Obligations Concerned: National Treatment (Articles 11.3 and 12.2) Performance Requirements (Article 11.8) Senior Management and Boards of Directors (Article 11.9) Local Presence (Article 12.5)
Description: Cross-Border Trade in Services and Investment
Korea reserves the right to adopt or maintain any measure with respect to the conservation and restoration of cultural heritage and properties, including the excavation, appraisal, or dealing of cultural heritage and properties.
Sector: Other Recreational Services
Obligations Concerned: National Treatment (Article 11.3)
Description: Investment
Korea reserves the right to adopt or maintain any measure with respect to tourism in rural, fishery, and agricultural sites.
Sector: Legal Services - Foreign Legal Consultants
Obligations Concerned: National Treatment (Articles 11.3 and 12.2) Senior Management and Boards of Directors (Article 11.9) Local Presence (Article 12.5)
Description: Cross-Border Trade in Services and Investment
1. Korea reserves the right to adopt or maintain any measures including but not limited to:
(a) restrictions on certification, approval, registration, admission, and supervision of, and any other requirements with respect to, foreign country-licensed lawyers or foreign law firms supplying any type of legal services in Korea;
(b) restrictions on foreign country-licensed lawyers or foreign law firms entering into partnerships, commercial associations, affiliations, or any other type of relationship regardless of legal form, with byeon-ho-sa (Korean-licensed lawyers), Korean law firms, beop-mu-sa (Korean-certified judicial scriveners), byeon-ri-sa (Korean-licensed patent attorneys), gong-in-hoe-gye-sa (Korean-certified public accountants), se- mu-sa (Korean-certified tax accountants), or gwan-se-sa (Korean customs brokers);
(c) restrictions on foreign country-licensed lawyers or foreign law firms hiring byeon- ho-sa (Korean-licensed lawyers), beop-mu- sa (Korean-certified judicial scriveners), byeon-ri-sa (Korean-licensed patent attorneys), gong-in-hoe-gye-sa (Korean- certified public accountants), se-mu-sa (Korean certified tax accountants), or gwan- se-sa (Korean customs brokers) in Korea; and,
(d) restrictions on senior management and the board of directors of legal entities supplying foreign legal consulting services, including with respect to the chairman.
2. Notwithstanding paragraph 1,
(a) No later than the date this Agreement enters into force, Korea shall allow, subject to certain requirements consistent with this Agreement, U.S. law firms to establish representative offices (Foreign Legal Consultant offices or FLC offices) in Korea, and attorneys licensed in the United States to provide legal advisory services regarding the laws of the jurisdiction in which they are licensed and public international law as foreign legal consultants in Korea.
(b) No later than two years after the date this Agreement enters into force, Korea shall allow FLC offices, subject to certain requirements consistent with this Agreement, to enter into specific cooperative agreements with Korean law firms in order to be able to jointly deal with cases where domestic and foreign legal issues are mixed, and to share profits derived from such cases.
(c) No later than five years after the date this Agreement enters into force, Korea shall allow U.S law firms to establish, subject to certain requirements consistent with this Agreement, joint venture firms with Korean law firms. Korea may impose restrictions on the proportion of voting shares or equity interests of the joint venture firms. For greater certainty, such joint ventures may, subject to certain requirements, employ Korean-licensed lawyers as partners or associates.
3. Korea shall maintain, at a minimum, the measures adopted to implement its commitments in paragraph 2.
For purposes of this entry, U.S. law firm means a law firm organized under U.S. law and headquartered in the United States.
Sector: Professional Services - Foreign Certified Public Accountants
Obligations Concerned: National Treatment (Articles 11.3 and 12.2) Senior Management and Boards of Directors (Article 11.9) Local Presence (Article 12.5)
Description: Cross-Border Trade in Services and Investment
1. Korea reserves the right to adopt or maintain any measures, including but not limited to:
(a) restrictions on certified public accountants or accounting corporations registered under foreign laws hiring gong-in-hoe-gye-sa (Korean-certified public accountants);
(b) restrictions on foreign-certified public accountants providing auditing services in Korea; and
(c) restrictions on senior management and the board of directors of legal entities supplying certified public accountancy services, including with respect to the chairman.
2. Notwithstanding paragraph 1,
(a) No later than the date this Agreement enters into force, Korea shall allow, subject to certain requirements consistent with this Agreement:
(i) US. certified public accountants registered in the United States or accounting corporations organized under U.S. law to supply accounting consulting services relating to U.S. or international accounting laws and standards through offices established in Korea; and
(ii) US. certified public accountants registered in the United States to work in hoe-gye-beop-in (Korean accounting corporations).
(b) No later than five years after the date this Agreement enters into force, Korea shall allow U.S. certified public accountants registered in the United States to invest in any hoe-gye-beop-in (Korean accounting corporations), subject to certain requirements consistent with this Agreement, provided that:
(i) gong-in-hoe-gye-sa (Korean registered certified public accountants) shall own more than 50 percent of the voting shares or equity interest of the hoe-gye-beop-in, and
(ii) any single U.S. certified public accountant registered in the United States owns less than 10 percent of the voting shares or equity interests of the hoe-gye-beop-in.
3. Korea shall maintain, at a minimum, the measures adopted to implement its commitments in paragraph 2.
For purposes of this entry, a U.S. accounting corporation means an accounting corporation or partnership organized under U.S. law and headquartered in the United States.
Sector: Professional Services - Foreign Certified Tax Accountants
Obligations Concerned: National Treatment (Articles 11.3 and 12.2) Senior Management and Boards of Directors (Article 11.9) Local Presence (Article 12.5)
Description: Cross-Border Trade in Services and Investment
1. Korea reserves the right to adopt or maintain any measures, including but not limited to:
(a) restrictions on certified tax accountants or tax agency corporations registered under foreign laws hiring se-mu-sa (Korean- certified tax accountants) or gong-in-hoe- gye-sa (Korean-certified public accountants);
(b) restrictions on foreign-certified tax accountants providing tax reconciliation services and tax representative services in Korea; and
(c) restrictions on senior management and the board of directors of legal entities supplying certified tax accountancy services, including with respect to the chairman.
Notwithstanding paragraph 1,
(a) No later than the date this Agreement enters into force, Korea shall allow, subject to certain requirements consistent with this Agreement:
(i) the establishment of offices in Korea by U.S. certified tax accountants registered in the United States or tax agency corporations organized under the U.S. laws to provide tax consulting services with respect to USS. or international tax laws and taxation system; and
(ii) US. certified tax accountants registered in the United States to work in se-mu-beop-in (Korean tax agency corporations).
(b) No later than five years after this Agreement enters into force, Korea shall allow U.S. certified tax accountants registered in the United States to invest in any se-mu-beop-in (Korean tax agency corporations), subject to certain requirements consistent with this Agreement, provided that:
(i) se-mu-sa (Korean-certified tax accountants) shall own more than 50 percent of the voting shares or equity interests of the se-mu-beop-in; and
(ii) any single U.S. certified tax accountant registered in the United States owns less than 10 percent of the voting shares or equity interests of the se-mu-beop-in.
3. Korea shall maintain, at a minimum, the measures adopted to implement its commitments in paragraph 2.
For purposes of this entry, a U.S. tax agency corporation means a tax agency corporation or partnership organized under U.S. law and headquartered in the United States.
Sector: Business Services
Obligations Concerned: National Treatment (Article 12.2) Local Presence (Article 12.5)
Description: Cross-Border Trade in Services
Korea reserves the right to adopt or maintain any measure with respect to the exportation and re-exportation of controlled commodities, software, and technology.
Only persons residing in Korea may apply for a license to export or re-export such commodities, software, or technology.
As of the date this Agreement is signed, Korea is in the process of modifying the measures relevant to this entry. The Parties agree that they will consult after that process is completed to determine whether an amendment to this entry is necessary in light of those modifications.
Existing Measures: Technology Development Promotion Act (Law No. 7949, April 28, 2006)
Atomic Energy Act (Law No. 7806, December 30, 2005) Foreign Trade Act (Law No. 8356, April 11, 2007)
Announcement of the Ministry of Science and Technology (April 12, 2007), No. 2007-3
Announcement of the Ministry of Commerce, Industry and Energy (April 12, 2007), No. 2007-51
The Customs Act (Law No. 8136, December 30, 2006)
Sector: All Sectors
Obligations Concerned: National Treatment (Articles 11.3) Performance Requirements (Article 11.8) Senior Management and Boards of Directors (Article 11.9)
Description: Investment
Korea reserves the right to adopt or maintain any measure with respect to an investment to supply a service in the exercise of governmental authority, as that term is defined in Article 12.1.6 (Scope and Coverage), such as law enforcement and correctional services. This entry does not apply to:
(a) an investor or covered investment that has entered into an agreement with Korea with respect to the supply of such services; or
(b) a measure adopted or maintained by Korea
to the extent that the measure is subject to Chapter Thirteen (Financial Services).
Sector: Transportation Services - Maritime Passenger Transportation and Maritime Cabotage
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) Performance Requirements (Article 11.8) Local Presence (Article 12.5)
Description: Cross-Border Trade in Services and Investment
Korea reserves the right to adopt or maintain any measure with respect to the provision of international maritime passenger transportation services, maritime cabotage, and the operation of Korean vessels, including the following measures:
A person that supplies international maritime passenger transportation services must obtain a license from the Minister of Maritime Affairs and Fisheries, which is subject to an economic needs test.
Maritime cabotage is reserved for Korean vessels. Maritime cabotage includes maritime transportation between harbors located along the entire Korean peninsula and any adjacent islands. Korean vessel means:
(a) a vessel owned by the Korean government, a state enterprise, or an institution established under the Ministry of Maritime Affairs and Fisheries;
(b) a vessel owned by a Korean national;
(c) a vessel owned by an enterprise organized under the Korean Commercial Code;
(d) a vessel owned by an enterprise organized under foreign law that has its principal office in Korea and whose dae-pyo-ja (for example, a chief executive officer, president, or similar principal senior officer) is a Korean national. In the event there is more than one, all dae-pyo-ja must be Korean nationals.
For greater certainty, measures relating to the landside aspects of port activities are subject to the application of Article 23.2 (Essential Security).
Appendix II-A. Korea
For the following Sectors, Korea's obligations under Article XVI of the General Agreement on Trade in Services as set out in Korea's Schedule of Specific Commitments under the GATS(GATS/SC/48, GATS/SC/48/Supp1.1, GATS/SC/48/Suppl.l/Rev.1, GATS/SC/A8/Suppl.2, GATS/SC/48/Suppl.3, and GATS/SC/48/Suppl. 3/Rev.1) are improved as described.
| Sector/Subsector | Market Access Improvements |
| Research and Development Services: | |
| a. Research and development services on natural sciences | Insert new commitments with "None" for modes 1 and 2, "Unbound" for mode 3 and "Unbound except as indicated in the Horizontal Commitments section." for mode 4 |
| b. Research and development services on social sciences and humanities | Modify mode land 2 limitations from "Unbound" to "None" |
| c. Interdisciplinary research and development services | Insert new commitments with âNoneâ for modes land 2, "Unbound" for mode 3 and "Unbound except as indicated in the Horizontal Commitments section" for mode 4 |
| Market research and public opinion polling services | Modify mode land 2 limitations from "Unbound" to "None" |
| Services incidental to mining | Modify mode land 2 limitations from "Unbound" to "None" |
| Packaging services | Modify mode land 2 limitations from "Unbound" to "None" |
| Convention services other than Convention agency services | Insert new commitments with "None" for mode 1, 2 and 3 and "Unbound except as indicated in the Horizontal Commitments section" for mode 4 |
| Tourism and travel related services : | |
| a. Beverage serving services without entertainment. Excluding rail and air transport related facilities in beverage serving services without entertainment | Insert new commitments with “Unbound*” for mode 1, “None” for mode 2and 3 and “Unbound except as indicated in the Horizontal Commitments section” for mode 4 |
| b. Tour operator services | Insert new commitments with “None” for mode 1, 2 and 3 and “Unbound except as indicated in the Horizontal Commitments section” for mode 4 |
| c. Tourist Guides Services | Modify mode 3 from “Only travel agencies are allowed to supply tourist guide services” to “None |
Annex II. Schedule of the United States
Sector: Communications
Obligations Concerned: Most-Favored-Nation Treatment (Articles 11.4 and 12.3)
Description: Cross-Border Services and Investment
The United States reserves the right to adopt or maintain any measure that accords differential treatment to persons of other countries due to application of reciprocity measures (*) or through international agreements involving sharing of the radio spectrum, guaranteeing market access, or national treatment with respect to the one-way satellite transmission of direct-to-home (DTH) and direct broadcasting satellite (DBS) television services and digital audio services.
Sector: Social Services
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)
Cross-Border Services and Investment
The United States 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 they are social services established or maintained for a public purpose: income security or insurance, social security or insurance, social welfare, public education, public training, health, and child care.
Sector: Minority Affairs
Obligations Concerned: National Treatment (Articles 11.3 and 12.2) Local Presence (Article 12.5) Performance Requirements (Article 11.8) Senior Management and Boards of Directors (Article 11.9)
Description: Cross-Border Services and Investment
The United States reserves the right to adopt or maintain any measure according rights or preferences to socially or economically disadvantaged minorities, including corporations organized under the laws of the State of Alaska in accordance with the Alaska Native Claims Settlement Act.
Existing Measures: Alaska Native Claims Settlement Act, 43 U.S.C. § 1606(f) and (h)
Sector: Maritime Transportation Services and Operation of U.S.- flagged Vessels
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)
Description: Cross-Border Services and Investment
The United States reserves the right to adopt or maintain any measure relating to the provision of maritime transportation services and the operation of U.S.-flagged vessels, including the following:
(a) requirements for investment in, ownership and control of, and operation of vessels and other marine structures, including drill rigs, in maritime cabotage services, including maritime cabotage services performed in the domestic offshore trades, the coastwise trades, U.S. territorial waters, waters above the continental shelf, and in the inland waterways;
(b) requirements for investment in, ownership and control of, and operation of U.S.-flagged vessels in foreign trades;
(c) requirements for investment in, ownership or control of, and operation of vessels engaged in fishing and related activities in U.S. territorial waters and the Exclusive Economic Zone;
(d) requirements related to documenting a vessel under the U.S. flag;
(e) promotional programs, including tax benefits, available for shipowners, operators, and vessels meeting certain requirements;
(f) certification, licensing, and citizenship requirements for crew members on U.S.-flagged vessels;
(g) manning requirements for U.S.-flagged vessels;
(h) all matters under the jurisdiction of the Federal Maritime Commission; (1)
(i) negotiation and implementation of bilateral and other international maritime agreements and understandings;
(j) limitations on longshore work performed by crew members;
(k) tonnage duties and light money assessments for entering U.S. waters; and
(l) a certification, licensing, and citizenship requirements for pilots performing pilotage services in U.S. territorial waters.
The following activities are not included in this reservation. However, the treatment in (b) is conditional upon obtaining comparable market access in these sectors from Korea:
(a) vessel construction and repair; and
(b) landside aspects of port activities, including operation and maintenance of docks; loading and unloading of vessels directly to or from land; marine cargo handling; operation and maintenance of piers; ship cleaning; stevedoring; transfer of cargo between vessels and trucks, trains, pipelines, and wharves; waterfront terminal operations; boat cleaning; canal operation; dismantling of vessels; operation of marine railways for drydocking; marine surveyors, except cargo; marine wrecking of vessels for scrap; and ship classification societies. For greater certainty, measures relating to the landside aspects of port activities are subject to the application of Article 23.2 (Essential Security).
Existing Measures: Merchant Marine Act of 1920, §§ 19 and 27, now codified at 46 U.S.C. §§ 12101, 12120, 12132, 42101-42109, 55102, 55105-55108, 55110, 55115-55117, 55119
Jones Act Waiver Statute, 64 Stat 1120, 46 U.S.C.App., note preceding Section 1
Shipping Act of 1916, 46 U.S.C. §§ 50501, 56101,57109
Merchant Marine Act of 1936, 46 U.S.C. App. §§1151 et seq., 1171 et seq., and 46 U.S.C. §§ 50111,53301-53312, 53701-53717, 53721-53725, 53731-53735, 55304, 55305, 57101, 57104, 57301-57308
Merchant Ship Sales Act of 1946, 50 U.S.C. App. §1738
46 U.S.C. §§ 55109, 55111, 55118, 60301, 60302,60304-60306, 60312, 80104
46 U.S.C. §§ 12101 et seq. and 31301 et seq.
46 U.S.C. §§ 8904 and 31328(2)
Passenger Vessel Act, 46 U.S.C. § 55103
42 U.S.C. §§ 9601 et seq.; 33 U.S.C. §§ 2701 etseq.; 33 U.S.C. §§ 1251 et seq.
46 U.S.C. §§ 3301 et seq., 3701 et seq., 8103, and12107(b)
Shipping Act of 1984, 46 U.S.C. §§ 40701-40706,41107-41109
The Foreign Shipping Practices Act of 1988, 46 U.S.C. §§ 42301 et seq.
Merchant Marine Act, 1920, 46 U.S.C. §§ 50101 et seq.
Shipping Act of 1984, 46 U.S.C. §§ 40101 et seq.
Alaska North Slope, 104 Pub. L. 58; 109 Stat. 557
Longshore restrictions and reciprocity, 8 U.S.C. §§ 1101 et seq.
Vessel escort provisions, Section 1119 of Pub. L.106-554, as amended
Nicholson Act, 46 U.S.C. § 55114
Commercial Fishing Industry Vessel AntiReflagging Act of 1987, 46 U.S.C. § 2101 and 46
Sector: All