(a) transportation, sales, and preservation (cold storage) of food and food additives;
(b) food supply services;
(c) food inspection services; or
(d) narcotic drug wholesale and retail distribution services.
The Minister of Health and Welfare controls the supply and demand of the wholesale distribution of imported designated han-yak-jae (Asian medicinal herbs).
Certain liquor-selling bars and the wholesale and retail distribution of narcotics require authorization by the relevant authority.
Sector: Retail Distribution of Pharmaceuticals
Obligations Concerned: Market Access (Article 12.4) Local Presence (Article 12.5)
Measures: Pharmaceutical Affairs Act (Law No. 8035, October 4, 2006), Articles 16 and 19
Description: Cross-Border Trade in Services
A person that supplies pharmaceutical product retail distribution services (including distribution of han-yak-jae (Asian medicinal herbs)) must establish a pharmacy in Korea.
That person may not establish more than one pharmacy nor establish in the form of a corporation.
Sector: Transportation Services - Rail Transportation and Incidental Services
Obligations Concerned: Market Access (Article 12.4)
Measures: Rail Transport Service Business Act (Law No. 7303, December 31, 2004), Articles 5, 6, and 12
Korea Railroad Corporation Act (Law No. 7052, December 31, 2003), Article 9
Rail Construction Act (Law No. 8251, January 19, 2007), Article 8
Framework Act on Rail Industry Development (Law No. 8135, December 30, 2006), Articles 3, 20, 26, and 38
Korea Rail Network Authority Act (Law No. 8257, January 19, 2007), Article 7
Description: Cross-Border Trade in Services
Only the Korea Railroad Corporation may supply railroad transportation services on railroad routes constructed on or before June 30, 2005.
Only juridical persons that have obtained authorization from the Minister of Construction and Transportation may supply railroad transportation services on railroad routes constructed on or after July 1, 2005. Such authorization is subject to an economic needs test.
Only the central or local level of government, or the Korea Rail Network Authority may supply rail construction services and maintain and repair government-owned rail facilities (including high-speed rail). However, juridical persons that meet the criteria in the Private Investment in Social Infrastructure Act may supply rail construction services.
Sector: Transportation Services - Passenger Road Transportation Services (not including Taxis and Scheduled Passenger Road Transportation Services)
Obligations Concerned: Local Presence (Article 12.5)
Measures: Passenger Transport Service Act (Law No. 8095, December 26, 2006), Article 5
Enforcement Decree of the Passenger Transport Service Act (Presidential Decree No. 19715, October 26, 2006), Article 3
Enforcement Regulations of the Passenger Transport Service Act (Ordinance of the Ministry of Construction and Transportation No. 530, August 7, 2006), Article 9
Cableway and Tramway Transport Service Act (Law No. 7714, December 7, 2005), Article 4
Enforcement Regulations of the Cableway and Tramway Transport Service Act (Ordinance of the Ministry of Construction and Transportation No. 520, June 14, 2006), Article 3
Description: Cross-Border Trade in Services
A person that supplies passenger road transportation services, not including taxis and scheduled passenger road transportation services, must establish an office in the dang- hae--ji-yeok (relevant geographic area) in Korea.
Sector: Transportation Services - International Maritime Cargo Transportation and Maritime Auxiliary Services
Obligations Concerned: National Treatment (Article 12.2) Market Access (Article 12.4) Local Presence (Article 12.5)
Measures: Maritime Transportation Act (Law No. 8381, April 11, 2007), Articles 24 and 33
Enforcement Regulations of the Maritime Transportation Act (Ordinance of the Ministry of Maritime Affairs and Fisheries No. 340, June 26, 2006), Articles 17, 19, 29, and 30
Pilotage Act (Law No. 8379, April 11, 2007), Article 6
Ship Investment Company Act (Law No. 8223, January 3, 2007), Articles 3 and 31
Description: Cross-Border Trade in Services
A person that supplies international maritime cargo transportation and shipping brokerage services must be organized as a Chusik Hoesa (stock company) in Korea. A ship investment company must also be organized as a Chusik Hoesa (stock company) in Korea.
Only a Korean national may supply maritime pilotage services.
Sector: Transportation Services - Air Transportation Services
Obligations Concerned: National Treatment (Article 11.3) Senior Management and Boards of Directors (Article 11.9)
Measures: Aviation Act (Law No. 8128, December 28, 2006), Articles 3, 6, 112, 113, 114 and 132
Enforcement Regulations of the Aviation Act (Ordinance of the Ministry of Construction and Transportation No. 532, August 18, 2006), Articles 278, 278-2, 298 and 299
Description: Investment
The following persons may not supply scheduled or non- scheduled domestic air transportation services or supply international air transportation services as Korean air carriers:
(a) a foreign national;
(b) a foreign government or a foreign gong- gong-dan-che (organization for public purposes);
(c) an enterprise organized under foreign law;
(d) an enterprise in which any of the persons referred to in subparagraphs (a) through (c) owns 50 percent or more of the equity interest, or has control; or
(e) an enterprise organized under Korean law whose dae-pyo-ja (for example, a chief executive officer, president, or similar principal senior officer) is a foreign national or half or more of whose senior management are foreign nationals.
A person that owns an aircraft or is authorized to operate a chartered aircraft must register the aircraft with the Minister of Construction and Transportation. The persons listed in subparagraphs (a) through (e) are not allowed to register an aircraft.
Sector: Transportation Services - Specialty Air Services
Obligations Concerned: National Treatment (Articles 11.3 and 12.2) Senior Management and Boards of Directors (Article 11.9) Local Presence (Article 12.5)
Measures: Aviation Act (Law No. 8128, December 28, 2006), Articles 3, 6, and 134
Enforcement Regulations of the Aviation Act (Ordinance of the Ministry of Construction and Transportation No. 532, August 18, 2006), Articles 298 and 299-2
Description: Cross-Border Trade in Services and Investment
A person that supplies aircraft-sa-yong (use) services or such non-scheduled air transportation services as glider towing, parachute jumping, aerial construction, heli-logging, and aerial sightseeing must register its self-owned or chartered aircraft with the Minister of Construction and Transportation and establish an office in Korea.
The following persons may not register an aircraft:
(a) a foreign national;
(b) a foreign government or a foreign gong- gong-dan-che (organization for public purposes);
(c) an enterprise organized under foreign law;
(d) an enterprise in which any of those referred to in subparagraphs (a) through (c) owns 50 percent or more of the equity interest, or has control; or
(e) an enterprise organized under Korean law whose dae-pyo-ja (for example, a chief executive officer, president, or similar principal senior officer) is a foreign national or half or more of whose senior management are foreign nationals.
For purposes of this entry, aircraft-sa-yong (use) services are services using an aircraft, and supplied upon request, for hire, other than for passenger or freight transportation, including aerial fire-fighting, forestry fire management, aerial advertising, flight training, aerial mapping, aerial investigation, aerial spraying, aerial photographing and other aerial agricultural activities, and aerial inspections and observations.
Sector: Transportation Services - Road Transportation Support Services
Obligations Concerned: Market Access (Article 12.4) Local Presence (Article 12.5)
Measures: Passenger Transport Service Act (Law No. 8095, December 26, 2006), Articles 37 and 38
Enforcement Regulations of the Passenger Transport Service Act (Ordinance of the Ministry of Construction and Transportation No. 551, March 19, 2007), Article 66
Parking Lot Service Act (Law No. 7596, July 13, 2005), Article 12
Road Traffic Act (Law No. 7969, July 19, 2006), Article 36
Description: Cross-Border Trade in Services
A person that supplies parking lot services, bus terminal operation services, or car towing and storage services must establish a place of business in the relevant geographic area in Korea and obtain an authorization from the Minister of Construction and Transportation, head of local police, or head of shi/gun, as appropriate, which is subject to an economic needs test.
Sector: Courier Services
Obligations Concerned: Market Access (Article 12.4) Local Presence (Article 12.5)
Measures: Aviation Act (Law No. 8128, December 28, 2006), Article 139
Enforcement Regulations of the Aviation Act (Ordinance of the Ministry of Construction and Transportation No. 532, August 18, 2006), Article 306
Trucking Transport Business Act (Law No. 8138, December 30, 2006), Articles 3 and 21
Description: Cross-Border Trade in Services
To supply international courier services that include commercial document delivery services, as specified in Article 3 of the Enforcement Decree of the Postal Services Act, a person must establish an office in Korea.
In order to obtain a trucking business license from the Minister of Construction and Transportation, a domestic courier services supplier must establish an office in the relevant geographic area. Such a license is subject to an economic needs test.
For greater certainty, a person acquiring a domestic courier services supplier does not need to obtain a new trucking business license provided that the acquirer operates under the same terms and conditions as set out in the acquiree's license.
Sector: Telecommunications Services
Obligations Concerned: National Treatment (Articles 11.3 and 12.2) Market Access (Article 12.4) Local Presence (Article 12.5)
Measures: Telecommunications Business Act (Law No. 8324, March 29, 2007), Articles 5, 5-2, 6, 19, and 59-2
Telecommunications Business Act (Law No. 5385, August 28, 1997), Addenda Article 4
Radio Waves Act (Law No. 7815, December 30, 2005), Articles 13 and 20
Description: Cross-Border Trade in Services and Investment
A license for facilities-based public telecommunications services or a registration for non-facilities-based public telecommunications services shall be granted only to a juridical person organized under Korean law.
A license for facilities-based public telecommunications services shall not be granted to or held by a juridical person organized under Korean law in which a foreign government, foreign person, or deemed foreign person holds in the aggregate more than 49 percent of the juridical person's total voting shares.
A foreign government, foreign person, or deemed foreign person may not in the aggregate hold more than 49 percent of the total voting shares of a facilities-based supplier of public telecommunications services. In addition, with respect to KT Corporation (KT), a foreign government, foreign person, or deemed foreign person may not be the largest shareholder of KT, except if it holds less than five percent of the total voting shares of KT.
No later than two years after this Agreement enters into force, Korea shall permit:
(a) a deemed foreign person to hold up to 100 percent of the total voting shares of a facilities-based supplier of public telecommunications services organized under Korean law, other than KT and SK Telecom Co., LTD (SK Telecom); and
(b) a facilities-based supplier of public telecommunications services organized under Korean law in which a deemed foreign person holds up to 100 percent of its total voting shares to obtain or hold a license for facilities-based public telecommunications services.
A foreign government, or its representative, or a foreign person may not obtain or hold a radio station license.
A foreign person may not supply cross-border public telecommunications services into Korea, except through a commercial arrangement with a supplier of public telecommunications services that is licensed in Korea.
For purposes of this entry:
(a) deemed foreign person means a juridical person organized under Korean law in which a foreign government or a foreign person (including a "specially related person" under subparagraph 3 of Article 36 of the Securities Exchange Act) is the largest shareholder and holds 15 percent or more of that juridical person's total voting shares, but does not include a juridical person that holds less than 1 percent of the total voting shares of a facilities-based supplier of public telecommunications services;
(b) consistent with Article 4.2 of the Telecommunications Business Act (Law No. 8324, March 29, 2007), a facilities-based supplier is a supplier that owns transmission facilities;
(c) consistent with Article 4.3 of the Telecommunications Business Act (Law No. 8324, March 29, 2007), a non-facilities- based supplier is a supplier that does not own transmission facilities (but may own a switch, router or multiplexer) and supplies its public telecommunication services through transmission facilities of a licensed facilities-based supplier; and
(d) consistent with subparagraph 3 of Article 2 of the Telecommunications Basic Act (Law No. 7810, December 30, 2005), transmission facilities means wireline or wireless transmission facilities (including circuit facilities) that connect transmitting points with receiving points.
Sector: Real Estate Brokerage and Appraisal Services
Obligations Concerned: Local Presence (Article 12.5)
Measures: Act on Duties of a Licensed Real Estate Broker and Filing of Real Estate Transactions (Law No. 8120, December 28, 2006), Article 9
Enforcement Decree of the Act on Duties of a Licensed Real Estate Broker and Filing of Real Estate Transactions (Presidential Decree No. 19507, June 12, 2006), Article 13
Enforcement Regulations of the Act on Duties of a Licensed Real Estate Broker and Filing of Real Estate Transactions (Ordinance of the Ministry of Construction and Transportation No. 530, August 7, 2006), Article 4
Public Notice of Values and Appraisal of Real Estate Act (Law No. 7707, December 7, 2005), Article 27
Enforcement Decree of the Public Notice of Values and Appraisal of Real Estate Act (Presidential Decree No. 19463, April 28, 2006), Articles 65, 66, and 68
Enforcement Regulations of the Public Notice of Values and Appraisal of Real Estate Act (Ordinance of the Ministry of Construction and Transportation No. 425, February 12, 2005), Articles 25 and 26
Description: Cross-Border Trade in Services
A person that supplies real estate brokerage services or real estate appraisal services must establish an office in Korea.
Sector: Retail, Leasing, Rental and Repair Services Related to Medical Devices
Obligations Concerned: Local Presence (Article 12.5)
Measures: Medical Devices Act (Law No. 8037, October 4, 2006), Articles 15 and 16
Enforcement Regulations of the Medical Devices Act (Ordinance of the Ministry of Health and Welfare No. 366, July 27, 2006), Articles 22 and 24
Description: Cross-Border Trade in Services
A person that supplies retail, leasing, rental, or repair services related to medical devices must establish an office in Korea.
Sector: Rental Services - Automobiles
Obligations Concerned: Local Presence (Article 12.5)
Measures: Passenger Transport Service Act (Law No. 8095, December 26, 2006), Articles 29 and 30
Enforcement Regulations of the Passenger Transport Service Act (Ordinance of the Ministry of Construction and Transportation No. 530, August 7, 2006), Article 52
Description: Cross-Border Trade in Services
A person that supplies automobile rental services must establish an office in Korea.
Sector: Scientific Research Services and Sea Map Making Services
Obligations Concerned: National Treatment (Articles 11.3 and 12.2)
Measures: Marine Scientific Research Act (Law No. 5809, February 5, 1999), Articles 6, 7, and 8
Territorial Sea and Contiguous Zone Act (Law No. 4986, December 6, 1995), Article 5
Description: Cross-Border Trade in Services and Investment
A foreign person, a foreign government, or a Korean enterprise owned or controlled by a foreign person that intends to conduct marine scientific research in the territorial waters or exclusive economic zone of Korea must obtain prior authorization or consent from the Minister of Maritime Affairs and Fisheries whereas a Korean national or a Korean enterprise not owned or controlled by a foreign person need only to provide notification to the Minister of Maritime Affairs and Fisheries.
Sector: Professional Services - Legal Services
Obligations Concerned: Market Access (Article 12.4) Local Presence (Article 12.5)
Measures: Attorney-at-law Act (Law No. 8271, January 26, 2007), Articles 4, 7, 21, 34, 45, 58-6, 58-22, and 109
Certified Judicial Scriveners Act (Law No. 7895, March 24, 2006), Articles 2, 3, and 14
Notary Public Act (Law No. 7428, March 31, 2005), Articles 10, 16, and 17
Description: Cross-Border Trade in Services