G/STR/N/15/KOR
17 October 2014
(14-5715)  Page: 1/11
Working Party on State Trading Enterprises  Original: English
 
 STATE TRADING 
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVII:4(A) OF THE  
GATT 1994 AND PARAGRAPH 1 OF THE UNDERSTANDING ON  
THE INTERPRETATION OF ARTICLE XVII 
REPUBLIC OF KOREA 
The following communication, dated 7 October 2014, is being circulated at the request of the 
Delegation of the Republic of Korea. 
 
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Pursuant to Article XVII:4(a) of GATT 1994 an d Paragraph 1 of the Understanding on the 
Interpretation of Article XVII, the Republic of Kore a makes the following full and new notification of 
its state trading enterprises for 2012 and 2013 (G/STR/N/15). 
  
TABLE OF CONTENTS 
 
Page 
1   MINISTRY OF AGRICULTURE, F OOD AND RURAL AFFA IRS, MAFRA ............................. 2  
2   THE KOREA AGRO-FIS HERIES & FOOD TRADE CORPORATION (AT) ............................ 4  
 G/STR/N/15/KOR 
 
- 2 - 
 
  1  MINISTRY OF AGRICULTURE, FOOD AND RURAL AFFAIRS, MAFRA 
1.1  Description of Products Affected 
Products HS number* Products HS number* 
Rice 1006.10.0000 
1006.20.1000 
1006.20.2000 
1006.30.1000 1006.30.2000 1006.40.0000 1102.90.2000 1103.19.3000 Rice 1103.20.2000 
1104.19.1000 
1806.90.2290 
1806.90.2999 1901.20.1000 1901.20.9000 1901.90.9091 1901.90.9099 
 
1.2  Reason and Purpose 
1.2.1  Reason or purpose for establishing and/or maintaining state trading enterprise 
The MAFRA has exclusive rights to the importation of rice in order to avoid domestic market 
disturbances caused by a sudden influx of imported  rice and to ensure a smooth implementation of 
the Uruguay Round commitments.  
1.2.2  Summary of legal basis for granting th e relevant exclusive or special rights or 
privileges, including legal provisions and summa ry of statutory or constitutional powers 
Legal provision: Articles 12 and 13 of the Grain Management Act. 
 
1.3  Description of the Functionin g of the State Trading Enterprise 
1.3.1  Summary statement providing over view of operations of state trading 
Imports are conducted within the limit of quotas on rice as established in Korea's Country 
Schedule (C/S). 
 1.3.2  Specification of exclus ive or special rights or privileges enjoyed by the state 
trading enterprise 
The MAFRA has the exclusive rights to the importation of rice as established in Korea's C/S in 
accordance with the Grain Management Act. 
 
1.3.3  Type of entities other than the state trading enterprise that are allowed to engage 
in importation/exportation and conditions for participation 
Not applicable. G/STR/N/15/KOR 
 
- 3 - 
 
  1.3.4  How import/export levels are esta blished by the state trading enterprise 
Import in accordance with the tariff quotas set in Korea's C/S. 
 1.3.5  How export prices are determined 
Not applicable. 
 1.3.6  How the resale prices of imported products are determined 
The domestic sales prices of rice for household use are determined by open auction. 
 The domestic sales prices of rice for processing are determined by the MAFRA based on import prices, management costs, domestic consumer prices, consumer preference and the level of 
demand of processing companies. 
 1.3.7  Whether long-term contracts are negoti ated by the state trading enterprise or 
whether the state trading enterprise is used to  fulfill contractual obligations entered into 
by the government 
Long-term contracts are not considered, and equal opportunities are provided to all parties 
interested in rice export. 
 1.3.8  Brief description of market structure 
Farmers enter into government purchases for public stockholding or sell their crops at their liberty 
in private markets. 
 1.4   Statistical Information (see attached Tables I-III) 
1.4.1  Table I: Statisti cal Information, Imports 
1.4.2  Table II: Statistical Information, Exports Not applicable. 
 
1.4.3  Table III: Statistical Info rmation, Domestic Activities 
1.5  Reason why no foreign trade has taken place Not applicable. 
 
1.6  Additional Information 
Not applicable. 
 G/STR/N/15/KOR 
 
- 4 - 
 
  2  THE KOREA AGRO-FISHERIES & FOOD TRADE CORPORATION (AT) 
2.1  Description of Products Affected 
Products HS Number Products HS Number 
Genus Capsicum 0904.20.1000 
0904.20.2000 Soya beans 1201.90.3000 
1201.90.9000 
Garlic 0703.20.1000 
0703.20.9000 0712.90.1000 Green beans 
Small red beans 0713.31.9000 
0713.32.9000 
Onions 0703.10.1000 
0712.20.0000 Buckwheat 1008.10.0000 
Sesamum seeds 1207.40.0000 Ginger 0910.10.0000 
0910.10.2000 
 
2.2  Reason and Purpose 
2.2.1  Reason or purpose for establishing and/or maintaining state trading enterprise 
The aT was established in 1967 under the Agro-Fisheries Marketing Corporation Act to stabilize the 
domestic market prices of agricultural and fishery products, promote exports, administer imports, 
improve marketing and fost er the food industry. 
 
The aT is designated as an import agency to administer tariff quotas on relevant items (small red 
beans, buck wheat, etc.) in order to stabiliz e the domestic market and to ensure the smooth 
implementation of the UR commitments.  
2.2.2  Summary of legal basis for granting th e relevant exclusive or special rights or 
privileges, including legal provisions and summa ry of statutory or constitutional powers 
Legal provision: Article 15 and 16 of the Agro-Fisheries Marketing and Price Stabilization 
Act/Articles 12, 13 and 13-2 of the Grain Management Act. 
 2.3  Description of the Functionin g of the State Trading Enterprise 
2.3.1  Summary statement providing over view of operations of state trading 
The aT imports tariff quota quantity specified in Korea's C/S. 
 2.3.2  Specification of exclus ive or special rights or privileges enjoyed by the state 
trading enterprise 
Imports & sales of items subject to in-quota tariffs. 
 
2.3.3  Type of entities other than the state trading enterprise that are allowed to engage 
in importation/exportation and conditions for participation 
For sesamum seeds, ginger, buckwheat, onion, garlic, green beans, small red beans and soya 
beans, private companies are allowed to import part of the quotas through open bidding. Open G/STR/N/15/KOR 
 
- 5 - 
 
  bidding refers to a "public auction" where goods are sold to a participating company which offers 
the highest price during the auction.  2.3.4  How import/export levels are esta blished by the state trading enterprise 
Imports are carried out by an annual quota quantity as set in Korea's C/S, and certain items (small 
red beans, soybeans, sesamum seeds, etc.) are imported by more than the specified quantity in Korea's C/S, depending on the changes in domestic supply and demand. 
 
2.3.5  How export prices are determined 
Not applicable. 
 
2.3.6  How the resale prices of imported products are determined 
The resale prices of imported products are determined at the open auction, at a level above 70% 
of the wholesale prices, depending on their quality. 
 
2.3.7  Whether long-term contracts are negoti ated by the state trading enterprise or 
whether the state trading enterprise is used to  fulfill contractual obligations entered into 
by the government 
Long-term contracts are not considered, and equal opportunities are granted to all countries 
concerned.  
2.3.8  Brief description of market structure 
Farmers generally sell crops at their will in private markets. 
 
The products imported by the aT are either sold di rectly by the aT or through an open bidding or a 
wholesale auction system.  
2.4  Statistical Information (see attached Tables I-III) 
2.4.1  Table I: Statisti cal Information, Imports 
2.4.2  Table II: Statistical Information, Exports Not applicable. 
 
2.4.3  Table III: Statistical Info rmation, Domestic Activities 
2.5  Reason why no foreign trade has taken place 
Not applicable. 
 2.6  Additional Information 
Not applicable.
  
  G/STR/N/15/KOR
 
- 6 - TABLE I 
STATE TRADING: MINISTRY OF AGRICULTURE, FOOD AND RURAL AFFAIRS 
STATISTICAL INFORMATION, IMPORTS  
(unit: mt, US$, US$/mt)  
Description of 
product(s) 
(including HS 
number(s)) Total quantity 
imported Quantity imported 
by state trading 
enterprises Average import 
price 
(US$/mt) Average 
representative 
domestic sales 
price 
(US$/mt) Mark-up 
(US$/mt) National 
production 
1 2 3 4 5 6 7 
Rice (1006.20.1000) '12: 221,606 
'13: 268,848 '12: 221,606 
'13: 268,848 '12: 741 
'13: 708 '12: 594 
'13: 612  '12: 0 
'13: 0 
'12:4,006,185 
'13:4,230,011 Rice (1006.30.1000) '12: 110,401 
'13: 116,505 '12: 110,401 
'13: 116,505 '12: 854 
'13: 824 '12: 1,302 
'13: 1,395 '12: 448 
'13: 571 
Rice (1006.30.2000) '12: 0 
'13: 3,000 '12: 0 
'13: 3,000 '12: 0 
'13: 1,018 '12: 0 
'13: - '12: 0 
'13: - 
Rice (1006.40.0000) '12: 36,000 
'13: 0 '12: 36,000 
'13: 0 '12: 390 
'13: 0 '12: 297 
'13: 0 '12: 0 
'13: 0 
Note: 1. Rice (Import amount, Import price): Polished rice basis. 
2. Annual average of exchange rate: '12: W 1,126.88/$, '13: W 1,095.04/$. 
3. Importation quotas of rice for 2011 and 2012 were filled by June 2012 and May 2013 respectively. 4. Rice (1006.30.2000) among 2013 quota remains to be sold in the market.  
  G/STR/N/15/KOR
 
- 7 - TABLE III 
STATE TRADING: MINISTRY OF AGRICULTURE, FOOD AND RURAL AFFAIRS 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
(unit: mt) 
Description of product(s) 
(including HS number(s)) Domestic purchase by state 
trading enterprises National production Domestic sales by state 
trading enterprise National consumption 
1 2 3 4 5 
Rice 
(1006.20.1000) (1006.30.1000) (1006.30.2000) (1006.40.0000) '12: 0 
'13: 0 '12: 4,006,185 
'13: 4,230,011 '12: 227,000 
'13: 178,500 '12: 4,882,833 
'13: 4,491,158 
Note: 1. Rice: Polished rice basis.  
  G/STR/N/15/KOR
 
- 8 - TABLE I 
STATE TRADING: KOREA AGRO-FISHERIES & FOOD TRADE CORPORATION (AT) 
STATISTICAL INFORMATION, IMPORTS 
(unit: mt, US$, US$/mt) 
Description of 
product(s) 
(including HS 
number(s)) Total quantity 
imported Quantity imported 
by state trading 
enterprise Average import 
price 
(US$/mt) Average 
representative 
domestic sales 
price (US$/mt) Mark up 
(US$/mt) National 
production 
1 2 3 4 5 6 7 
1. Soya beans (1201.90.3000) (1201.90.9000) '12: 284,684 
'13: 294,710 '12: 282,724 
'13: 286,511 '12: 854 
'13: 926 '12: 1,667 
'13: 1,572 '12: 813 
'13: 646 '12: 122,519 
'13: 154,067 
2. Small red beans (0713.32.9000) '12: 24,500 
'13: 24,623 '12: 24,500 
'13: 24,000 '12: 1,344 
'13: 1,568 '12: 1,809 
'13: 1,846 '12: 465 
'13: 278 '12: 4,563 
'13: 7,628 
3. Green beans 
(0713.31.9000) '12: 4,000 
'13: 6,500 '12: 4,000 
'13: 5,000 '12: 1,508 
'13: 1,650 '12: 3,795 
'13: 4,311 '12: 2,287 
'13: 2,661 '12: 1,885 
'13: 2,345 
4. Buckwheat 
(1008.10.0000) '12: 1,328 
'13: 1,268 '12: 828 
'13: 828 '12: 660 
'13: 562 '12: 1,648 
'13: 1,818 '12: 988 
'13: 1,256 '12: 2,512 
'13: 1,923 
5. Genus Capsicum (0904.20.1000) (0904.20.2000) '12: 9,548 
'13: 1,691 '12: 1,971 
'13: 440 '12: 5,067 
'13: 4,629 '12: 5,482 
'13: - '12: 415 
'13: - '12: 104,146 
'13: 117,816  
  G/STR/N/15/KOR
 
- 9 - Description of 
product(s) 
(including HS 
number(s)) Total quantity 
imported Quantity imported 
by state trading 
enterprise Average import 
price 
(US$/mt) Average 
representative 
domestic sales 
price (US$/mt) Mark up 
(US$/mt) National 
production 
1 2 3 4 5 6 7 
6. Garlic (0703.20.1000) (0703.20.9000) (0712.90.1000) '12: 13,167 
'13: 1,064 '12: 13,167 
'13: 324 '12: 1,724 
'13: 5,100 '12: 2,275 
'13: 2,856 '12: 551 
'13: 0 '12: 339,133 
'13: 412,250 
7. Onions (0703.10.1000) (0712.20.0000) '12: 39,709 
'13: 42,112 '12: 0 
'13: 4,140 '12: - 
'13: 1,308 '12: - 
'13: 1,443 '12: - 
'13: 135 '12: 1,195,737 
'13: 1,294,004 
8. Ginger (0910.10.1000) (0910.10.2000) '12: 1,812 
'13: 1,780 '12: 500 
'13: 0 '12: 840 
'13: - '12: 2,166 
'13: - '12: 1,326 
'13: - '12: 21,513 
'13: 24,549 
9. Sesamum seeds  (1207.40.0000) '12: 80,758 
'13: 71,453 '12: 47,629 
'13: 35,316 '12: 2,207 
'13: 3,287 '12: 3,234 
'13: 3,687 '12: 1,027 
'13: 400 '12: 9,690 
'13: 12,392 
Note 1. Annual average of exchange ra te: '12: W 1,126.88/$,  '13: W 1,095.04/$. 
2. Onions: Statistical data for 2012 cannot be calculated because the import rights auction system was used.  Genus Capsicum among 2013 quota remains to be sold. 3. Ginger: Statistical data for 2013 isn't available because the TRQ administration method was changed to imports rights auctio n in 2013. 
  
  G/STR/N/15/KOR
 
- 10 - TABLE III 
STATE TRADING: KOREA AGRO-FISHERIES & FOOD TRADE CORPORATION (AT) 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
(unit: mt) 
Description of product(s) 
(including HS number(s)) Domestic purchases by 
state trading enterprise National 
Production Domestic sales by state 
trading enterprise National consumption 
1 2 3 4 5 
1. Soya beans 
(1201.90.3000) (1201.90.9000) '12: 0 
'13: 8,944 '12: 122,519 
'13: 154,067 '12: 301,000 
'13: 272,433 '12: 420,000 
'13: 421,000 
2. Small red beans (0713.32.9000) '12: 0 
'13: 0 '12: 4,585 
'13: 7,628  '12: 23,673 
'13: 24,571 '12: 29,000 
'13: 32,000 
3. Green beans (0713.31.9000) '12: 0 
'13: 0 '12: 1,885 
'13: 2,345 '12: 4,490 
'13: 3,873 '12: 6,000 
'13: 9,000 
4. Buck wheat (1008.10.0000) '12: 118 
'13: 222 '12: 2,512 
'13: 1,923 '12: 824 
'13: 823 '12: 4,500 
'13: 4,400 
5. Genus Capsicum (0904.20.1000) (0904.20.2000) '12: 1,639 
'13: 6,099 '12: 104,146 
'13: 117,816 '12: 4,020 
'13: 0 '12: 177,000 
'13: 202,000  
  G/STR/N/15/KOR
 
- 11 - Description of product(s) 
(including HS number(s)) Domestic purchases by 
state trading enterprise National 
Production Domestic sales by state 
trading enterprise National consumption 
1 2 3 4 5 
6. Garlic 
(0703.20.1000) (0703.20.9000) (0712.90.1000) '12: 3,486 
'13: 12,363 '12: 339,113 
'13: 412,250 '12: 22,586 
'13: 3,017 '12: 390,000 
'13: 442,000 
7. Onions (0703.10.1000) (0712.20.0000) '12: 0 
'13: 0 '12: 1,195,737 
'13: 1,294,009 '12: 0 
'13: 3,734 '12: 1,367,000 
'13: 1,375,000 
8. Ginger (0910.10.1000) (0910.10.2000) '12: 0 
'13: 0 '12: 21,513 
'13: 24,549 '12: 499 
'13: 0 '12: 31,144 
'13: 28,688 
9. Sesamum seeds (1207.40.0000) '12: 0 
'13: 0 '12: 9,690 
'13: 12,392 '12: 44,451 
'13: 36,098 '12: 88,700 
'13: 87,500 
Note: 1.  Annual average of exchange rate: ' 12: W 1,126.88/$, ' 13: W 1,095.04/$. 
 
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