5. 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 Korea
1. Sector:
All Sectors
Obligations Concerned:
National Treatment (Article 8.3)
Performance Requirements (Article 8.8)
Description:
Investment
1. Korea reserves the right to adopt or maintain, with respect to the establishment or acquisition of an investment, a measure that is necessary for the maintenance of public order pursuant to Article 4 of the Foreign Investment Promotion Act (2012) and Article 5 of the Enforcement Decree of the Foreign Investment Promotion Act (2012), provided that the measure is applied in accordance with the procedural requirements set out in the Foreign Investment Promotion Act (2012), Enforcement Decree of the Foreign Investment Promotion Act (2012), and other applicable law.
2. Without prejudice to any claim that may be submitted to arbitration pursuant to Articles 8.18 and 8.19, a claimant may submit to arbitration under Section B of Chapter Eight (Investment) a claim that:
(a) Korea has adopted or maintained a measure for which it has provided notice pursuant to paragraph 1; and
(b) the claimant or, as the case may be, an enterprise of Korea that is a juridical person that the claimant owns or controls directly or indirectly, has incurred loss or damage by reason of, or arising out of, the measure.
In the event of such a claim, Section B of Chapter Eight (Investment) shall apply, mutatis mutandis, and all references in Section B of Chapter Eight (Investment) to a breach, or to an alleged breach, of an obligation under Section A of Chapter Eight (Investment) shall be understood to refer to the measure, which would constitute a breach of an obligation under Section A of Chapter Eight (Investment) but for this entry. However, no award may be made in favour of the claimant, if Korea establishes to the satisfaction of the tribunal that the measure satisfies all the conditions listed in paragraph 1.
3. This entry does not apply to the extent that a measure referred to in paragraph 1 is subject to Chapter Ten (Financial Services).
2. Sector:
All Sectors
Obligations Concerned:
National Treatment (Articles 8.3 and 9.2)
Senior Management and Boards of Directors (Article 8.7)
Performance Requirements (Article 8.8)
Local Presence (Article 9.5)
Description:
Investment
Korea reserves the right to adopt or maintain any measure with respect to the transfer or disposition of equity interests or assets held by state enterprises or governmental authorities.
Such a measure shall be implemented pursuant to of Chapter Nineteen (Transparency).
Notwithstanding Article 10.9.3, this entry is not treated as a non-conforming measure not subject to Article 10.2 (National Treatment).
This entry does not apply to former private enterprises that are owned by the state as a result of corporate reorganisation processes.
For the purposes of this entry:
A state enterprise includes any enterprise created for the sole purpose of selling or disposing of equity interests or assets of state enterprise or governmental authorities.
Cross-Border Trade in Services and Investment
Without prejudice to Korea’s Schedules to Annex I and Annex II, Korea reserves the right to adopt or maintain any measure with respect to the transfer to the private sector of all or any portion of services provided in the exercise of governmental authority.
3. Sector:
Acquisition of Land
Obligations Concerned:
National Treatment (Article 8.3)
Description:
Investment
Korea reserves the right to adopt or maintain any measure with respect to the acquisition of land by foreign persons, except that a juridical person shall continue to be permitted to acquire land where the juridical person:
(a) is not deemed foreign pursuant to Article 2 of the Foreigner’s Land Acquisition Act; and
(b) is deemed foreign under the Foreigner’s Land Acquisition Act or is a branch of a foreign juridical person subject to approval or notification in accordance with the Foreigner’s Land Acquisition Act, if the land is to be used for any of the following legitimate business purposes:
(i) land used for ordinary business activities;
(ii) land used for housing for senior management; and
(iii) land used for fulfilling land-holding requirements stipulated by pertinent laws.
Korea reserves the right to adopt or maintain any measure with respect to the acquisition of farmland by foreign persons.
4. Sector:
Firearms, Swords, Explosives, and Similar Items
Obligations Concerned:
National Treatment (Articles 8.3 and 9.2)
Senior Management and Boards of Directors (Article 8.7)
Performance Requirements (Article 8.8)
Local Presence (Article 9.5)
Description:
Cross-Border Trade in Services and Investment
Korea reserves the right to adopt or maintain any measure with respect to the firearms, swords, explosives, gas sprays, electric shocks, and crossbows sector, including the manufacture, use, sale, storage, transport, import, export, and possession of firearms, swords, explosives, gas sprays, electric shocks, and crossbows.
5. Sector:
Disadvantaged Groups
Obligations Concerned:
National Treatment (Articles 8.3 and 9.2)
Most-Favoured-Nation Treatment (Articles 8.4 and 9.3)
Senior Management and Boards of Directors (Article 8.7)
Performance Requirements (Article 8.8)
Local Presence (Article 9.5)
Description:
Cross-Border Trade in Services and Investment
Korea reserves the right to adopt or maintain any measure that accords rights or preferences to socially or economically disadvantaged groups, such as the disabled, persons who have rendered distinguished services to the state, and ethnic minorities.
6. Sector:
State-Owned Electronic Information System
Obligations Concerned:
National Treatment (Articles 8.3 and 9.2)
Senior Management and Boards of Directors (Article 8.7)
Performance Requirements (Article 8.8)
Local Presence (Article 9.5)
Description:
Cross-Border Trade in Services and Investment
Korea reserves the right to adopt or maintain any measure affecting the administration and operation of any state owned electronic information system that contains proprietary government information or information gathered pursuant to the regulatory functions and powers of the government.
This entry does not apply to payments and settlement systems related to financial services.
7. Sector:
Social Services
Obligations Concerned:
National Treatment (Articles 8.3 and 9.2)
Most-Favoured-Nation Treatment (Articles 8.4 and 9.3)
Senior Management and Boards of Directors (Article 8.7)
Performance Requirements (Article 8.8)
Local Presence (Article 9.5)
Description:
Cross-Border Trade in Services and Investment
Korea reserves the right to adopt or maintain any measure with respect to the provision of law enforcement and correctional services, and the following services to the extent that they are social services established or maintained for public purposes: income security or insurance, social security or insurance, social welfare, public training, health, and child care.
8. Sector:
All Sectors
Obligations Concerned:
Market Access (Article 9.4)
Description:
Cross-Border Trade in Services
Korea reserves the right to adopt or maintain any measure that is not inconsistent with Korea’s obligations pursuant to Article XVI of GATS as set out in Korea’s Schedule of Specific Commitments under the GATS (GATS/SC/48, GATS/SC/48/Suppl.1, GATS/SC/48/Suppl.1/Rev.1, GATS/SC/48/Suppl.2, GATS/SC/48/Suppl.3, and GATS/SC/48/Suppl.3/Rev.1).
For the purposes of this entry only, Korea’s Schedule is subject to the following modifications:
(a) for any sector and subsector with regard to which Korea’s Annex I contains an entry (other than an entry with regard to “All Sectors”) that does not list Market Access as one in the Obligations Concerned element, “None” is inscribed in the Market Access column for modes 1, 2, and 3, and “Unbound except as indicated in the Horizontal commitments section” is inscribed for mode 4;
(b) for any sector and subsector with regard to which Korea’s Annex I contains an entry (other than an entry with regard to “All Sectors”) that lists a limitation to the Market Access obligation, that limitation is inscribed in the Market Access column with regard to the appropriate mode of supply; and
(c) for any sector and subsector listed in Appendix II A, Korea’s Schedule is modified as indicated in the Appendix II-A.
These modifications does not affect any limitation relating to sub-paragraph (f) of paragraph 2 of Article XVI of GATS inscribed in the Market Access column of Korea’s Schedule.
For greater certainty, an entry of “None” in the Market Access column of Korea’s Schedule is not construed to alter the application of Article 9.5 (Local Presence) as modified by Article 9.6 (Non-Conforming Measures).
9. Sector:
All Sectors
Obligations Concerned:
Most-Favoured-Nation Treatment (Articles 8.4 and 9.3)
Description:
Cross-Border Trade in Services and Investment
Korea reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral international agreement in force or signed prior to the date of entry into force of this Agreement.
Korea reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral international agreement in force or signed after the date of entry into force of this Agreement involving:
(a) aviation;
(b) fisheries;
(c) maritime matters, including salvage; or
(d) railroad transportation.
10. Sector:
Environmental Services – Treatment and Supply Services for Potable Water; Collection and Treatment Services for Municipal Sewage; Collection, Transportation, and Disposal Services for Municipal Refuse; Sanitation and Similar Services; Nature and Landscape Protection Services (Except for Environmental Impact Assessment Services)
Obligations Concerned:
National Treatment (Articles 8.3 and 9.2)
Performance Requirements (Article 8.8)
Local Presence (Article 9.5)
Description:
Cross-Border Trade in Services and Investment
Korea reserves the right to adopt or maintain any measure with respect to the following environmental services: treatment and supply of potable water; collection and treatment of municipal sewage; collection, transportation, and disposal of municipal refuse; sanitation and similar services; and nature and landscape protection services (except for environmental impact assessment services).
This entry does not apply to the supply of the aforementioned services pursuant to a contract between private parties, to the extent private supply of such services is permitted under relevant laws and regulations.
11. Sector:
Atomic Energy – Nuclear Power Generation; Manufacturing and Supply of Nuclear Fuel; Nuclear Materials; Radioactive Waste Treatment and Disposal (including treatment and disposal of spent and irradiated nuclear fuel); Radioisotope and Radiation Generation Facilities; Monitoring Services for Radiation; Services Related to Nuclear Energy; Planning, Maintenance, and Repair Services
Obligations Concerned:
National Treatment (Articles 8.3 and 9.2)
Senior Management and Boards of Directors (Article 8.7)
Performance Requirements (Article 8.8)
Local Presence (Article 9.5)
Description:
Cross-Border Trade in Services and Investment
Korea reserves the right to adopt or maintain any measure with respect to the atomic energy industry.
12. Sector:
Energy Services – Electric Power Generation Other Than Nuclear Power Generation; Electric Power Transmission, Distribution, and Sales; Electricity Business
Obligations Concerned:
National Treatment (Articles 8.3 and 9.2)
Senior Management and Boards of Directors (Article 8.7)
Performance Requirements (Article 8.8)
Local Presence (Article 9.5)
Description:
Cross-Border Trade in Services and Investment
Korea reserves the right to adopt or maintain any measure with respect to electric power generation, transmission, distribution, and sales.
Any such measure shall not decrease the level of foreign ownership permitted in the electric power industry as provided by the 42nd entry in Korea’s Schedule to Annex I.
Notwithstanding this entry, Korea shall not adopt or maintain any measure inconsistent with Article 8.8.1(f).
13. Sector:
Energy Services – Gas industry
Obligations Concerned:
National Treatment (Articles 8.3 and 9.2)
Senior Management and Boards of Directors (Article 8.7)