For the purposes of this entry, hag-won (private teaching institutes for adults) are facilities that provide tutoring services on subjects related to lifelong or vocational education to 10 people or more for a period of 30 days or longer.
A foreign national hired by a private teaching institute for adults as a lecturer must possess at least a bachelor’s degree or the equivalent and reside in Korea.
35. Sector: Education Services – Vocational Competency Development Training Services
Obligations Concerned: Local Presence (Article 9.5)
Measures: Workers’ Vocational Competency Development Act (Law No. 11690, 23 March 2013), Articles 28, 32, and 36
Enforcement Decree of the Workers’ Vocational Competency Development Act (Presidential Decree No. 24628, 21 June 2013), Articles 24 and 26
Enforcement Regulation of theWorkers’ Vocational Competency Development Act (Ordinance of the Ministry of Employment and Labor No. 57, 8 June 2012), Articles 12, 14, and 18
Description: Cross-Border Trade in Services
A person that supplies vocational competency development training services must establish an office in Korea.
36. Sector: Veterinary Services
Obligations Concerned: Market Access (Article 9.4)
Local Presence (Article 9.5)
Measures: Veterinary Affairs Act (Law No. 11354, 22 February 2012), Articles 17, 22-2, 22-4, and 22-5
Civil Act (Law No. 11728, 5 April 2013), Article 32
Description: Cross-Border Trade in Services
Only a person that is a licensed soo-eui-sa (veterinarian) that has established an office in Korea, dong-mul-jin-ryo-bub-in (animal hospital legal entity) or bee-young-ri-bub-in (non-profit legal entity) may engage in veterinary or aquatic animal disease inspection services.
37. Sector: Environmental Services – Waste Water Treatment Services, Waste Management Services, Air Pollution Treatment Services, Environmental Preventive Facilities Business, Environmental Impact Assessment, Soil Remediation and Groundwater Purification Services, and Toxic Chemical Control Services
Obligations Concerned: Local Presence (Article 9.5)
Measures: Water Quality and Ecosystem Conservation Act (Law No. 11915, 16 July 2013), Article 62
Support for Environmental Technology and Environmental Industry Act (Law No. 11713, 23 March 2013), Article 15
Soil Environment Conservation Act (Law No. 11464, 1 June 2012), Article 23-7
Groundwater Act (Law No. 11803, 22 May 2013), Article 29-2
Clean Air Conservation Act (Law No. 11750, 5 April 2013), Article 68
Environmental Impact Assessment Act (Law No. 11690, 23 March 2013), Article 54
Toxic Chemicals Control Act (Law No. 11690, 23 March 2013), Article 20
Wastes Control Act (Law No. 11965, 30 July 2013), Article 25
Enforcement Decree of the Wastes Control Act (Presidential Decree No. 24543, 28 May 2013), Article 8
Description: Cross-Border Trade in Services
A person that supplies the environmental services listed in the Sector heading must establish an office in Korea.
38. Sector: Performance Services
Obligations Concerned: National Treatment (Article 9.2)
Measures: Public Performance Act (Law No. 11048, 15 September 2011), Articles 6 and 7
Enforcement Decree of the Public Performance Act (Presidential Decree No. 23759, 1 May 2012), Articles 4 and 6
Enforcement Regulations of the Public Performance Act (Ordinance of the Ministry of Culture, Sports and Tourism No. 94, 25 November 2011), Article 4
Enforcement Regulations of the Immigration Control Act (Ordinance of the Ministry of Justice No. 799, 10 October 2013), Table 5
Description: Cross-Border Trade in Services
A foreign person who intends to engage in a public performance in Korea, or a person who intends to invite a foreign person to engage in a public performance in Korea must obtain a recommendation from the Korea Media Rating Board.
39. Sector: News Agency (News-tong-sin-sa) Services
Obligations Concerned: National Treatment (Articles 8.3 and 9.2)
Senior Management and Boards of Directors (Article 8.7)
Market Access (Article 9.4)
Local Presence (Article 9.5)
Measures: Act on Promotion of News Communications (Law No. 11690, 23 March 2013), Articles 7, 8, 9, 9-5, 16, and 28
Enforcement Decree of the Act on Promotion of News Communications (Presidential Decree No. 24183, 20 November 2012), Articles 4 and 10
Radio Waves Act (Law No. 11712, 23 March 2013), Article 20
Description: Cross-Border Trade in Services and Investment
A news-tong-sin-sa (news agency) organised under foreign law may supply news-tong-sin (news communications) in Korea only under a contract with a news agency organised under Korean law, which has a radio station license, such as Yonhap News.
The following persons may not supply news agency services in Korea:
(a) a foreign government;
(b) a foreign person;
(c) an enterprise organised under Korean law whose dae-pyo-ja (representative: for example, a chief executive officer, president, or similar principal senior officer) is not a Korean national or is a person not domiciled in Korea; or
(d) an enterprise organised under Korean law in which a foreign person holds 25 percent or more equity interest.
The following persons may not serve as a dae-pyo-ja (representative: for example, a chief executive officer, president, or similar principal senior officer) or editor of a news agency, or serve as im-won (a member of the board of directors) of Yonhap News or the News Agency Promotion Committee:
(a) a foreign national; or
(b) a Korean national not domiciled in Korea.
A foreign news agency may establish a branch or office in Korea for the sole purpose of collecting news. For greater certainty, such branch or office may not distribute news-tong-sin (news communications) in Korea.
The following persons may not obtain a radio station license:
(a) a foreign national;
(b) a foreign government or its representative; or
(c) an enterprise organised under foreign law.
For greater certainty, this entry is without prejudice to the scope and application of Article 22.6 (Cultural Industries).
40. Sector: Manufacturing of Biological Products
Obligations Concerned: Performance Requirements (Article 8.8)
Measures: Pharmaceutical Affairs Act (Law No. 12074, 13 August 2013), Article 42
Regulations on Safety of Pharmaceuticals, Etc. (Ordinance of the Prime Minister No. 1022, 23 March 2013), Article 11
Description: Investment
A person who manufactures blood products must procure raw blood materials from a blood management body in Korea.
41. Sector: Distribution Services – Agriculture and Livestock
Obligations Concerned: National Treatment (Articles 8.3 and 9.2)
Market Access (Article 9.4)
Measures: Grain Management Act (Law No. 11641, 22 March 2013), Article 12
Livestock Industry Act (Law No. 11690, 23 March 2013), Articles 30 and 34
Seed Industry Act (Law No. 11704, 23 March 2013), Article 142
Feed Management Act (Law No. 11690, 23 March 2013), Article 6
Ginseng Industry Act (Law No. 11690, 23 March 2013), Article 20
Foreign Investment Promotion Act (Law No. 11535, 11 December 2012), Article 4
Enforcement Decree of the Foreign Investment Promotion Act (Presidential Decree No. 24638, 28 June 2013), Article 5
Regulations on Foreign Investment and Introduction of Technology (Notice of the Ministry of Trade, Industry and Energy,No. 2013-37, 30 May 2013), Attached table 2
Act on Distribution and Price Stabilization of Agricultural and Fishery Products (Law No. 12059, 13 August 2013), Articles 15, 17, and 43
Notice on TRQ Products (Ministry of Agriculture, Food and Rural Affairs Notice No. 2013-29, 16 May 2013), Articles 14 and 20-2
Description: Cross-Border Trade in Services and Investment
A foreign person shall not hold 50 percent or more of the shares or equity interest of an enterprise engaged in yook-ryu (meat) wholesale.
Only the Livestock Cooperatives under the Agriculture Cooperative Act may establish and manage a ga-chook-sijang (livestock market) in Korea.
Only a local government may establish a gong-yeong-domae-sijang (public wholesale market).
Only producers’ organisations or public interest corporations prescribed in the Enforcement Decree of the Act on Distribution and Price Stabilization of Agricultural and Fishery Products may establish a gong-pan-jang (joint wholesale market).
For greater certainty, Articles 9.2 (National Treatment) and 9.4 (Market Access) do not prevent Korea from adopting or maintaining any measure with respect to the administration of the WTO Tariff-Rate-Quota.
42. Sector: Energy Industry – Electric Power Generation Other Than Nuclear Power Generation; Electric Power Transmission, Distribution and Sales
Obligations Concerned: National Treatment (Article 8.3) (2)
Measures: Financial Investment Services and Capital Markets Act (Law No. 11845, 28 May 2013), Article 168
Enforcement Decree of the Financial Investment Services and Capital Markets Act (Presidential Decree No. 24697, 27 August 2013), Article 187
Foreign Investment Promotion Act (Law No. 11535, 11 December 2012), Articles 4 and 5
Enforcement Decreeof the Foreign Investment Promotion Act (Presidential Decree No. 24638, 28 June 2013), Article 5
Consolidated Public Notice for Foreign Investment (Public Notice of the Ministry of Trade, Industry and Energy No. 2013-102, 27 May 2013), Attached table
Designation of Public Corporation (Notice of the Ministry of Finance and Economy, No. 2000-17, 28 September 2000)
Financial Investment Service Regulations (Financial Services Commission Notice No. 2013-40, 4 December 2013), Sec. 6-2
Description: Investment
The aggregate foreign share of Korea Electric Power Corporation’s (KEPCO) issued stocks shall not exceed 40 percent. A foreign person may not become the largest shareholder of KEPCO.
The aggregate foreign share of power generating facilities, including cogeneration facilities of heat and power (GHP) for the district heating system (DHS), shall not exceed 30 percent of the total facilities in the territory of Korea.
The aggregate foreign share of electric power transmission, distribution and sales businesses should be less than 50 percent. A foreign person shall not be the largest shareholder.
43. Sector: Energy Industry – Gas Industry
Obligations Concerned: National Treatment (Article 8.3) (2)
Measures: Act on the Improvement of Managerial Structure and Privatization of Public Enterprises (Law No. 11845, 28 May 2013), Article 19
Financial Investment Services and Capital Markets Act (Law No. 11845, 28 May 2013), Article 168
Foreign Investment Promotion Act (Law No. 11535, 11 December 2012), Articles 4 and 5
Articles of Incorporation of the Korea Gas Corporation (9 August 2013), Article 11
Description: Investment
Foreign persons, in the aggregate, shall not own more than 30 percent of the equity of Korea Gas Corporation KOGAS).
Annex II. Reservations for Future Measures
Schedule of Canada. Explanatory Notes
1. Canada's Schedule to this Annex sets out, pursuant to Articles 8.9.2 and 9.6.2, the specific sectors, sub-sectors, or activities for which Canada may maintain existing, or adopt new or more restrictive, measures that do not conform with obligations imposed by:
(a) Article 8.3 (National Treatment) or 9.2 (National Treatment);
(b) Article 8.4 (Most-Favoured-Nation Treatment) or 9.3 (Most-Favoured-Nation Treatment);
(c) Article 8.7 (Senior Management and Boards of Directors);
(d) Article 8.8 (Performance Requirements);
(e) Article 9.4 (Market Access); or
(f) Article 9.5 (Local Presence).
2. Each reservation sets out the following elements:
(a) Sector refers to the general sector in which the reservation is taken;
(b) Sub-sector refers, where applicable, to the specific sector in which the reservation is taken;
(c) Industry Classification refers, where applicable, to the activity covered by the reservation according to domestic industry classification codes;
(d) Type of Reservation specifies the obligation referred to in paragraph 1 for which a reservation is taken;
(e) Description sets out the scope of the sector, sub-sector, or activities covered by the reservation; and
(f) Existing Measures identifies, for transparency purposes, existing measures that apply to the sector, sub-sector or activities covered by the reservation.
3. In accordance with Articles 8.9.2 and 9.6.2, the Articles of this Agreement specified in the Type of Reservation element of a reservation do not apply to the sectors, sub-sectors, and activities identified in the Description element of that reservation.
4. In the interpretation of a reservation, all elements of the reservation, with the exception of Industry Classification, shall be considered. The Description element shall prevail over all other elements.
5. For the purposes of this Annex:
CPC means Central Product Classification (CPC) numbers as set out in Statistical Office of the United Nations, Statistical Papers, Series M, No. 77, Provisional Central Product Classification, 1991; and
SIC means Standard Industrial Classification (SIC) numbers as set out in Statistics Canada, Standard Industrial Classification, fourth edition, 1980.
6. For greater certainty, National Treatment (Article 9.2) and Local Presence (Article 9.5) are separate disciplines and a measure that is only inconsistent with Local Presence (Article 9.5) need not be reserved against National Treatment (Article 9.2).
Annex II. Schedule of Canada
Sector: Aboriginal Affairs
Sub-sector:
Industry Classification:
Type of Reservation: National Treatment (Articles 8.3 and 9.2)
Most-Favoured-Nation Treatment (Articles 8.4 and 9.3)
Local Presence (Article 9.5)
Senior Management and Boards of Directors (Article 8.7)
Performance Requirements (Article 8.8)
Description: Cross-Border Trade in Services and Investment
Canada reserves the right to adopt or maintain a measure denying investors of Korea and their investments, or service providers of Korea, rights or preferences provided to aboriginal peoples.
Existing Measure: Constitution Act, 1982, being Schedule B of the Canada Act 1982 (U.K.), 1982, c. 11
Sector: All Sectors
Sub-sector:
Industry Classification:
Type of Reservation: National Treatment (Article 8.3)
Description: Investment
Canada reserves the right to adopt or maintain a measure relating to residency requirements for the ownership of oceanfront land by investors of Korea, or their investments.
Existing Measures:
Sector: Fisheries