IV

107TH CONGRESS

1ST SESSION H. CON. RES. 144

Expressing the sense of Congress regarding the Republic of Korea’s ongoing

practice of limiting United States motor vehicles access to its domestic

market.

IN THE HOUSE OF REPRESENTATIVES

MAY 24, 2001

Mr. KILDEE (for himself and Mr. UPTON) submitted the following concurrent

resolution; which was referred to the Committee on International Relations, and in addition to the Committee on Ways and Means, for a period

to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee

concerned

CONCURRENT RESOLUTION

Expressing the sense of Congress regarding the Republic

of Korea’s ongoing practice of limiting United States

motor vehicles access to its domestic market.

Whereas the Government of the Republic of Korea over many

years has provided aid to the Korean automotive industry

enabling that industry to develop into the fourth largest

automotive industry in the world, after the United States,

Japan, and the European Union;

Whereas the domestic automotive market of the Republic of

Korea was completely closed to all international automotive manufacturers until 1990, and not completely

open to all automotive manufacturers until 1999;
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•HCON 144 IH

Whereas in response to complaints by the United States that

the Government of the Republic of Korea was practicing

unfair trade in the automotive sector, and that there was

continuing anti-import bias and increasing disparity in

market access for foreign motor vehicles, the Government

of Korea signed two Memorandums of Understanding

(MOU) with the United States in 1995 and 1998 in an

effort to help increase foreign motor vehicle access to the

Korean automotive market;

Whereas in the 1998 MOU, the Government of the Republic

of Korea pledged specifically to simplify its tax regime in

a manner that enhanced market access for foreign motor

vehicles, improve the perception of foreign motor vehicles

in Korea, simplify and streamline Korea’s type-approval

system procedures for foreign motor vehicles and other

standards issues, and establish a mortgage system for

motor vehicles;

Whereas 3 years after signing the 1998 MOU, the Government of the Republic of Korea has not substantially increased market access for foreign motor vehicles and its

motor vehicle market still does not operate according to

market principles, as evidenced by the fact that the share

of the market held by foreign motor vehicles was lower

in 2000 than it was in 1998, and remains the lowest of

any industrialized nation;

Whereas 3 years after signing the 1998 MOU, the Government of the Republic of Korea has not made sufficient

advances in simplifying its tax regime for motor vehicles

or improving the perception of foreign motor vehicles in

Korea;

Whereas 3 years after signing the 1998 MOU, the Government of the Republic of Korea has not taken the nec-
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•HCON 144 IH

essary steps to implement the MOU fully and effectively,

as evidenced by the extraordinarily low foreign motor vehicle presence in Korea;

Whereas Korea is a major exporter of motor vehicles and

automotive parts to the United States, reaching over a

total value of $5,910,000,000 last year, compared to a

total value of $480,000,000 in United States motor vehicles and automotive parts exported to Korea last year, resulting in a total automotive trade deficit of

$5,300,000,000;

Whereas the extremely low level of United States vehicle sales

in the Republic of Korea means that there is great difficulty in selling United States made automotive components, systems, and parts in Korea;

Whereas 1,057,620 motor vehicles were sold in the Republic

of Korea in 2000, only 4,414 (or 0.42 percent) were imported and only 1,268 of those vehicles (or 0.12 percent)

were made in the United States;

Whereas one Korean auto maker maintains monopolistic control of over 75 percent of Korea’s domestic market; and

Whereas some Korean organizations and institutions continue

to support anticompetitive activities that perpetuate entrenched commercial interests at the expense of free

trade, Korean consumers, and the overall Korean economy: Now, therefore, be it

1 Resolved by the House of Representatives (the Senate

2 concurring), That Congress—

3 (1) believes strongly that an economically stable

4 Republic of Korea is in the best overall foreign pol5 icy and economic interests of the United States;
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1 (2) notes that past practices, such as protection

2 from international competition, preferential access to

3 credit, low interest loans, and the policy of providing

4 assistance to cabal in general, and the automotive

5 sector specifically, contributed to the 1997–1998

6 Asian financial crisis, threatened the economic sta7 bility of the Republic of Korea and undermined the

8 relationship between the United States and the Re9 public of Korea;

10 (3) believes that economic policies and practices

11 effectively limiting United States manufacturers’ ac12 cess to the Korean automotive sector are incon13 sistent with the general trend toward a market-ori14 ented approach, and that the relationship between

15 the United States and the Republic of Korea has

16 been, and will continue to be, significantly harmed

17 by unfair treatment of imports of United States

18 motor vehicles;

19 (4) calls on the Republic of Korea to imme20 diately end the practices that have led to the dis21 parity in market access, as well as to take proactive

22 steps to repair the damage done by past policies and

23 practices;

24 (5) calls on the Republic of Korea to meet the

25 letter and spirit of the commitments contained in
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1 the 1998 Memorandum of Understanding it signed

2 with the United States; and

3 (6) calls on the United States Trade Represent4 ative, the Secretary of Commerce, and the Secretary

5 of State to monitor and report to Congress on the

6 steps that have been taken to end the disparity in

7 market access for imported motor vehicles in the Re8 public of Korea.

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