WT/TPR/M/346  
9 December  2016 
(16-6726) Page: 1/51 
Trade Policy Review Body  
11 and 13 October 2016   
 
  TRADE POLICY REVIEW  
REPUBLIC OF KOREA 
MINUTES  OF THE MEETING  
Chairperson: Ms Irene Young (Hong Kong, China)  
CONTENTS  
 
1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  ................................ .......................  2 
2  OPENING STATEMENT BY  THE REPRESENTATIVE O F THE REPUBLIC OF KO REA ...........  4 
3  STATEMENT BY THE DIS CUSSANT  ................................ ................................ ................  7 
4  STATEMENTS BY MEMBER S ................................ ................................ ........................  11 
5  REPLIES BY THE REPRE SENTATIVE OF THE REP UBLIC OF KOREA AND 
ADDITIONAL COMMENTS  ................................ ................................ ...............................  45 
6  CONCLUDI NG REMARKS BY THE CH AIRPERSON  ................................ .........................  50 
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by the Republic of Korea  are reproduced in document WT/TPR/M/ 346/Add.1  and will be 
available online at http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.  WT/TPR/M/346 • Republic of Korea  
 
- 2 - 
 
  1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  
1.1.  The seventh Trade Policy Review of the Republic of Korea was held on 11 and 
13 October  2016. The Chairperson, Ms. Irene Young ( Hong Kong, China), welcomed the delegation 
of the Republic of Korea headed by Mr . Lee Inho, Deputy Minister for Trade from the Ministry of 
Trade, Industry and Energy; the delegation from Seoul; and the discussant, Ambassador Jonathan 
Fried (Canada) .  
1.2.  The C hairperson recalled the purpose of the Trade Policy Reviews and the main elements of 
the procedures for the meeting. The report by the Republic of Korea  was co ntained in document 
WT/TPR/G/346  and that of the  WTO Secretariat in WT/TPR/S/346 . 
1.3.  Questions by th e following delegations had been submitted in writing before the deadline: 
United States; Canada; Australia; Chinese Taipei; Switzerland; European Union; Hong Kong, 
China; Guatemala; Chile; Norway; Singapore; China; Mexico; Brazil; Japan; New Zealand; 
Colombia; Benin; India; and Indonesia. The following delegations submitted written questions 
after the deadline: Dominican Republic ; Paraguay; Thailand; Argentina; Saudi Arabia; Ecuador; 
Peru; Malaysia; The Russian Federation; Turkey and El Salvador.  
1.4.  At the pr evious TPR meeting in 2012, Members had praised Korea for its effective fiscal and 
monetary policies which had enabled a prompt recovery from the 2008 global financial crisis. 
However, Members had also noted that the Korean economy could be affected not on ly by a falling 
demand in its most important markets, but also its own structural challenges such as an aging 
population and the need to improve productivity, especially in the energy and service s sectors. 
Since then, Korea had  remained a financially stabl e and resilient ex port-led economy, but growth 
had slowed down considerably, and the downside risks previously identified had  yet to be 
satisfactorily addressed. In their  advance questions, Members had  asked about the Creative 
Economy initiative and the Th ree-Year Plan for Economic Innovation, which were Korea 's main 
strategies to support economic recovery. A better understanding of these major economic trends 
and structural reforms could  be useful background to Members  discussion on trade policies.  
1.5.  Members  recall ed that, at the time of the previous review, alongside its commitment to the 
rules-based multilateral trading system, Korea had been  pursuing comprehensive WTO -plus FTAs. 
During this review period, six1 new ones had  entered into force, and more were coming. How this 
rapidly expanding network of preferential agreements might  shape Korea 's trade pattern and 
influence the directions of global trade was a matter of interest to Members.  At the same time, 
Members could  notice a significant increase in Kore a's trade remedy measures since 2012. 
Recourse to anti -dumping action had  doubled, and special safeguard provisions were used more 
frequently. Did that suggest a changing emphasis in Korea 's foreign trade policy? This could  also 
be discussed.  
1.6.  An observatio n which had attracted many Members ' attention at the last review had been  
Korea 's relatively low FDI inflow as a percentage of GDP. Between 2012 and 2015, inbound FDI 
had grown by more than 50%, but in monetary terms that was still much lower than the outf lows. 
Whether the so -called 'Korea discount ' factor had  a role to play was unclear, but as a matter of 
fact, large business conglomerates still dominate d the market; privatiz ation of state -owned 
enterprises had  made little progress; and foreign suppliers had accounted for less than 1% of the 
Public Procurement Service 's total purchase operations last year. Understanda bly, many advance 
questions had  been raised about investment barriers and measures to attract FDI. There was a 
particular interest i n the dere gulation and liberaliz ation of various service sectors. It might  be 
useful if the Korean delegation could elaborate on their plans to create a better business 
environment for investors.  
1.7.  Korea 's tariff regime had been  another area of concern at the last TPR . What Members had 
seen then was a complex tariff structure, with a relatively high average applied MFN rate, tariff 
peaks, and unfilled TRQs. These issues were particularly relevant to the agriculture sector, where 
domestic products were heavily protected  by various trade measures including tariffs. The 
Chairperson saw from Members ' advance questions that they continue d to encourage 
improvements to the tariff regime. They also sought  information on other forms of domestic 
                                                
1 With China, New Zealand, Viet Nam, Canada, Australia, and Turkey,  respectively.  WT/TPR/M/346 • Republic of Korea  
 
- 3 - 
 
  support, export assistance and imp ort control for the agriculture sector, which the Chairperson  
believe d the delegation might  be happy to provide.  
1.8.  As in the last TPR, many Members wished to see more trade -friendly technical standards and 
SPS measures. They were pleased to note certain impr ovements during the review period, such as 
better alignment of industrial standards with international ones.  
1.9.  Other areas where notable progress had  been made include regulatory reforms, trade 
facilitation, customs procedures and intellectual property right s protection. A lot of advance 
questions were asking about these new developments.  
1.10.   This meeting was a good opportunity for Members to discuss in greater detail issues of 
interest to them and of systemic importance to the multilateral trading system. The Ch airperson  
looked forward to a fruitful exchange.  WT/TPR/M/346 • Republic of Korea  
 
- 4 - 
 
  2  OPENING STATEMENT BY  THE REPRESENTATIVE O F THE REPUBLIC OF KORE A 
(MR. LEE INHO ) 
Introduction  
2.1.  We are pleased to participate once again in the seventh Trade Policy Review of the Republic 
of Korea.  
2.2.  Let me beg in my remarks by expressing my sincere appreciation to Madam Chair, Her 
Excellency Irene Young, Permanent Representative of Hong Kong, China, and to the distinguished 
discussant, His Excellency Jonathan T. Fried, Ambassador of Canada. I would also like to extend 
my gratitude to the TPR team of the WTO Secretariat for their tremendous work in preparing the 
Korean TPR process.  
2.3.  It is an honour to share Korea 's achievements in economic and trade policies today with such 
an esteemed delegation. Please allow me t o recall that Korea joined the GATT in 1967. It has thus 
been half a cen tury since Korea became a M ember of the multilateral trading system. Since then, 
Korea has built a competitive, free and open economy based on market principles. No one could 
deny that , during those five decades, Korea has recorded impressive economic growth; Korea 's 
GDP has leaped by 313 times, from US$4.4 billion in 1967 to almost US$1.4 trillion as of 2015.  
2.4.  Korea firmly believes that our economic success is attributable to our membe rship in the 
multilateral trading system. In this sense, we consider the WTO TPR a truly important function that 
directly contributes to better understanding of trade policies among all 164 WTO Members, thereby 
increasing the transparency of the multilater al trading system.  
2.5.  As such, we thank all the WTO Members who posed questions to Korea. We have responded 
to questions that were received before the deadline and are prepared to respond to the questions 
that were submitted thereafter. As a responsible Memb er of the WTO, Korea is fully committed to 
responding to the thoughtful and candid questions submitted by our fellow WTO Members.  
2.6.  With the inauguration of the new administration in February 2013, Korea has made efforts in 
order to ensure momentum for an e conomic recovery from the low -growth trend of the global 
economy through three year economy innovation plan and creative economy. As an advocate of 
openness and liberalization, Korea aims to foster a more open and free economic system. We have 
underscored detailed measures around the three areas of regulatory reforms, foreign investment, 
and public sector reforms.  
Regulatory r eforms  
2.7.  Recognizing that regulatory reform is "the most effective way to promote investment and 
consumption without spending ", we hav e committed to removing unnecessary regulations while at 
the same time reinforcing regulations that contribute to public health and safety.  
2.8.  In 2014, Korea introduced the "Cost-in, Cost -out" system, which balances the net cost of 
creating or reinforcing re gulations by abolishing or relaxing existing ones. The pilot program me 
was carried out in various ministries by the end of 2015, and is now in full operation as of 
19 July 2016.  
2.9.  Furthermore, in a move to evaluate costs and savings in more detail, we adopt ed the 
"Regulation Impact Assessment System " in a number of areas including competition, SMEs and 
technical regulations. And to make cost -benefit calculation easier, an online impact assessment 
calculator has been test -operated since July 2015.  
2.10.   Another me asure worth mentioning is the "Regulatory Reform Shinmungo " introduced in 
March 2014, under which any complaints regarding regulations are submitted and ultimately 
resolved through a one -stop system. This challenging task was made possible by assigning pub lic 
officials at the director level to address complaints within 14 days and opening up the entire 
process to the public online.  WT/TPR/M/346 • Republic of Korea  
 
- 5 - 
 
  Attracting foreign i nvestment  
2.11.   With regard to foreign investment, Korea has been working hard to attract more inward 
foreign di rect investment. Korea offers attractive and quality incentives to foreign investors. Korea 
has also improved transparency and reformed regulations that previously hindered foreign 
investment. As a result, according to the World Bank 's Doing Business 2016 report, Korea ranked 
4th out of 183 countries in overall terms of ease of doing business.  
2.12.   Laws have been amended to provide stronger incentives to foreign businesses, making 
Korea a more appealing destination for business headquarters and R&D centers. In addition, 
income tax incentives are also being provided to foreign workers and technicians who work in such 
headquarters and R&D centers.  
2.13.   There is more. Foreign -invested companies that create jobs will be eligible for additional 
reduction in their rental fees for state property, and the ceiling for corporate tax cuts will be raised 
relative to the number of jobs created.  
2.14.   A total of twenty -one (21) public officials from government ministries and offices have been 
designated as communication channels for fo reign investors. They are mandated to serve as a 
single window to answer any questions on laws and regulations related to foreign investment, and 
resolve complaints and requests made by foreign investors.  
2.15.   In conjunction with such efforts, a "Regulatory In formation Online Portal " has also been up 
and running since July last year to provide online access to legal information whenever a 
regulation is newly created or revised.  
Public sector r eforms  
2.16.   In the area of public sector reforms, structural reforms of public institutions have been 
implemented. Measures include the adjustment of overlapping functions among institutions, 
downsizing of non -core businesses, and allowing private sector participation when necessary in the 
areas of energy, environment and so o n.  
2.17.   Korea has remained committed to trade liberalization and open markets as a responsible 
member of the multilateral trading system. Korea has translated this commitment into action, by 
actively participating in multilateral trade negotiations as well as plurilateral and bilateral 
agreements.  
Multilateral trading s ystem  
2.18.   Korea is currently working to fully implement the decisions made at the WTO Ministerial 
Conferences held in Bali in December 2013 and Nairobi in December 2015. Not only have we been 
a key  contributor to discussions on the remaining DDA issues, but we have also been playing a 
leading role in advancing discussions on electronic commerce by hosting workshops and 
submitting proposals.  
2.19.   Notably, Korea has completed its domestic procedures for r atifying the WTO Trade 
Facilitation Agreement (TFA) as of July last year, and notified the WTO of our acceptance of the 
Protocol. We have already put in place a one -stop customs clearance system that enables trading 
companies to process their customs docum ents through a single window. Further, mechanisms 
have been established to disclose government information to the public online, when requested. 
Our efforts also extend outward, as we operate various program mes to assist developing country 
Members in impro ving their trade facilitation systems.  
Plurilateral a greements  
2.20.   Being an original party to the WTO GPA, Korea is now subject to the revised GPA, which 
entered into force in Korea on 14 January 2016. The implementation of the revised GPA is 
expected to enh ance efficiency and transparency and provide foreign suppliers and service 
providers with wider market access to Korea 's government procurement market.  WT/TPR/M/346 • Republic of Korea  
 
- 6 - 
 
  2.21.   Korea is an active participant in plurilateral trade negotiations involving information 
technology (IT) , services and environmental goods. I believe we all agree that the recent 
settlement of the ITA expansion negotiations was a significant outcome of the Nairobi Mini sterial 
Conference. The Korean G overnment is exerting its best efforts to ratify the expand ed ITA through 
domestic procedures. With regard to the on -going negotiations of EGA and TiSA, Korea is 
determined to provide full support in expediting their settlement.  
Bilateral a greements  
2.22.   Since the last review, Korea has concluded additional bilateral  trade agreements for the 
purpose of more comprehensive trade liberalization, including in the areas of services, investment, 
and intellectual property.  
2.23.   During the period under review, Korea has entered into eight (8) FTAs, concluded with the 
United State s, China, and Canada, to name a few. At present, 15 FTAs signed by Korea involving 
52 countries are in force. Consequently, Korea has created a more open trade network with 
countries that comprise more than 70% of the world 's GDP.  
Trade and d evelopment  
2.24.   Korea is taking an active part in trade capacity -building activities at the WTO level in order 
to support the integration of LDCs into the multilateral trading system. The amendment to the 
Presidential Decree on Preferential Tariffs for Least -Developed Coun tries has been allowing LDCs 
duty-free, quota -free (DFQF) market access for 93.6% of all tariff lines since January 2012.  
2.25.   As an effort to support capacity building of LDCs in the area of trade at the WTO level, 
Korea also donated to the WTO Doha Developmen t Agenda Global Trust Fund (DDA GTF) as well 
as to the Tier 1 projects of the Enhanced Integrated Framework (EIF). Korea plans to continue 
participating in the GTF and EIF Tier 2 projects in an effort to create more opportunities and 
benefits through trade  and market development.  
Conclusion  
2.26.   We are facing a moment of growing anti -globalization sentiment and flagging global trade 
growth. Last June, the WTO indicated that G20 trade restrictions reached the highest monthly level 
since the global financial crisi s in 2009. All of us have received the WTO report last month which 
indicates a slowdown in world trade growth. The world merchandise trade volume is expected to 
grow 1.7% in 2016, well below the April forecast of 2.8%.  
2.27.   Many people doubt the value of trade  liberalization. However, I believe the benefits of trade 
are clear. Korea is one success story which demonstrates how an open and free economy can 
benefit the well -being of a nation 's people. As we may all agree, a strong and vibrant multilateral 
trading system will be the only effective way to counter the recent protectionist pressures that 
have been intensifying as of late. To this end, Korea is committed to playing a productive role in 
moving multilateral negotiations forward and discussing new trade ag endas.  
2.28.   Once again, I express my sincere appreciation to all the representatives who have joined us 
today. My delegation is prepared to faithfully respond to all your questions and comments during 
the review. I look forward to the constructive discussions that await us. Thank you.  WT/TPR/M/346 • Republic of Korea  
 
- 7 - 
 
  3  STATEMENT BY THE DIS CUSSANT   
3.1.  On behalf of my colleagues, let me extend my thanks to Deputy Minister Lee for a very 
comprehensive and persuasive overview and presentation.  
3.2.  Members have submitted over 600 questions and I don 't view the role of the discussant as 
being to simply summarize  or repeat the concerns or clarifications that you have put forward. 
Rather, I 've always viewed the role of the discussant as one of fa cilitator. So , what I would like to 
do is, building on the Deput y Minister 's presentation and the very concise written submission of 
Korea alongside the detailed Secretariat 's report, to reflect on where we are with Korea as a WTO 
Member and to provide you with hopefully some stimulating context for the discussion to f ollow.  
3.3.  The first thing  that strikes me and that  the Deputy Minister mentioned in his starting remarks 
is history. It 's important to remember just how far Korea has come . In the 1950s, following WWII 
and the cease fire of the Korean War, the Republic of Kor ea was in fact one of the poorest 
countries in the world. The economic conditions were, to be frank, horrible: one of the lowest per 
capita incomes of the area ( US$156 per person in 1960); i nflation was very high, growth was very 
slow, investment was low, and domestic savings were nearly zero, if not negative. Korea was a 
very closed economy with respect to trade . In 1960, exports were only 3% of GDP and imports 
13%. Tariffs were high and quantitative restrictions abounded.  
3.4.  So how did Korea, in just over ha lf a century, move from one of the poorest countries to one 
of the world 's major economies? To a leading exporter of high -tech goods like smartphones and 
TVs, cars, ships and other manufactured goods? From a life expectancy of 53 in 19 60 to 82 t oday? 
From a GDP p er capita of just US$156 in 1960 to approaching US$30,000 today?  
3.5.  There is no one answer to this question . It has been debate d among many scholars and , I'm 
sure, soju-fuelled  discussions at home in Korea. One could debate the contributions of educati on 
because, after all, Korea has always invested in education. It 's a very literate society from its 
earlier days. The population and the people are well -known internationally for their strong work 
ethic. Smart investments in infrastructure such as electri city, roads, ports and the like  have also 
contributed . But one thing is clear alongside all these other factors and that 's the contribution of 
trade to Korea 's economic transformation.  
3.6.  Roughly half of Korea 's economy relies on exports. As mentioned earlier , let's recall that in 
1960 exports represented only 3% of GDP, now nearly 50%.  
3.7.  This was borne out of many government -led reforms to economic and trade po licy when 
Korea started to open up its economy beginning in the 1960s, joining the GATT in 1967 alongs ide 
a rapid industrialization process . They also undertook monetary, fiscal and tax policy reforms and, 
as a result, inflation fell dramatically and the won became much more stable.  The import regime 
was liberalized and tariffs were lowered. Exports were p romoted through a number of incentives, 
including tax credits and, one might say, export subsidies but these were largely phased out by 
the mid -1970s. There were also industrial policies to support what was called the "heavy and 
chemical industries " -- not without its challenges and with some mixed success.  
3.8.  But these measures were part and parcel of the Government 's promotion and support for the 
large conglomerates, which we all know today as "Chaebols ", and much of Korea's exporting 
success can be attribut ed to their activities. As a result, exports were only US$30 million in 1960 
and, today, merchandise trade, at least based on 2014 figures, totalled US$573 billion.  
3.9.  As a result of Korea 's export -led development, the country is today one of the world 's majo r 
economies and biggest traders. Korea has moved up five spots in five years, from being the 16th 
largest economy in the world in 2010 to the 11th largest economy today. As I mentioned earlier, 
it's a leading exporter of cars ships, oil and gas platforms a nd high -tech goods as well. It is one of 
the most "wired " countries on the planet: high broadband  speeds and a  high internet penetration 
rate. And if you have visited lately you have witnessed the consolidation of Sejong City , which 
centralizes government functions for easier collaboration  in a location r eachable by train from 
downtown Seoul as well.  WT/TPR/M/346 • Republic of Korea  
 
- 8 - 
 
  3.10.   All of this despite regional challenges, including those related to its neighbour to the north, 
Korea remarkably continues to demonstrate impressive success an d stability.  
3.11.   Korea is the third biggest trader in Asia and, as the Deputy Minister emphasized, a key 
participant in multilateral and plurilateral initiatives.  
3.12.   Let me just reinforce a few things the Deputy Minister said. It 's clear that Korea 's trade 
policy  is anchored in the WTO. Those of you who have been around long enough to have lived 
through Bali and Nairobi know how prominent and how active the Korean delegation has been in 
the negotiations and in the preparatory work leading up to the Ministerial mee ting. This builds on 
its active participation throughout the history of the GATT and the WTO and an original party to 
the WTO GPA, it participated in the ITA and ITA Expansion,  environmental goods negotiations, 
Trade Facilitation Agreement, keys of discuss ions. 
3.13.   Add to that, Korea 's leadership in the so -called "MIKTA " group has helped very recently and 
again tomorrow to facilitate discussion and initiatives in var ious areas (MIKTA workshop on 
e-commerce in July, MIKTA workshop tomorrow on WTO and Agenda 2030 ). 
3.14.   Admirable still over and above there is Korea 's contribution to trade and development. 
Korea offers preferential treatment for service suppliers of LDCs, DFQF market access for LDCs for 
about 94% of all tariff lines and actively promotes trade capacity -building activities undertaken 
bilaterally and in collaboration with other donors, as well as contributing to the Trust Fund and the 
Enhanced Integrated Framework.  
3.15.   All of this alongside Korea 's active pursuit of trade liberalization through regional and 
plurilateral initiatives now totalling 52 countries under 15 different FTAs with other negotiations 
ongoing, 8 FTAs since the last review, and 5 more under negotiation including the proposed 
trilateral agreement with China -Japan, Central America, RCEP, Ecuad or and Israel.  
3.16.   All of this trade activity is made possible because of underlined strength in Korea 's economic 
governance, very healthy public finances  with net Government GDP of 33% only, a ratio better 
than all but one G7 country (Canada at 28%). Korea ha s managed despite the aftermap and the 
financial crisis to maintain a current account surplus.  
3.17.   Alongside this, as the World Bank report has noted, is one of the easiest places in the world 
to open a business. Korea ranks very high internationally when it c omes to technology, 
infrastructure, health and education.  
3.18.   And where there is room for improvement (and I will discuss current challenges facing Korea 
shortly), Korea is on a path of continuing reforms. It has, during the review period, continued with 
structural, monetary and fiscal reforms to spur demand and investment, including in the areas of 
taxation, competition policy, SME support, innovation and  even trying to tackle labour market 
rigidities. These are set out in much more detail in the Secretariat report (paragraph 2).  
3.19.   Finally, it is worth mentioning the new anti -corruption law, which just recently took effect, 
and which aims to enhance trust in public officials . 
3.20.   Like most major economies, Korea is facing lower growth. From posting 10% growth rates 
in the 1980s, growth has averaged only 2.7% in the last five years. But the Secretariat predicts 
that growth will gradually restore some momentum in the course of 2017.  
3.21.   Regrettably, exports have every month year -on-year since January 2015, part of this due  to 
the weakness in its international customer s. China is its biggest trading partner and we know that 
Chinese growth has slowed as well. As a result, the manufacturing sector is struggling a bit and 
the Government of Korea has indicated that the manufactu ring-based economy which has driven 
the economic growth over the past 40 years has reached its limits and it is time to move to a new 
growth model based on innovation and entrepreneurship.  
3.22.   In this context, as we heard from the Deputy Minister, the Governme nt has recognized that 
the performance of its service sector lags behind those of developed economies, in large part due 
to a policy focus on manufacturing and  a wide spectrum of regulations that are being cleaned up.  WT/TPR/M/346 • Republic of Korea  
 
- 9 - 
 
  3.23.   In addition, the high household d ebt is close to 90% of GDP and household credit growth 
remains elevated . Nonetheless, Korea is generally resilient , although there are further steps that 
could be taken to strengthen the resilience of the economy.  
3.24.   By some estimates, the top ten Conglomerates i n Korea represent roughly 80% of GDP 
(2012 figures). But besides these conglomerates, Korean companies are representing a decreasing 
share of total market capitalization of the world 's top companies. For example, Hanjin, one of the 
world 's largest shipping  companies (7th largest fleet), filed for bankruptcy protection in late 
August and is currently working to restructure its debt. Samsung responded well with a global 
recall of Galaxy Note 7 phones after battery fires but deciding to replace 2.5 million pho nes could 
cost as much as US$1 billion by one estimate.  
3.25.   The dominance of these large conglomerates are a contributor to what our Chair referred  to 
as the "Korea discount " -- this is the market term for the undervaluing of Korean stocks by 
international inv estors because they perceive a higher investment risk compared to other 
countries. Other factors obviously contribute as well , including the geopolitical risks of the 
neighbourhood and the high level of household debt.  
3.26.   If you have a dominant conglomerate s ector, that means that is going to be harder for SMEs 
to survive and, indeed, SMEs in Korea are characterized by low productivity, low salaries and more 
non-regular workers . They face challenges in attracting and retaining talent and in access  to 
financing , especially early -stage funding, and that means this make them more dependent on 
public support.  
3.27.   Given the structural differences between the large and the small in Korea, different solutions 
are going to be required in government policy  for these two bus iness communities . 
3.28.   Concerning the aging population in Korea, fewer workers are going to have to carry more 
seniors  going into the future, aggravated by a low birth rate. This suggests that enhanced , more 
open immigration policy is part of the solution . But there is domestic resistance in Korea to 
increasing immigration and to further liberalizing mode 4 services.  
3.29.   The net result is greater pressure on healthcare, a lower labour productivity and rising 
unemployment among young job seekers. Korea now faces one of its highest ever youth 
unemployment rate s: 12.5% earlier this year ( youth is defined as 14 -28 years old ). 
3.30.   The Secretariat  report indicates (page 20, footnote 37) that Korea ranked 115th out of 
140 countries in its flexibility with hiring and firing, ac cording to WEF 's 2015 -16 Global 
Competitiveness Index.  
3.31.   All of this to say that there is a major structural challenge when it comes to  the labour force 
and to productivity. Changes to labour laws, however, are being debated in the National Assembly 
as we sp eak. 
3.32.   Despite these challenges , as the Chair and as the Deputy Minister highlighted, Korea has 
continued the path of reforms: regulatory reforms, the cost -in cost -out system,  and consumer 
protection. Intellectual property legislation has been strengthened  by very wide ranging 
amendments, including the author 's life plus 70 years  and better enforcement. Many of you had 
questions for clarification on copyright and pharmaceuticals.  
3.33.   Energy reforms are in train as Korea tries to transition from a supply -led energ y sector 
provided by the Government to demand -centered management with more investment from the 
private sector. That includes raising supply quotas for new and renewable energy.  
3.34.   We mentioned the information and communication technologies sector. Let me add  more 
specific element s, because Korea has laid out a plan to promote fintech (technology applicable to 
the financial sector). It has legalized crowd funding and internet -only banks.  
3.35.   In the trade facilitation context, Korea has introduced  a de minimis  clearance process for 
online goods as well.  That is the good side of  the potential challenge as reflected in some of your 
questions . WT/TPR/M/346 • Republic of Korea  
 
- 10 - 
 
  3.36.   As noted in the Secretariat report, Korea has not updated many of its notifications. Export 
subsidies h ave not been updated sin ce 2010; there are investment restrictions in several  
sub-sectors, including  beef cattle farming, inshore and coastal fishing, transmission and 
distribution of electric power and air transport . As several M embers have noted, despite a 
commitment to privati ze some state -owned enterprises, progress is lacking . The unweighted 
average MFN tariff increased slightly during the review period to 14.1% . Many Members have 
called for Korea to reduce the large number of rate bands and the use of decimals . 
3.37.   Regarding gov ernment procurement, as our Chair noted frankly, despite membership in the 
GPA, there is a tiny share of foreign supplies in the actual procurement , and the Secretariat report 
notes that Korea continues to try to use GP as a domestic economic policy instru ment.  
3.38.   Just a few more words on a few specific sectors that merit  further attention.  
3.39.   Agriculture: we have witnessed changes to the agriculture sector. But Korea continues to 
use export subsidies for certain farm products , and continues to have very high ta riff protection 
and gaps in notifications (special safeguards and domestic support).  
3.40.   Shipbuilding and shipping: there is some restructuring under way. Government support in 
the industry is not a new phenomenon and not unique to Korea, as discussed in OECD.  
3.41.   Other sectors highlighted in Members ' questions include automotive, pharmaceutical, and 
steel-industry activities , and several questions seek clarification including for financial services and 
insurance.  
3.42.   The Deputy Minister highlighted the Government resp onse. Its policy papers set out a Four 
Area Reform. The four areas are the labour market , including unemployment benefits; 
performance -based pay for the public sector to provide a more responsive  public sector; promotion 
of the financial  sector, includin g launching internet only banks and  removing regulatory arbitrages; 
and promoting university restructuring to continue Korea's  fine record of strong educational 
achievement . 
3.43.   In addition, like other countries, in this time of slow growth , Korea is looking not  only to 
monetary policy but to fiscal stimulus as well.  
3.44.   For long-term demand, as the Deputy Minister mentioned, the challenges ahead are: efforts 
to address immigration through better settlement programmes, as well as domestically to 
strengthen day-care and fertility support; e fforts to foster the services industry , including through 
higher tax rewards and R&D incentives and to revise the tax code to try to give service firms equal 
preferential treatment to exporting manufacturing companies.  
3.45.   All of which i s to say is that what you have is a country r eporting to you on a remarkable 
and impressive record of growth in quality of life , prosperity and in trade. It's a country that 
overall has an impressive record of support for the multilateral system and proact ive engagement 
in plurilateral, regional and bilateral initiatives. A country that is facing its challenges: 
demographically, moving from a manufacturing to a services economy and getting rid of some of 
the rigidities by way of regulations, of labour polic ies and otherwise.  
3.46.   In sum, Madam Chair, we have received a very impressive report where, as the Deputy 
Minister noted, the Government is facing remaining challenges and trying to continue its reforms.  WT/TPR/M/346 • Republic of Korea  
 
- 11 - 
 
  4  STATEMENTS BY MEMBER S 
UNITED  STATES  
4.1.  Economics and tra de together make up an important cornerstone of the United States ' 
bilateral  relationship with Korea. Our economic relationship has only grown stronger since Korea 's 
last trade policy review in 2012, when the U.S. -Korea Free Trade Agreement (KORUS ) had jus t 
entered into force. During the intervening four years, U.S. -Korea trade in goods and services 
increased from US$126.5 billion to US$147 billion. This demonstrates a growing maturity and 
confidence in our b ilateral economic relationship.  South Korea now h as a record -high level of 
US$40 billion invested in companies in the United States, more than double the pre -KORUS levels, 
supporting over 45,000 American jobs and contributing nearly US$25 billion to U.S. exports 
annually (2014 data, for jobs and exports) . 
4.2.  Outside of the KORUS FTA, U.S. -Korean trade cooperation also continues to deep en and 
grow. We are close partners in APEC, and the United States appreciates the cooperative nature of 
Korea 's work in such areas  as digital trade and services.  Likewise, we v alue Korea 's active 
engagement in plurilateral initiatives such as TiSA and the Environmental Goods Agreement. 
Furthermore, we commend Korea for ratifying the WTO Trade Facilitation Agreement and welcome 
its leadership in implementation. We appreciated Kor ea's active participation in the expansion of 
the Information Technology Agreement and the successful conclusion of that negotiation.  We now 
urge Korea to fully and quickly implement its obligations under that agreement.  
4.3.  The United States commends Korea on  its continued drive toward trade liberalization, as 
evidenced by its ever -expanding network of FTAs. Since the release of the last trade policy review, 
Korea has concluded eight new FTAs.   
4.4.  We note that the TPR reports address Korea 's customs procedures, an area our two countries 
have worked on closely together. The United States welcomes the strides Korea has made since its 
last review in the area of customs modernization, and would emphasize the value of meaningful 
stakeholder involvement as its customs service continues to work to improve processes and 
procedures in accordance with the customs modernization principles being discussed in the Wo rld 
Customs Organization (WCO).  We would note that we continue to see from Korea 's customs 
authority significant scrutiny of the country of origin claims made for U.S. origin products, even 
when these are accompanied by official origin certifica tions or attestation documents.  We hope to 
continue to work with Korea to increase trust in t he U.S. documentation system. Likewise, as 
Korea shares information on creating customs clearance systems with developing nations, we 
strongly encourage a WCO -consistent approach.  
4.5.  With the implementation of KORUS, regulatory transparency in Kore a has increased 
significantly. Still, Kore a's regulatory environment is often mentioned by businesses – Korean and 
foreign -owned alike – as slowing th e country 's economic progress. In line with good regulatory 
practices outlined by both APEC and the OECD, the United States strongly encourages Kore a to 
make further strides toward increasing stakeholder involvement, subjecting proposed new 
regulations to rigorous impact and cost -benefit analysis, and, wherever possible, to harmonize 
Korean requirements with international standards.   
4.6.  Regarding Korea 's termination of its special treatment of rice under the WTO Agreement o n 
Agriculture as referenced in s ection 4.2.2 of the Secretariat 's report, as well as Korea 's pending 
rectification and modification of its tariff schedule (G/MA/TAR/RS/396), the United  States looks 
forward to working with Korea to bring this matter to a tim ely and favorable conclusion. 
Furthermore, while we respect Korea 's right to adopt sanitary and phytosanitary measures 
necessary for the protection of human, animal, and plant life an d health, we look to Korea to 
ensure that its SPS measures are based on science and consistent with the WTO Agreement on the 
Application of Sanita ry and Phytosanitary Measures. Also, we urge Korea, as one of the world 's 
leading fishing nations, to take a m ore constructive stance in the negotiations to prohibit subsidies 
that contribute to overcapacity and overfishing.  
4.7.  In trade, investment, and beyond, Korea is a str ong ally of the United States. The Korean 
Government 's dedication to opening its economy, in creasing transparency, and implementing 
ambitious reforms will strengthen Korea 's place in the global market, to the benefit of the Korean WT/TPR/M/346 • Republic of Korea  
 
- 12 - 
 
  people an d Korea 's many trade partners. We applaud Korea 's progress since the 2012 review, and 
pledge to work closely  with Korea in the WTO, APEC, KORUS and other venues towards our shared 
pursuit of an open global trading system.  
CANADA  
4.8.  Canada has enjoyed a long and positive relationship with Korea, through difficult and good 
times, and I am honoured to be able to recog nize today the growth and development of a valued 
partner. Our positive bilateral ties go back to the beginning of the 20th century with the arrival of 
Canadian missionaries to Korea, and strengthened through Canada 's participation in the Korean 
War. Our r elationship has entered a new phase with our Strategic Partnership in 2014, and with 
the recent Canada -Korea Free Trade Agreement, which entered into force on January 1, 2015.  
4.9.  Korea is widely recognized as an extraordinary economic success story. At the e nd of the 
Korean War, the nation was both physically and economically devastated, but through impressive 
policy choices, timely government intervention, and a refocusing of the economy on manufacturing 
and export, Korea was able to achieve t he "Miracle on the Han River ". It has risen from Asia 's third 
poorest country in the 1950s to become the 11th large st economy in the world today. After 
receiving US$12  billion  in foreign assistance between 1945 and the 1990s, Korea has moved 
admirably from aid recipient to aid donor.  
4.10.   Korea 's example of perseverance in the face of adversity is an important one to remember 
as we now face new challenges in the global economic environment. While earlier growth was 
driven by promoting and enabling big business and the use of conglomerates and traditional 
manufacturing, we applaud and agree with Korea 's assessment that new efforts are needed to 
focus on a more open, innovative and creative economy, including the implementation of 
initiatives and support for SMEs and start -ups.  As part of these efforts, Canada welcomes Korea 's 
contribution to advancing the TiSA negotiations towards a successful conclusion by the end of 
2016.   
4.11.   More broadly, Canada shares Korea 's view that the way forward in these times of global 
economic challen ge is to increase and enable economic participation through transparent 
communication and consultations with stakeholders on trade issues; to simplify regulations; and to 
reduce barriers to trade. Canada also shares Korea 's objective of helping SMEs take a dvantage of 
the opportunities resulting from FTAs.  
4.12.   We commend Korea 's efforts towards these goals, including the structural and regulator y 
reforms that it is pursuing. At the same time, we hope that some consideration is given to 
simplifying Korea 's tariff  structure and to reducing tariffs, which are high by OECD -country 
standards. We would also welcome more attention being paid to the GPA 's transparency provisions 
and to reporting the latest stat istical data that is available.  And we encourage Korea to imp lement 
its commitments under the expanded Information Technology Ag reement without further delay.  
4.13.   Despite these trade policies that are cause for some concern, it is clear that Kore a's efforts 
are bearing fruit. We congratulate Korea on being ranked first in the world last year on the 
Bloomberg Innovation Index, and fourth in the world for ease of doing business according to the 
World Bank.  
4.14.   Canada is pleased with our cooperation with Korea bilaterally and at the WTO. We 
appreciate Korea 's contribution to t he WTO Factual Presentation exercise for the Canada -Korea 
FTA this past April, which underscores both countries ' commitment to promoting greater 
transparency. Regarding other ongoing work at the WTO, we continue to work constructively with 
Korea towards an  ambitious, future -oriented Environmental Goods Agreement (EGA ). On the WTO 
Work Programme on Electronic Commerce, Canada looks forward to advancing substantive 
discussions with Korea and other Members to explore how multilateral trade policy can be 
levera ged to maximize benefits of the digital economy for inclusive economic growth.  
4.15.   We also commend Korea for its commitment to notify and consult its trading partners on 
regulatory changes that affect or potentially affect exporters and service providers. As Korea 
pursues regulatory reform, we encourage it to continue this practice to ensure that new or revised 
regulations do not inadvertently result in barriers to trade. On this point, Canada would like to WT/TPR/M/346 • Republic of Korea  
 
- 13 - 
 
  note our ongoing cooperation with Korea with respect to its new and proposed forest -product 
standards.  
4.16.   To close, and to return to the topic of my opening remarks, Canada is pleased to offer an 
overall positive assessment of the direction and efforts that Korea is taking in it s economic and 
trade policies. We encourage Korea to continue to share through development assistance the 
lessons it has learned and is learning, and to provide guidance to LDCs that seek to emulate its 
success.  
4.17.   Canada is pleased to consider Korea as a valued trade, inves tment, and diplom atic partner. 
We look forward to continuing to work with Korea on the global stage. Canada submitted a number 
of questions t o Korea, most of which are focu sed on standards, investment poli cy, and intellectual 
property. We thank Korea for its responses to o ur questions and are examining those responses to 
determine whether we will be posing any follow -up questions.   
AUSTRALIA  
4.18.   Australia and the Republic of Korea have complementary economies of similar size although 
the ROK 's population is twice Australia 's. As Australia 's fourth -largest trading partner, our trade 
and economic links with Korea continue to be a key part  of the bilateral relationship.  Growth in the 
goods and services trade has been steady, averaging annual growth of 3.2 % over the last five 
years . Total two -way trade was worth A$36 billion i n 2015.  
4.19.   Australia is the ROK 's largest source of i ron ore, coal, beef and sugar. Overall, Australia was 
the ROK 's eighth largest import source in 2015. Going the other way, Australia was Korea 's 10th 
largest me rchandise market in 2015, the most valuable items being refined petroleum, passenger 
vehicles an d civil engineering equipment.  
4.20.   The December 2014 entry into force of the Korea -Australia Free Trade Agreement took our 
already strong bilatera l relationship to a new level. Australia is pleased with KAFTA 's smooth 
implementation.  Australia sees KAFTA as a high quality living agreement, with a busy work 
program which ensures it delivers me aningful outcomes for business.  The quality outcomes 
achieved in KAFTA were positively reflected during the June meeting of the WTO Committee on 
Regional Trade Agreements.  
4.21.   Australia commends the ROK 's goal of boosting growth, including the recognition of services 
and investment as key drivers of future economic growth as reflected  in the ROK G overnment 's 
economic agenda, The Three -year Plan for Economic Innovation.  Australia applauds The Plan 's 
focus on deregulation, labour market reform, public sector reform, as well as moving the Korean 
economy away from a dependence on manufactu red product export -led growth towards greater 
domestic consumption and a larger, more productive services sector, including financial services.  
4.22.   Korea 's services sector – and the accompanying services trade – represents an important 
potential growth engine for the ROK economy but this sector continues to be underdeveloped in 
comparison to other OECD countries, accounting for less than 60 % of economic activity. Since the 
last trade policy review , there have been only minor increases in the contribution of ser vices to 
ROK growth.   
4.23.   Australia sees  potential for further liberaliz ation in Korea 's legal services market. An open 
foreign legal market enables full collaboration between law firms across multiple jurisdictions; and 
offers significant potential to suppor t the growth and diversific ation of trade and investment. 
Despite some opening up, the ROK 's Foreign Legal Consultants Act rema ins unnecessarily 
restrictive. Australia urges Korea to further reform its legal services sector in ways that strengthen 
and expa nd the trade in legal services which are consistent with t he object and purpose of GATS. 
This would enhance the ROK 's global competitiveness, support foreign investment and create more 
local jobs.  
4.24.   On investment, Australia notes that the ROK 's inward forei gn direct investment remains 
amongst the lowest in the OECD despite the Korean government 's efforts in  promoting and 
attracting FDI. Ongoing concerns by business regarding the regulatory environment in the ROK, 
including the complexities of registration, n otification, licensing and approval requirements, appear WT/TPR/M/346 • Republic of Korea  
 
- 14 - 
 
  to be to b e impeding foreign investment. Australia looks forward to continuing to share 
experiences with the ROK on enhancing regulatory transparency and streamlining regulatory 
procedures.  
4.25.   Australia  commends the ROK 's trade facilitation efforts which have be en recognized 
internationally. Australia appreciates the ROK 's constructive contributions to the WTO trade 
facilitation discussions and looks forward to working with Korea in its ongoing improveme nts, 
including in advance consultation, streamlining border procedures and interagency cooperation.  
4.26.   The Secretariat 's report notes that the ROK 's tariff arrangements remain complex and, in 
some cases , restrictive and inefficient. Korea 's average applied M FN tariff rate also remains high. 
Australia encourages the ROK to improve transparency of its tariff arrangements, including by 
reducing tariffs and/or simplifying its tariff structure, in line with its undertakings in its FTAs.  
4.27.   Regarding agriculture, Aust ralia notes the ROK 's focus on food safety and in particular 
efforts to consolidate imported food safety regulations into the Special Act on Imported Food 
Safety Management and the development of a positive list system for pesticides and agricultural 
veterinary chemicals res idue limits.  Australia supports the implementation of food safety regulati on 
based on science and harmoniz ed with international standards.  Australia is interested to hear if the 
ROK's food safety initiatives are managing food safety risk s, reducing regulatory burden and 
promoting transparency in the asses sment of agricultural imports. Australia reminds Korea of its 
commitment to improve regulatory quality. We urge the ROK to work constructively with 
stakeholders – including trading partne rs - in order t o minimiz e potential disruptions the Special 
Act and positive list system could have to trade.  
4.28.   Australia notes state -owned enterprises continue to play a major role in the ROK, 
particularly in the energy sector whe re prices are often regulat ed. The libera lization of the ROK 's 
energy and resources sector would represent an opportunity to, increase competition and boost 
efficiency, provide more options for Korean consumers, deregulate, move towards market -based 
tariffs and facilitate foreign in vestment  
4.29.   Australia commends the ROK on its expressed commitment to politically challenging 
structural reform. Australia encourages the ROK to proceed with the implementati on of such 
structural reforms. This would increase the flexibility of Korea 's econom y, enhance its ability to 
respond to growing external competition and help the ROK to meet its broad -based economic and 
welfare objectives including inclusive growth and a narrower wealth divide.  
THE SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU  
4.30.   Korea and the Separate Customs Te rritory of Taiwan, Penghu, Kinme n and Matsu have 
enjoyed close and fruitful trade relations for many years. Korea is our 5th largest trading partner, 
with a total value of two -way trade between us of US$26 billion do llars in 2015.  
4.31.   At the same time, the integration of our respective industries, particularly in the electronics 
and high -tech sectors, continues at a rapid pace.  
4.32.   Indeed, the openness of Korea 's economy to international trade and the scale of its 
integrati on in the world economy is clearly reflected in the fact that trade in goods and services 
accounted for nearly 85% of its GDP in 2015. In addition, the global expansion of its multinational 
enterprises, such as Samsung, continues to translate into signific ant outflows. And, Korea remains 
not only a major exporter of goods, but of capital as well, in the form of outward investment. So. 
all-in-all, despite the slowdown in the global economy, Korea 's basically strong fundamentals have 
definitely helped to main tain its macroeconomic stability and the resilience of its export -led 
economy.  
4.33.   We also admire the progress made in its programme of structural reform, with initiatives 
such as the Smart Government Strategy, the Three Year Innovation Plan, and its Cost -in, Cost-out 
approach to promoting regulatory ref orm. In 2015, Korea was ranked "top performer " by the 
United Nations in its e -Government Survey, and in 2016 it ranked 4th out of 183 countries in 
terms of "ease of doing business " in a recent Report of the Worl d Bank which must be especially 
welcomed by traders, who will be the real beneficiaries of trade facilitation.  WT/TPR/M/346 • Republic of Korea  
 
- 15 - 
 
  4.34.   We are also pleased to note Korea 's on-going commitment to global engagement and policy 
liberalization by its continuing to pursue bilateral FTAs . We have been working hard together on 
WTO plurilateral agreements such as the ITA Expansion, the TiSA and the EGA, and we are looking 
forward to Korea 's implementation of the ITA Expansion very soon.  
4.35.   Despite Korea 's efforts in pursuing economic reforms a nd trade liberalization, however, the 
OECD index of trade and investment barriers was the second -highest in the OECD area in 2013, 
which might explain why Korea 's the inward FDI has remained low among OECD countries over 
past years.  
4.36.   We thank Korea for its answers to our questions submitted in advance. There are just a few 
points of policy that I would like to mention here, if I may.  
4.37.   One is on the subject of exchange rates. Over the past several years, Korea has maintained 
its floating exchange rate system a s a buffer against external shocks and to facilitate adjustment 
in favour of domestic sources of growth. The 2015 IMF report suggests that the Won should 
remain market determined with intervention limited to smoothing excess volatility. We tend to 
agree wi th this comment and would urge Korea to limit its foreign exchange intervention only to 
circumstances of disorderly market conditions.  
4.38.   Furthermore, Korea 's tariff regime remains relatively complex and unpredictable and the 
average of MFN applied tariffs ro se from 13.3% in 2012 to 14.1% in 2016. We would encourage 
Korea to simplify its tariff structure with a view to providing greater predictability.  
4.39.   And, just one other point on Korea 's rather dualistic economy, as we see from the 
Secretariat Report there ar e very large productivity gaps between the manufacturing and the 
services sectors, and between the conglomerates and SMEs. It is impossible to deny that 
conglomerates have played a key role in Korea 's development of today 's Korea. However, its over 
relianc e on the exports of a few large conglomerates makes the economy vulnerable to external 
shocks, especially if foreign demand drops as a result of a slowdown in key export markets for 
Korea. The current crisis with Korea 's biggest container line is a case in  point, which perhaps might 
alert Korea to reconsider its economic development model.  
4.40.   In closing, we welcome the progress made by Korea since its last review, and we pledge to 
continue working closely with Korea both in the WTO, and in other regional foru ms like APEC, and 
bilaterally of course, to pursue our common goal of a free and open global trading system.  
SWITZERLAND  
4.41.   Korea is a seasoned M ember of the WTO. The country 's contributions to a dynamic world 
trading system are manifold and very much appreci ated. The Korean economy has over time 
succeeded in cultivating reliable traits which are easily identifiable. Korea continues to strive for 
openness. It seeks further integration with markets both near and afar with a focus on trade in 
manufactures.  
4.42.   The country 's competitiveness finds regular expression in sizeable current account 
surpluses. These surpluses enable Korea to be a net exporter of capital. And indeed, last year 's 
outflows, both in terms of Korean FDI and portfolio investments, were once again  impressive. This 
structure inherent to the Korean balance of payments demonstrates economic strength, but poi nts 
to shortcomings as well.  
4.43.   As a distinctive exporter of capital, Korea 's investors are in constant search of good 
investment opportunities abroa d. Yet as the Secretariat 's report shows, similarly conducive 
investment conditions for foreign capital at home are not always in place.  
4.44.   It is true, some important strides towards more openness have been made in recent years. 
And as the Republic of Korea has herself pointed out, FDI inflows have been on the rise. But many 
notable restrictions remain.  
4.45.   Not only do these limitations curtail the perspectives for further foreign investment. They 
may also hamper local business.  WT/TPR/M/346 • Republic of Korea  
 
- 16 - 
 
  4.46.   Productivity growth seems to be needed especially in the area of services. The local SME 
landscape still appears to be relatively underdeveloped as well. In our own experience, thriving 
SMEs can make the economy as a whole more innovative and hence more productive.  
4.47.   And as the most recen t publication by the ITC has underlined, it is the most productive 
SMEs which tend to be able to enter global value chains. For only productive businesses will 
normally be in a position to bear the costs of meeting international product standards. Producti vity 
growth could also help to counterbalance the recent appreciation of the real effective exchange 
rate.  
4.48.   In recent years, the Korean authorities have used the fiscal and monetary toolbox available 
to them to adapt to economic shocks and to support domes tic demand. While these flexible 
policies may be useful in the short run, it is somewhat unclear to what extent they contribute to a 
predictable economic framework for  all economic actors involved.  
4.49.   It goes without saying that predictability is also a key i ssue when it comes to trade policy. 
In this vein, we question the utility of so -called flexible tariffs and welcome Korea 's intention to 
phase them out.  
4.50.   Aside from the fact that Korea 's tariff system could in general be streamlined, we feel that 
the sundr y application of what is termed "usage " tariff rates adds to the system 's complexity.  
4.51.   It is also interesting to note that there seems to be a conflict of interest with respect to the 
administration of agricultural tariff quotas. In some instances, the adm inistering agency has ties 
with domestic producers competing with the imported item.  
4.52.   With respect to fossil fuel subsidies, Switzerland welcomes Korea 's decision to end support 
for coal production by 2020.  
4.53.   Switzerland and Korea are maintaining intensive a nd mutually profitable trade relations. 
Trade between Switzerlan d and Korea has increased by 35 % in the last couple of years, not least 
on account of the Free Trade Agreement between EFTA and Korea. However, as this Agreement 
has been concluded 10 years ag o, it does not exploit the full commercial potential of both partners 
and we believe that it should be updated.  
4.54.   Let me conclude by commending Korea for the on -going reform efforts which address some 
of the points I have just raised. We look forward to furt her constructive engagement with Korea in 
this house and within various groupings such as the G10 and wish the Korean delegation a fruitful 
trade policy review.  
EUROPEAN  UNION  
4.55.   As a preliminary general comment, I would like to underline that the EU regrets that no 
alternative timelines were used; this would have allowed Members to better prepare this meeting.  
4.56.   Now, turning to the substance of the Republic of Korea 's trade policy review, let me start by 
noting the continuous economic growth of Korea and its ro le in international trade. Korea is 
currently one of the most dynamic economies in the world, ranked 11th biggest in 2015.  
4.57.   Korea demonstrates economic resilience in a low growth world. Internally, Korea adapts its 
domestic policies aimed at a creative eco nomy and regulatory reform, while on the international 
stage it remains committed to trade liberalization and open markets.  
4.58.   The EU welcomes the policy measures adopted by the Korean Government as part of the 
"Creative Economy plan " in 2013 and the "Three -Year Plan for Economic Innovation " in 2014. 
These measures represent a good policy mix, allowing Korea to adjust to the challenging external 
conditions and also to grow at an average rate between 2.3% and 3.3% per year during the period 
under review.  
4.59.   Korea  is an important partner for the EU not only on the global stage but in particular in the 
Asian region.  WT/TPR/M/346 • Republic of Korea  
 
- 17 - 
 
  4.60.   The EU and Korea share common values and trade interests. This has been demonstrated by 
the continuing increase of the trade and investment exchange be tween them, strengthened further 
with the conclusion of the bilateral Free Trade Agreement in 2011. In 2015, the EU -Korea trade 
exchange totaled  €90 billion. Korea was the EU 's eighth largest source of imports and EU 's ninth 
largest export market. Converse ly, the EU has consolidated its position in Korea as Korea 's second 
largest supplier, the third largest export market and the largest source of foreign direct 
investments. In addition, bilateral trade in the services sector has also increased significantly  over 
recent years.  
4.61.   Besides the strong bilateral relation, the EU and Korea also cooperate at multilateral level on 
a number of global issues. We appreciate Korea 's role in several negotiating groups and, in 
particular, for having already joined the Gover nment Procurement Agreement and for its 
participation in the discussions on the Environmental Goods Agreement. The EU would like to urge 
Korea to accelerate its internal process for a swift implementation of the expanded Information 
Technology Agreement.   
4.62.   In this spirit, we appreciate the good reports prepared for this review by the authorities of 
the Republic of Korea and by the WTO Secretariat. The EU has submitted a set of questions in 
advance of this meeting, and would like to reiterate here a few elem ents in relation to trade -
related developments about which the EU expressed concern.  
4.63.   First, with regard to Sanitary and Phytosanitary matters, the EU regrets that no major 
improvements can be recorded in Korea during the period unde r review, namely on reg ionaliz ation 
and transparency. We note the continued discrepancies between the Korean legislation, the WTO 
SPS Agreement and the relevant international standards of th e OIE, especially for regionaliz ation 
and non -recognition of OIE status of the countries for beef. Unjustifiably, Korea continues to 
impose country -wide bans on EU Member States when an animal disease outbreak occurs (African 
Swine Fever, Avian Influenza) and lifts them only after lengthy and unclear approval procedures. 
The EU has always been  transparent and demonstrated time and again t hat it implements the 
regionaliz ation principle reliably and consistently in accordance with the WTO SPS Agreement and 
the relevant international standards. We therefore urge Korea to take due account and 
immed iately recognize the regionaliz ation measures as applied by all EU Member States.  
4.64.   The EU is also concerned about the insufficient transparency regarding consultations on new 
Korean legislation. The fact that Korea hardly gives sufficient time for trading partners to comment 
on the draft legislation and sufficient time to adapt to the new rules is worrisome.  
4.65.   Second, while the EU recogniz es that Korea has taken steps to further open up its economy 
to foreign investors, EU companies still note a lack of comp etition in key services sectors such as 
the professional, financial, telecommunications, and transport ones. Therefore, we would welcome 
a more ambitious opening and a more level playing field in the area of foreign direct investment.  
4.66.   Third and finally, t he adequate protection of intellectual property rights is also fundamental 
to attract FDIs and for the smooth operation of businesses. While we take note of the efforts made 
by Korea during the period under review, we urge Korea to intensify its efforts, i n particular with 
regards to IPR enforcement.  
HONG  KONG,  CHINA  
4.67.   Hong Kong, China (HKC) and Korea have long been enjoying strong trade and economic 
ties. Korea was our 6th largest trading partner last year, with the value of our bilateral 
merchandise trade e xceeding US$29 billion . It was also one of our largest trading partners in 
services in 2014, with a total value of services trade exceeding US$3.9 billion.  
4.68.   Korea is widely recogniz ed for its trade facilitation efforts. We applaud in particular its early 
ratification of the Trade Facilitation Agreement, and its decision to designate all the provisions 
therein as Category A commitments.  We are also pleased to note new trade facilitation measures 
in Korea during the review period, including the introduction of  a de minimis  clearance process for 
consumption goods purchased online.  WT/TPR/M/346 • Republic of Korea  
 
- 18 - 
 
  4.69.   At the same time, it is encouraging to know that the percentage of industrial standards in 
Korea which have been harmonized with international ones has risen significantly, from abou t 60% 
in 2010 to 97% in 2016. We hope the authorities can continue their good work in this regard, in 
order to facilitate international trade.  
4.70.   As for tariffs, we are glad that Korea has bound more than 90% of its tariff lines and that 
over 99% of its tariff s are ad valorem. However, the tariff structure remains complex; and 
protection for agricultural products high, with an average MFN app lied rate ten times that of 
non-agricultural products  and rates that can go u p to 887%. We encourage Korea to simplify it s 
tariff regime and bring down its tariffs.  
4.71.   Tariff, nonetheless, is only one of the measures that Korea maintains for its highly  protected 
agriculture sector. Although the sector only contributed to around 2.3% of the country 's GDP in 
2015, the total suppo rt it received amounted to 1.8%. Such a level of domestic support was much  
higher than the OECD average. We encourage Korea to liberalize its agricultural sector.   
4.72.   One notable development since the last TPR is that Korea 's anti -dumping (AD) initiation has  
increased substantially, from eight cases during the previous review perio d to 20 cases during this 
one. Moreover, the 13 sunset reviews completed between 2012 and 2015 had resulted in the 
extension of 12 a nti-dumping measures.  To avoid unnecessary trade restrictions, we encourage 
Korea to exercise restraint in taking anti -dumping actions, and to review the measures critically to 
ensure that only the fully justified ones remain in force.  
4.73.   During this review period, Korea 's state -owned enterprises continue t o participate in a wide 
range of trade and/or trade -related activities in different sectors including agriculture, mining, 
financial services, broadcasting and media, and transport, despite some privatizati on efforts. We 
encourage Korea to foster greater p rivate sector participation to enhance competition and 
productivity.  
4.74.   In this connection, we note that there had been quite a number of regulatory changes in the 
services sectors, affecting financial, telecommunications, maritime and distribution services. Some 
of them, such as the Mobile Device Distribution Improvement Act of 2014, can enha nce 
competition in the sector. We encourage Korea to further open up its services market to foreign 
investors, especially for sectors which are currently subject  to forei gn-ownership ceilings.  
4.75.   Korea and some other WTO Members including HKC are now actively engaged in the 
negotiation on an Environmental Goods Agreement, the benefits of which will be shared with all 
WTO Members by  virtue of the MFN principle. We look forward  to working closely with Korea and 
other participants towards a successful conclusion of the Agreement by the end of this year.  
4.76.   Finally, as fellow Member of the WTO, HKC would like to thank the Korean Mission, under 
the capable leadership of Ambassador CHO I Kyonglim, for their constructive engagement in, and 
contribu tions to, the work of the WTO. We wish Korea a very fruitful and successful TPR.  
GUATEMALA  
4.77.   Korea's impressive economic growth over the past 60 years is a major success story that 
merits further study and analysis. Despite the country's mountainous terrain, few flat lands and 
limited natural resources, the Korean authorities have been driving domestic growth since the 
1960s, with economic policies geared towards international trade and based on a rapid 
industrialization and innovation process. As a result, Korean exports have grown exponentially 
from US$32 million in 1960 to more than US$559 million in 2013. In 1948, Korea's per capita GDP 
was equivalent to US$60 and today amounts to over US$26,000 . 
4.78.   Guatemala has enjoyed close and friendly ties and has been cooperating with Korea for the 
past several decades. Our diplomatic relations date back to 1962 and have expanded in many 
areas such as policy, trade, education and culture, and more recently in the security sphere. Korea 
is also an observer of the Central American Integration System (SICA), a mechanism that enables 
it to remain in constant touch with the countries of the Central American Isthmus.  WT/TPR/M/346 • Republic of Korea  
 
- 19 - 
 
  4.79.   A large number of Korean clothing and textile firm s have set up in Guatemala since the 
1980s. More than 10,000 Koreans reside in Guatemala today, which has led to interesting cultural 
exchanges between our countries.  
4.80.   This is a very special time as regards trade relations between our two countries: in 2015 , 
Central America and Korea began negotiating a free trade agreement to further strengthen their 
ties and increase the volume and diversity of their trade. Six negotiating rounds have been 
completed successfully so far, and the remaining issues are expecte d to be finalized in the coming 
months.  
4.81.   According to figures from the Guatemalan Central Bank, the trade balance between Korea 
and Guatemala exceeded US$530 million in 2015. Guatemala's leading exports to Korea are lead, 
sugar, coffee, bananas and zinc. Tr aditionally, its main imports from Korea have been vehicles, 
machines, mechanical appliances, plastics and plastic products. In 2015, Korean investment in 
Guatemala amounted to over US$23 million, most of which went into manufacturing industry. Over 
the pe riod 2007 2015, Guatemala received more than US$289 million worth of investment from 
Korea.  
4.82.   Turning to the review that brings us here today, we welcome Korea's efforts to improve its 
regulatory framework and avoid introducing unnecessary new regulations, a  process that has cut 
the number of regulations by 10%. It is also important to highlight the introduction of trade 
facilitation measures, such as a de minimis  clearance process for certain products purchased 
online, mechanisms to speed up customs valuatio n, and the ratification of the Trade Facilitation 
Agreement. Korea also made significant efforts over the review period to reduce the number of 
industrial standards and harmonize those in force with international standards.  
4.83.   Major challenges for Korea in th e near future are to simplify its tariff structure, further open 
up its government procurement system, reduce state involvement in the economy, and gradually 
eliminate agricultural protection.  
CHILE  
4.84.   Chile greatly welcomes the seventh Trade Policy R eview of  the Republic of Korea and 
congratulates the country on the work accomplished since its previous review in 2012.  
4.85.   Chile and Korea are two economies open to the world that share a common vision in their 
integration strategies, promote free trade, and are con tinually seeking to coordinate their 
approaches to the major issues on the international agenda.  
4.86.   Chile and Korea's bilateral economic and trade relations are governed by a free trade 
agreement that was signed in February 2003 and entered into force on 1 Ap ril 2004. It was an 
important milestone in trade policy terms, being the first free trade agreement signed between a 
Latin American and an Asian country, and represented the first step in Chile's successful process of 
integration in the Asia Pacific region . 
4.87.   The agreement has been in force for 12 years, and its comprehensive coverage includes 
substantive market access commitments for goods, as well as disciplines relating to investment, 
cross border services, temporary entry of business persons, intellectual  property and 
transparency, among others.  
4.88.   Korea is one of Chile's major Asian trading partners, ranking third in terms of the volume of 
trade with the Asian continent.  
4.89.   Trade between Chile and Korea amounted to some US$6,052 million in 2015. Chilean 
exports  to Korea declined by 0.8% in the period 2010 2015, totalling US$4,047 million in 2015, 
while imports were worth US$2,005 million.  
4.90.   The economies of Chile and Korea are highly complementary, so that we are optimistic 
about the possibility of expanding our b ilateral trade even further and diversifying the export 
basket. We view the strengthening of our trade relations as a major opportunity.  WT/TPR/M/346 • Republic of Korea  
 
- 20 - 
 
  4.91.   At the multilateral level, Chile and Korea have taken important common positions in various 
international forums. In th is connection, I would like to underscore the work done by Korea in the 
WTO, its commitment to the Doha Development Agenda and its implementation of the 
commitments undertaken at the Bali and Nairobi Ministerial Conferences.  
4.92.   We also hold common viewpoints on the agenda for the future, for example on electronic 
commerce, domestic regulation and many other issues which we are attempting to drive forward in 
the WTO on a day to day basis. I would like to take this opportunity to encourage Korea to move 
forward with its agricultural reform process.  
4.93.   In addition, I would emphasize the joint work done in the APEC forum since my country 
joined in 1994, which has been one of the pillars of Chile's strategy to further its economic 
integration in Asia Pacific trade flow s and help to create clear rules and transparent procedures for 
trade.  
4.94.   Chile also highlights Korea's interest in the Pacific Alliance, which it joined as an observer in 
June 2013.  
4.95.   Chile submitted four questions for this trade policy review, relating chiefl y to investment, 
services and sanitary and phytosanitary measures. We greatly appreciate the replies received.  
4.96.   Of particular interest, moreover, are Korea's development strategy and its resilience in 
confronting a complex global economic situation, the est ablishment of a "creative economy" being 
the backbone that has enabled the country to maintain its ranking as one the most innovative 
economies in the world.  
4.97.   Despite global economic difficulties, Korea achieved an average annual economic growth 
rate of 2.8 % over the period 2012 2015. The country's openness to trade is also noteworthy, with 
a ratio of trade to GDP standing at 84.8%.  
4.98.   It is most interesting to note the key elements of Korea's recent economic policy, essentially 
set out in the Three Year Plan f or Economic Innovation, which seeks to build an enabling 
environment for a creative economy and introduce structural reforms. Equally noteworthy are the 
efforts made to implement a regulatory reform policy in order to boost investment and 
consumption, whic h led to the revision of a significant number of regulations in 2014 and 2015.  
4.99.   Such policies are unquestionably a source of inspiration for many other Members, including 
Chile.  
4.100.   As I mentioned earlier, Chile and Korea have important common positions at the 
multilateral level, which will help us strengthen the present trading system in the near future, by 
developing clear rules that provide a greater degree of predictability in global trade in goods and 
services.  
NORWAY  
4.101.   We commend the Republic of Korea for it s impressive track record of economic 
development and trade liberalization as highlighted by previous speakers. The Korean economy is 
open to international trade and its integration into the world economy is reflected by the high ratio 
of its trade in good s and services to GDP. According to the WTO Secretariat, this stood at 84.8% in 
2015, impressive, but nevertheless a reduction compared to 2012.  
4.102.   The Republic of Korea is an important trading partner for Norway. Through EFTA, we 
signed a Free Trade Agreeme nt with the Republic of Korea in 2005. In 2015, the Republic of Korea 
was Norway 's seventh largest source of imports and 10th largest export market. If the European 
Union is counted as a bloc, the Republic of Korea is Norway 's fourth largest trading partne r.  
4.103.   We noted that the discussant pointed out that many questions posed by Members were 
related to shipbuilding. Norway and Korea are both shipbuilding nations. We have many common 
interests in the shipbuilding discussions in the International Working Group  concerning a possible 
new agreement on export credits. We appreciate the close cooperation with Korea on this matter. WT/TPR/M/346 • Republic of Korea  
 
- 21 - 
 
  It is of great importance to us that competition among exporters is based on the quality and price 
of the offered goods and services, rat her than on the most favourable terms and conditions of the 
financing. We would like to emphasize the importance of having broad international guidelines on 
matters such as premium rates, interest rates and transparency. We look forward to continuing 
the dialogue with the Republic of Korea on these issues.  
4.104.   Paragraph 3. 162 in the S ecretariat 's report describes the government support schemes for 
Korean ship builders and Korean offshore equipment suppliers. It is important that policies and 
regulatory mechanis ms are designed to ensure fair and transparent competition between Korean 
and foreign offshore and maritime equipment suppliers. It has been pointed out, among others in 
the Peer Review of the Korean Shipbuilding Industry and Related Government Policies by  the 
OECD Working Party on  Shipbuilding from January 2015  that Korean government -related agencies 
hold substantial ownership in Korean shipbuilding  companies. We urge the Korean G overnment to 
ensure that ownership by its government -related agencies does no t hamper free competition and a 
level-playing field among the industry players in the shipbuilding and subsidiary supply industries.  
4.105.   Seafood is a very important Norwegian export to the Republic of Korea. Our exports 
include a significant volume of fresh, f armed fish. This is a perishable commodity and vulnerable to 
any delay in the transportation chain. According to o ur information, approximately 3 % of these 
products are subject to random testing in the Republic of Korea and kept in custody unti l the test 
results are ready, 5 -7 days later. During this delay, the quality and shelf life of the products are 
reduced, sometimes to a level where destruction is the only option for the traders. It is important 
that routines for random testing of perishable seafood  be set up in a way that minimiz es quality 
reduction and shortening of shelf life of fresh seafood. While addressing the fisheries sector, we 
urge Korea to take active part in the multilateral negotiations on fisheries subsidies.  
4.106.   We would like to recognize t he Republic of Korea 's efforts to increase its renewable energy 
supply while reducing reliance on coal. We encourage Korea to avail itself of the G20/APEC fossil 
fuel peer review process.  
4.107.   Let me conclude  by emphasizing that Norway shares with the Republic  of Korea a strong 
interest in strengthening the multilateral trading system. We are pleased with our close 
cooperation across almost all aspects of trade policy and negotiations, be it on ITA, EGA, Tisa, 
remaining Doha issues and otherwise. We look forwar d to pursuing and further enhancing our 
cooperation in this regard.  
SINGAPOR E ON BEHALF  OF ASEAN  
4.108.   ASEAN and the Republic of Korea enjoy longstanding and cordial trade relations. The 
ASEAN -Korea FTA  which entered into force in January 2010 laid a solid found ation for the two -way 
trade between ASEAN and Korea.  
4.109.   Last year, Korea was ASEAN 's fifth largest trading partner, as well as investment source 
with total bilateral merchandise trade that value at US$122.9 billion and foreign direct investment 
inflows from K orea to ASEAN recorded at US$5.7 billion.  
4.110.   ASEAN and Korea are also currently involved in the Regional Comprehensive Economic 
Partnership (RCEP) negotiation s which include  ASEAN and six existing FTA partners.  
4.111.   During the ASEAN -Korea summit in Laos just last month, our leaders indicated the shared 
commitments to intensify ing the RCEP negotiations with a view to achieving a modern, 
comprehensive, high -quality and mutually beneficial agreement.  
4.112.   In ASEAN 's view, Korea has been an active, constructive and invaluab le Member of the 
WTO. We welcome Korea 's ratification of the TFA in July last year and also Korea 's positive 
contributions to the plurilateral negotiations under the WTO, including its role in the conclusion of 
the ITA expansion in Nairobi last year and it s continued efforts in EG negotiations.  
4.113.   We thank Ambassador Choi Kyong -Lim and his delegation for their amicable and 
constructive engagement with the ASEAN delegation here in Geneva.  WT/TPR/M/346 • Republic of Korea  
 
- 22 - 
 
  SINGAPORE  
4.114.   Singapore and Korea are similar in many respects. We are both h ighly dependent on 
external trade, firm supporters of the rules -based multilateral trading system, and face similar 
challenges such as the shift towards productivity -led growth, and vulnerability to external shocks. 
Our outlook on trade is similar – we sha re the belief that the answer to slowing trade growth is not 
protectionism, and that keeping our markets closed is not the answer. In this regard, we commend 
Korea for its continued efforts to keep its economy free and open, and its initiatives to keep its  
regulatory frameworks up to date, and to ensure a business -friendly environment. The Three -Year 
Plan for Economic Innovation has been a key driver in this regard.   
4.115.   We note that Korea 's Foreign Investment Promotion Act was recently amended to attract 
more investments from global companies, though some sectors remain closed to foreign 
investment. As the third largest investor in Korea, Singapore companies have a keen interest in 
the Korean market. The legal framework provided in the Korea -Singapore FTA (KSF TA) has 
enabled our businesses to operate with greater certainty and ease of mind. We look forward to 
greater efforts which would bring down remaining trade and investment barriers, including through 
the updating of the KSFTA to meet the evolving needs of our businesses. We see much potential 
for deeper economic collaboration as Korea develops its Creative Economy and as more Korean 
companies use Singapore as a base to expan d their regional operations.  
4.116.   Korea and Singapore share a common interest also in pro moting greater economic 
integration and cooperation within the region. The ASEAN -Korea Free Trade Area and ongoing 
Regional Comprehensive Economic Partnership ar e key features in this regard.  
4.117.   At the WTO, Korea has been an active and engaged Member. We not e that during the 
period under review, Korea has made improvements to facilitate more open and free trade, 
including ratifying the  Trade Facilitation Agreement, replacing its rice import quotas with tariff rate 
quotas, abolishing its rice export quota regi me, and the strengthening of intellectual property 
rights legislation. However, we note also that Korea 's average applied MFN tariff rate during the 
review period increased. We hope that Korea will continue to  take steps towards more 
market -friendly and tr ade facilitative policies, in particular in its agriculture sector. Also, while 
Korea has improved its WTO notifications record, notifications in areas such as government 
procurement, export subsidies and domestic support are still incomplete. We hope that  this will be 
rectified before long.  
4.118.   Singapore appreciates our close working relationship with the Korean delegation led by 
Ambassador Choi Kyong -Lim in Geneva. We also would like to express much appreciation for the 
active role Korea has played in helpin g Members understand the digital economy and current trade 
issues, such as through the organization of the two MIKTA workshops so far. We look forward to 
continuing our clos e cooperation in the days ahead . 
CHINA  
4.119.   We are pleased to see the achievements made by Korea during this review period. We 
have noted that the openness of the Korean economy to international trade, and its integration 
into the world economy continued to be reflected by the high ratio of its trade in goods and 
servic es to GDP, and that the  Korean G overnment has continued to improve its regulatory 
framework for the enhancement of its business environment.  
4.120.   Korea is an active participant in the multilateral trading system, a party of the expanded 
Information Technology Agreement (ITA), and th e 10th WTO Member of ratifying the WTO Trade 
Facilitation Agreement (TFA). We commend Korea 's positio n, as stated in its Government r eport, 
as a strong advocate of the WTO 's commitment to pursue trade liberalization.  
4.121.   China and Korea are important trading partners.  China is Korea 's largest trading partner, 
largest export market, largest source of import, and second largest investment destination, while 
Korea is China 's third largest trading partner, and second largest source of foreign investment.  
4.122.   The Chin a-Korea FTA entered into force in December 2015, which serves as a milestone in 
the history of our bilateral relations, and a connecting point of China 's Belt and Road Initiative and WT/TPR/M/346 • Republic of Korea  
 
- 23 - 
 
  Korea 's Eurasia Initiative. We believe this FTA would be a building bloc to Asia 's development and 
prosperity and to global economic revival.  
4.123.   That said, some aspects of Korea 's trade and trade -related policies and practices still cause 
Members ' concerns. For instance, Korea 's 2016 customs tariff remains relatively complex. The  
agriculture sector remains highly protected. We still have concerns over the allocation of in -quota 
rice imports, and we would continue working with Korea over these concerns. In terms of market 
access for foreign investment, FDI caps are still in place f or some sub -sectors, beef cattle farming, 
air transport and supporting services, and telecommunication services, just to name a few. We 
encourage Korea to continue with its efforts, as stated in its Government Report, to seek ambitious 
and high -standard tr ade liberalization conforming with the WTO rules, and to build a transparent 
investment environment. We hope Korea will implement ITA commitments without any further 
delay.  
MEXICO 
4.124.   My delegation endorses the statements made by other delegations that spoke b efore me 
and commends Korea for its efforts, which have turned it into one of the world's most advanced 
developing countries and a leader in technological innovation, as evidenced by numerous economic 
performance indicators.  
4.125.   This, along with ambitious gove rnment policies, many of which have already been 
mentioned, such as the expansion of the authorized economic operator related mutual recognition 
arrangements and the introduction of a de minimis  clearance process for products purchased 
online   to mention but a few, has placed Korea at the cutting edge of trade facilitation, 
undoubtedly contributing to Korea's designation of all provisions of the Trade Facilitation 
Agreement as Category A commitments and the country's prompt ratification of the Agreement. 
One important tool worthy of note is the UNI PASS portal and single window for online customs 
and trade formalities, a system that has been replicated by other developing countries since 2005. 
All these achievements notwithstanding, there is still work to b e done in terms of performance in 
areas such as appeal procedures, fees and charges, streamlining of border procedures and internal 
border agency cooperation, all in the trade facilitation context.  
4.126.   Mexico and Korea have close commercial ties and common int erests; they are both 
strongly committed to the smooth functioning of the multilateral trading system and participate in 
various forums and configuration s, such as the G 20, the Organization for Economic Co -operation 
and Development (OECD) and MIKTA, a gro up of countries consisting of Mexico, Indonesia, Korea, 
Turkey and Australia.  
4.127.   My delegation also congratulates Korea on the implementation of its four structural reforms 
of public institutions, labour, finance and education, which have enabled the country to boost its 
financial soundness by reducing the overall public debt to GDP ratio.  
4.128.   Despite these achievements, we note that Korea has a number of major challenges before 
it. I shall emphasize only a few, since other delegations have already made reference to them:  
 We believe that it is necessary to review and, if necessary, to reduce foreign direct 
investment caps in subsectors such as beef cattle farming, inshore and coastal fishing, air 
transport and auxiliary services, publishing activities, and broadcas ting and basic 
telecommunication services.  
 Turning to agriculture, we have concerns over the protection afforded to some agricultural 
subsectors, with exorbitant tariff rates of 887.4% for manioc and 513% for rice; the average 
MFN tariff in the agricultura l sector is 60%, one of the highest among WTO Members.  
 At the same time, policies need to be implemented to address the issues of declining 
farmland and diversification of production, since a little over half of the country's farmland is 
used for rice grow ing alone.  WT/TPR/M/346 • Republic of Korea  
 
- 24 - 
 
   Lastly, so as not to repeat what other delegations have said, we urge Korea to fulfil its WTO 
transparency obligations, mainly in regard to export subsidies and domestic support in 
agriculture, since these have not been notified since 2008 and 2 011, respectively.  
4.129.   To conclude, I thank Korea for its replies to my delegation's questions and to a few follow 
up questions on trade remedies that we expect to send in today.  
4.130.   We wish the Korean delegation every success in this review and in the organizatio n of the 
2018 Winter Olympics in Pyeongchang.  
BRAZIL  
4.131.   The Republic of Korea is one of the most remarkable cases of economic achievement of our 
time. Trade has been a key aspect of its development strategy.  
4.132.   Korea 's solid economic fundamentals are an importan t factor of resilience in an uncertain 
global environment. Despite the slowdown between 2012 and 2015, Korea still recorded positive 
growth rates between 2012 and 2015. Looking ahead, Brazil hopes that, as forecasted in the 
reports, growth in Korea will gr adually gain momentum in 2017, in spite of remaining challenges.  
4.133.   Brazil values Korea 's strong commitment to the multilateral trading system and to the WTO 
negotiating arm. Korea has likewise been an active participant in trade negotiations on the 
regional and bilateral fronts. In this regard, we highlight the joint consultative group with 
Mercosur, where we have had fruitful discussions on a range of trade and investment issues of 
common interest to the Member States of Mercosur and Korea.  
4.134.   We also appreciat e Korea 's record of implementation of its substantive and transparency 
WTO obl igations. As recognized in the S ecretariat report, Korea fulfils its notification requirements, 
in spite of delays, and abides by the general policy objective of building an open  economy based 
on market principles. In this positive overall context, the two areas of main concern to Brazil, one 
of which was the object of a written question, relate to the existence of agricultural export 
subsidies which have not been recently notifie d to the WTO,  as informed in page 84 of the 
Secretariat report, and to tariff peaks on agricultural products, part of a complex tariff structure. 
Bilateral SPS discussions are another priority for Brazil, with a view to obtaining access for 
agricultural pr oducts such as beef, pork and mangoes.  
4.135.   Let me point to the close ties between Brazil and Korea. Brazil was the first country in Latin 
America to recognize the Republic of Korea and, in 1962 Korea opened in Brazil its first Embassy in 
Latin America. Brazil is also home to the largest Korean community in Latin America.  
4.136.   Let me also highlight the importance of Korean foreign direct investment (FDI) in Bra zil, 
with a stock of around US$ 4.5 billion in 2014, in high value -added sectors such as automobil es 
and inf ormation technology.  
4.137.   Korea is also an important trading partner for Brazil. Bilateral trade flows, however, have 
declined in th e period under review, from US$13.6 billion in 2012 to US$ 8.5 billion in 2015, with a 
persistent trade surplus in favour of Korea . The main exports by Brazil to Korea are commodities 
and basic manufactured goods, while Brazil imports high value -added industrial products, such as 
electrical and mechanical machinery, automobiles and plastics. We will continue to work with 
Korea in ord er to expand bilateral trade in a balanced way.  
JAPAN  
4.138.   Japan would like  to begin with the Korean macro economic environment and policies. 
According to the Secretariat 's report, Korea has shown robust economic growth with an average 
growth rate of 2.8% from 2 012 to 2016. We commend Korea for this achievement.  
4.139.   The Secretariat 's report also mentioned some problems such as high dependency on 
conglomerates, low productivity, inactive SMEs and inflexible labor markets. Japan understands 
that the Government of Korea  is now undertaking various reforms in the areas of labor market, WT/TPR/M/346 • Republic of Korea  
 
- 25 - 
 
  education and financial services, and is promoting the service industry. Japan further commends 
Korea on these efforts.  
4.140.   Now please allow me to move on to trade and trade -related policies.  
4.141.   I will start with the WTO. Korea has already accepted the trade facilitation agreement 
(TFA), which Japan commends. Furthermore, Japan appreciates Korea 's efforts to actively engage 
in plurilateral initiatives aiming at further trade liberalization, such a s the GPA, the expanded ITA, 
the EGA and TISA.  
4.142.   Let me next turn to the FTAs. Korea has already concluded some 15 FTAs, including with 
the US, the EU and China. Korea is also actively participating in ongoing FTA negotiations, such as 
the Japan -China -Republ ic of Korea Free Trade Agreement, the RCEP and so forth. Although it is 
unfortunate that there is no FTA currently in force between Japan and Korea, Japan positively 
evaluates Korea 's continuous efforts toward trade liberalization through high -quality FTAs . 
4.143.   Now I would like to refer to some specific points.  
4.144.   First, the average applied MFN tariff rate increased to 14.1% in 2016, which is hig her than 
the OECD -country standards, according to the Secretariat 's report. Moreover, the gap between the 
average bound  and applied MFN tariff rates is 4.4 percentage points. We positively evaluate 
Korea 's efforts to reduce and eliminate custom tariffs through bilatera l and plurilateral 
arrangements . However, considering Korea 's increasing influence in the global economy, Japan 
encourages Korea to further reduce tariff rates.  
4.145.   Second, according to the report by the Secretariat, Korea grants MFN treatment to all its 
trading partners. We are concerned by the fact that Korea has not opened their terrestrial 
broadcasting to Japa nese dramas and variety program mes. Although we have received 
explanations that Korea no longer maintains any such broadcastin g regulations, it seems that 
de facto regulations still remain in place. We bel ieve it is time for the Korean G overnment to 
amend this regrettable situation and bring it into line with the WTO rules.  
4.146.   Finally, Japan has a concern with regard to shipbuilding. The Secretariat 's report notes that 
the Government is trying to maintain a level playing field between public and private entiti es. 
However, it has been reported that public financial institutions, such as the Korea Development 
Bank (KDB) and the Export –Import Bank of Korea (KEXIM), have injected massive public funds 
into Korean shipbuilders. Japan would like to point out that exce ssive involvement by public 
bodiesharms a level playing field and distorts the market. Therefore, Japan requests Korea to 
clearly explain the financial involvement of public bodies in the shipbuilding sector and to make 
any related measures fully consisten t with the WTO rules.  
4.147.   Let me conclude my statement with the following point. Recently in Hangzhou , the G20 
countries reaffirmed the importance of an open and inclusive multilateral trading system under the 
WTO. Given the increasing importance of Korea in t he global economy, we expect Korea to be 
successful in tackling its challenges and achieving economic growth. As important neighbours to 
each other, we look forward to cooperating not only for our mutual benefit but also to promote a 
stronger multilateral trading system.  
NEW  ZEALAND  
4.148.   Korea is a significant economic partner for New Zealand, ranking as our seventh -largest 
two-way trading partner. The trade relationship is highly complementary, and, in many cases, 
counter -seasonal, leading to mutually beneficia l flows of goods and services.  
4.149.   New Zealand congratulates Korea for its rise from 14th in the world GDP rankings around 
the time of the last review in 2013, to 11th in 2015, against a challengin g global economic 
environment. This is a further endorsement of  Korea 's focus on trade and trade liberaliz ation as a 
means to support economic development.  
4.150.   In addition to its contributions to the multilateral tra ding system, Korea has liberaliz ed its 
economy through  free trade agreements (FTAs). New Zealand became one  of Korea 's free trade WT/TPR/M/346 • Republic of Korea  
 
- 26 - 
 
  partners in 2015 and we are engaged with Korea and other partners in the negotiation of the 
Regional Compr ehensive Economic Partnership. Trade figures from the first half of 2016 show that 
our FTA has benefited businesses in both Kor ea and New Zealand, while inaugural committee 
meetings have brought regulatory agencies together to improve understanding and seek ways to 
facilitate trade.  
4.151.   We commend Korea 's commitment to further develop its economy through initiatives like 
the promotion  of creative economy, services sector reform, regulatory reform and increasing the 
role of the SME sector . We also encourage Korea to make further efforts to follow international 
standards and best practice, pa rticularly in the food sector. Korea has also made good use of 
information technology at the border, and we welcome recent indications that it is exploring 
electronic processing for SPS clearances.  
4.152.   The r eport indicates that agriculture continues to lag behind other sectors of the economy 
in terms of productivity, and remains highly protected and reliant on high tariff barriers, although 
Korea 's FTAs have resu lted in some tariff reductions.  The burdens of a weak agricultural sector will 
become more apparent given wider demographic changes, and continue  to carry a significant cost 
in terms of consumer wel fare and Korea 's food security.  We encourage Korea to make greate r 
efforts to reform and moderniz e the sector, through measures such as land consolidation, 
promotion of internationally competitive food p roducts and simplification of the border tariff 
regime, including tariff quota administration processes.   
4.153.   We note that Korea 's outstanding agricultural export subsidies notifications, which were 
last received for calendar year 2008, and agricultural domes tic subsidies notification, last received 
for calendar year 2011, are an area of concern. In the interests of transparency, we encourage 
Korea to bring its notifications up to date as soon as possible.  
4.154.   We also encourage Korea to ensure that support provide d to the fishing sector does not 
undermine sustainability objectives or contribute to overfishing or overcapacity.  
4.155.   New Zealand welcomes Korea 's target to increase renewable energy supply and decrease 
its reliance on coal. We encourage Korea to utiliz e the G20 or APEC peer review process for reform 
of fossil fuel subsidies as a mechanism for reviewing its fossil fuel policies and accessing expert 
advice. The further removal of fossil fuel subsidies would reduce market distortions and improve 
the environment.   
4.156.   To co nclude, both the Secretariat 's report and the Korean Report provide welcome detail of 
where Korea stands with respect to its commitments as a m ember of the World Trade 
Organization. They also provide useful information about Korea 's commitment to tr ade 
liberaliz ation and to the multil ateral trade system generally. We look forward to further discussion 
of the issues raised in the course of this review.  
COLOMBIA  
4.157.   I would like to begin by saying that Korea is an example for the rest of the world, insofar  
as its outstanding record of economic growth is linked to its high level of integration in 
international trade. As noted in the Secretariat report, Korea's foreign trade to GDP ratio was 
84.8% in 2015.  
4.158.   Colombia has historically maintained close political and economic ties with Korea, as 
evidenced by the recent entry into force of a free trade agreement   Colombia's first with an Asian 
country   between the two countries.  
4.159.   While foreign trade has contributed to the growth of the Korean economy, it has also m ade 
it vulnerable to fluctuations in the international market. Although Korea was the world's sixth 
largest exporter and tenth largest importer in 2015, exports declined by 8% and imports by 16.9% 
compared to the previous year.  
4.160.   This downturn in trade has p rompted the Korean Government to implement a variety of 
measures, including business activities geared towards taking advantage of preferences under 
regional trade agreements and free trade agreements, particularly in markets where major WT/TPR/M/346 • Republic of Korea  
 
- 27 - 
 
  complications aris e in order to comply with rules of origin. This is of interest to Colombia as it 
explores opportunities for expanding production chains that would enable Korea to use the 
bilateral agreement to harness third markets.  
4.161.   Among the expectations of a country suc h as Colombia is the opening up of the Korean 
agricultural market, where trade has been on the increase in recent years. According to the report, 
Korea complies with its WTO agricultural commitments and uses tariffs as the main domestic price 
control mecha nism. On the export side, the Government has reduced rice export quotas, simplified 
certification of origin and verification procedures, and established the Rural Industrial Convergence 
Zone in order to strengthen value chains.  
4.162.   The report also indicates th at support for the agricultural sector amounted to 1.8% of GDP, 
mentioning various forms of subsidy for Korean farmers. We would like to know more about these 
subsidies in the context of this review.  
4.163.   We note with interest the transition that the Korean fis heries industry is making towards 
fish breeding. We believe that this is another area in which Korea may potentially become an 
example for other countries.  
4.164.   The report also highlights a relative weakness of the Korean economy in the services 
sector, where p roductivity is only half that of the manufacturing sector. To remedy the situation, in 
July 2015 the Korean Government adopted the Service Economy Development Plan as a 
comprehensive measure to promote the sector. Its objective is to make the transition to  a 
developed economy driven by services, and one of the Plan's main thrusts is the amendment of 
regulations that serve as barriers to growth. This is a matter of great interest to Colombia, not 
only because we will be closely monitoring the impact of this Plan, but also because in 2015 
Colombia itself implemented a strategy to strengthen the services sector. This is therefore an area 
in which our two countries can cooperate at bilateral and multilateral level.  
4.165.   Lastly, we would like to re -emphasize the prior ity that Korea attaches to innovation as a 
policy to offset sluggish international demand. According to WIPO, Korea ranks 11th among the 
world's most innovative economies. Innovation should, of course, go hand in hand with a strong 
intellectual property ri ghts regime. In 2011, Korea therefore enacted its Framework Act on 
Intellectual Property and has since implemented legislative amendments in order to streamline 
procedures for applicants. This will undoubtedly further its strategy of promoting the "creativ e 
economy", which is one of Korea's major challenges for the future.  
4.166.   To conclude, we wish Korea every success in its trade policy review and urge Ambassador 
Choi and her Mission to continue playing an active role in the WTO with a view to improving the 
functioning of the multilateral trading system.  
BENIN ON BEHALF  OF THE LDCS 
4.167.   The LDC Group welcomes South Korea's continuing progress with various economic and 
trade reforms. The LDCs are also encouraged by the fact that it is possible to move from 133rd to 
23rd rank in terms of ease of starting a business.  
4.168.   The Republic of Korea is a major trading partner whose volume of trade with LDCs 
accounts for more than 8% of the Group's total exports. The LDCs' trade deficit with Korea 
reached its peak in 2011. It is imp ortant to note that LDC exports have continued to grow. 
Although this is attributable to several factors, the DFQF market access granted by Korea has 
undoubtedly had a positive impact in boosting LDC exports.  
4.169.   The LDC Group welcomes the enhanced preferentia l market access regime granted by 
Korea to 48 LDCs since 2012. However, the exclusion of several agricultural products has 
prevented LDCs from exporting certain fruits, vegetables and other food products to Korea. 
Moreover, LDCs are facing the challenge of  complying with the 40% threshold in respect of 
originating materials, because of the weakness of their industrial sectors. The LDC Group therefore 
invites South Korea to contribute to the preferential rules of origin for LDCs commitments by 
taking into ac count the LDCs' request concerning the level of originating products by exporting WT/TPR/M/346 • Republic of Korea  
 
- 28 - 
 
  country, in accordance with the Nairobi Ministerial Decision on Preferential Rules of Origin for Least 
Developed Countries.  
4.170.   Turning to fisheries, the Group commends the Repub lic of Korea for introducing more 
severe sanctions against vessels engaged in illegal, unregulated and unreported fishing.  
4.171.   As regards services, the LDC Group thanks South Korea for its notification, last year, of 
preferential market access treatment under the LDC Services Waiver in a number of sectors of 
interest to LDCs. Nonetheless, the LDC Group reminds Korea that in order to implement these 
preferences, it will have to take the necessary measures to alleviate the administrative burden and 
reduce the cos ts linked to the issuing of permits and visas.  
4.172.   The LDC Group thanks the Republic of Korea for the assistance it provides to LDCs under 
the Doha Development Agenda and the Enhanced Integrated Framework. The Group would like the 
Republic of Korea to step up its support for LDCs in the services sector.  
INDIA  
4.173.   According to the Secretariat 's report during the period under review, Korea 's annual GDP 
growth rate ranged from 2.3% (2012) to 3.3% (2014) and its annual average growth rate for the 
period 2012 to 2015 st ood at 2.8%, a slowdown compared to the average growth of 4.4%  over 
the period 2001 to 2011. According to IMF and OECD , the reasons for this slowdown include drop 
in demand from importing countries, strong export competition, falling performance of some ma jor 
manufacturing industries, struggling SMEs, high savings and low investment, sluggish household 
income growth an d services sector productivity.  We have noted that Korea has taken measures to 
address the challenging environment including trade -related st ructural and regulatory reforms to 
spur broad based economic growth and productivity to improve Korea 's international 
competitiveness.  
4.174.   We commend Korea 's initiative the "Creative Economy " launched in 2013 as the 
Government 's central policy objective for e conomic revitaliz ation to generate new added value, 
jobs, stimulate entrepreneurship and improve efficiency through innovation. The foreign direct 
investm ent in Korea has grown from US$10.7 billion in 2012 to US$16.4 billion in 2015. We also 
appreciate Kor ea's efforts to attract high -tech foreign investment projects and facilitate foreign 
investor 's contribution in  their domestic job creation.   
4.175.   India and Korea share  close and multi -faceted ties. During the visit of our Prime Minister to 
Korea in May 2015 , the bilatera l relationship was upgraded to "Special Strategic Partnership ". 
India and Korea signed a Comprehensive Economic Partnership agreement in 2009 which c ame to 
effect in January 2010. The comprehensive economic partnership has given a fillip to bil ateral 
trade between both countries.  In 2015 -2016, the total trade betwe en India and Korea stood at 
US$16.57 billion. India was Korea 's 14th biggest source of imports and 7th biggest export market 
in 2015. Investments both ways are on the upswing. Major Ko rean conglomerates such as Hyundai 
Motors, Samsung Electronics, LG and others have invested around US$ 3.91 billion in India till 
December 2015. Indian FDI led by companies like Mahindra & Mahindra, Aditya Birla Group and 
TATA are also reaching around US$ 3 billion.  
4.176.   India had submitted a number of questions and we thank the Korean deleg ation for the 
replies provided.  There is considerable potential to promote trade and investment between both 
countries. India has expressed interest to export Bovine meat to K orea and we have initiated 
market acce ss negotiations in this regard.  India is looking forward to commence negotiations on 
Mutually Recognition Agreements (MRAs) whic h is impacting the operationaliz ing of market access 
in services between both countries. We also hope to strengthen cooperation with Korea in skill 
development, information communication technology a nd research in pharmaceutical.  
4.177.   To conclude, we look forward to working with the authorities of the Republic of Korea in 
further expanding our trad e and investment ties for mutual benefit . WT/TPR/M/346 • Republic of Korea  
 
- 29 - 
 
  INDONESIA  
4.178.   Indonesia associates itself with the ASEAN statement made by the Ambassador of 
Singapore.  
4.179.   Korea is Indonesia 's 6th largest trading partner , with total trade reaching US$ 16 billion. 
Korea is also the 5th largest investor in Indonesia. These two indicators reflect what Korea is to 
Indonesia: an important and strategic trading partner.  
4.180.   To boost trade and investment between our two countries, Indonesia and Korea have re -
engaged in a discussion towards a compr ehensive economic partnership (CEPA). Indonesia would 
also like to commend the commitment of Korea in the implementation of the ASEAN -Korea FTA 
that also contributes to strengthening trade relation in the region.  
4.181.   Korea has maintained its commitment to the  open and rules -based multilateral trading 
system. Indonesia appreciates the openness of the Korean economy to international trade, and its 
integration into the world economy – as reflected in the reform process of Korea 's trade and 
domestic policy, and al so reflected in the high trade -to-GDP ratio which stood at 84.8%.  
4.182.   Indonesia believes that trade plays an important role as an engine of growth and 
development. Therefore, it is important to continue supporting and reaffirming commitments for 
the strengthe ning of the multilateral trading system, thus maintaining the central role of the WTO 
as the primary institution for global governance of international trade.  
4.183.   As an archipelagic country, where marine based resources constitute an important 
livelihood for t he Indonesian people, Indonesia remains committed to the eradication of illegal, 
unreported and unregulated fishing. We, therefore, would like to support measures taken by Korea 
in fighting illegal, unreported and unregulated fishing. IUU fishing contribut es to overfishing, 
creates unfair competition, and impedes sustainable fisheries.  
4.184.   While commending Korea 's efforts to support the multilateral trading system, Indonesia 
would like to refer to the plan of the Government of Korea to impose new SPS measures i ncluding 
the uniform pesticides maximum residue standard that exceeds those in the CODEX Alimentarius. 
We believe that such measures will create unnecessary new burdens on exporters of the 
concerned commodities, and thus will create unnecessary trade barri ers to trade.  
4.185.    Therefore, Indonesia would like to request the Government of Korea to reconsider the 
adoption of these new measures, so they shall not be more trade restrictive than as required by 
international standards and are consistent with the WTO Agre ement on the Application of Sanitary 
and Phytosanitary Measures.  
4.186.   Finally, we appreciate the written responses received from Korea this morning, and we look 
forward to continue to discuss trade related issues in order to strengthen economic relations 
betwe en the two countries.  
DOMINICAN  REPUBLIC   
4.187.   The Dominican Republic enjoys excellent ties of friendship with the Republic of Korea, not 
only in the context of the G 33 at the WTO, but also through the considerable bilateral cooperation 
that the Korean Governm ent provides to our country. We extend special thanks to the Government 
of Korea for the substantial assistance it has given the Dominican Republic in automating customs 
procedures and in intellectual property matters.  
4.188.   The Secretariat report shows that sin ce the previous review in 2012, the Korean economy 
has maintained macroeconomic stability, thanks in particular to its solid external buffers. GDP 
grew at an average annual rate of 2.8% over the period 2012 2015. The Korean Government uses 
monetary and fis cal stimulus measures to spur economic recovery. It has also undertaken trade 
and trade related structural reforms (e.g. rice tariffication, taxation, and competition policy), which 
aim to stimulate broad based productivity growth, thereby enhancing Korea' s international 
competitiveness. To encourage growth and domestic demand, measures have been adopted in 
areas such as taxation, SME support, state enterprises, innovation, and labour market rigidities.  WT/TPR/M/346 • Republic of Korea  
 
- 30 - 
 
  4.189.   We are pleased to note the openness of the Korean econ omy, as reflected by the high ratio 
of its trade (exports plus imports) in goods and services to GDP, which stood at 84.8% in 2015. 
The Government has continued to improve its regulatory framework to reduce the burden of doing 
business. In 2014, the Govern ment launched the "cost in, cost out" approach to avoid introducing 
unnecessary new regulations. From January 2014 to January 2015, the number of economic 
regulations was cut by 10%.  
4.190.   We commend Korea for the trade facilitation improvements introduced durin g the review 
period, including the ratification of the WTO Trade Facilitation Agreement (TFA) in 2015, the 
expansion of the authorized economic operator related mutual recognition arrangements, and the 
introduction of a de minimis  clearance process for con sumer goods purchased online. Korea has 
also improved its legislation relating to competition policy and intellectual property rights.  
4.191.   With these reforms, Korea's economic growth is expected to gain momentum in 2017. 
Nonetheless, since the economy remains vulnerable to exogenous shocks, such as slow growth in 
international trade due to its heavy reliance on exports of manufactures produced by a few large 
business conglomerates, we believe that it is important for the Government to implement 
structural refor ms to enhance productivity, and to undertake tax, privatization and continued 
regulatory reforms in order to improve the country's ability to respond to external competition and 
achieve equitable economic growth.  
4.192.   We have submitted a few questions to Korea concerning its tariff quotas and appreciate the 
replies received. It only remains for us to thank you and wish Korea good luck for the future.  
PARAGUAY  
4.193.   We take a positive view of Korea's engagement in this exercise, at an important economic 
juncture for th e country, now that it has overcome the effects of the 2008 international economic 
crisis.  
4.194.   All of us here know that the Republic of Korea has a long standing tradition as an open 
economy, with good connections to global markets and an export oriented focus  that serves as a 
model for all the developing countries. During the period under review, the main thrust of Korea's 
economic policy was to build a creative economy, primarily geared towards spurring innovation in 
its different forms, whether technological  or traditional, with a strong SME inclusion component.  
4.195.   All of this has led to continuous, albeit low key, growth of the Korean economy since 2012, 
with GDP increasing at a rate of roughly 2.5%. Korea belongs to the G 20 and notches top scores 
in almost al l international rankings, including a No. 1 ranking on the Bloomberg Global Innovation 
Index and fourth place on the World Bank's ease of doing business list, and it has one of Asia's 
highest credit ratings according to Standard and Poor's and Moody's.  
4.196.   As regards trade policy, it is important to underscore that Korea has been one of the most 
active Members of the WTO and the multilateral trading system. It recently ratified the Trade 
Facilitation Agreement; it is also party to the WTO Agreement on Governmen t Procurement (GPA) 
and the expanded Information Technology Agreement (ITA); and it is actively engaging in the 
negotiations for the Environmental Goods Agreement (EGA).  
4.197.   Likewise, Korea continues to facilitate access to its markets through high standard, 
comprehensive free trade agreements (FTAs) that cover goods, services and investment. It also 
takes part in mega regional FTAs and negotiations on bilateral FTAs. In this connection, we would 
welcome rapid progress in the discussions on a MERCOSUR Korea agr eement, following our signing 
of the framework agreement some years ago.  
4.198.   Nonetheless, there are still a number of challenges ahead, as evidenced by the many 
questions received from Members in connection with this review. We highlight those relating to the 
trade defence measures applied, sanitary and phytosanitary standards, the expanded coverage of 
import licences, production incentive schemes, and certain restrictions on imports of agricultural 
products. My delegation has submitted some specific questions concerning regulations on trade in 
services, procedures for importing meat products, and investment incentive schemes. We are 
grateful for the replies received, which we will go through carefully.  WT/TPR/M/346 • Republic of Korea  
 
- 31 - 
 
  4.199.   I would like to emphasize my country's excellent bilateral relationship with Korea, not only 
at the economic level but also in the political, social and cultural spheres, and above all in human 
terms. Since the middle of the last century, Paraguay has benefited from a sizeable influx of 
Korean immigrants   one of the largest inflows of migrants our country has ever known, and they 
have undoubtedly contributed to the development of our society and our economy, passing on to 
us their dedication, creativity and sense of cooperation. This is evidenced by Paraguyan Kore an 
citizens who have distinguished themselves in various spheres of Paraguayan society, for example 
in sports, music, the arts and journalism. I should also mention that the Republic of Korea is one 
of Paraguay's main cooperation partners.  
4.200.   As regards bilat eral trade, flows in both directions declined during the review period, 
owing, we believe, to business cycle fluctuations and the slowdown in international trade. The 
trade balance is largely in favour of Korea. Paraguay's leading exports are soybeans, mai ze, 
industrial waste and other raw materials, which accounted for just US$40 million in 2015. Imports 
from Korea were worth more than US$250 million, the leading products being vehicles, machinery 
and information technology goods, among other manufactures.  
4.201.   We are convinced that there is great potential for Paraguay to become a major supplier of 
Korea. We hope that our two governments can further expand their bilateral dialogue in order to 
enhance market access conditions for Paraguayan products in particula r. We have identified 
various sectors for more in depth discussion, such as technical and sanitary procedures for 
importing agricultural goods, especially beef, as well as cereals and cereal products.  
4.202.   To conclude, it is worth mentioning that Paraguay and K orea share the same vision of the 
multilateral trading system, and both countries wish to see prompt implementation of the Trade 
Facilitation Agreement and a strengthening of the WTO's negotiating pillar.  
THAILAND  
4.203.   Thailand associates itself with ASEAN 's statement previously delivered by Ambassador Yee 
Woan Tan of Singapore.  
4.204.   Thailand and Korea have a strong trade relation, with ASEAN -Korea FTA setting the 
found ation for trade. In 2015, Korea  ranked as Thailand 's 8th largest trading partner in the world, 
with trade value of US$7 billion. Export wise, there was a decline from a total export value of 
US$4.8 billion in 2012 to US$4 billion in 2015, due to a drop in Korea 's importation of Thai rubber. 
In terms of imports, Thailand 's imports from Korea have decline d from US$9 billion in 2013 to 
US$7  billion in 2015. Nevertheless, we view that such declines are only temporary and our 
fundamentally strong relationship will help our bilateral trade to recover in the near future.  
4.205.   TPR report by the Secretariat indicates that Korea 's economy grew at a solid average rate 
of 2.8% during the review period. Growth is expected to pick up in 2017, as monetary and fiscal 
stimulus are continued to be implemented and structural trade and trade related reforms 
continued to be undert aken. While we commend Korea for reforms undertaken in various areas, 
such as energy, privatization, regulatory framework for doing business, trade facilitation, industrial 
standards, and IPR, in order to achieve the accelerated and sustainable growth at t he level it 
aspires to, there are still significant structural problems to be addressed , such as the complexity of 
the tariffs system, the need for restructuring of the manufacturing sector, reduction in excessive 
support for SMEs, and reduction in agricul tural protection, just to name a few.  
4.206.   With regard to Korea 's contribution at the multilateral level, Thailand believes Korea to be 
a constructive and active member in all negotiations. Furthermore, we welcome Korea 's ratification 
of the TFA last year, and commend Korea for its participation in the ITA expansion.  
4.207.   In this review, Thailand submitted quite a number of questions to Korea covering the 
policies and measures of our interests.  
4.208.   Most importantly is with regard to the tariffication of rice products. Wh ile the Secretariat 
reported that rice import quotas were replaced by TRQs in January 2015, Thailand would like to 
add further that the proposed rectification and modification of Korea 's schedule still awaits the 
endorsement of Thailand and four other memb ers, namely Australia, China, the United States and WT/TPR/M/346 • Republic of Korea  
 
- 32 - 
 
  Viet Nam, so as to be formally certified. In this regard, due to the on and off nature and lack of 
follow -up of the bilateral discussion in the past year, Thailand would like to encourage Korea to 
push th e negotiation forward with a view to concluding the matter in a timely manner.  
4.209.   Other measures that were mentioned in our questions to Korea include investment policies, 
adjustment duties, domestic support for agriculture products and agriculture insurance scheme, 
TRQ allocation for rice, and competition policies, just to name a few.  
4.210.   We look forward to Korea 's responses, for which we will study carefully with great interest.  
4.211.   In conclusion, Thailand would like to express its appreciation to the Korean delegat ion for 
toady 's presentat ion. We are thankful for the co operation with Korea at every level, including that 
between our Geneva -based delegations. We wish Korea every success in this trade policy review.  
KINGDOM  OF SAUDI  ARABIA  
4.212.   Despite the daunting challeng es due to the global financial crisis, the high reliance on 
exports together with a limited domestic market and a rapidly aging population, the Korean 
economy remained strong and open. The real GDP growth averaged nearly 2.7% this year and 
expected to reac h 3% in 2017.  
4.213.   Due to the openness of the Korean economy to international trade, and its integration into 
the world economy, Korea became a leading producer of displays and memory semiconductors and 
the second  largest shipbuilding producer.  
4.214.   The Kingdom of Saudi Arabia welcomes the efforts of the Republic of Korea in sustaining 
macroeconomic stability and pursuing an open, liberal, and transparent trade and investment 
regime. Since its last review, the government has significantly undertaken large stimulus 
ambitious structural reforms to strengthen competition, raise efficiency in low -productivity 
services, increase employment, encourage R&D and environmental -protection activities and 
support the SME sector.  
4.215.   We commend Korea for its trust in the multilateral trading system and for its active 
engagement in negotiations with a view to concluding regional free trade agreements to secure 
more favorable market access for its goods and services within and outside of Asia.  
4.216.   Saudi Arabia and Korea are prominent tradin g partners; trade exchange between the two 
countries surpassed 170 billion Saudi Riyal in 2014  which makes Saudi Arabia the fourth largest 
trading partner for Korea. The Kingdom of Saudi Arabia is the largest exporter of oil to the 
Republic of Korea (300,0 00,000 barrels in 2014) and 100 Korean companies have business 
interest in Saudi Arabia in 2014.  
4.217.   Our two countries are keen to boost further cooperation in different fields such as 
construction, medium and light industries, petrochemical industry and infra structure projects and 
several other fields.  
4.218.   Korea has proved its commitment to support the multilateral trading system and the WTO 
and has demonstrated its desire to continue to play an active role in the pr omotion of free and 
open trade.  
4.219.   In this regard, I would like to appreciate the active role of H. E. Ambassador Young Moo 
KIM and wish the entire delegation of Korea a very successful Trade Policy Review.   
ECUADOR  
4.220.   This trade policy review is of considerable interest to our country, as we are currently 
moving towards the conclusion of a bilateral trade agreement with Korea. Ecuador's negotiating 
team is in Seoul as we speak, holding meetings in the fourth negotiating round between the two 
countries.  WT/TPR/M/346 • Republic of Korea  
 
- 33 - 
 
  4.221.   We are confident that the main products and sectors of i nterest to Ecuador and Korea, 
respectively, will very soon enjoy preferential and mutually beneficial market access.  
4.222.   Another point worthy of mention is that we recently had the honour of a visit to Quito by 
the Deputy Minister for Economic Affairs in the M inistry of Foreign Affairs of the Republic of Korea, 
Mr Lee Tae ho.  
4.223.   On that occasion, Ecuador's Vice Chancellor underscored the Ecuadorian Government's 
decision to further expand relations with the Republic of Korea by deepening the political dialogue 
as well as economic, trade and technical cooperation, particularly as regards the development of 
human talent; innovation, science and technology; and priority projects to transform the energy 
and production matrix, with support from the Korean private sector.  
4.224.   In that connection, I would like to thank the Republic of Korea for organizing a forum of 
Foreign Ministers of the countries belonging to the Forum for East Asia Latin America Cooperation 
(FEALAC), which is due to take place in May 2017 with a view to est ablishing mechanisms and 
strategies to revitalize the Forum, as agreed on Ecuador's initiative and in which our country takes 
an active part.  
4.225.   Turning to the Secretariat report, we note the slowdown in Korea's annual GDP growth 
compared to the previous revi ew peri od (2001 -2011). Nonetheless, Korea has implemented 
monetary, fiscal and trade policy measures, inter alia, in order to maintain the country's 
macroeconomic indicators and enhance its competitiveness.  
4.226.   The Korean economy's level of openness and integr ation is continuing to rise thanks to the 
country's trade in goods and services. Manufacturing remains critically important in Korea, with 
numerous policies aimed at promoting the sector, such as tax incentives and sector specific 
support. Nonetheless, the  services sector has continued to grow.  
4.227.   The report highlights the increase in the volume of trade under free trade agreements, 
particularly as a result of further opening of the Korean market thanks to regional trade 
agreements. Korea is very actively purs uing the expansion of this network.  
4.228.   At the multilateral level, we welcome Korea's ratification of the WTO Trade Facilitation 
Agreement (TFA) in 2015. We also appreciate the Government's efforts to align the country's 
industrial standards more closely with international standards and to increase its compliance with 
WTO transparency obligations.  
4.229.   In particular, we note the various measures aimed at providing substantial support for 
SMEs, such as encouraging the banks to broaden lending to SMEs and the incentiv e for the latter 
to take part in government procurement in the same way as firms owned by women and disabled 
people.  
4.230.   Measures to encourage R&D are also worthy of note, especially those concerning 
information technology, environmental protection, and those taken by the Korean Government to 
promote energy saving so as to reduce the country's reliance on energy and its worrying levels of 
energy consumption.  
4.231.   We likewise highlight the measures adopted by Korea to increase transparency, reduce the 
debt level and improve efficiency in the management of its public institutions.  
4.232.   Lastly, the Secretariat report describes the operation of the new positive list system for 
agrochemical residues, which will not allow imports of food containing such residues unless the 
substance has been listed, or approved, for the commodity in question and an MRL has been 
established. As the report further states, exporters will need sufficient time to make the transition 
to the new system.  
4.233.   In this connection, we would like to ask the Kore an delegation to provide us with 
information, in English, on the pesticides already listed and those in the process of being 
registered, since the relevant website only gives it in Korean.  WT/TPR/M/346 • Republic of Korea  
 
- 34 - 
 
  4.234.   Korea's economic growth is expected to gradually gain momentum in t he coming year. We 
hope that the Korean Government will further strengthen the national economy, given the risks 
that still lie ahead, so that it can continue to meet its socio economic targets for the future.  
4.235.   In conclusion, we thank the delegation of the Republic of Korea for its replies to the 
questions we have raised on some specific aspects of the country's trade policy. These answers will 
provide important information to strengthen bilateral and multilateral trade relations.  
PERU  
4.236.   Peru joins other Membe rs in congratulating the Republic of Korea on its strong economic 
fundamentals, which we are sure will enable the economy to maintain its upward trend and 
recover the high growth rates almost constantly recorded in the country's recent economic history. 
Likewise, we acknowledge the significant efforts made by the Korean Government to apply a policy 
mix that addresses the economic uncertainty of recent years and provides special support for 
innovation, the promotion of SMEs and increased productivity, among other major policies aimed 
at fostering Korea's international competitiveness.  
4.237.   Our bilateral relationship is excellent, and prospects, based on a positive agenda in many 
areas, are promising in spite of the geographical distance between us. The Strategic P artnership 
Agreement between Peru and the Korean Republic, signed in 2012, is a telling example of the high 
degree of cooperation between our countries.  
4.238.   As regards trade relations, the Republic of Korea is one of Peru's main trading partners. We 
highlight the importance of the Free Trade Agreement between Peru and the Republic of Korea, 
which was signed in Seoul on 21 March 2011 and entered into force on 1 August of the same year. 
This agreement has created a framework and conditions conducive to trade and investment 
between the two countries, thereby encouraging greater investment in the short, medium and long 
term and contributing to the expansion of bilateral trade. Nonetheless, there is at present a slight 
bilateral trade imbalance on which Peru is willi ng to work with the Republic of Korea in order to 
encourage the diversification of exports in both directions and thus extend our mutual trade 
benefits.  
4.239.   Peru has singled out two points in the reports used as a basis for this review. In particular, 
Peru wou ld be interested to know more about the customs policy changes implemented by the 
Republic of Korea following the ratification of the Trade Facilitation Agreement, in view of its 
forthcoming entry into force. Peru would also like to learn more about Korea' s policy to assist 
developing cou ntries with business process re -engineering for customs administration.  
4.240.   The Peruvian delegation has submitted some questions to the Republic of Korea in 
connection with these points. We thank Korea in advance for its replie s and wish it every success 
in this seventh review of its trade policies.  
MALAYSIA  
4.241.   Malaysia al so associates herself with the s tatement made by Singapore this morning on 
behalf of ASEAN.  
4.242.   Korea is a prime example of a developing country that has successfully  transformed itself 
to a high income nation through an open economy. This can be seen from the high ratio of its 
trade in goods and services to GDP, which stood at almost 85% in 2015.  
4.243.   In 2015,  we note that Korea was also affected by the global economic sl owdown as its 
regional neighbours and globally. We note that Korea 's GDP decreased from 3.3% to 2.7%. 
Nevertheless, Malaysia commends Korea in its economic recovery efforts through various reforms, 
while it remains committed to keep the market open along w ith trade liberalization.  
4.244.   Malaysia is pleased to note that Korea has been undertaking structural reforms in four 
major areas, namely public institutions, labour, finance and education, under the Three -Year Plan 
for Economic Innovation since 2014. The Creat ive Economy introduced by the Korean Government 
is an interesting strategic policy providing a foundation for SMEs to grow. As in many countries, WT/TPR/M/346 • Republic of Korea  
 
- 35 - 
 
  SMEs assumed an important role to the economy with some 99% of business establishments in 
Malaysia. Such innov ative efforts are something that Malaysia uses as a reference as we too 
nurture an enabling environment for our SMEs to grow.  
4.245.   At the multilat eral front, Korea is an active M ember of the WTO and a strong advocate of 
the multilateral trading system. In this regard, we joined others in applauding Korea for her 
contribution to the WTO Trade -related Technical Assistance (TRTA) and the Doha Development 
Agenda Global Trust F und (DDA GTF), that help other M embers fulfill their WTO obligations. We 
look forward to th e Korean 's continued efforts to increase inclusiveness in the WTO.  
4.246.   Malaysia welcomes Korea 's ratification of the Trade Facilitation Agreement, as well as her 
participation in the conclusion of the WTO Expanded Information Technology Agreement (ITA). On 
the WTO Post -Nairobi Work Program me, we join others in commending Korea for her tireless 
efforts to move the negotiations that we hope would deliver meaningful results for the MC11, 
outcomes that would have a positive impact on international trade.  
4.247.   At the reg ional level, the two countries are working closely with other regional partners to 
forge a deeper economic integration through the ASEAN -Korea Free Trade Agreement. Malaysia 
views ASEAN -Korea FTA as an important trade pact that has facilitated and enhanced  trade and 
investments in the region through the cooperation established. Continuous reviews of the living 
FTA in all areas ensure benefits to all parties as we further expand economic integration of the 
ASEAN plus 6 through RCEP, as was mentioned in our A SEAN statement.  
4.248.   Malaysia and Korea has enjoyed a strong economic and trade relations through the years. 
In 2015, Korea was Malaysia 's 8th largest trading partner with bil ateral trade valued at about 
US$14billion. Korea is Malaysia 's sixth largest foreign i nvestor in the manufacturing sector with 
appro ved investments amounting to US$ 316 million in over 20 approved projects.  
4.249.   Cooperation between Malaysia and Korea is further demonstrated through the Second 
Wave of Malays ia Look East Policy (LEP) 2.0. An Econom ic Cooperation Committee (ECC) has been 
established as a platform to discuss the implementation of this initiative particularly on the 
projects to be developed. This is the result of a close political and economic exchange at the 
highest level between both  countries.  
4.250.   For this Trade Policy Review, Malaysia thanks the Delegation of Korea response for the 
responses to our questions. Malaysia is interested on a number of the initiatives undertaken by 
Korea among others on Korea 's certification mark and the qual ity management of conformity 
assessment. We would welcome updates from Korea on the technical regulatory impact 
assessment (TRIA) which was introduced to review costs, advantages, impacts and compatibility of 
regulations in s comprehensive manner. We will be submitting additional questions feedback.  
4.251.   We wish to take this opportunity to express our t hanks to Ambassador Choi Kyong -Lim and 
his delegation for their close and constructive engagement here in Geneva.  
THE RUSSIAN  FEDERATION  
4.252.   The Russian Federation va lues its long lasting and friendly relations with the Republic of 
Korea, maintained systemically both bilaterally and regionally within various multilateral formats in 
the Asia -Pacific to advance our respective trade agendas. We appreciate deepening and de veloping 
trade and economic cooperation with the Republic of Korea, the 9th trade partner of Russia by 
volume which was over US$18 billion in 2015.  
4.253.   To illustrate our recent bilateral activities in this context, let me just note that the last 
meeting of th e Russia -Korea Joint Commission on Economic, Scientific and Technological 
Cooperation took place in August 2016 in Seoul and stimulated further development of our 
bilateral ties.  
4.254.   Furthermore, in early September this year , the Presidents of our two countri es met in 
Vladivostok on the sidelines of the second Eastern Economic Forum and discussed the ways to 
enhance trade and economic ties. One of the promising outcomes of these top -level negotiations WT/TPR/M/346 • Republic of Korea  
 
- 36 - 
 
  was a confirmation of joint interest of the parties to laun ch the Feasibility study to establish a free 
trade area between the Eurasian Economic Union and the Republic of Korea.  
4.255.   Russia shares an overall positive assessment of the economic policies pursued by the 
Republic of Korea. Seoul has managed to maintain a m acro-financial stability and ensure the 
resilience of its export -led economy during the recent four years. We appreciate the openness of 
the Korean economy to international trade, and its integration into the world economy and 
welcome the ongoing trade -related structural reforms aimed at productivity growth, the 
enhancement of domestic demand and further liberalization.  
4.256.   Prior to this TPR session Russia has submitted a number of questions to the Republic of 
Korea regarding amendments to foreign investment le gislation, government procurement, tariffs, 
RTAs, licensing, SPS and agriculture. We look forward to receiving the answers and intend to 
consider them thoroughly.  
TURKEY  
4.257.   South Korea has experienced a rapid and sustained economic growth and global 
integrati on to become a high -tech industrialized economy since the 1960s. Many factors have 
enabled Korea 's rapid change. However, the key amongst these were the building of an 
information infrastructure and harnessing the potential of science and technology. Count ry's 
development strategies have focused on achieving sustained productivity growth by consistently 
increasing the value -added of output. South Korea joined the trillion -dollar club of world 
economies in 2004. Turkey commends the economic development achie ved by South Korea at an 
unprecedented speed, in nearly half a century.  
4.258.   As referred to in the Secretariat report, the country 's relatively strong fundamentals and 
solid external buffers have helped maintain macro financial stability and ensure the resilien ce of its 
export -led economy. During the review period , the Korean economy has averaged 2.8% annual 
growth. This is a major downturn compared to the average of 4.4% over 2001 -2011. Some of the 
main reasons behind this downturn are slowdown in world trade a nd strong export competition 
from emerging economies. Prosperity concentrated in the highly competitive export -oriented 
conglomerates employing a small share of the population could also be enumerated among the 
reasons. However, we note with pleasure that the Korean authorities are cognizant of the 
challenging growth environment and put in place a number of measures to spur economic recovery 
accordingly.  
4.259.   Turkey notes with satisfaction that Korea, a G -20 member, has adopted the WTO -led trade 
liberalization a s the core principle of its trade policy. In addition, a strong advocate of the 
multilateral trading system under the WTO Korea contributes to the advancement of the remaining 
DDA negotiations and the "new issues " such as electronic commerce.  
4.260.   Moreover, I believe that trade and trade -related structural reforms undertaken by Korea 
during the review period would further enhance productivity and so the country 's international 
competitiveness. In this context, I wish to underline that according to the World Ban k's Doing 
Business 2016 report, Korea 's rank improved further from 8th in 2012, to 4th in 2016.  
4.261.   On the bilateral side, Turkey and Korea enjoy excellent political ties since the Korean War. 
I welcome the increasing cooperation between Turkey and Korea in i nternational fora, including 
the in the WTO, WIPO, G -20, and MIKTA.  
4.262.   Korea has been an important trade partner of Turkey in Asia especially for the last decade 
despite the long geographical distance between the two countries. The "Joint Declaration on the 
Establishment of a Strategic Partnership " signed in 2012 has upgraded bilateral relations between 
Turkey and Korea to the strategic partnership level. Furthermore, we concluded an "Agreement on 
Trade in Goods " with Korea which is in force since 1 May 2013.   
4.263.   I hope that agreements on services and on investment, which I believe will enable us 
further strengthen our trade and economic cooperation will follow the agreement on trade in 
goods.  WT/TPR/M/346 • Republic of Korea  
 
- 37 - 
 
  4.264.   Thanks to the Agreement on Trade in Goods, our bilateral trade volume  increased to 
US$8.1 billion in 2015, from US$6.2 billion in 2012. However, we think that the bilateral trade 
volume is still below its potential and there is a considerable trade deficit against Turkey. Turkey is 
ready to do its part in order to achieve t he real potential of our economies and ensure more 
balanced bilateral trade volume.   
4.265.   Turkish exports to Korea are mainly composed of electrical and electronic products, 
vehicles, machine, mineral fuels. The major items of imports are mineral fuels, electr ical and 
electronic products, machine, iron -steel. In addition, tourism started to become an important area 
of cooperation between our two countries. The number of Korean tourists visiting Turkey increases 
regularly from year to year. In 2014 about 250.000  Korean tourists visited Turkey. This marks a 
33% increase compared to the year before.   
4.266.   Before concluding, I would like to greet my friend Ambassador CHOI and his team in 
Geneva for their active participation, constructive approach and cooperation in the  WTO work and 
DDA negotiations and for the excellent relations between our two Missions.  
EL SALVADOR  
4.267.   As regards the substance of this review, we are struck by the Korean Government's 
"creative economy" policy, which has led to a series of reforms to genera te greater value added, 
more jobs and new growth engines through the convergence of people's creativity with science, 
technology and information and communication technology.  
4.268.   This policy also seeks to reverse the Korean economy's low growth trend since the  global 
financial crisis. We also note that the Korean Government has carried out trade related structural 
reforms that include rice tariffication, taxation and competition policy, in order to spur productivity 
growth.  
4.269.   We underscore the high ratio of inter national trade to GDP, which reached 84.8% in 2015.  
4.270.   At the bilateral level, diplomatic relations between the two countries were established in 
1962 and have been close ever since. El Salvador views Korea as a strategic trade and 
development partner, with w hich it has implemented a variety of programmes that have had a 
positive impact in key areas such as agriculture, security, education, health, youth and 
institutional development.  
4.271.   South Korea is the second largest destination of Salvadoran exports to the A sian continent, 
and bilateral trade is highly complementary. There has also been substantial investment in the 
textile and clothing industry, for example, amounting to US$26 million in the first quarter of 2015.  
4.272.   As regards bilateral trade, between 2013 and  2015 El Salvador exported sugar, green 
coffee, synthetic fibres, polyester yarn, footwear, overcoats and other clothing, and imported 
mainly flat rolled steel products, polyethylene inputs, vehicles and products of the chemical 
industries.  
4.273.   A further point  worthy of mention is that Central America and Korea are currently 
negotiating a free trade agreement, and the sixth round of negotiations took place recently. We 
have submitted questions from our capital concerning this review and thank the Korean delegat ion 
in advance for its replies.  
4.274.   At the multilateral level, we value Korea's strong commitment to the multilateral system 
and commend it for its efforts in upholding the interests of the developing countries in this 
Organization.  
4.275.   We hope to continue strengt hening bilateral ties with the Republic of Korea so as to 
increase the current level of trade, among other things, between our two countries.  
4.276.   I also take this opportunity to thank Ambassador Kyong Lim Choi and his team for their 
firm commitment to, and act ive participation in, the regular and special work of the WTO.  WT/TPR/M/346 • Republic of Korea  
 
- 38 - 
 
  PAKISTAN  
4.277.   During the period under review, Korea 's economic growth remains positive despite being 
slightly lower as compared to previous performances. We appreciate the stance taken by the 
Korean  Government to pursue its objective of a free and open economy based on market 
principles, despite the global economic downturn as well as many challenges faced by the country. 
The Korean Government undertook and implemented targeted reforms consisting of policies to 
boost the economy, to raise productivity, and promote inclusive growth.  
4.278.   We commend the progressive steps undertaken by the Korean Government such as the 
widening of the regional trade agreements, improvement of regulatory framework to facilitat e 
trade, the ratification of WTO TFA, the development of package of incentives and measures for 
Exporters, particularly incentives towards leveraging SMEs as to reduce the gap between SMEs and 
large Corporation.  
4.279.   OECD trade facilitation indicators performa nce for Korea has improved between 2012 and 
2015, its average trade facilitation scores stands at 1.6 against a scale of 2 which is the best 
performance that can be achieved. Korea has made remarkable improvement in the areas of 
information availability wh ere its TFI performance is at 1.88, higher than in many developed 
countries; in the areas of governance and impartiality, Korea TFI performance is at 2 which is the 
highest achievable. Its performances also improved in the areas of involvement of the trade  
community, simplification of documents, streamlining of border procedures, and external border 
agency cooperation.  
4.280.   The global connectivity of Korea is extremely impressive. Korea is one of the most digital 
savvy countries in the world. Korea has the faste st average internet speed. 2016 WEF Global IT 
report, ranked Korea at the 13th place out of 133 Countries for its Network Readiness Index. In 
2016, Korea is amongst the top 10 countries listed in the UN e -Government and e -participation 
Index, being ranked at the third and fourth place respectively. Korea is amongst the top ten 
countries and ranked at 7th place on the UNCTAD B2C E -commerce Index of 2016.  
4.281.   In one area, Pakistan and Korea face similar challenges, that is Gender Equality.  
4.282.   The WEF Global Gender  Gap report 2015 places Korea at 115 out of 145 countries. Korea 
performs exceptionally well in the dimensions of education and health, however political 
empowerment and economic opportunity dimension erodes its gender equality score.  
4.283.   Pakistan and Korea m aintain excellent bilateral and diplomatic relationships. A Korean 
Company built the first motorway of South Asia in Pakistan, it is a 400km, 6 lane limited access 
link between Islamabad and provincial capital Lahore. The Korean Aid Agency KOICA continues to 
support and assist Pakistan in the areas of economic and social development. Since 2008 Pakistani 
workforce in Korea is estimated to be around 5 '500 people and in 2016 the quota of Pakistani 
workforce allowed in Korea has increased.   
4.284.   Bilateral trade be tween the two countries stood at around US$1 b illion a year, a figure that 
is much below the existing bilateral trade potential between the two countries. In order to boost 
bilateral trade, a MoU was signed in April 2014, it was mutually agreed to work on the possibilities 
for Free Trade Agreement and subsequently a joint study was carried out for this purpose. The 
conclusion of the joint study is expected this year.   
4.285.   Recently, Korea and Pakistan signed a Framework Arrangement under which 
US$500  million is  being invested in hydropower, road infrastructure, improvement of power 
distribution system, information technology and health sector by Korea.  
4.286.   We commend the strong and active role played  by Korea at the WTO led by 
H.E Ambassador CHOI and his team. We w ould particularly highlight the area of technical 
assistance and capacity building for LDCs and developing countries where Korea is a major donor 
country to the DDA Global Trust Fund.  WT/TPR/M/346 • Republic of Korea  
 
- 39 - 
 
  KAZAKHSTAN  
4.287.   Kazakhstan congratulates the Republic of Korea for its econo mic performance during the 
period under review.  
4.288.   We note and commend the Republic of Korea for the implementation of the Three -Year 
Plan for Economic Innovation which was adopted in February 2014.  
4.289.   Kazakhstan and the Republic of Korea have strong diplomatic  and trade relations, based on 
more than 30 agreements covering cooperation in trade, investment and tax matters, science, 
technology and cultural issues.  
4.290.   Next year will mark the 25th anniversary of the establishment of diplomatic relations 
between Kazakh stan and the Republic of Korea. We are determined to further deepen and enhance 
our strategic cooperation.  
4.291.   The Republic of Korea is currently ranked as Kazakhstan 's 9th largest trading partner. In 
2015, the value of bilateral trade between the countries t otaled about US$1.4 billion.  
4.292.   In 2015 the Republic of Korea was the 9th most important destination for Kazakhstan 's 
export, which  consisted mainly of crude oil,  86% of the whole Kazakhstan 's export to the Republic 
of Korea, metals, while import from the Rep ublic of Korea were led by automobiles, electronics and 
equipment.   
4.293.   Kazakhstan and the Republic of Korea have been working actively to strengthen our trade 
and investment relations. Indeed, our countries have engaged in numerous discussions regarding 
the possibility of the two sides and I strongly believe that our bilateral trade volume does not 
represent the real potential and there is still a big room to further develop.  
4.294.   In particular, the joint committees for cooperation such as the Intergovernmental 
Commission on Trade -Economic and Scientific -Technical Cooperation, the Committee for Energy 
and Mineral Resources Cooperation, the Committee for Cultural Collaboration, the Business Council 
for Strategic Cooperation and the Kazakh -Korean technology cooperati on Center are successfully 
operating between our two countries.  
4.295.   Since 2005 , the Republic of Korea has invested about US$4.0 billion of foreign direct 
investment in Kazakhstan and belongs to Top 10 investors in Kazakhstan 's economy. In 2015 , 
investments fr om the Republic of Korea accounted for 2.7% of total foreign direct investment in 
Kazakhstan.  
4.296.   Up to day in Kazakhstan operate 429 enterprises with the participation of the Korean 
capital, involved in the energy and construction industries, the production of household appliances, 
food processing, manuf acturing and assembly of cars ( "Samsung C&T ", "LG Electronics ", "Dongil 
Highvill " and others).  
4.297.   To conclude, we wish to congratulate the Republic of Korea for its active participation in 
the multilateral tradin g system, its commitment to the negotiation process and the adoption of the 
Trade Facilitation Agreement, and its significant role in the ongoing trade negotiations in the 
Organization (the Information Technology Agreement (ITA) expansion negotiations, the  
negotiations for the Environmental Goods Agreement (EGA)).  
COSTA  RICA 
4.298.   The Republic of Korea is an important trading partner for Costa Rica, and the two countries 
share common interests and initiatives.  
4.299.   Overall trade between Costa Rica and Korea has increa sed substantially (by 123.1%) over 
the past ten years, with an average annual growth rate of 8.4% between 2005 and 2015. Costa 
Rica's exports to Korea rose by an average of 9.4% per year over the same period, while imports 
grew by 8.2%. Trade between the t wo countries was worth US$442.1 million in 2015, i.e. 12.6% WT/TPR/M/346 • Republic of Korea  
 
- 40 - 
 
  more than in 2014. This confirms that the two countries' markets have great potential for 
expansion and mutually beneficial interaction.  
4.300.   Our relationship with Korea has continued to flourish in ma ny areas. As regards trade, 
steps were taken at the beginning of 2015 to rekindle the negotiation of a free trade agreement 
between the Republic of Korea and Central America, a negotiating process that involves the entire 
region.  
4.301.   Since the negotiations wer e officially launched in June 2015, the parties have held six 
negotiating rounds in South Korea, El Salvador, the United States, Tegucigalpa and Managua. We 
are satisfied with the progress made and are confident that it will be possible to complete the 
process before the end of this year.  
4.302.   We emphasize the Korean economy's openness to international trade and the active role 
played by the country in the multilateral trading system.  
4.303.   Korea is involved, as is Costa Rica, in the expansion of the Information Techn ology 
Agreement, the negotiations for the Environmental Goods Agreement (EGA) and the Trade in 
Services Agreement (TISA). We also emphasize Korea's role in the WTO trade negotiations, in 
which we have shared positions as  members of the Friends of Anti -Dump ing Group.  
4.304.   Korea's interest and leadership in the highly topical issue of climate change is important to 
us, and our two countries recently tabled a joint proposal in the Trade and Environment 
Committee.  
4.305.   We would also like to raise a few points that emerge  from the reports prepared for this 
trade policy review.  
4.306.   First, we acknowledge Korea's sound macroeconomic management during the review 
period. Macroeconomic stability was maintained in spite of the slowdown in economic growth over 
the past four years.  
4.307.   Both inflation and unemployment are low, and despite the downturn in global trade, it is 
remarkable that Korea remains one the world's ten leading exporters and importers.  
4.308.   Among the measures adopted to promote greater economic growth, Korea has undertaken 
major structural reforms, such as those relating to the efficiency of public institutions, education, 
regulation and competition policy.  
4.309.   We agree with Korea that creativity can generate value added for the economy and 
become an engine of growth, along with ot her initiatives in the technology, science and 
communication fields. We are particularly interested in the impetus that is being given to the so 
called creative economy under the Three Year Plan for Economic Innovation.  
4.310.   This series of reforms and initiativ es will definitely contribute to further enhancement of 
the country's international competitiveness, which is already reflected in global indices such as the 
World Bank's ease of doing business index, with Korea ranking fourth, and Bloomberg's Global 
Innov ation Index, in which Korea receives the top score.  
4.311.   Unfortunately, the impact of these reforms has not extended to other spheres such as 
agriculture. There have clearly been a few positive changes such as the rice tarrification process, 
but there is still a high degree of state intervention in a sector where import tariffs are high in any 
case, as are the levels of domestic support. We therefore urge Korea to speed up reforms in this 
area. 
4.312.   Lastly we are pleased to note that the Korean Government plans to en courage greater 
energy efficiency and promote the use of renewable energy. It would be interesting to know 
whether Korea's energy policy contemplates fossil fuel subsidy reforms and whether Korea thinks 
that it may soon undergo the voluntary peer review pr ocess established by the G 20.  WT/TPR/M/346 • Republic of Korea  
 
- 41 - 
 
  MYANMAR  
4.313.   Myanmar aligns itself with the statements made by ASEAN and the LDCs.  
4.314.   We also welcome this Seventh Trade Policy Review of the Republic of Korea and have 
optimistic on trade and trade -related structural reforms of the  Republic of Korea in order to 
maintain macroeconomic stability and ensure the resilience of its export -oriented economy.  
4.315.   Myanmar and the Republic of Korea have established diplomatic relations since May 1975.  
4.316.   According to our record, the bilateral trade between Myanmar and the Republic of Korea 
were gradually increased. In the 2015 -2016 Fiscal Year, the two -way trade reached over 
US$656  million . We would like to see the continuation of this positive trend.  
4.317.   In terms of the Foreign Direct Investment in Myan mar, the current volume of investment 
from the Republic of Korea is US$3.49 billion  according to the F DI statistics published in 
June 2016.  
4.318.   The Republic of Korea is an important player of both the regional and multilateral trading 
systems. We are glad to note that the Republic of Korea has been supportive of the need to bring 
the current trade negotiations forward, including the DDA negotiations.  
4.319.   The delegation of Myanmar is pleased to convey our sincere thanks and appreciation to 
H.E. Mr . LEE Inho, Deputy  Minister for Trade, Ministry of Trade, Industry and Energy and his 
delegation for their constructive engagement throughout this S sventh TPR.   
THE PHILIPPINES  
4.320.   The Philippines would like to associate itself with the ASEAN statement recognizing the 
dynamic t rade rela tions between the ASEAN member S tates and the Republic of Korea.  
4.321.   The Republic of Korea was the Philippines ' 8th major trading partner, 7 th top export market 
and 7 th top import supplier in 2015. Among the top commodity exports of the Philippines to  Korea 
are digital monolithic integrated circuits, copper ores, and petroleum oils. While among the top 
imports of the Philippines from Korea are petroleum oils, light petroleum oils and preparations, and 
other digital monolithic integrated circuits.  
4.322.   In Ja nuary 2013, the Joint Commission for Trade and Economic Cooperation (JCTEC)  
between the Philippines and Korea was established to str engthen the bilateral trade and economic 
relations between our two countries. The JC TEC seeks to identify strategic partners hip initiatives in 
areas of mutual interest to ta ke advantage of the complemen tarities of our economies. We look 
forward to schedul ing the inaugural JCTEC meeting at a date mutually agreed upon by both sides.  
4.323.   The Philip pines recognizes Korea 's Three -Year P lan for  Economic Innovation which en abled 
their c ountry to recover from the low -growth tren d of the global economy and the fast -changing 
trade environment. It includes building an enabling environment fo r a cre ative economy, which 
highlights creativity as a centra l economic value, and generates jobs and growth engines through 
the convergence of p eople 's creativity with science and technology.  
4.324.   Further, we commend the establishments of Creative Economy Innovation Centers,  which 
served as stepping stones for t he growth of start -ups and small and medium en terprises (SMEs). 
We also acknowledge the Government 's regula tory reforms to reduce the burden of doing business 
through measures like the "cost-in, cost -out" system which offsets the cost of newly creating or 
reinforcing regula tions by abolishing or relaxing existing regulations. These reforms brought Korea 
at the 4th spot on the World Bank 's Doing Business list in 2015.  
VIET  NAM 
4.325.   It is our pleasure to associate oursel ves with the ASEAN joint s tatement.   WT/TPR/M/346 • Republic of Korea  
 
- 42 - 
 
  4.326.   It is delighted to know that from the previous trade policy review, Korea has maintained 
macroeconomic stability thanks to relatively strong fundamentals and solid buffers to external 
shocks.  
4.327.   We applaud Korea for what the country is doing now: seeking economic recovery from the 
global economic crisis through a creativ e economy and regulatory reform  and maintaining 
committed to open markets.   
4.328.   The WTO multilateral trade system has been beneficial to the economic development of all 
members including Korea and Viet  Nam. In return, the Korea has also contributed to the system 
by its dynamic, active and constructive engagement in all areas of negotiations. Viet Nam also 
congratulates the Korea for ratifying the Trade Facilitation Agreement in July last year and for it s 
continued support and promotion of the benefits of implementation of the Agreement to other 
WTO Members. I would like to commend Ambassador CHOI Kyonglim for his able leadership and 
important contribution to the WTO work.  
4.329.   Viet Nam -Korea trade relations h ave come to a new height with the conclusion and entry 
into force of the bilateral free trade agreement from December last year. We believe the FTA will 
help foster the political, economic and cultural relations between the two countries and deepen our 
strategic cooperative partnership.  
4.330.   Over the past few years, Korea has been one of the largest trading partners of Viet Nam. 
In 2015, two -way trade reached US$36.5 billion, up 26.5 % year-on-year, bringing Korea to 
become the third largest trading partner of V iet Nam.  
4.331.   In terms of investment, Korea has become Viet Nam 's biggest foreign investor with respect 
to both number of projects and investment capital since 2014.  
4.332.   To consolidate the relation, the two countries have engaged several bilateral agreements in 
cooperation, avoidance of double taxation and judicial assistance.  
4.333.   Despite positive signals with the continuous expansion of two -way trade, Viet Nam, in fact, 
continues to experience trade deficit with Korea. Therefore, we would highly appreciate if Korea 
can consider to:  
 Firstly, accelerate the risk assessment process with respect to Viet Nam 's high -quality fresh 
fruits such as logan, litchi and rambutan so that these fruits would soon be exported to 
Korea, meeting the demand of Korean people and improve l ife quality for Vietnamese 
farmers;  
 Secondly, carefully note the proposed application of new mechanism for the management of 
the list of plant protection products for oilseed crop and tropical fruits and vegetables. This is 
expected to affect directly the export of important export items from Viet Nam such as 
coffee, cashew nuts, and tropical fruits to Korea;  
 Thirdly, encourage Korean economic groups and corporations to bring Viet Nam 's agro -
fishery products, processed food and consumption goods into the d istribution system of 
these companies in Korea as well as in the world; and  
 Lastly, work with Viet Nam to complete the consultation process regarding the issue of 
tariffication for rice, which we believe will help ensure mutual benefits for both sides.  
4.334.   We acknowledge the important role that the Korea plays in the multilateral trading system. 
We look forward to further cooper ation with Korea on all fronts, bilaterally, regionally, and here at 
the WTO.  
4.335.   I would like to conclude this statement by putting on rec ord our high appreciation for the 
contribution to the system by wishing Korea every success in its economic and social development 
and the Korean delegation a fruitful trade policy review.  WT/TPR/M/346 • Republic of Korea  
 
- 43 - 
 
  SRI LANKA  
4.336.   My delegation highly appreciates Korea 's continued commi tment to the multilateral trading 
system and its active engagement in the negotiations in the WTO. We welcome Korea 's joining in 
the WTO Trade Facilitation Agreement in July 2015, becoming the 10th member to deposit its 
instrument of acceptance of the Agre ement. As a key player in the multilateral trading system, 
Korea plays a very important role in the WTO. The dynamic role played by Ambassador Kyong -lim 
Choi and his team in proactively engaging in ongoing activities of the WTO is highly commendable. 
We al so appreciate Korea 's valuable contribution to the Asia –Pacific Group of Developing Members 
which is currently coordinated by Sri Lanka.  
4.337.   Going through the reports by both the Republic of K orea as well as the WTO S ecretariat, 
my delegation noted wit h inter est the initiatives of "creative economy " which is the Korean 
Government 's central policy objective aiming at generating new added value, jobs and growth 
engines through the convergence of people 's creativity with science, technology and information 
and co mmunication technology. My delegation believes that Korea 's three year plan for economic 
innovation adopted in 2014 to create an enabling environment for a creative economy and 
conducting structural reforms in the areas of public institutions, labour, fina nce and education will 
ensure momentum for an economic recovery from the low -growth trend.  
4.338.   Let me briefly reflect on the historical close bilateral relations between Korea and 
Sri Lanka. The strong relationship between the two countries has grown steadily  over the time. 
The value of total trade turnover between the two c ountries has increased from US$255 Million in 
2004 to US$ 372 Million in 2015, registering an increase of around 46%. Korea was the 14th 
largest importer of Sri Lanka in 2015. Sri Lanka has signed a number of bi lateral agreements with 
Korea. The two countries concluded rounds of air services negotiations in expanding bilateral air 
transport arrangements in 2013. The republic of Korea has been one of the most important 
sources of foreign direct investment to Sri Lanka.  Sri Lanka - South Korea Bilateral Investment 
Treaty was signed in March 1980 and came into force in July  1980. At present there are 
116 Korean projects in operation in Sri Lanka under the purview of Board of Investment law. 
Sri Lanka and South Korea are members of the Asia Pacific Trade Agreement (APTA) which was 
signed in 1975 with the initiative of the ESCAP for promoting intra -regional trade through 
exchange of mutually agreed tariff co ncessions by member countries. Sri Lanka be ing one of the 
largest beneficiaries of the Korean International Cooperation Agency (KOICA), is thankful for the 
international development assistance of the Republic of Korea. Being the number one beneficiary 
in terms of the size of the quota for employmen t opportunities in Korea, Sri Lanka is thankful for 
the opportunities opened for Sri Lankan workers in Korea.  
LAO PDR 
4.339.   Allow me first to congratulate the Republic  of Korea for conducting their s eventh TPR 
exercise; we highly appreciate the effort put into t his exercise.  We would like to commend 
specifically Korea for their tremendous efforts over the past years to engage in numerous 
investment and business -friendly regulatory reforms, put in place to counter the overall backdrop 
of the world economy. In that  sense, the Republic of Korea represents an example to follow for 
many nations, including ours.  
4.340.   Regarding trade between the Korea  and Lao PDR, total merchandise trade between the two 
countries amounted to nearly US$ 200 million in 2015  with a largely positi ve trade balance for 
Korea. Despite this, the annual growth in value of Lao exports to Korea between 2011 and 2015 
reached 53%, whilst it stayed at 1% for imports. Exports of Lao products to Korea, w hich were 
valued in 2015 at US$ 28.4 million, c onsisted es sentially of fertiliz ers, wood charcoal, coffee as well 
as other raw commodities (lead, copper) and some articles of apparel. Leading imports from Korea 
are of more high value added nature, such as motor vehicles, engines and electrical machinery. 
Total im ports of Korean products represented US$ 170.3 million in 2015.  In sum, trade in goods 
between Lao PDR and the Republic of Korea increased by 20.1% in 5 years (from 2011 to 2015) at 
an annual average growth of 4.6%.  
4.341.   Our bilateral trade relations are governe d also by various preferential trade agreements 
such as the Asia -Pacific Trade Agreements (APTA), the ASEAN -Korea FTA (AKFTA) and the 
soon-to-be-concluded RCEP. Lao PDR also benefits from Korea 's LDC -specific preferential tariff WT/TPR/M/346 • Republic of Korea  
 
- 44 - 
 
  scheme, although we believe  that it would be highly beneficial for all LDCs to extend the coverage 
of duty -free lines. Indeed, they currently stand at 90.3% of total lines.  
4.342.   We hope that our fruitful trade and economic relationship with the Republic of Korea will 
grow further and st ronger. Lao PDR wishes every success to South Korea in its seventh Trade 
Policy Review.  WT/TPR/M/346 • Republic of Korea  
 
- 45 - 
 
  5  REPLIES BY THE REPRE SENTATIVE OF THE REPUBLIC OF KORE A AND ADDITIONAL 
COMMENTS  
5.1.  Thank you all for gathering once again for the second session of Korea 's seventh Trade P olicy 
Review.  
5.2.  I would like to express my sincere appreciation once again to Madam Chair, Her Excellency 
Irene Young, Permanent Representative of Hong Kong, China, and to the distinguished discussant, 
His Excellency Jonathan T. Fried, Ambassador of Canada.  
5.3.  I would like to extend special thanks to all representatives for the constructive comments and 
thoughtful insights you provided during the first day of the Review. Before I delve into details, I 
would like to reaffirm that we place great value on our glob al trade relations and are fully 
committed to continuously working toge ther with our trading partners.  
5.4.  Gathering from the observations offered during our first review session, we are pleased to 
give our Members today a comprehensive overview of Korea 's pos itions on the are as where 
questions were raised.  
5.5.  We were deeply gratified with all the acknowledgements and commendations from Members 
on Korea 's stable management of its macro economy, implementation of regulatory reforms and 
application of active market opening policies. We were further encouraged by Members ' 
recognition of our efforts in such areas as IPR, renewable energy, fossil fuel subsid ies in coal, 
among many others.  
5.6.  More specifically, the creative economy initiatives and the Three -Year Plan for Ec onomic 
Innovation were acknowledged highly by many Members. While we continue on with such policy 
efforts to revitalize our economy, we will also give closer attention to strengthening SMEs ' role an d 
promoting their competencies.  
5.7.  In customs clearance, Kore a will build on what we have achieved in the single window, 
customs valuation and de minimis  clearance, and bring further developments to other customs 
procedures, including international exchan ge of origin -related documents.  
5.8.  In the service sector producti vity, we will push forward the implementation of the Service 
Economy Development Plan announced in July 2016. Furthermore, Korea will continue to make an 
effort to increase FD I inflow in the service sector.  
5.9.  We do not doubt that we are moving in the right d irection in response to the current 
challenges we face, but there still remains much work to be done for more visible and concrete 
outcomes in a wide range of areas.  
5.10.   I would like to move into further details on some of the issues raised by Members. Let me 
start with the increase in the average applied MFN tariff rates during the review period. We would 
like to clarify that this not constitutes an actual increase in the tariff rate. Rather, it is the outcome 
of the insertion of sixteen (16) tariff lines for rice and rice products as well as the process of 
splitting the tariff lines with high rates while merging the tariff lin es with lower ones.  
5.11.   As for the flexible tariffs, Korea operates them only for limited purposes in case where a 
need arises to stabilize import prices as well  as domestic supply and demand.  
5.12.   With regard to confirmation of the revised concessions schedule for rice tariffication, we 
welcome bilateral consultations requested by a few Members and continue to further our 
discussions.  
5.13.   We also took  note of comments on Korea 's tariff -rate quotas (TRQ). The low fill ratio of TRQ 
is mainly due to products with low domestic demand, and not due to administration methods 
applied by the authorities. Excluding products with low domestic demand, the annual a verage fill 
rate rises to more than 80%. Let me note that Korea has also made efforts voluntarily to enhance 
transparency in TRQs administration in line with the Bali package concluded at MC -9 in 2013.  WT/TPR/M/346 • Republic of Korea  
 
- 46 - 
 
  5.14.   With regard to SPS, I would like to reaffirm that Kore a operate its SPS measures based on 
scientific evidence in compliance with the WTO SPS Agreement. We also put great emphasis on the 
fairness and predictability of the SPS measures by taking various perspectives from domestic and 
foreign stakeholders alike.  
5.15.   For instance, the new positive list system for Maximum Residue Limits is established firmly 
based on scientific evidence. Before introducing this standard, we held seminars and information 
sessions to collect opinions for six years from various stakeholde rs, including foreign Embassies in 
Korea and export and import businesses. We also faithfully observed our WTO notification 
requirement in 2014 with regard t o the relevant legal revisions.  
5.16.   Korea also took note that some Members raised concerns regarding ex port credits in the 
shipbuilding industry. Korea is prepared to take part in international discussions on export credits 
in shipbuilding through a variety of platforms, like the OECD Working Party on Shipbuilding. One 
more point we would like to make in th is area is that the Korea shipbuilding industry is currently 
going through restructuring, led by commercially based decisions of the credit ors of the concerned 
companies.  
5.17.   For the implementation of the ITA Expansion, domestic procedures are currently underw ay 
in Korea following the circulation and certification of our WTO schedule in September. Although 
uncertainty still remains with regard to how the Korean National Assembly 's ratification process 
would be carried out, we hope that the agreement could enter  into force wi thin this year at the 
earliest.  
5.18.   Korea is taking an active part in trade capacity -building activities for LDCs. In addition to 
duty free, quota -free (DFQF) market access for LDCs as well as the contribution to the WTO Global 
Trust Fund and the  Tier 1 projects of the Enhanced Integrated Framework, Korea also carries out 
capacity building and training program mes for G overnment officials from LDCs on food hygiene 
and safety, quarantine, trade facilita tion and customs modernization.  
5.19.   As Members emph asized on the first day of our review, we fully agree on the importance of 
fishery resources protection and sustainable fishing. In this regard, we are making efforts for the 
efficient operation of the Fishery Management System (FMS) for restraining overfi shing and raising 
the leve l of penalties for IUU fishing.  
5.20.   Korea believes that observing Members ' notification requirement to the WTO is central to 
enhancing transparency, which is the backbone of the multilateral trading system upheld by the 
WTO. Furthermo re, Korea has faithfully abided by its notification requirement to the WTO with 
very few exceptions. I want to assure you that notifications on those areas, including government 
procurement, export subsidies, and domestic support in agriculture, will be ma de in the earliest 
possible time.  
5.21.   It is my hope that Korea 's seventh TPR has served as a valuable opportunity for Members to 
enhance their understanding of Korea 's economic and trade policies. I would like to conclude my 
remarks by expressing my deepest ap preciation to all Members for the great support and interest 
we have re ceived throughout this process.  
5.22.   We are proud to have responded thoroughly to most of the questions raised, and for the 
remaining and following questions, I would like to refer you to th e written answers to be provided  
at the earliest time possible.  
5.23.   We will continue to make efforts for enhancing the multilateral system going forward, since 
we believe that by so doing, the benefits from the multilateral trading system will be more equally 
distribu ted and enjoyed by all Members.  
5.24.   I hope our work for Korea 's seventh TPR will contribute toward our collective goal of 
strengthening the multilateral trading system. Thank you.  WT/TPR/M/346 • Republic of Korea  
 
- 47 - 
 
  DISCUSSANT  
5.25.   Most of you are probably in the process of preparing the rep ort to your capitals and you will 
copy your Embassy  in Seoul  on the outcome of this  Review . If I was writing a report , I would start 
with our discussions which revealed a good deal of consensus , agreement and commendation.  
5.26.   First and foremost, tremendous co mmendation to the exceptional leadership shown by 
Ambassador Choi Kyong -Lim and his team here in Geneva on a n ongoing basis . That was 
unanimously expressed and it is something, I am sure, the Deputy Minister will take home with 
him as well.  
5.27.   Second, in cont ext, there was a broad acknowledgment that one of the great strengths that 
underlie Korea 's success is its macroeconomic management, the strength of its financial system 
and its budgetary situation, its current account, so on.  
5.28.   Third, you have a country tha t on record is deeply committed to a policy direction of 
continuing reforms . The Deputy Minister already highlighted some of them that you and your 
comments also identified, such as regarding energy, n ot only moving away from fossil  fuels but 
moving away f rom S tate to market  orientation. And overall, the Government's orientation is to 
innovation and moving to a creative economy. Leading example s are trade facilitation and customs 
modernization , and a country that so well integrates its plurilateral initiati ves with its commitment 
to the multilateral system.  
5.29.   If I was continuing with my report , I would try  to summarize and group some of the 
comments and questions, doubts and criticisms expressed by Members. Most prominent was along 
two axe s. The fist axis is t he distortions created and maintained in the Korean economy between 
large and small enterprises, the domination of large conglomerates and the constraints that it 
continues to put on SMEs  and on job creation as a result. The second axis is a conspicuous 
difference in the regulatory burdens carried and the emphasis put on government policy today on 
the goods side of the economy versus the services side of the eco nomy, s omething that is being 
addressed in the course of the policy reform but a very prominent d istortion in terms of the agility 
available to firms to respond to global environment.  
5.30.   I noted a  tremendous focus on agriculture -related policies ranging from SPS measures, the 
manner of their administration, whether transparent or not, the nature of the c onsultations 
undertaken in undertaking measures , and t he delay  in notifications which the Deputy Minister 
promised to address, being another example. These concerns are over and above the high average 
tariff and tariff rate quota administration in particul ar.  
5.31.   The agriculture basket of issues suggests a third set of concerns which , building on my 
earlier observations of goods versus services, large versus small, is a more general concern about 
continuing red tape. There are certainly continu ing opportunitie s to streamline , dealing with 
Government and doing business , despite Korea 's already very high ranking in global indices for 
ease of setting up and doing business.  
5.32.   It also points to a fourth area underlining some of these more specific concerns , which is 
state aid. To what extent do Government incentives  and the  regulations still leave room for trade 
distortion through certain preferences for certain categories of fir ms? I took careful note of the 
Deputy Minister's suggestion that the restructuring of the s hipbuilding industry is to set the sector 
on a commercial basis .  
5.33.   Finally, two other areas that drew Members ' attention where, again, the Deputy Minister 
responded and reassured u s. First, there is a Government commitment to do better government 
procuremen t where the remarkably low participation of foreign supplies an d suppliers runs 
intuitively counter to Korea's membership in the GPA and expanded GPA. Although not officially, 
under existing WTO disciplines, a number of Members highlighted caps in restrict ions on foreign 
investment in various specific sectors. We know that trade follows investment and investment 
follows trade and , to the extent  Korea can provide more liquidity, more competition, more 
participation in various sec tors through foreign investme nt, the more trade would follow and the 
more competitive the Korean industry in goods and services itself would be.  WT/TPR/M/346 • Republic of Korea  
 
- 48 - 
 
  5.34.   If I was writing my conclusion in my report, I would share the view of the Deputy Minister 
that this has been a remarkably positive assessme nt of a country that continues to be among the 
leading nations at the WTO. Your leadership shown  in bringing forward creative initiatives  in the 
lead-up to the last two Ministerial  and now through MIK TA and otherwise, promoting and 
stimulating discussion o n emerging issues is broadly recognized. The fact that Korea is now  the 
eleventh largest economy in the world , having moved up from the 16th in the last review , means 
you are going to be well within the top ten by the time you return for the next review. A ll of which 
is to say , I trust your delegation will go home taking very much broad blessing and 
encouragement from the membership here and endorsement of the Government that has , since 
2013, taken a direction to undertake policy reform almost like a marath on. You have people  along 
the side -line helping you to complete the tasks that remain and are still to be done.  
5.35.   I offer my very best wishes and my thanks for the privilege of being engaged with you as 
discussant. Thank you.  
THE SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU  
5.36.   First of all, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu wishes to 
thank the delegation of the Republic of Korea for the replies it has given to our written questions, 
as well as for its contributi on to this morning 's meeting and the exercise taking place this week 
which has been under preparation for several months.  
5.37.   My Government has carefully analyzed  the answers provided to our questions, we would like 
to take this opportunity to ask a few follow -up questions in the area of the Unfair Competition 
Prevention and Trade Secret Protection Act (the evidentiary effect of the trade secret certification) 
and the ICOP (Illegal Copyright Obstruction Program).  
5.38.   We submitted two additional questions to the Sec retariat, and we look forward to receiving 
the responses in due course.  
5.39.   We hope that this Trade Policy Review will have been an opportunity for the Republic of 
Korea to gather useful comments, and for the other WTO Members to gather observations on 
Korea 's trade policies and measures.  
5.40.   We (The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu) appreciate the 
efforts of the Permanent Mission of the Republic of Korea under the leadership of 
H.E. Mr. Ambassador Kyonglim CHOI . We also thank the d iscussant, H.E. Mr . Ambassador Fried, 
for his highly pertinent comments.  
EUROPEAN  UNION  
5.41.   The EU would like to tha nk delegation of the Republic of Korea for the replies it has provided 
to the EU 's questions. We have read the replies with great interest and we c onsider that this TPR 
has been very instructive. Nevertheless, we would like to highlight the need for more accuracy and 
details in the replies to some our questions.  
5.42.   Today, we would like to present some comments and observations on the review so far and 
also briefly present a few follow -up questions.  
5.43.   First of all, the statements we have heard on the first day of this review all recogniz ed the 
impressive economic development of Korea in the last few decades, as well as its strong 
commitment and contributi ons to the multilateral trading system. Korea 's economic resilience in a 
low growth world continues to be supported by a number of governmental policy initiatives and 
structural reforms to improve Korea 's competitiveness on the international scene.  
5.44.   While appreciating the cons iderable efforts of the Korean G overnment to facilitate further 
the access of foreign companies to its markets and to make Korea a more attractive place for 
foreign investors, a few challenges still persist - particularly in the areas of services, enforcement 
of intellectual property rights, government procurement, SOEs, subsidies, SPS measures and 
tariffication.  WT/TPR/M/346 • Republic of Korea  
 
- 49 - 
 
  5.45.   The EU encourages Korea to make further efforts towards increased transparency and take 
steps to further improve the busines s climate in Korea, including ensuring a level playing field for 
foreign companies, goods and services.  
5.46.   In order to have further clarification on some of the iss ues of interest for the EU, we have 
submitted a few follow -up questions. Notably, we are seekin g additional information on the recent 
developments in the Korean shipping and shipbuilding sectors, as well as regarding export 
subsidies and the individual consumption tax applicable to cars. We thank in advance Korea for 
providing replies to those quest ions within the established timeframe for this exercise.  
5.47.   Finally, on behalf of the EU, let me again express appreciation to the d elegation of the 
Republic of Korea for their contribution during this 7th Trade Policy Review. Thank you.  
UNITED  STATES  
5.48.   We sinc erely thank Deputy Minister Lee and Ambassador Fried for your perspectives this 
morning and we would like to express our appreciation to the entire delegation of Korea for its 
instructive and diligent efforts during this seventh Trade Policy Review.  
5.49.   We app reciate the summary of the discussions of the first day and the informative 
responses received from the Republic of Korea. And you may be glad to know that we actually 
have no follow -up questions at this time.  
5.50.   Thank you also for having raised questions of special importance for the United States on 
day one , such as documentation exchange . We will be glad to hear some comments on customs 
procedures , regulatory environment  reforms and aligning SPS measures  with science and 
international standards .  
5.51.   We also no ted very well some other themes of interest in this TPR discussion such as the 
innovation economy, protection of the agriculture sector, government procurement and the role of 
large conglomerates. Washington follows these and other issues with great intere st.  
5.52.   The Uni ted States very much appreciate  its strong relationship with Korea in trade and 
beyond. We are encouraged by its progress and its engagement in many bilateral, plurilateral and 
multilateral initiatives toward trade liberalization and capacity b uilding.  
5.53.   We look forward to continued cooperative work with our friends in Geneva and in many 
other venues. We congratulate the team on this successful TPR and wish everyone travelling back 
to capital a good journey.  
SINGAPORE  
5.54.   We join others in thanking th e Deputy Minister Lee and the delegation for all your hard 
work.  
5.55.   We just wanted to flag that Singapore has submitted one follow -up question with regard to 
imported pharmaceutical products. We hope that the Korean delegation will be able to respond to 
that question in due course.  WT/TPR/M/346 • Republic of Korea  
 
- 50 - 
 
  6  CONCLUDING REMARKS B Y THE CHAIRPERSON  
6.1.  This Trade Policy Review has provided a very good opportunity for Members to understand 
better recent developments in Korea 's trade policies and the challenges it faces. I would like to 
thank, once again, Deputy Minister Mr. Inho Lee, and his delegation for their constructive 
engagement throughout this exercise. I would also like to than k our d iscussant, Ambassador 
J. Fried, for his insightful remarks; and the 39 delegations which had taken the floor for their 
active participation.  
6.2.  During the discussion, Members appreciated Korea 's solid economic fundamentals and the 
increasingly important role it played in international trade. They saw remarkable resilience in 
Korea 's economy as it recovered fro m the 2008 financial crisis and continued to grow, albeit at a 
slower pace, amidst uncertainties in the global scene.  
6.3.  In this review, Members were informed that the Three -year Plan for Economic Innovation and 
the Creative Economic initiative were key stra tegies to keep up this momentum. They also heard 
from the delegation how Korea aimed to foster a more open and free economic system through 
attracting foreign investment and implementing public sector and regulatory reforms. Many 
commended Korea for its ef forts to keep its regulatory framework up -to-date, but they also saw 
room for improvement, for instance, in the registration, notification, licensing and approval 
requirements for foreign investment. Members noted that, despite promotion efforts and Korea 's 
high ranking in the World Bank 's ease -of-doing -business index, inward foreign direct investment 
remained much lower than the outflow. They encouraged Korea to reduce the various limitations 
and restrictions. They believed that this, together with more ef fective enforcement of the 
strengthened intellectual property rights legislation, would make investment in Korea a lot more 
attractive.  
6.4.  Another challenge that Members had observed was the productivity gap between the 
manufacturing and services sectors. Li ke investment, trade in services was seen as a key driver for 
future growth in Korea, and yet, services continued to be under -developed, and there was a lack 
of competition in major services activities. Some Members therefore encouraged Korea to 
implement productivity -enhancing reforms; and further open up its market, especially to activities 
currently subject to foreign ownership ceilings.  
6.5.  Productivity gap also existed between the large business conglomerates and SMEs. In the 
discussion, some Members highl ighted the need for Korea to provide appropriate support to SMEs, 
so that they could, inter alia , take advantage of new business opportunities resulting from bilateral 
and regional trade agreements.  
6.6.  In this connection, Members noted that Korea was rapidly expanding its network of 
preferential agreements, but they were at the same time pleased to see that Korea remained fully 
committed to the multilateral trading system. Many commended the country 's constructive 
participation in various aspects of WTO work s uch as trade negotiation and the discussion on 
electronic commerce. The significant progress that Korea had made in trade facilitation, including 
the ratification of the Trade Facilitation Agreement and the introduction of de minimis  customs 
clearance requ irements for online purchases, was also widely acknowledged. So was Korea 's good 
work in providing technical assistance to other WTO Members and contributing to the DDA Global 
Trust Fund.  
6.7.  Many Members recogniz ed Korea 's involvement in plurilateral initiati ves, as a party to the 
revised Agreement on Government Procurement, and as participant in other ongoing negotiations, 
such as that on the Environmental Goods Agreement. Some  Members  hoped to see Korea 
implementing swiftly the recently concluded Information  Technology Agreement. Some also 
expected more timely actions by Korea, both in the notifications of export subsidies and domestic 
support in agriculture; and in the certification and modification of its schedule of tariff 
commitments. Indeed, the tariff r egime as a whole was highlighted by many Members as an issue 
of concern. They asked Korea to simplify its customs tariff structure, reduce the rates, and phase 
out the less predictable flexible tariffs. Some Members also not ed the substantial rise in 
anti-dumping initiations and encouraged Korea to exercise restraint.  WT/TPR/M/346 • Republic of Korea  
 
- 51 - 
 
  6.8.  Several Members encou raged Korea to continue harmoniz ing its industrial standards with 
international ones. Concern was expressed over continued discrepancies between the SPS 
legislation, mult ilateral provisions and international standards. Some Members noted the 
authorities ' recent focus on food safety, citing for example the Special Act on Imported Food 
Safety Management, maximum residue limits, and the positive list system. They urged Korea to 
work constructively with all stakeholders in order to minimize potential disruptions to trade.  
6.9.  Some trade measures were seen to be highly protective of the agricultural sector, which 
Korea was encouraged to liberalize and reform. Korea was also urged t o ensure that its support to 
the fisheries sector did not undermine sustainability objectives or contribute to overcapacity and 
overfishing. Members looked forward to Korea taking a constructive stance in the negotiations on 
fisheries subsidies.  
6.10.   In the en ergy sector, SOEs continued to play a major role, and prices were often regulated. 
Some Members welcomed Korea 's decision to end support for coal production, i.e. fossil fuel 
subsidies, by 2020, thus reducing market distortions and improving the environmen t. They also 
enquired about the G overnment 's plans to increase the supply of green energy. Certain Members 
expressed concern about overcapacity in the shipbuilding market. They welcomed Korea 's initiative 
to restructure the industry. Concerns were also rai sed regarding incentives available to other 
manufacturing activities.  
6.11.   During this review, Korea received over 700 advance written questions, and has already 
responded to most of them. In a month 's time, Members should receive Korea 's replies to the 
outstan ding questions, which will then mark the successful conclusion of this TPR.  
6.12.   In his responding statement, Deputy Minister has not only addressed clearly all the key 
issues raised by Members, but  he has  also reassured Members that Korea places great value on  its 
global trade relations and will continue to make efforts to enhance the multilateral trading system. 
I hope that the delegation will take home useful food for thought, which can help Korea further 
develop its trade and economic policies, so that come the next TPR, Korea can showcase the 
further progress it has made in achieving its economic and social objectives.  
__________