WORLD TRADE  
ORGANIZATION   
G/STR/N/14/KOR 
14 September 2012 
 (12-4934) 
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 27 August 2012,  is being circulated at the request of the 
Delegation of the Republic of Korea.  
_______________ 
 
 
 Pursuant to Article XVII:4(a) of GATT 1994 and Paragraph 1 of the Understanding on the 
Interpretation of Article XVII, the Republic of Kor ea makes the following full and new notification of 
its state trading enterprises for 2010 and 2011 (G/STR/N/14).    
TABLE OF CONTENTS 
 
Page 
I.  MINISTRY FOR FOOD, AGRICULTURE, FORESTRY & FISHERIES, 
MIFAFF ........................................................................................................................ ............. 2  
II.  THE KOREA AGRO-FISHERIES & FOOD TRADE CORPORATION (aT) ................. 4  
 
 G/STR/N/14/KOR 
Page 2  
 
  I. MINISTRY FOR FOOD, AGRICULTURE, FORESTRY & FISHERIES, MIFAFF 
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 
1103.20.2000 
1104.19.1000 
1806.90.2290 Rice 1806.90.2999 
1901.20.1000 
1901.20.9000 
1901.90.9091 1901.90.9099 
 * HS 2002 is used.   
 
2.  Reason and Purpose  
 
(a) Reason or purpose for establishing and/or maintaining state trading enterprise 
  The MIFAFF has exclusive rights to the importati on of rice in order to avoid domestic market 
disturbances caused by a sudden influx of imported ri ce and to ensure a smooth implementation of the 
Uruguay Round commitments.    (b) Summary of legal basis for granting the releva nt exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers 
 
 Legal provision:  Articles 12 and 13 of the Grain Management Act.    
3.  Description of the Functioning of the State Trading Enterprise  
 
(a)  Summary statement providing overview of operations of state trading 
  Imports are conducted within the limit of quot as on rice as established in Korea's Country 
Schedule (C/S).    (b)  Specification of exclusive or special right s or privileges enjoyed by the state trading 
enterprise 
 
 The MIFAFF has the exclusive rights to the im portation of rice as established in Korea's C/S 
in accordance with the Grain Management Act.    (c) Type of entities other than the state tradi ng enterprise that are allowed to engage in 
importation/exportation and cond itions for participation   
 
 Not applicable.    (d)  How import/export levels are established by the state trading enterprise 
  Import in accordance with the tari ff quotas set in Korea's C/S.    G/STR/N/14/KOR 
 Page 3 
 
 
  (e)  How export prices are determined 
 
 Not applicable.    (f)  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 processi ng are determined by the MIFAFF based on 
import prices, management costs, domestic consumer prices, consumer preference and the level of 
demand of processing companies.    
 (g)  Whether long-term contracts are negotiated by the state trading enterprise or whether the state 
trading enterprise is used to fulfil contractua l obligations entered into by the government 
 
 Long-term contracts are not considered, and equal opportunities are provided to all parties 
interested in rice export.    (h)  Brief description of market structure 
  Farmers enter into government purchases for public stockholding or sell their crops at their 
liberty in private markets.   
 
4.  Statistical Information (see attached Tables I-III)  
 
(a)  Table I:  Statistical Information, Imports.   
 
(b) Table II:  Statistical Information, Exports.     Not applicable.    (c) Table III:  Statistical Information, Domestic Activities.   
 
5.  Reason why no foreign trade has taken place  
 
 Not applicable.    6.  Additional Information  
 
 Not applicable.    G/STR/N/14/KOR 
Page 4  
 
  II. THE KOREA AGRO-FISHERIES & FOOD TRADE CORPORATION (aT) 
1.  Description of Products Affected 
 
Products HS Number Products HS Number 
Genus Capsicum 0904.20.1000 
0904.20.2000 Soya beans 1201.00.9010 
1201.00.9090 
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 Ground Nuts 1202.10.0000 
1202.20.0000 2008.11.9000 
 
2.  Reason and Purpose  
 
(a)  Reason or purpose for establishing and/or maintaining state trading enterprise 
  The aT was established in 1967 under the Ag ro-Fisheries Marketing Corporation Act to 
stabilize the domestic market prices of agricultural and fishery products, promote exports, administer imports, improve marketing and foster 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 stabilize the domestic market and to ensure the smooth 
implementation of the UR commitments.    
  * The name of the Korea Agro-Fisheries and Food Trade Corporation (aT) was changed on 
26 January 2012 from 'Agricultural and Fi shery Marketing Corporation (AFMC)' 
 (b)  Summary of legal basis for granting the rele vant exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers 
 
 Legal provisions:  Articles 15 and 16 of the Agro-Fisheries Marketing and Price Stabilization 
Act/Articles 12, 13 and 13-2 of the Grain Management Act.    
3.  Description of the Functioning of the State Trading Enterprise  
 (a)  Summary statement providing overview of operations of state trading 
 
 The aT imports tariff quota quantity specified in Korea's C/S.    (b)  Specification of exclusive or special right s or privileges enjoyed by the state trading 
enterprise 
 
 Imports & sales of items subject to in-quota tariffs.     G/STR/N/14/KOR 
 Page 5 
 
 
  (c)  Type of entities other than the state trad ing enterprise that are allowed to engage in 
importation/exportation and c onditions for participation 
 
 For sesamum seeds, ginger, buckwheat, ground nuts and onion, private companies are allowed to import part of the quotas through open biddi ng.  Open bidding refers to a "public auction" 
where goods are sold to a participating company whic h offers the highest price during the auction.   
 (d)  How import/export levels are established by the state trading enterprise 
  Imports are carried out by an annual quota quan tity 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 chang es in domestic supply and demand.   
 (e)  How export prices are determined 
 
 Not applicable.   
 (f) How the resale prices of imported products are determined 
  The resale prices of imported products are dete rmined at the open auction, at a level above 
70 per cent of the wholesale prices,  depending on their quality.   
 
(g)  Whether long-term contracts are negotiated by the state trading enterprise or whether the state 
trading enterprise is used to fulfil contractua l obligations entered into by the government 
 
 Long-term contracts are not considered, and equal opportunities are granted to all countries 
concerned.   
 (h)  Brief description of market structure 
  Farmers generally sell crops at their will in private markets.    
 The products imported by the aT are either sold  directly by the aT or through an open bidding 
or a wholesale auction system.    
4.  Statistical Information (see attached Tables I-III)  
 (a)  Table I:  Statistical Information, Imports.   
 (b)  Table II:  Statistical Information, Exports.     Not applicable.    
(c) Table III:  Statistical Information, Domestic Activities.   
 
5.  Reason why no foreign trade has taken place  
 
 Not applicable.   
 
6.  Additional Information  
 
 Not applicable.     
  G/STR/N/14/KOR 
Page 6 TABLE I 
 
STATE TRADING:  MINISTRY FOR FOOD, AGRICULTURE, FORESTRY & FISHERIES 
 
STATISTICAL INFORMATION, IMPORTS 
 
    (unit:  mt, US$, US$/mt)  
Description of product(s) 
(including HS number(s)) Total quantity 
imported Quantity imported by 
state trading enterprisesAverage 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) 2010:  203,118 
2011:  207,920 2010:  203,118 
2011:  207,920 2010:     751 
2011:     786 2010:     503 
2011:          -     2010:  0 
2011:   - 
 2010:  4,295,413 
 2011:  4,224,019  Rice 
(1006.30.1000) 2010:    98,193 
2011:  104,297  2010:    98,193 
2011:  104,297  2010:     952 
2011:     888  2010:     651 
2011:          -  2010:  0 
2011:   -  
Rice 
(1006.30.2000) 2010:      1,000 
2011:      1,000  2010:      1,000 
2011:      1,000  2010:  1,120 
2011:     966  2010:  1,485 
2011:          -  2010:  0 
2011:   -  
Rice 
(1006.40.0000) 2010:    25,000 
2011:    34,441  2010:    25,000 
2011:    34,441  2010:     468 
2011:     506  2010:     226 
2011:          -  2010:  0 
2011:   -  
 
Note 1. Rice (Import amount, Impor t price):  Polished rice basis 
 2. Annual average of exchange rate:  2010:  W 1,156.26/$,  2011:  W 1,108.11/$ 
 3. Importation quota of rice for 2011 was filled by July of 2012, and the 2011 quota remains to be sold in the market.  
  
   G/STR/N/14/KOR
 Page 7TABLE III 
 
STATE TRADING:  MINISTRY FOR FOOD, AGRICULTURE, FORESTRY & FISHERIES 
 
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) 2010:        0 
2011:        0  2010:   4,295,413 
2011:   4,224,019  2010: 327,311 
2011:             -  2010:   4,698,000 
2011:   5,175,000  
 
 Note 1. Rice (Milled basis).   
   2. Importation quota of rice for 2011 was filled by July  of 2012, and the 2011 quota remains to be sold in the market.  
  G/STR/N/14/KOR 
Page 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$/mt) Avera ge representative 
domestic sales price 
(US$/mt) Mark up 
(US$/mt) National production 
1 2 3 4 5 6 7 
1.  Soya beans 
(1201.00.9010) 
(1201.00.9090) 2010: 265,439 
2011: 326,374 2010: 224,015 
2011: 279,718 2010:      647 
2011:      796 2010:       919 
2011:       994 2010:      272 
2011:      198 2010: 105,345 
2011: 129,394 
2.  Small red beans 
(0713.32.9000) 2010:   25,794 
2011:   25,508 2010:   18,000 
2011:   22,000 2010:   1,357 
2011:   1,167 2010:    1,545 
2011:    1,757 2010:      188 
2011:      590 2010:      4,561 
2011:      3,896 
3. Green beans 
(0713.31.9000) 2010:     6,072 
        2011:     5,223 2010:     3,000 
        2011:     4,000 2010:   1,817 
2011:   2,100 2010:    4,133 
2011:    2,936 2010:   2,316 
2011:      836 2010:      1,543 
2011:      1,644 
4.  Buckwheat 
(1008.10.0000) 2010:     1,829 
        2011:     2,456 2010:        828 
        2011:        828 2010:      612 
2011:   1,240 2010:    1,794 
2011:    2,623 2010:   1,182 
2011:   1,383 2010:      1,954 
2011:      1,317 
5.  Genus Capsicum 
(0904.20.1000) 
(0904.20.2000) 2010:     9,671 
        2011:   16,702 2010:     5,585 
        2011:   13,092 2010:   2,658 
2011:   2,933 2010:    6,018 
2011:    5,676 2010:    3,360 
2011:    2,743 2010:    95,391 
2011:    77,110 
 
 Note 1.  Annual average of exchange rate:   2010: W 1,156.26/$,  2011: W 1,108.11/$  
   G/STR/N/14/KOR
 Page 9TABLE I 
 
STATE TRADING:  AGRICULTURAL 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 
6.  Garlic 
(0703.20.1000) 
(0703.20.9000) (0712.90.1000) 2010:  26,565 
        2011:  38,415 2010:  24,339 
        2011:  26,467 2010:   2,353 
2011:   1,480 2010:    2,433 
2011:    2,213 2010:          80 
2011:        733 2010:     271,560 
2011:     295,002 
7.  Onions 
(0703.10.1000) 
(0712.20.0000) 2010:  32,846 
        2011:  28,871 2010:  11,979 
        2011:  10,644 2010:      274 
2011:      103 2010:       301 
2011:       461 2010:          27 
2011:        358 2010:  1,411,646 
2011:  1,520,016 
8.  Ginger 
(0910.10.1000) 
(0910.10.2000) 2010:    8,977 
        2011:    4,564 2010:       500 
        2011:       500 2010:   1,297 
2011:      757 2010:    4,191 
2011:    2,777 2010:     2,894 
2011:     2,020 2010:       24,969 
2011:       26,603 
9.  Sesamum seeds  
(1207.40.0000) 2010:  75,617 
        2011:  76,530 2010:  45,087 
        2011:  42,966 2010:   1,315 
2011:   1,284 2010:    3,806 
2011:    3,164 2010:     2,491 
2011:     1,880 2010:       12,703 
2011:         9,515 
10. Ground nuts 
(1202.10.0000) 
(1202.20.0000) 
(2008.11.9000) 2010:  28,693 
        2011:  28,875 2010:       455 
        2011:       700 2010:   1,629 
2011:   2,054 2010:           0 
2011:    2,949 2010:            0 
2011:        895 2010:       13,991 
2011:       10,836 
 
Note 1. The quota of ground nuts for 2010 was implemented at the end of 2010 and carried forward to 2011. 
  
  G/STR/N/14/KOR 
Page 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 
(1201.00.9010) 
(1201.00.9090) 2010:     0 
2011:     0 2010:  105,345 
                2011:  129,394 2010:  228,141 
        2011:  248,244 2010:  370,784 
        2011:  455,768 
2.  Small red beans 
(0713.32.9000) 2010:     0 
2011:     0 2010:      4,561 
                2011:      3,896 2010:    17,776 
        2011:    19,956 2010:    30,355 
        2011:    29,404 
3.  Green beans 
(0713.31.9000) 2010:    0 
2011:    0 2010:      1,543 
                2011:      1,644 2010:         894 
        2011:      5,086 2010:      7,615 
        2011:      6,867 
4.  Buck wheat 
(1008.10.0000) 2010:   76 
2011: 291 2010:      1,954 
                2011:      1,317 2010:        842 
        2011:        885 2010:      3,783 
        2011:      2,456 
5.  Genus Capsicum 
(0904.20.1000) 
(0904.20.2000) 2010:     0 
2011:     0 2010:    95,391 
                2011:    77,110 2010:      5,057 
        2011:    11,542 2010:  171,000 
        2011:  194,000 
  
   G/STR/N/14/KOR
 Page 11TABLE 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 
6.  Garlic 
(0703.20.1000) 
(0703.20.9000) (0712.90.1000) 2010:    3,185 
                2011:    3,366 2010:     271,560 
                2011:     295,002 2010:    22,722 
        2011:    35,121 2010:      354,000 
        2011:      380,000 
7.  Onions 
(0703.10.1000) 
(0712.20.0000) 2010:           0 
2011:           0 2010:  1,411,646 
                2011:  1,520,016 2010:    13,327 
        2011:    15,380 2010:   1,444,000 
        2011:   1,550,000 
8.  Ginger  
(0910.10.1000) 
(0910.10.2000) 2010:           0 
2011:           0 2010:       24,969 
                2011:       26,603 2010:         500 
        2011:         500 2010:        33,946 
        2011:        31,167 
9.  Sesamum seeds 
(1207.40.0000) 2010:           0 
2011:           0 2010:       12,703 
                2011:         9,515 2010:    43,518 
        2011:    43,765 2010:        87,000 
        2011:        86,045 
10. Ground nuts 
(1202.10.0000) 
(1202.20.0000) 
(2008.11.9000) 2010:           0 
2011:           0 2010:       13,991 
2011:       10,836 2010:             0 
        2011:         454 2010:        38,400 
        2011:        39,729 
 
 Note Domestic Purchase by STE:  including amount pur chased from farmers, and came from North Korea etc.   
 
 
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