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 Rela-
tions, and in addition to the Committee on Ways and Means, for a period
to be subsequently determined by the Speaker, in each case for consider-
ation 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 auto-
motive manufacturers until 1990, and not completely
open to all automotive manufacturers until 1999;
•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 Govern-
ment of the Republic of Korea has not substantially in-
creased 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 Govern-
ment 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 Govern-
ment of the Republic of Korea has not taken the nec-
•HCON 144 IH
essary steps to implement the MOU fully and effectively,
as evidenced by the extraordinarily low foreign motor ve-
hicle 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 vehi-
cles and automotive parts exported to Korea last year, re-
sulting 
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 dif-
ficulty in selling United States made automotive compo-
nents, 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 im-
ported and only 1,268 of those vehicles (or 0.12 percent)
were made in the United States;
Whereas one Korean auto maker maintains monopolistic con-
trol of over 75 percent of Korea’s domestic market; and
Whereas some Korean organizations and institutions continue
to support anticompetitive activities that perpetuate en-
trenched commercial interests at the expense of free
trade, Korean consumers, and the overall Korean econ-
omy: Now, therefore, be it
Resolved by the House of Representatives (the Senate
concurring), That Congress—
(1) believes strongly that an economically stable
Republic of Korea is in the best overall foreign pol-
icy and economic interests of the United States;
•HCON 144 IH
(2) notes that past practices, such as protection
from international competition, preferential access to
credit, low interest loans, and the policy of providing
assistance to cabal in general, and the automotive
sector specifically, contributed to the 1997–1998
Asian financial crisis, threatened the economic sta-
bility of the Republic of Korea and undermined the
relationship between the United States and the Re-
public of Korea;
(3) believes that economic policies and practices
effectively limiting United States manufacturers’ ac-
cess to the Korean automotive sector are incon-
sistent with the general trend toward a market-ori-
ented approach, and that the relationship between
the United States and the Republic of Korea has
been, and will continue to be, significantly harmed
by unfair treatment of imports of United States
motor vehicles;
(4) calls on the Republic of Korea to imme-
diately end the practices that have led to the dis-
parity in market access, as well as to take proactive
steps to repair the damage done by past policies and
practices;
(5) calls on the Republic of Korea to meet the
letter and spirit of the commitments contained in
•HCON 144 IH
the 1998 Memorandum of Understanding it signed
with the United States; and
(6) calls on the United States Trade Represent-
ative, the Secretary of Commerce, and the Secretary
of State to monitor and report to Congress on the
steps that have been taken to end the disparity in
market access for imported motor vehicles in the Re-
public of Korea.
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