# EUR-Lex - 52013PC0551 - EN

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# 52013PC0551

**Proposal for a COUNCIL DECISION on the conclusion of the Framework Agreement between the European Union and its Member States, of the one part, and the Republic of Korea, of the other part /* COM/2013/0551 final - 2013/0267 (NLE) */**

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EXPLANATORY MEMORANDUM

1.           BACKGROUND OF THE PROPOSAL

The attached proposal constitutes the legal
instrument for the conclusion of the Framework Agreement between the European
Union and its Member States, of the one part, and the Republic of Korea, of the other part.

– 
Proposal for a Council Decision on the
conclusion of the Framework Agreement between the European Union and its Member
States, of the one part, and the Republic of Korea, of the other part.

Relations between the EU and the Republic of Korea are currently based on the Framework Agreement for Trade and Cooperation
between the European Community and its Member States, on the one hand, and the Republic of Korea, on the other hand which entered into force in 2001.

On 7 May 2008, the Council authorised the
European Commission to negotiate a new Framework Agreement with the Republic of Korea (hereinafter referred to as 'Korea'). Negotiations with Korea were concluded and the text of the draft agreement was initialled on 14 October 2009.
The Agreement was co-signed on 10 May 2010 in Seoul.

2.           RESULTS OF THE
NEGOTIATIONS

The new Framework Agreement is a testimony
to the importance of EU-Korean ties and opens a new era in bilateral relations,
based on shared principles such as equality, mutual respect, mutual benefit, as
well as the respect for democracy, rule of law and human rights.

The Agreement strengthens political,
economic and sectoral cooperation across a wide range of policy fields,
including peace and security, conflict prevention, crisis management, trade,
environment, energy, science and technology, and good governance, as well as
tourism and culture, migration, counter terrorism and the fight against
corruption and organised crime. It will further enhance cooperation on
responding to global challenges, where both Korea and the EU are playing an
increasingly important role, such as in the G20.

The new Framework Agreement will allow the
EU to assume greater responsibility and influence in the Korean Peninsula. By virtue of the new Framework Agreement, the EU will promote European values and
enhance concrete cooperation in a wide range of areas of mutual interest. The
conclusion of the new Framework Agreement is in line with the EU's objective of
creating a comprehensive and coherent economic and political framework for
relations between the EU and ASEAN countries.

3.           LEGAL ELEMENTS OF THE
PROPOSAL

On the part of the Union, the legal bases
for this Agreement are Articles 207 and 212, in conjunction with Article
218(6)(a) of the TFEU.

In light of the above-mentioned results,
the Commission proposes that the Council conclude the Agreement on behalf of
the European Union after having received the consent of the European
Parliament.

2013/0267 (NLE)

Proposal for a

COUNCIL DECISION

on the conclusion of the Framework
Agreement between the European Union and its Member States, of the one part,
and the Republic of Korea, of the other part

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Articles 207 and 212, in
conjunction with Article 218(6)(a) thereof,

Having regard to the proposal from the
European Commission,

Having regard to the consent of the
European Parliament,

Whereas:

(1)       In accordance with the
decision of the Council of 7 May 2008, the Framework Agreement between the
European Union and its Member States, of the one part, and the Republic of Korea, of the other part, was signed on 10 May 2010, subject to its
conclusion at a later date.

(2)       The Agreement should be
approved on behalf of the European Union,

HAS ADOPTED THIS DECISION:

Article 1

1. The Framework Agreement between the
European Union and its Member States, of the one part, and the Republic of Korea, of the other part, is hereby approved on behalf of the Union.

2. The text of the Agreement is attached to
this Decision.

Article 2

The High Representative of the Union/Vice
President of the Commission or a representative of the High Representative of
the Union/Vice President of the Commission shall chair the Joint Committee provided
for in Article 44 of the Agreement.

Article 3

The President of the Council shall
designate the person empowered to give, on behalf of the European Union, the
notification provided for in Article 49(1) of the Agreement.

Article 4

This
Decision shall enter into force on the day of its adoption. It shall be
published in the Official Journal of the European Union.

Done at Brussels,

For
the Council

The
President

Annex

FRAMEWORK
AGREEMENT

BETWEEN
THE EUROPEAN UNION AND

ITS
MEMBER STATES, ON THE ONE PART,

AND
THE REPUBLIC OF KOREA, ON THE OTHER PART

THE EUROPEAN UNION, hereinafter referred to
as ‘the Union’,

and

THE KINGDOM OF BELGIUM,

THE REPUBLIC OF BULGARIA,

THE CZECH REPUBLIC,

THE KINGDOM OF DENMARK,

THE FEDERAL REPUBLIC OF GERMANY,

THE REPUBLIC OF ESTONIA,

IRELAND,

THE HELLENIC REPUBLIC,

THE KINGDOM OF SPAIN,

THE FRENCH REPUBLIC,

THE ITALIAN REPUBLIC,

THE REPUBLIC OF CYPRUS,

THE REPUBLIC OF LATVIA,

THE REPUBLIC OF LITHUANIA,

THE GRAND DUCHY OF LUXEMBOURG,

THE REPUBLIC OF HUNGARY,

MALTA,

THE KINGDOM OF THE NETHERLANDS,

THE REPUBLIC OF AUSTRIA,

THE REPUBLIC OF POLAND,

THE PORTUGUESE REPUBLIC,

ROMANIA,

THE REPUBLIC OF SLOVENIA,

THE SLOVAK REPUBLIC,

THE REPUBLIC OF FINLAND,

THE KINGDOM OF SWEDEN,

THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN
IRELAND,

Contracting Parties to the Treaty on
European Union and the Treaty on the Functioning of the European Union,
hereinafter referred to as ‘the Member States’,

on the one part, and

THE REPUBLIC OF KOREA,

on the other part,

hereinafter jointly referred to as ‘the
Parties’,

CONSIDERING their traditional links of
friendship and the historical, political and economic ties which unite them;

RECALLING the Framework Agreement for Trade
and Cooperation between the European Community and its Member States, on the one hand, and the Republic of Korea, on the other hand, signed in Luxembourg on 28 October 1996 and which entered into force
on 1 April 2001;

MINDFUL of the accelerated process whereby
the European Union is acquiring its own identity in foreign policy and in the
field of security and justice;

CONSCIOUS of the growing role and
responsibility assumed by the Republic of Korea in the international community;

STRESSING the comprehensive nature of their
relationship and the importance of continuous efforts to maintain overall coherence;

CONFIRMING their desire to maintain and
develop their regular political dialogue, which is based on shared values and
aspirations;

EXPRESSING their common will to elevate
their relations into a strengthened partnership including in the political, economic, social and cultural fields;

DETERMINED in this regard to consolidate,
deepen and diversify relations in areas of mutual interest, at the bilateral, regional
and global levels and on the basis of equality, respect of sovereignty,
non-discrimination and mutual benefit;

REAFFIRMING the strong attachment of the Parties to democratic
principles and human rights as laid down in the Universal Declaration of Human
Rights and other relevant international human rights instruments as well as to the principles of the rule of law and good governance;

REAFFIRMING their determination to fight
against serious crimes of international concern and their conviction that the
effective prosecution of the most serious crimes of international concern must
be ensured by taking measures at a national level and by enhancing global collaboration;

CONSIDERING that terrorism is a threat to
global security and wishing to intensify their dialogue and cooperation in the
fight against terrorism, in accordance with relevant international instruments,
in particular Resolution 1373 of the United Nations Security Council, and
reaffirming that respect for human rights and the rule of law is the
fundamental basis of the fight against terrorism;

SHARING the view that
the proliferation of weapons of mass destruction and their means of delivery
poses a major threat to international security, recognising the commitment of
the international community to fight against such proliferation as expressed in
the adoption of relevant international conventions and Resolutions of the
United Nations Security Council, in particular Resolution 1540, and wishing to
strengthen their dialogue and cooperation in this area;

RECOGNISING the need for enhanced
cooperation in the field of justice, freedom and security;

RECALLING
in this regard that the provisions of the Agreement that fall within the scope
of Part III, Title V of the Treaty on the Functioning of the European
Union bind the United Kingdom and Ireland as separate Contracting Parties, and
not as part of the European Union, until the European Union (as the case may
be) notifies the Republic of Korea that either State has become bound on these
matters as part of the European Union in accordance with the Protocol on the
position of the United Kingdom and Ireland annexed to the Treaty on European
Union and the Treaty on the Functioning of the European Union, and that the
same applies to Denmark, in accordance with the relevant Protocol annexed to
those Treaties;

RECOGNISING their desire to promote
sustainable development in its economic, social and environmental dimensions;

EXPRESSING their commitment to ensuring a
high level of environmental protection and their determination to cooperate in
combating climate change;

RECALLING their support for fair
globalisation and for the goals of full and productive employment, as well as decent
work for all;

RECOGNISING that trade and investment flows
have thrived between the Parties based on the global rules-based trading system
under the auspices of the World Trade Organisation (WTO);

DESIROUS OF securing the conditions for and
promoting the sustainable increase and development of trade and investment
between the Parties to their mutual advantage, inter alia by establishing a
free trade area;

CONCURRING on the need to exert collective
efforts to respond to global issues such as terrorism, serious crimes of
international concern, the proliferation of weapons of mass destruction and
their means of delivery, climate change, energy and resources insecurity,
poverty and financial crisis;

DETERMINED to strengthen cooperation in
sectors of mutual interest, notably promoting democratic principles and respect
for human rights, countering the proliferation of weapons of mass destruction;
combating illicit trade in small arms and light weapons; taking measures
against the most serious crimes of concern to the international community;
combating terrorism; cooperation in regional and international organisations;
trade and investment; economic policy dialogue; business cooperation; taxation;
customs; competition policy; information society; science and technology;
energy; transport; maritime transport policy; consumer policy; health;
employment and social affairs; environment and natural resources; climate change;
agriculture, rural development and forestry; marine and fisheries; development
assistance; culture, information, communication, audiovisual and media;
education; the rule of law; legal cooperation; personal data protection;
migration; combating illicit drugs; combating organised crime and corruption;
combating money laundering and terrorism financing; combating cyber crime; law
enforcement; tourism; civil society; public administration; and statistics;

MINDFUL of the importance of facilitating
the involvement in cooperation of the individuals and entities directly
concerned, in particular economic operators and the bodies representing them;

RECOGNISING the desirability of raising the
roles and profiles of both Parties in each other’s regions and of fostering
people-to-people contacts between the Parties;

HAVE AGREED AS FOLLOWS:

TITLE
I

BASIS AND SCOPE

Article 1

Basis for
cooperation

1.           The Parties confirm their
attachment to democratic principles, human rights and fundamental freedoms, and
the rule of law. Respect for democratic principles and human rights and
fundamental freedoms as laid down in the Universal Declaration of Human Rights
and other relevant international human rights instruments, which reflect the
principle of the rule of law, underpins the internal and international policies
of both Parties and constitutes an essential element of this Agreement.

2.           The Parties confirm their
attachment to the Charter of the United Nations and their support for the
shared values expressed therein.

3.           The Parties reaffirm their
commitment to promoting sustainable development in all its dimensions, economic
growth, contributing to the attainment of internationally agreed development
goals, and cooperating to address global environmental challenges, in
particular climate change.

4.           The Parties reaffirm their
attachment to the principles of good governance and the fight against
corruption, notably taking into account their international obligations.

5.           The Parties underline
their shared attachment to the comprehensive nature of bilateral relations and
to maintaining overall coherence in this regard.

6.           The Parties agree to
elevate their relations into a strengthened partnership and to develop
cooperation areas at the bilateral, regional and global levels.

7.           The implementation of this
Agreement between Parties sharing the same values and respect shall therefore
be based on the principles of dialogue, mutual respect, equal partnership,
multilateralism, consensus and respect for international law.

Article
2

Aims
of cooperation

1.           With a view to enhancing
their cooperation, the Parties undertake to intensify their political dialogue
and to boost further their economic relations. Their efforts will in particular
be aimed at:

a)      agreeing on a future vision for
strengthening their partnership and developing joint projects to implement this
vision;

b)      conducting regular political
dialogues;

c)      promoting collective efforts in all
relevant regional and international fora and organisations to respond to global
issues;

d)      fostering economic cooperation in
areas of mutual interest, including scientific and technological cooperation,
with a view to diversifying trade to their mutual advantage;

e)      encouraging cooperation between
businesses by facilitating investment on both sides and by promoting better
mutual understanding;

f)       strengthening respective
participation in each other’s cooperation programmes open to the other Party;

g)      raising the roles and profiles of both
Parties in each other’s regions, through various means including cultural
exchanges, the use of information technology, and education;

h)      promoting people-to-people
contacts and understanding.

2.           Building on their
well-established partnership and shared values, the Parties agree to develop
their cooperation and dialogue on all issues of common interest. Their efforts
will in particular be aimed at:

a)      strengthening political dialogue and
cooperation, notably on human rights; non-proliferation of weapons of mass
destruction; small arms and light weapons; the most serious crimes of concern
to the international community; and counter-terrorism;

b)      strengthening cooperation in all trade
and investment-related areas of mutual interest and securing the conditions for
the sustainable increase of trade and investment between the Parties to their
mutual advantage;

c)      strengthening cooperation in the area
of economic cooperation, notably economic policy dialogue; business
cooperation; taxation; customs; competition policy; information society;
science and technology; energy; transport; maritime transport policy; and
consumer policy;

d)      strengthening cooperation in the area
of sustainable development, notably health; employment and social affairs;
environment and natural resources; climate change; agriculture, rural
development and forestry; marine and fisheries; and development assistance;

e)      strengthening cooperation in the area
of culture, information, communication, audiovisual and media; and education;

f)       strengthening cooperation in the
field of justice, freedom and security, notably the rule of law; legal
cooperation; personal data protection; migration; combating illicit drugs;
combating organised crime and corruption; combating money laundering and
terrorism financing; combating cyber crime; and law enforcement;

g)      strengthening cooperation in other
areas of common interest, notably tourism; civil society; public administration;
and statistics.

TITLE
II

POLITICAL
DIALOGUE AND COOPERATION

Article
3

Political
dialogue

1.           A regular political
dialogue, based on shared values and aspirations, will be established between
the Republic of Korea and the European Union. This dialogue will take place in
accordance with the procedures agreed between the Republic of Korea and the European Union.

2.           The political dialogue
will aim to:

a)      underline the Parties’ commitment to
democracy and respect for human rights and fundamental freedoms;

b)      promote peaceful solutions to
international or regional conflicts and the strengthening of the United Nations
and other international organisations;

c)      enhance policy consultations on
international security matters such as arms control and disarmament,
non-proliferation of weapons of mass-destruction, and the international
transfer of conventional weapons;

d)      reflect on major international issues
of common interest by increasing the exchange of relevant information both
between the two parties and within international fora;

e)      enhance consultations on issues of
particular interest to the countries of the Asia-Pacific and European regions,
for the promotion of peace, stability and prosperity in both regions.

3.           Dialogue between the
Parties will take place through contacts, exchanges and consultations,
particularly in the following forms:

a)      summit meetings at leaders’ level will
be held whenever the Parties deem it necessary;

b)      annual consultations at ministerial
level will be held wherever the Parties agree;

c)      briefings on major foreign and
domestic developments at senior officials’ level;

d)      sectoral dialogues on issues of common
interest;

e)      exchanges of delegations between the
European Parliament and the National Assembly of the Republic of Korea.

Article
4

Countering
the proliferation of Weapons of Mass Destruction

1.           The Parties consider that
the proliferation of weapons of mass destruction and their means of delivery,
both to state and non-state actors, represents one of the most serious threats
to international stability and security.

2.           The Parties therefore
agree to cooperate in and contribute towards countering the proliferation of
weapons of mass destruction and their means of delivery through full
implementation of their respective existing legal obligations relating to
disarmament and non-proliferation and other relevant instruments agreed by
both Parties. The Parties agree that this provision constitutes an
essential element of this Agreement.

3.           The Parties furthermore
agree to cooperate and to contribute to countering the proliferation of weapons
of mass destruction and their means of delivery by:

a)      taking steps to sign, ratify, or
accede to, as appropriate, and fully implement all other relevant international
instruments;

b)      the establishment of an effective
system of national export controls to prevent the proliferation of weapons of
mass destruction and related goods and technologies, including end-user
controls and appropriate civil and criminal penalties for breaches of export
controls.

4.           The Parties agree that
their political dialogue will accompany and consolidate these elements.

Article
5

Small
Arms and Light Weapons

1.           The Parties recognise that
the illicit manufacture, transfer and circulation of small arms and light
weapons, including their ammunition, and their excessive accumulation, poor
management, inadequately secured stockpiles and uncontrolled spread continue to
pose a serious threat to peace and international security.

2.           The Parties agree to
implement their respective commitments to deal with the illicit trade in small
arms and light weapons, including their ammunition, within the framework of
international instruments including the UN Programme of Action to Prevent,
Combat and Eradicate the Illicit Trade in Small Arms and Light Weapons in All
Its Aspects (UN PoA) and the International Instrument to Enable States to
Identify and Trace, in a Timely and Reliable Manner, Illicit Small Arms and
Light Weapons (ITI) as well as obligations deriving from UN Security
Council resolutions.

3.           The Parties undertake to
cooperate and to ensure coordination, complementarity and synergy in their
efforts to deal with the illicit trade in small arms and light weapons and
ammunition, at global, regional, sub-regional and national levels.

Article
6

The
most serious crimes of concern to the international community

1.           The Parties reaffirm that
the most serious crimes of concern to the international community as a whole
must not go unpunished and that their effective prosecution must be ensured by
taking measures at the national level and by enhancing international
cooperation, as appropriate, including the International Criminal Court. The
Parties agree to fully support the universality and integrity of the Rome
Statute of the International Criminal Court and related instruments.

2.           The Parties agree that a
dialogue between them on these matters would be beneficial.

Article
7

Cooperation
in combating terrorism

1.           The Parties, reaffirming
the importance of the fight against terrorism, and in accordance with
applicable international conventions, including international humanitarian,
human rights and refugee law, as well as with their respective legislation and
regulations, and, taking into account the UN Global Counter-Terrorism Strategy,
contained in the UN General Assembly Resolution No 60/288 of
8 September 2006, agree to cooperate in the prevention and suppression of
terrorist acts.

2.           The Parties shall do so in
particular:

a)      in the framework of implementation of
Resolutions of the UN Security Council and their respective obligations
under other relevant international conventions and instruments;

b)      by exchange of information on
terrorist groups and their support networks, in accordance with international
and national law;

c)      by exchanges of views on means and
methods used to counter terrorism, including in technical fields and training,
and by exchange of experiences in respect of terrorism prevention;

d)      by cooperating to deepen the
international consensus on the fight against terrorism including the legal
definition of terrorist acts, as appropriate, and in particular by working
towards an agreement on the Comprehensive Convention on International Terrorism;

e)      by sharing relevant best practices in
the area of protection of human rights in the fight against terrorism.

TITLE
III

COOPERATION
IN REGIONAL AND INTERNATIONAL ORGANISATIONS

Article
8

Cooperation
in regional and international organisations

The Parties undertake to cooperate and
exchange views in regional and international fora and organisations such as the
United Nations, the International Labour Organisation (ILO), the Organisation
for Economic Cooperation and Development (OECD), the WTO, the Asia-Europe
Meeting (ASEM) and ASEAN Regional Forum (ARF).

TITLE
IV

COOPERATION
IN THE AREA OF ECONOMIC DEVELOPMENT

Article
9

Trade
and investment

1.           The Parties undertake to
cooperate in securing the conditions for and promoting the sustainable increase
and development of trade and investment between them to their mutual advantage.
The Parties shall engage in dialogue and strengthen cooperation in all trade- and
investment-related areas of mutual interest, in order to facilitate sustainable
trade and investment flows, to prevent and remove obstacles to trade and
investment, and to advance the multilateral trade system.

2.           To this end, the Parties
shall give effect to their cooperation in the trade and investment area through
the agreement establishing a free trade area. The aforementioned agreement
shall constitute a specific agreement giving effect to the trade provisions of
this Agreement, within the terms of Article 43.

3.           The Parties shall keep
each other informed and exchange views concerning the development of bilateral
and international trade, investment and related policies and issues.

Article
10

Economic
policy dialogue

1.           The Parties agree to
strengthen the dialogue between their authorities and to promote the exchange
of information and the sharing of experiences on macroeconomic policies and
trends.

2.           The Parties agree to
strengthen dialogue and cooperation with a view to improving accounting,
auditing, supervisory and regulatory systems in banking, insurance and other
parts of the financial sector.

Article
11

Business
cooperation

1.           The Parties, taking into
account their respective economic policies and objectives, agree to promote
industrial policy cooperation in all fields deemed suitable particularly with a
view to improving the competitiveness of small and medium-sized enterprises
(SMEs), inter alia, through:

a)      exchanging information and experiences
on creating framework conditions for SMEs to improve their competitiveness and
on procedures related to the creation of SMEs;

b)      promoting contacts between economic
operators, encouraging joint investments and establishing joint ventures and
information networks notably through existing programmes;

c)      facilitating access to finance and
marketing, providing information and stimulating innovation;

d)      facilitating the activities
established by SMEs of both sides;

e)      promoting corporate social
responsibility and accountability and encouraging responsible business
practices, including sustainable consumption and production.

2.           The Parties shall
facilitate the relevant cooperation activities established by the private
sectors of both sides.

Article
12

Taxation

With a view to strengthening and developing
economic activities while taking into account the need to develop an
appropriate regulatory framework, the Parties recognise and commit themselves
to implement in the tax area the principles of transparency, exchange of
information and fair tax competition. To that effect, in accordance with their
respective competences, the Parties will improve international cooperation in
the tax area, facilitate the collection of legitimate tax revenues, and develop
measures for the effective implementation of the above mentioned principles.

Article
13

Customs

The Parties shall cooperate in the customs
field on a bilateral and multilateral basis. To this end, they shall in
particular share experiences and examine possibilities to simplify procedures,
increase transparency and develop cooperation. They shall also seek convergence
of views and joint action in relevant international frameworks.

Article
14

Competition
policy

1.         The Parties shall foster fair
competition in economic activities by fully enforcing their competition laws
and regulations.

2.         In pursuit of the goal of
paragraph 1 of this Article and in accordance with the Agreement between
the Government of the Republic of Korea and the European Community concerning
cooperation on anti-competitive activities, the Parties shall undertake to
cooperate in:

a)         recognising the importance of
competition law and competition authorities and striving to proactively enforce
the law in order to create an environment for fair competition;

b)         sharing information and
enhancing cooperation between competition authorities.

Article
15

Information
society

1.           Recognising that
Information and Communication Technologies are key elements of modern life and
of vital importance to economic and social development, the Parties agree to
exchange views on their respective policies in this field.

2.           Cooperation in this area
shall, inter alia, focus on:

a)      exchanging views on the different
aspects of the Information Society, in particular electronic communications
policies and regulation including universal service, licensing and general
authorisations, protection of privacy and personal data, and the independence
and efficiency of the regulatory authority;

b)      interconnection and interoperability
of research networks and services, including in a regional context;

c)      standardisation and dissemination of
new information and communication technologies;

d)      promotion of research cooperation
between the Parties in the area of Information and Communication Technologies;

e)      security issues and aspects of
information and communication technologies including promotion of online
safety, combating cyber crime and the misuse of information technology and all
forms of electronic media.

3.           Business-to-business
cooperation shall be encouraged.

Article
16

Science
and technology

The Parties shall encourage, develop and
facilitate cooperative activities in the areas of science and technology for
peaceful purposes, in accordance with the Agreement on the Scientific and
Technological Cooperation between the European Community and the Government of
the Republic of Korea.

Article
17

Energy

1.           The Parties recognise the
importance of the energy sector to economic and social development and shall
endeavour, within the scope of their respective competences, to enhance
cooperation in this field with a view to:

a)      diversifying energy supplies in order
to strengthen energy security and to develop new, sustainable, innovative and
renewable forms of energy, including, inter alia, biofuels and biomass, wind
and solar energy as well as hydro power generation;

b)      supporting the development of policies
to render renewable energy more competitive;

c)      achieving rational use of energy with
contributions from both supply and demand sides by promoting energy efficiency
in energy production, transportation, distribution and end-use;

d)      fostering the transfer of technology
aimed at sustainable energy production and energy efficiency;

e)      enhancing capacity-building and
facilitation of investment in the field of energy taking into account
principles of transparency, non-discrimination and market-compatibility;

f)       promoting competition in the energy
market;

g)      exchanging views on developments in
the global energy markets, including impact on developing countries.

2.           To these ends, the Parties
will work as appropriate to promote, particularly through existing regional and
international frameworks, the following cooperative activities:

a)      cooperation in energy policy-making
and exchange of information relevant to energy policies;

b)      exchange of information on status and
trends in the energy market, industry and technology;

c)      conduct of joint studies and research;

d)      increase of trade and investment in
the energy sector.

Article
18

Transport

1.           The Parties shall
endeavour to cooperate in all relevant areas of transport policy, including
integrated transport policy, with a view to improving the movement of goods and
passengers, promoting maritime and aviation safety and security, environmental
protection, and increasing the efficiency of their transport systems.

2.           Cooperation between the
Parties in this area shall aim to promote:

a)      exchanges of information on their respective
transport policies and practices, especially regarding urban, rural, inland
waterway, air and maritime transport, including their logistics and the
interconnection and interoperability of multimodal transport networks, as well
as the management of road, railways, ports and airports;

b)      a dialogue and joint actions in the
field of air transport in areas of mutual interest, including the agreement on
certain aspects of air services and the examination of possibilities for
further development of relations, as well as technical and regulatory
cooperation in areas such as aviation safety, security, environment, air
traffic management, application of competition law and economic regulation of
the air transport industry, with a view to supporting regulatory convergence
and removal of obstacles to doing business. On this basis, the Parties will
explore more comprehensive cooperation in the area of civil aviation;

c)      cooperation on the reduction in the
greenhouse gas emissions in transport sector;

d)      cooperation in terms of international
transport fora;

e)      the implementation of security,
safety, and pollution prevention standards, notably as regards maritime
transport and aviation, in line with the relevant international conventions
applicable to both Parties, including cooperation in the appropriate
international fora aimed at ensuring better enforcement of international
regulations.

3.           As regards civil global
satellite navigation, the Parties shall cooperate in accordance with the
Cooperation Agreement on a Civil Global Navigation Satellite System (GNSS)
between the European Community and its Member States, of the one part, and the Republic of Korea, of the other part.

Article
19

Maritime
transport policy

1.           The Parties undertake to
move towards the goal of unrestricted access to the international maritime
market and traffic based on fair competition on a commercial basis, in
accordance with the provisions of this Article.

2.           In pursuit of the goal of
paragraph 1, the Parties shall:

a)      not introduce cargo-sharing
arrangements in future bilateral agreements with third countries concerning
maritime transport services, including dry and liquid bulk and liner trade, and
not activate such cargo-sharing arrangements in case they exist in previous
bilateral agreements;

b)      abstain from implementing, on entry
into force of this Agreement, administrative and technical and legislative
measures which could have the effect of discriminating between their own
nationals or companies and those of the other Party in the supply of services
in international maritime transport;

c)      grant no less favourable treatment for
the ships operated by nationals or companies of the other Party, than that
accorded to its own ships, with regard to access to ports open to international
trade, the use of infrastructure and auxiliary maritime services of the ports,
as well as related fees and charges, customs facilities and assignment of
berths and facilities for loading and unloading;

d)      allow the shipping companies of the
other Party to have their commercial presence in its territory for the purpose
of carrying out shipping agency activities under conditions of establishment
and operation no less favourable than those accorded to its own companies or to
subsidiaries or branches of companies of any non-member country, whichever is
the better.

3.           For the purpose of this
Article, access to the international maritime market shall include, inter alia,
the right for international maritime transport providers of each Party to
arrange door-to-door transport services involving a sea leg, and to this effect
to directly contract with local providers of transport modes other than
maritime transport on the territory of the other Party without prejudice to
applicable nationality restrictions concerning the carriage of goods and
passengers by those other transport modes.

4.           The provisions of this
Article shall apply to European Union companies and Korean companies.
Beneficiaries of the provisions of this Article shall also be shipping
companies established outside the European Union or the Republic of Korea and controlled by nationals of a Member State or of the Republic of Korea, if their
vessels are registered in that Member State or in the Republic of Korea in accordance with their respective legislations.

5.           The issue of the
operations in the European Union and in the Republic of Korea of shipping
agency activities shall be dealt with by specific agreements, where
appropriate.

6.           The Parties shall pursue a
dialogue in the field of maritime transport policy.

Article
20

Consumer
Policy

The Parties shall endeavour to cooperate in
the field of consumer policy in order to secure a high level of consumer
protection. The Parties agree that cooperation within this field may involve to
the extent possible:

a)      increasing the compatibility of
consumer legislation in order to avoid barriers to trade while ensuring a high
level of consumer protection;

b)      promoting exchange of information on
consumer systems, including consumer laws, consumer product safety, enforcement
of consumer legislation, consumer education and empowerment, and consumer
redress;

c)      encouraging the development of
independent consumer associations and contacts between consumer
representatives.

TITLE
V

COOPERATION
IN THE AREA OF SUSTAINABLE DEVELOPMENT

Article
21

Health

1.           The Parties agree to
encourage mutual cooperation and information exchange in the fields of health
and the effective management of cross-border health problems.

2.           The Parties shall seek to
promote information exchange and mutual cooperation, inter alia, as follows:

a)      information exchange on the
surveillance of infectious diseases, including pandemic influenza, and on the
early warning and countermeasures;

b)      information exchange on the health
strategies and the public health plans;

c)      information exchange on health
promotion policies, such as anti-smoking campaigns, obesity prevention and
disease control;

d)      information exchange to the extent
possible in the field of pharmaceutical safety and approval;

e)      information exchange to the extent
possible, as well as joint research in the field of food safety such as food
laws and regulations, emergency alert, etc.;

f)       cooperation in R&D related
aspects, such as advanced treatment and innovative, orphan drugs;

g)      information exchange and cooperation
regarding e-health policy.

3.           The Parties shall
endeavour to promote implementation of international health agreements such as
the International Health Regulations and the Framework Convention on Tobacco
Control.

Article
22

Employment
and social affairs

1.           The Parties agree to
enhance cooperation in the field of employment and social affairs, including in
the context of globalisation and demographic change. Efforts shall be made in
promoting cooperation and exchanges of information and experiences regarding the
employment and labour matters. Areas of cooperation may include regional and
social cohesion, social integration, social security systems, lifelong skills
development, health and safety at the workplace, gender equality and decent
work.

2.           The Parties reaffirm the
need to support a process of globalisation which is beneficial to all and to
promote full and productive employment and decent work as a key element of
sustainable development and poverty reduction.

3.           The Parties reaffirm their
commitments to respect, promote and realise internationally recognised labour
and social standards, as laid down in particular in the ILO Declaration on
Fundamental Rights and Principles at Work.

4.           The forms of cooperation
may include, inter alia, specific programmes and projects, as mutually agreed,
as well as dialogue, cooperation and initiatives on topics of common interest
at bilateral or multilateral level.

Article
23

Environment
and natural resources

1.           The Parties agree on the
need to conserve, and manage in a sustainable manner, natural resources and
biological diversity as a basis for the development of current and future
generations.

2.           The Parties shall
endeavour to continue and to strengthen their cooperation on protection of the
environment, including in a regional context, specifically as regards:

a)      climate change and energy efficiency;

b)      environmental awareness;

c)      participating in and implementing
multilateral environmental agreements, including biodiversity, biosafety and
the Convention on International Trade in endangered Species of Wild Fauna and
Flora;

d)      promoting environmental technologies,
products and services, including environmental management systems and
environmental labelling;

e)      prevention of illegal transboundary
movement of hazardous substances, hazardous wastes and other forms of waste;

f)       coastal and marine environment,
conservation, pollution, and degradation control;

g)      local participation in environmental
protection as a key element of sustainable development;

h)      soils and land management;

i)       the exchange of information,
expertise and practices.

3.           The outcome of the World
Summit on Sustainable Development and the implementation of relevant
multilateral environmental agreements shall be taken into account, as relevant.

Article
24

Climate
change

1.           The Parties recognise the
common global threat of climate change and the need to take action to cut
emissions in order to stabilise greenhouse gas concentrations in the atmosphere
at a level that would prevent dangerous anthropogenic interference with the
climate system. Within the scope of their respective competences, and without
prejudice to discussions on climate change in other fora, such as the United
Nations Framework Convention on Climate Change (UNFCCC), the Parties shall
enhance cooperation in this field. Such cooperation shall aim at:

a)      combating climate change, with the
overall goal of a rapid transition to low-carbon societies, through nationally
appropriate mitigation and adaptation actions;

b)      advocating the efficient use of
resources, inter alia through widespread use of best available and economically
viable low carbon technologies and standards for mitigations
and adaptation;

c)      exchanging expertise and information
regarding benefits and architecture of trading schemes;

d)      enhancing public and private sector
financing instruments, including market mechanisms and public private
partnerships which could effectively support action to combat climate change;

e)      collaborating on low-carbon technology
research, development, diffusion, deployment and transfer in order to mitigate
greenhouse gas emissions while maintaining economic growth;

f)       exchanging experience and expertise,
where appropriate, in monitoring and analysing greenhouse gases’ effects and
developing mitigation and adaptation programmes;

g)      supporting, where appropriate,
mitigation and adaptation action of developing countries, including through the
Flexible Mechanisms of the Kyoto Protocol.

2.           To these ends, the Parties
agree to intensify dialogue and cooperation at political, policy and technical
levels.

Article
25

Agriculture,
rural development and forestry

The Parties agree to encourage cooperation
in agriculture, rural development and forestry. The Parties will exchange
information and develop cooperation in particular on:

a)      agricultural and forestry policy and
international agricultural and forestry outlook in general;

b)      the registration and protection of
Geographical Indications;

c)      organic production;

d)      research in the field of agriculture
and forestry;

e)      development policy for rural areas and
in particular diversification and restructuring of agricultural sectors;

f)       sustainable agriculture, forestry and
integration of environmental requirements into agricultural policy;

g)      the links between agriculture,
forestry and environment and the development policy for rural areas;

h)      promotion activities for agricultural
food products;

i)       sustainable forest management to
prevent deforestation and encourage the creation of new woodland, including due
regard to interests of developing countries where timber is sourced.

Article
26

Marine
and fisheries

The Parties shall encourage marine and
fisheries cooperation, at bilateral and multilateral level, particularly with a
view to promoting sustainable and responsible marine and fisheries development
and management. Areas of cooperation may include:

a)      the exchange of information;

b)      supporting sustainable and responsible
long term marine and fisheries policy including conservation and management of
coastal and marine resources; and

c)      promoting efforts to prevent and
combat illegal, unreported and unregulated fishing practices.

Article
27

Development
assistance

1.           The Parties agree to
exchange information on their development assistance policies with a view to
establishing a regular dialogue on the objectives of these policies and their
respective development aid programmes in third countries. They will study to
what extent more substantial cooperation is feasible, in accordance with their
respective legislations and the conditions applicable to the implementation of
these programmes.

2.           The Parties reaffirm their
commitment to the Paris Declaration of 2005 on Aid Effectiveness and agree to
strengthen cooperation with a view to further improving development
performance.

TITLE
VI

COOPERATION
IN THE AREA OF EDUCATION AND CULTURE

Article
28

Cooperation
in culture, information, communication, audiovisual and media

1.           The Parties agree to
promote cooperation in order to increase mutual understanding and the knowledge
of their respective cultures.

2.           The Parties shall
endeavour to take appropriate measures to promote cultural exchanges as well as
to carry out joint initiatives in this area.

3.           The Parties agree to
cooperate closely in relevant international fora, such as the
United Nations Educational Scientific and Cultural Organisation (UNESCO),
and the ASEM, in order to pursue common objectives and promote cultural
diversity, respecting the provisions of the UNESCO Convention on the Protection
and Promotion of the Diversity of Cultural Expressions.

4.           The Parties will consider
means of encouraging exchanges, cooperation and dialogue between relevant
institutions in the areas of audiovisual and media.

Article
29

Education

1.           The Parties acknowledge
the crucial contribution of education and training to the development of human
resources capable of participating in the global knowledge-based economy; and
recognise that they have a common interest in cooperation in education and
training.

2.           In accordance with their
mutual interests and the aims of their policies on education, the Parties
undertake to support jointly appropriate cooperative activities in the field of
education, training and youth, with particular emphasis on higher education.
This cooperation may take the form of, in particular:

a)      support to joint cooperation projects
between education and training institutions in the European Union and the
Republic of Korea, with a view to promoting curriculum development, joint study
programmes and student mobility;

b)      dialogue, studies, and exchange of
information and know-how in the field of education policy;

c)      promotion of exchange of students,
academic and administrative staff of higher education institutions, and youth
workers, including through the implementation of the Erasmus Mundus programme;

d)      cooperation in education sectors of
common interest.

TITLE
VII

COOPERATION
IN THE AREA OF JUSTICE, FREEDOM AND SECURITY

Article
30

Rule
of law

In their cooperation in the area of
justice, freedom and security, the Parties shall attach particular importance
to the promotion of the rule of law, including the independence of the
judiciary, access to justice, and the right to a fair trial.

Article
31

Legal
cooperation

1.           The Parties agree to
develop judicial cooperation in civil and commercial matters, in particular as
regards the ratification and implementation of multilateral conventions on
civil judicial cooperation, including the Conventions of the Hague Conference
on Private International Law in the field of international legal cooperation
and litigation as well as the protection of children.

2.           The Parties agree to
facilitate and encourage the arbitral solution of civil and private commercial
disputes whenever possible according to the applicable international
instruments.

3.           As regards judicial
cooperation in criminal matters, the Parties will seek to enhance arrangements
on mutual legal assistance and extradition. This would include, where
appropriate, accession to, and implementation of, the relevant international
instruments of the United Nations including the Rome Statute of the
International Criminal Court as referred to in Article 6 of
this Agreement.

Article
32

Personal
data protection

1.           The Parties agree to
cooperate in order to improve the level of protection of personal data to the
highest international standards such as that contained in the UN Guidelines for
the Regulation of Computerized Personal Data Files (UN General Assembly
Resolution 45/95 of 14 December 1990).

2.           Cooperation on protection
of personal data may include, inter alia, exchange of information and
expertise.

Article
33

Migration

1.           The Parties agree to
strengthen and intensify cooperation in the areas of the illegal migration,
smuggling and trafficking in human beings, as well as the inclusion of the
migration concerns in the national strategies for economic and social
development of the areas from which migrants originate.

2.           In the framework of the
cooperation to prevent and control illegal immigration, the Parties agree to
readmit their nationals who stay illegally in the territory of the other Party.
To this end, the Parties will provide their nationals with appropriate identity
documents for such purposes. In cases where the nationality is in doubt, the
Parties agree to identify their alleged nationals.

3.           The Parties endeavour to
conclude, if necessary, an agreement regulating the specific obligations for
readmission of their nationals. This will also address conditions relating to
nationals of other countries and stateless persons.

Article
34

Combating
illicit drugs

1.           In accordance with their
respective laws and regulations, the Parties will aim at reducing the supply
and trafficking of, and demand for, illicit drugs as well as their impact on
drug users and society at large and to achieve a more effective prevention of diversion
of drug precursors used for the illicit manufacture of narcotic drugs and
psychotropic substances. In their cooperation, the Parties shall ensure that a
comprehensive and balanced approach is taken in pursuing this aim through legal
market regulations and effective action and coordination between the competent
authorities including those from the health, education, social, law enforcement
and justice sectors.

2.           The Parties shall agree on
means of cooperation to attain these objectives. Actions shall be based on
commonly agreed principles along the lines of the relevant international
conventions, the Political Declaration and the Special Declaration on the
guiding principles of drug demand reduction, approved by the Twentieth United
Nations General Assembly Special Session on Drugs in June 1998.

Article
35

Combating
organised crime and corruption

The Parties agree to cooperate on and
contribute to the fight against organised, economic and financial crime and
corruption, counterfeiting and illegal transactions, through full compliance
with their existing mutual international obligations in this area including on
effective cooperation in the recovery of assets or funds derived from acts of
corruption. The Parties will promote the implementation of the UN Convention on
Transnational Organised Crime and its supplementing Protocols and the UN
Convention against Corruption.

Article
36

Combating
money laundering and terrorism financing

1.           The Parties agree on the
need to work towards and to cooperate on preventing the use of their financial
systems to launder the proceeds of all criminal activities including drug
trafficking and corruption and to the financing of terrorism. This cooperation
extends to the recovery of assets or funds derived from the proceeds of crimes.

2.           The Parties may exchange
relevant information within the framework of respective legislations and apply
appropriate standards to combat money laundering and financing of terrorism
equivalent to those adopted by relevant international bodies active in this
area, such as the Financial Action Task Force on money laundering (FATF).

Article
37

Combating
cyber crime

1.           The Parties will
strengthen cooperation to prevent and combat high technology, cyber and
electronic crimes and the distribution of terrorist content via the Internet
through exchanging information and practical experiences in compliance with
their national legislation within the limits of their responsibility.

2.           The Parties will exchange
information in the fields of the education and training of cyber crime
investigators, the investigation of cyber crime, and digital forensic science.

Article
38

Law
enforcement cooperation

The Parties agree to cooperate among law
enforcement authorities, agencies and services and to contribute to disrupting and dismantling transnational crime
threats common to the Parties. The cooperation among law enforcement
authorities, agencies and services can take the form of mutual assistance in
investigations, sharing of investigational techniques, joint education and
training of law enforcement personnel and any other type of joint activities
and assistance as may be mutually agreed by the Parties.

TITLE
VIII

COOPERATION
IN OTHER AREAS

Article
39

Tourism

The Parties undertake to establish
cooperation in the field of tourism, with a view to increasing better mutual
understanding and promoting a balanced and sustainable development of tourism.

This cooperation may take the form of, in
particular:

a)      exchange of information on issues of
common interest concerning tourism;

b)      organisation of tourism events;

c)      tourism exchanges;

d)      cooperation in the preservation and
management of cultural heritage;

e)      cooperation in tourism management.

Article
40

Civil
Society

The Parties recognise the role and
potential contribution of organised civil society in the dialogue and
cooperation process under this Agreement and agree to promote effective
dialogue with organised civil society and its effective participation.

Article
41

Public
administration

The Parties agree to cooperate by exchanging
experience and best practice, building on existing efforts, with respect to the
modernisation of public administration in areas such as:

a)      improving organisational efficiency;

b)      increasing institutions’ effectiveness
in service delivery;

c)      ensuring transparent management of
public resources and accountability;

d)      improving the legal and institutional
framework;

e)      policy design and implementation.

Article
42

Statistics

1.           The Parties shall develop
and strengthen their cooperation on statistical issues, thereby contributing to
the long-term objective of providing timely, internationally comparable and
reliable statistical data. It is expected that sustainable, efficient and
professionally independent statistical systems shall produce information
relevant for the Parties’ citizens, businesses and decision-makers, enabling
them to take informed decisions. The Parties shall, inter alia, exchange
information and expertise and develop cooperation taking into account the
already accumulated experience.

Cooperation shall aim at:

a)      progressive harmonisation between the
statistical systems of both Parties;

b)      fine-tuning of data exchange between
the Parties taking into account the application of relevant international
methodologies;

c)      enhancing the professional capacity of
the statistical staff to allow them to apply the relevant statistical
standards;

d)      promoting the exchange of experience
between the Parties on the development of statistical know-how.

2.           The forms of cooperation
may include, inter alia, specific programmes and projects, as mutually agreed,
as well as dialogue, cooperation and initiatives on topics of common interest
at bilateral or multilateral level.

TITLE
IX

INSTITUTIONAL
FRAMEWORK

Article
43

Other
agreements

1.           The Framework Agreement
for Trade and Cooperation between the European Community and its Member States, on the one hand, and the Republic of Korea, on the other hand, signed in Luxembourg on 28 October 1996 and which entered into force on 1 April 2001 is hereby
repealed.

2.           This Agreement updates and
replaces the aforementioned agreement. References to the aforementioned
agreement in all other agreements between the Parties shall be construed as
referring to this Agreement.

3.           The Parties may complement
this Agreement by concluding specific agreements in any area of cooperation
falling within its scope. Such specific agreements shall be an integral part of
the overall bilateral relations as governed by this Agreement and shall form
part of a common institutional framework.

4.           Existing agreements
relating to specific areas of cooperation falling within the scope of this
Agreement shall similarly be considered part of the overall bilateral relations
as governed by this Agreement and as forming part of a common institutional
framework.

Article
44

Joint
Committee

1.           The Parties shall
establish under this Agreement a Joint Committee consisting of representatives
of the members of the Council of the European Union and representatives of the
European Commission, on the one hand, and representatives of the Republic of Korea, on the other.

2.           Consultations shall be
held in the Joint Committee to facilitate the implementation and to further the
general aims of this Agreement as well as to maintain overall coherence in the
relations and to ensure the proper functioning of any other agreement between
the Parties.

3.           The Joint Committee shall:

a)      ensure that this Agreement operates
properly;

b)      monitor the development of the
comprehensive relationship between the Parties;

c)      request, as appropriate, information
from committees or other bodies established under other agreements falling
under the common institutional framework and consider any reports submitted by
them;

d)      exchange opinions and make suggestions
on any issue of common interest, including future actions and the resources
available to carry them out;

e)      set priorities in relation to the aims
of this Agreement;

f)       seek appropriate methods of
forestalling problems which might arise in areas covered by
this Agreement;

g)      resolve any dispute arising in the
application or interpretation of this Agreement by consensus in accordance with
Article 45(3);

h)      examine all the information presented
by a Party regarding non-execution of the obligations and hold consultations
with the other Party to seek a solution acceptable to both Parties in
accordance with Article 45(3).

4.           The Joint Committee will
normally meet once a year in Brussels and Seoul alternately. Special meetings
of the Committee shall be held at the request of either Party. The Joint Committee
shall be chaired alternately by each of the Parties. It shall normally meet at
the level of senior officials.

Article
45

Modalities
for implementation

1.           The Parties shall take any
general or specific measures required to fulfil their obligations under this
Agreement and shall ensure that they comply with the objectives laid down in
this Agreement.

2.           Implementation is covered
by consensus and dialogue. If, however, there is divergence of views in the
application or interpretation of this Agreement, either Party shall refer to
the Joint Committee.

3.           If either Party considers
that the other Party has failed to fulfil its obligations under this Agreement,
it may take appropriate measures in accordance with international law. Before
doing so, except in cases of special urgency, the Party shall present all the
information required to the Joint Committee for a thorough examination of the
situation. The Parties shall hold consultations within the Joint Committee and,
if both Parties agree, these consultations may be facilitated by a mediator
appointed by the Joint Committee.

4.           In cases of special
urgency, the measure shall be notified immediately to the other Party. At the
request of the other Party, consultations shall be held for a period of up to
twenty (20) days. After this period, the measure shall apply. In this
case, the other Party may request arbitration according to Article 46 with
a view to examining any aspect of, or the basis for, the measure.

Article
46

Arbitration
procedure

1.           The arbitration tribunal
shall consist of three (3) arbitrators. Each Party shall appoint one arbitrator
and the Joint Committee shall appoint a third arbitrator within fourteen
(14) days, as appropriate, upon the request of either Party for the
arbitration. The appointment of an arbitrator by a Party shall be notified
immediately to the other Party in writing through diplomatic channels. The
arbitrators’ decision shall be taken by a majority of votes. The arbitrators
shall endeavour to reach a decision as quickly as possible and in any event no
later than three (3) months from the date of appointment of the arbitrators.
The Joint Committee shall agree the detailed procedures for the speedy conduct
of arbitration.

2.           Each Party to the dispute
must take the steps required to implement the decision of the arbitrators. The
arbitrators shall, upon request, issue recommendations on how to implement
their decision with a view to restoring the balance of rights and obligations
under this Agreement.

TITLE
X

FINAL
PROVISIONS

Article
47

Definition

For the purposes of this Agreement, the
term ‘the Parties’ means the European Union
or its Member States, or the European Union and its Member States, in accordance with their respective competences, on the one hand, and the Republic of Korea, on the other.

Article
48

National
security and disclosure of information

Nothing in this Agreement shall be
construed to require any Party to provide any information, the disclosure of
which it considers contrary to its essential security interests.

Article
49

Entry
into force, duration and termination

1.           This Agreement shall enter
into force on the first day of the month following the date on which the
Parties have notified each other of the completion of the legal procedures
necessary for that purpose.

2.           Notwithstanding paragraph
1, this Agreement shall be applied on a provisional basis pending its entry
into force. The provisional application begins on the first day of the first
month following the date on which the Parties have notified each other of the
completion of the necessary procedures.

3.           This Agreement shall be
valid indefinitely. Either Party may notify in writing the other Party of its
intention to denounce this Agreement. The denunciation shall take effect six
months after the notification.

Article
50

Notifications

The notifications made in accordance with
Article 49 shall be made to the General Secretariat of the Council of the
European Union and the Ministry for Foreign Affairs and Trade of the Republic of Korea, respectively.

Article
51

Declarations
and annexes

The Declarations and Annexes to this
Agreement shall form an integral part of this Agreement.

Article
52

Territorial
application

This Agreement shall apply, on the one
hand, to the territories in which the Treaty on European Union is applied
and under the conditions laid down in that Treaty, and, on the other hand, to
the territory of the Republic of Korea.

Article
53

Authentic
texts

This Agreement is drawn up in duplicate in
the Bulgarian, Czech, Danish, Dutch, English, Estonian, Finnish, French,
German, Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish,
Portuguese, Romanian, Slovak, Slovenian, Spanish, Swedish and Korean languages,
each text being equally authentic.

JOINT INTERPRETATIVE DECLARATION

CONCERNING ARTICLES 45 AND 46

The Parties are democracies. They wish to
work together to promote their shared values to the world. Their Agreement is a
signal of their shared determination to promote democracy, human rights,
non-proliferation, and counter-terrorism throughout the world. The
implementation of this Agreement between the Parties sharing the same values
shall therefore be based on the principles of dialogue, mutual respect, equal
partnership, multilateralism, consensus, and respect for
international law.

The Parties agree that for the purpose of
the correct interpretation and practical application of this Agreement, the
term ‘appropriate measures’ in Article 45(3) means measures proportionate to
the failure to implement obligations under this Agreement. Measures may be
taken with regard to this Agreement or to a specific agreement falling under
the common institutional framework. In the selection of measures priority must
be given to those which least disrupt the functioning of the agreements, taking
account of possible use of domestic remedies
where available.

The Parties agree that for the purpose of
the correct interpretation and practical application of this Agreement, the
term ‘cases of special urgency’ in Article 45(4) means a case of a material
breach of this Agreement by one of the Parties. A material breach consists in
either repudiation of this Agreement not sanctioned by the general rules of
international law or a particularly serious and substantial violation of an essential element of the Agreement. The Parties
shall assess a possible material breach of Article 4(2), taking account of
the official position, where available, of the relevant international agencies.

In respect of Article 46, where measures have been
taken with respect to a specific agreement falling under the common
institutional framework, any relevant dispute settlement procedures of the
specific agreement shall apply with regard to the procedure of implementing the
decision of the arbitration panel in cases where the arbitrators decide that
the measure was not justified or proportionate.

_________________

UNILATERAL
DECLARATION

BY THE EUROPEAN UNION

ON ARTICLE 12

The plenipotentiaries of the Member States
and the plenipotentiary of the Republic of Korea take note of the following
Unilateral Declaration:

The European Union declares that the Member
States are committed under Article 12 only to the extent that they have
subscribed to these principles of good governance in the tax area at the level
of the European Union.

_________________