WORLD TRADE  
ORGANIZATION  WT/REG210/3/Rev.1 
19 October 2009 
 (09-5139) 
Committee on Regional Trade Agreements  
  
 
   
 
 
FACTUAL PRESENTATION 
 
Free Trade Agreement  
between  
the Republic of Korea and Singapore 
(Goods and Services) 
 
Report by the Secretariat 
 
Revision  
 
 
 
 This report, prepared for the considerati on of the Free Trade Agreement between the 
Republic of Korea and Singapore has been drawn up by the WTO Secretariat on its 
own responsibility and in full consultation with the Parties.  The report has been 
drawn up in accordance with the rules and pr ocedures contained in the Decision for a 
Transparency Mechanism for Regiona l Trade Agreements (WT/L/671).  
 Any technical questions arising from this report may be addressed to Ms Juneyoung Lee (tel: +41 22 739 67 91).  WT/REG210/3/Rev.1 
 Page iii 
 
 
  TABLE OF CONTENTS 
 
 
  Page 
I. TRADE ENVIRONMENT 1  
A. MERCHANDISE TRADE  1  
B. TRADE IN SERVICES AND INVESTMENT  5  
II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 10  
III. TRADE IN GOODS 12  
A. IMPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  12  
1. General provisions 12  
2. Liberalization of trade and tariff lines 12  
3. Korea's liberalization schedule 14  
4. Singapore's liberalization schedule 16  
B. RULES OF ORIGIN  17  
C. EXPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  18  
D. REGULATORY PROVISIONS ON TRADE IN GOODS  18  
1. Standards 18  
(a) Sanitary and phytosanitary measures 18  
(b) Technical barriers to trade 18  
2. Safeguard mechanisms 19  
(a) Global safeguards 19  
(b) Bilateral safeguards 20  
(c) Special safeguards 20  
(d) Balance of payments safeguards 20  
3. Anti-dumping and countervailing measures 21  
4. Subsidies and State-aid 21  
5. Customs-related procedures 21  
IV. TRADE IN SERVICES AND INVESTMENT 21  
A. SCOPE AND DEFINITIONS  21  
B. DENIAL OF BENEFITS  22  
C. GENERAL PROVISIONS ON TRADE IN SERVICES AND INVESTMENT  22  
1. Market access 22  
2. National treatment and MFN 22  
3. Local presence, performance requirements, and senior management and 
boards of directors 23  
4. Movement of natural persons 24  
5. Recognition 24  
6. Domestic regulation 25  
7. Monopolies and exclusive service suppliers 25  
8. Transfers/Balance of Payment 25  
D. NON-CONFORMING MEASURES  25  
E. ADDITIONAL COMMITMENTS  34  
F. FURTHER LIBERALIZATION  34  
 WT/REG210/3/Rev.1 
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  G. LIBERALIZATION COMMITMENTS IN SELECTED SERVICES SECTORS  34  
1. Communication services 34  
2. Financial services 35  
3. Transport services 37  
V. GENERAL PROVISIONS OF THE AGREEMENT 38  
A. TRANSPARENCY  38  
B. EXCEPTIONS  38  
C. ACCESSION AND TERMINATION  38  
D. INSTITUTIONAL FRAMEWORK  38  
E. DISPUTE SETTLEMENT  39  
F. RELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  40  
G. GOVERNMENT PROCUREMENT  42  
H. INTELLECTUAL PROPERTY RIGHTS  42  
I. OTHERS  43 
1. Competition 43  
2. Environment 43  
3. Electronic commerce 43  
4. Cooperation 44  
ANNEX  45 
 
  WT/REG210/3/Rev.1 
 Page 1 
 
 
  I. TRADE ENVIRONMENT 
1. The Free Trade Agreement (FTA) between the Repu blic of Korea (hereinafter referred to as 
"Korea") and Singapore (hereinafter referred to as "the Agreement") is Korea's first FTA with an Asian country and Singapore's second FTA (after  Japan) with an East Asian partner. 
2. In 2007, Korea was Singapore's tenth largest merchandise export market and eighth largest 
merchandise import source (respectively 3.5% and 4.9% of Singapore's exports and imports).  
Singapore was Korea's seventh la rgest export destination and 15
th largest source of imports 
(respectively 3.2% and 1.9% of  Korea's exports and imports).1  Korea was Singapore's ninth largest 
services export market and eighth largest service s import source (respectively 3.2% and 1.4% of 
Singapore's exports and imports).2 
3. Korea's GDP was estimated at US$969.7 billion in 2007, while that of Singapore was 
US$161.3 billion in the same year.  Their world rankings in merchandise trade and services are similar:  Korea was the world's 11
th largest exporter and 13th largest importer of merchandise in 2007 
compared to Singapore's 14th  largest and 15th largest rank for exports and imports respectively.  With 
regard to commercial services Korea ranked as the world's 18th largest exporter and 11th largest 
importer in 2007 while Singapore was the world's 14th largest exporter and 15th largest importer in that 
year.3  Singapore's trade to GDP ratio, however, at 443.7 is considerably higher than that of Korea at 
85.7. 
A. MERCHANDISE TRADE  
4. Recent developments in global and intra-Party trad e are presented in Charts I.1 and I.2.  Over 
the period surveyed (1997-2007), trade between the Pa rties has grown, particularly since 2001.  While 
Singapore ran a trade surplus in its global trade ove r that time, it had a trade deficit with Korea from 
2005 to 2007.4   
  
                                                     
 
1 WTO Statistics Database, Trade Profiles (October 2008). 
2 WTO estimates based on national data provided by Singapore to the WTO International Trade 
Statistics. 
3 WTO Statistics Database, Trade Profiles (October 2008). 
4 There is a discrepancy in the trade data reported by Korea and Singapore to Comtrade due to the use 
of different accounting methods for calculating trade data. WT/REG210/3/Rev.1 
Page 2  
 
  050100150200250300350400
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 200702468101214US$billion US$billionChart I.1 - Korea: merchandise im ports from and exports to world 
and Singapore, 1997-2007
Source : UNSD, Comtrade database.Imports from Singapore
Exports to SingaporeTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
 
04080120160200240280320
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 200702468101214US$billion US$billionChart I.2 - Singapore: merchandise imports from and exports to 
world and Korea, 1997-2007
Source : UNSD, Comtrade database.Imports from Korea
Exports to KoreaTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
  WT/REG210/3/Rev.1 
 Page 3 
 
 
  5. The commodity structure of trade between the Pa rties, as well as of their imports and exports 
to the world in the period 2003-2005, is shown in Chart I.3 on the basis of the Harmonized System (HS) sections. 
6. Korea's five largest export product categories – machinery, vehicles, base metals, plastics and 
textiles – made up 82% of its to tal exports in 2003-2005 and acc ounted for 86.2% of Singapore's 
imports from Korea.  Singapore's five largest export product categories – machinery, minerals, 
chemicals, plastics, and optical – made up 85.6% of  its total exports in 2003-2005 and accounted for 
94% of Korea's imports from Singapore. 
 
 WT/REG210/3/Rev.1 
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  Chart I.3
Korea and Singapore: product compos ition of merchandise trade, annual 
average (2003-2005)
Korea's imports from Singapore Singapore's imports from Korea
 Source:  UNSD, Comtrade database.Per cent
Total:  US$4.62 billion Total:  US$6.86 billion
Total:  US$221.51 billion Total: US$169.97 billion
Total:  US$244.03 billion Total:  US$196.08 billionKorea's global exportsSingapore's global exportsKorea's global imports Singapore's global importsOther
3.9
Machinery  
77.4Optical 2.6
Machinery
74.2Other 
3.9Plastics 1.9
Base metals 5.6
Other 
11.9
Machinery
53.3 Chemicals 
5.5Plastics 2.2Other
10.5
Minerals
25.5Optical  4.9Machinery
31.0Vehicles 2.5
Chemicals 
8.0Textiles 3.0 Base metals 4.3Plastics 2.6
Vehicles 4.6
Other 
5.4Other 
9.6
Vehicles
 18.8Chemicals 5.0
Base metals 7.7Plastics 6.0Base metals 2.7
Minerals
10.5Machinery 
59.0Vehicles  2.1
Chemicals 
 9.6Chemicals 
8.5
Minerals 
15.8Optical  3.9Vehicles 3.3
Base metals 
10.5
Optical 3.2Plastics 2.3Base metals 2.1
Minerals 3.2Chemicals 3.1
Minerals 6.8
Textiles 6.0Machinery 
43.5Minerals 4.6Optical 3.0
Plastics 3.3Textiles 1.2
 
  WT/REG210/3/Rev.1 
 Page 5 
 
 
  B. TRADE IN SERVICES AND INVESTMENT  
7. Chart I.4 shows the breakdown of commercial services trade for Korea in 2000-2007.  
Between 2000 and 2002 , total exports of commercial services declined, and have risen steadily since 
then, with exports in 2007 double those in 2000.  Imports have grown more rapidly resulting in a 
growing commercial services trade deficit.  The ma in contributors to both exports and imports of 
services during this period have been transpor tation, and other business services.  These sectors 
accounted for almost 76% of services exports and 63% of imports in 2007.  Computer and information services are still marginal in terms of total exports of commercial services, however, the 
increment has been about 30% over the period 2000-2007. 
 
0102030405060708090
2000 2001 2002 2003 2004 2005 2006 20070102030405060708090
2000 2001 2002 2003 2004 2005 2006 2007Chart I.4
Korea, total commercial services trade, 2000-2007
Exports Imports
Transportation services
Travel services
Communication services
Source : IMF, BOP CD-Rom.Construction servicesUS$ billion
Insurance services
Financial services
Computer and information 
iRoyalties and license Other business services
Personal and cultural services
Government services
 
 
 8. Chart I.5 shows the breakdown of commercial services trade for Singapore in 2000-2006.  
Imports have risen more rapidly than exports during this period.  The main contributors to both 
exports and imports of services during this period  have been transportation and other business 
services.  These services account for 73.6% and 56. 4% of its exports and imports, respectively. 
 WT/REG210/3/Rev.1 
Page 6  
 
  05101520253035404550556065
2000 2001 2002 2003 2004 2005 200605101520253035404550556065
2000 2001 2002 2003 2004 2005 2006Chart I.5
Singapore, total commercial services trade, 2000-2006
Exports Imports
Transportation services
Travel services
Communication services
Source : IMF, BOP CD-Rom.US$ billion
Insurance servicesFinancial services
Computer and information services
Royalties and license Other business services
Personal and cultural services
Government services
 
 
 9. Chart I.6 shows Singapore's bilateral commercia l services trade with Korea in 2003-2005.  
Exports have grown more rapidly th an imports during this period.  As also shown in Chart I.5, the 
main contributors to both exports and imports of Singapore's commercial services vis-a-vis  Korea 
during this period have been trans portation and other business services.  In contrast to its trade with 
the world, Singapore has run a consistent and growi ng trade surplus in services with Korea during the 
period. 
  WT/REG210/3/Rev.1 
 Page 7 
 
 
  0.00.51.01.52.02.5
2003 2004 20050.00.51.01.52.02.5
2003 2004 2005Chart I.6
Singapore, bilateral commercial serv ices trade with Korea, 2003-2005
Exports Imports
Transportation services
Source : Singapore Department of Statistics.US$ billion
Insurance servicesFinancial services
Computer and information services
Royalties and license Other business services
Personal and cultural servicesUS$ billion
Note: data suppressed in 2003 to  avoid disclosure of data of individual companies: Royalties and license (exports and 
         imports); Construction (exports and imports);  data not available: Construction (imports 2004-2005).
 
 
10. Korea's global investment position in 2000-2007 is de picted in Chart I.7.  Its stock of inward 
foreign direct investment (FDI) has risen more rapidly (by 214%) than its outward FDI stock (147%) 
during this period.  By 2007, its stock of inward FDI was almost double that of the stock held by 
Korea abroad. WT/REG210/3/Rev.1 
Page 8  
 
  0306090120
2000 2001 2002 2003 2004 2005 2006 20070306090120
2000 2001 2002 2003 2004 2005 2006 2007Chart I.7 
Korea inward and outward fo reign direct investment st ock from world  2000-2007
Inward Outward US$ billionUS$ billion
Source: UNCTAD, Foreign Direct Investment database. 
 
11. Singapore's global investment position in 2000-2007  is depicted in Chart I.8.  During this 
period there was a steady increase in both inward and outward FDI stocks, although like Korea, its 
inward stock of FDI also rose more rapidly (by 122%) than its outward stock of FDI (163%).   WT/REG210/3/Rev.1 
 Page 9 
 
 
  050100150200250300
2000 2001 2002 2003 2004 2005 2006 2007050100150200250300
2000 2001 2002 2003 2004 2005 2006 2007Chart I.8
Singapore inward and outwar d foreign investment stock from world, 2000-2007
Inward OutwardUS$ billion US$ billion
Source: UNCTAD, Foreign Direct Investment database.
 
 
12. Chart I.9 shows Singapore's inward and outward stock of FDI with Korea during 2003-2005.  
Singapore's FDI in Korea has increased, whereas inward FDI from Korea has been subject to 
fluctuation during the period.  Wholesale and retail trad e is the largest contributor to both inward and 
outward FDI stocks;  the second largest sector for inward investment is information and 
communications and financial and insurance se rvices account for the second largest sector for 
outward investment. 
 
   WT/REG210/3/Rev.1 
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  0.00.20.40.60.81.01.21.41.61.82.0
2003 2004 20050.00.20.40.60.81.01.21.41.61.82.0
2003 2004 2005Chart I.9
Singapore, inward and outward foreign direct investment stock with Korea, 
2003-2005
Inward Outward
Source : Singapore Department of Statistics.US$ million
Wholesale & retail trade
Transport & storageManufacturingUS$ million
Financial & insurance ConstructionInformation and Communications
Professional and technical
 Note: data suppressed to avoid data disclosure of individual companies : construction (outward), real estate and others (inwar d and
 outward).
 
 
 II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
13. The Agreement was signed by Korea and Singa pore on 4 August 2005 and entered into force 
on 2 March 2006.  The FTA negotiations, composed of  five rounds, were concluded between January 
and November 2004. 
14. The goods and services aspects of the Agreement were notified to the WTO by the Parties on 
21 February 2006 under Article XXIV of the GATT 1994 and the Understanding on the Interpretation 
of Article XXIV of GATT 1994, and Article V of the GATS, respectively (WT/REG210/N/1 and 
S/C/N/363).  The text of the Agreement was circ ulated to Members as document WT/REG210/1, and 
is also available, together with its related annexes, on the following official websites: 
Korea:  http://www.fta.go.kr/user/fta_korea/kor_singapore.asp?country_idx=13 (in Korean
) 
Singapore:  http://www.fta.gov.sg/fta_ksfta.asp?hl=22  
15. The objectives of the Agreement, inter alia,  are the liberalization and facilitation of trade in 
goods and services and expansion of investment betw een the Parties;  establishment of a framework 
for: i) strengthening the economic relations betw een the Parties;  ii) a more favourable business 
environment and promotion of cond itions of fair competition in the free trade area;  iii) transparent 
rules to govern trade and investment between the Parties;  and iv) further regional and multilateral  WT/REG210/3/Rev.1 
 Page 11 
 
 
  cooperation to expand and enhance the benefits of the Agreement throughout Asia, and to encourage 
economic integration of Asia n economies (Article 1.2). 
16. The Agreement is composed of 22 Chapters and has related Annexes and exchanges of letters 
between the Parties, as follows:  
Box II.1:  Composition of the Agreement 
Chapters, Annexes and Letters Title/description 
Preamble  
Chapter 1 General Provisions 
Chapter 2 General Definitions 
Chapter 3 National Treatment and Market Access for Goods 
Annex 3A Tariff Elimination Schedule 
Chapter 4 Rules of Origin 
Annex 4A Specific Rules of Origin 
Annex 4B Originating Goods Referred to in Article 4.3 
Annex 4C The Goods Referred to in Article 4.4 
Letter from Korea to Singapore Recognition of Outward Processing 
Chapter 5 Customs Procedures 
Annex 5A Authorised Bodies to Issue Certificate of Origin 
Annex 5B Format of the Certifi cate of Origin Issued by Korea 
Annex 5C Format of the Certificat e of Origin Issued by Singapore 
Annex 5D Customs Contact Point 
Chapter 6 Trade Remedies 
Chapter 7 Sanitary and Phytosanitary Measures 
Chapter 8 Technical Barriers to  Trade and Mutual Recognition 
Annex 8A Annex on Telecommunication Equipment 
Letter from Korea to Singapore Annex on  Electrical and Electronic Equipment 
Chapter 9 Cross-Border  Trade in Services 
Annex 9A Reservations for Existing Measures and Liberalization Commitments 
Annex 9B Reservations for Future Measures 
Annex 9C Additional Commitments to Chapter 9 
Annex 9D Professional Services 
Letter from Singapore to Korea Applicability of Ma rket Access on Cross Border Trade in Services 
Chapter 10 Investment 
Letter from Korea to Singapore Oblig ations for Imposition of Safeguards 
Letter from Singapore to Korea Commitment on Non-Expropriation under Land Acquisition Act 
Chapter 11 Telecommunications 
Chapter 12 Financial Services 
Annex 12A Specific Commitments 
Annex 12B Financial Services Activities 
Chapter 13 Temporary Entry of Business Persons 
Annex 13A Temporary Entry of Business Persons 
Chapter 14 Electronic Commerce 
Letter from Singapore to Korea Imposition of Customs Duties on Digital Products 
Box II.1 (Cont'd)  WT/REG210/3/Rev.1 
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  Box II.1:  Composition of the Agreement 
Chapters, Annexes and Letters Title/description 
Chapter 15 Competition 
Chapter 16 Government Procurement 
Annex 16A Coverage of Government Procurement 
Annex 16B Government Procurement Implementation 
Chapter 17 Intellectual Property Rights 
Chapter 18 Cooperation 
Annex 18A Cooperation 
Chapter 19 Transparency 
Chapter 20 Dispute Settlement 
Annex 20A Model Rules of Procedure 
Chapter 21 Exceptions 
Letter from Singapore to Korea Protection of Critical Communications Infrastructure 
Chapter 22 Administration and Final Provisions 
Source : Free Trade Agreement between Korea and Singapore.  
 
III. TRADE IN GOODS 
A. IMPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
1. General provisions 
17. Each party accords national treatment to the goods of the other Party in accordance with 
Article III of the GATT 1994 which is incorporated  into and became part of the Agreement 
(Article 3.3). 
18. Except as otherwise provided in the Agreement, the Parties agree to progressively eliminate 
customs duties and other duties or charges on originating goods as scheduled in Annex 3A of the Agreement.  Upon request by a Party, the Parties sh all consult to consider accelerating the elimination 
of customs duties or including goods which initially were not part of the tariff elimination schedule 
(Article 3.4).
5 
19. The Parties agree not to adopt or maintain an y prohibitions or restri ctions on imports from 
each other, except in accordance with their right s and obligations under the WTO Agreement or as 
otherwise provided in the Agreement (Article 3.8) .  If a Party adopts or maintains prohibitions or 
restrictions on imports from a non-Party, that Party may limit or prohibit the import from the other Party of such imports restricted from that non-Part y.  When a Party adopts or maintains prohibitions 
or restrictions on the import of a good from a non-Part y, the Parties, upon request by the other Party, 
must consult to avoid undue interference with, or distortion of, pricing, marketing and distribution 
arrangements in the other Party (Articles 3.8.2 and 3.8.3). 
2. Liberalization of trade and tariff lines 
20. Trade in goods under the Agreement is classified under the 2002 nomenclature of the 
Harmonized System (HS).  The elimination of tariffs  applicable between the Parties is scheduled in 
Sections 1 and 2 of Annex 3A, for Singapore and Ko rea, respectively.  Sing apore eliminates customs 
duties on all products originating in Korea upon the date of entry into force of the Agreement.  In the 
                                                     
 
5 According to the Parties, there is no update in this regard, to date.  WT/REG210/3/Rev.1 
 Page 13 
 
 
  case of Korea, the Agreement provides for four differ ent categories of tariff liberalization:  i) the 
immediate elimination of customs duties from the en try into force of the Agreement;  ii) a phased 
elimination of duty in five annual stages;  iii) a ph ased elimination of duty in ten annual stages;  and 
iv) products not subject to concessions.  Korea' s tariff elimination and/or reduction commitment 
vis-à-vis  Singapore began upon entry into force, based on the applied MFN tariff in 2004.  Subsequent 
reductions in duty take place on 1 January of the given year. 
21. The overall tariff elimination under the Agreement is depicted in Tables III.1.A and III.1.B.  
Table III.1.A shows duty elimination in terms of tari ff lines and trade, as applied by Korea to imports 
from Singapore.6  Before the entry into force of the Agreement 1,498 tariff lines (13.3% of Korea's 
tariff) were already duty-free on an MFN basis.  Upon entry into force of the Agreement, an 
additional 5,226 tariff lines (46. 4% of the tariff) became duty-free for imports from Singapore;  as a 
result, 59.7% of Korea's tariff lines became duty-free corresponding to 80.8% of imports by value from Singapore.  The remaining tariffs are to be prog ressively eliminated in two additional stages, in 
2011 and 2016.  By 2011, after five years of implementation, a further 2,009 lines are to become duty-free (17.8% of Korea's tariff lines) amounting to  3.3% of the value of imports from Singapore.  
By the end of implementation in 2016, 91.6% of tariff lines and 90.8% of imports by value from 
Singapore will be duty-free. 
Table III.1 
Tariff elimination commitments under the Agreement and corresponding average trade 
A.  Korea 
Duty phase-out 
period Number of lines % of total lines in 
Korea's tariff schedule Value of Korea's imports 
from Singapore (2003-2005) 
in US$ million % of Korea's total 
imports from 
Singapore 2003-2005 
MFN duty free (2006) 1,498 13.3 3,430.0 74.8 
2006 5,226 46.4 273.5 6.0 
2011 2,009 17.8 152.6 3.3 
2016 1,582 14.0 307.4 6.7 
Remain dutiable 946 8.4 419.5 9.2 
Total 11,261 100.0 4,583.0 100.0 
  
Source: WTO Secretariat based on data provided by Korea and WTO-IDB. 
 
22. Table III.1.B shows Singapore's duty elimination in terms of tariff lines and trade, applied to 
Korea.7  Before the entry into force of the Agreemen t 10,682 tariff lines (99.9% of Singapore's tariff) 
were already duty-free on an MFN basis.  The rema ining six tariff lines were liberalized as of the 
entry into force of the Agreement, resulting in a liberalization of 100% of trade and tariff lines. 
 
    
 
                                                     
 
6 Korea's applied MFN tariff in 2006 consisted of 11,2 61 lines at the HS 10-digit level.  99.3% of the 
tariff has ad valorem  rates of duty.  Of the lines with non ad valorem  rates, 77 are subject to alternate rates of 
duty;  for these lines, only the ad valorem  component of the duty has been us ed in the tariff calculations.  In 
addition, imports under eight lines (HS 1006100000;  1006201000;  1006202000;  1006301000;  1006302000;  
1006400000;  1102300000;  and 1103193000) relating to rice are prohibited on an MFN basis. 
7 Singapore's applied MFN tariff in 2006 was composed of 10,688 tariff lines at the HS 8-digit level.  
99.9% of the tariff has ad valorem  rates of duty.  All the remaining six lin es are subject to specific rates of duty. WT/REG210/3/Rev.1 
Page 14  
 
  Table III.1 
Tariff elimination commitments under the Agreement and corresponding average trade 
B. Singapore 
Duty phase-out 
period Number of lines % of total lines in 
Singapore's tariff 
schedule Value of Singapore's 
imports from Korea  
(2003-2005) 
in US$ million % of  
Singapore's total 
imports from Korea 
2003-2005 
MFN duty free 
(2006) 10,682 99.9 6,819.1 99.98 
2006 6 0.1 1.5 0.02 
Total 10,688 100.0 6,820.6 100.00 
  
Source:  WTO Secretariat based on data provided by Singapore and WTO-IDB. 
 
3. Korea's liberalization schedule 
23. Table III.2 shows Korea's tariff elimination commitments vis-à-vis Singapore by HS section 
product categories.  Of the remaining tariff lines subject to duty after entry into force of the Agreement, 2,009 lines are to be fully liberalized by 2011;  they include mostly: i) machinery;  
ii)  chemicals and chemical products;  iii) precisi on equipment;  and iv) textiles and textiles articles.  
The additional 1,582 tariff lines to be fully libera lized by 2016 are mostly: i) textiles and textiles 
articles;  ii) chemicals and ch emical products;  iii) machinery;  iv) vegetable products;  and 
v) prepared food.  The 946 tariff lines that will remain dutiable at the end of the implementation 
period (2016) are mainly agricultural products, su ch as live animals and animal products, vegetable 
products and prepared food.  The final average tari ff on lines remaining dutiable after implementation 
are highest for vegetable products (214.6%);  and animal or vegetable fats and oils (117.1%). 
Table III.2 
Korea: Tariff elimination under the Agreement, by HS section 
Number of duty-free 
lines  
HS section and description  MFN 
average
% Total 
No of 
lines MFN 
2006 2006 2011 2016 No. of 
remaining 
dutiable 
lines  Average 
final tariff of 
remaining 
dutiable 
lines (2016)  
I Live animals and animal products  20.6 531 5 69 138 60 259a 26.5 
II Vegetable products  99.6 576 22 44 128 164 218b 214.6 
III Animal or vegetable fats and oils  16.6 98 0 17 54 20 7a 117.1 
IV Prepared food etc.  23.7 504 3 43 133 157 168 37.0 
V Minerals  3.8 345 0 294 9 2 40 6.3 
VI Chemicals and chemical products  7.3 2,256 164 1,378 324 293 97 36.2 
VII Plastics and rubber  6.9 374 1 163 121 37 52 7.0 
VIII Hides and skins  8.0 244 0 146 28 70   
IX Wood and articles  5.7 230 0 116 29 43 42 8.0 
X Pulp, paper etc.  0.1 247 240 7     
XI Textiles and textiles artic les  9.9 1,318 0 720 155 440 3 11.3 
XII Footwear, headgear  10.2 106 0 78 20 8   
XIII Articles of stone  7.9 282 1 131 112 21 17 7.7 
XIV Precious stones, etc.  5.2 118 5 88 4 13 8 3.0 
XV Base metals and base metals  products  4.9 909 274 556 61 18   
XVI Machinery  5.8 1,879 483 779 407 178 32 8.2 
XVII Transport equipment  5.8 348 78 241 19 10   
XVIII Precision equipment  6.4 591 110 240 197 41 3 8.0 
XIX Arms and ammunition  3.7 26 14 12     
XX Misc. manufactured articles 5.4 266 85 104 70 7   
XXI Works of art, etc. 0.0 13 13      
Total  12.8 11,261 1,498 5,226 2,009 1,582 946 68.1 
a Combination of ad valorem  and specific duties (for tariff lines with non ad valorem  components, only the ad valorem  part of the 
rate was included in the calcula tion of the tariff averages). 
b Combination of ad valorem,  mixed duty and prohibited tariff lines.  
 
Source:   WTO estimates based on data provided by Korea and WTO-IDB. 
  WT/REG210/3/Rev.1 
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  24. Charts III.1-2 show a comparison of average dutia ble rates in those HS sections and chapters, 
respectively, where preferential duties remain at  the end of the implementation period.  The 
comparison is made between the average preferentia l and MFN rates for lines subject to preferential 
duties only.  For those HS sections and chapters where duties remain after implementation of the 
Agreement is completed, the preferential duties are identical to the MFN duties.  The highest average 
duties are found in HS section II (vegetable produc ts).  A breakdown by chapter shows that the 
highest rates are found in HS chapters 9-13, ranging up to over 400%.  
0 50 100 150 200 250XXIXXXIXXVIIIXVIIXVIXVXIVXIIIXIIXIXIXVIIIVIIVIVIVIIIIIIChart III.1
Korea:  Average of dutiabl e rates, by HS SectionHS Section  
Note: For tariff lines with non ad valorem  components, only the ad valorem  part of alternate rates are included in the calculation.
Source :  WTO Secretariat estimates, based on data provided by Korea.Average rate of duty (%)
 MFN=Preferential Rate
 
 
 WT/REG210/3/Rev.1 
Page 16  
 
  0100200300400500
1
35
7
9
11
13
15
1719
21
230100200300400500
25
2728
29
30
3132
33
353738
39
404454
61
6269
70
71
848590Chart III.2
Korea: Average of dutiable rates, by HS Chapter
HS  01-24 HS 25-97Average rate of duty (%)  
Average rate of duty (%)  
 MFN=Preferential Rate
Note: For tariff lines with non ad valorem  components, only the ad valorem  part of alternate rates are included in the calculation.
Source :  WTO Secretariat estimates, based on data provided by Korea.HS Chapter HS Chapter
 
 
4. Singapore's liberalization schedule 
25. Table III.3 shows Singapore's tariff elimination commitments vis-à-vis Korea by HS section 
product categories.  At entry into force of the Agreement, all but six of Singapore's tariff lines, 
relating to beer and alcohol pro ducts, were duty-free on an MFN basi s.  Duties on these six lines were 
eliminated as of the date of en try into force of the Agreement.8 
Table III.3  
Singapore: Tariff elimination un der the Agreement, by HS section 
HS section and description MFN 
average% Total No of 
lines MFN 
2006 Number of Duty-free lines in 
2006 Average 
final 
tariff  
I Live animals and animal products 0.0 338 338  0.0 
II Vegetable products 0.0 388 388  0.0 
III Animal or vegetable fats and oils 0.0 151 151  0.0 
IV Prepared food etc. 0.0 417 411 6 0.0 
V Minerals 0.0 212 212  0.0 
VI Chemicals and chemical 
products 0.0 1,287 1,287  0.0 
VII Plastics and rubber 0.0 588 588  0.0 
VIII Hides and skins 0.0 112 112  0.0 
IX Wood and articles 0.0 253 253  0.0 
X Pulp, paper etc. 0.0 271 271  0.0 
XI Textiles and textiles ar ticles 0.0 1, 185 1,185  0.0 
XII Footwear, headgear 0.0 74 74  0.0 
XIII Articles of stone 0.0 221 221  0.0 
Table III.3 (Cont'd)  
                                                      
8 HS22030010;  22030090;  22089010;  22089020;  22089030;  and 22089040.  WT/REG210/3/Rev.1 
 Page 17 
 
 
  HS section and description MFN 
average% Total No of 
lines MFN 
2006 Number of Duty-free lines in 
2006 Average 
final 
tariff  
XIV Precious stones, etc. 0.0 77 77  0.0 
XV Base metals and base metals products 0.0 1,161 1,161  0.0 
XVI Machinery 0.0 2,202 2,202  0.0 
XVII Transport equipment 0.0 1,026 1,026  0.0 
XVIII Precision equipment 0.0 398 398  0.0 
XIX Arms and ammunition 0.0 28 28  0.0 
XX Misc. manufactured articles 0.0 287 287  0.0 
XXI Works of art, etc. 0.0 12 12  0.0 
Total 0.0 10,688 10,682 6 0.0 
 
Note: Specific duties are excluded fo r the calculation of MFN averages. 
 
Source:  WTO estimates based on data provide d by Singapore and the WTO-IDB.  
 
B. RULES OF ORIGIN  
26. Disciplines regarding rules of origin, and cust oms procedures covered by the Agreement are 
set out in Chapters 4 and 5.  Articles 4.1-4.18 d eal with the rules of origin, while Articles 5.1-5.17 
cover other customs-related issues. 
27. The general requirement for a good to be considered originating (Article 4.2) is that it: i) is  
wholly obtained or produced entirely in the territory of one or both of the Parties, as defined in Article 4.1;  ii) for non-originating materials has satisfied the product specific rule requirements of 
Annex 4A, and other applicable requirements of Chapter 4 as a result of the production occurring 
entirely in the territory of one or both of the Parti es;  iii) is otherwise defined as an originating good 
under Chapter 4;  or iv) is produced entirely in the territory of one or both of the Parties exclusively 
from originating materials. 
28. For non-originating materials, in the majority of cases origin is granted if the non-originating 
materials have undergone a change in tariff classi fication (CTC) on the basis of HS headings or 
subheadings - i.e. at the four or six-digit level.   The CTC is supplemented with, or replaced by, a 
regional value requirement which establishes the mini mum value of originating materials allowed in 
the final good for it to be considered originating.  The regional value requirement is expressed as a 
percentage of the regional value content.  The mini mum value is mainly 50%, but there are also cases 
where it is 45% or 55%. 
29. Annex 4B lists 4,625 HS-6 digit goods produced  in the Gaesong Industrial Complex and other 
industrial zones on the Korean Peninsula, which are treated as originating by Singapore when  
imported from Korea.  Korea may add other goods to the list by giving three months written notice, 
unless Singapore makes a good faith objection (Article  4.3 of the Agreement and Section 2 of 
Annex 4B).
9   
30. Materials that have been exported by a Pa rty and re-imported subsequent to processing 
outside the territory of the Party will be considered  originating, if the conditions in Article 4.4 are 
met.  Annex 4C lists goods to be considered originating, subject to the conditions listed in 
Article 4.4.10  Under a letter from Korea to Singapore, the Party shall inform the other Party in writing 
of the geographical area where the processing operations take place. 
                                                      
9 According to Korea, there is no update to the list, to date. 
10 Article 4.4 lists six conditions, all of which must be met.  See Article 4.4 for the complete list.  WT/REG210/3/Rev.1 
Page 18  
 
  31. Article 4.10 establishes a de minimis  principle whereby a product is considered to be 
originating if the value of all non-originating mate rials used in its production that do not undergo a 
CTC is no more than 10% of the customs valu e of the goods, and the good satisfies all other 
applicable requirements of Chapter 4.  This does no t apply to certain HS chapters (Article 4.10.2).  
Cumulation between producers in one or bot h Parties is permitted (Article 4.9). 
32. Articles 4.6-4.8 and 4.11-4.14 define how cer tain materials (unassembled or disassembled 
goods;  intermediate materials;  neutral elements ;  fungible goods and materials;  accessories, spare 
parts and tools;  packaging materials and contai ners for retail sale;  and packing materials and 
containers for shipment) are to be treat ed/valued when determining their origin. 
33. The Parties will consult to review the rules of origin and discuss necessary amendments to 
Chapter 4 and its Annexes, under the Agreement's re view mechanism (Article 22.1), or upon request 
(Article 4.18). 
C. E
XPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
34. The Parties agree not to adopt or maintain any duties on their mutual exports (Article 3.6).  
The Parties agree not to adopt or maintain any prohi bitions or restrictions on the export, or sale for 
export, of any good destined for the other Party, except in accordance with th eir rights and obligations 
under the WTO Agreement, or except as otherwise provided in the Agreement (Article 3.8.1). 
D. REGULATORY PROVISION S ON TRADE IN GOODS  
1. Standards 
35. Standards are regulated under one provision on sanitary and phytosanitary measures 
(Chapter 7) and 11 rather detaile d provisions on technical barriers to trade and mutual recognition 
(Chapter 8). 
(a) Sanitary and phytosanitary measures 
36. The Parties reaffirm the purposive preambular language of the WTO Agreement on Sanitary 
and Phytosanitary Measures (SPS) (Article 7.1), and incorporate the WTO SPS Agreement into the 
Agreement (Article 7.1.3). 
37. The Ministry of Agriculture and Forestry and the Agri-Food and Veterinary Authority 
function as the contact points in Ko rea and Singapore, respectively, for consultation and exchange of 
information on SPS between the Parties (Article 7.1.4). 
(b) Technical barriers to trade 
38. The Parties reaffirm their existing rights and obligations under the WTO Agreement on 
Technical Barriers to Trade (TBT) in respect of standards, technical regulations and conformity 
assessment procedures with a view to increasing bus iness opportunities (Article 8.1).  Article 8.2.1 
specifies the applicable scope as standards, t echnical regulations and conformity assessment 
procedures that may directly or indirectly affect trade in goods between the Parties and/or assessments 
of manufacturers or manufacturing processes, regardless of their origin (Article 8.4). 
39. The Parties agree to intensify their joint work in this area to facilitate market access.  For this, 
they recognize that various mechanisms exist to f acilitate the acceptance by a Party of the results of 
conformity assessment conducted by the other Party, as follows: i) mutual ac ceptance agreements on 
the results of conformity assessment procedures unde r specified regulations by bodies located in the  WT/REG210/3/Rev.1 
 Page 19 
 
 
  territory of the other Party;  ii) accreditation pr ocedures for qualifying conformity assessments bodies;  
iii) government designation of conformity assessment  bodies;  iv) recognition by one Party of the 
results of conformity assessment performed in the ot her Party's territory;  v) voluntary arrangements 
between conformity assessment bodies in each Part y's territory;  and vi) the importing Party's 
acceptance of a supplier's declaration of conformity.  According to the Parties, these mechanisms are 
not exhaustive and they shall furt her exchange information on the di fferent mechanisms to facilitate 
the acceptance of conformity assessment results as formalized in a Sectoral Annex. 
40. The Parties must accept the results of confor mity assessment procedures, based on the other 
Party's mandatory requirements, that are conducted by that Party's designated conformity assessment 
body and registered by the other Party (Article 8. 5.3).  Article 8.5 also details on designation;  
registration;  verification and monitoring;  and su spending (and resuming) designation of a conformity 
assessment body.  The Parties can challenge a registered conformity assessment body's technical competence and compliance with the relevant re quirements of the Sectoral Annex under exceptional 
circumstances and supported by relevant expert anal ysis and/or evidence (Article 8.5.20).  Challenges 
of this nature can be addressed through consulta tions between the Parties or by the TBT Joint 
Committee (Article 8.5.21).  If the issue is not r esolved by the TBT Joint Committee, the Parties can 
bring the case to dispute settlement under Chap ter 20 of the Agreement (Article 8.7.6). 
41. The TBT Joint Committee is established to implement Chapter 8.  Its function, inter alia , 
includes i) facilitating the extension of the Chapter by adding new Sectoral Annexes or increasing the 
scope of existing Sectoral Annexes;  ii) responding to any questions or resolving disputes relating to 
the Chapter or Sectoral Annexes;  iii) registeri ng, suspending or termin ating conformity assessment 
bodies;  and iv) developing a work programme or mechanisms for cooperation on technical issues of 
mutual interest. 
42. The Parties retain their rights to: i) adopt or  maintain mandatory requirements for national 
circumstances within their international rights an d obligations;  ii) determine the necessary level of 
protection to, inter alia , ensure the quality of its imports, or to  protect human, animal or plant life or 
health, or the environment;  and iii) subject to notification to the other Party and the TBT Joint 
Committee, withdraw from the market products which may not conform with their mandatory 
requirements, prohibit their placement on the market , restrict their free movement, recall products or 
initiate legal proceedings, or prohi bit their import (Article 8.8). 
43. Sectoral Annexes can be concluded by the Par ties, as appropriate, to implement the Chapter 
(Article 8.11).  One such Annex on electrical a nd electronic equipment was established through a 
letter exchanged between the Parties on 25 July 2005.
11    In addition, Annex 8A established an Annex 
on telecommunications equipment, which commits the Parties to implement Phases I and II of the 
APEC TEL Mutual Recognition Arrangement for C onformity Assessment of Telecommunication 
Equipment, based upon Korea's readiness.12  The provisions of Chapter 8 do not apply to this Sectoral 
Annex (paragraph 2 of Annex 8A). 
2. Safeguard mechanisms 
(a) Global safeguards 
44. The Parties maintain their rights and oblig ations under Article XIX of GATT 1994 and the 
WTO Agreement on Safeguards.  Safeguard actions  are not subject to the Agreement's dispute 
                                                      
11 The Parties indicate that the Annex on electrical and electronic equipment has been implemented and 
new certification bodies have been  registered by the Parties. 
12 According to Korea, the Parties are still consider ing Korea's readiness to implement Phase 1 of the 
APEC TEL Mutual Recognition Arrang ement for Conformity Assessment of Telecommunication Equipment. WT/REG210/3/Rev.1 
Page 20  
 
  settlement procedures (Article 6.5).  According to the Parties, a global safeguard measure taken by 
any of the Parties includes the imports from the other Party. 
(b) Bilateral safeguards 
45. As a result of the reduction or elimination of customs duties under the Agreement, if a good 
originating in one Party is  imported by the other Party in such increased quantities, in absolute terms 
or relative to domestic productio n, and under such conditions that the imports constitute a 
"substantial" (the Agreement does not define the word  "substantial") cause of serious injury, or threat 
thereof, to a domestic industry of the importing Part y, it may apply a bilateral safeguard measure.  
The Agreement follows the definitions of "serious injury", "threat of serious injury" and "domestic 
industry" in the WTO Agreement on Safeguards. 
46. Bilateral safeguards may take the form of (a) suspension of the further reduction of customs 
duty on the originating good;  or (b) increased cu stoms duty to a level not to exceed the lesser of 
either the applied MFN duty when the safeguard is taken or on the day immediately preceding the 
date of entry into force of the Agreement (Article 6.4.1).  The Parties incorporate Articles 3 and 4.2 of the WTO Agreement on Safeguards for investigation by their competent authorities (Article 6.4.2). 
47. Bilateral safeguards cannot be imposed for more than two years (compared to four years in 
the WTO Agreement on Safeguards), but can be extende d by up to two years (a total possible period 
of four years) if the competent authorities dete rmine that the measure continues to be necessary to 
prevent or remedy serious injury and to facilitate  adjustment and that th ere is evidence that the 
industry is adjusting (Article 6.4.4).  In the case that  the duration of the measure is over one year, the 
Party applying the measure must progressively libera lize it at regular intervals during the period of its 
application (Article 6.4.5). 
48. Although provisional measures may be taken under critical circumstances where delay would 
cause damage, the increased customs duty imposed as a result of such measure shall be promptly 
refunded if the investigation does not find the require ments have been met (Article 6.4.7) as inscribed 
in Article 6 of the WTO Agreement on Safeguards.   The duration of a provisional measure, which 
shall not be over 200 days, is also included in th e overall period of the safeguard (Article 6.4.7). 
49. The Party applying a measure is also required to  provide mutually agreed compensation to the 
other Party which shall be substan tially equivalent to the trade eff ects or the value of the additional 
duties from the measure.  The compensation shall be  agreed in 30 days through consultations.  If 
agreement cannot be reached within that time, the Party affected by the measure can take action with 
respect to goods originating in the other Party that have trade effects substant ially equivalent to the 
measure only for the minimum period necessary to achieve the effects (Article 6.4.8). 
(c) Special safeguards 
50. The Agreement contains no provisions on special safeguards. 
(d) Balance of payments safeguards 
51. The Parties may take measures to safeguard th eir balance of payments in accordance with 
Article XII of the GATT 1994 and the Understa nding on Balance-of-Payments Provisions of the 
GATT 1994.  The Party taking the measure shall pr omptly notify the other Party (Article 3.10).  WT/REG210/3/Rev.1 
 Page 21 
 
 
  3. Anti-dumping and countervailing measures 
52. The Parties maintain their rights and obliga tions under Article VI of GATT 1994 and the 
WTO Agreement on Anti-dumping and on Subsidies a nd Countervailing Measures;  however, actions 
taken under these provisions are not subject to disp ute settlement under the Agreement (Articles 6.2.1 
and 6.3).  All individual positive or negative ma rgins should be included when anti-dumping margins 
are calculated on the weighted average basis.  The Parties should apply the 'lesser duty' rule imposing 
a duty which is less than the dumping margin where such lesser duty would be adequate to remove the 
injury to the domestic industry (Article 6.2.3). 
4. Subsidies and State-aid 
53. The Agreement contains no specific provisions on subsidies and state-aid. 
5. Customs-related procedures 
54. The Parties apply Article VII of GATT 1994 and Part I (rules on customs valuation) of the 
Customs Valuation Agreement for the determinati on of the customs value of goods traded between 
the Parties (Article 3.5).  Regardless of its origin , the Parties may exempt or reduce a customs duty for 
a good that re-enters its territory after having been exported or temporarily exited from its territory to 
the territory of the other Party for repair or processi ng, regardless of whether such repair or processing 
could be performed in its own territory (Article  3.7).  Customs user fees are limited to the 
approximate cost of services provided and shall not cause indirect protection for domestic products or 
tax imports or exports for fiscal purposes (Article 3.9). 
55. Chapter 5 governs issues on customs related pro cedures and it especially contains a provision 
on 'implementation of obligations' (Art icle 5.14).  It includes details on, inter alia , procedures for 
importers to claim preferential tariffs (Article 5.3) , for the importing Party's customs administration to 
verify the preferential tariff (Article 5.7), for de nying preferential tariffs for a good (Article 5.9), and 
the areas of customs in which the Parties cooperate  with each other (Article 5.13).  The Chapter 
establishes an ad-hoc committee fo r resolving any issues following the exhaustion of consultations 
between the Parties (Article 5.15).  A mandatory re view of the certification system is foreseen in 
Article 5.17.13 
IV. TRADE IN SERVICES AND INVESTMENT 
A. SCOPE AND DEFINITIONS  
56. Trade in services liberalization is mainly gove rned by Chapter 9 on cross-border trade in 
services, which covers GATS modes of supply 1 (cross-border), 2 (consumption abroad), and 4 
(natural persons) (Article 9.1).  Measures falli ng under mode 3 (commercial presence) of the GATS 
are covered by Chapter 10 on investment.  However,  provisions on domestic regulation in Chapter 9 
(Article 9.11 ) apply to measures by a Party affecting th e supply of a service in its territory by 
investors or investments of the other Party (Article 9.2.5).  Further, Chapter 9 does not apply to:  financial services and government proc urement, which are separately covered in 
Chapters 12 and 16, respectively; subsidies or  grants; services provided in the exercise of 
non-commercial/non-competition based governmental aut hority; transportation and non-transportation 
air services except aircraft repair and maintenance services, the selling and marketing of air transport services, and computerized reservation system services (Article 9.2.3);  and measures of a Party with 
                                                     
 
13 An ad-hoc customs meeting was held on 14 January 2009, where the Parties exchanged their 
concerns and feedback on customs issues.  WT/REG210/3/Rev.1 
Page 22  
 
  respect to a national of the other Party seeking access to its employment market, or employed on a 
permanent basis in that Party (Article 9.2.4). 
57. Chapter 10 on investment applies to measures adopted or maintained by a Party relating to: 
investors of the other Party;  investments of investors of the other Party in the territory of a Party;  and 
all the investments in the territory of the Pa rty with respect to performance requirements 
(Article 10.7) and environmental measures (Article  10.18).  The Chapter does not take precedence in 
the case of inconsistency with any other Chapter;  the other Chapter prevails to the extent of the 
inconsistency.  The Chapter on investment does no t apply to measures adopted or maintained by a 
Party to the extent that they are covered by Chap ter 12 on financial services (Article 10.3).  The 
Chapter applies not only to investments after the entry into force of the Agreement, but also to 
investments which existed at the date of entry into force (Article 10.2.2). 
58. Both Chapters 9 and 10 follow a "negative list" approach:  therefore, all sectors or sub-sectors 
are assumed to be open to competition for nationals of  the other Party, both in terms of market access 
and national treatment, unless otherwise specified in  Annexes 9A (reservations for existing measures 
and liberalization commitments) and 9B (reservations for existing or future measures) which contain a 
list of the Parties' reservations.  However, fina ncial services liberalization takes a "positive list" 
approach which is separately inscribed in Annex 12A. 
B. D
ENIAL OF BENEFITS  
59. Subject to prior notification and consultation, a Party may deny the benefits of Chapters 9 or 
10 to a service provider or an investor from the other Party, respectively if that person is an enterprise "owned" or "controlled" by persons/investors of  a non-Party that has no substantive business 
operations in the other Party (Articles 9.12 and 10.17).  "Owned" and "controlled" are not defined 
under the Agreement.  According to the Parties, su ch definitions for Chapter 9 on cross-border trade 
in services are in accordance with Article XXVIII of the GATS. 
C. G
ENERAL PROVISIONS ON TRADE IN SERVICES AND INVESTMENT  
1. Market access 
60. Article 9.5 essentially reproduces the market access provisions of Article XVI of GATS with 
the exception of Article XVI:2(f) regarding limitati ons on the participation of foreign capital.  
Chapter 10 – Investment – currently does not have pr ovisions on market access.  However, the Parties 
exchanged letters on the possible applicability of Artic le 9.5 to a Party's measures affecting the supply 
of a service by investors of the other Party or investment by investors of the other Party in its territory.
14 
2. National treatment and MFN 
61. Article 9.3 on national treatment requires th at each Party accord to services and service 
suppliers of the other Party treatment no less favourab le than that it accords, in like circumstances, to 
its own services and service suppliers.  Chapter 10 on investment requires each Party to accord national treatment (Article 10.4), in like circumstan ces, to investors of the other Party and to their 
investments, with respect to establishment, acquis ition, expansion, manageme nt, conduct, operation, 
and sale or other disposition of investments.  National treatment in investment does not cover 
government procurement and subsidies (Article 10.9.4). 
                                                     
 
14 The Parties state there have been no developments to date in this regard.  WT/REG210/3/Rev.1 
 Page 23 
 
 
  62. The Chapters on trade in services or investment do not contain an obligation to grant the other 
Party MFN treatment.  However, when a Party lib eralizes the remaining restrictions listed in 
Annexes 9A-9C with a non-Party, it must afford ade quate opportunity to the other Party to negotiate 
treatment granted to the non-Party on a mutually ad vantageous basis and with a view to securing an 
overall balance of rights and obligatio ns (Articles 9.8.2 and 10.10.1). 
3. Local presence, performance requirements, and senior management and boards of 
directors 
63. The Parties shall not require each others' ser vice suppliers to establish or maintain a 
representative office or any form of enterprise, or to  be resident, in their territories as a condition for 
the cross-border supply of a service (Article 9.4). 
64. Article 10.7 prohibits performance requirements.  Accordingly, the Parties do not impose or 
enforce any of the following requirements, or any co mmitment or undertaking, with respect to the 
establishment, acquisition, expansion, management, conduct, operation, or sale or other disposition of 
an investment by an investor of a Party or of a non-Party in its territory: 
(a) to export a given level or percentage of goods or services; 
(b) to achieve a given level or pe rcentage of domestic content; 
(c) to purchase, use or accord a preference to goods produced or services provided in its 
territory, or from persons in its territory; 
(d) to relate in any way the volume or value of imports to exports or to the amount of 
foreign exchange inflows associ ated with the investment; 
(e) to restrict sales of goods or services produced or provided in its territory by relating 
them to the volume or value of its exports or foreign exchange earnings; 
(f) to transfer technology, a production pro cess or other proprietary knowledge to a 
person in its territory; or  
(g) to supply exclusively its goods and services from its territory to a specific region or 
world market. 
65. Regarding ((c), only services), (f) and (g) above,  the Parties reserve the right to impose 
conditions for the receipt, or continued receipt, of  advantages in connection with investment and 
business activities in its territory of an investor of the other Party or of a non-Party (Article 10.7.2).  The Parties also reserve the right to impose cond itions for the receipt, or continued receipt, of 
advantages on compliance with requirements to locate  production, provide a service, train or employ 
workers, construct or expand particular facilities,  or carry out research and development in their 
territory (Article 10.7.3).  The performance requirement s provision shall not be interpreted to derogate 
from the Parties' rights and obligations unde r the WTO TRIMs Agreement (Article 10.7.5). 
66. Article 10.8 prohibits restrictions concer ning the nationality of senior management.  
However, a Party may require a majority of the board  of directors, or any committee of directors, of 
an enterprise of that Party owned by an investor of the other Party to be of a particular nationality, or 
resident of the Party, provided that the requirement does not materially impair the investor to control 
its investment.  The provision does not appl y to government proc urement and subsidies 
(Article 10.9.4). WT/REG210/3/Rev.1 
Page 24  
 
  4. Movement of natural persons 
67. Chapter 13 contains additional provisions on th e movement of natural persons, particularly, 
the temporary entry of nationals fo r business purposes on a reciprocal basis (Article 13.2).  It does not 
apply to measures on nationality or citizenship, residence or employment on a permanent basis (Article 13.2) and permits the Pa rties to take measures to protect the integrity of their borders 
(Article 13.3.3).  The Chapter applies not only to trade in services, but also to trade in goods and 
investment activities in accordance with Annex 13A which lists three categor ies of business persons: 
intra-corporate transferees, traders and invest ors, and business visitors.  The last category 
encompasses service sellers;  short-term service suppliers;  investors of a Party or employees of an investor who are managers, executives or specia lists seeking temporary entry to establish an 
investment or to negotiate the sale of goods without involvement of direct sales to the public.  For all 
three categories, the Parties may not require labour market testing or other procedures of similar effect, or impose or maintain any numerical r estriction.  While prior approval procedures and 
petitions
15 are conditions to be met for temporary entry for the two categories of traders and investors 
and intra-corporate transferees, they cannot be requ ired for the category of business visitors.  Under 
the Chapter, short-term service suppliers are defi ned as persons seeking temporary entry to provide a 
service in: professional services, computer and related services, telecommunication services, financial services, and tour guides and translation services (Article 13.1).  
68. In terms of duration of stay, 90 days are gran ted for business visitors;  and an initial two years 
for: traders and investors and intra-corporate tran sferees which can be extended to eight years or 
possibly more.  Permission for re-entry is not requi red during the period of eligibility.  Singaporean 
business persons who intend to stay in Korea longer th an 90 days need to register with the competent 
immigration office.  Table IV.1 shows the breakdow n of the movement of natural persons between 
Korea and Singapore in 2005-2007.
 
Table IV.1 
Movement of Natural Persons By country 
2005 2006 2007 
To Korea To Singapore To Korea To Singapore To Korea To Singapore 
6,500  36,400 7,100  45,500  7,500  46,400 
Source: Data provided by Korea.  
 
69. A refusal to grant temporary entry is not nor mally subject to dispute settlement unless the 
matter involves a pattern of practice and the busine ss persons affected have exhausted the available 
domestic administrative remedies (Article 13.6). 
5. Recognition 
70. Article 9.10 contains provisions  on recognition of standards or criteria for the authorization, 
licensing, or certification of services suppliers  which essentially mirror the provisions of 
GATS Article VII.  Further, Annex 9D specifies me asures adopted or maintained by a Party relating 
to the licensing or certification of professional service  providers with the aim of reducing or gradually 
eliminating barriers in professional services.  The Annex sets guidelines on developing professional 
standards between the Parties towards mutual recognition regarding education, examinations, 
experience, conduct and ethics, professional developmen t and recertification, scope of practice, local 
knowledge, and consumer pr otection.  The Agreement's review mechanism envisages receiving 
                                                      
15 According to the Parties, the "petitions" system allows only non-citizens who have obtained a 
contract with an employer with the approval of the relevant agency, to apply for a visa.  In Singapore, the 
Immigration and Checkpoints Authority (ICA) currently does not require such petitions.  WT/REG210/3/Rev.1 
 Page 25 
 
 
  recommendations on mutual recognition and implemen ting them within a mutually agreed time 
period.16  Meanwhile, the Parties encourage their re levant bodies to develop procedures for the 
temporary licensing of professional service providers from the other Party.  The Parties agree to increase the number of recognized universities, part icularly for professional engineers: Korea will 
recognize two Singapore universities, while 20 Ko rean universities will be recognized by Singapore.
17    
The Annex will be periodically reviewed  for progress in its implementation. 
6. Domestic regulation 
71. Article 9.11 contains rules governing the treat ment of applications for authorization, 
which mirror Article VI of the GATS.  The releva nt criteria for measures relating to qualification 
requirements and procedures, technical standards, and licensing requirements are the same as those 
stipulated in the negotiating mandate under Article VI:4 of the GATS (e.g. objectivity, transparency, 
and not unnecessarily burdensome).  Referring to the negotiations at the multilateral level, the Parties 
agree to review the results with a view to their incorporation into the Agreement (Article 9.11.5). 
7. Monopolies and exclusive service suppliers 
72. Provisions on monopolies and exclusive service suppliers incorporate Article VIII of the 
GATS in the Agreement (Article 9.13). 
8. Transfers/Balance of Payment 
73. The Parties agree not to apply restrictions on in ternational transfers and payments for current 
transactions except where they are in serious balance of payments and external financial difficulties or 
threat (Article 9.15.1).  In line with this, they reaffirm their rights and obligations on payments and 
transfers under Article XI of the GATS and balance- of-payments exceptions under Article XII of the 
GATS (Article 9.16).  The Parties also agree not to impose restrictions on any capital transactions 
inconsistently with their obligations under the Chap ter on trade in services, apart from for balance-of-
payments reasons, or at the request of the International Monetary Fund (Article 9.15.2). 
74. All transfers relating to an investment of a Pa rty, listed in Article 10.11.1, are freely permitted 
by the other Party apart from the situations of: some general exceptions as indicated in 
Article 10.11.3;  and serious balance of payments a nd external financial difficulties or threat, or in 
exceptional circumstances, payments and capital move ments between the Parties cause or threaten to 
cause serious difficulties in the operation of moneta ry or exchange rate policy in either Party, 
consequently, a Party may take safeguard measures (Article 10.12).  However, the initiation of 
safeguard measures is restricted accordi ng to the conditions in Article 10.12.2. 
D. NON-CONFORMING MEASURES  
75. Under the Agreement, reservations and non-conforming measures with respect to 
cross-border trade in services (Article 9.6) are spec ified in relation to the obligations of national 
treatment, local presence and market access;  and in the case of investment (Article 10.9), for 
measures relating to national treatment, performance requirements and senior management and boards 
of directors.  Non-conforming measures on existing and existing or future measures, are set out in 
Annexes 9A and 9B respectively.  With respect to  the market access obligation (Article 9.5), the 
Parties have the right, within two years after the entr y into force of the Agreement, to modify or add 
                                                      
16 According to the Parties, the issue of mutual r ecognition of professional service providers was raised 
at a review meeting in 2009 and is still under consideration. 
17 Korea has recognized two Singapore universities wh ile, Singapore has recognized six from Korea so 
far.  Granting recognition for the remaining 14 Korean universities is still being considered by Singapore. WT/REG210/3/Rev.1 
Page 26  
 
  reservations to Annex 9A, provided that the measu res had been in place before the Agreement was 
signed (Article 9.14.3).
18  Domestic regulation shall not apply to the non-conforming measures in 
Annexes 9A and 9B (Article 9.6.3). 
76. Subject to three months advance written notifica tion, the Parties may modify or add to their 
non-conforming measures in Annex 9A or add ne w sectors, sub-sectors or activities to their 
reservations in Annex 9B.  At the request of the affect ed Party, consultations shall be held with a view 
to reaching an agreement on any necessary adju stment to maintain the overall balance of 
commitments taken by each Party.  If the Parties are not able to reach agreement on the necessary 
adjustment, the issue can be referred to the Agreement's dispute settlement mechanism 
(Article 9.14.1).   
77. Tables IV.2 and IV.3 summarize the limitati ons on existing non-conforming measures in 
services and investment for Korea and Singapore, resp ectively.  Both countries have listed limitations 
in:  some professional services;  telecommunications services;  distribution services;  education services;  and transport services.  Korea has also listed limitations in construction and related engineering services;  environmental services;  and recreational, cultural and sporting services, 
whereas Singapore has listed limitations in health -related and social services and power and gas 
related services.  Korea's health-related and social services, electric energy and gas industry are listed 
under existing or new non-conf orming measures in Annex 9B. 
Table IV.2 
Non-conforming measures listed by Korea in Annex 9A 
Sector Obligations  Mode Description 
All sectors NT I Advanced report to the Minister of Commerce, Industry and Energy 
on the intention to invest. 
All sectors PR I Requirement to employ di sabled persons in a business with more 
than a particular number of workers (currently 50 or more). 
All sectors NT/LP/MA/ 
PR/SMBD CBTS/I All existing non-conforming measures at the local government level. 
Business Services    
Patent attorney  LP/MA CBTS/I Training/registration/establishment requirements. 
Architectural services LP CBTS Licence/es tablishment/registration requirements. 
Architectural, engineering and 
other technical, other education, 
and other human health services - 
industrial safety and health institutions LP CBTS Establishment/manpower, facilities and equipment requirements.  
Designation requirements by the Di rector of the Regional Labour 
Office in charge of the area that the business of occupational safety-
health service instit utions is located. 
Architectural, engineering and 
other technical services - industrial safety and health consulting LP CBTS Office (or local address)/qualif ication/registration requirements for 
consulting services in industrial safety or hygiene. 
Surveying business services LP CBTS Establishment and registration requirements. 
Advertising services PR/SMBD I Only Korean nationa ls are eligible to be the representative, chief 
programmer of an electric billboard operator, or the representative or member of the Board of Directors of the Korea Broadcasting 
Advertising Corporation.  Mi nimum non-profit advertisement 
requirements for electric billboard broadcasting services. 
Engineering services – traffic 
impact assessment agency LP CBTS Licence/establishment/registration requirements. 
Engineering, integrated 
engineering, and testing & analysis 
service of physical properties 
services LP CBTS Establishment/registration requirements for safety checks and 
precision safety diagnosis of serv ices facilities;  quality control 
testing/inspection of construction work services;  and supervisory 
services for construction works. 
Veterinary services LP/MA CBTS Licence/ establishment/reporting requirements. 
Real estate services LP CBTS Licence/establishm ent/registration requirements for real estate 
brokerage and real estate  appraisal services.   
Table IV.2 (Cont'd)  
                                                      
18 According to the Parties, there are no modifications or additions, to date.  WT/REG210/3/Rev.1 
 Page 27 
 
 
  Sector Obligations  Mode Description 
Job placement services, labour 
supply and worker dispatch 
services LP CBTS Minimum office size requireme nt for fee-charging job placement 
services, labour supply services and worker dispatch services.  
Registration requirement for fee-ch arging job placement services.  
Authorization from the Minist er of Labour for labour supply 
businesses and worker dispatch services. 
Investigation and security services LP/MA CBTS Licence requirement.  Mandatory equipment with security 
personnel, capital and necessary facilities for legal entity of guarding and other protective services or private security services. 
Mandatory permission from the local police office for private 
security business. 
Research services NT CBTS/I Six month prior reque st requirement for conducting research in the 
juridical waters of Korea.  Authorization requirement for activities 
in territorial waters and in th e Exclusive Economic Zone by the 
Minister of Maritime Affairs and Fisheries. 
Services relating to agriculture and 
livestock NT I Korean citizenship requirement for investing in the rice or barley 
industry.  Limitation of less than 50% of the shares or stocks of legal entities engaged in beef cattle  farming or the wholesale of 
meat. 
Planning and forecasting in energy 
consumption LP/MA CBTS Mandatory submission of "energy consumption plan" to the relevant 
Ministry before establishing en ergy-using company or facility.  
Registration requirement for energy using/saving companies. 
Taxation services MA/LP CBTS Licence/registration/training/office requirements.   
Other taxation (customs) services MA/LP CBTS Training/re gistration/examination/licence requirements for customs 
brokers.  Limitation on the number of offices (one for a customs 
broker). 
Accounting, auditing and book-
keeping services LP/MA CBTS Examination/field experience requirements.  Establishment 
requirement for auditing services. 
Certified labour affairs consultant LP CBT S Licence/training/registration requirements. 
Proprietor of engineering activities 
services LP CBTS Licence/establishment/registration requirements. 
Technical testing and analysis 
services LP/MA CBTS/I Qualification requirement. 
Communication services    
Courier services LP CBTS Mandatory report to th e Minister of Construction and Transportation 
for operating commercial documents delivery business.  Office 
establishment/operation of business report requirements for juridical 
persons. 
Basic telecommunication services NT/LP/MA CBTS/I Limitation on stocks held by foreign govern ment or foreigner.  Only 
a  Korean national can establish a radio station.  Commercial arrangement requirement for pe rsons who intend to provide 
facilities-based telecom services from abroad without a local 
presence. 
Audiovisual services - motion 
picture projection service NT/PR I Minimum projection time of 146 days per year for Korean movies. 
Construction and related 
engineering services    
Construction services LP/PR CBTS/I Establishment/regis tration requirements.  Establishment requirement 
prior to the signing of the first contract.  Partial subcontracting 
requirement for construction work exceeding two billion Korean 
Won. 
Construction machinery business services - renting, maintenance and 
repair, sales and disassembly of construction equipment LP CBTS Report/establishment requirements. 
Distribution services    
Retailing services LP/MA CBTS Licence/establishment requirements for supply and retail of 
pharmaceuticals to the public.  Sales are only allowed in 
pharmacies. 
Sales of agricultural raw materials and live animals on a fee or contract basis;  wholesale trade 
services of agricultural raw 
materials and live animals NT/MA/LP CBTS/I Limitations on operators of markets for selling these products. 
Table IV.2 (Cont'd)  WT/REG210/3/Rev.1 
Page 28  
 
  Sector Obligations  Mode Description 
Education services    
Higher education services NT/MA/LP/ 
SMBD CBTS/I Nationality requirement for at least 50% of the members of the 
board of directors of private schools (exceptions in the case of 
contributing to the basic property of a university).  Only Technological or Intra- Company Universities are to be established 
in the Seoul Metropolitan Area.  Possible restriction on the total 
number of students for each school.  Possible collaboration in junior 
colleges, universities and industr ial universities with foreign 
universities in some fields.  
Adult education services NT/MA CBTS/I Limitations on th e types of adult education institutions that can be 
established by foreigners.  Possi ble regulation on tuition rates.  
Possible restrictions on establishment or expansion of such institutions in the Seoul Metropolitan Area. 
Vocational competency development training services LP CBTS Mandatory approval from the Minister of Labour if a vocational 
competency development training institution wants to receive financial supports for training cost s and loans for training from the 
employment insurance. 
Environmental services    
Air quality monitoring/control;  
water quality monitoring;  sewage 
treatment;  waste collection/disposal services;  noise 
vibration monitoring and 
abatement;  environmental impact assessment;  and toxic chemical 
dealing services LP CBTS Qualification/establishm ent/registration requirements. 
Air quality control;  sewage 
treatment;  waste 
collection/disposal services;  and toxic chemical dealing services MA CBTS Possible limitations on the qualif ication of a service agency and on 
areas for refuse collection and tran sport services pursuant to Korean 
laws. 
Recreational, cultural and sporting services    
News agency services NT/MA/PR/
SMBD CBTS/I Report requirement in the case of  foreign funding for a news 
agency.  Nationality/domicile requi rements.  Foreign participation 
limited to 25%.  Permission required to establish a branch or district 
office.  Nationality requirement fo r establishing a wireless station. 
Printing, publishing services;  
motion pictures and video tape 
production and distribution services;  and other entertainment 
services NT/MA CBTS Mandatory recommendation from the Minister of Culture and 
Tourism for importing publications issued by North Korea or 
anti-national groups;  and novels, comics, photo albums, pictorial 
series and magazines.  Mandatory recommendation from the Korea 
Media Rating Board for importing fo reign movies, sound recordings 
manufactured abroad on a commercial basis or foreign sound recordings manufactured domestically. 
Transport services    
Air transport services (including 
glider towing, parachute jumping, 
aerial construction, heli-logging, 
aerial sightseeing, etc.);  and rental services of aircraft with operator NT/SMBD I Nationality requirement for providing domestic or international 
services and for registering aircrafts. 
Aircraft use business - part of rental services of aircraft with operator NT/SMBD I Nationality requirement for registering aircraft. 
Air transport services - part of 
aircraft maintenance and repair 
services LP CBTS Registration/certificate/busine ss place requirements for operating an 
aircraft maintenance and repair services. 
Air transport services - sale of air transport LP CBTS An office must be established prior to the submission of documents 
for conducting business of acting as an agent in concluding 
international air service contracts for transport of passengers or 
cargo for fee using an aircraft on be half of a person who operates an 
air transport service business. 
Road transport services - leasing or rental services concerning private cars and other land transport 
equipment without operators LP CBTS Establishment/registration requirements for automobile rental 
business. 
Road transport services - maintenance & repair, sales and 
disassembly LP/MA CBTS Establishment/registration requi rements.  Registration is subject to 
certain conditions. 
Road transport services  - scheduled inspection of 
automobiles LP/MA CBTS Establishment requirement for designation as a maintenance 
operator. 
Table IV.2 (Cont'd)   WT/REG210/3/Rev.1 
 Page 29 
 
 
  Sector Obligations  Mode Description 
Road transportation services - 
automobile license plate issuing 
agency LP/MA CBTS Establishment requirement for designation as a license plate issuing 
agency. 
Water transportation - passenger transportation;  freight 
transportation;  rental service of 
sea-going vessels with operator;  towing and pushing services;  and 
transportation service by sea-going 
vessels NT/LP/MA/ 
SMBD CBTS/I Requirement for registering vesse ls subject to nationality conditions.  
Reservation on cabotage.  Licence  requirement for international 
maritime passenger transport.  On ly Korean seafarers may board a 
Korean vessel.  
Water transportation -maritime 
auxiliary services NT/LP/MA CBTS Nationality requirement (e ither national or corporations) for 
maritime pilots, rescuing wrecked ships, ship scrapping or vessels 
inspections.   
Others    
Manufacture of biological products PR  I Manufacturers of blood products mu st receive supplies of raw blood 
materials through a contract with the Korean National Red Cross. 
Manufacturing and distribution 
services - tobacco and liquor LP/PR/MA CBTS/I Establishment/registration requirements for tobacco wholesalers and 
foreign tobacco importers.  Establishment/licence requirements for 
tobacco retailers, liquor manufacturer s and wholesalers.  Limitations 
on the number of liquor wholesalers.   Prohibition of on-line sales of 
alcohol except traditional liquors. 
Note: CBTS: Cross-border trade in services;  I: Investment;  LP: Local presence require ments;  PR: Performance requirements;  
NT:  National treatment restriction;  MA: Market access rest riction;  SMBD: Senior manage ment and boards of directors 
restriction. 
 
Source : Annex 9A, the Free Trade Agreement between Korea and Singapore. 
 
Table IV.3 
Non-conforming measures listed by Singapore in Annex 9A  
Sector Obligations Mode Description 
All NT I Limitation on financial institu tions extending credit above 5 million 
Singapore dollars.  
All NT I Limitation on foreign share holdings in PSA Corporation to 49% 
All NT I Equity ownership limits: Si ngapore Technologies Engineering (15%), 
PSA Corp (5%), Singapore Airlines (5%), and Singapore Power, 
Power Grid, Power Supply, and Power Gas (10%) 
All NT I Possibility of divesting Stat e land in a manner inconsistent with 
National Treatment.  However, Singapore will endeavour not to 
expropriate land or property belongi ng to Korean investors for two 
years after the entry into force of  the Agreement.  If expropriation 
occurs, Singapore committed to comp ensate the investor based on the 
current market value (Singapore's le tter to Korea dated 25 July 2005). 
All NT CBTS/I Registration/residency requi rements for businesses without appointing 
a local manager. 
Business services    
Architectural services NT/LP CBTS/I Licensing requirement. 
Financial auditing services NT/LP CBTS/ I Registration/residency requirements. 
Land surveying services NT/LP CBTS/I Registration/licensing requirements. 
Patent Agent services NT/LP CBTS/I Registration/residency requirements. 
Placement/supply of personnel LP CBTS Local Presence requirement. 
Professional Engineering services NT/LP CBTS/I Registration/residency/licensing requirements. 
Real Estate services MA/NT CBTS/I Only Sentosa Development Corporation may develop and manage 
resort island of Sentosa, its wa terways and Singapore's Southern 
Islands.  However, private develope rs may develop specific plots of 
land on Sentosa and the Southern Is lands for commercial, residential 
and recreational purposes. 
Testing/analysis/certification of 
animals, plants, and products 
derived from animals and plants LP CBTS Local presence requirement, including the items which are intended 
for import, export and import for the purposes of re-export. 
Investigation and security services NT/MA/ 
SMBD CBTS/I Only Singaporeans and Malaysians can be employed as security 
guards or as private investigators in enterprises. 
Contact lens practitioners LP CBTS Residency requirement. 
Nursing, physiotherapeutic and para-medical services LP CBTS Registration/residency requirements. 
Medical services NT/LP CBTS Registration/reside ncy requirements.  Six years of conditional 
registration is required for non-Singaporeans. 
Table IV.3 (Cont'd)  WT/REG210/3/Rev.1 
Page 30  
 
  Sector Obligations Mode Description 
Communication services    
Telecommunications services MA/NT/LP CBTS Incorporati on for facilities-based and se rvice-based operators under 
Singapore Companies Act. 
Telecommunication services MA/NT/LP CBTS A registrar must be a company incorporated or a foreign company 
registered under the Singapore Companies Act. 
Distribution services    
Retailing and wholesale trade 
services NT CBTS/I Local agent required to suppl y wholesale, retail and distribution 
services for medical and health -related products and materials. 
Distribution/sale of hazardous 
substances LP CBTS Local presence required to di stribute and sell hazardous substances. 
Education services    
Higher education services for the 
training of doctors NT I Only local tertiary institutions may operate undergraduate or graduate 
programmes for training of doctors. 
Health related and social services    
Pharmacy services LP CBTS Registration/residency requirements. 
Transport services     
Air transport services: 
passengers/freight transportation by air NT I Compliance with the "effectiv e control" and/or "substantial 
ownership" requirements of Singapore 's bilateral and multilateral air 
services agreements. 
Maritime transport;  cargo handling;  pilotage services;  and 
supply of desalinated water to 
ships berthed at Singapore ports or in Singapore territorial waters MA/NT CBTS/I Licensing requirement for providing cargo handling services.  PSA 
Marine (Pte) monopoly to provide pilotage services and supply 
desalinated water to ships berthed at  Singapore's ports or its territorial 
waters. 
Maritime transport services MA/NT/LP CBTS/I Licensing requirement for operating and managing cruise and ferry 
terminals. 
Maritime transport services NT CBTS/I Nationality requi rement to register a ship under the Singapore flag. 
Maritime transport services NT CBTS Citizens and permanent residents only may register as Singapore 
seamen. 
Others    
Power supply MA/NT CBTS Restriction for pow er producers to sell power only through the 
Singapore electricity wholesale market. 
Power supply MA/NT CBTS/I Monopoly for SP Services to supply electricity. 
Power transmission/distribution MA/NT CBTS/I Monopoly for Power Assets Ltd as transmission licensee. 
Production, retail, transportation,  
distribution of manufactured and 
natural gas MA/NT CBTS/I Only City Gas Ltd produces and retails manufactured gas.  Only 
Power Gas Ltd transports and dist ributes manufactured and natural 
gas.  Only Power Gas Ltd owns and operates the gas pipeline. 
Manufacturing NT/PR I Manufacturing beer and stou t;  cigar;  drawn steel products;  chewing 
gum;  cigarettes;  and matches may be subject to certain restrictions 
which are inconsistent with NT and PR obligations. 
Import, export and trading 
services LP CBTS Local presence requirement. 
Community, personal and social 
services NT/LP/ 
SMBD CBTS/I Foreigners may be allowed to hold office or be members of the 
management committee of a co-operative society, on a case by case 
basis. 
Note: CBTS: Cross-border trade in services;  I: Investment;  LP : Local presence requirements;  MA: Market access restriction;  
MFN: Restriction to MFN treatment;  NT: National treatment rest riction;  PR: Performance requirements;  SMBD: Restrictions 
affecting senior management  and board of directors. 
Source: The Free Trade Agreement between Korea and Singapore, Annex 9A. 
 
78. Tables IV.4 and IV.5 summarize the content of Annex 9B where Korea and Singapore have 
reserved the right to adopt or maintain existing or  future measures.  In general, both countries 
preserve similar sectors as contained in the ex isting non-conforming measures above.  Some 
professional business services (e.g. credit reporting services, real estate services, legal services, and 
printing and publishing services);  communication services;   distribution services;  education services;  
transport services;  some other services (e.g. betting and gambling services) are reserved by both Parties. 
 
 
   WT/REG210/3/Rev.1 
 Page 31 
 
 
  Table IV.4 
Non-conforming measures listed by Korea in Annex 9B 
Sector   Obligations Mode Description 
All sectors NT/MA/LP CBTS/I Any measure pertaining to supply of a service by presence of, or 
movement of natural persons including immigration, entry or temporary 
stay, is subject to the provisions of Chapter 12 (temporary entry of business persons). 
All sectors NT I Authorization required fo r non-residents receiving or borrowing certain 
amounts of Won-denominated loans or securities from residents. 
Authorization required for short-term financial credit from non-residents to 
a financially unsound domestic enterp rise.  Authorization required for non-
residents receiving foreign currenc y denominated financial credits, 
guarantees or collaterals from reside nts.  Authorization required for a non-
resident to transact with derivatives not permitted by domestic laws.   
All sectors NT/LP/MA/PR
/SMBD CBTS/I Any measure pertaining to cross bord er trade in services and investments 
in the defence industry.  Prior permission required for acquiring outstanding shares (except newly issu ed shares) of the defence industry. 
All sectors NT/PR/SMBD I Reserve rights to prohibit or restrict ownership of interests or assets in an 
existing state-owned or government entity  in electricity and gas industries. 
All sectors NT I Any measure pertaining to land acquisition by foreigners. 
All sectors MA/NT/LP/PR
/SMBD CBTS/I Any measure affecting the full or pa rtial devolvement to the private sector 
of services provided in the exer cise of governmental authority. 
Business services    
Agricultural and 
manufacturing services NT/LP/MA/PR
/SMBD CBTS/I Any measure pertaining to agricultural and manufacturing services. 
Credit reporting services NT/LP/MA/PR
/SMBD CBTS/I Any measure affecting the supply of credit reporting services. 
Insolvency and 
receivership services NT/LP/MA/PR
/SMBD CBTS/I Any measure pertaining to investment company for corporate restructuring.  
Establishment/registration requirements for Corporate Restructuring Cooperative under certain conditions. 
Real estate services - development and supply, management, sales and rentals NT/LP/MA CBTS/I Any measure relating to real estate services. 
Printing and publishing 
services NT/MA/PR/ 
SMBD CBTS/I Any measure affecting publishing or  printing of periodical, including but 
not limited to, restrictions on share holdings, marketing and management 
control. 
Services incidental to fishing NT/LP/MA/PR
/SMBD CBTS/I Reservation of the right to cont rol the fisheries activities of foreign 
nationals or foreign legal entities in the Exclusive Economic Zone (EEZ). 
If a foreign national or legal entity invests above 50% in a corporation 
established pursuant to the relevant  Korean law for running a fishing 
industry, the head of the local gove rnment needs to shall consult in 
advance with the Minister of Ma ritime Affairs and Fisheries. 
Reciprocity principle for imposition of  prohibitions or restrictions on 
foreigners' acquisition of fishing rights in Korea. 
Legal services NT/LP/MA/ 
SMBD CBTS/I Any measure pertaining to owne rship, partnership, nationality of 
executives and directors and the scope of provision of services. 
Communication services    
Postal services NT/LP/MA CBTS/I Any measure relating to operation and provision of postal services by 
foreigners, except private courier se rvices relating to five types of 
commercial documents. 
Broadcasting services NT/LP/MA/PR
/SMBD CBTS/I Any measure pertaining to broadcasti ng services and foreign investment in 
the broadcasting services sector. 
Distribution services    
Distribution services NT/LP/MA/PR
/SMBD CBTS/I Any measure pertaining to commissi on agents' services for agricultural raw 
materials, live animals, food produc ts, beverages, and wholesale trade 
services for grain, meat, poultry, grai n powder, red ginse ng and fertilizer.   
Trade services NT/LP/MA/PR
/SMBD CBTS/I Any measure pertaining to the supply  of prohibited or restricted imports.  
Any measure to modify/increase the list of products subject to import 
prohibition or restriction. 
Table IV.4 (Cont'd)  WT/REG210/3/Rev.1 
Page 32  
 
  Sector   Obligations Mode Description 
Education services NT/MA CBTS/I Any measure pertaining to primar y/secondary/higher education, health and 
medical-related/degree-conferring adu lt education, adult education via 
broadcasting, vocational training serv ices provided by institutions under 
authority delegated, or financially supported, by the government and other 
education services. 
Environmental services MA/NT/LP/PR CBTS/I Any measure pertaining to envi ronmental services in the listed sub-sector 
and industry classification. 
Health related and social 
services NT/LP/MA/PR
/SMBD CBTS/I Any measure pertaining to social services sector for public purpose. 
Transport services    
Land transport services and 
related auxiliary services NT/LP/MA/PR CBTS/I Any measure pertaining to la nd transport (passengers/cargo) and transport 
support/auxiliary services. 
Transportation by non-sea-going vessels and transportation via space NT/LP/MA/ 
SMBD CBTS/I Any measure pertaining to transportation by non-sea-going vessels and 
transportation via space. 
Warehousing business for agricultural, fishery and livestock products NT/MA/LP/PR
/SMBD CBTS/I Any measure pertaining to grain management services. 
Others    
Electric energy NT/LP/MA/PR
/SMBD CBTS/I Any measure pertaining to priva tization of the electric power industry 
including generation, transmission, distribution and sales.  Maximum 
foreign investment of up to 40% in  Korea Electric Power Corporation 
(KEPCO).  Maximum foreign investme nt of up to 50% in transmission, 
distribution and sales (nationality require ment for the largest shareholder).  
Prohibition on foreign investors from operating an electric power business 
including generation, transmission, di stribution and sales.  Any measure 
with respect to power transmission, distribution and sales from 
neighbouring countries.  Capital/ manpower/equipment requirements. 
Gas industry NT/LP/MA CBTS/I Any measure pertaining to  the gas industry.  Maximum foreign individual 
ownership of up to 15% (30% on aggregate) in Korea Gas Corporation (KOGAS). 
Nuclear industry NT/LP/MA/ 
SMBD CBTS/I Any measure pertaining to the nuc lear industry.  Pr ohibition on foreign 
investors from operating or inves ting in a nuclear power generation 
business. 
Sports and recreational 
sports facility operation 
services, gambling and betting services NT/LP/MA/PR
/SMBD CBTS/I Any measure pertaining to gambling and betting.   
Arms and explosives NT/LP/MA/PR
/SMBD CBTS/I Any measure pertaining to the arms and explosives sector. 
Services furnished by trade 
unions MA/NT/LP/PR
/SMBD CBTS/I Any measure affecting services provided by trade unions. 
Minority affairs NT/LP/PR/ 
SMBD CBTS/I Any measure pertaining to rights or preference to socially or economically 
disadvantaged minorities. 
National electronic system, including but not limited to geographical information 
system NT/LP/MA/PR
/SMBD CBTS/I Any measure pertaining to geograp hical information system and other 
value-added services through the use of the system.  Any measure affecting the administration and operation of any national electronic system. 
Note: CBTS: Cross-border trade in services;  I: Investment;  LP :  Local presence requirements;  MA: Market access restriction;  
NT:  National treatment restriction;  PR : Performance requirements;  SMBD: Restrictions affec ting senior management and 
board of directors. 
 
Source: The Free Trade Agreement between Korea and Singapore, Annex 9B. 
 
 
 
 
 
 
 
 
 
  WT/REG210/3/Rev.1 
 Page 33 
 
 
  Table IV.5 
Non-conforming measures listed by Singapore in Annex 9B 
Sector   Obligations Mode Description 
All sectors NT/MA/LP CBTS Measures with respect to  the supply of services  through the presence of 
natural persons are subject to the provisions of Chapter 12 (temporary 
entry of business persons). 
All sectors NT/LP/MA/PR
/SMBD CBTS/I Any measure pertaining to the provi sion of health services by government 
owned or controlled healthcare institu tions, social security and public 
training. 
All sectors MA/NT/LP/PR
/SMBD CBTS/I Any measure affecting full/partial devolvement of services provided by  
the Singapore Government, and divest ment of equity interests in 
enterprises wholly or partially owned by the Singapore Government. 
Business services    
Credit reporting services NT/LP/MA/PR
/SMBD CBTS/I Any measure affecting the supply of credit reporting services. 
Real estate services NT/LP/MA/PR
/SMBD CBTS/I Any measure affecting real estate services. 
Armed escort/guard 
services MA/NT/LP/PR
/SMBD CBTS/I Any measure affecting the provision of armed escort, armoured car and 
armed guard services. 
Legal professional services MA/NT/LP/PR
/SMBD CBTS/I Any measure affecting the supply of legal services in Singapore. 
Medical/pharmacy services MA CBTS Quota on doctors  and pharmacists who can practice in Singapore. 
Services provided by 
health-related professionals NT CBTS/I Measures related to recognition of educational/profe ssional qualifications 
for admission, registration etc. of health professionals. 
Distribution, publishing, printing of newspapers MA/NT/LP/PR
/SMBD CBTS/I Any measure affecting publishing or  printing of newspapers, including but 
not limited to, shareholding lim its and management control. 
Communication services    
Postal services MA/NT/LP/PR CBTS/I Only Singapore Post Pte. Ltd. is allowed to convey letters, postcards and 
services of receiving, collecting, se nding, dispatching,  and delivering. 
Express letters courier 
services MA/NT/LP/PR
/SMBD CBTS/I Any measure that accords treatme nt to persons of the other Party 
equivalent to any measure adopted or maintained by the other Party 
affecting the supply of expre ss letter and courier services. 
Telecommunication 
services MA/NT CBTS/I Foreign ownership restriction in facilities-based basic telecommunication 
services up to the same foreign ownership limit that Korea sets. 
Broadcasting services MA/NT/LP/PR
/SMBD CBTS/I Any measure affecting broadcas ting services receivable by Singapore's 
domestic audience. 
Distribution, commission, 
wholesale, retail, 
franchise MA/NT/LP/PR
/SMBD CBTS/I Any measure affecting the supply of any products subject to import 
prohibition or non-automatic import licensing. 
Education services MA/NT/LP/PR
/SMBD CBTS/I Any measure affecting supply of primary, general se condary and higher 
secondary education servi ces for Singapore nationals. 
Environmental services MA/NT/LP/PR
/SMBD CBTS/I Any measure affecting waste wate r management, including but not limited 
to collection, treatment and disposal of waste water. 
Transport services    
Maritime transport services MA/NT/LP/PR
/SMBD CBTS/I Any measure affecting certain serv ices in maritime transport services. 
Air transport services – 
computer reservation 
systems MA/NT/LP/PR
/SMBD CBTS/I Any measure pertaining to the suppl y of computer reservation systems. 
Air transport services NT/MA/LP/PR
/SMBD CBTS/I Measures pertaining to the divestme nt of the administrator and operator of 
airports. 
Land transport services – rail freight transportation, supporting services for rail 
transport services MA/NT/LP/PR
/SMBD CBTS/I Any measure affecting the supply of public transport services, rail freight 
transportation and supporting services for rail transport services 
Land transport services – public transport services MA/NT/LP/PR
/SMBD CBTS/I Any measure affecting supply of public transport services. 
Land transport services and 
services auxiliary to all modes of transport MA/NT/LP/PR
/SMBD CBTS/I Any measure that accords treatme nt to persons of the other Party 
equivalent to any measure adopted or maintained by the other Party 
relating to the provision of storage and warehousing, freight forwarding, 
inland trucking, container station, and depot services by Singaporeans. 
Others    
Defence NT I Any measure relating to reten tion of a controlling interest by the Singapore 
Government in Singapore Technologies Engineering. 
Social services MA/NT/LP/PR
/SMBD CBTS/I Any measure affecting the supply of social services. 
Supply of potable water for 
human consumption MA/NT/LP/PR
/SMBD CBTS/I Any measure pertaining to the supply of potable water. 
Table IV.5 (Cont'd) 
 WT/REG210/3/Rev.1 
Page 34  
 
  Sector   Obligations Mode Description 
Betting and gambling 
services MA/NT/LP/PR
/SMBD CBTS/I Any measure affecting the suppl y of betting and gambling services. 
Arms and explosive MA/NT/LP/PR
/SMBD CBTS/I Any measure affecting the arms and explosives sector. 
Services furnished by trade 
unions MA/NT/LP/PR
/SMBD CBTS/I Any measure affecting services provided by trade unions. 
Admin of national 
electronic system MA/NT/LP/PR
/SMBD CBTS/I Any measure affecting administration/ operation of any national electronic 
system containing Government  proprietary information. 
Sewage and refuse 
disposal, sanitation and 
other environmental 
protection services – water waste management MA/NT/LP/PR
/SMBD CBTS/I Any measure affecting waste water management. 
Note:  CBTS: Cross-border trade in services;  I: Investment;  LP:  Local presence requirements;  MA: Market access restriction;   
NT:  National treatment restriction;  PR : Performance requirements;  SMBD: Restrictions affec ting senior management and 
board of directors. 
 
Source: The Free Trade Agreement between Korea and Singapore, Annex 9B. 
 
E. ADDITIONAL COMMITMENTS  
79. The Parties may negotiate additional commitments relating to trade in services including 
qualifications, standards or licensing matters.  Su ch additional commitments on maritime transport 
services are contained in Annex 9C.  
F. FURTHER LIBERALIZATION  
80. The Parties agreed to engage in further libera lization in trade in services and investment to 
reduce or eliminate the remaining restrictions in the two Annexes and broade n the scope of additional 
commitments in trade in services (Articles 9.8.1 and 10.10.2). 
G. LIBERALIZATION COMMITMENTS IN SELECTED SERVICES SECTORS  
1. Communication services 
81. The Agreement contains a separate Chapter on telecommunication services (Chapter 11) 
which prevails over other Chapters of the Ag reement to the extent of any inconsistency 
(Article 11.12).  The Chapter is based on the GA TS Annex on Telecommunications and the Reference 
Paper, and provides further details, such as the de tailed conduct of major su ppliers (Article 11.4), 
enforcement by regulatory bodies (Article 11.9), and the time period for the public licensing process 
(Article 11.7.1.(b)).  It also contains disputes pr ovisions allowing the Parties recourse, reconsideration 
and appeal on the issue of public telecommunicati ons transport networks and services (Article 11.10). 
82. For access to and use of public telecommunications transport networks and services, apart 
from the requirements listed in Article 5.(b) of the GATS Annex, Article 11.3.2 of the Agreement 
requires the Parties to ensure that service supplie rs of the other Party can: i) perform switching, 
signalling and processing functions;  and ii) provide ser vices to individual or multiple end-users over 
any leased or owned circuits to the extent that the scope and type of such ser vices are not inconsistent 
with the Parties' domestic laws a nd regulations.  In order to enhance transparency, the Parties must 
ensure, in addition to complying with Artic le 4 of the GATS Annex (as contained in 
Article 11.11.(c)), that the rules of their teleco mmunications regulatory bodies are published or made 
available in a reasonable period of time and inter ested persons have an opportunity to comment on 
them (Articles 11.11.(a) and (b)). 
83. Korea's GATS commitments and the Agreement cover facilities and resale based sub-sectors 
in telecommunications services.  As regards Korea Telecom the Agreement reduces foreign  WT/REG210/3/Rev.1 
 Page 35 
 
 
  ownership limits listed in its GA TS schedule.  Singapore takes reservations for facilities-based and 
services-based operators and registrars of .sg domain names.  Singapore also restricts foreign ownership in facilities-based basic telecommunicat ions services up to the same limit of 49% that 
Korea sets, whereas its GATS schedule limits it to a cumulative foreign shareholding total of 73.99%, 49% of which direct and 24.99% indirect investment .  The Parties have taken reservations regarding 
postal, courier, and broadcasting services both u nder the Agreement and their GATS commitments. 
2. Financial services 
84. Chapter 12 on financial services (Chapter 12) applies to cross-border trade in services and 
investment relating to: (a) financial institutions of the other Party;  (b) investors of the other Party, and 
investments by such investors, in financial ins titutions in the Party’s territory; and (c) trade in 
financial services (Annex 12B lists activities of a fina ncial nature).  Some of the provisions in 
Chapters on cross-border trade in services or i nvestments apply only to the extent of their 
incorporation into this Chapter.
19  Investor-state arbitration in financial services applies only for 
financial transfers (Article 10.11), expropriation an d compensation (10.13), special formalities and 
information requirements (10.16) and denial of benefits (10.17).  
85. Like in the GATS, the Agreement allows the Parties to adopt or maintain measures for 
prudential reasons and in addition to the GATS commitment, the Parti es can prevent or limit transfers 
for maintaining safety, soundness, integrity or fina ncial responsibility of financial institutions or 
financial service suppliers;  and prevent deceptive a nd fraudulent practices or to deal with the effects 
of a default on financial services contracts (Article 12.6). 
86. Unlike for cross-border trade in services, a nd investment, the liberalization disciplines 
(national treatment and market access) apply on a pos itive-list basis, i.e. only to those sectors listed in 
Annex 12A and according to the limitations schedul ed for each mode of supply.  Apart from the 
traditional disciplines on national treatment, the Agre ement states that a Party may treat financial 
services and financial service suppliers, investors, fi nancial institutions and investments of investors 
of the other Party in financial institutions in li ke circumstance, either formally identically or 
differently to that it accords to its own (Article 12.2.4).  The Chapter contains provisions on market 
access along the lines of Article XVI of the GATS (Article 12.3) listing six types of limitations that cannot be maintained or adopted.  It also contains obligations with regard to regulatory transparency 
in financial services (Article 12.5), domestic regu lation (Article 12.7), disclosure of confidential 
information (Article 12.8), and recognition, which are based on the relevant provisions in the GATS 
Annex on Financial Services (Article 12.9). 
87. The Parties can consult each other on any matter arising from the Agreement which affects 
financial services.  Such consultations are regarded  to as meeting the objectives of the consultations 
under Article 20.4 of the Chapter on dispute settlement .  In addition to dispute settlement procedures 
under the Agreement additional requirements and proce dures apply to financial services:  expertise or 
experience in financial services law or practice is  emphasised for panellists in financial services-
related disputes (Article 12.12.4).  In contrast to pr ovisions in the dispute se ttlement Chapter (Article 
20.14.4.(b)) permitting the complaining Party to suspend benefits in other sectors if it considers that it 
is not practicable or effective to suspend benefits in the same sector, when a panel finds a measure to 
be inconsistent with the Agreement and the meas ure under dispute affects a sector other than the 
financial services sector, the financial services Chap ter guides the complaining Party not to suspend 
benefits in financial services sector (Article 12.12.5. (c)).  For investment disputes relating to financial 
services when an investor of a Party complained against invokes safeguards or  exceptions, the matter 
                                                     
 
19 Articles 9.12 (denial of benefits), 9.15 (payments and transfers), 10.11 (transfer), 10.12 (safeguards), 
10.13 (expropriation and compensation), 10.16 (special formalities and information requirements), 10.17 (denial 
of benefits), and 10.18 (environmental measures).  WT/REG210/3/Rev.1 
Page 36  
 
  is referred to the Financial Services Committee for a d ecision, instead of to a tribunal.  The decision 
of the Financial Services Committee is referred to the tribunal.  Other functions of the Financial 
Services Committee include supervising implementa tion of the Chapter and considering issues on 
financial services referred to it by the Parties (Article 12.10). 
88. Annex 12A on specific commitments in financial services can be modified or withdrawn as a 
result of consultations between the Parties.  However,  the previous level of liberalization shall not be 
reduced (Article 12.14). 
89. Korea's horizontal commitments in financial services under the Agreement are along the lines 
of its GATS schedule;  in addition that Korea can  take measures for prudential reasons relating to 
business worker licenses and approval for business activ ities;  financial institutions must also be 
established for only one type of bu siness defined in related banking or securities laws and may not 
engage in other business activities.  The Agreement also  clarifies that transactions with non-residents, 
such as providing won-denominated loans, issui ng won-denominated securities with short-term 
maturities, providing foreign currency denominated  financial credits, guaranties or collaterals, 
borrowing by financially unsound corporation from non-residents and derivatives transactions, need 
approval. 
90. Korea's commitments in insurance and insu rance related services under the Agreement  
correspond to those in its GATS schedule.  With respect to banking and other financial services, Korea's commitments under the Agreement cover: depos its;  lending;  financial leasing;  payment and 
money transmission;  guarantees and commitments;  foreign exchange services;  and settlement and 
clearing.  The foreign investment limit in these sub- sectors has been raised to 10% of the stocks of a 
bank (4% in its GATS schedule), or 15% of the stocks of a provincial bank without special 
authorization.  The Agreement also al lows up to 100% ownership by a person
20 in a bank or a 
provincial bank in these sub-sectors, with the approval  of the relevant authorities (e.g. the Financial 
Services Commission).   
91. Singapore' s horizontal commitments in financial services under the Agreement are the same 
as in its GATS schedule.  In addition, Singapor e has taken commitments in reinsurance and 
retrocession, a sector uncommitted to in its GAT S schedule: it provides for full commitments under 
modes 1 and 2;  and under mode 3, reinsurance comp anies must establish as branches or subsidiaries.  
With respect to non-life insurance services, it has re laxed the limitation that compulsory insurance of 
Motor Third Party Liability and Workmen's Compensa tion may (compared to 'can' used in its GATS 
schedule) only be purchased from licensed insurance companies in Singapore.   
92. With respect to Singapore's banking and othe r financial services, the covered sub-sectors 
under the Agreement are identical with those under th e GATS.  With respect to acceptance of deposits 
and other repayable funds from the public, in addi tion to its GATS requirement that only approved 
institutions can accept deposits, under the Agreement licensed institutions are also eligible to accept 
deposits.  Mode 3 limitations in all types of lending , particularly relating to  non-resident financial 
entities or non-residents, are more detailed compar ed to its GATS schedule.  As regards mode 3 
limitations on market access of participation in issuing all kinds of securities, although new trading 
members in the Singapore Exchange (SGX-ST) will be allowed, foreign acquisitions of new and 
existing equity interests in its member compani es are unbound.  Further, bank and merchant bank 
membership of any securities or fu tures exchange in Singapore must be held through subsidiaries.  
Mode 3 in settlement and clearing services for exch ange traded securities and financial futures can 
only be provided by the Central Depository (Pte ) Limited and Singapore Exchange Derivatives 
                                                      
20 According to Korea, the definition of "a person" is any company that manages financial business, as 
defined in its domestic law, the Bank Act.  WT/REG210/3/Rev.1 
 Page 37 
 
 
  Clearing Ltd, respectively.  Only one clearing house established under the Banking Act may provide 
clearing services for Singapore dollar cheques and inter-bank fund transfers. 
93. Chapter 18 on cooperation calls for financial regulatory cooperation, inter alia , to enhance 
effective supervision of financial institutions of either Party opera ting in the territory of the other 
Party;  respond properly to issu es relating to globalization in financial services including those 
provided by electronic means;  and minimize system ic risks of global financial institutions and to 
limit contagion effects in the event of crises (Article 18.5). 
3. Transport services 
94. Some maritime services are inscribed as additi onal commitments to the Chapter on trade in 
services under Annex 9C. 21  For those services listed, the Parties agree to use reasonable and non-
discriminatory terms and conditions for internati onal maritime transport operators from the other 
Party. 
95. In the GATS under maritime transport services, Korea has taken commitments in 
international transport (less cabotage) and several auxiliary services.  Auxiliary services that have 
been listed with some limitations (in particular in mode 3) under the GATS are not inscribed in the 
lists of non-conforming measures in the Agreement,  and are therefore open without any reservations 
to Singapore.  Under the Agreement, Korea has conditions for registering vessels in Korea and 
requires only Korean nationals to be on board a Ko rean vessel.  Nationality is also compulsory to 
become a maritime pilot, to rescue sh ipwrecks, or to inspect vessels.  In air transport services, aircraft 
repair and maintenance services are not inscribed in  Korea's GATS schedule, whereas the Agreement 
places conditions (i.e. registration, certificate and business place requirements) for the operation of 
such services.  For road transport services, in  its GATS schedule, its commitments are only in 
transportation of containerized freight (less cabot age), whereas under the Agr eement, Korea inscribes 
establishment or registration requirements for variou s road transport services sub-sectors.  It also 
registers a reservation on any measure pertaining to grain management services under storage and warehousing services. 
96. Both in its GATS schedule and the Agreement, Singapore has undertaken maritime transport 
commitments in freight transportation (less cabot age), shipping agency services and shipping 
brokerage services.  Singapore has no GATS commitments in air transport services.  Under the Agreement, there is an investment restriction fo r passenger or freight transportation by air services 
requiring compliance with the "effective control" and/or "substantial ownership" requirements of 
Singapore's bilateral and multilateral air services agr eements.  The Agreement also restricts measures 
pertaining to the divestment of the administrator and operator of airports.  Singapore also has no 
GATS commitments in rail or road transport services.   Under the Agreement it has taken a reservation 
in market access, national treatment, local presence, performance requirements, and requirements for senior management and boards of directors for land  transport services and related auxiliary services 
(for storage and warehousing, freight forwarding, inland trucking, container station, and depot 
services by Singaporeans).   
                                                     
 
21 The maritime services are pilotage;  towing and tug assistance;  provisioning, fuelling and watering;  
garbage collection and ballast waste disposal;  port cap tain's services;  navigation aids;  emergency repair 
facilities;  anchorage;  and other sh ore-based operational serv ices essential to ship operations including 
communications, water and electrical supplies.  WT/REG210/3/Rev.1 
Page 38  
 
  V. GENERAL PROVISIONS OF THE AGREEMENT 
A. T
RANSPARENCY  
97. Under Chapter 19 the Parties must promptly  publish laws, regulations, procedures and 
administrative rulings of general application rela ting to any matter covered by the Agreement and 
interested persons are to be given an opportunity  to comment on these (Article 19.2).  Provision is 
also made for notification and the provision of in formation (Article 19.3), consistent, impartial and 
reasonable administrative proceedings for persons, goods  or services of other Party (Article 19.4), and 
review and appeal (Article 19.5). 
B. EXCEPTIONS  
98. Chapter 21 on general exceptions for goods in corporates Article XX of GATT into the 
Agreement, for the purposes of Chapters 3 (Nati onal Treatment and Market Access for Goods), 4 
(Rules of Origin), 5 (Customs Procedures), 6 (T rade Remedies), and 14 (Electronic Commerce), 
except to the extent that a provi sion in these Chapters applies to  services or investment;  and 
Chapter 16 (Government Procurement), except to the extent that any of its provisions applies to 
services. 
99. General exceptions for services incorporate Article XIV (a)-(c) into the Agreement, for the 
purposes of Chapters 3 (National Treatment and Ma rket Access for Goods), 4 (Rules of Origin), 
5 (Customs Procedures), 6 (Trade Remedies), and 14  (Electronic Commerce), to the extent that a 
provision in these Chapters applies to services;  Ch apter 9 (Cross Border Trad e in Services);  Chapter 
10 (Investment);  Chapters 11 (Telecommunication) and 12 (Financial Services);  and Chapter 16 (Government Procurement), to the extent  that a provision applies to services. 
100. The Parties maintain national security exceptions  in line with Article XXI of the GATT and 
must inform each other of measures taken for security  purposes and their termination (Article 21.3).  
Based on this Article, the Parties exchanged lette rs on 25 July 2005 to confirm their understanding 
that they may take any action they consider necessary to protect critical communications infrastructure from deliberate attempts intended to disable or degrade it. 
101. The Agreement does not apply to taxation except Articles 10.13 (expropriation and 
compensation) 10.19 (settlement of disputes between a Pa rty and an investor of the other Party) to the 
extent that the taxation measures constitute expropr iation as provided for therein.  If there is any 
inconsistency between the Agreement and any tax agreement, the latter prevails to the extent of the 
inconsistency (Article 21.4). 
C. A
CCESSION AND TERMINATION  
102. There are no accession provisions in the Agre ement.  Either Party may terminate the 
Agreement but must first provide six months noti ce to the other Party in writing (Article 22.6). 
D. INSTITUTIONAL FRAMEWORK  
103. The Parties, annually or as otherwise agreed, review the implementation and application of 
the Agreement including activities of Committees or working groups;  establish any ad-hoc or 
standing committees, working or expert groups;  modify  the established rules of origin;  and consider 
any other matter that may affect the operation of the Agreement (Article 22.1).  Modifications or 
additions to the Agreement can be made through written notification certifying that the Parties have 
completed necessary internal legal procedures (Article 22.4).  WT/REG210/3/Rev.1 
 Page 39 
 
 
  E. DISPUTE SETTLEMENT  
104. Chapter 20 and its Annex on model rules of pro cedure set out procedures on: the settlement of 
disputes relating to implementation, interpretation or  application of the Agreement;  or measures that 
are inconsistent with the obligations of the Agre ement or cause nullification or impairment of any 
benefit accruing to it directly or i ndirectly under Chapters 3 (National Treatment and Market Access 
for Goods), 4 (Rules of Origin), and 9 (Cross Bo rder Trade on Services).  These matters may be 
subjects of consultation between the Parties (Artic le 20.4).  The complaining Party may choose to 
settle a dispute either by requesting an arbitral panel under the Agreement (A rticle 20.6) or through 
dispute settlement proceedings under the WTO.  On ce the complaining Party has chosen a forum to 
settle the dispute, that forum shall be used to th e exclusion of the other (exclusive forum clause) 
(Article 20.3.2). 
105. After a Party has filed a request for consultati on, the other Party shall reply to the request 
within 10 days and enter into consu ltations within 20 days of its receipt (Article 20.4.2).  If the matter 
is not resolved through consultati ons within 45 days after the date of receipt of the request, a Party 
may request in writing the establishment of an arbitral  panel (Article 20.6.1).  The panel is composed 
of three members: two nominated by each Party and th e third, who serves as the chair of the arbitral 
panel, is jointly appointed by the Parties.  If ther e is a disagreement over the appointment of the chair, 
the Parties exchange a list of four nominees each, none of  whom are nationals of either Party;  one of 
these will be appointed the chair by lot (Article 20.7) .  The initial report shall be issued 90 days after 
the last panellist is selected;  the Parties may provi de written comments within 14 days of its issuance 
(Article 20.11).  The final report is issued 30 days  after the initial report and is made available to the 
public 15 days later (Article 20.12).  The award by  the panel is final and binding on the Parties and 
cannot be appealed (Article 20.13). 
106. The Parties shall agree on the means to resolve the dispute, and the reasonable period of time 
to implement the means.  When the Parties are not  able to agree on these, they shall negotiate any 
necessary compensatory adjustment.  If the compensa tion is not agreeable, the complaining Party may 
suspend the application of benefits of equivalent effect.  The suspension shall be first sought in the 
same sector or sectors affected, following which benefits in other sectors may be suspended if the complaining Party considers suspension in same sector is not practical or effective (Article 20.14).  At any time during the procedure, the Parties may agr ee to utilize good offices, conciliation or mediation 
(Article 20.5).  The Parties share equally the costs of the arbitral panel and other expenses 
(Article 20.16.1).  The steps to be taken in th e dispute settlement process are described below in 
Table V.1. WT/REG210/3/Rev.1 
Page 40  
 
  Table V.1 - Synopsis of Dispute Settlement Provisions under the Agreement 
10 days (Art.20.4.2) 
 According to the Parties,  
maximum 70 days (Art.20.7) 
90 days after the last  panellist is 
selected (Art.20.11.2)  
15 days (Art.20.12.2) 14 days (Art.20.11.3) 10 days (Art.20.4.2) 
15 days (Art.20.13.2.(b)) 45 days  (a)  Written re quest for 
consultations (Art. 20.4.1) 
Consultations  
(Art.20.4.2) 
Written request for the 
establishment of arbitral 
panel (Art.20.6.1)  
Establishment of arbitral 
panel  (Art.20.7) 
Model Rules of procedure  
(Art.20.9)  
Issuance of arbitral 
tribunal's initial report  
(Art.20.11)   
Issuance of arbitral panel's 
final report (Art. 20.12)  
Final and binding (Art.20.13.1) Publication of the final arbitral panel 
report (Art.20.12.2)
Agreement on the reasonable 
period of time to solve  
the dispute 
(Art.20.13.2.(b)) 
Failure to agree on the 
reasonable period of time – 
refer to the original arbitral 
panel (Art.20.13.2.(b)) 
Negotiations on mutuall y 
acceptable compensation 
(Art.20.14.1)
Possibility to submit 
written comments 
(Art. 20.11.3) 
30 days 
(Art.20.12.1) Agreement on the 
means to solve  
the dispute 
(Art.20.13.2.(a) ))  
Failure to 
agree on  
a means 
(Art.20.14.
1.(a)) Failure to implement 
the means within 30 
days following the 
expiration of the 
reasonable period of 
time– 
Non implementation 
(Art.20.14.1. (b))
20 days (Art.20.14.2) 
No agreement 
(Art.20.14.2) 
Notification of intention 
to suspend the 
application of benefits 
granted under the 
Agreement 
(Art.20.14.2)The original arbitration 
panel reconvened upon 
request from the Party 
complained against 
(Art.20.14.6) 
30 days 
(Art.20.14.6) 
Arbitration panel rulin g 
(Art.20.14.6) 30 days 
(Art.20.14.1.(a)) 
Response to the written 
request (Art.20.4.2) 
Determination of the 
reasonable period of time 
by the arbitral panel 
(Art.20.13.2.(b)) 
 
F. RELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  
107. The Agreement's relationship with other agreemen ts concluded by the Parties is defined in 
Article 1.3, where they reaffirm their rights and obligations under existing bilateral and multilateral 
agreements to which both Parties are party, in cluding the WTO Agreements.  When there is any 
inconsistency between the Agreem ent and other agreements, the Parties immediately consult with  WT/REG210/3/Rev.1 
 Page 41 
 
 
  each other to reach a mutually satisfactory solution taking into considerati on general principles of 
international law.  If the Agreement explicitly contai ns provisions that are inconsistent with those in 
other agreements, the Agreement's provisions apply (Article 1.3.3). 
108. Table V.2 lists all other regional trade agreem ents (RTAs) notified and not notified to the 
GATT/WTO and in force to which Korea and Singapore are party. 
Table V.2 
Korea and Singapore:  Participation in other RTAs (n otified and non-notified in force), as of June 2009 
GATT/WTO Notification 
Partner / Agreement Date of 
entry  
into force Type of 
agreement Year WTO Provision 
KOREA  
EFTA 01.09.06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
Chile 01.04.04 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
GSTP 19.04.89 Goods 1989 Enabling Clause 
APTA 17.06.76 Goods 1976 Enabling Clause 
PTN 11.02.73 Goods 1971 Enabling Clause 
ASEAN * Goods & Services Not notified  
SINGAPORE  
China 01.01.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Panama 24.07.06 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
Brunei, Chile, New Zealand  
(Trans-Pacific SEP) 28.05.06 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
Korea 02.03.06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
Jordan 22.08.05 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
India 01.08.05 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
United States 01.01.04 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
Australia 28.07.03 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
EFTA 01.01.03 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
Japan 30.11.02 Goods & Services 2002 GATT Art. XXIV & GATS Art. V 
New Zealand 01.01.01 Goods & Services 2001 GATT Art. XXIV & GATS Art. V 
ASEAN Agreements: 
 ASEAN-China  
 ASEAN-China  
 AFTA  
01.07.03 
01.07.07 28.01.92  
Goods 
Services Goods  
2004 
2008 1992  
Enabling Clause 
GATS Art. V 
Enabling Clause 
 ASEAN-Japan * Goods Not notified  
GSTP 19.04.89 Goods 1989 Enabling Clause 
 
* Not yet in force for all member states of the ASEAN.  Dates of entry into force differ.   
 
Source: WTO Secretariat.  
 
EFTA: European Free Trade Area 
GSTP: Global System of Trade Preferences APTA: Asia Pacific Trade Agreement 
PTN: Protocol relating to Trade Ne gotiations among deve loping countries 
ASEAN:  Association of Southeast Asian Nations  
 WT/REG210/3/Rev.1 
Page 42  
 
  G. G
OVERNMENT PROCUREMENT  
109. Chapter 16 on government procurement consists of  nine Articles and tw o related Annexes.  
The Parties reaffirm their rights and obliga tions under the WTO Agreement on Government 
Procurement (GPA) (Article 16.1.1).  The Agre ement's procurement procedures are applied in 
accordance with GPA Articles II-IV, VI-XV, XVI:1,  XVIII, XIX:1-4, XX, XXIII;  Notes;  and 
Appendices II-IV (Article 16.3).  In the case of am endment of the GPA or its supersession by another 
agreement, the Chapter may be amended as appropria te after consultations (Article 16.3.4).  For 
government procurement that is not covered by the GPA and the Agreement, the Parties will endeavour to apply the APEC Non-Binding Principl es on Government Procurement (Article 16.1.4). 
110. Covered government procurement means pr ocurement: i) by an entity listed in 
Appendix 16A.1;  ii) of goods or services or any comb ination of those specified in Appendix 16A.2;  
and iii) whose contract has a value not less than th e relevant thresholds set  out in Annex 16A.  For 
central government entities, the thresholds for proc urement of construction services are the same as 
those under the GPA, whereas the thresholds fo r procurement of goods and services have been 
decreased to SDR 100,000 compared to SDR 130,000 under the GPA.  For sub-central government 
entities, Korea maintains the sa me thresholds as those under the GPA for goods and services 
(Singapore does not have sub-central government entities).  With respect to all other entities, the thresholds applied by the Parties for goods are SD R 400,000 (which is lower for Korea than its GPA 
threshold of SDR 450,000);  there is no change  for either Party on services and construction 
services.
22  The thresholds for procurement of cons truction services by sub-central government and 
other entities, and services by other entities, are interim as stated in Annex 16A.  The Parties are 
currently discussing this issue of interim application.   
111. The Chapter does not cover non-contractual ag reements or any form of governmental 
assistance, including cooperative agreements, gran ts, loans, equity infusions, guarantees, fiscal 
incentives, and governmental provision of goods an d services to persons or governmental authorities 
not specifically covered by the Chapter.  The Chap ter also does not affect rights and obligations under 
Chapters 3 (National Treatment and Market Access for Goods), 9 (Cross-Border Trade in Services), 
10 (Investment), 11 (Telecommunications) and 12 (Financial Services). 
112. Apart from purely formal or minor amendments, rectifications or other modifications to its 
Appendices to Annex 16A and any changes to liste d government entities, when a Party proposes to 
make a modification it shall notify the other Party and provide appropriate compensatory adjustments 
to maintain coverage comparable to that existi ng prior to the modification (Article 16.7.3).  The 
International Contract Dispute Mediation Committe e and the Government Pr ocurement Tribunal have 
been designated, respectively, for Korea and Singapore, as their dispute settlement bodies on 
government procurement (Appendix 16B.2). 
H. INTELLECTUAL PROPERTY RIGHTS  
113. The Parties reaffirm their obligations under the WTO TRIPS Agreement and subject to 
consistency with the TRIPS Agreement, provide for the enforcement of intellectual property rights in 
their respective laws (Articles 17.3 and 17.4).  The Parties may implement more extensive protection of intellectual property rights than required by th e Agreement, as long as such protection is consistent 
with the Agreement and the TRIPS Agreement (Article  17.4).  Protection for plant varieties is one of 
the areas where the Parties endeavour to enhance their cooperation (Article 17.5).  Singapore has designated the Korean Intellectual Property Office as a prescribed patent office under its laws to 
facilitate processing of a patent applications in Si ngapore that correspond to patent applications in 
                                                     
 
22 The GPA thresholds are contained in document WT/Let/543 (23 May 2006) for Korea and 
WT/Let/429 (11 August 2002) for Singapore.  WT/REG210/3/Rev.1 
 Page 43 
 
 
  Korea (Article 17.7).   A Joint Committee on Intellectual Property is established for facilitating 
cooperation in the area (Article 17.9). 
I. OTHERS  
1. Competition 
114. Chapter 15 aims to promote fair competition an d restrain anti-competitiv e practices, such as 
anti-competitive horizontal arrangements between co mpetitors;  misuse of market power;  anti-
competitive vertical arrangements between businesses;  and anti-competitive mergers and acquisitions.  The Parties' competition laws are to be applied to all businesses registered or 
incorporated under their domestic laws (Article 15. 3), and no competitive advantage must be provided 
to the business activities of government-owned busin esses (Article 15.4).  Article 15.6 provides for  
cooperation and coordination between the Parties'  competition authorities including consultations 
within six months of the coming into effect of Singapore's competition law on the scope and content 
of such consultations.  The Parties inform the S ecretariat that there are no additional arrangements 
between the Competition Commission Singapore and the Korea Fair Trade Commission. 
115. The Parties can consult each other on any issu es covered by the Chapter and shall endeavour 
to provide information each other which is treat ed confidentially (Article 15.5).  Any finding, 
determination or decision made by a competition aut hority of the other Party shall not be revisited 
under the Agreement and the Agreement's dispute set tlement procedures cannot be used for any issue 
arising from or relating to the Chapter.  Further, when there is any inconsistency or conflict between 
any provision in the Chapter and that of any other Ch apter of the Agreement, the latter prevail to the 
extent of such inconsistenc y or conflict (Article 15.8). 
2. Environment 
116. The Agreement does not have a specific Chapter on the environment;  however, Article 10.18  
states that nothing in the Chapter on investment w ould prevent a Party from adopting, maintaining or 
enforcing any measure that it considers appropriate to ensure that investment activity in its territory is 
undertaken in a manner sensitive to environmenta l concerns.  Chapter 18 on cooperation also 
promotes the use of compressed natural gas technologies for environmental protection.  The Parties 
have concluded a Memorandum of  Understanding to facilitate cooperation in this regard 
(Article 18.9). 
3. Electronic commerce 
117. Measures related to the supply of a service using electronic means are covered by Chapters 9 
(Cross-Border Trade in Services), 10 (Investment), a nd 12 (Financial Services) (Article 14.3).  The 
Parties do not apply customs duties or other duties, fees, or charges on the import or export of digital 
products from each other by electronic transmission (Article 14.4.1).
23  They must accord the same 
treatment to a digital product as they accord to othe r like digital products on the basis that: i) the 
digital product receiving less favourable treatment is created, produced, published, stored, transmitted, 
contracted for, commissioned, or first made availabl e on commercial terms in the territory of the other 
Party;  or ii) the author, performer, producer, devel oper, or distributor of such digital product is a 
person of the other Party, or so as otherwise to affo rd protection to other like digital products that are 
created, produced, published, stored, transmitted, c ontracted for, commissioned, or first made 
available on commercial terms, in its territory (Ar ticle 14.4.3).  Chapter 18 provides for joint research 
and training activities in electronic commerce.  Th e Parties endeavour to recognize internationally 
                                                      
23 The Parties may review Article 14.4.1 in line w ith changes to the WTO Ministerial Decision on the 
issue (Letter from Singapore to Korea on 25th July 2005). WT/REG210/3/Rev.1 
Page 44  
 
  accepted digital certificates at government level a nd encourage their inter-operability in the business 
sector (Article 18.3). 
4. Cooperation 
118. Areas of further cooperation between the Pa rties include information and communication 
technology (Article 18.2), science and technology (Article 18.4), paperless trading (Article 18.7), 
human resources management and development activities including inter alia , the ageing population 
(Article 18.10), maritime transport (Article 18.11) , energy (Article 18.12), and gaming and animation 
(Article 18.14). 
119. With respect to trade and investment promo tion, the Korea Trade-Investment Promotion 
Agency (KOTRA) and International Enterprise Singapore (IE Singapore), inter alia , jointly organize 
industry specific business activities in, such as info-communications technology, electronics, 
automobile, food and beverage a nd the logistics sectors;  and establish business support centres.  The 
Parties also foresee cooperation between the Korea Export Insurance Corporation (KEIC) and Export Credit Insurance Corporation of Singapore (ECICS) including in export credit insurance (Section 1, 
Annex 18A).  Sections 2-4 of Annex 18A furthe r details areas of cooperation in broadcasting, 
exchange programme for government officials, and film production, respectively. 
     
 
    
 
     
  WT/REG210/3/Rev.1 
 Page 45 
 
 
  ANNEX 
 
Indicators of Trade Liberalization under the Agreement  
 
 
1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the MFN rates applied by Korea an d Singapore is shown in Tables A.1 (Korea) and 
A.2 (Singapore) below, by total products, ag ricultural products and non-agricultural products. 
Table A.1 
Korea: Indicators of MF N tariff rates and preferential ra tes for imports from Singapore 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2006 12.8 14.8 13.3 52.0 53.0 2.0 6.7 7.9 15.2 
Singapore 2006 9.1 22.6 59.7 49.6 60.2 17.5 2.8 8.2 66.5 
 2007 8.6 21.4 59.7 48.3 58.6 17.5 2.4 7.2 66.5 
 2008 8.2 20.3 59.7 47.0 57.1 17.5 2.1 6.2 66.5 
 2009 7.7 19.2 59.7 45.7 55.5 17.5 1.7 5.2 66.5 
 2010 7.2 18.0 59.7 44.4 54.0 17.5 1.4 4.1 66.5 
 2011 6.8 30.2 77.6 43.2 77.0 43.7 1.0 6.2 83.2 
 2012 6.5 29.2 77.6 42.3 75.4 43.7 0.9 5.5 83.2 
 2013 6.3 28.3 77.6 41.4 73.8 43.7 0.8 4.9 83.2 
 2014 6.1 27.3 77.6 40.5 72.2 43.7 0.7 4.2 83.2 
 2015 5.9 26.3 77.6 39.6 70.6 43.7 0.6 3.5 83.2 
 2016 5.7 68.1 91.6 38.7 123.5 68.3 0.5 11.0 95.6 
 
a WTO Definition. 
 
Source:  WTO Secretariat estimates based on data provided by Korea and WTO-IDB. 
 
2. Korea's average applied MFN rate in 2006 was 12.8%.  Tariffs on agricultural products are 
significantly higher than for non-agricultural pro ducts with the average applied MFN tariff on 
agricultural products roughly eight times higher th an that applied to non-agricultural products.  
Duty-free tariff lines account for 13.3% of all tariff lin es.  As a result of the Agreement, Singaporean 
exporters enjoyed an absolute margin of preference of 2.4% for agricultural goods vis-à-vis  the 
prevailing average MFN tariff in 2006, and 3.9% for non-agricultural goods.  Overall, Singaporean 
exporters enjoyed an absolute margin of preference of 3.7% vis-à-vis the prevailing average applied 
MFN tariff;  the share of duty-free lines applicab le to imports from Singapore also rose from 13.3%  
on an MFN basis to 59.7% in 2006.  By the end of implementation in 2016, the share of duty free lines for imports from Singapore is expected to rise to  91.6% overall, with 95 .6% of non-agricultural 
products and 68.3% of agricultural products becoming duty free. 
Table A.2 
Singapore: Indicators of MFN tariff rates an d preferential rates for imports from Korea 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin 
of goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2006 0.0 0.0 99.9 0.0 0.0 99.5 0.0 0.0 100.0 
Korea 2006 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 100.0 
 
a WTO Definition.  
Source : WTO Secretariat estimates based on data provided by Singapore. WT/REG210/3/Rev.1 
Page 46  
 
  3. Singapore's tariff structure is duty free on an MF N basis for all but six tariff lines.  These 
lines are liberalized upon entry into force of the Ag reement, resulting in complete duty-free treatment 
for Korea's exports to Singapore. 
Table A.3 – Korea: Market access opportunities under the Agreement for Singapore's top 25 exports 
Access Conditions to Korea's import markets  
MFN (2006)  Singapore's top export products in 2003-2005  
Number of tariff lines  Duty-free in  
HS number and description of the 
product  Share in 
global 
exports (%)  Average 
MFN 
applied rate 
(%) Duty-free Dutiable 2006 2011 2016 Remain 
Dutiable  
854229 Other molonithic 
intergrated circuits other 
than digital 12.2 0.0 2      
271019 Other petroleum oils other 
than light oils and 
preparations 6.6 6.6  41 3 4  34 
847330 Parts and accessories of the 
machines of heading 84.71 6.5 0.0 10      
847170 Storage units 5.5 0.0 8      
854221 Digital 5.4 0.0 7      
271011 Light oils and preparations 3.2 3.7  6 3   3 
852520 Transmission apparatus 
incorporating reception apparatus 2.9 0.0 17      
854260 Hybrid integrated circuits 2.0 0.0 1      
854290 Parts 1.4 0.0 2      
852990 Other parts suitable for use 
solely or principally with 
the apparatus of headings 85.25 to 85.28 other than 
aerials and aerial reflectors 
of all kinds; parts suitable for use therewith 1.0 7.4 1 12   12  
847160 Input or output units, 
whether or not containing storage units in the same 
housing 1.0 0.0 18      
843143 Parts of boring or sinking 
machinery of subheading 
8430.41 or 8430.49 0.9 0.0 1      
847180 Other units of automatic 
data processing machines 0.9 0.0 1      
293090 Other organo-sulphur 
compounds other than dithiocarbonates; thiocarbamates and 
dithiocarbamates; thiuram 
mono-, di- or tetrasulphides and methionine 0.7 6.5  32 21  11  
292250 Amino-alcohol-phenols, 
amino-acid-phenols and other amino-compounds 
with oxygen function 0.7 6.5  5 2  3  
853690 Other apparatus 0.7 2.7 2 1   1  
852491 For reproducing phenomena 
other than sound or image 0.7 0.0 2      
854129 Other transistors, other than 
photosensitive transistors 
other than those with a 
dissipation rate of less than 1 W 0.6 0.0 2      
853400 Printed circuits. 0.5 0.0 3      
880330 Other parts of airplanes or 
helicopters 0.5 0.0 2      
854190 Parts 0.4 0.0 4      
Table A.3 (Cont'd)   WT/REG210/3/Rev.1 
 Page 47 
 
 
  Access Conditions to Korea's import markets  
MFN (2006)  Singapore's top export products in 2003-2005  
Number of tariff lines  Duty-free in  
HS number and description of the 
product  Share in 
global 
exports (%)  Average 
MFN 
applied rate 
(%) Duty-free Dutiable 2006 2011 2016 Remain 
Dutiable  
854110 Diodes, other than 
photosensitive or light 
emitting diodes 0.4 0.0 2      
870899 Other parts and accessories 
other than radiators, 
silencers, clutches and parts thereof, steering wheels, 
steering columns and 
steering boxes 0.4 8.0  6   6  
293329 Other compounds 
containing an unfused 
imidazole ring (whether or not hydrogenated) in the 
structure other than 
hydantoin and its derivatives 0.4 6.5  2  1 1  
854150 Other semiconductor 
devices 0.4 0.0 3      
Total of above 56.0  88 105 29 5 34 37 
 
Source : WTO estimates based on data provided by Korea, WTO-IDB and UNS D, Comtrade data. 
 
4. Table A.3 shows the market access conditions in  Korea for Singapore's top 25 exports, which 
in 2003-2005 accounted for 56% of its global exports.   Eighty-eight tariff lines were already duty-free 
on an MFN basis.  Out of 105 tariff lines which were dutiable, 29 lines became duty-free upon the 
entry into force of the Agreement;  a further fi ve and 34 lines are to become duty-free in 2011 and 
2016, respectively.  The remaining dutiable 37 lines are related to petroleum products. 
Table A.4 – Singapore: Market access opportuniti es under the Agreement fo r Korea's top 25 exports 
Access Conditions to Singapore's 
import markets  
MFN (2006)  Korea's top export products in 2003-2005  
HS number and description of the product  Share in 
global 
exports (%)  Average MFN 
applied rate 
(%) Number of 
Duty-free 
tariff lines  
852520 Transmission apparatus incorpor ating reception appa ratus 7.2 0.00 11 
854221 Digital 6.6 0.00 2 
870323 Of a cylinder capacity exceeding 1,500 cc but not exceeding 
3,000 cc 4.9 0.00 50 
847330 Parts and accessories of the machines of heading 84.71 3.7 0.00 3 
271019 Other petroleum oils other than li ght oils and preparations 3.5 0.00 18 
852990 Other parts suitable for use solely or principally with the 
apparatus of headings 85.25 to 85.28 other than aerials and aerial 
reflectors of all kinds; parts suitable for use therewith 3.3 0.00 15 
890120 Tankers 3.0 0.00 6 
847160 Input or output units, whether or not containing storage units in 
the same housing 2.7 0.00 11 
890190 Other vessels for the transport of goods and other vessels for the 
transport of both persons and goods 2.2 0.00 10 
870899 Other parts and accessories other than radiators, silencers, 
clutches and parts thereof, steering wheels, steering columns and steering boxes 1.8 0.00 11 
854229 Other molonithic integrated circ uits other than digital 1.5 0.00 2 
870324 Of a cylinder capacity exceeding 3,000 cc 1.4 0.00 32 
870322 Of a cylinder capacity exceeding 1,000 cc but not exceeding 
1,500 cc 1.3 0.00 16 
852812 Colour 1.1 0.00 3 
870332 Of a cylinder capacity exceeding 1,500 cc but not exceeding 
2,500 cc 1.0 0.00 40 
901380 Other devices, appliances  and instruments 0.9 0.00 3 
Table A.4 (Cont'd)  WT/REG210/3/Rev.1 
Page 48  
 
  Access Conditions to Singapore's 
import markets  
MFN (2006)  Korea's top export products in 2003-2005  
HS number and description of the product  Share in 
global 
exports (%)  Average MFN 
applied rate 
(%) Number of 
Duty-free 
tariff lines  
271011 Light oils and preparations 0.8 0.00 14 
901390 Parts and accessories 0.8 0.00 5 
847170 Storage units 0.8 0.00 7 
291736 Terephthalic acid and its salts 0.6 0.00 1 
847989 Other machines and mechanical appliances other than those for 
treating metals and those mixing, kneading, crushing, grinding, screening, sifting, homogenising, emulsifying or stirring machines 0.6 0.00 4 
710813 Other semi-manufactured forms 0.6 0.00 2 
390330 Acrylonitrile-butadiene-styre ne (ABS) copolymers 0.5 0.00 5 
842952 Machinery with a 360° revolving superstructure 0.5 0.00 2 
870333 Of a cylinder capacity exceeding 2,500 cc 0.5 0.00 54 
Total of above 51.8  327 
Source : WTO estimates based on data provided by Singapore and UNSD, Comtrade data. 
 
5. Table A.4 shows the market access conditions in Singapore for Korea's top 25 exports, which 
in 2003-2005 accounted for 51.8% of its global ex ports.  Korea's top 25 exports cover a total of 
327  tariff lines in Singapore's tariff schedule.  All of these products were already subject to duty-free 
MFN rates. 
__________