A terrestrial broadcaster providing programming in the following genres must include the following percentage of Korean content in its annual programming:
(a) Animation: 45 percent of the broadcaster's annual animation programming hours;
(b) Movies: 25 percent of the broadcaster's annual movie programming hours; and
(c) Music: 60 percent of the broadcaster's annual music programming hours.
A cable system operator, satellite broadcasting operator or program provider providing at least some music programming must include Korean content in 60 percent of its annual music programming hours, per channel.
No later than the date this Agreement enters into force, Korea shall not require a cable system operator, satellite broadcasting operator, or program provider providing at least some animation or movie programming to provide a percentage of Korean content in its annual programming hours, per channel, that is greater than:
(a) Animation: 30 percent of the broadcaster's annual animation programming hours; and
(b) Movies: 20 percent of the broadcaster's annual movie programming hours.
Certain separate content quota requirements apply to a broadcaster specialized in religious programming or education programming, or to a terrestrial digital multimedia broadcasting (DMB) operator. A satellite DMB operator is subject to content quota requirements applied to a satellite broadcasting operator.
No later than the date this Agreement enters into force, Korea shall permit no less than 80 percent of a terrestrial broadcaster's, cable system operator's, satellite broadcasting operator's, or program provider's quarterly programming hours of foreign content per genre to be foreign content of a single country (single-country content ceiling).
For purposes of this entry:
(a) program provider engaged in jong-hap- pyeon-sung (multi-genre programming) means a program provider that offers a combination of news, entertainment, drama, movies, music programming, etc.;
(b) deemed foreign person means a juridical person organized under Korean law in which a foreign government or a foreign person holds in the aggregate more than 50 percent of the juridical person's total issued stocks or equity interest, or whose largest shareholder is a foreign government or a foreign person; and
(c) a "satellite broadcasting operator" includes an operator that uses or leases capacity on a satellite registered in a foreign country.
Sector: Energy Industry - Electric Power Generation Other Than Nuclear Power Generation; Electric Power Transmission, Distribution and Sales
Obligations Concerned: National Treatment (Article 11.3) (1)
Measures: Securities and Exchange Act (Law No. 8315, March 29, 2007), Article 203
Enforcement Decree of the Securities and Exchange Act (Presidential Decree No. 19806, December 29, 2006), Article 87-2
Foreign Investment Promotion Act (Law No. 8380, April 11, 2007), Articles 4 and 5
Enforcement Decree of the Foreign Investment Promotion Act, (Presidential Decree No. 19826, January 5, 2007), Article 5
Consolidated Public Notice for Foreign Investment (No. 2007-69, February 28, 2007, Ministry of Commerce, Industry and Energy), Appendix 1
Notice of Ministry of Finance and Economy (No. 2000-17, September 28, 2000)
Regulation on Supervision of Securities Business (Financial Supervisory Commission Notice No. 2007-3, January 19, 2007), Sec. 7-6
Description: Investment
The aggregate foreign share of KEPCO's issued stocks may not exceed 40 percent. A foreign person may not become the largest shareholder of KEPCO.
The aggregate foreign share of power generation facilities, including cogeneration facilities of heat and power (GHP) for the district heating system (DHS), may 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 may not be the largest shareholder.
Sector: Energy Industry - Gas Industry
Obligations Concerned: National Treatment (Article 11.3) (2)
Measures: Act on the Improvement of Managerial Structure and Privatization of Public Enterprises (Law No. 8050, October 4, 2006), Article 19
Securities and Exchange Act (Law No. 8315, March 29, 2007), Article 203
Foreign Investment Promotion Act (Law No. 8380, April 11, 2007), Articles 4 and 5
Articles of Incorporation of the Korea Gas Corporation (March 26, 2007), Article 11
Description: Investment
Foreign persons, in the aggregate, may not own more than 30 percent of the equity of KOGAS.
Sector: Recreational, Cultural, and Sporting Services - Motion Picture Projection Services
Obligations Concerned: Performance Requirements (Article 11.8) Market Access (Article 12.4)
Measures: Act on Promotion of Motion Pictures and Video Products (Law No. 8280, January 26, 2007), Articles 2, 27, and 40
Enforcement Decree of the Act on Promotion of Motion Pictures and Video Products (Presidential Decree No. 19714, October 26, 2006), Article 19
Description: Cross-Border Trade in Services and Investment
Cinema operators must project Korean motion pictures for at least 73 days per year at each screen in Korea.
Annex I. SCHEDULE OF THE UNITED STATES
Sector: Atomic Energy
Obligations Concerned: National Treatment (Article 11.3)
Level of Government: Central Measures: Atomic Energy Act of 1954, 42 U.S.C. §§ 2011 et seq. Description: Investment
A license issued by the United States Nuclear Regulatory Commission is required for any person in the United States to transfer or receive in interstate commerce, manufacture, produce, transfer, use, import, or export any nuclear "utilization or production facilities" for commercial or industrial purposes. Such a license may not be issued to any entity known or believed to be owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government (42 U.S.C. § 2133(d)). A license issued by the United States Nuclear Regulatory Commission is also required for nuclear "utilization and production facilities," for use in medical therapy, or for research and development activities. The issuance of such a license to any entity known or believed to be owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government is also prohibited (42 U.S.C. § 2134(d)).
Sector: Business Services
Obligations Concerned: National Treatment (Article 12.2) Local Presence (Article 12.5)
Level of Government: Central
Measures: Export Trading Company Act of 1982, 15 U.S.C. §§ 4011- 4021 15 C.F.R. Part 325
Description: Cross-Border Services
Title II of the Export Trading Company Act of 1982 authorizes the Secretary of Commerce to issue "certificates of review" with respect to export conduct. The Act provides for the issuance of a certificate of review where the Secretary determines, and the Attorney General concurs, that the export conduct specified in an application will not have the anticompetitive effects proscribed by the Act. A certificate of review limits the liability under federal and state antitrust laws in engaging in the export conduct certified.
Only a "person" as defined by the Act can apply for a certificate of review. "Person" means "an individual who is a resident of the United States; a partnership that is created under and exists pursuant to the laws of any State or of the United States; a State or local government entity; a corporation, whether organized as a profit or nonprofit corporation, that is created under and exists pursuant to the laws of any State or of the United States; or any association or combination, by contract or other arrangement, between such persons."
A foreign national or enterprise may receive the protection provided by a certificate of review by becoming a "member" of a qualified applicant. The regulations define "member" to mean "an entity (U.S. or foreign) that is seeking protection under the certificate with the applicant. A member may be a partner in a partnership or a joint venture; a shareholder of a corporation; or a participant in an association, cooperative, or other form of profit or nonprofit organization or relationship, by contract or other arrangement."
Sector: Business Services
Obligations Concerned: National Treatment (Article 12.2) Local Presence (Article 12.5)
Level of Government: Central
Measures: Export Administration Act of 1979, as amended, 50 U.S.C. App. §§ 2401-2420
International Emergency Economic Powers Act, 50 U.S.C. §§ 1701-1706
Export Administration Regulations, 15 C.F.R. Parts 730 - 774
Description: Cross-Border Services
With some limited exceptions, exports and re-exports of commodities, software, and technology subject to the Export Administration Regulations require a license from the Bureau of Industry and Security, U.S. Department of Commerce (BIS). Certain activities of U.S. persons, wherever located, also require a license from BIS. An application for a license must be made by a person in the United States.
In addition, release of controlled technology to a foreign national in the United States is deemed to be an export to the home country of the foreign national and requires the same written authorization from BIS as an export from the territory of the United States.
Sector: Mining and Pipeline Transportation
Obligations Concerned:National Treatment (Article 11.3) Most-Favored-Nation Treatment (Article 11.4)
Level of Government: Central
Measures: Mineral Lands Leasing Act of 1920, 30 U.S.C. §§ 181 and 185(a) 10 U.S.C. § 7435
Description: Investment
Under the Mineral Lands Leasing Act of 1920, aliens and foreign corporations may not acquire rights-of-way for oil or gas pipelines, or pipelines carrying products refined from oil and gas, across on-shore federal lands or acquire leases or interests in certain minerals on on-shore federal lands, such as coal or oil. Non-U.S. citizens may own a 100 percent interest in a domestic corporation that acquires a right-of-way for oil or gas pipelines across on-shore federal lands, or that acquires a lease to develop mineral resources on on-shore federal lands, unless the foreign investor's home country denies similar or like privileges for the mineral or access in question to U.S. citizens or corporations, as compared with the privileges it accords to its own citizens or corporations or to the citizens or corporations of other countries (30 U.S.C. §§ 181, 185(a)).
Nationalization is not considered to be denial of similar or like privileges.
Foreign citizens, or corporations controlled by them, are restricted from obtaining access to federal leases on Naval Petroleum Reserves if the laws, customs, or regulations of their country deny the privilege of leasing public lands to citizens or corporations of the United States (10 U.S.C. § 7435).
Sector: All Sectors
Obligations Concerned: National Treatment (Article 11.3) Most-Favored-Nation Treatment (Article 11.4)
Level of Government: Central
Measures: 22 U.S.C. §§ 2194 and 2198(c)
Description: Investment
The Overseas Private Investment Corporation (OPIC) insurance and loan guarantees are not available to certain aliens, foreign enterprises, or foreign-controlled domestic enterprises.
The United States recognizes that, as of the date of entry into force of this Agreement, OPIC may make arrangements with the Korea Export Insurance Corporation or the Multilateral Investment Guarantee Agency for sharing liabilities assumed under investment insurance, as provided in 22 U.S.C. § 2194, and that Korea is therefore eligible for Most-Favored-Nation treatment under this entry.
Sector: Air Transportation
Obligations Concerned: National Treatment (Article 11.3) Most-Favored-Nation Treatment (Article 11.4) Senior Management and Boards of Directors (Article 11.9)
Level of Government: Central
Measures: 49 U.S.C. Subtitle VI, Aviation Programs 14C.F R. Part 297 (foreign freight forwarders); 14 C.F.R. Part 380, Subpart E (registration of foreign (passenger) charter operators)
Description: Investment
Only air carriers that are "citizens of the United States" may operate aircraft in domestic air service (cabotage) and may provide international scheduled and non-scheduled air service as U.S. air carriers.
USS. citizens also have blanket authority to engage in indirect air transportation activities (air freight forwarding and passenger charter activities other than as actual operators of the aircraft). In order to conduct such activities, non-US. citizens must obtain authority from the Department of Transportation. Applications for such authority may be rejected for reasons relating to the failure of effective reciprocity, or if the Department of Transportation finds that it is in the public interest to do so.
Under 49 U.S.C. § 40102(a)(15), a citizen of the United States means an individual who is a U.S. citizen; a partnership in which each member is a U.S. citizen; ora USS. corporation of which the president and at least two- thirds of the board of directors and other managing officers are U.S. citizens, which is under the actual control of U.S. citizens, and in which at least seventy-five percent of the voting interest in the corporation is owned or controlled by US. citizens.
Sector: Specialty Air Services
Obligations Concerned: National Treatment (Articles 11.3 and 12.2) Most-Favored-Nation Treatment (Articles 11.4 and 12.3) Senior Management and Boards of Directors (Article 11.9)
Level of Government: Central
Measures: 49 U.S.C., Subtitle VII, Aviation Programs 49 U.S.C. § 41703 14CFR. Part 375
Description: Cross-Border Services and Investment
"Foreign civil aircraft" require authority from the Department of Transportation to conduct specialty air services in the territory of the United States.(*) In determining whether to grant a particular application, the Department considers, among other factors, the extent to which the country of the applicant's nationality accords U.S. civil aircraft operators effective reciprocity. "Foreign civil aircraft" are aircraft of foreign registry or aircraft of U.S. registry that are owned, controlled, or operated by persons who are not citizens or permanent residents of the United States (14 C-F.R. § 375.1). Under 49 U.S.C. § 40102(a)(15), a citizen of the United States means an individual who is a U.S. citizen; a partnership in which each member is a U.S. citizen; or a U.S. corporation of which the president and at least two-thirds of the board of directors and other managing officers are U.S. citizens, which is under the actual control of U.S. citizens, and in which at least seventy-five percent of the voting interest in the corporation is owned or controlled by U.S. citizens.
Sector: Transportation Services - Customs Brokers
Obligations Concerned: National Treatment (Articles 11.3 and 12.2) Local Presence (Article 12.5)
Level of Government: Central
Measures: 19 U.S.C. § 1641(b)
Description: Cross-Border Services and Investment
A customs broker’s license is required to conduct customs business on behalf of another person. Only U.S. citizens may obtain such a license. A corporation, association, or partnership established under the law of any state may receive a customs broker’s license if at least one officer of the corporation or association, or one member of the partnership, holds a valid customs broker’s license.
Sector: All Sectors
Obligations Concerned: National Treatment (Article 11.3) Most-Favored-Nation Treatment (Article 11.4)
Level of Government: Central
Measures: Securities Act of 1933, 15 U.S.C. §§ 77c(b), 77f, 77g, 77h,77j, and 77s(a)17 C.F.R. §§ 230.251 and 230.405
Securities Exchange Act of 1934, 15 U.S.C. §§ 78l, 78m,78o(d), and 78w(a)17 C.F.R. § 240.12b-2
Description: Investment
Foreign firms, except for certain Canadian issuers, may not use the small business registration forms under the Securities Act of 1933 to register public offerings of securities or the small business registration forms under the Securities Exchange Act of 1934 to register a class of securities or file annual reports.
Sector: Communications – Radiocommunications (*)
Obligations Concerned: National Treatment (Article 11.3)
Level of Government: Central
Measures: 47 U.S.C. § 310 (a)-(b) Foreign Participation Order 12 FCC Rcd 23891, paras. 97- 118 (1997)
Description: Investment
The United States reserves the right to restrict ownership of radio licenses in accordance with the above statutory and regulatory provisions, which provide that, inter alia:
(a) no station license may be granted to or held by a foreign government or representative thereof;
(b) no broadcast or common carrier or aeronautical en route or aeronautical fixed station license may be granted to or held by:
(i) an alien or its representative;
(ii) a corporation organized under the laws of a foreign government; or
(iii) a corporation of which more than one fifth of the capital stock is owned of record or voted by an alien or its representative, a foreign government or its representative, or a corporation organized under the laws of a foreign country; and
(c) absent a specific finding that the public interest would be served by permitting foreign ownership of a broadcast licenses, no broadcast station license shall be granted to any corporation directly or indirectly controlled by another corporation of which more than one fourth of the capital stock is owned of record or voted by an alien or its representative, a foreign government or its representative, or a corporation organized under the laws of a foreign country.
Sector: Professional Services - Patent Attorneys, Patent Agents, and Other Practice before the Patent and Trademark Office
Obligations Concerned: National Treatment (Article 12.2) Most-Favored-Nation Treatment (Article 12.3) Local Presence (Article 12.5)
Level of Government: Central
Measures: 35 U.S.C. Chapter 3 (practice before the U.S. Patent and Trademark Office)
37 C.F.R. Parts 10 and 11 (representation of others before the U.S. Patent and Trademark Office)
Description: Cross-Border Services
As a condition to be registered to practice for others before the U.S. Patent and Trademark Office (USPTO):
(a) a patent attorney must be a U.S. citizen or an alien lawfully residing in the United States (37 C.F.R. § 11.6(a));
(b) a patent agent must be a U.S. citizen, an alien lawfully residing in the United States, or a nonresident who is registered to practice in a country that permits patent agents registered to practice before the USPTO to practice in that country; the latter is permitted to practice for the limited purpose of presenting and prosecuting patent applications or applicants located in the country in which he or she resides (37 C.F.R. §11.6(c)); and
(c) a practitioner in trademark and non-patent cases must be an attorney licensed in the United States, a “grandfathered” agent, an attorney licensed to practice in a country that accords equivalent treatment to attorneys licensed in the United States, or an agent registered to practice in such a country; the latter two are permitted to practice for the limited purpose of representing parties located in the country in which he or she resides (37 C.F.R. § 10.14(a)-(c)).
Sector: All Sectors
Obligations Concerned: National Treatment (Articles 11.3 and 12.2) Most-Favored-Nation Treatment (Articles 11.4 and 12.3) Local Presence (Article 12.5) Performance Requirements (Article 11.8) Senior Management and Boards of Directors (Article 11.9)
Level of Government: Regional
Measures: All existing non-conforming measures of all states of the United States, the District of Columbia, and Puerto Rico