partner  with South Korean shipping 
company 3) investment r ate of foreigners under 50%. In this case, the port of transport is not 
limited to a specific port.  
 
 
Page 146 (paragraph 4.179)  
Question 17  According to the WT/TPR/S/346 para 4.179 page no. 146 indicates  that for 
specifically designed vessels such as the vessels transporting military supplies, petroleum, and 
coal, the number of foreigners allowed on board is limited to six. What are criteria or qualification 
for obtaining the permission for the six foreig ners?  
 
ANSWER : 
There are limitations only for the number of sailors and ratings (seafarer such as quarter master, 
boatswain, oiler, cook, etc., excluding master and officer). Qualifications are required according to 
their ratings in accordance with the STC W(The International Convention on Standards of Training 
Certification and Watchkeeping for Seafarer) Convention. No other qualifications are required by 
Korea.  
 WT/TPR/M/346/Add.1  
 
- 172 - 
 
  Page 148 (paragraph 4.192)  
Question 18  According to the WT/TPR/S/346 para 4.192 page no. 148, Do the aircraft 
registration and condition for no limitation to the number of ground -handling suppliers at major 
airport apply without discrimination to both domestic operators and foreign operators?  
 
ANSWER : 
Yes, there is no limitation to the number of gr ound-handling suppliers at major  
airports and it is equally applied to both domestic operators and foreign operators.  
Correct, there is no limitation to the number of aircraft registration.  
 
Page 148 (paragraph 4.195)  
Question 19  According to the WT/TPR/S /346 para 4.195 page no. 148, Do both domestic and 
foreign road transport operators have to comply with economic needs test to obtain licenses?  
 
ANSWER : 
Correct.  
 
 
Page 148 (paragraph 4.197)  
Question 20  According to the WT/TPR/S/346 para 4.197 page no. 14 8 indicates that there are 
three private companies in the rail transport sector. Are there any foreign companies? Does the 
application for license apply to both domestic operators and foreign operators?  
 
ANSWER : 
There is no foreign company right now. Howev er, a foreign company that meets the standards and 
qualifications specified in the Railroad Service Act can also obtain a license after going through 
evaluation processes.  
 
QUESTION REGARDING THE REPORT BY THE REPUBLIC OF KOREA  
 
4.  TRADE AND INVESTMENT PO LICY 
 
 
Page 148 (paragraph 4.197)  
Question 21  According to the WT/TPR/G/346 para 4.6 page no. 10 identifies that Korea has long 
been offering preferential treatment to service suppliers of LDCs. What are those treatments? 
Which services sectors have been offered as preferential treatment to LDCs? In addition, 
concerning the outcomes of the Tenth WTO Ministerial Conference, are there any additional 
preferential treatment offers to service suppliers of LDCs?  
 
ANSWER : 
Kindly refer the notification of Republic  of Korea's Preferential Treatment to Service and Services 
Suppliers of Least Developed Countries in 13 July 2015 (S/C/N/808) for the further information.  
 WT/TPR/M/346/Add.1  
 
- 173 - 
 
  QUESTIONS FROM ARGENTINA  
 
 
INVERSIONES  
El párrafo 2.46 indica que el Comité de Inversiones Extranje ras se encarga de regular la IED y está 
formado por representantes de distintos organismos y ministerios. Los organismos de la 
administración central y local designan oficinas de promoción de las inversiones extranjeras para 
apoyar ese tipo de inversiones,  mientras que el Organismo de Fomento del Comercio y la Inversión 
(KOTRA) facilita y fomenta la IED y cuenta con una serie de centros de negocios en todo el mundo. 
Su principal dependencia comercial, Invest Korea, funciona como ventanilla única para los 
inversores extranjeros.  
 
1. Pregunta : ¿Podrían informar con más detalle en qué consisten las políticas de apoyo a las 
inversiones ejecutadas por estos organismos?  
 
En el párrafo 2.58, se menciona que Corea tiene 95 tratados bilaterales de inversión (TBI) en 
vigor. Durante el período objeto de examen, Corea firmó un tratado bilateral de inversión con 
Myanmar (en 2014) que aún no ha entrado en vigor. Asimismo, Corea ha firmado acuerdos de 
libre comercio con capítulos relativos a inversiones.  
 
ANSWER : 
First, the Foreign Investment Committee de liberates on the followings; 1.  Important matters 
concerning the basic policy and sch emes for foreign investment; 2.  Matters concerning integration 
and coordination of the measures by competent Ministry to improve an environm ent for foreign 
investment; 3. Matters concerning the criteria for tax reductions or exemptions for foreign -capital 
invested companies; 4. Matters concerning cooperation among, and coordination of different 
opinions of, central administrative agencies, Spe cial Metropolitan City, Metropolitan Cities, 
Metropolitan Autonomous City, Dos, and Special Self -Governing Province with respect to foreign 
investment; 5. Matters concerning stimulus plans; and so on. Second, the Foreign Investment 
Promotion Offices of Cen tral and local governments provide support for foreign investment by 
encouraging the smooth handling of civil petitions concerning permission, authorization, license, 
approval, designation, cancellation, report, recommendation, consultation, etc. related t o foreign 
investment (hereinafter referred to as "permission, etc."), by supporting swift handling of 
grievances of foreign investors and foreign invested companies, and by establishing a cooperation 
system among related institutions. Lastly, the KOTRA con ducts consultations, guidance, 
advertisement, investigation, research, and treatment of civil petitions either directly or by proxy, 
the nurturing of business start -up, etc. concerning foreign investment and provide comprehensive 
support measures for forei gn investors and foreign -capital invested companies.  
 
 
2. Pregunta : Durante el período de examen, Corea ha firmado un solo TBI. Sobre el 
particular, desearíamos saber si el país se encuentra abierto a la firma de nuevos 
acuerdos de inversión y si éste es el c aso, indicar cuáles son los elementos clave que se 
contemplan ó se tienen en cuenta en un TBI.  
 
ANSWER : 
During the review period, Korea has signed three BITs with Cameroon(2013), Myanmar(2014) and 
Kenya(2014). Korea is open to signing new investment agree ments which can provide adequate 
protection to investors while maintaining legitimate governmental objectives.  
 
3. Pregunta : ¿Cuál es el alcance de los capítulos relativos a inversiones en los acuerdos de 
libre comercio firmados por Corea? ¿Se han incrementad o las inversiones en los países 
firmantes?  
 
ANSWER : Korea's basic policy for investment agreements in FTA is to include investment 
liberalization and investment dispute settlement. You can find Korea's previous FTAs in the website 
"www.fta.go.kr"  
 
 WT/TPR/M/346/Add.1  
 
- 174 - 
 
  MEDIDAS  QUE AFECTAN A LAS IMPORTACIONES  
 
El párrafo 3.19 indica que existe un Centro de Denuncia de Irregularidades Aduaneras, y el Centro 
Electrónico de Denuncias de Corrupción aconseja al personal de aduanas y a las demás partes 
interesadas que denuncien las ir regularidades que se producen en la aduana en el sitio Web del 
KCS; el Centro no ha  recibido consultas desde 2007.  
 
4. Pregunta : ¿Podrían detallar como es el procedimiento por el cual se pueden hacer 
denuncias de irregularidades aduaneras?  
 
ANSWER : The Korea Customs Service (KCS) imposes penalties on the uncovered acts of 
corruption of customs officials in accordance with relevant disciplinary regulations after 
investigations on the officials concerned by internal inspectors. In the case where the acts of 
corruption are severe, the officials concerned are excluded from the assigned work.  
 
 
En el párrafo 3.22, el informe menciona que aunque el KCS puede en principio establecer 
requisitos especiales de valoración en aduana y documentación para las mercancías impo rtadas 
usadas (Decreto Presidencial de la Ley de Aduanas), aplica los mismos métodos de valoración que 
en el caso de las mercancías nuevas. Sin embargo, en última instancia, la Aduana puede 
determinar su valor aplicando "criterios razonables" en virtud de los cuales los precios se ajustan 
sobre la base de los precios estimados por institutos acreditados de evaluación, los precios 
internos al por mayor u otras  listas de precios reconocidas.  
 
5. Pregunta : ¿Podrían explicar con mayor detalle cómo se definen los " criterios razonables" 
mencionados? ¿Cuáles son los institutos acreditados de evaluación?  
 
ANSWER :  
When determination of dutiable values cannot be made with the methods 1 to 5, the methods can 
be applied in a flexible manner to determine dutiable values. R easonable standards include : 
1) flexible application of the country of production and the time element from the methods 2 and 
3, 2) flexible application of the same elements of goods for a sale from the method 4, 
3) determination of the dutiable value bas ed on the dutiable value of identical goods which is 
accepted in accordance with the methods 4 or 5, 4) flexible application of the time element of the 
method 4, and 5) other metho ds accepted to be reasonable based on substantiality and practices. 
Corporat e Audit Division of Customs Audit Bureau in the KCS is responsible for the operations of 
the customs valuation scheme.  
 
 
En el párrafo 3.23, se menciona que en 2015, se enmendó la legislación mediante la inclusión de 
tres nuevas disposiciones (párrafo 1 de l artículo 37 de la Ley de Aduanas y párrafos 2 y 3 del 
artículo 31 de la Orden de aplicación). De conformidad con estas disposiciones, cuando los 
contribuyentes solicitan al Comisario del KCS un acuerdo de valoración aduanera previa, pueden 
también solici tar al mismo tiempo un acuerdo de fijación previa del precio.  
 
6. Pregunta : ¿Podrían describir con mayor nivel de detalle en que consiste y cuáles son los 
requisitos para establecer un "acuerdo de valoración aduanera previa" y un acuerdo de 
"fijación previa del precio"?  
 
ANSWER : Advance Customs Valuation Arrangement (ACVA) is a scheme to determine the dutiable 
value in advance on the imports of transactions between related persons such as the overseas 
mother company and domestic branch offices and it is done upon the request of the person liable 
for tax payment through the mutual agreement between the Commissioner of the KCS and the 
person liable for tax payment. Advance Pricing Arrangement (APA) is a scheme for the person 
liable for tax payment to obtain appr oval by the National Tax Service in advance on the transfer 
pricing based on the calculation method for normal prices which is to be applied to the transactions 
with the overseas related person(s). The primary purpose of ACVA is to calculate accurate dutia ble 
values of individual goods at the time of importation, and APA is to prevent undue income 
transfers between the related companies and to distribute the reasonable taxable income.  
 WT/TPR/M/346/Add.1  
 
- 175 - 
 
  MEDIDAS QUE AFECTA N A LA PRODUCCIÓN Y EL COMERCIO  
 
El párrafo 3.138 indi ca que se aplican impuestos especiales sobre el consumo individual a una 
amplia gama de productos, especialmente de lujo. Los tipos varían entre el 5% sobre los 
automóviles de cilindrada no superior a 2.000 centímetros cúbicos y las motocicletas y el 20% ( por 
ejemplo, para los objetos de lujo como los bolsos. Se aplican tipos flexibles para fomentar o 
desalentar el consumo de ciertos productos a fin de hacer posible una gestión eficiente de la 
economía en casos en que sea necesario introducir ajustes en el ciclo econó mico, estabilizar 
precios, etc.  
 
7. Pregunta : ¿Podrían brindar ejemplos recientes referidos a casos concretos en los que se 
aplican tipos flexibles? ¿Qué se entiende por una "gestión eficiente de la economía?  
 
ANSWER : 1) a flexible tax rate reduced  by 30% has been applied to passenger cars from 27 
August, 2015 to 30 June, 2016. 2) addressing the external diseconomy and economic vitalization 
through boosting private spending, etc. can be considered as part of the effective operation of the 
economy.  
 
 
En el párrafo 3.139, el informe explica que se aplican exenciones condicionales a la gasolina y el 
gasóleo utilizados en la fabricación de productos médicos, abonos, productos petroquímicos, así 
como vehículos para personas dis capacitadas o para alquiler.  
 
8. Pregunta : ¿En qué consisten esas exenciones y en qué circunstancias o bajo que 
condiciones se implementan ?  
 
ANSWER : Taxpayers are required to apply for conditional exemption for the reason of using 
gasoline or diesel fuel only for the aforementioned pur poses and should receive an approval from 
the tax authority. If he/she cannot prove that he/she used the fuel for the purposes specified as 
above, including by altering the usage of the goods exempted, the tax authority imposes the 
exempted tax amount on t he taxpayer.  
 
 
En el párrafo 3.145, se menciona que el impuesto sobre la renta de las personas físicas y el 
impuesto de sociedades constituyen las principales fuentes de ingresos, en ese orden, después del 
IVA, pero que ciertos trabajadores están exent os del impuesto sobre la renta.  
 
9. Pregunta : ¿Podrían explicar en detalle cuáles son los que requisitos deben cumplir los 
trabajadores extranjeros para acceder a esta exención?   
 
ANSWER : There is not a general tax exemption provision for foreign workers. However , foreign 
workers can be applied to flat tax rate(17%) instead of progressive income tax rates.  
 
 
PROPIEDAD INTELECTUAL  
En el párrafo 3.194, el informe explica que el PCIP formuló, y está aplicando, el Primer Plan 
Estratégico de la Propiedad In telectual Na cional (2012 -2016).  
 
10. Pregunta : ¿Podrían explicar en qué consiste este plan?  
 
ANSWER : 
The govermment formulates and implements a strategic plan for national intellectual property in 
accordance with the provisions of the Framework Act on Intellectual Propert y. 
 
* 5 policy directions of <the 1st National IP plan for 2012~2016>  
- Promoting high -value IP creation  
- Securing effective IP protection  
- Fostering IP Industry & IP fair trade  
- Establishing IP social infrastructure  
- Preparing for newly emerging IP  
 
 WT/TPR/M/346/Add.1  
 
- 176 - 
 
  En el párrafo 3.205, se menciona que la legislación en materia de marcas de fábrica o de comercio 
impide el registro de marcas con un "nombre geográfico conspicuo"; en cambio, permite 
registrarlas como "marcas geográficas colectivas". El titular de una marca colectiva de indicación 
geográfica tiene el derecho de usarla con carácter exclusivo e impedir que los terceros usen signos 
idénticos o similares para productos idénticos cuando el lo pueda dar lugar a confusión.  
 
11. Pregunta : ¿Qué se entiende por "marca s geográficas colectivas?  
 
ANSWER : 
According to Article 2(1) subsection 6 of the Korean Trademark Act, a collective mark with 
geographical indication (GI) is defined as a mark intended to be used directly by a corporation 
incorporated by persons who produc e, manufacture, or process goods on which a geographical 
indication may be used, or is intended to be used by its members.  
 
Korean Trademark Act Article 2(Definition) (1) The terms used in this Act shall be defined as 
follows;  
 
3. The term "collective mark " means a mark intended to be used directly by a corporation jointly 
incorporated by persons who produce, manufacture, process or sell goods, or who provide 
services, or intended to be used by its members;  
4. The term "geographical indication" means an ind ication used to identify goods produced, 
manufactured, or processed in a specific area in cases where a certain quality, reputation or other 
characteristic of goods has essentially originated from such specific area;  
 
6. The term "collective mark with geog raphical indication" means a mark intended to be used 
directly by a corporation incorporated by persons who produce, manufacture, or process goods on 
which a geographical indication may be used, or is intended to be used by its members;  
 
Also, persons ent itled to registration of a collective mark with GI, as defined in Article 3(2) of the 
Korean Trademark Act, are as follow:  
 
Korean Trademark Act Article 3 (Persons Entitled to Registration of Trademark) (2) Any 
corporation (in cases of a collective mark wi th geographical indication, limited to a corporation only 
comprised of persons who produce, manufacture or process goods on which such geographical 
indication may be used) jointly founded by persons who produce, manufacture, process or sell 
goods, or provi de services may obtain registration of its collective mark.  
 
 
SERVICIOS  
En el párrafo 4.155, el informe menciona que en octubre de 2015, el Gobierno anunció un 
conjunto de medidas de desreglamentación del sector de los seguros, en virtud de las cuales se 
suprimirán reglamentaciones que afectan a ámbitos tales como el desarrollo de productos, la 
comercialización y fijación de precios, la gestión de activos y la financiación. Con arreglo al 
paquete de medidas, las compañías de seguros tendrán una autonomía mu cho mayor respecto de 
los productos y las primas de seguros y los tipos de interés.  
 
12. Pregunta : ¿Cuáles han sido concretamente las medidas y que beneficios y/o perjuicios 
trajo o traerá para el sector?   
 
ANSWER : 
We are undertaking a wide rage of deregulatio n initiatives relating to the insurance industry, under 
the goal of ensuring effective competition and enhancing consumer confidence. Most of the 
deregulation is already implemented based on amended Insurance Business Act and amended 
Regulation on Supervis ion of Insurance Business, which entered into effect on November 27, 2015 
and on April 1, 2016, respectively. The details are as follows:  
Ensuring greater autonomy for insurers with respect to insurance product development  
 ㅇ Ex-ante notification requireme nt for insurance policy (basic document) has been changed into 
ex-post reporting. Excessive or outdated requirements for drafting and revising insurance policy 
(basic document) has been eased.  
Ensuring greater autonomy relating to insurance pricing and en hancing comparative disclosure  
 ㅇ In order to ensure greater autonomy for insurance pricing, the Government repealed standard 
interest rate that used to serve as a common benchmark for insurance product development. Now, WT/TPR/M/346/Add.1  
 
- 177 - 
 
  average insurance interest rate has replaced the standard interest rate, while, at the same time, it 
serves as the standard for minimum policy reserve requirement.  
 ㅇ Until recently, insurers were permitted to adjust risk rate within the range of ±25% in 3 years 
(1 year for medical expense reimbursement insurance). This rule will be phased out (2016: ±30% 
→ 2017: ±35% → 2018: planning to review repealing the rule).  
 ㅇ The cap for safety loading of risk premium used to be 30%. We are planning to phase out the 
cap (2016: ±50% → 2017: repeal)  
 
 ㅇInsurers were required to set  interest rate within ±20% of KIDI's reference rate. This rule will 
be phased out (2016: ±30% → 2017: repeal)  
 
 ㅇConsumers can easily compare various insurance products via online insurance supermarket. 
From this web -site, consumers have access to simplifi ed insurance disclosure, can search 
insurance policies, purchase any policy, in case online purchase is available, by clicking a 
hyperlink.  
 
 Paradigm shift of asset management regulation  
 
 ㅇBefore, only those insurers with RBC of 150% or below were permi tted to issue subordinated 
debt. However, insurers are now permitted to issue subordinated debt as a preemptive measure to 
improve the company's financial health, and also to issue hybrid securities at any time.  
 
 Responding to the new insurance environme nt 
 
 ㅇBefore, insurers were, in practice, required to use re -insurer's rate (a.k.a "consultation rate") in 
case it is unable to produce/use its own, statistics -based rate for commercial -line insurance. 
However, if they do not have their own "statistics -based ra te," insurers are now permitted to use 
its "judgement -based rate," where insurers may determine rate based on risk related data in 
accordance with their internal control standards.  
 
 ㅇIn addition, "policy outline" and "insurance policy prospectus" have be en consolidated to 
significantly streamline insurance subscription procedure. Before, "official authentication tool" was 
required for online insurance subscription. But now, consumers can use a wide range of 
authentication and identification tools. In addi tion to these deregulation measures, the 
Government initiated public consultation on Insurance Business Act amendment bill on June 28, 
2016, which include, among others, easing asset management regulations*. We are planning to 
submit the amendment bill to the National Assembly within this year.  
 
 * Insurers were required to comply with the following regulatory ratio for their asset 
management: real estate shall consist less than 30% of the total assets; FX and overseas real 
estate shall consist less than 3 0% of the total assets; and derivatives shall consist less than 6% of 
the total assets. The bill ai ms to repeal these regulations.  
 WT/TPR/M/346/Add.1  
 
- 178 - 
 
  QUESTIONS FROM SAUDI ARABIA  
 
 
Document: (WT/TPR/S/346)  
1) Section 2.4 subsection C, page 30: What policies have been enact ed to encourage labor force 
participation of young people and women?  
 
ANSWER : 
For women's labor force participation, among many others, legal and institution improvements 
have been made to create the conditions that enable women to continue to work withou t taking a 
career break. For example, the government raised the maximum age of a child for whom a worker 
can take childcare leave from 6 to 8 years old, made family care leave mandatory, and expanded 
paternity leave. For youth's labor force participation, among many others, the government 
expanded tailored education and on -the-job training for youth as well as providing youth -friendly 
job searching information services both online and offline.  
 
 
2) Section 4.5, page 113:  It would be good to know how the aut horities would be increasing 
productivity in the services sector.  
 
ANSWER : 
□ Extend investment on service sector, and establish Development Strategy for Service Sector 
Economy on purpose of revitalizing economy and job creation in response to intensifying 
competition (7.5  days)  
 
ㅇ (Develop service and manufacturing combined busin ess model)  
Relieve discrimination between service and manufacturing sector, and extend increase in high 
quality value of manufacturing and inter -industrial conversion under the terms of administration 
provision  
 
ㅇ (Innovate infrastructure for service econ omy)  
Extend investment on public and private oriented research institutes, and increase in expense of 
human resources and training program abroad for service sector  
 
ㅇ (Intensify the growth on seven business categories)  
Propose effective measurement for 7 selected businesses, including medical, tourism, contents, 
education, software, and logistics with consideration of global shift and climate change.  
 
 
Document: WT/TPR/G/346  
 
1) Section 3.8, page 5: It would be good to understand a bit more the dynamics  of the Tripartite 
Agreement of 2015 between employees, private sector and the government on the  reduced work 
hour scheme.  
 
ANSWER :  
On the basis of the Tripartite Agreement between the government, workers and employers, the 
Korean government is carrying out labor market reform. The reform focuses on expanding a room 
for job creation and alleviating the dual structure of the labor market by improving fundamentals 
of the market.  
 
Based on the Tripartite Agreement, labor market reform is underway through re vision of labor 
laws, administrative measures, and implementation measures onsite for workers and employers. 
Although revision of labor laws is still pending at the National Assembly, administrative measures 
and onsite implementation measures are in place.  
 
 WT/TPR/M/346/Add.1  
 
- 179 - 
 
  QUESTIONS FROM ECUADOR  
 
Informe de la Secretaría:  
 
1. De conformidad con la página 65 y 66, párrafo 3.34, de la sección Aranceles "flexibles", se 
expresa que Corea aplica una política de aranceles flexibles, que incluyen los derechos de ajuste, 
estaci onales y los contingentes arancelarios.  
¿Podría explicarnos Corea cómo aplican los aranceles flexibles? ¿Con qué periodicidad aumentan o 
reducen los aranceles? ¿Cuáles son los productos sobre los que se aplicó este mecanismo de 
aranceles flexibles y los ni veles de diferencia de las variaciones de aranceles? ¿Afectan a productos 
que tiene aranceles consolidados o se aplica también a los productos que Corea no ha 
consolidado?  
 
ANSWER : 
Flexible tariffs refer to a mechanism under which the government is approve d by the National 
Assembly to raise or reduce tariff rates within a certain range in order to protect domestic 
industries and stabilize the economy. Korea's two major flexible tariffs are Autonomous Tariff and 
Adjustment Tariff. These tariffs are applied t emporarily under a limited condition and timeframe in 
accordance with the Customs Act of Korea.  
 
The Customs Act stipulates that Autonomous Tariff is designed to reduce tariff rates temporarily 
and limitedly for the purpose of stabilizing the economy, stre ngthening industrial competitiveness 
and controling imbalance in tariff rate, and that Adjustment Tariff is applied also temporarily and 
limitedly in times of concerns that domestic markets might be disturbed and industrial 
infrastructures might be collaps ed 
 
In general, those flexible tariffs are applied limitedly within a range of one year, depending on the 
domestic economic situation. Under the regime, the related Presidential Decree needs to be 
revised in order to designate the subject items and time sc hedule. Such revisions are notified 
through the official Gazette, and the following is the web address of the Gazette: 
http://www.moi.go.kr . 
According to the Customs Act, flexible tariff is preferentially applied prior to WTO concession rate 
in case where flexible tariff rate is lower than the rate of WTO concession rate.  
 
 
2. De conformidad con la página 66, párrafo 3.36: "los derechos de ajuste tienen por fin proteger 
a las ramas de producción nacionales de los aumentos súbitos de las importaciones y aten uar las 
repercusiones de la liberalización del comercio. Afectan solamente a los tipos NMF y son fijados 
anualmente por el MOSF".  
¿Podría indicarnos Corea cómo funcionan estos derechos de ajuste, en particular de la pesca y los 
cereales? ¿Con qué periodici dad se aplican estos derechos de ajuste? ¿Los operadores comerciales 
tienen información sobre los niveles arancelarios que Corea podría aplicar como derechos de 
ajuste?  
 
ANSWER : 
Adjustment Tariff is applied limitedly to increase tariff rates in times of co ncerns that domestic 
markets might be disturbed and industrial infrastructures might be collapsed. When related 
ministries request that items shall be covered by adjustment tariff in consideration of domestic 
supply and demand, prices and necessity, the Mi nistry of Strategy and Finance reviews the items 
and the necessity and renews the items to be covered by adjustment tariff on a yearly basis. Since 
it is a kind of temporary flexible tariffs, adjustment tariff does not violate the WTO  provisions. The 
related Adjustment Tariff Presidential Decree needs to be revised in order to designate the subject 
items and time schedule. Such revisions are notified through the official Gazette, and the following 
is the web address of the Gazette: http://www.moi.go.kr . 
 
3. De conformidad con la página 68, punto 3.2.3.6 tipos arancelarios "en función del uso" ¿Podría 
Corea proveer mayor información sobre este mecanismo de política, así como las normas legales 
nacionales en que se sustentan?  
 
ANSWER : 
First of all, "usage tari ff" is not a specific tariff rate. It's a only name of Customs clearance 
procedures of Korea.  WT/TPR/M/346/Add.1  
 
- 180 - 
 
  Korea imposes different tariff rates on goods depending on their usage. Among those rates, a 
lower one becomes usage tariff rate. If an importer wishes to be appl ied by usage tariff, she/he 
should submit an application for usage tariff rate to the Korea Customs house for approval at the 
time of import declaration. The application should include the information of usage, description, 
size, etc. of the goods.  
 
During  the period specified in the Customs Act from the date on which import declaration is 
accepted, the good applied by usage tariff rate cannot be used except for the approved usage or 
transferred to others. Otherwise, the duty amount calculated based on usag e tariff rate is imposed 
on the person who is used the good except for the approved usage or to whom the good is 
transferred.  
 
An importer needs to submit an application for usage tariff rates to get an approval from the head 
of a customs house. If approve d, the customs house will provide follow -up control for the importer.  
 
4. De conformidad con la página 70, punto 3.2.4 contingentes arancelarios, en relación a los 
contingentes arancelarios agrícolas y los contingentes arancelarios autónomos ¿Podría Corea 
proveer mayor información de los mecanismos de administración de estos contingentes, así como 
las normas legales nacionales en que se sustentan?  
 
ANSWER :  
With regard to the mechanism of TRQ administration for agricultural products, please refer to the 
MA:1 notification of Korea.  
 
 
5. De conformidad con la página 73, párrafo 3.55 expresa que la Ley de Comercio Exterior y otras 
56 leyes rigen la aprobación de las importaciones. En 2016 esos requisitos se aplicaban a unas 
3.000 partidas arancelarias del SA a nivel de 6 dígitos. ¿Podría Corea informarnos en que página 
oficial los operadores comerciales podrían acceder a los requisito s de importación para los 
3.000  partidas arancelarias?  
 
ANSWER : 
You can find relevant information at www.law.go.kr . 
 
 
6. De confor midad con la página 75, párrafo 3.62 en relación al comercio de Estados: "entre los 
objetivos de las operaciones de la Corporación de Comercialización de Productos Agrícolas y 
Pesqueros y Alimentos de Corea cabe mencionar el de estabilizar el mercado inter no para otros 
productos agrícolas. Desde 2012, el MAFRA ha sido el único importador de arroz, mientras que la 
aT ha importado otros productos agrícolas. Todos los productos agrícolas están sujetos a 
importantes aumentos de precio, aunque más bajos que cuan do se realizó el examen anterior 
(salvo en el caso del arroz, que por ese entonces no estaba sujeto a esa práctica)".  
¿Podría Corea informarnos qué productos agrícolas importa la aT? ¿La aT tiene la exclusividad para 
la importación de dichos productos agrí colas? ¿La aT aplica algún tipo de tasa de operación para 
que los productos agrícolas que importa estén sujetos a aumentos de precios o es una política para 
precautelar los niveles de precios internos de dichos productos?  
 
ANSWER:  
The aT imports agricultur al products, including rice, garlics, peppers, green beans and red beans, 
buckwheats, soybeans and sesame seeds, to which it does not have exclusive right. Also, there is 
no such case where additional operating rates are imposed on imported agricultural pr oducts to 
forewarn levels of domestic prices of such products.  
 
 
7. De conformidad con la página 138, párrafos 4.30 y 4.31 respecto a los programas de 
sostenimiento de precios y pagos directos. ¿Podría Corea proveer mayor información de estos 
programas de apoyo a la agricultura?  
¿Podría Corea indicarnos bajo que compartimiento y notificación a la OMC se incluyeron estas 
medidas?  
 WT/TPR/M/346/Add.1  
 
- 181 - 
 
  ANSWER:  
Market Price Support stated in the secretariat report used OECD methodology and different from 
Market Price Support under  the Agreement on Agriculture. For the MPS program notified to 
WTO Committee on Agriculture, please refer to Korea's DS:1 notification, supporting table DS:5.  
Direct payment schemes are included in the supporting table DS:1, including fixed payment 
scheme for paddy fields, payments for early retirement from farming, direct payment for 
environment -friendly farming, etc. Detailed information for these schemes can be found in Korea's 
DS:2 notifications.  
 
 
8. De conformidad con la página 56 y 57, párrafo 3.13, se refiere que "desde abril de 2016, con 
arreglo al Reglamento de aplicación para la autorización y la administración de operadores 
económicos autorizados (Reglamento de aplicación para los OEA), 788 entidades certificadas 
(199 en 2011) reunían los requisi tos para recibir un trato especial en los procedimientos 
aduaneros, que incluye menos inspección física, exención de las auditorías aduaneras y menos 
multas administrativas".  
¿Podría explicarnos Corea cómo ese "trato especial" en lo relativo a procesos adu aneros (menos 
inspecciones físicas, exención de auditorías internas y menos multas administrativas) se ajusta al 
principio de no discriminación, para los productos similares originarios de otros países Miembros 
con los cuales no mantienen Acuerdos de Recon ocimiento Mutuo?  
 
ANSWER:  
Article 7 of the Trade Facilitation Agreement of the WTO prescribes that Members should provide 
mutual trade facilitation benefits (additional benefits related to imports and exports or transit 
formalities and procedures) to autho rized traders of the partner country. Regarding the 
relationship between the WTO's principle of most favored -nation treatment and the AEO MRA, it is 
deemed that official enquiries should be made to the WTO or the WCO.  
 
 
9. De conformidad con la página 144,  cuadro 4.9 Subvenciones a la pesca, 2011 -2014, la ayuda 
para la gestión de la pesca de altura se beneficia a los operadores dedicados a la pesca de altura o 
las empresas dedicadas al desarrollo de recursos en el exterior para compensar la diferencia entre  
el interés del mercado y del préstamo.  
¿Podría indicarnos Corea cuántas empresas dedicadas a la pesca de altura se benefician de esta 
ayuda? ¿A qué tipo de productos marinos se dedican estás empresas?  
 
ANSWER:  
The expense of a project is not calculated th rough an individual loan but through the outstanding 
balance of the loan. Thus, it is difficult to evaluate the specific vessels which benefit from the 
project. However, tuna and pollack are the major fishing species and the related fishing operators 
or seafood companies are involved.  
 
 
10. De conformidad con la página 107, párrafo 3.160, en relación al "artículo 32 de la Ley Marco 
de Reducción de las Emisiones de Carbono y Crecimiento Ecológico, las medidas para promover la 
certificación ecológica consiste n en la concesión de préstamos para difundir nuevas fuentes de 
energía renovable; el establecimiento de nexos con el fondo para la financiación de la política 
relativa a las pymes; la prestación de apoyo intensivo para garantías tecnológicas; y la prestaci ón 
de apoyo a la financiación y el seguro de exportaciones".  
¿Podría otorgarnos Corea mayor información sobre a qué sectores aplican este incentivo para 
reducir las emisiones de carbono? ¿Podría informarnos sobre sus principales avances?  
 
ANSWER:  
Korea int roduced a greenhouse gas cap -and-trade market in 2015 as a major policy effort to 
reduce carbon footprint.  
For the success of the emission trading scheme, Korea launched a program to financially support 
businesses which participate in the emission market a nd want to adopt carbon -reducing facilities. 
In 2015, the government provided a total of ₩2 billion to eight companies in this subsidy. In 2016, 
23 companies received ₩3.15 billion in total under the program.  
 
 WT/TPR/M/346/Add.1  
 
- 182 - 
 
  11. De conformidad con la página 81 y 82, pár rafo 3.80, "hay determinados productos clasificados 
como cosméticos en el extranjero (por ejemplo, productos de depilación o tintes para el cabello) 
que no se clasifican del mismo modo en Corea, lo cual, podría dificultar la armonización de los 
reglamentos  con otros países".  
¿Podría indicarnos Corea qué medidas está llevando a cabo para reclasificarlos en la partida de 
cosméticos?  
 
ANSWER:  
MFDS issued pre -announcement of a proposed amendment to "Enforcement Rule of the Cosmetics 
Act" on 11 August 2016 and i t is under review of Ministry of Government Legislation. According to 
this amendment, which is expected to go into effect in May 2017, hair removal products and hair 
dyes will be classified as cosmetics.  
 
 
12. De conformidad con la página 96, párrafo 3.123 , menciona que "en la segunda mitad de 2014, 
el Gobierno estableció un proceso simplificado de declaración de exportaciones para el comercio 
electrónico, con el objetivo de impulsar los mercados en línea".  
¿Podría Corea explicarnos en qué consiste este pro ceso simplificado de declaración de 
exportaciones, se aplica únicamente a exportaciones de pequeños volúmenes?  
 
ANSWER:  
To support importers and exporters in e -commerce, the Korea Customs Service developed the 
e-commerce export declaration platform, which is to support expeditious clearance and applies  to 
the items valued less than ₩2 million (approx. US$1700) for filing declarations in a simplified way.  
 WT/TPR/M/346/Add.1  
 
- 183 - 
 
  ADDITIONAL QUESTIONS FROM ECUADOR  
 
 
Informe de la Secretaría:  
 
1. De conformidad con la página 49, el punto 2.7.3 Incentivos a la IED, ¿podría Corea informarnos 
cómo sus políticas  de estímulos a las inversiones, donde se incluyen donaciones del Gobierno 
Central y de Gobiernos locales o seccionales para el desarrollo de proyectos empresariales, son 
compatibles en particular con lo dispuesto en los artículos 1, 2, 3 y 4 del Acuerdo s obre 
Subvenciones y su Anexo I, relativos a la especificidad de la subvención, cuando según lo que se 
señala, se otorga este incentivo no a un sector, sino a una empresa determinada?  
¿Podría Corea darnos a conocer los aspectos sobre la remisión del impues to a la renta según el 
Acuerdo sobre Subvenciones?  
 
ANSWER:  
Incentives scheme to FDI in Korea is operating in compliance with relevant provisions of the 
Agreement on Subsidies and Countervailing Measures  
 
 
2. De conformidad con la página 75, punto 3.2.7 Co mercio de Estado, ¿podría Corea explicarnos el 
funcionamiento del Comercio de Estado y su compatibilidad con lo dispuesto en el artículo 17.2 y 
17.3 del GATT de 1994, en el sentido de que las compras que realiza el Estado deben efectuarse 
exclusivamente ba jo consideraciones de carácter comercial y la obligación de ofrecer condiciones 
de acceso adecuados y en base al principio NMF, así como que dichas compras del Estado no 
puedan ser revendidas o utilizadas en la producción de mercancías destinadas a la vent a y 
particularmente sujetas a "importantes aumentos de precio", como se señala en ese informe?  
 
ANSWER:  
Korea's operation of state trading complies with relevant WTO rules, including article XIII and 
article XVII of the GATT. Price mark -ups for state tradi ng are determined based on the difference 
between import and domestic prices. The domestic price is determined by auction reflecting the 
market condition.  
 
 
3. De conformidad con la página 54, párrafos 3.6 y 3.7: "Por otra parte, se mantienen 
subvenciones directas a la exportación para reducir los costos de comercialización de ciertos 
productos agrícolas. Mediante un sistema de devolución se siguen reintegrando los impuestos en 
frontera sobre las materias primas utilizadas en las exportaciones. Se reembolsa n los impuestos 
internos indirectos sobre las exportaciones, pero se conceden desgravaciones del impuesto sobre 
la renta solamente a empresas con inversión extranjera situadas en zonas de libre comercio. Los 
exportadores se benefician de seguros de crédito  a la exportación, financiación y actividades de 
promoción que llevan a cabo instituciones estatales" y "Se siguen aplicando medidas consistentes 
en donaciones, desgravaciones fiscales y préstamos a bajo interés para apoyar la producción y el 
comercio de d iversos productos de la agricultura, la silvicultura, la pesca, la explotación de carbón 
y las manufacturas y para estimular las actividades de las pymes, la investigación y el desarrollo y 
la protección del medio ambiente… Sigue habiendo compensaciones o ayudas para el ajuste para 
los agricultores y fabricantes que resultan perjudicados por acuerdos bilaterales de libre comercio".  
¿Podría indicarnos Corea cómo ha influido en las negociaciones comerciales con los diferentes 
países o bloques, la implementaci ón de estas medidas y, cómo se ha solventado desde la 
normativa multilateral la aplicación de estas prácticas comerciales?  
 
ANSWER:  
Korea provide export subsidies on agriculture under the article 9.4 of the AoA which Korea can 
provide until 2023 based on H ong Kong and Nairobi Ministerial decision. It is not related with 
Korea's RTA negotiations.  
 
 
4. De conformidad con las páginas 65 y 66, párrafo 3.34, hace alusión que "Corea aplica derechos 
NMF temporales (denominados aranceles "flexibles"). En el mecanis mo de los aranceles flexibles 
no solo se incluyen los derechos de ajuste y estacionales (que se describen más abajo) sino 
también los contingentes arancelarios autónomos y los aranceles "en función del uso", así como WT/TPR/M/346/Add.1  
 
- 184 - 
 
  también los derechos de salvaguardia y de salvaguardia especial (secciones 3.2.4.2, 3.2.3.6 y 
3.2.8.2).  
 
¿Podría explicarnos Corea cómo funciona ese sistema y cuáles productos están sujetos a este tipo 
de aranceles?  
 
ANSWER:  
"Please refer to the answer to Q1"  
 
 
5 De conformidad con la página 8 6, párrafo 3.94, respecto que "Este proceso puede plantear 
importantes dificultades para los exportadores de frutas y cereales si no se fijan límites de 
tolerancia apropiados de manera oportuna".  
¿Podría Corea indicarnos cuáles son los límites de toleranci a que se aplicarán para frutas y 
cereales?  
 
ANSWER : 
MFDS plans to make WTO notificiation regarding the list of MRLs, which are becomes 0.01 ppm, by 
early-half of 2017. PLS for friuts and cereals will be introduced on December 2018.  
 
 
6. De conformidad con la página 88, párrafo 3.101:"se prohíbe la importación de tierra, plantas 
con tierra y ciertas plantas y materiales vegetales" ¿Podría Corea indicarnos cuáles son las plantas 
y materiales vegetales que tienen prohibición y en base a qué parámetros técnicos  se han 
determinado?  
El mismo párrafo señala: "Para prevenir las plagas se prohíben las importaciones de arroz con 
cáscara, granzas y paja de arroz procedentes de cualquier país, salvo el Japón y el Taipei Chino. 
También rigen prohibiciones o restricciones  de la importación de plantas para trasplante 
procedentes de la mayoría de los países."  
¿Podría explicarnos Corea el análisis de riesgo de plagas (ARP) qué determinó las plagas con 
presión de ingreso o potencial cuarentenario? ¿Podría especificarnos qué me didas se 
implementarán entre las restricciones indicadas? ¿Qué especies de plantas para trasplante tienen 
prohibición, y cuáles países de origen tienen prohibición de ingreso o restricciones para su 
exportación?  
 
ANSWER : 
Any pests that may cause severe dam age if introduced to Korea are designated as prohibited pests 
under the Plant Protection Act (Paragraph 1 of Article 10) of Korea. Host plants originated from the 
country where prohibited pests have occurred are prohibited from importation. Please refer to  the 
website of QIA for detailed information. (http://www.qia.go.kr/english/html/Plant/Plant_004.jsp) . 
Whether to lift a ban on import -prohibited plants is determined according to the procedure of PRA 
pursuant to ISPM No.2.  
 
 
7. De conformidad con la págin a 134, párrafo 4.12: "a raíz de la modificación de la Ley de 
Rastreabilidad del Ganado Bovino y la Carne de Bovino, el Gobierno empezó a aplicar un sistema 
de rastreabilidad de la carne de porcino en diciembre de 2014, aplicable a las actividades de cría, 
carnicería, envasado y ventas. Se aplica un sistema de rastreabilidad del ganado bovino y la carne 
de bovino desde 2009; la rastreabilidad de la carne de porcino permitirá a las autoridades facilitar 
información a los clientes sobre la ubicación de los cri aderos de cerdos nacionales, las fechas del 
sacrificio, y los resultados de la inspección del sacrificio".  
¿Podría indicarnos Corea si el sistema de rastreabilidad aplica también para productos cárnicos de 
importación?  
 
ANSWER : 
A traceability system for im ported beef has been implemented since 2010 and a traceability 
system for imported pork is currently under consideration for introduction.  
 
 
8. De conformidad con la página 85, pie de página 107 "además del MFDS, el MAFRA y el 
Ministerio de Medio Ambiente (MOE) se ocupan también de asuntos relacionados con los 
plaguicidas. El MAFRA se encarga del registro de plaguicidas…".  WT/TPR/M/346/Add.1  
 
- 185 - 
 
  ¿Podría informarnos Corea sobre las normativas y resoluciones de cultivos menores (con poca 
oferta de plaguicidas dentro de un manejo in tegrado de plagas)? ¿Podría indicarnos cuál es el 
sistema de homologación de registros de plaguicidas de uso agrícola (registro por equivalencias)? 
¿Cuál es el sistema de post registro de la comercialización de plaguicidas y control de la calidad de 
las mo léculas?  
 
ANSWER :  
Where a manufacturer intends to manufacture and sell pesticides in Korea, he/she shall file for 
registration of each item with the Administrator of the RDA. Any person who intends to file for 
registration shall submit an application for registration to the Administrator of the RDA, with 
results of the test on the effect, harmfulness, toxicity, and residues of the relevant pesticide 
product that has been conducted by a designated research institute and with samples of such 
pesticide produc t. When an importer intends to import and sell pesticides or technical 
concentrates, he/she shall file for registration of each type of items of pesticides or technical 
concentrates with the Administrator of the RDA.  
If a manufacturer or importer intends t o sell pesticides, etc. he/she has manufactured or imported, 
he/she shall indicate, on the containers or packaging, the names of pesticides, etc., the content of 
each active ingredient, the names of target diseases and insect pests, the warranty period for  
pesticides, etc., and other matters prescribed by Ordinance of the MAFRA.  
 
 
9. De conformidad con la página 136, párrafo 4.26, "Corea presentó su última notificación relativa 
a su programa de subvenciones a la exportación de determinados productos agrícol as en 2010, 
para los años 2005 a 2008. En 2008, las subvenciones a la exportación alcanzaron un total de 
32.680 millones de won, y comprendían frutas (10.850 millones), flores (5.390 millones), 
hortalizas y legumbres (11.020 millones), kimchi (3.030 millon es), ginseng (920 millones), ganado 
(1.260 millones), cereales y alimentos elaborados (80 millones ), y licores tradicionales 
(130 millones). Estas subvenciones se utilizaban para reducir los costos de comercialización de los 
exportadores, y están exentas d e compromisos de reducción en la OMC".  
¿Podría Corea proveernos mayor detalle sobre su programa de subvenciones a la exportación para 
esos productos agrícolas?  
 
ANSWER :  
Agricultural marketing program is a project through which the government partially sub sidizes 
logistical costs of agro -livestock products on the basis of Article 9.4 of the Agreement on 
Agriculture and the total value of subsidies is as below. The details will be included in our next 
export subsidy notification.  
 
year 2009  2010  2011  2012  2013 2014  
total value  
(billion won)  39.7 39.4 35.5 37.0 31.1 31.6 
 
10. De conformidad con la página 54, párrafo 3.5, ¿Podría explicarnos Corea en qué consiste el 
programa obligatorio de certificación orgánica y qué cambios se introdujeron?  
¿Ha habido cambi os en los límites máximos de residuos y/o aditivos para alimentos? Si la 
respuesta es afirmativa ¿Cuáles son estos cambios?  
 
ANSWER : 
MFDS revises its Food Code 3~4 times in a year. Please refer th e advanced notification (or 
WTO notification) for these revi sions 
 WT/TPR/M/346/Add.1  
 
- 186 - 
 
  ADDITIONAL QUESTIONS FROM ECUADOR II  
 
 
Informe de la Secretaría:  
 
En la sección 2.5 Leyes y Reglamentaciones Comerciales > 2.5.1 Reforma normativa : 
 
Página 37 : "2.23: La campaña Sin -Moon -Go, que se inició en marzo de 2014 y permite que los 
ciudada nos propongan reformas normativas. Una vez presentada una idea, el ministerio 
competente dispone de dos semanas para decidir si aprueba la propuesta de reforma. En caso de 
aprobación, dispondrá de un plazo de tres meses para llevarla a cabo. El número de s olicitudes de 
reformas normativas específicas presentadas por los ciudadanos aumentó considerablemente tras 
el lanzamiento de esta campaña, ya que pasó de 300 en 2013 a 7.963 en 2014, y la tasa de 
aceptación de propuestas aumentó del 8% al 38%.  
 
Concernien te a este numeral, ¿podría Corea informarnos acerca del proceso de sociabilización de 
las normas, cuáles son los parámetros para analizar las observaciones y si se realiza una 
retroalimentación con los usuarios para conocer el porqué del rechazo de las obs ervaciones?  
 
ANSWER :  
With regard to the first question, Regulatory Reform Sinmungo has adopted 3 -step procedures 
(Petition → Response by the competent administrative agency → Review of such response by the 
Prime Minister's Office → Issuance of recommendation by the Regulatory Reform Committee, 
hereinafter RRC) to conduct an in -depth review of each petitioned agenda. First, the  competent 
administrative agency reviews the petition and provides a response. Then, the unaccepted 
petitions are sent to the Prime Minister's Office for the second review jointly with civilian experts to 
check to see whether the response is reasonable in consideration of the petition. If some 
responses are found to be unreasonable, the concerned administrative agency is required by the 
Prime Minister's Office to conduct a second review of the petition. If the second response by the 
agency is still found to  be unreasonable, the petition is brought to the Regulatory Reform 
Committee to issue a recommendation for the agency to make a necessary amendment 
accordingly, if needed.  
 
In relation to the second question, in the first stage described above, the relevan t administrative 
agencies answer to an petition after the review of the related rules and regulations at issue, the 
consultation of their own civilian experts, the meetings with the interested parties and so on.  
In addition, during the second stage, the p rime minister's office as well as RRC go through the 
similar process to the agencies. For example, in case of the prime minister's office, there is the 
civilian expert group formed by 22 experts from 13 different fields. These experts include 
researchers f rom prestigious research institutions, professors, lawyers, business representatives 
and social welfare experts. Based on their expertise and position outside of government, they 
perform the role of a spokesperson for citizens and businesses during the pro cess of conducting a 
second review of petitions that have been rejected by the concerned administrative agency. In 
case of the RRC, it can also summon the responsible staffs in the relevant agencies, petitioners, 
stakeholders, and relevant experts to hear their opinions. If necessary, the RRC also conducts a 
field visit to hear and coordinate different opinions.  
 
Regarding the third question, a petitioner can access, online, an answer to the petition that 
relevant agencies has set up after carefully reviewi ng and putting the names of people in charge 
from staffs up to the director general on record. Also after receiving the response from the 
concerned administrative agency, the petitioner can rate the response on a 5 -star scale and 
submit a follow -up opinion . If the petitioner has agreed to the disclosure of his/her petition to the 
public, a third person can also submit an opinion on the provided response. In addition, a separate 
system of "request for explanation" has been established, so that the petitioner  can submit a 
request to the concerned administrative agency for a follow -up explanation in case he/she 
disagrees with the initial response. When the petitioner requests such a follow -up explanation, it is 
automatically sent to the public official who had provided the response via text message to his/her 
mobile device in real time.  
 
 
En la sección 3.2 Medidas que afectan directamente a las importaciones > 3.2.1 Procedimientos 
aduaneros : WT/TPR/M/346/Add.1  
 
- 187 - 
 
  Página 55: "3.11. (¼) El portal UNI -PASS, que permite realizar las form alidades comerciales y 
aduaneras en cualquier momento sin necesidad de visitar las entidades gubernamentales, sigue 
exportándose a otros países y se actualizó por última vez en abril de 2016. El sistema de 
ventanilla única del KCS está vinculado con 40 (34  en 2012) agencias (que se encargaban del 88% 
de la verificación de todas las importaciones a fines de 2015) responsables de aprobar ciertas 
importaciones sujetas a requisitos que deben verificarse electrónicamente. ( ¼) 
El pago de comisiones o cargas por l os permisos y licencias reglamentarios, así como por los 
derechos e impuestos para el despacho de las mercaderías, se hace en línea en cualquier 
momento".  
 
Con el fin de prever una futura interoperabilidad de documentos electrónicos entre países ¿podría 
Corea brindarnos más detalles sobre el modelo de datos utilizado conforme a los estándares 
internacionales? Con la finalidad de identificar homólogos que puedan ser de utilidad en el 
intercambio de información, en el que caso que corresponda, ¿podría Corea b rindar más detalles 
de los certificados, permisos o licencias que estarán incluidos en dicha implementación para su 
emisión de forma electrónica por los organismos estatales?  
 
Adicionalmente, ¿se nos podría indicar en mayor detalle el funcionamiento del si stema relacionado 
a pago electrónico aplicado en la Ventanilla Única Coreana.  
 
ANSWER : 
There are 714 types of e -documents that the Customs sends and receives in the system, and out 
of them the WCO DM has been applied to 692 documents (the mapping rate is 9 6.9%.). Please 
refer to the information below on the technical architecture for KCS' linkage standard based on our 
experience in information exchange:  
 
 
 
 
Página 55 : "3.14. (¼) en virtud del cual las importaciones de empresas de buena reputación (las 
que tiene un buen historial de observancia) pueden despacharse antes de la presentación de las 
declaraciones de importación (en un plazo de 10 días)".  
 
¿Qué procedimiento se aplica o cuales son los requisitos (solicitud, por ejemplo) que deben de 
cumplir los importadores, además de los relacionados a su perfil de riesgo, para poder acceder a 
este tipo de despacho?  WT/TPR/M/346/Add.1  
 
- 188 - 
 
  ANSWER : 
E-payment is available after becoming a member in UNI -PASS without any special procedures. For 
importation/exportation of goods designated b y the head of a customhouse for requirement 
verification, applications need to be submitted for the import/export approval by the requirement 
verification agencies. The application procedure can be done through UNI -PASS, and for user 
convenience the Korea Customs Service (KCS) offers th e fee payment module in UNI -PASS for 
each agency (the module is provided by the Korea Financial Telecommunications & Clearings 
Institute (KFTC) and is jointly used by government agencies.). The paid fees are automatically 
transferred to the national treasury of the agency concerned.  
 WT/TPR/M/346/Add.1  
 
- 189 - 
 
  QUESTIONS FROM PERU  
 
 
Sobre la base de lo señalado en el documento WT/TPR/G/346 del 06 de setiembre de 2016, el 
Perú tiene las siguientes preguntas:  
 
Pregunta 1  
 
4. TRADE AND INVESTMENT POLICY  
4.1 Multilateral and Plurilateral Trade Agreements  
4.1.1 WTO DDA Negotiations  
 
Párrafo 4.5 .- After negotiations on the TFA were concluded in December 2013, Korea ratified the 
agreement in July 2015. Prior to the ratification, Korea enhanced its ability to im plement key TFA 
provisions by accelerating clearance procedures, enabling web -based information disclosure, and 
applying a single window customs clearance system through the launch of UNI -PASS, a 
fourth -generation e -clearance platform, in April 2016.12 
 
Pregunta 1. - El Perú desea saber si la Ventanilla Única de Corea opera únicamente para 
las empresas.  
 
Traducción .- Peru would like to know if Corea's single window customs clearance system is 
applicable only for enterprises.  
 
ANSWER:  
Korea's Single Window cle arance system does not only apply to businesses. Individuals can also 
log in the system with their certification and use it for necessary work such as submitting 
applications for requirement verification.  
 
 
Preguntas 2 y 3  
 
4. TRADE AND INVESTMENT POLICY  
4.2 Trade and Development  
 
Párrafo 4.13.  On a separate note, Korea is sharing with developing countries its experience in 
designing and managing a customs clearance system. As part of these efforts, Korea has been 
supporting business process reengineering ( BPR) for customs administration in 14 countries since 
2012. Around 400 customs officials are invited to Korea every year to share knowledge in risk 
management and other issues.  
 
 
Pregunta 2. - ¿El apoyo de Corea en la reingeniería de los procesos de negocio s para la 
administración aduanera en 14 países desde 2012 utiliza los estándares de la Convención de 
Kyoto?  
 
Traducción .- Does Corea's BPR support for customs administration in 14 countries since 2012 use 
Kyoto Convention's standards?  
 
ANSWER:  
Standards f rom the Kyoto Convention are used in the BPR. The Kyoto Convention standards 
(standardization of declaration procedures, simplified procedures, and maximum use of 
information technology) are reflected at the time of the BPR consulting to propose the future  
model in customs administration of the target country.  
 
 
Pregunta 3. - ¿La mencionada labor de apoyo de Corea involucra también la certificación que 
otorgan las administraciones aduaneras a los Operadores Económicos?  
 
                                                
12 A system that allows trading companies to submit all import -related requested documents through a 
single window.  WT/TPR/M/346/Add.1  
 
- 190 - 
 
  Traducción .- Does the aforementioned s upport also involve the economic operator certification 
provided by customs administration?  
 
ANSWER:  
Yes, the economic operator certification is included. During the BPR consulting, when analyzing the 
status whether the AEO program or other similar schemes  is implemented is identified. Depending 
on the situation in the target country, the AEO program can be included in the future model in 
customs administration to be proposed.  
 WT/TPR/M/346/Add.1  
 
- 191 - 
 
  QUESTIONS FROM MALAYSIA  
 
 
GOVERNMENT REPORT  
 
3.3.4 Services, Para 3.35, Page 9  
 
Regulations that serve as barriers to growth will be modified, especially in service sectors with 
great growth potential, such as tourism, content, medical, educational, financial, software and 
logistics services. Related measures are expected to attract more investment and create jobs, and 
will be supported by reform of relevant laws and regulations.  
 
Question 1  
 
Malaysia is interested to know further about the specific regulations that being 
modified/ reformed especially in sectors in tourism, content, financial and software. 
Malaysia seeks further elaboration on this information.  
 
ANSWER :  
1. (Tourism) Extend investment of tour programs on purpose of increase in the number of foreign 
tourist  
ㅇ Diversification of tour program  
- 1) develop customized tour program with target based approach, 2) merchandise Korean wave 
tour product, 3) extend support for integrated tour entrepreneur  
 
ㅇ Promoting Regional Revitalization  
- 1) extend Korean Dulle -gil trail, 2) develop tour plans for regionally targeted benefits to 
landscape area, 3) develop tour resources for PyengChang's Winter Olympics  
 
ㅇ Modification of tourism infrastructure  
- 1) reform Tourism Promotion Act by tourism sector, 2) expand tourist facilities and 
transportation infrastructure  
 
2. (Contents) Promote diversification into civilized living and proliferate Korean wave  
ㅇ Establish foundation for promoting investment on content industry  
- 1) execute deregulation for fostering content indust ry, 2) execute tax exemption to promote 
private sector investment for content, 3) install integrated  system and strengthen copyright 
protection system  
 
ㅇ Develop strategy for new content service  
- 1) extend expenditure in core cultural technology industry,  including R&D investment, 2) install 
the foundation for culture and game industry  
 
ㅇ Extend cultivation of human resources and provide training program abroad  
- 1) maintain human resource training abroad system and strengthen worldwide inter -industrial 
connectivity, 2) cultivate content expert  
 
3. (Fintech) Extend accessibility of financial product, and promote consumer convenience through 
commission reduction  
ㅇ Develop Fintech industry  
- 1) install the foundation of Fintech service, 2) create new financia l product by utilizing big data, 
3) allow financing by utilizing crowdfunding, 4) extend online advisory program, including Robo 
advisor  
 
ㅇ Enhance capability of capital market and diversify financial service  
- 1) consolidate competition between market o peration systems by exchange reform, 2) foster 
large-scale investment banking, 3) reform regulation for development of various financial product 
and service  
 
ㅇ Extend provision of overseas expansion of financial and Fintech corporation  WT/TPR/M/346/Add.1  
 
- 192 - 
 
  - 1) execute financ e sales diplomacy systematically, 2) promote export of financial infrastructure by 
utilizing KSP and KOICA  
 
4. (SW) Reform the order placement environment and foster ecosystem for sound SW industry  
⇒ extend SW development investment from private and publi c sector and promote industrial 
competitiveness  
ㅇ Impose and extend Cloud  
- 1) allocate institutional foundation for public sector provided cloud, 2) provide Cloud to private 
sector  
 
ㅇ Reform public SW industry  
- 1) stabilize payment culture in SW field by  reforming system of order placement, 2) implement 
order placement for public SW with features of competitiveness and coexistence  
 
ㅇ Promote SW conversion for new service creation  
- 1) establish creation foundation of intellectual information based advance d technology, 
2) creation of new growth industry through SW industry based integrated projects, 3) promote SW 
security industry and information security industry  
 
ㅇ Provide globalization of SW industry and cultivate SW field expert  
- 1) build human resourc es cultivation system across stages of growth, 2) provide overseas 
expansion of global SW corporation and extend cultivation of global SW corporation  
 
 
3.3.2 Manufacturing, Para 3.21, Page 8  
 
To respond proactively to the "smart revolution", the convergenc e of manufacturing and IT that 
succeeds the industrial and information revolutions, the Korean Government launched the 
Manufacturing Innovation 3.0 Strategy in June 2014. Key elements of the strategy include 
promoting the use of smart factories to fundamen tally innovate production systems using IT, 
software and the Internet of Things (IoT); designating special zones for the demonstration and 
pilot operation of innovative products; and laying the groundwork for new industrial convergence.  
 
Question 2  
 
Korea n Government launched the Manufacturing Innovation 3.0 Strategy in June 2014. Could 
Korea provide Malaysia on the access to the proposed strategy or point of reference to obtain more 
information.  
 
ANSWER:  
Information is available at www.motie.go.kr  
 
SECRET ARIAT REPORT  
 
3.2.3.1 Applied MFN rate, Para 3.29, Page 53.  
 
The tariff structure has changed little since the last Trade Policy Review of Korea. The 2016 simple 
average (unweighted) MFN tariff increased to 14.1% (13.3% in 2012) (Table 3.1 and Chart 3.1) 
mainly as a result of the insertion of 16 tariff lines (out -of-quota rates for rice and rice products) at 
513% (Section 3.2.6.2), the splitting of tariff lines with high rates and the merger of tariff lines 
with low rates. Tariff protection varies substanti ally across and within sectors, averaging 60% for 
agricultural products and 6.6% for industrial goods in 2016 (WTO definitions). Average tariffs are 
highest for vegetable products (HS section 2), at 108.2% (Chart 3.1). Manufacturing tariffs are 
highest for  footwear and headgear (HS section 12) at 10.1%, and for textiles  and articles 
(HS section 11) at 9.7%. According to Korea's submission to the WTO Trade Monitoring Exercise, 
as of 1 January 2016, the MFN applied tariff rates on 54 items contained in the Se ptember 2012 
APEC List of Environmental Goods (EGs) that directly and positively contribute to green growth and 
sustainable development objectives were 5% or less; however, according to the 2016 customs 
tariff supplied for this trade policy review exercise , some of these items remain subject to an 8% 
tariff rate, which in virtually all cases reflects the implementation terms of this commitment. By 
according varied and substantial levels of protection to selected industries, especially agriculture, 
tariffs d istort competition by favouring some activities. Reducing high tariffs (mainly out -of-quota WT/TPR/M/346/Add.1  
 
- 193 - 
 
  agricultural duties) would improve Korea's resource allocation and national welfare, a view not 
shared by the authorities. The authorities indicated that agricultur al tariffs, including out -of-quota 
duties, are maintained in line with corresponding international and domestic laws, taking market 
conditions into account.  
 
Question 3  
 
In para 3.29 mentioned that MFN rate for 54 products under the APEC EGs list, some it em remain 
at 8%. Could Korea please confirm if all MFN rates for the 54 APEC EGs products are now 5% and 
below as that is the commitment under the APEC EGs?  
 
ANSWER :  
O The APEC EGs list includes 54 items based on HS 6 digit. In transposition of those 54 items on 
HS 6-digit into HS 10 -digit, they become 228 items.  
O 122 among those 228 items are considered as EGs. And 36 items of 122 items enjoyed 0% of 
MFN rates already in 2015.  
O In December 2015, Korea reduced tariff rates for the rest 86 items to 5%.  
 WT/TPR/M/346/Add.1  
 
- 194 - 
 
  ADDITIONAL QUESTIONS FROM MALAYSIA  
 
 
SECRETARIAT REPORT  
 
3.2.9.1 Standards, testing and certification, Para 3.70, Page 68.  
 
During the review period, the institutional setting in this area remained relatively unchanged. The 
Korean Agency for Technology an d Standards (KATS), an affiliate . The National Standards Council 
reviews general plans for the introduction of national standards and coordinates the standards -
related activities of the different ministries.  
 
Question 1  
 
Could ROK share the structure of th is National Standards Council and elaborate its purview and 
responsibilities? Does "standards -related activities" cover metrology and conformity assessment?  
 
ANSWER :  
1. Article 5 of 'Framework Act on National Standards' specifies the structure, authority and 
responsibility of National Standards Council as follows.  
 
Article 5(National Standard Council) 1) The government sets National Standard Council(hereafter, 
Council) as an affiliation of a Minister of Ministry of Trade, Industry and Energy(hereafter, MOT IE) 
to deliberate significant issues with respect to efficient work control among national 
standard -related government departments and Master plan for national standard according to 
article 7.  
2) The Council reviews following clauses.  
1. Founding master pl an for establishment, maintenance and development of national standard 
system and total control of national standard policy  
2. Total control for cooperation with standard -related institutes from foreign countries and 
international standard -related organiza tions.  
3. Work control for research, development and dissemination of standard -related technology  
4. Business of construction of conformity assessment system  
5. Deliberation and coordination of system and regulation pertaining to measurement standard, 
reference standard and documentary standard  
6. Work for unification of national standard and business for harmonizing national standard with 
international standard.  
7. Other significant issues with respect to establishment and maintenance of national standard 
system which is decided as a Presidential decree  
3) The Council consists of within 25 persons including a chairperson.  
4) The Minister of MOTIE becomes the chairperson and the members are appointed in accordance 
with following clauses.  
1. A public officer  of the vice -minister class  
2. A Vice -minister or a public officer of vice -minister class from related central administrative 
agency  
3. A director of representative organization of National measurement standards according to 
clause 1 of article 13  
4. Perso ns who are appointed by the Minister of MOTIE among person who has extensive 
knowledge and erudition in the field of standard and science technology and conformity 
assessment.(hereafter, appointed member)  
5) The Council has an assistant administrator, and he/she can be appointed by the Minister of 
MOTIE among a public officer under MOTIE.  
6) Term of appointed members is 3 years.  
7) The council sets affairs committee to conduct business entrusted by the council, pre -review, 
coordination, and specialized rese arch in relation to item for meeting.  
8) If majority of registered members attend, meeting of the council starts. And over two third 
parts of pre sented members agree, vote is passed.  
 
 
2. In accordance with clause 4, provision 2 of article 5 of " Framework  Act on National Standards" , 
standard -related activity National Standards Council reviews contains measurement and 
conformity assessment.  WT/TPR/M/346/Add.1  
 
- 195 - 
 
  3.2.9.1 Standards, testing and certification, Para 3.72, Page 68 -69. 
 
Under the Framework Act on Administrative Regula tions (l ast amended by Act No. 9965, 
25 January 2010), a regulatory impact analysis (RIA), including cost -benefit analysis, has been 
required since 1997, prior to introducing a new regulation or reinforcing existing regulations. The 
RIA has been ……… KATS i s implementing a technical regulatory impact assessment (TRIA) aiming 
to comprehensively review costs, advantages, impacts and compatibility of regulations for 
technical regulation issues. In 2015, out of 602 cases suggested for adjustment 52% were 
adjuste d. 
 
Question 2  
 
Could ROK elaborate further what the process of TRIA entail? How does the process of TRIA 
carried out by KATS differ from the RIA process carried out by MFDS? Is it a voluntary measure?  
 
ANSWER : 
Each government department containing MFDS sh ould perform RIA when it enacts or amends 
legislations. TRIA which is performed by KATS is to lastly check contents determined as a technical 
regulation, among RIA which are collected through the Office for Government Policy Coordination 
from whole governm ent departments.  
 
-Detailed procedures and assessment element of TRIA  
 
1. Procedures for the enactment/revision of regulations and TRIA  
Drafting 
legislation   ▶To achieve policy goals, review the necessity of establishing or reinforcing 
regulations, and alt ernatives, and engage in consultation with relevant 
agencies  
 
▶Draft enacted or revised regulation concerned, and create the RIA document   
   
Pre-
announcement of 
legislation & 
administration   ▶Notice to WTO/TBT  
In the event that a technical regulatio n to be put into practice has a significant 
effect on trade with other partner countries  
▶publicize the RIA result at the time of pre -announcement of legislation and 
administration   
   
Examination of 
adopted 
regulation by 
agency -in-charge   ▶Agency -in-charge modifies or supplements the initial RIA by reflecting 
opinions raised during pre -announcement of legislation and administration, or 
in the course of consultation with other relevant agencies  
 
▶To be reviewed by the Regulation Reform Committee of in dividual agencies  
 
   WT/TPR/M/346/Add.1  
 
- 196 - 
 
  TRIA   ▶Send draft legislation to be pre -announced, 
together with the RIA, to the Office for 
Government Policy Coordination (OPC)  
 
* The OPC requests respective working groups 
to assess the impact on competition, the 
impact on sm all and medium -sized enterprises 
(SME) and the impact on relevant technical 
regulations  
 
TRIA  
(Upon request by the OPC, Technical 
Regulatory Reform Division (TRR) of 
the KATS will perform the TRIA)  
  ▶(OPC)  
 
Requests TRR of the 
KATS to carry out the 
TRIA for the 
corresponding regulation 
(under study for 
legislation)  
 
▶(TRR)  
Performs the TRIA based 
on the documented RIA 
and sends its result to 
the OPC   
      
Examination by 
the Regulatory 
Reform Committee 
(RRC)   ▶Requests the RRC to examine the legis lation 
subject to enactment or reinforcement (RIA 
attached)   ▶(RRC)  
Reflects the results from 
impact assessments in 
three sectors, including 
opinions, at the time of 
regulatory examination  
 
     
Examination, etc 
by the Ministry of 
Government 
Legisl ation (MGL)   
▶Enters into enactment/revision of legislation  
 
 
2. Maps for TRIA and description  
 
◎ Maps dedicated to the TRIA are developed to allow easier access to the process for TRIA, a detailed 
description of which is given below.  
 
A. Maps for TRIA  
Div Subject of assessment by 
step Detailed description  
I. 
Feasibility 
of proposed 
regulation  1) Policy goals of regulation  · Recognize objectives/goals for enactment or revision of 
regulations  
· Recognize the hierarchical relationship with higher laws  
· Sufficiency in scope of enactment or revision of 
regulations  
· Validity regarding introduction of the regulation  
-Validity regarding reinforcement or relaxation of a 
regulation  WT/TPR/M/346/Add.1  
 
- 197 - 
 
  ② Trend and characteristics of 
regulation  · Recognize the subjects to be covered by the regulation 
(affected groups)  
- Investigate possible damage to affected groups  
· Whether a sufficient period of time for reaction is 
rendered prior to the enforcement  
· Whether the opinions of affected groups were reflected in 
regard to the enactment/revision of regulation (e.g. public 
hearing, etc.)  
Validity involving cost -benefit 
analysis  · Analyze validity of data in RIA regarding estimates on 
costs to be incurred an d benefits to be expected  
II.  
Adequacy 
of technical 
standard  ① Clarity and rationality  · Reasonableness of regulation & validity of scientific basis  
· Identify the extent to which what products are affected  
- While satisfying the regulatory goals, whether a 
proposed regulation is designed to minimize the 
regulatory impact in terms of quality, characteristics, 
process, manufacturing method, etc.  
Universality in application of 
regulation  · Whether it is biased in favor of specific companies, 
persons or agencies  
· Assuming that a proposed regulation (or standard) is 
applied, whether the stakeholder has ease of access to the 
related facility, environment, labor, system, etc. including 
the possibility of using them  
Overlap  · Whether intended goals can also be accomplished by way 
of other legislation (or, system) curren tly in effect  
· Whether it overlaps with similar systems set forth by this 
or another agency in terms of the intended goal and effect  
Excessive strictness  · Compare the degree of strictness with technical 
standards of domestic similar systems  
- Type of regulation, content, etc.  
· Compare the degree of strictness with technical 
standards of foreign similar systems  
- Type of regulation, content, etc.  
Harmony with national or 
international standards  · Whether it is in harmony with national (KS, KCS, et c.) or 
international standards (ISO, IEC, etc.)  
· Whether there is an international agreement or treaty 
that is related with the proposed regulation, and if so, 
whether the proposed regulation is compliant  
- Whether it infringes any WTO treaties (TBT, SPS 
treaty, etc.)  
III.  
Adequacy 
of 
conformity 
assessment  1) Clarity and rationality  · Rationality in conformity assessment and validity in 
scientific grounds  
2) Complexity  · Whether or not the procedure is excessively complicated 
when compared with other conformity assessment 
systems  
- Type of assessment  
- Whether testing, inspection, certification or system 
evaluation are necessary  
- Necessity of ex post facto management  
1) Appropriate frequency  
2) Appropriate number of samples  
3) Method for ex post facto  management (factory, market)  WT/TPR/M/346/Add.1  
 
- 198 - 
 
  Excessive strictness  · Whether it is excessively strict considering the intended 
regulatory purposes  
- Degree of strictness in type, content and procedure  
· Whether it is excessively strict compared with 
domestic/foreign con formity assessment systems  
· Whether it is possible to convert it to a declaration of 
conformity  
· (for a government -led certification) Whether it is possible 
to convert it to a certification system by third -party 
private certification bodies  
Harmony wi th national or 
international standards  · Whether it is in harmony with national standards (KS, 
KCS, etc.) or international standards (ISO, IEC, etc.)  
· Whether it is compliant with international conformity 
assessment systems  
· Whether there exists an inter national agreement or 
treaty with which the proposed regulation is related, and if 
so, whether the proposed regulation is compliant  
- Whether it infringes WTO treaties (TBT, SPS treaty, 
etc.) 
· Whether conformity assessment results are accepted 
based on in ter-agency mutual recognition  
· Whether there is the possibility of mutual recognition 
with foreign CABs to enable conformity assessment to be 
deemed competent by both parties  
Adequacy of CAB  · Whether requirements for designation as a CAB have 
appropri ateness  
- Whether it is possible to expand designated CABs  
· Whether CABs are under appropriate control  
- Adequacy, fairness, responsibility, etc. in 
consideration of ISO/IEC 17065 (Conformity 
Assessment —Requirements for bodies certifying 
products, process es and services) and ISO/IEC 17021 
(Conformity assessment —Requirements for bodies 
providing audit and certification of management 
systems)  
6) Ex post facto management  · Adequacy in ex post facto management  
- Whether ex post facto management such as perio dic 
factory inspection or market surveillance can be 
properly accomplished  
7) Interval of conformity 
assessment certificate  · Whether the interval of the conformity assessment 
certificate is appropriate  
- Whether it is possible to extend the term of vali dity 
of the conformity assessment certificate  
  
 
 
 
 
3.2.9.1.3 Conformity Assessment, Para 3.82, Page 71.  
 
Korea maintains a single national integrated certification mark, the Korea Certification (KC) mark, 
fully implemented as from January 2011.  
 WT/TPR/M/346/Add.1  
 
- 199 - 
 
  Quest ion 3  
 
Malaysia commends ROK's efforts in establishing a single national integrated 
certification mark; Korea Certification Mark (KC). Malaysia is interested to know:  
 
a) Who is the custodian of the mark?  
 
ANSWER : KC mark is integrated national certification mark and supervised by each government 
department that asks certification. For instance, Ministry of Trade, Industry and Energy manages 
safety certification of electricity of 'Electrical Appliances Safety Control Act' and Ministry of Science, 
ICT and Futur e Planning handles electromagnetic certification of the 'Wireless Telegraphy Act'.  
 
 
b) What are the procedures to obtain the mark?  
 
ANSWER : 
To obtain KC certification mark, procedures should be observed according to law of each 
government department.  
For ins tance, KC certification mark for electric products can be obtained through safety test from 
safety certification authority.  
 
c) How are industry's responses towards implementation of the mark?  
 
ANSWER : 
Certification system for electric products has been opera ted from year of 1974. And corporations 
have got certification for safety assurance of products.  
 
d) How is the enforcement carried out for the mark?  
 
ANSWER : 
Rule for implementation of KC mark is asked from each law. For instance, electric products should 
indicate KC mark before clearance or release.  
 
 
3.2.9.1.3 Conformity Assessment, Para 3.83, Page 71  
 
In 2011, KATS set a five -year comprehensive plan on quality management to identify quality -
related issues that could be addressed to enhance sustainable grow th and Korea's international 
competitiveness. The plan laid out 15 major actions and strategies in order to rank 10th in terms 
of global quality competitiveness by the year 2015; its results have been generally satisfactory and 
at present KATS is working o n a basic plan of quality management for 2016 to 2020.  
 
Question 4  
 
Could ROK elaborate on the scope of the quality management plan and what the indicators are for 
the global quality competitiveness?  
 
ANSWER :  
Quality management plan deals with composition  of environment on quality management such as 
development and dissemination of quality management technique and cultivation and utilization of 
manpower, for promotion of quality management activity for whole industry.  
The global quality competitiveness is calculated utilizing 51 factors and data pertaining to quality, 
such as decree of customer orientation and local supplier quality among factors of the global 
quality competitiveness index which is annually announced from WEF(World Economic Forum) and 
IMD(I nternational Institute for Management Development).  WT/TPR/M/346/Add.1  
 
- 200 - 
 
  ADDITIONAL QUESTIONS  FROM  MEXICO  
 
 
Preguntas de México  para el séptimo examen de las Políticas Comerciales de la República de 
Corea (del Sur) a llevarse a cabo del martes 11 y jueves 13 de octubre de 20 16.  
 
Informe de la Secretaría (WT/TPR/S/346):  
 
Preguntas 16 a 19. WT/TPR/S/346 • Corea; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.2 Medidas que afectan directamente a las 
importaciones; 3.2.8 Medidas especiales; 3.2.8.1  Medidas antidumping y 
compensatorias:  
Páginas 76 y 77, párrafo 3.66. Durante el período objeto de examen, Corea recurrió con mucha 
mayor frecuencia a medidas antidumping.13 Entre 2012 y 2015, inició 20 investigaciones 
antidumping (en comparación con 8 en 2008-2011) en relación con las botellas de aluminio 
(Japón), la madera contrachapada (China), las películas de polipropileno de orientación biaxial 
(China, Indonesia y Tailandia), las películas de tereftalato de polietileno (Japón), la etanolamina 
(Estados  Unidos, Japón, Malasia y Tailandia), los hilados de filamentos de poliéster parcialmente 
orientados (India, Malasia y Tailandia), las válvulas para transmisiones neumáticas (Japón), los 
perfiles de acero para construcciones (China), el acetato de etilo (I ndia) y el contrachapado de 
coníferas (China).14 Al mes de diciembre de  2015, había 32 medidas antidumping en vigor en 
relación con 12 productos, principalmente cloruro de colina (4 casos), etanolamina (4 casos), 
acetato de etilo (3 casos), películas de ter eftalato de polietileno (3 casos), películas de 
polipropileno de orientación biaxial (3  casos) y barras/chapas de acero inoxidable (2 casos); en 
marzo de  2012 había 31 medidas en vigor. Las medidas afectaban principalmente a productos 
originarios de Asia ( 28 de ellas iban dirigidas principalmente a productos procedentes de China 
(10), el Japón (7), la India (3), Malasia  (3) y Tailandia (2)) y, en menor medida, a productos 
procedentes del Canadá, la UE (España) y los Estados Unidos.15 Prácticamente todas las medidas 
definitivas consistieron en derechos definitivos. Entre 2012 y 2015, Corea concluyó 13 exámenes 
por extinción, de los cuales  12 dieron lugar a la prórroga de la s medidas y 1 a su supresión; 
3 medidas se suprimieron sin ser sometidas a examen. En en ero de  2016 se estaba realizando un 
examen por extinción. El  15 de marzo de  2016, el Japón solicitó la celebración de consultas con 
Corea, en el marco del sistema de solución de diferencias, en relación con las medidas por las que 
se imponen derechos antid umping a las válvulas para transmisión neumática ("válvulas 
neumáticas") procedentes del Japón (sección 2.5.1).  
 
México pregunta 16:  Entendemos que el aumento en el número de inicios tiene una relación 
estrecha con el aumento en el número de solicitudes de  inicio por parte de los productores 
coreanos. ¿Podría Corea explicar a qué atribuye el aumento del número de solicitudes de inicio de 
investigaciones antidumping durante el periodo del actual e xamen con respecto al anterior?  
 
ANSWER : As mentioned in the a bove question, the increase of AD investigation is the result of 
applications by domestic industries who find that they were injured by the dumped imports. There 
is no known other factors which contribute to the increase of such investigation. We, therefor e, are 
not in a position to give further  explanation on this question.  
 
México pregunta 17:  En relación a los exámenes por extinción concluidos entre 2012 y 2015, 
¿podría Corea aclarar cuantos de dichos exámenes fueron iniciados de oficio y cuantos a soli citud 
de la rama de producción nacional?  
 
ANSWER : All of them were initiated following the request of the domestic industries, tha t is, no ex 
officio initiation.  
 
                                                
13 Con 127 procedim ientos iniciados entre 1995 y 2014, Corea ocupaba el puesto número 12 entre los 
países que recurren más frecuentemente a medidas antidumping. Información en línea de la OMC. Consultada 
en: https://www.wto.org/english/tratop_e/adp_e/adp_e.htm . 
14 Documentos de la OMC G/ADP/N/230/KOR, de 6 de agosto de  2012; G/ADP/N/237/KOR, de 
4 de febrero de  2013; G/ADP/N/244/KOR, de 2 de agosto de  2013; G/ADP/N/252/KOR, de 4 de marzo 
de 2014; G/ADP/N/259/KOR, de 10  de septiembre de  2014; G/ADP/N/265/KOR, de 9 de febrero de  2015; 
G/ADP/N/272/KOR, de 19 de octubre de  2015; y G/ADP/N/280/KOR de 6 de abril de  2016.  
15 Documento G/ADP/N/280/KOR de la OMC, de 6 de abril de  2016.  WT/TPR/M/346/Add.1  
 
- 201 - 
 
  México pregunta 18:  ¿Podría Corea explicar, en términos generales, las razones por las que se  
suprimieron esas 3 medidas, sin ser sometidas a exámenes por extinción?  
 
ANSWER : Without request for sunset reviews, on -going measures are terminated. But there is no 
known reason of not req uesting further sunset reviews.  
 
México pregunta 19:  En caso de q ue se hayan iniciado exámenes por extinción de oficio, y alguna 
de las 3 medidas señaladas en la pregunta anterior se haya suprimido porque la rama de 
producción nacional no haya solicitado el examen por extinción ¿podría Corea explicar, de manera 
general,  las razones por las que no se iniciaron exámenes por e xtinción de oficio sobre esas 
3 medidas?  
 
ANSWER : As reponded above, Korea has not determined ex -officio initiation so far and there is no 
known reason for it.  
 
Pregunta 20. WT/TPR/S/346 • Corea; Infor me de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.2 Medidas que afectan directamente a las 
importaciones; 3.2.8 Medidas especiales; 3.2.8.1 Medidas antidumping y 
compensatorias:  
 
Página 77, párrafo 3.67. Corea nunca ha adoptado medi das compensatorias. Desde el último 
examen de sus políticas comerciales, ha presentado regularmente informes semestrales sobre 
medidas antidumping y medidas compensatorias a los comités pertinentes de la OMC.  
 
México pregunta 20:  ¿Podría Corea indicar si h a recibido solicitudes para el inicio de 
investigaciones sobre subvenciones y derechos compensatorios? En su caso, ¿podría Corea indicar 
de manera general por qué no se han iniciado investigaciones sobre derechos compensatorios y en 
caso de que sí se hayan  iniciado, por qué no se han impuesto medidas compensatorias?  
 
ANSWER : No. Korea did not received applications for the CVD investigation during the period of 
review.  
 
Pregunta 21. WT/TPR/S/346 • Corea; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COME RCIALES, POR MEDIDAS; 3.2 Medidas que afectan directamente a las 
importaciones; 3.2.8 Medidas especiales; 3.2.8.2 Salvaguardias; Consideraciones 
generales:  
Página 77, párrafo 3.68. Se podrán adoptar medidas de salvaguardia, incluso provisionales, 
cuando, c omo consecuencia de la evolución imprevista de las circunstancias y el efecto de 
obligaciones contraídas en virtud del GATT de  1994, el aumento de las importaciones cause o 
amenace causar un daño grave a los productores nacionales de un producto similar o directamente 
competidor. Al decidir qué tipo de medidas de salvaguardia se aplicará y cuál será su duración, la 
KTC tiene en cuenta los efectos de las importaciones en las ramas de producción nacional de que 
se trate, el nivel de los precios internos, el i nterés de los consumidores y las relaciones 
comerciales internacionales.16 Las medidas de salvaguardia son aplicables durante un máximo de 
cuatro años (200 días si son provisionales), pero se pueden prorrogar cuatro años con sujeción a 
un nuevo examen.17 Desde el último examen, realizado en 2012, no se han aplicado medidas de 
salvaguardia; la última investigación en este ámbito se remonta a 1999.  
 
México pregunta 21:  ¿Podría Corea explicar de qué forma se toma en cuenta el interés de los 
consumidores y de qué  manera influyen las relaciones comerciales internacionales al decidir qué 
tipo de medidas de salvaguardia se aplicará y cuál será su duración?  
 
ANSWER : Safeguard measures will be applied in consultation with the head of central 
administrative authorities concerned to take safeguard measures. Additionally there is no 
safeguard measures since 2002.  
 
 
                                                
16 Artículo 17 de la Ley Nº 6417 (documento G/SG/N/1/KOR/5 de la OMC, de 26 de octubre de  2001).  
17 Artícu lo 19.5 de la Ley Nº 6417 (documento G/SG/N/1/KOR/5 de la OMC, de 26 de octubre de  2001).  WT/TPR/M/346/Add.1  
 
- 202 - 
 
  Preguntas 22 a 24. WT/TPR/S/346 • Corea; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.3 Medidas que afectan directamente a las 
exportaciones; 3.3.3 Subvenciones a la exportación:  
 
Páginas 97 y 98, párrafo 3.128: Corea no tiene compromisos sobre subvenciones a la exportación; 
durante el período objeto de examen, siguió utilizando subvenciones a la exportación para algunos 
productos  agrícolas con arreglo a las disposiciones del párrafo 4 del artículo 9 del Acuerdo sobre la 
Agricultura de la OMC en favor de los países en desarrollo, pero las autoridades no han facilitado 
datos recientes sobre las cuantías.18 Estas subvenciones, notific adas por última vez al Comité de 
Agricultura de la OMC en 2010, ascendieron en total a 32.680 millones de won (2008) y abarcaron 
los siguientes productos: frutas, flores, legumbres y hortalizas, kimchi, ginseng, ganado, cereales 
y alimentos elaborados, y b ebidas alcohólicas tradicionales.19 Las subvenciones se destinaron a 
reducir los costos de comercialización de los exportadores y están exentas de los compromisos de 
reducción asumidos en la OMC. Cuando se realizó el examen anterior, las autoridades indicar on 
que los datos sobre las subvenciones a la exportación para 2012 y años posteriores se facilitarían 
en 2012, pero en junio de 2016 no se había presentado ninguna notificación; han comunicado 
ahora su intención de notificar dichas subvenciones en el trans curso de 2016. Corea no considera 
que la desgravación del impuesto sobre la renta de las empresas instaladas en zonas francas esté 
sujeta a notificación a la OMC (sección 3.4.3).  
 
México pregunta 22:  ¿Podría Corea señalar, de manera aproximada, cuándo se p resentarán las 
notificaciones sobre subvenciones a la exportación para 2012 y años posteriores?  
 
ANSWER : Korea is currently on the phase of finalizing and confirming its export subsidy 
notifications, and plans to submit them before the end of 2016.  
 
México  pregunta 23:  ¿Podría Corea explicar por qué considera que la desgravación del impuesto 
sobre la renta de las empresas instaladas en zonas francas no está sujeta a notificación a la OMC?  
 
ANSWER : Tax incentives provided in FTZs are were notified to WTO in accordance with the 
Agreement on Subsidies and Countervailing Measures . 
 
México pregunta 24:  ¿Corea considera que dicha desgravación no está sujeta a notificación a la 
OMC aun cuando una determinada empresa que disfrute de dicha desgravación sea una empres a 
exportadora?  
 
ANSWER : Tax incentives provided in FTZs are were notified to WTO in accordance with the 
Agreement on Subsidies and Countervailing Measures  
 
                                                
18 Corea considera que, en virtud de la Declaración Ministerial de Hong Kong de  2005, en la que se 
estipula que "Los países en desarrollo Miembros seguirán beneficiánd ose de las disposiciones del párrafo 4 del 
artículo 9 del Acuerdo sobre la Agricultura durante un período de cinco años después de la fecha final para la 
eliminación de todas las formas de subvenciones a la exportación" (es decir, 2016), y la Declaración M inisterial 
de Nairoibi de  2015, que especifica que "se beneficiarán de las disposiciones del párrafo 4 del artículo 9 del 
Acuerdo sobre la Agricultura hasta cinco años después de la fecha final para la eliminación de todas las formas 
de subvenciones a la e xportación" (es decir, 2018), tendría derecho a mantener hasta 2023 las subvenciones a 
la exportación que cubren los costos de comercialización y transporte de las exportaciones de productos 
agropecuarios, indicadas en los apartados d) y e) del párrafo 1 d el artículo 9 del Acuerdo.  
19 Documentos G/AG/N/KOR/36 y G/AG/N/KOR/42 de la OMC, de 27 de  febrero de  2007 y 
4 de octubre  de 2010, respectivamente.  WT/TPR/M/346/Add.1  
 
- 203 - 
 
  QUESTIONS FROM RUSSIAN FEDERATION  
 
 
QUESTIONS REGARDING THE SECRETARIAT REPORT (WT/TPR/S/346)  
 
SUMM ARY  
 
 
2.3. Korea has the third -lowest FDI stock in the OECD area, which is due in part to the remaining 
trade and investment barriers. Foreign investment is regulated under the Foreign Investment 
Promotion Act, which was most recently amended in 2016 to a ttract investment from global 
companies. FDI in a few sectors remains restricted: out of 1,145 categories of businesses, foreign 
investment is not permitted in 5.2% of businesses activities (such as nuclear power generation, 
broadcasting, and rice and barl ey growing), and is partially permitted in 2.5% of business 
activities (such as transport services, broadcasting and telecom services, and some financial 
services). Apart from these, foreigners are allowed to invest in the country without restraint. 
Incent ives to FDI are given by the central and local governments, mainly in the form of tax 
exemptions/reductions, cash grants, and industrial site support. The cost effectiveness of these 
incentives remains questionable.  
 
Question:  
Could the Republic of Korea please provide some additional details with respect to the recent 
amendments of the Foreign Investment Promotion Act? What types of activity are permitted for 
FDIs in transport services? Is Korea considering extending the liberalization of its foreign 
investment regime to remaining restricted businesses activities?  
 
ANSWER : 
The Foreign Investment Promotion Act was amended in July. 2016, to simplify FDI notification and 
registration procedures. Before the amendment, the foreign Investor or the foreign invest ed 
company had to submit notification form of 6 categories in the process of operation business. As a 
recent Act, the foreign Investor or the foreign invested company had to submit notification form 
only about 3 categories. In transportation services, the FDIs are permitted except for air 
transportation services and domestic coastal passenger/freight services. The FDI restrictions in 
some business categories are operated to protect National Security, Public Order and so on, based 
on the rule of WTO GATS. Th e Korean government reviews the restricted categories and contents 
of restrictions annually, in accord with the domestic laws and multilateral/bilateral agreements.  
 
 
3.2.10 Government procurement  
 
Para. 3.109, page 79  
 
Korea operates international tenderi ng and other procurement procedures in accordance with its 
commitments under the WTO Plurilateral Agreement on Governm ent Procurement (GPA). As of 
14 January 2016, the revised GPA came into force for Korea, thus opening its government 
procurement market to  more international competition. During the review period, its list of public 
entities subject to GPA provisions was revised on 22 September 2013 and on 8 May 2016, and 
information on its respective threshold figures in national currency was provided. As f rom 
18 December 2015, the WTO GPA threshold has been ₩210 million, down from ₩250 million (or 
from SDR 450,000 to SDR 400,000), whereas since the entry into force of the KORUS FTA 
(15 March 2012, Section 2.6.2), the threshold for goods and services from th e United States has 
remained at ₩100 million. Korea's international tendering system is based on open competitive 
tendering; according to the authorities, restricted tendering is rarely used (see below). According 
to the authorities, the value of contracts  subject to Korea's WTO Government Procurement 
Agreement (GPA) commitments dropped to about ₩6.3 billion in 2015 (₩6.7 billion in 2014), 
equivalent to about 6% of the value of the entire government procurement market. In the case of 
contracts subject to Ko rea's WTO GPA commitments, centralized procurement (see below, Public 
Procurement Service (PPS)) represents 15% of total procurement of GPA -covered entities. No 
detailed statistical data on the participation of WTO GPA -covered entities in the government 
procurement market operations were available from the authorities; Korea's only notifications over 
the past ten -year period were in 2006 (2004 data) and 2011 (2010 data).  
 WT/TPR/M/346/Add.1  
 
- 204 - 
 
  Question:  In accordance with the regulations of  Public Procurement Service (PPS) with  respect to 
participation in tendering proceedings, in particular in air transport equipment the conformity 
certificates of Federal Aviation Administration (USA) or European Aviation Safety Agency are  
exclusively required. What are the grounds for providin g an ad vantage to mentioned 
WTO members? Does the Republic of Korea intend to amend or remove above -mentioned 
requirements?  
 
ANSWER : 
The PPS regulations do not require for bidders to possess FAA or EASA certificate in order to 
participate in bidding for su pply of air transport equipment posted in Korea. However, in case 
where Korea government entity purchases air transport equipment from outside, FAA or EASA 
certificate can be required in accordance with the domestic aviation regulation as airworthiness 
(Artifice 15) or type certificate (Article 17) which are managed by the Aviation Policy Division at 
the Ministry of Land, Infrastructure and Transport(MOLIT).  
 
 
4 TRADE POLICIES BY SECTOR  
4.5 Manufacturing  
Para. 4.94, page 130  
 
MOTIE has a number of initiativ es to promote the development of the manufacturing sector, such 
as the "Industry Innovation 3.0", the "Industry Initiatives for the Creative Economy", the "Second 
Basic Plan for Intelligent Robot Development (2014 -18)", the "Development Plan for Printed 
Electronic Industry", and the "Industrialization of bio - and nano -technology".36 The authorities 
stated that important measures adopted include promoting R&D investment, reducing and 
removing regulatory barriers, supplying smart manufacturing systems (smart factory) to improve 
productivity of SMEs, and developing a standards and certification system for new technology.  
 
Question:  
Could the Republic of Korea please provide descriptions of the "Industry Innovation 3.0", "Industry 
Initiatives for the Creative E conomy", "Second Basic Plan for Intelligent Robot Development (2014 -
18)", "Development Plan for Printed Electronic Industry" and "Industrialization of bio - and nano -
technology" initiatives? What measures are proposed to implement each of the mentioned 
initiatives?  
 
ANSWER : 
The relevant information is available at http://english.motie.go.kr . 
 
 
4.5.2 Automotive  
 
Para. 4.108, page 132  
 
The Government has implemented some tax and other incentives for the automobile sector during 
the review period, to boost cons umption. For example, for cars of more than 2,000 cc, individual 
consumption tax was lowered from 10% in 2011 to 5% in  2015, and then to 3.5% from 
27 August  2015 to June 2016; for other cars, the individual consumption tax was lowered from 5% 
to 3.5% from 27 August 2015 to June 2016; for hybrid cars, individual consumption tax, education 
tax, and acquisition tax were reduced (until 2018), and urban rail bond or community development 
bond purchase were exempted; for electric cars, both individual and educati on tax were reduced 
(until 2017), acquisition tax was reduced (until 2018), and urban rail bond purchase was 
exempted.  
 
Question:  Could the Republic of Korea please provide further information on other incentives 
implemented by the Government for the auto mobile sector?  
 
ANSWER:  
It is not clear what are other incentives described in the secretariat report beyond tax incentives.  
 WT/TPR/M/346/Add.1  
 
- 205 - 
 
  ADDITIONAL QUESTIONS FROM RUSSIAN FEDERATION  
 
 
QUESTIONS REGARDING THE SECRETARIAT REPORT (WT/TPR/S/346)  
 
SUMMARY  
 
 
6. As an ori ginal Member of the WTO, Korea grants at least MFN treatment to all its trading 
partners. The general trade policy objective remains to build a free and open economy based on 
market principles, and the Government has been rigorously pursuing market opening  opportunities 
through not only multilateral, but also regional trade agreements. Six RTAs entered into force 
during the review period (with China, New Zealand, Viet Nam, Canada, Australia, and Turkey), 
adding to the existing RTA network with large economi c blocs and newly emerging markets (with 
ASEAN, APTA, Chile, EFTA, the EU, India, Peru, Singapore, and the United States). Rice remains 
excluded from all the RTAs. Maintaining its developing country status, Korea has been eligible for 
trade preferences und er the GSP schemes of Australia, Belarus, Kazakhstan, and the Russian 
Federation. Korea has continued to provide duty -free treatment to most imports from LDCs.  
 
 
Question:  Could the Republic of Korea please specify other agricultural products, which are 
usually excluded from Korean RTAs?  
 
ANSWER : 
Rice was excluded from all 15 FTAs Korea has concluded so far, and sometimes other items were 
also excluded through negotiations with each partner country. For exa mple, 42  items  (soybeans, 
red peppers, garlics, gi nseng, etc.) were ex cluded from Korea -EU FTA and 64  items  (red peppers, 
garlics, onions, beef, pork, etc.) were exc luded from Korea -ASEAN FTA. 158  items  (red peppers, 
garlics, welsh onions, etc.) were excluded from Korea -Australia FTA and 211 items  (cheese , 
ginseng roots, leaf tobacco, etc.) were excluded from Korea -Canada FTA.  
 
 
7. The Government has continued to improve its regulatory framework to reduce the burden of 
doing business. In 2014, the Government launched the "cost -in, cost -out" approach to avo id 
introducing unnecessary new regulations. From January 2014 to January 2015, the number of 
economic regulations was cut by 10%. Korea has taken steps to fulfil its transparency obligations 
at the multilateral level by, inter alia , meeting its WTO notific ation requirements, though 
notifications in certain areas (e.g. government procurement, export subsidies, and domestic 
support in agriculture) have been subject to long submission gaps.  
 
Question:  Please provide the relevant numbers for the mentioned abov e notifications on 
government procurement, export subsidies and domestic support in agriculture? Describe the main 
substance of them.  
 
ANSWER : 
Agricultural marketing program is a project through which the government partially subsidizes 
logistical costs of  agro-livestock products on the basis of Article 9.4 of the Agreement on 
Agriculture and the total value of subsidies is as below. The details will be included in our next 
export subsidy notification.  
 
year 2009  2010  2011  2012  2013  2014  
total value  
(₩ billion)  39.7 39.4 35.5 37.0 31.1 31.6 
 
Main substances of Korea's agricultural domestic support are included in Korea's latest DS:1 
notification(G/AG/N/KOR/53).  
 
8. The tariff remains one of Korea's main trade policy instruments, and a significant, alb eit 
declining, source of tax revenue. The 2016 customs tariff remains transparent but is relatively 
complex, involving a multiplicity of rates (85 ad valorem  duties, 44 alternate duties, and 1 specific WT/TPR/M/346/Add.1  
 
- 206 - 
 
  duty) often with small rate differences and some invol ving decimal points. As a result of changes 
relating to the insertion of 16 tariff lines at 513% (rice and rice products), the splitting of tariff 
lines with high rates and the merger of tariff lines with low rates, the average applied MFN tariff 
rate incr eased from 13.3% in 2012 to 14.1% in 2016. This remains high by OECD -country 
standards, thereby requiring tariff concessions or drawbacks to ensure that tariffs on intermediate 
inputs do not become taxes on exports, adding to the complexity of border taxat ion. Peak 
ad valorem  rates also remained unchanged and concentrated in agricultural items (WTO 
definition); applied MFN tariff rates ranged from zero to 887.4% (for manioc). As was the case in 
2012, 85% of rates were 10% or below in 2016. Tariff -rate quota s are in place under Korea's 
multilateral agricultural market access commitments, with in -quota rates ranging from zero to 
50% (2016) compared with out -of-quota rates of up to 887.4%, and with a decreasing average fill 
rate of 59.5% (2015). Other measures (e.g. "autonomous" tariff quotas, usage tariffs, and duty 
concessions) selectively reduce tariffs on inputs. Korea has bound 90.1% of its tariff lines; that is, 
99.6% of agricultural lines (excluding seaweeds and bait fo r fishing) and 88.6% of its 
non-agricultural lines (WTO definitions). The gap of 4.4 percentage points between the average 
bound and applied MFN tariff rates imparts a degree of unpredictability to the tariff regime and 
provides scope for the authorities to raise applied rates within the bin dings. Korea has continued 
to use this gap to apply higher MFN duties (e.g. adjustment duties) termed "flexible tariffs", which 
the authorities maintain are within WTO bindings; product coverage under "flexible tariffs" fell 
from 216 (HS six -digit) items i n 2012 to 145 in 2016.  
 
 
Question:  Please clarify the reasons for increasing average applied MFN tariff rate from 13.3% in 
2012 to 14.1% in 2016. Please specify the products for which the tariff rates were increased? Is 
Korea considering decreasing the le vel of tariff rates for agricultural goods? If yes, when the 
relevant amendments are expected?  
 
ANSWER : 
The increasing of simple average MFN tariff does not constitute an actual increase in the tariff rate. 
It is the outcome of insertion of 16 tariff line s at 513% for rice an d rice products since 
1 January  2015.  
Korea already signed FTAs with a number of trading partners and Korea is also under several FTA 
negotiations with other countries. In this regard, Korea plans to realign our overall tariff regime 
including simplification and reduce tariff rates at some point where Korea concludes the ongoing 
negotiations of FTAs, RTAs, WTO DDA and plurilateral agreement.  
 
10. Rice import quotas were replaced as of 1 January 2015 by a tariff -rate quota of 5% and a 
virtually prohibitive 513% out -of-quota duty. Import licensing requirements cover numerous tariff 
items and prohibitions are maintained mostly for the protection of public morals, human health, 
hygiene and sanitation, animal and plant life, environmental con servation or essential security 
interests in compliance with domestic legislation requirements or international commitments. 
Korea intensified the use of anti -dumping provisions, mainly against imports of chemicals, plastics, 
and stainless steel; it initia ted 20 anti -dumping investigations (2011 -2015) and had 32 final 
measures in effect on imports from 11 countries, mostly in Asia. Price -based special safeguard 
provisions (SSG) have been imposed on ginseng and rice and  related products, while 
volume -based S SGs were imposed for the first time since 2007 on ground -nuts, rice and related 
products, cereal flour and other worked grain.  
 
 
Question:  Please confirm that in -quota rate of 5% and out -of-quota rate of 513% are applied? 
Please specify the amount of this  quota and the mechanism of its allocation?  
 
ANSWER : 
Special treatment on rice ended on 1 January 2015 and 5% in -quota rate and 513% out -of-quota 
rate are now being applied on the import of rice. The total volume of TRQ is 408,700 MT and 
administered based  on a global quota according to the MFN principles of the GATT.  
 
 
20. Manufacturing contributed to about 30% of GDP, 17% of total employment and around 85% of 
total merchandise exports. Manufacturing activities are dominated by large conglomerates, with a 
large labour productivity gap between large firms and SMEs. The simple average applied MFN tariff 
rate was 11.3% (ISIC 3) on imports of manufacturing products, and the rate was 6.3% on WT/TPR/M/346/Add.1  
 
- 207 - 
 
  manufacturing excluding food processing products; both are much lower t han the rates for 
agricultural products. Sector -specific support included incentives to upgrade the steel industry, and 
the financing arrangement of the shipbuilding industry.  
 
 
Question:  Could Korea please describe the measures of sector -specific support  and incentives for 
the steel industry? Please elaborate on plans to upgrade this industry.  
 
ANSWER : 
The upgrading specific industry in Korea is driven by the private sector not by the government.  
 
21. The share of services to GDP and total employment incr eased slightly to 59.7% and 69.8% in 
2015; the same year they represented 17.8% of total exports. Labour productivity of the services 
sector is only half that of the manufacturing sector, reflecting policies favouring the manufacturing 
sector (including ta x incentives and sector -specific supports). Foreign equity restrictions apply to 
several services sectors, notably facilities -based basic telecommunications, air transport and 
maritime services. The Government has been encouraging banks, which had a tradit ionally close 
relationship with large conglomerates and their subsidiaries, to shift lending to consumers and 
SMEs, and to invest overseas. None of the major players in both fixed -line and mobile phone 
market are state owned. Restrictions are also applied on the access of large retailers (super 
supermarkets) to traditional markets. Korea has made commitments beyond GATS in the context 
of some RTAs, although its GATS commitments remain unchanged.  
 
Question:  Could Korea please provide information on the comm itments beyond GATS in the 
context of each Korean RTAs that has provisions concerning services?  
 
ANSWER : 
Korea has adopted services liberalization commitments under the FTAs with: ASEAN, Chile, EFTA, 
the EU, India, Peru, Singapore, the United States, Austr alia, Canada, China, New Zealand, 
Colombia, Turkey, and Viet Nam. All of these FTAs contain commitments that go beyond GATS. All 
FTA texts and commitment schedules/negative lists can be found on the Korea FTA website, 
http://www.fta.go.kr.  
 
 
2.6.2 Regional  and preferential agreements  
Para 2.36, page 36  
 
Korea continues to actively pursue RTAs with its key trading partners. Over the review period, six 
FTAs entered into force: with China (on 20 December 2015), with New Zealand (on 20 December 
2015), with Vie t Nam (on 20 December 2015), with Canada (on 1 January 2015), with Australia 
(on 12 December 2014), and with Turkey (on 1 May 2013). Korea also signed an FTA with 
Colombia (on 21 February 2013), which has not yet entered into force.28 Korea already has RTA s 
with ASEAN, some Asia -Pacific countries under APTA, Chile, EFTA, the EU, India, Peru, Singapore, 
and the United States. It made early announcements to the WTO of negotiations with Mexico and 
Japan. The key features of these RTAs are set out in Table 2.2.   
 
 
Question:  In respect of the RTA with Colombia, does this RTA concern only trade in goods or also 
services, investment and other areas? When this RTA will come into force? When all transitional 
periods end? Please elaborate on the progress are the negot iations with Mexico and Japan? What 
results have been already reached?  
 
ANSWER : 
The Korea -Colombia FTA consists of 22 Chapters, including following Chapters; National Treatment 
and Market Access for Goods, Rules of Origin and Or igin Process, Investment, Cr oss-border Trade 
in Services, Government Procurement, Intellectual Property Rights, and Cooperation. Hence, the 
Korea -Colombia FTA concerns not only trade in goods, but also services, investment and other 
areas. This FTA entered into force on 15 July 2016.  
 
 WT/TPR/M/346/Add.1  
 
- 208 - 
 
  Para 2.37, page 39  
 
Korea is also a party to the Trade in Services Agreement (TISA) negotiations. In November 2012, 
the launch of Korea -China -Japan RTA and the RCEP (Regional Comprehensive Economic 
Partnership) negotiations were officially announced. Ko rea is currently negotiating bilateral FTAs 
with six Central American countries (El Salvador, Panama, Guatemala, Honduras, Nicaragua and 
Costa Rica) and with Ecuador. On 24 May 2016, Korea reached an agreement with Israel to launch 
FTA negotiations.  
 
Ques tion 1 : Please elaborate on the progress in the negotiations on Korea -China -Japan RTA? 
What spheres do parties plan to include in this RTA?  
 
ANSWER : 
For 3 years after the 1st negotiation in March 2013, Korea -China -Japan FTA negotiations were held 
10 times.  It aims a comprehensive trilateral FTA which covers trade in goods, services, 
investment, e -commerce, intellectual property, and government procurement, etc., and has not 
commenced Market Access negotiations yet.  
 
 
Question 2:  Does Korea plan to conclude six separate FTAs with Central American countries or it 
will be a single FTA with mentioned countries?  
 
ANSWER : 
Korea plan to conclude a single FTA with mentioned countries. However, the provisions of this 
Agreement apply between Korea and Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua 
and Panama, considered individually. This Agreeme nt does not apply between Costa  Rica, 
El Salvador, Guatemala, Honduras, Nicaragua and Panama.  
 
 
Question 3:  With respect to FTA with Israel it is mentioned that Korea  reached an agreement with 
Israel to launch FTA negotiations please, clarify does it mean that Korea started a research on FTA 
or started the negotiations? If so, when does Korea plan to proceed the negotiations? Will this FTA 
include services and investme nt or only trade in goods?  
 
ANSWER : 
The Korea -Israel FTA was launched in May, and the negotiations started in June. The 1st round of 
talks was held in June in Seoul. The Korea -Israel FTA includes trade in goods and services as well 
as TBT, SPS, IPR, GP and  other chapters.  
 
 
2.6.4.1 Asia -Pacific Economic Cooperation (APEC)  
 
Para 2.41, page 39  
 
APEC's trade efforts focus on its members meeting unilateral targets for liberalization and for 
better quality measures in a broad range of areas, from customs proced ures and standards to 
subsidies and contingency measures.31 Korea intends to meet APEC's voluntary target of free and 
open trade, including in services and investment by 2020. Korea's latest IAP (Individual Action 
Plan) on the assessment of achievements of  the Bogor Goals, which is a roadmap (updated every 
two years) containing APEC members' intended actions in 15 policy areas to achieve APEC's 
liberalization goals, was done in 2014.32 According to this IAP, Korea planned to make further 
improvements in the  following areas: tariffs; non -tariff measures; services; investment; standards 
and conformance; customs procedures; intellectual property rights; government procurement; and 
deregulation and regulatory review. The authorities indicated that an update for 2016 was 
submitted.  
 
Question : Please describe the measures to achieve APEC's liberalization goals planned by Korea 
in the above mentioned areas (tariffs; non -tariff measures; services; investment; standards and 
conformance; customs procedures; intellectu al property rights; government procurement; and 
deregulation and regulatory review)?  
 WT/TPR/M/346/Add.1  
 
- 209 - 
 
  ANSWER : 
kindly refer individual action plan submitted for the further information.  
 
 
2.6.4.2 Asia -Europe Meetings (ASEM)  
 
Para 2.42, page 40  
 
The Asia -Europe Meetings a re informal dialogues and cooperation programmes among 
53 European and Asia -Pacific partners33. Summits are held every two years with discussions on a 
range of economic, political, security and social issues. ASEM has been working on a Trade 
Facilitation A ction Plan (TFAP) for some years, aiming to reduce non -tariff barriers, increase 
transparency, and promote trade opportunities within the two regions. It specifies biannual goals 
in the priority areas of customs, standards and conformity assessment, public  procurement, 
quarantine and SPS, intellectual property, mobility of business people, and other trade activities, 
such as market access in distribution.  
 
Question:  Please describe the main goals of TFAP? What results have been already reached?  
 
ANSWER : 
O Goals  
As the first action among ten run by the Customs Working Group under ASEM,  
TFAP is designed to achieve trade facilitation through diversified approaches.  
 
O Results  
By conducting surveys on the level of trade facilitation, TFAP checks the current s tatus of each 
member economy and map out future direction.  
Under TFAP, there is an on -going effort to match up a developed economy with a developing one 
so that a developed member can share its experiences on economic development with a 
developing counter part more effectively.  
 
 
3.2.4 Tariff quotas  
3.2.4.1 Agricultural tariff quotas  
Para. 3.51, page 62  
 
Tariff quotas, and the import quota on rice (until end -2014), are administered or allocated by 
24 different organizations (as of 2016) including ministries , state trading entities (such as the 
Korea Agro -Fisheries and Food Trade Corporation (aT) commissioned by the Ministry of 
Agriculture, Food and Rural Affairs (MAFRA) (until March 2013, Ministry for Food, Agriculture, 
Forestry and Fisheries)), and various producer associations. In some cases, the administering 
agency is owned or controlled by domestic producers competing with the imported item. With the 
exception of the National Agricultural Cooperatives Federation, the National Forestry Cooperative 
Federat ion, and the Jeju Citrus Growers' Agricultural Cooperative, producers associations include 
members that process foodstuffs imported under tariff quotas. Credible import administration 
would require that directly interested parties are not directly involved  in controlling imports. The 
authorities indicated that in most cases the administering agency (e.g. Korea Feed Association, the 
Korea Corn Processing Industry Association, the Korea Paper Association, the Korea Dairy Industry 
Association, and the Korean S oybean Processors' Association) does not produce goods competing 
with the imported items but utilizes them for processing foodstuff or for breeding animals as 
domestic agricultural production cannot meet demand for ingredients or raw materials used for 
processed food.  
 
Question 1:  Could the Republic of Korea describe the procedures of import under tariff quotas 
allocated by (i) ministries, (ii) state trading entities, (iii) producers associations?  
 
ANSWER : 
As for state trading, the ministry and state -trading entities directly imports and sells the in -quota 
volume. Producers' associations distribute import license of in -quota volume to importers. For the 
detailed information, please refer to Korea's notifications on state -trading and TRQ administration.  
 WT/TPR/M/346/Add.1  
 
- 210 - 
 
  Question 2:  Does the Republic of Korea confirm that in some cases, the administering agency is 
owned or controlled by domestic producers competing with the imported item? Which are these 
cases? What agricultural products are subject to such practice? Could th e Republic of Korea 
provide the rationale for domestic producers competing with the imported item to administer or 
control in -quota import? How does the Republic of Korea ensure that such practice does not distort 
trade?  
 
ANSWER : 
Domestic producers adminis ter TRQs for some items such as breeding fowl, pigs and cattle, eggs, 
seedlings, etc. These tariff quotas are administered on a first -come, first -served basis without any 
qualification requirements and thus it does not distort trade.  
 
 
Question 3:  Could th e Republic of Korea describe the mechanism for determining further 
imported agricultural products' sale prices on domestic market?  
 
ANSWER : 
Importers decide sales prices of imported agricultural products at their discretion by reflecting 
market conditions.  
 
 
Question 4:  Could the Republic of Korea explain the reasons why administering agencies (Korea 
Feed Association, the Korea Corn Processing Industry Association, the Korea Paper Association, the 
Korea Dairy Industry Association, the Korean Soybean Process ors' Association or other producer 
associations) were not notified as STEs in accordance with the Understanding on the Interpretation 
of Article XVII of the GATT 1994?  
Para. 3.52, pages 62 -63. 
Mechanisms used for quota allocation (depending on the product)  include the auctioning of quotas, 
allocation to designated agency, real demand allocation, and a combination thereof. State -trading 
enterprises impose additional mark -ups on top of the in -quota tariff on various items (Section 
3.2.7). Most state -trading e nterprises are engaged directly in marketing imports by selling through 
wholesale markets or distributing directly to final users. State -trading enterprises, producer 
associations, processor associations and importing companies allocate quotas. The authori ties 
indicated that, as of 2016, only 1 item (rice) was state traded, 2 items (chestnuts and ginseng) 
were auctioned, 49 items (including maize, barley, and potatoes) were allocated on a real demand 
basis, and 11 other items (including ginger and onion) we re allocated through state -trading and 
other methods.  
 
ANSWER : 
Korea Feed Association, the Korea Corn Processing Industry Association, the Korea Paper 
Association, the Korea Dairy Industry Association, and the Korean Soybean Processors' Association 
are pri vate associations and are not related to state trading.  
 
 
 
Question 1:  Could the Republic of Korea describe the "combination" mechanism of quota 
allocation?  
 
ANSWER : 
It refers to a mechanism that is composed of more than two different methods  (e.g. state-trading 
+ auctioning).  
 
 
Question 2:  What agricultural products are subject to real demand allocation and state -trading 
and other methods allocation?  
 
ANSWER : 
Please refer to the Korea's MA:1 notifications for administration methods of each TRQ items.  
 
 WT/TPR/M/346/Add.1  
 
- 211 - 
 
  3.2.4.2 Autonomous tariff quotas  
Para. 3.53, page  63; Table A.3.6, pages 179 -181 
 
Korea grants concessional tariffs using autonomous tariff quotas, mainly for raw materials, inputs, 
semi-processed goods, components, parts, and machines (Table A3.6); this meas ure is aimed at 
helping stabilize prices through increased supply and/or increasing the competitiveness of the 
domestic agricultural and livestock industries, which are faced with increasing pressure from 
imports under RTA/FTA preferential treatment challe nging domestic products.43 In 2016, these 
TRQs covered 116 six -digit tariff items (including 4 additional sub -items under the same tariff line) 
(235 in 2012), of which 91 items were quota -free. In 2015, Korea  proceeded with: listing 
import -depending feedin g commodities (whey, manioc pellets, unhulled barley, and oats); 
establishing a tariff quota for beet -pulp, cotton seed oil cake for mushroom growing and young 
eels for aquaculture in order to mitigate high prices for imports of these items; and, increasin g the 
tariff quota for refined sugar from 40,000 MT to 90,000 MT to stabilize domestic retail prices. In 
2016, inter alia , the tariff quota for eels, animal/vegetable fats, and refined sugar was reduced, 
whereas for whey, fodder roots it was increased; tar iff quotas for cotton seeds were opened to all 
imports. In -quota tariff rates continued to range from zero to 10% (manioc chips for alcoholic 
beverages), whereas out -of-quota rates ranged from 1% to 40% (whey for feeding). Autonomous 
tariff quotas are revi sed annually.  
 
Question 1 : Table A3.6 refers to autonomous tariff quotas applied by the Republic of Korea in 
2016. Could the Republic of Korea explain why for unhulled barley, soya beans and some other 
agricultural products the in -quota tariff rates are h igher than general tariff rates? What was the 
economic rationale behind such practice?  
 
ANSWER : 
Flexible tariffs refer to a mechanism under which the government is approved by the National 
Assembly to raise or reduce tariff rates within a certain range in order to protect domestic 
industries and stabilize the economy. Korea's two major flexible tariffs are Autonomous Tariff and 
Adjustment Tariff. These tariffs are applied temporarily under a limited condition and timeframe in 
accordance with the Customs Act  of Korea.  
 
Adjustment Tariff is applied limitedly to increase tariff rates in times of concerns that domestic 
markets might be disturbed and industrial infrastructures might be collapsed. When related 
ministries request that items shall be covered by adju stment tariff in consideration of domestic 
supply and demand, prices and necessity, the Ministry of Strategy and Finance reviews the items 
and the necessity and renews the items to be covered by adjustment tariff on a yearly basis. Since 
it is a kind of te mporary flexible tariffs, adjustment tariff does not violate the WTO provisions.  
 
 
Question 2: Could the Republic of Korea provide a web -link concerning autonomous tariff quotas' 
volumes, in -quota tariff rates, duration, and administration procedures?  
 
ANSWER : 
The Customs Act stipulates that Autonomous Tariff is designed to reduce tariff rates temporarily 
and limitedly for the purpose of stabilizing the economy, strengthening industrial competitiveness 
and controling imbalance in tariff rates, and that Adj ustment Tariff is applied also temporarily and 
limitedly in times of concerns that domestic markets might be disturbed and industrial 
infrastructures might be collapsed.  
 
In general, those flexible tariffs are applied limitedly within a range of one year, depending on the 
domestic economic situation. Under the regime, the related Presidential Decree needs to be 
revised in order to designate the subject items and time schedule. Such revisions are notified 
through the official Gazette, and the following is th e web address of the Gazette: 
http://www.moi.go.kr . 
 
 
3.2.6 Import licensing, quotas, and prohibitions  
Para 3.55, page 63  
 
Import approval is governed by the Foreign Trade Act and 56 other laws.46 The Consolidated 
Public Notice, containing all export and i mport certification re quirements stipulated in the WT/TPR/M/346/Add.1  
 
- 212 - 
 
  56 separate laws, is updated by the Ministry of Trade, Industry and Energy (until 2013, Ministry of 
Knowledge Economy (Section 2.3)) when there is a legislative change. Import licensing procedures 
are main tained in order to protect national security, human, animal or plant life or health, and the 
environment and are not intended to restrict the quantity or value of imports. In 2016, these 
requirements covered some 3,000 six -digit HS tariff items (1,000 in 2 008), including petroleum, 
LPG (liquefied petroleum gas), agricultural fertilizers, crop seeds, animals, and animal products, 
nuclear materials, narcotics, foods and food additives, foreign publications, firearms and 
explosives.  
 
Question : Please specify the reasons of licensing requirements in mentioned areas (agricultural 
fertilizers, crop seeds, animals, and animal products). Please provide the lists of goods subject for 
automatic and non -automatic licensing.  
 
ANSWER : 
You can check relevant information at the consolidated public notice concerning all export and 
import certification requirements.  
 
 
3.2.6.3 Prohibitions  
 
Question : Please provide the list of prohibited goods.  
 
ANSWER : 
You can check relevant information at the consolidated public notice conc erning all export and 
import certification requirements.  
 
 
3.2.9.2 Sanitary and phytosanitary measures  
3.2.9.2.2 Quarantine regulations  
Para 3.97, page 75  
 
Korea's legislation on the marketing of genetically modified agricultural products (GMAPs), 
continue s to apply equally to domestic and imported GMAPs. Since 1 January 2008, Korea has 
implemented the Act on Transboundary Movement of Living Modified Organisms (LMO Act), the 
law implementing the Cartagena Protocol on Biosafety to the Convention on Biologica l Diversity. 
Imports of biotech grains, as well as genetically engineered animals, are regulated under the Food 
Sanitation Act and the LMO Act, which was last revised in December 2012 and became effective on 
12 December 2013, to, inter alia , provide a defi nition of stacked events116; its Enforcement 
Decree, the Enforcement Regulations, and the Consolidated Notice were revised in 2014.  
 
 
Para 3.101, page 76  
 
Imports of plants and plant products must have a phytosanitary certificate issued by the 
competent a uthority in the exporting country. Imports of soil, plants with soil, and certain plants 
or vegetable materials are banned. Imports of rice in the husk, chaff, and rice straw from all 
origins, except Japan and Chinese Taipei, are prohibited for pest reason s. Plants from most 
countries for planting are also prohibited or restricted. Following the disaster at the Fukushima 
nuclear plant, since March 2011, Korea has prohibited imports of 2 7 agricultural products from 
13 prefectures that were under distribution  restriction in Japan (Section 3.2.6.3). Food products 
with possible radioactive contamination from these prefectures have been subject to certificate of 
origin requirements and a test certificate issued by the Japanese Government that proves the food 
products in question are not contaminated. Following the discovery of continuing leakages of 
contaminated water in 2013, Korea implemented temporary measures including the extension of 
the import ban and testing requirements. Some of these measures led to a di spute settlement 
case in 2015 (Sections 2.5.1 and 3.2.9.2.3). In August 2012, Korea prohibited the importation of 
fresh potatoes from the states of Idaho, Oregon, and Washington (United States) due to the 
presence of zebra chip in the region.  
 
Question 1:  Please, provide information on realization of the Cartagena Protocol on Biosafety, 
especially regarding the GMO seeds?  
 WT/TPR/M/346/Add.1  
 
- 213 - 
 
  ANSWER :  
Act on trans -boundary movement of LMOs was legislated on 1 January 2008. The purpose of the 
Act is to prevent risks posed by l iving modified organisms to the public health and to promote 
international cooperation by prescribing the matters necessary for the implementation of the 
Cartagena Protocol on Biosafety and the matter necessary to ensure safety on the development, 
producti on, import, export, distribution, etc. of living modified organisms.  
 
The Act requires the implementation of a risk assessment procedure under Article 15 of the 
Cartagena Protocol on Biosafety prior to the approval of production or import of LMOs; and the 
same applies to LMO seeds. Also, this Act stipulates regulations under Article 8 through 10 of the 
Cartagena Protocol on Biosafety for the approval of importing LMO seeds, and it complies with 
Article 7, Application of the Advance Informed Agreement Proced ure. 
 
Question 2. Please, specify the document and scientific justification for the import ban of soil and 
plants with soil? Could you, please, provide further information on list of plants and list of 
countries subject for import restriction?  
 
ANSWER : 
Imports of soil or plants with soil from all origins are prohibited under the paragraph 1 of article 10 
of Plant Protection Act.  
However, matters that have not been used in the cultivation of plants and in which plants are not 
planted, and matters that are de emed having no risk of infected by pests based on the result of 
pest risk analysis' under relevant regulations are not prohibited from importation.  
 
Question 3. When were the products restricted due to zebra chip disease? What is the basis for 
such restric tions? Will be this measure further reviewed?  
 
ANSWER : 
Zebra Chip Disease(Candidatus Liberibacter solanacearum) is designated as a prohibited 
pathogenic organism in Korea, and imports of fresh stem and leaves and seedlings of carrots and 
celeries, underg round parts of fresh plants of potatoes, carrot seeds, etc. are prohibited. However, 
if a country makes an official request for import permits for abovementioned items to Korea, Korea 
will carry out pest risk analysis.  
 
 
Para 3.102, page 77  
 
Animal and ani mal products are subject to inspection and quarantine. Document and organoleptic 
inspection, and laboratory testing, if necessary, are undertaken to verify that no contagious animal 
disease is brought into Korea and that no hazard is posed to public health . Korea bans the import 
of animals and their products from countries affected by exotic animal diseases such as foot -and-
mouth disease and bovine spongiform encephalopathy (BSE). Upon request of the exporting 
country the import ban may be lifted depending on the outcome of import risk analysis. Imports 
from countries affected by HPAI (highly pathogenic avian influenza) are banned, but those of 
poultry meat that is heat -processed to kill the HPAI virus are allowed. According to the authorities, 
Korea applies  the same animal quarantine and livestock product health requirements to domestic 
production and imports. On 19 November 2015, Korea lifted the import ban on poultry and poultry 
meat products from the United States that had been imposed in December 2014 du e to the 
outbreak of HPAI. Cheese imports must meet Korea's pasteurization requirements. Under Article 
14 of the Imported Food Inspection Instruction, the declared minimum import weight of "food" and 
"food apparatus, containers and packages" for sanitary i nspection by MFDS is 100 kg.  
 
Question 1:  Could you, please, provide information on progress regarding safety assessment of 
imported animal products from Russia (beef and beef by -products, beef food products) in order to 
regulate market access issue?  
 
ANSWER: 
Upon the request for permission on the importation of beef from the Russian government, the 
Korean government commenced Risk Analysis procedures and the procedure is now at the 1st 
stage. While proceeding this procedures, MAFRA will cooperate with Rus sia when appropriate, by 
sharing the status of progress.  
 WT/TPR/M/346/Add.1  
 
- 214 - 
 
  Question 2:  Please, clarify the timeframe for the application consideration on attendance of 
Korean specialists the Russian Federation in order to get acquainted with the Russian control 
system whil e producing animal products?  
 
ANSWER : 
The Import Risk Analysis on livestock products is composed of 8 stages, and Russian beef is now 
at the 1st Stage while poultry at the 2nd Stage. On -site inspection is conducted at the 4th stage 
after reviewing consider able amount of information through the receipt of written responses to the 
questionnaire, thus it is impossible to know beforehand the schedule of on -site inspection at this 
point.  
The Korean import assessment process consists of import sanitation assessme nt by the MFDS and 
disease assessment (risk analysis) by the Ministry of Agriculture, Food and Rural Affairs (MAFRA). 
Check the brochure for those changes in detail on website.  
http://www.mfds.go.kr/index.do?x=0&searchkey=title:contents&searchDiv=&mid=699& searchwor
d=수입&cd=&y=0&pageNo=1&seq=22651&cmd=v . 
 
Question 3:  Please, could you clarify the procedure for withdrawal of the temporary restrictions 
on the imported products from the exporting country, which has obtained the OIE official status 
free from infe ctious animal diseases?  
 
ANSWER : 
Upon the receipt of an official request from the exporting country to permit import of livestock 
products, such as beef, etc., Korea decides whether to import the products based on the results of 
Import Risk Analysis conduc ted by MAFRA and import sanitation assessment on Livestock Products 
by MFDS.  
 
 
3.3.3 Export subsidies  
Para. 3.128, page 84.  
 
3.128. Korea does not have export subsidy commitments; during the review period, it continued to 
use export subsidies for certain farm products under the provi sions of Article 9.4 of the 
WTO Agreement on Agriculture for developing countries but no recent data on the amounts 
involved were available from the authorities.164 These subsidies, which were last notified to the 
WTO Committee  on Agricul ture in 2010, totalled ₩32.68 billion (2008) and covered fruit, flowers, 
vegetables, kimchi, ginseng, livestock, grain and processed food, and traditional liquor.165 The 
subsidies were used to reduce exporters' marketing costs, and are exempt from WTO redu ction  
commitments. At the time of the previous Review, the authorities indicated that data on export 
subsidies from 2008 onwards were to be notified in the course of 2012, though no notification had 
been submitted as of June 2016; they now intend to notif y these subsidies in the course of 2016. 
Korea does not consider that corporate income tax relief to industries located in FTZs is subject to 
WTO notification (Section 3.4.3).  
 
Question:  When the Republic of Korea plans to submit its export subsidies noti fications for the 
calendar years 2009 -2015? Could the Republic of Korea provide the reasons for such delay?  
 
ANSWER : 
Korea is currently on the phase of finalizing and confirming its export subsidy notifications and the 
notifications will be submitted soon.  
 
 
4.2.2.2 Domestic support  
Para. 4.32, page 119  
 
The last notification made by Korea to the WTO regarding its domestic support to agriculture 
covers the 2011 calendar year (Section 3.4.2, Table A3.7).21 Accord ing to this notification, 
trade -distorting sup port (Amber Box) occupied about 12% of total domestic support in 2011, and 
market price support measures were used less frequently and applied only to barley in 2011.  
 
Question:  When the Republic of Korea plans to submit its domestic support notifications  for the 
calendar years 2011 -2015? Could the Republic of Korea provide the reasons for such delay?  
 WT/TPR/M/346/Add.1  
 
- 215 - 
 
  ANSWER : 
Korea's domestic support notification in the year 2011 is included in G/AG/N/KOR/53. Currently 
Korea is on the phase of collecting domestic support data for the years 2012 -2015.  WT/TPR/M/346/Add.1  
 
- 216 - 
 
  COMME NTS FROM TURKEY  
 
 
3.2.9.2.2 Quarantine regulations  
 
Page 76 -77 para. 3.101  
 
Imports of plants and plant products must have a phytosanitary certificate issued by the 
competent authority in the exporting country. Imports o f soil, plants with soil, and certain plants 
or vegetable materials are banned. Imports of rice in the husk, chaff, and rice straw from all 
origins, except Japan and Chinese Taipei, are prohibited for pest reasons. Plants from most 
countries for planting a re also prohibited or restricted. Following the disaster at the Fukushima 
nuclear plant, since March 2011, Korea has prohibited imports of 2 7 agricultural products from 
13 prefectures that were under distribution restriction in Japan (Section 3.2.6.3).118 Food 
products with possible radioactive contamination from these prefectures have been subject to 
certificate of origin requirements and a test certificate issued by the Japanese Government that 
proves the food products in question are not contaminated. Fo llowing the discovery of continuing 
leakages of contaminated water in 2013, Korea implemented temporary measures including the 
extension of the import ban and testing requirements. Some of these measures led to a dispute 
settlement case in 2015 (Sections 2 .5.1 and 3.2.9.2.3). In August 2012, Korea prohibited the 
importation of fresh potatoes from the states of Idaho, Oregon, and Washington (United States) 
due to the presence of zebra chip in the region.  
 
 
Comment  
 
It is no doubt that Sanitary and Phytosanit ary (SPS) measures, by their very nature, may result in 
restrictions on trade. However, Turkey strongly believes that SPS measures should not be used 
as a protectionist instrument to international trade.  
Turkey would like to underline that  SPS measures sho uld be applied for no other purposes than 
that of ensuring food safety and animal and plant health. Furthermore, when the application of the 
measures do not meet the WTO requirements, it could result in unnecessary trade disputes which 
is against the comme rcial interests of all parties. To this end, Turkey would kindly like to remind 
that SPS measures should be based on scientifically valid data and risk assessment under SPS 
Agreement's rules.  WT/TPR/M/346/Add.1  
 
- 217 - 
 
  QUESTIONS FROM EL SALVADOR  
 
 
WT/TPR/G/346 Informe de Gobierno  
Párrafo 1.2:  
1.2. Desde febrero de 2013, fecha de establecimiento del nuevo Gobierno, la economía creativa ha 
sido el objetivo de política fundamental del Gobierno coreano. Por economía creativa se entiende 
una economía que genere, gracias a la convergencia  de la creatividad de la población con la 
ciencia, la tecnología y las tecnologías de la información y la comunicación, más valor añadido, 
más empleo y nuevos motores de crecimiento. Para facilitar el desarrollo de la economía creativa, 
se han desarrollado  plataformas electrónicas y no electrónicas. En 2013 se puso en marcha la 
Ciudad de la Economía Creativa (https://www.creativekorea.or.kr/), una plataforma electrónica 
destinada a apoyar la comercialización de ideas creativas. Además, desde julio de 2015 s e han 
creado en las ciudades metropolitanas y las provincias de todo el país un total de 17 centros de 
innovación para la economía creativa a fin de facilitar el crecimiento de las empresas de capital 
riesgo y de las pequeñas y medianas empresas (pymes).  
 
P: ¿Qué papel juega la propiedad intelectual en el desarrollo de la economía creativa?  
 
ANSWER :  
Non-paper on the Economic Effects of Reinforcing Protection  
of Intellectual Property Rights in Korea  
 
Ⅰ. Background  
Until the mid -2000s, Korea had maintained an insufficient level of protection and enforcement of intellectual 
property rights (IPR). This had raised serious concerns regarding infringements of IPR, notably illegal 
reproduction of copyrighted works, trademark counterfeiting, and illegal circulation of pirated goods.  
However, Korea has taken significant steps to improve its IPR protection regime over the past years by 
concluding Korea -U.S. FTA in 2007 (in force since 2012) and Korea -EU FTA in 2 009 (in force since 2011), as 
well as acceding to a number of multilateral agreements related to IPR.  
The meaningful efforts and progress made by the Korean government in the IPR protection regime have led to 
the enhanced protection and enforcement of IPR  and the reduction of counterfeiting and piracy in the Korean 
market. This consequently contributed to the increase in its capability to generate intellectual property and the 
share of intellectual property -intensive industries (IP -intensive industries) in  the economy.  
In the annual Special 301 Report  prepared by the Office of the United States Trade Representative (USTR), 
Korea was elevated from the Priority Watch List to the Watch List in 2005 and has been removed from the 
Watch List since 2009.  
 
Table 1 : Designations of Korea in Special 301 Report  
Year 2003 -04 2005 -08 2009 -15 
Designation  Priority Watch List  Watch List  N/A 
 
Ⅱ. Major Economic Effects of Reinforcing Protection of IPR  
 
1. Enhancement of capability to generate intellectual property  
In 2014 , Korea marked the 5th largest region worldwide in terms of the number of patent applications. The 
number of patent filings originating from Korea has increased by 9 percent, which achieved the world's second -
highest growth rate as of 2013.  
Table 2: World wide patent filings by bloc of origin (Residence of applicants)  
 1st 2nd 3rd 4th 5th 
Bloc of region  China  Japan  U.S. EPC states* Korea  
Filings  736,710  393,547  387,806  293,088  216,606  
Source:  IP5 Statistics Report 2014     * 38 contracting states to the European Patent Convention  
 
In addition, the total number of industrial property registrations in Korea has continually increased since 2009. 
In 2014, the number of industrial property registrations amounted to about 290,000, which demonstrated WT/TPR/M/346/Add.1  
 
- 218 - 
 
  98% increas e compared to 2009.  
Figure 1: Registrations of industrial property in Korea  
 
  
Source:  Annual Report  (Korean Intellectual Property Office)  
According to a survey on content industry in Korea, sales of Korea's content industry amounted to ₩95 trillion 
as of 2014, representing 29.5% increase compared to 2010. That same year, its exports reached 
US$5.3  billion, increased by 65.2% compared to 2010.  
 
Table 3: Sales and exports of content industry in Korea  
 2010  2011  2012  2013  2014  
Sales  
(in ₩ billion)  73,322  82,968  87,272  91,210  94,947  
Exports  
(in US$ million)  3,189  4,302  4,612  4,923  5,274  
Source:  Content Industry Statistics 2015  (Korea Creative Content Agency)  
The copyright infringement rate has continually decreased since 2009, demonstratin g that the environment for 
copyright protection is improving. In 2013, the copyright infringement rate in the market for copyrighted works 
dropped by 5.6 percentage points compared to 2009 due to rigorous enforcement of copyright protection 
policies and re inforced crackdown on illegal reproduction of copyrighted works by the Korean government.  
Table 4: Infringement rates of copyrighted works in Korea  
 2009  2010  2011  2012  2013  
Infringement rate of 
copyrighted works 
(Infringements in the 
market of copyright ed 
works / market size of 
copyrighted work)  21.6%  19.2%  18.8%  16.2%  16.0%  
Rate of illegal 
reproduction of 
S/W Korea  41% 40% 40% N/A 38% 
Asia 59% 60% 60% N/A 62% 
Source:  BSA Global Software Survey 2014, 2014 Annual Report on Intellectual Protection and Enforcement in 
Korea (Korea Federation of Copyright Organizations) . 
 
2. Growth of IP -intensive industries  
IP-intensive industries refer to those requiring intensive use (generation and application) of intellectual 
property, such as patents, utility models,  trademarks, industrial designs, and copyright. Intellectual property 
intensity is defined as the number of IPR divided by the number of employees in an industry. Accordingly, 
industries which have a relatively large number of valuable IPR but a small numb er of employees would be 
identified as intellectual property -intensive. Examples of such industries include, but not limited to, book 
publication, wired and wireless communication, terrestrial and radio broadcasting, software development, and 
professional design.  
Due to reinforcement of IPR protection, IP -intensive industries have become one of the major growth engines 
of the Korean economy by generating more employment and value added than other industries.  
According to a research conducted by the Korea Institute of Intellectual Property (KIIP) in 2014, IP -intensive WT/TPR/M/346/Add.1  
 
- 219 - 
 
  industries accounted for only 8.2 percent of the total industries in Korea in terms of the number of enterprises 
as of 2010; however, they captured 19.6% of total employment and 37.2% of total  value added. In addition, 
the average salary of IP -intensive industries was 7.9% higher than that of whole industry in Korea in the same 
year. 
 
Table 5: Economic contributions of IP -intensive industries  
 IP-intensive industries  Share  
Number of enterprise s 324,329  8.2%  
Employment  2,595,690  19.6%  
Average salary  3,416,000 KRW  107.9%  
Value added  366 trillion KRW  37.2%  
Source:  Studies on Intellectual Property Prospects, KIIP (2014)  
 
 
Párrafo 1.4:  
1.4. El Gobierno de Corea es consciente de que la reforma de la reglamentación constituye una 
forma de estimular la inversión sin incurrir en gastos. Por este motivo, y con el fin de crear un 
clima propicio a la inversión, ha otorgado prioridad a la flexibilización en materia reglamentaria, 
introduciendo el métod o de "compensación de costos", la evaluación de los efectos de la 
reglamentación y la reforma reglamentaria Sinmungo.1  
 
P: ¿Podrían explicar específicamente de qué manera el método de "compensación de costos" y la 
reforma reglamentaria Sinmungo han contrib uido a la flexibilización en materia reglamentaria?  
 
ANSWER :  
CICO was officially enforced in July 2016. CICO has effectively linked regulations that are to be 
newly introduced or reinforced with existing regulations that are to be relaxed or abolished. B y 
doing so, the government has continuously pursued the systematic efforts of regulatory reform, 
such as seeking less costly alternatives during the introduction of new regulations and encouraging 
voluntary identification and revision of problematic existi ng regulations  
 
Regulatory Reform Sinmungo plays a vital role in improving or easing the regulatory environment 
to strive to fit to the reality by making citizens file a petition to address their difficulties caused by 
existing regulations that they face i n everyday life or a corporate world. To serve such purpose, 
the Regulatory Reform Sinmugo has adopted 3 -step procedures (Petition → Response by the 
competent administrative agency → Review of such response by the Prime Minister's Office → 
Issuance of reco mmendation by the Regulatory Reform Committee) to conduct an in -depth review 
of each petitioned agenda. First, the competent administrative agency reviews the petition and 
provides a response. Then, the unaccepted petitions are sent to the Prime Minister's  Office for the 
second review jointly with civilian experts to check to see whether the response is reasonable in 
consideration of the petition. If some responses are found to be unreasonable, the concerned 
administrative agency is required by the Prime Mi nister's Office to conduct a second review of the 
petition. If the second response by the agency is still found to be unreasonable, the petition is 
brought to the Regulatory Reform Committee to issue a recommendation for the agency to make a 
necessary amen dment accordingly, if needed.  
 
 
Párrafo 3.32:  
3.32. Corea reconoce que los resultados de su sector de servicios van a la zaga de los de las 
economías desarrolladas, en buena medida debido a que las políticas se centran en el sector 
manufacturero y a la amp lia gama de reglamentos existentes. Por este motivo, el Gobierno de 
Corea está preparando la promulgación de un nuevo marco legislativo para el desarrollo del sector 
de los servicios, y en julio de 2016 dio a conocer el Plan de Desarrollo Económico de los Servicios, 
concebido como una medida global de promoción de este sector.  WT/TPR/M/346/Add.1  
 
- 220 - 
 
  P: ¿En qué consiste el plan de desarrollo económico de los servicios y cómo se prevé que influirá 
en la reglamentación vigente aplicable a los servicios y a los compromisos que Corea del Sur tiene 
a nivel internacional?  
 
ANSWER :  
□ Extend investment on service sector, and establish ｢Development Strategy for Service Sector 
Economy ｣ on purpose of revitalizing economy and job creation in response to intensifying 
competition (7.5days)  
ㅇ (Develop service and manufacturing combined business model)  
Relieve discrimination between service and manufacturing sector, and extend increase in high 
quality value of manufacturing and inter -industrial conversion under the terms of administration 
provisi on 
ㅇ (Innovate infrastructure for service economy)  
Extend investment on public and private oriented research institutes, and increase in expense of 
human resources and training program abroad for service sector  
ㅇ (Intensify the growth on seven business categ ories)  
Propose effective measurement for 7 selected businesses, including medical, tourism, contents, 
education, software, and logistics with consideration of global shift and climate change.  
 
 
Párrafo 3.7:  
3.7. El Gobierno de Corea ha adoptado varias me didas encaminadas a mejorar la eficiencia en las 
instituciones públicas. Se han introducido reformas estructurales en las instituciones públicas, 
entre las que figuran el ajuste para evitar la duplicación de funciones en las instituciones, la 
reducción de las actividades no esenciales y la mejora de la eficacia de la gestión. En mayo de 
2015 se llevó a cabo una reforma del régimen de pensiones de los empleados públicos, seguida de 
una reducción de la deuda y de una reestructuración funcional del sector públ ico. Además, las 
instituciones públicas han adoptado un sistema de salarios anuales basados en el rendimiento22 y 
de topes salariales.23 Gracias a estos esfuerzos, la deuda pública total ha disminuido (del 220% 
en 2012 al 183% en 2015), lo que ha permitido  mejorar considerablemente la solidez financiera de 
las instituciones públicas. Por otra parte, el ahorro financiero derivado del sistema de topes 
salariales se utilizará para apoyar la creación de más de 8.000 puestos de trabajo en 2016 y 2017.  
 
P: ¿Puede  explicar en qué consiste el sistema de salarios anuales basados en rendimientos y topes 
salariales?  
 
ANSWER : 
Addressing the dual structure in labor market needs various policies and government -wide 
cooperation. Based on the Tripartite Agreement, relevant ministries jointly announced 
measures to promote employment through addressing labor market dualism in March 2016. 
The government is carrying out labor reform to fos ter competency - and performance -based fair 
labor market so that regular workers increase, a ccordingly, improving employment structure.  
 
 
Párrafo 4.16:  
4.16. El Gobierno de Corea ha intensificado recientemente sus esfuerzos para mejorar el entorno 
de las inversiones extranjeras, potenciando la comunicación con los inversores extranjeros y 
reduc iendo el número de reglamentos aplicables, lo que ha producido unos resultados notables en 
términos de atracción de IED.  
 
P: Una de las estrategias de atracción de inversiones de Corea del Sur es la reducción del número 
de reglamentos aplicables. ¿Pueden e numerar las leyes y reglamentos que se han derogado o 
modificado en este período para reducir la reglamentación que mencionan?  
 
ANSWER : 
The Korean government operates the FDI restrictions in some business categories to protect 
National Security, Public Ord er and so on, based on the rule of WTO GATS. The paragraph 4.16. 
means that the Korean government has reviewed all of the domestic laws related to business 
environment. For example, a regulation that previously limit the number of foreign workers in a 
foreign-invested companies to less than 20 percent of the total work forces was removed; and the 
aviation law that currently limited the foreign ownership of an aviation maintenance, repair and WT/TPR/M/346/Add.1  
 
- 221 - 
 
  operation firms to less than 50 percent will allow 100 percent own ership from March, 2017; and so 
on. 
 
 
WT/TPR/S/346 Informe de la Secretaría  
 
Cuadro 2.1 Principales textos legislativos 
relacionados con el comercio y la 
inversión modificados desde 2012 
Asunto  Texto legislativo  
Procedimientos aduaneros  Ley de Aduanas,  modificada por última vez en 2015  
Ley de casos especiales de devolución de derechos de aduana 
y otros impuestos aplicados a las materias primas para la 
exportación, modificada por última vez en 2015  
Ley de casos especiales de la Ley de Aduanas para la 
aplicación de los Acuerdos de Libre Comercio, modificada por 
última vez en 2015  
Procedimientos generales de importación y 
exportación  Ley de Comercio Exterior, modificada por última vez en 2014  
Normas y prescripciones técnicas  Ley Marco de Normas Naci onales, modificada por última vez 
en 2016  
Prescripciones sanitarias y fitosanitarias  Ley de Higiene Alimentaria, modificada por última vez en 2015  
Ley de Protección Fitosanitaria, modificada por última vez en 
2015  
Ley de Prevención de las Epizootias C ontagiosas, modificada 
por última vez en 2015  
Contratación pública  Ley de Contratación Pública, modificada por última vez en 
2016  
Zonas  Ley de Designación y Administración de Zonas de Libre 
Comercio, modificada por última vez en 2016  
 
P: ¿En qué co nsisten las reformas realizadas a la Ley de Contratación Pública realizadas en el 
2016?  
 
ANSWER :  
Public Procurement Act that PPS manages consists of the Act on Contracts to Which the State is a 
Party and the Government Procurement Service Act. The two act s have been amended in 2016 as 
follows:  
 
Act on Contracts to Which the State is a Party  
 Article 27, Paragraph 1 (newly inserted - additional rationales for inappropriate business 
entity designation)  
 Paragraph 4 (newly inserted – introduction on exclusion  period on restriction system on the 
qualification for participating in tendering process)  
 Paragraph 5 (newly inserted - disclosure of status of inappropriate business entity 
designation to public)  
 Paragraph 29 (amended and newly inserted - formation of St ate Contract Disputes 
Conciliation Committee and qualification and terms of its members) - Amended on Mar. 2, 
2016  
 
The Government Procurement Service Act  
 Article 3 -5 (Designation of procurement goods regarding people's safety, life saving, medical 
sanitation as "safety management goods", inspection implementation for the goods)  
 Article 5 -3 (Rationale for support and proxy work such as purchase of demanded goods for 
software projects or construction contracts)  
 Article 9 -2 (Scope of excellent procurement p roducts - from SMEs or middle -standing firms)  
 Article 11 -2(Rationale to pay with credit card) - Amended on Jan. 27, 2016  
 
2.5.2 Legislación relacionada con el comercio  
2.25. Los principales textos legislativos en materia de comercio internacional siguen s iendo la Ley 
de Comercio Exterior y la Ley de Aduanas. Desde el último examen, realizado en 2012, se han 
modificado los siguientes textos legislativos (cuadro 2.1).  
 WT/TPR/M/346/Add.1  
 
- 222 - 
 
  Cuadro 2.1 Principales textos legislativos 
relacionados con el comercio y la inversión 
modificados desde 2012 Asunto  Texto legislativo  
Procedimientos aduaneros  Ley de Aduanas, modificada por última vez en 2015  
Ley de casos especiales de devolución de derechos de 
aduana y otros impuestos aplicados a las materias 
primas para la exportación,  modificada por última vez 
en 2015  
Ley de casos especiales de la Ley de Aduanas para la 
aplicación de los Acuerdos de Libre Comercio, 
modificada por última vez en 2015  
Procedimientos generales de importación y 
exportación  Ley de Comercio Exterior, modi ficada por última vez 
en 2014  
Normas y prescripciones técnicas  Ley Marco de Normas Nacionales, modificada por 
última vez en 2016  
Prescripciones sanitarias y fitosanitarias  Ley de Higiene Alimentaria, modificada por última vez 
en 2015  
Ley de Protecci ón Fitosanitaria, modificada por última 
vez en 2015  
Ley de Prevención de las Epizootias Contagiosas, 
modificada por última vez en 2015  
Contratación pública  Ley de Contratación Pública, modificada por última 
vez en 2016  
Zonas  Ley de Designación y Adm inistración de Zonas de 
Libre Comercio, modificada por última vez en 2016  
e incentivos  Ley Marco de Impuestos Nacionales, modificada por 
última vez en 2015  
Ley de Control del Régimen Fiscal de Excepción, 
modificada por última vez en 2015  
Ley del Impue sto sobre la Renta, modificada por 
última vez en 2015  
Ley del Impuesto de Sociedades, modificada por 
última vez en 2015  
Ley del Impuesto de Sucesión y del Impuesto sobre 
Donaciones, modificada por última vez en 2015  
Ley del Impuesto sobre el Valor Añadi do, modificada 
por última vez en 2015  
Ley del Impuesto sobre el Consumo, modificada por 
última vez en 2015  
Ley del Impuesto sobre el Tráfico, la Energía y el 
Medio Ambiente, modificada por última vez en 2015  
Ley del Impuesto Especial de Desarrollo Rural , 
modificada por última vez en 2015  
Ley del Impuesto de Educación, modificada por última 
vez en 2015  
Ley del Impuesto sobre Operaciones con Valores, 
modificada por última vez en 2015  
Política de competencia/controles de precios  Ley de Regulación de Mo nopolios y del Comercio Leal, 
modificada por última vez en 2015  
Empresas de propiedad estatal, privatización y 
comercio de Estado  Ley de Mejora de la Estructura Administrativa y de 
Privatización de las Empresas Públicas, modificada por 
última vez en 201 3  
Protección de los derechos de propiedad intelectual  Ley de Modelos de Utilidad, modificada por última vez 
en 2015  
Ley de Patentes, modificada por última vez en 2015  
Ley de Marcas de Fábrica o de Comercio, modificada 
por última vez en 2016  
Ley del D erecho de Autor, mo dificada por última vez 
en 2016  
Agricultura  Ley Marco de Agricultura y Pesca, Comunidades 
Rurales e Industria Alimentaria, mo dificada por última 
vez en 2015  
Energía y recursos naturales  Ley Básica de la Energía, modificada por últi ma vez 
en 2014  
Servicios financieros  Ley de Transacciones Financieras Electrónicas, 
modificada por última vez en 2016  
Ley de Uso y Protección de la Información Crediticia, 
modificada por última vez en 2015  
Telecomunicaciones  Ley Marco de Telecomunicacio nes, mo dificada por 
última vez en 2015  WT/TPR/M/346/Add.1  
 
- 223 - 
 
  Cuadro 2.1 Principales textos legislativos 
relacionados con el comercio y la inversión 
modificados desde 2012 Asunto  Texto legislativo  
Transporte  Ley de Transporte Marítimo, mo dificada por última 
vez en 2016  
Inversión extranjera  Ley de Fomento de las Inversiones Extranjeras, 
modificada por última vez en 2016  
 
P: ¿Cuáles es el marco legal que reg ula la Protección de los derechos de propiedad intelectual en la 
República de Corea?  
 
ANSWER :  
[Administrative Measures against Copyright Infringement]  
The Korea Copyright Commission may issue correction recommendations to online service 
providers (OSPs) t hat distribute illegal reproductions pursuant to Article 133 (3) of the Copyright 
Act. In 2009, the KCC started to issue correction recommendations for the first time in accordance 
with the integrated Copyright Act, issuing 35,345 recommendation s in the ye ar. It issued 
85,085  recommendations in 2010, followed by 107,724 and 250,039 in2011 and 2012, 
respectively.  
 
<Numbers of Correction Recommendations Issued by the KCC by Year>  
Classification  Annual Results  No. of Correction Recommendations  
Warning  Delet ion/Suspension 
of Transmission  Account 
Suspension  
2009  Total 35,345  13,466  21,840  39 
Webhard  33,644  12,612  20,995  37 
P2P 773 579 194 - 
Portals, 
etc. 928 275 651 2 
2010 Total 85,085  42,794  42,200  91 
Webhard  82,413  41,458  40,864  91 
P2P 2,140  1,070 1,070  - 
Portals, 
etc. 532 266 266 - 
2011 Total 107,724  54,504  53,106  114 
Webhard  101,359  51,282  49,963  114 
P2P 1,041  522 519 - 
Portals, 
etc.  5,324  2,700  2,624  - 
2012 Total 250,039  130,304  119,560  175 
Webhard  135,961  72,516  63,270  175 
P2P 344 172 172 - 
Portals, 
etc.  113,734  57,616  56,118  - 
 
Furthermore, the KCC operates an online piracy reporting website (www.copy112.or.kr) to receive 
complaints on online piracy lodged by right holders or the reports by the general public and issue 
correction recommendations based on the complaints. The number of complaints reported has 
been on the rise each year. In 2011, the KCC launched the "Citizens'Open Monitoring System"on a 
pilot basis through which net -users can report websites distributing illeg al reproductions, which 
have become increasingly diversified and complex. In 2012, the Citizens'Open Monitoring System 
was fully operational.  
 
 WT/TPR/M/346/Add.1  
 
- 224 - 
 
  [Civil & Criminal Measures against Copyright Infringement]  
Persons whose copyrights have been infringed may see k civil or criminal remedies. With respect to 
civil remedies, the copyright holder may file a lawsuit with the court against the alleged infringer 
to demand prevention of infringement, suspension of infringement, restitution of unjust 
enrichment, and compe nsation for damages, etc. The time limit for claiming compensation is 
10 years from the date of the illegal activity or three years from the date when the damage and 
the infringer are identified.  
In the case of criminal remedies, copyright infringement is  an offense subject to prosecution upon 
complaint by the copyright owner within six months from the date when the alleged infringer is 
identified. Therefore, the investigation authorities may not prosecute the suspect upon a complaint 
filed by a third part y whose copyright has not been infringed. Yet, exceptions apply to cases where 
the copyrights are infringed for profit -making purposes or repeatedly. If a person obtains with bad 
intent a reproduced program which has been made by infringing upon others' co pyright and uses it 
in the course of performing his or her duty, such offense shall be categorized as a "no -prosecution -
contrary to victim's intent" offense.  
Any person who infringes upon economic rights of an author or a performer, etc. may be subject 
to imprisonment for not more than five years or a fine of not more than ₩50 million or both. Any 
person who infringes upon moral rights may be subject to impri sonment for not more than 
three  years  or a fine of not more than ₩30 million or both.  
 
 
Párrafo 3.1 91:  
3.191. Desde 2008, la KFTC ha sido la única autoridad competente en materia de política de 
protección de los consumidores. Tiene a su cargo la formulación del plan de política del consumidor 
y la supervisión del Organismo del Consumidor de Corea. Su c ompetencia abarca, entre otras, la 
Ley Marco de los Consumidores, la Ley de Responsabilidad por los Productos, la Ley de 
Cooperativas de Consumidores, la Ley de Comercio Electrónico y la Ley de Regulación de los 
Términos y Condiciones. Durante el período o bjeto de examen, aprobó en 2014 las medidas de 
cumplimiento de la Ley de Comercio Electrónico para las empresas dedicadas al comercio 
electrónico móvil. El objetivo de estas medidas es que se facilite a los consumidores del sector del 
comercio electrónico móvil, en rápido crecimiento, toda la información que necesitan para tomar 
sus decisiones de compra, y que las empresas puedan cumplir la Ley con facilidad. Además, a fin 
de proteger la información personal en línea, la KFTC revisó el contrato de adhesión modelo que se 
emplea en el comercio electrónico.  
 
P: ¿Cuál es la referencia que han utilizado para elaborar el contrato de adhesión modelo que se 
emplea para proteger la información personal en línea?  
 
ANSWER : 
Standard adhesion contract has been revised re ferencing the personal information related contents 
stipulated in the Protection of personal information Act and Information communications network 
Act which are being enforced in Korea.  
 
 
3.4.6 Derechos de propiedad intelectual  
3.194. La posición de Corea  sigue siendo que una protección coherente de los derechos de 
propiedad intelectual (DPI) es un elemento importante para mejorar la competitividad del país y 
de sus empresas en su economía. Según las autoridades, la "economía creativa" de Corea, que 
forma parte del programa nacional de estímulo del crecimiento económico desde 2013, está 
estrechamente relacionada con los derechos de propiedad intelectual.246 En el período objeto de 
examen se introdujeron modificaciones legislativas en la Ley de Patentes, la Ley de Modelos de 
Utilidad, la Ley de Marcas de Fábrica o de Comercio, la Ley de Protección de Dibujos y Modelos 
Industriales y la Ley de Prevención de la Competencia Desleal y Protección del Secreto, con objeto 
de facilitar los trámites para los solicitan tes y mejorar el sistema de DPI (sección 3.4.6.1). Cuando 
se realizó el anterior examen de las políticas comerciales, la Ley Marco de Propiedad Intelectual, 
que entró en vigor el 20 de julio de 2011, pasó a constituir la base para el establecimiento de 
leyes, sistemas y políticas que rigen la creación, protección y utilización de DPI, con inclusión de 
patentes, marcas de fábrica o de comercio y derecho de autor. De conformidad con las 
disposiciones de la Ley Marco de Propiedad Intelectual, el 28 de julio de  2011 se estableció el 
Consejo Presidencial de Propiedad Intelectual (PCIP) para examinar y corregir las principales 
políticas del Gobierno en materia de propiedad intelectual, así como evaluar y vigilar los progresos 
en esta esfera. El PCIP formuló, y est á aplicando, el Primer Plan Estratégico de la Propied ad WT/TPR/M/346/Add.1  
 
- 225 - 
 
  Intelectual Nacional (2012 -16). Todos los años se elabora un plan de acción para cumplir sus 
objetivos de política; en este sentido, el PCIP empezó a aplicar un sistema de promoción de la 
creación, pr otección y utilización de la propiedad intelectual, cuestiones que siguen preocupando al 
país. 
 
P: ¿Cómo funciona el Consejo Presidencial de Propiedad Intelectual (PCIP) para examinar y 
corregir las principales políticas del Gobierno en materia de propieda d intelectual, así como evaluar 
y vigilar los progresos en esta esfera?  
Párrafo 3.229:  
 
ANSWER : 
The PCIP monitors and assesses the achievements of every ministries' IP policies based on the 
yearly IP plan. The PCIP also tries to make the Nation's budget a llocation based on the 
performance.  
 
 
3.229. En el período objeto de examen, tanto la KIPO como el MCST, en colaboración con el 
Servicio de Aduanas de Corea, las administraciones locales y organizaciones no gubernamentales 
(ONG), promovieron programas educ ativos y de concienciación del público sobre la importancia del 
derecho de autor; instaron a los consumidores a comprar productos auténticos; y aplicaron una 
amplia gama de medidas de política para alertar a los consumidores con respecto a las cuestiones 
de seguridad relacionadas con las falsificaciones y la filtración de secretos comerciales, y para 
promover una cultura respetuosa de los DPI.286 Las iniciativas de concienciación pública se han 
llevado a cabo en forma de campañas, por ejemplo, en diversos m edios de comunicación (por 
ejemplo, anuncios televisados, redes sociales), portales de Internet y concursos participativos. En 
2014 se puso en marcha la campaña "Counterfeits OUT, Originals IN" (NO a las falsificaciones, SÍ 
a los originales). En 2016, el M CST introdujo una marca especializada denominada "Ban -d-C", 
destinada a concienciar al público acerca de la protección del derecho de autor; la marca será 
explotada por diversos medios.  
 
P: ¿podría Corea del Sur explicar en qué consistió la campaña de prot ección de derechos de autor 
denominada: "Counterfeits OUT, Originals IN"?  
 
ANSWER : 
Korean Intellectual Property Office (KIPO) carries out various promotional activities with 
consumers and related organizations to raise awareness of the importance of eradic ating the 
distribution and consumption of counterfeit goods. These activities included national public 
campaigns that urged consumers to buy genuine goods. These public campaigns were 
spearheaded under the slogan "Counterfeits OUT, Originals IN". KIPO used  various on and offline 
avenues such as televised advertisements, printed materials, social media, radio, advertisements 
on public transportation and movie theatres, and so on. There was also a user -created content 
(UCC) competition which consisted of a 50 -second video contest, as well as a street marketing 
campaigns.  
 
 
Párrafo 4.127:  
4.127. Corea presentó su oferta condicional revisada en materia de servicios en 200551, y no ha 
presentado nuevas ofertas desde entonces. Sus compromisos en el marco del AGCS  abarcan 98 de 
los 155 sectores.52 Ha consignado una limitación a la participación extranjera en el capital del 
49% respecto de la presencia comercial para los servicios de telecomunicaciones básicas basados 
en la utilización de instalaciones. Asimismo, se  han consignado limitaciones específicas al trato 
nacional y compromisos adicionales en relación con los servicios de contabilidad (auditoría y 
teneduría de libros), los servicios de asesoramiento tributario y los servicios de arquitectura. Los 
profesional es extranjeros del derecho y la arquitectura pueden prestar una gama limitada de 
servicios si se aprueban sus títulos de aptitud. El acceso a los demás servicios está, en general, 
liberalizado, excepto en el caso de determinados sectores en los que se mant ienen medidas 
reglamentarias (incluidos los servicios de enseñanza) y otros que están sujetos a umbrales de 
participación extranjera en el capital (entre ellos, los servicios de alquiler de aeronaves y de 
información crediticia) (sección 2.7).  
 
P: ¿En cuál es servicios profesionales, la República de Corea no exige presencia en su territorio?  
 WT/TPR/M/346/Add.1  
 
- 226 - 
 
  ANSWER : 
According to Korea's services concessions schedule, which has been in effect since being submitted 
to the WTO in April 1994, the Professional Services which do not require commercial presence are 
Engineering Services (CPC 8672), Integrated Engineering Services (CPC 8673) and Urban Planning 
and Landscape Architectural Services (CPC 8674).  
 
__________