WORLD TRADE
ORGANIZATIONG/SG/N/1/KOR/5
26 October 2001
(01-5252)
Committee on Safeguards Original:  English
NOTIFICATIONS OF LAWS, REGULATIONS AND
ADMINISTRATIVE PROCEDURES RELATING
TO SAFEGUARD MEASURES
KOREA
The following communication, dated 22 October 2001, has been received from the Permanent
Mission of Korea.
_______________
Pursuant to Article 12.6 of the Agreement on Safeguards, the Government of Korea wishes to
notify the relevant provisions of new Law a nd Regulation concerning safeguard measures.
This notification includes:
(i) Relevant provisions of the Law No. 6417 entitled “Act on the Investigation of
Unfair International Trade Practices and Remedy Against Injury to Industry,”
which was published in the Official Gazette on 3 February 2001 and has
become effective as of 4 May 2001; and
(ii) Relevant provisions of Regulation No. 17222 entitled “Enforcement Decree
of the Act on the Investigation of Unfair International Trade Practices and
Remedy Against Injury to Industry”, which was published in the Official
Gazette and has become effective as of 10 May 2001.G/SG/N/1/KOR/5
Page 2
Act on the Investigation of Unfair International Trade Practices
and Remedy Against Injury to Industry
Article 15 (Applications for Investigations Regarding Injury to Domestic Industry Caused by
Increased Imports of Particular Goods)
(1) Where increased imports of particular goods has caused or is threatening to cause serious
injury to a domestic industry that produces like or directly competitive products,  any party with an
interest in such a domestic industry, including th e head of the central administrative authorities
overseeing the domestic industry, may apply to th e Trade Commission for an investigation of injury
to the domestic industry caused by imports of such goods.
(2) All matters concerning the scope of domestic industry, parties interested in the domestic
industry, and the procedures of application under paragraph (1) above, shall be prescribed by the
Presidential Decree.
Article 16 (Investigations of Injury to Domestic Industry)
(1) Upon receipt of any application under Article 15(1), the Trade Commission shall decide
whether to commence an investigation in consultation with the heads of the central administrative
authorities concerned within thirty days from the date of the application, and give notice of thedecision to the applicant and the heads of the central administrative authorities concerned.
(2) Where the Trade Commission decides to commence an investigation under paragraph
(1) above, the Trade Commission shall make a determination as to the existence of serious injury to
the domestic industry concerned within four months after the decision to commence the investigation;provided , that in cases where matters to be investigated are complicated, or where the applicant
requests the period above to be extended with justifiable reasons, the period of investigation may be
extended by a period not exceeding two months.
Article 17 (Recommendations for the Safeguard Measures)(1) When the Trade Commission has determined th at there exists any serious injury or threat
thereof to the domestic industry as a result of the investigation into injury under the provision of
Article 16, the Trade Commission may decide on measures falling under any of the following
subparagraphs (hereinafter referred to as "the Safeguard Measures") and the duration of the measures
(hereinafter referred to as "the duration of the Safeguard Measures"), and may recommend within one
month the implementation of the measures to the heads of the central administrative authoritiesconcerned.
1. Adjustment of customs tariff;2. Quantitative restrictions on imports of the goods; or3. Other measures as determined by the Presidential Decree purposed to remedy the serious
injury or facilitate structural adjustments of the domestic industry.
(2) The duration of the Safeguard Measures shall not exceed four years; provided , in cases it is
extended in accordance with the provisions of Article 20, the total duration of the Safeguard
Measures, including the extension thereof, shall not exceed eight years.G/SG/N/1/KOR/5
Page 3
(3) In deciding on the type of the Safeguard Measures and the duration of the Safeguard
Measures under paragraph (1), the Trade Commission shall comprehensively take into account
impacts of the Safeguard Measures on the industries concerned, domestic price levels, consumers'
interest and international trade relations, etc.
(4) The type of the Safeguard Measures and the duration of the Safeguard Measures under
paragraph (1) shall be decided to the extent necessary to prevent or remedy serious injury to the
domestic industry and to facilitate structural adjustments of the domestic industry.
Article 18 (Recommendations for the Provisional Safeguard Measures)(1) Even if an investigation is processing in accordance with Article 16, the Trade Commission
may recommend that the heads of the central administrative authorities concerned take the provisional
Safeguard Measures in accordance with Article 17(1)(1), where, unless the provisional Safeguard
Measures are taken,  irreparable injuries will or are likely to result in the industry under investigation.
(2) The duration of the provisional Safeguard Measures under paragraph (1) above shall not
exceed two-hundred days.
Article 19 (Applications and Withdrawals of the Safeguard Measures)(1) In relation to the recommendation for the Safeguard Measures or the provisional Safeguard
Measures under Article 18, the heads of the central administrative authorities concerned shall
determine within one month whether to take the Safeguard Measures or the provisional Safeguard
Measures, and shall give notice to the Trade Commission thereof; in this case, if procedural
preparations,  such as consultations with the majo r interested countries, amendment of relevant laws
and subordinate statutes are necessary for the application of the Safeguard Measures or theprovisional Safeguard Measures, the period required for such procedural preparations shall not be
included in the calculation of the period mentioned above.
(2) In determining whether to take the Safeguard Measures or the provisional Safeguard
Measures, the heads of the central administrative authorities concerned shall consult with other heads
of the central administrative authorities concerned on the impacts of such measures on international
trade relations, the national economy and the industry as a whole.
(3) In the event the expected duration of a Safeguard Measure is over one year, the heads of the
central administrative authorities concerned shall take the Safeguard Measure which should be
gradually liberalized.
(4) The heads of the central administrative authorities concerned shall withdraw application of
the Safeguard Measures where causes for the Safeguard Measures no longer exist. In this case, they
may seek an opinion from the Trade Commission, if necessary.
(5) Where the Safeguard Measures are ceased in accordance with paragraph (4) above, no
subsequent Safeguard Measure shall be applied again to the import of a product which has been
subject to such a measure for a period of time equal to that during which such measure had been
previously applied (or for two years in the event the duration of such a Safeguard Measure is less than
two years); provided , that a subsequent Safeguard Measure with a duration of one-hundred eighty
days or less may be applied again to the import of a product:
1. At least one year has elapsed since the date of introduction of a Safeguard Measure on the
import of that product; andG/SG/N/1/KOR/5
Page 4
2. Such a Safeguard Measure has not been applied on the same product more than twice in the
five-year period immediately preceding the date of introduction of the measure.
Article 20 (Review)
(1) The Trade Commission may review whether to liberalize,  withdraw or extend the duration of
the Safeguard Measures before the end of duration of the Safeguard Measures.
(2) In the event that the duration of a Safe guard Measure exceeds three years, the Trade
Commission shall review as provided in paragra ph (1) above not later than the mid-term of the
Safeguard Measure.
(3) The Trade Commission may recommend, according to the result of review under paragraphs
(1) and (2), that the heads of the central administrative authorities concerned extend the duration of
the Safeguard Measures if/where the Trade Commission determines that the Safeguard Measures are
still necessary for preventing or remedying serious injury to the domestic industry, and liberalize or
withdraw the Safeguard Measures if/where the Trade Commission determines that there are sufficientgrounds for liberalization or withdrawal thereof.  Where the Trade Commission recommends
extension of the duration of the Safeguard Measures under the sentence above, the Safeguard
Measures shall be liberalized progressively.
(4) Upon receipt of recommendation of liberalization, withdrawal, or the extension of the
duration of the Safeguard Measures in accordance with paragraph (3), the heads of the central
administrative authorities concerned shall decide whether to proceed as recommended in consultation
with other heads of the central administrative au thorities concerned under Article 19(2) within the
period provided in Article 19(1). In this case, the heads of the central administrative authorities
concerned shall give notice of the decision to the Trade Commission.
Article 21 (Safeguard Measures on Textiles and Clothing)(1) Where increased imports of textiles and clothing that are subject to the World Trade
Organization Agreement on Textiles and Clothing have caused or are threatening to cause serious
injury to the domestic industry that produces same or directly competitive products, any party who
has interest in the domestic industry, and the head of the central administrative authorities concernedwith the domestic industry may apply to the Trade Commission for an investigation of injury to the
domestic industry.
(2) Where the Trade Commission determines that the foregoing imports have caused or are
threatening to cause serious injury to the domestic  industry according to the results of investigation
upon application under paragraph (1), the Trade Commission may recommend that the Minister of
Commerce, Industry and Energy take the Safeguard Measures.
(3) Matters concerning the procedures of application under paragraph (1) above and of
investigation under paragraph (2) above shall be prescribed by the Presidential Decree.
Article 22 (Safeguard Measures on Services)(1) Where the increased supply of services by a foreign provider has caused or is threatening to
cause serious injury to the domestic industry that supplies like or directly competitive services, anyperson who has interest in the domestic industry, and the head of the central administrative authorities
overseeing the domestic industry may apply to the Trade Commission for an investigation of injury to
the domestic industry.G/SG/N/1/KOR/5
Page 5
(2) Upon receipt of an application of investigation under paragraph (1), the Trade Commission
may recommend that the head of the administrative authorities concerned take the Safeguard
Measures when the Trade Commission determines that such import has caused or is threatening to
cause injury to the domestic industry under investigation.
(3) Necessary matters regarding the categories of services and application procedures in
accordance with paragraph (1) and investigation procedures under paragraph (2) shall be prescribed
by the Presidential Decree.G/SG/N/1/KOR/5
Page 6
Enforcement Decree of the Act on the Investigation of Unfair
International Trade Practices and Remedy Against Injury to Industry
Article 12 (Increased Imports)
References to "increased imports" in Article 15(1) of the Act shall mean increase of
quantities, absolute or relative to domestic production over a particular period of time.
Article 13 (Scope of Domestic Industry)(1) References to "domestic industry" in Article 15(1) of the Act shall be construed as the
domestic producers as a whole, producing the like or directly competitive products as the particular
imported goods, or as the group of domestic producers whose collective output of the like or directly
competitive products constitute a major proportion of the total domestic production of those products.
(2) Domestic industry shall be limited to domestic production only, when domestic producers
under paragraph (1) engage in imports, and to the production of the like or directly competitive
products with the particular imported  goods only, when the domestic producers also engage in other
production activities.
Article 14 (Interested Parties in Domestic Industry)(1) References to "any party with an interest in  such domestic industry" in Article 15(1) of the
Act shall be construed as those indicated in the following subparagraphs:
1. A producer or a group of producers producing not less than 20 per cent of the total domestic
production;
2. A group of producers comprising not less than 20 per cent of the total number of domestic
producers of the goods concerned; provided , that in the case of agricultural, forestry, or
fisheries industries, a group of producers of the goods concerned which is composed of five
or more members; or
3. Labour unions of each industry, societies or associations whose foundation is permitted by the
head of the central administrative authority overseeing the industry concerned, which are
composed of domestic producers of the goods concerned.
(2) Where producers, etc., who fall within subparagraphs (1) or (2) of paragraph (1), import the
goods concerned to the extent that the imported volume has an impact on the competition of the
domestic market, those producers, etc., may be excluded from the scope of the interested parties in the
domestic industry.
Article 15 (Application for Investigation of Injury to Industry)(1) A person who makes an application for investig ation (hereinafter referred to as applicant of
the investigation of injury to the industry), as to whether increased imports of particular goods cause
injury to the domestic industry (hereinafter referred to as investigation of injury to industry) according
to Article 15(1) of the Act, shall file to the Tr ade Commission an application indicating the following
subparagraphs attached with the materials capable of verifying the contents of the request:
1. Product name, measurement, features, uses and the name of producer of the goods concerned;G/SG/N/1/KOR/5
Page 7
2. Exporters, importers, actual results of imports (referring to quantity and value) of the goods
concerned, and expected quantity of imports;
3. Product name, measurement, features, uses and the name of producer of domestic goods
which are the like or directly competitive products;
4. Circumstances in which imports of particular goods have caused or are threatening to cause
serious injury to the domestic industry;
5. Current status and a forecast of the international competitiveness of the domestic industry
concerned;
6. Contents for support of the domestic industry in accordance with the related laws and
subordinate statutes; and
7. Contents, scope and duration of measures, which are necessary for remedying the injury to
the domestic industry.
(2) Where the contents of the application or materials are incomplete, the Trade Commission may
request that an applicant amend the application within a certain period of time. The date of submission
of the amended material shall be deemed as the date of acceptance of the application.
Article 16 (Decision, etc., as to Commencement of Investigation of Injury to Industry)
(1) Where the application for investigation of injury to domestic industry under Article 15(1) of
the Act falls under any of the following subparagraphs, the Trade Commission shall decide not to
commence investigation of injury to domestic industry:
1. Where an applicant is not a person with an interest in the domestic industry concerned under
Article 14, or is not the head of the central administrative authority overseeing the domestic
industry concerned;
2. Where it is evident upon the evaluation of application and attached materials that imports of
particular goods have not caused or are not threatening to cause serious injury to the domesticindustry;
3. Where it becomes unnecessary to commence the investigation because measures to remedy
injury have been taken prior to th e commencement of investigation; or
4. Where an application for investigation of injury is filed for the same investigation of injury
within one year from the date of decision not to commence the investigation or no injury
existence decision. However, where it is clearly admitted that the explicit changes in the
content of subparagraphs of Article 17(1) are made, this subparagraph is not applied.
(2) Where a decision is made regarding whether to  commence the investiga tion of injury to the
industry under Article 16 of the Act, the Trade Commission shall notify the applicant of the decision,
and when the Trade Commission decides to commence the investigation it shall publish this fact in
the government newspaper bulletin.
(3) Where the applicant withdraws the application of investigation after the decision of the
commencement of the investigation has been ma de, the Trade Commission shall terminate the
investigation and publish the fact of such termination in the government newspaper bulletin.G/SG/N/1/KOR/5
Page 8
Article 17 (Decisions as to Whether Injury to Industry Exists)
(1) In reaching a decision as to whether or not injury to domestic industry has occurred, under
Article 16(2) of the Act, the Trade Commission shall consider all matters set forth in the following
subparagraphs:
1. Whether or not an increase in imports has occurred;2. Whether or not there exists serious injury to the domestic industry;3. Whether or not there exists a threat of serious injury to the domestic industry; and
4. Whether or not imports of particular goods cause or threaten to cause serious injury to the
domestic industry.
(2) Upon considering matters contained in subparagraph (2) of paragraph (1), an evaluation as to
whether or not the domestic industry has suffered significant and overall injury shall be made inconsideration of changes in the level of sales, production, productivity, capacity utilization, profits &
losses, employment, inventory, market share, etc.
(3) Upon considering matters contained in subparagraph (3) of paragraph (1), an evaluation shall
be made as to whether or not serious injury, under paragraph (2) above, is clearly imminent.
(4) In the case of decisions, under paragraph (1), as to whether or not injury to the domestic
injury has occurred, the Trade Commission shall publish such decision in the government newspaper
bulletin and notify applicants and interested parties thereof.
Article 18 (Contents, etc., of Safeguard Measures)
Measures for remedying injury to the domestic industry or promoting industrial adjustments
in subparagraph (3) of Article 17(1) of the Act include those set forth in the following subparagraphs:
1. Support available in finance and tax systems for enhancing competitiveness of the domestic
industry or promoting industrial transformation;
2. Reeducation or relocation training of workers employed in the domestic industry; and/or3. Support of technological developments for the domestic industry.
Article 19 (Recommendations for the Provisional Safeguard Measures)
(1) A party applying for an investigation of injury to industry may request that the Trade
Commission recommend the provisional Safeguard Measures under Article 18(1) of the Act.
(2) The applicant for the provisional Safeguard Measures under paragraph (1) above, shall file an
application form including the following information attached with materials capable of verifying the
contents of the request.
1. The extent of injury to domestic industry caused by increased imports;2. The content, extent, and duration of the provisional Safeguard Measures; and3. Reasons justifying the necessity of the provisional Safeguard Measures.G/SG/N/1/KOR/5
Page 9
(3) Upon receipt of the application for recommendation of the provisional Safeguard Measures
under paragraph (1), the Trade Commission shall determine whether to recommend the provisional
Safeguard Measures after consulting the opinion of the head of relevant central administrative
authority overseeing the industry and of industry association, etc. within one month from the date ofapplication; provided , that the Trade commission may extend the period by no more than one month if
the matter under investigation is complicated.
(4) After receiving the Trade Commission's recommendation, the head of the central
administrative authority shall determine whether to enforce the provisional Safeguard Measures under
Article 19 (1); provided , that if the industry on which the provisional Safeguard Measures are
recommended is classified as agricultural, forestry, or fisheries and if it is necessary to take urgentaction due to seasonality or the perishable nature of the product, the decision on whether to enforce
the provisional Safeguard Measures shall be reached  within fifteen days from the date of application.
(5) Where consultation with other central admini strative authorities, general authorities, or
organizations concerned is necessary for the application of the provisional Safeguard Measures, etc.,such as the caveat set forth in paragraph (4), the period required for such consultation and preparatory
measures shall not be included in the fifteen days assessment period in Article 19(4).
Article 20 (Application of the Safeguard Measures, etc.)
(1) Where the head of the central administrative authority places a restriction on the amount of
goods imported as a Safeguard Measure under Article 19(1) of the Act, the restricted amount shall
exceed the annual average amount of goods imported (hereinafter referred to as the standard amount)
calculated on the basis of goods imported over the last three representative years. The years when the
imported amount rapidly increased or decreased in comparison with the normal import amount maybe excluded in selecting the last representative years.
(2) When it is clearly admitted that the standard amount, under paragraph (1) above, cannot
prevent or remedy the serious injury to the domesti c industry, the head of the central administrative
authority may restrict the amount below the standard amount.
Article 21 (Review, etc.)(1) The Trade Commission may undertake an ex officio  review or by application of an applicant
for the investigation of injury to industry during the period of application of the Safeguard Measures,
under Article 20(1) of the Act. In such case, extension of the Safeguard Measures may be reviewed on
application.
(2) An applicant for an extension of the Safeguard Measures under paragraph (1), shall file an
application form containing the facts specified in Article 15(1) (if there are any changes to the facts)
with materials verifying the facts attached and th e following information with supporting evidence
attached to the Trade Commission six months prior to the expiration date of the Safeguard Measures:
1. The extent of self-help endeavors to improve the competitiveness of the domestic industry;2. Evidence that the industry is under structural adjustments; and
3. Other reasons justifying the necessity of extending the Safeguard Measures.
(3) Where the Trade Commission reviews the Safeguard Measures under Article 20(2) of the Act,
such review shall begin six months prior to the mid-term of the Safeguard Measures.G/SG/N/1/KOR/5
Page 10
(4) Where the Trade Commission recommends the extension, liberalization or withdrawal of the
Safeguard Measures to the head of the central administrative authority concerned under Article 20(3)
of the Act, such recommendation may be made until one month prior to expiration the Safeguard
Measures (the date of mid-term of the Safeguard Measures in paragraph (3)).
(5) Upon the recommendation to extend the Safeguard Measures under paragraph (4), the Trade
Commission shall make a recommendation only when the Safeguard Measures continue to be
necessary to prevent or remedy serious injury to the domestic industry and there is an evidence that
the industry is under structural adjustments.
(6) The Trade Commission may request submission of materials such as import records and
production trends of a domestic industry etc., to the head of the central administrative authority,
general administrative authority, or organization presiding over the domestic industry concerned if
such information is considered necessary to review the Safeguard Measures.
Article 22 (Safeguard Measures on Textiles and Clothing)(1) In determining the existence of injury to  domestic industry in relation to the Safeguard
Measures on Textile and Clothing (hereinafter referred to as "the Textile Safeguard Measures") under
Article 21 of the Act, the Trade Commission shall appraise whether serious injury has occurred, or the
threat of serious injury to domestic industry exis ts, considering the changes in output, productivity,
utilization of capacity, inventories, market sh are, exports, wages, employment, domestic prices,
profits and investment, etc. When appraising whether there is a threat of serious injury to domestic
industry, the Trade Commission shall consider whether the serious injury is clearly imminent.
(2) Upon investigation and decision as to the existence of injury to textile and clothing industries
by the Trade Commission, Articles 12 through 16, and 17(1), 17(4) shall apply mutatis mutandis.
(3) The Trade Commission may recommend the liberalization or withdrawal of the Textile
Safeguard Measures to the Minister of Commerce, Industry and Energy before the expiration of the
Textile Safeguard Measures where a decision is made in favour of the liberalization or withdrawal of
such measures after a review of the influence and effect on domestic industry.
__________