G/STR/N/16/KOR  
 
14 July 2016  
(16-3778)  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 8 July 2016, is being circulated at the request of the 
Delegation of the Republic of Korea. 
 
_______________ 
 
 
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 2014 and 2015 (G/STR/N/16). 
  
TABLE OF CONTENTS 
 
Page 
Ministry of Agriculture, Food and Rural Affairs, MAFRA .................................................... 2  
The Korea Agro-Fisheries & Food  Trade Corporation (aT) ................................................ 6  
 G/STR/N/16/KOR 
 
- 2 - 
 
  I. ENUMERATION OF STATE TRADING ENTERPRISES 
A. Identification of State Trading Enterprises Ministry of Agriculture, Food and Rural Affairs, MAFRA 
 
B. 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 
II. REASON AND PURPOSE 
A. 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.    
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.  
III 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 quotas on rice as established in Korea's Country 
Schedule (C/S).   
B. Specification of exclusive or special righ ts 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.   
 C. Type of entities other than the state trading enterprise that are allowed to engage in 
importation/exportation and conditions for participation   
 Not applicable. 
 
D. How import/export levels are established by the state trading enterprise  Import in accordance with the tariff quotas set in Korea's C/S.  
 
E. How export prices are determined  
Not applicable.  
 G/STR/N/16/KOR 
 
- 3 - 
 
  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 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. 
 
G. Whether long-term contracts are negotiated by the state trading enterprise or whether the 
state trading enterprise is used to fulfil 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.   
 
H. Brief description of market structure  
Farmers enter into government purchases for public stockholding or sell their crops at their liberty 
in private markets.   
IV. 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.   
V. REASON WHY NO FOREIG N TRADE HAS TAKEN PLACE 
Not applicable.   VI. ADDITIONAL INFORMATION Not applicable.   
 
   
  G/STR/N/16/KOR  
 
- 4 - 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$/mt) National production 
1 2 3 4 5 6 7 
Rice 
(1006.20.1000) '14: 253,590 
'15: 337,700 '14: 253,590 
'15: 337,700 '14: 784.6 
'15: 815.4 '14: 570.7 
'15: 590.2  '14: 0 
'15: 0 
'14: 4,240,739 
'15: 4,326,915 Rice (1006.30.1000) '14: 122,610 
'15:  60,000 '12: 122,610 
'15: 60,000 '14: 1,006.9 
'15: 943.2 '14: 1,386 
'15: 1,156 '14: 379 
'15: 213 
Rice (1006.40.0000) '14: 32,500 
'15: 11,000 '14: 32,500 
'15: 11,000 '14: 383.7 
'15: 384.4 '14: 320.0 
'15: 292.5 '14: 0 
'15: 0 
Note: 1. Rice: Polished rice basis. 
2. Annual average of exchange rate : '14: W 1,053.22/$,  '15: W 1,131.49/$ 
3.  National production of rice in 2015 is provisional. 
  
  G/STR/N/16/KOR  
 
- 5 - 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) (1006.40.0000) '14: 0 
'15: 0 '14: 4,240,739 
'15: 4,326,915 '14: 87,846 
'15: 58,807 '14: 4,436,426 
'15: 4,199,412 
Note: 1. Rice: Polished rice basis.  2. National production of rice in 2015 is provisional. G/STR/N/16/KOR 
 
- 6 - 
 
  I. ENUMERATION OF STATE TRADING ENTERPRISES 
A. Identification of State Trading Enterprises The Korea Agro-Fisheries & Food Trade Corporation (aT) 
 
B. Description of products affected 
 
Products HS Number Products HS Number 
Genus Capsicum 0904.21.0000 Soya beans 1201.90.3000 
1201.90.9000 
Garlic 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   
II. REASON AND PURPOSE 
A 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 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 stabiliz e the domestic market and to ensure the smooth 
implementation of the UR 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: Article 15 and 16 of the Agro-Fisheries Marketing and Price Stabilization Act/ 
Articles 12, 13 and 13-2 of the Grain Management Act.   
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE 
A. Summary statement providing overview of operations of the state trading enterprise 
 
The aT imports tariff quota quantity specified in Korea's C/S.    
B. Specification of exclusive or special righ ts or privileges enjoyed by the state trading 
enterprise 
 Imports and sales of items subject to in-quota tariffs. 
 
C. Type of entities other than the state trading enterprise that are allowed to engage in 
importation/exportation and conditions for participation 
 G/STR/N/16/KOR 
 
- 7 - 
 
  For sesamum seeds, 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 bidding refers to a "public auction" where goods are sold to a participating company which 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 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.    
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 determ ined 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 contractual 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 di rectly by the aT or through an open bidding or a 
wholesale auction system.   
IV 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.   
V. REASON WHY NO FOREIG N TRADE HAS TAKEN PLACE 
Not applicable. VI. ADDITIONAL INFORMATION 
Not applicable. 
  
 
  
  G/STR/N/16/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) '14: 268,941 
'15: 241,658 '14: 249,501 
'15: 230,485 '14: 872 
'15: 724 '14: 1,060 
'15: 945 '14: 188 
'15: 221 '14: 139,267 
'15: 103,504 
2. Small red beans (0713.32.9000) '14: 21,190 
'15: 16,990 '14: 17,600 
'15: 15,990 '14: 2,167 
'15: 2,029 '14: 2,027 
'15: 2,033 '14: 0 
'15: 4 '14: 7,205 
'15:- 
3. Green beans 
(0713.31.9000) '14: 4,500 
'15: 2,500 '14: 3,500 
'15: 2,500 '14: 1,746 
'15: 1,889 '14: 3,937 
'15: 3,546 '14: 2,191 
'15: 1,657 '14: 2,091 
'15:- 
4. Buckwheat 
(1008.10.0000) '14: 1,233 
'15: 1,248 '14: 828 
'15: 828 '14: 628 
'15: 914 '14: 1,930 
'15: 2,004 '14: 1,302 
'15: 1,090 '14: 1,934 
'15:  - 
5. Genus Capsicum (0904.21.0000) '14: 1,088 
'15: 1,160 '14: 0 
'15:160 '14: 0 
'15: 5,948 '14: - 
'15: 8,489 '14: - 
'15: 2,541 '14: 85,068 
'15: 97,697  
   G/STR/N/16/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$/mt) National 
production 
1 2 3 4 5 6 7 
6. Garlic (0703.20.9000) (0712.90.1000) '14: 800 
'15: 25,112 '14: 800 
'15: 13,120 '14: 1,738 
'15: 2,795 '14: 5,842 
'15: 3,586 '14: 4,104 
'15: 791 '14: 353,761 
'15: 266,272 
7. Onions (0703.10.1000) (0712.20.0000) '14: 1,017 
'15: 154,772 '14: 0 
'15: 13,460 '14: - 
'15: 958 '14:  - 
'15: 752 '14: - 
'15: 0 '14: 1,589,957 
'15: 1,093,932 
8. Sesamum seeds  (1207.40.0000) '14: 79,746 
'15: 79,982 '14: 35,782 
'15: 36,482 '14: 3,126 
'15: 2,087 '14: 4,059 
'15: 3,480 '14: 933 
'15: 1,393 '14: 12,158 
'15: 11,678 
Note 1. Annual average of exchange ra te: '14: W 1,053.22/$,  '15: W 1,131.49/$. 
2. Genus Capsicum, Onions: Statistical data for 2014 cannot be ca lculated because the import ri ghts auction system was used. 
3. National production of small red beans, green beans and buckwheat in 2015 are not available    
  G/STR/N/16/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) '14: 9,403 
'15: 11,289 '14: 139,267 
'15: 103,504 '14: 257,508 
'15: 238,195 '14: 448,000 
'15: 400,000 
2. Small red beans (0713.32.9000) '14: 0 
'15: 0 '14: 7,205 
'15: - '14: 18,947 
'15: 17,407 '14: 30,500 
'15: 27,000 
3. Green beans (0713.31.9000) '14: 0 
'15: 0 '14: 2,091 
'15: - '14: 3,824 
'15: 3,081 '14: 3,800 
'15: 6,500 
4. Buck wheat (1008.10.0000) '14: 130 
'15: 249 '14: 1,934 
'15: - '14:  823 
'15: 825 '14: 3,300 
'15: 3,300 
5. Genus Capsicum (0904.21.0000) '14:  - 
'15: 7,000 '14: 85,068 
'15: 97,697 '14: 251 
'15: 1,935 '14: 175,000 
'15: 217,000  
   G/STR/N/16/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 
(0703.20.9000) (0712.90.1000) '14: 1.973 
'15: 0 '14: 353,761 
'15: 266,272 '14: 8,822 
'15: 5,816 '14: 390,000 
'15: 335,000 
7. Onions (0703.10.1000) (0712.20.0000) '14: 15,450 
'15: 10,776 '14: 1,589,957 
'15: 1,093,932 '14: 11,076 
'15: 8,355 '14: 1,567,000 
'15: 1,176,000 
8. Sesamum seeds (1207.40.0000) '14: 0  
'15: 0 '14: 12,158 
'15: 11,678 '14: 28,279 
'15: 36,460 '14: 91,904 
'15: 91,660 
Note: 1.  Annual average of exchange rate: '14:  W 1,053.22/$,   '1 5:  W 1,131.49/$. 
  2. National production of small red beans, green beans and buckwheat in 2015 are not yet aggregated 
  
 
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