| Sector or sub-sector | Description of reservations |
| B. Telecommunications Services | |
| These services do not cover the economic activity consisting of the provision of content which requires telecommunications services for its transport. | |
| a) All services consisting of the transmission and reception of signals by any electromagnetic means (38), excluding broadcasting (39) | None |
| b) Satellite broadcast transmission services (40) | Service suppliers in this sector may be subject to obligations to safeguard general interest objectives related to the conveyance of content through their network in line with the United Kingdom regulatory framework for electronic communications. |
| 8. CONSTRUCTION AND RELATED ENGINEERING SERVICES (CPC 511, CPC 512, CPC 513, CPC 514, CPC 515, CPC 516, CPC 517 and CPC 518) | None |
| 9. DISTRIBUTION SERVICES. (excluding distribution of arms, munitions, explosives and other war material) All sub-sectors mentioned below (41) | None |
| Sector or sub-sector | Description of reservations |
| A. Commission Agents' Services | |
| a) Commission Agents' Services of motor vehicles, motorcycles and snowmobiles and parts and accessories thereof (part of CPC 61111, part of CPC 6113 and part of CPC 6121 ) | None |
| b) Other Commission Agents' Services (CPC 621) | None |
| B. Wholesale Trade Services | |
| a) Wholesale Trade Services of motor vehicles, motorcycles and snowmobiles and parts and accessories thereof (part of CPC 61111, part of CPC 6113 and part of CPC 6121) | None |
| b) Wholesale Trade Services of telecommunication terminal equipment (part of CPC 7542) | None |
| c) Other wholesale trade services (CPC 622 excluding wholesale trade services of energy products) (42) | None |
| C. Retailing Services (43) | |
| Retailing Services of motor vehicles, motorcycles and snowmobiles and parts and accessories thereof (CPC 61112, part of CPC 6113 and part of CPC 6121 ) Retailing Services of telecommunication terminal equipment (part of CPC 7542) Food retailing services (CPC 631) Retailing services of other (non-energy) goods, except retail sales of pharmaceutical, medical and orthopaedic goods (44) (CPC 632 excluding CPC 63211 and 63297) | None |
| D. Franchising (CPC 8929) | None |
| 10. EDUCATIONAL SERVICES (only privately funded services) | |
| A. Primary Education Services (CPC 921) B. Secondary Education Services (CPC 922) C. Higher Education Services (CPC 923) | Participation of private operators in the education network is subject to concession. |
| D. Adult Education Services (CPC 924) | None |
| 11. ENVIRONMENTAL SERVICES (45) | |
| A. Waste Water Services (CPC 9401) (46) B. Solid/hazardous waste management, excluding cross-border transport of hazardous waste a) Refuse Disposal Services (CPC 9402) b) Sanitation and Similar Services (CPC 9403) Protection of ambient air and climate (CPC9404) (47) D. Remediation and clean up of soil and waters a) Treatment, remediation of contaminated/polluted soil and water (part of CPC 9406) (48) Noise and vibration abatement (CPC 9405) F. Protection of biodiversity and landscape a) Nature and landscape protection services (part of CPC 9406) G. Other environmental and ancillary services (CPC 9409) | None |
| 12. FINANCIAL SERVICES | |
| A. Insurance and insurance-related services | None |
| B. Banking and other financial services (excluding insurance) | Only firms having their registered office in the United Kingdom can act as depositories of the assets of investment funds. The establishment of a specialised management company, having its head office and registered office in the United Kingdom, is required to perform the activities of management of unit trusts and investment companies. |
| 13. HEALTH SERVICES AND SOCIAL SERVICES (49) (only privately funded services) | |
| A. Hospital Services (CPC 9311) | Participation of private operators in the health and social network is subject to concession. An economic needs test may apply. Main criteria: number of and impact on existing establishments, transport infrastructure, population density, geographic spread, and creation of new employment. |
| B. Ambulance Services (CPC 93192) C. Residential health facilities other than hospital services (CPC 93193) D. Social Services (CPC 933) | Unbound for ambulance services, for residential health facilities other than hospital services, and for social services other than convalescent and rest houses and old people's homes. |
| 14. TOURISM AND TRAVEL RELATED SERVICES | |
| A. Hotel, Restaurants and Catering (CPC 641, CPC 642 and CPC 643) excluding catering in air transport services (50) | None |
| B. Travel Agencies and Tour Operators Services (including tour managers (CPC 7471) | None |
| C. Tourist Guides Services (CPC 7472) | None |
| 15. RECREATIONAL, CULTURAL AND SPORTING SERVICES (other than audio-visual services) | |
| A. Entertainment Services (including Theatre, Live Bands, Circus and Discotheque Services) (CPC 9619) | None |
| B. News and Press Agencies Services None. (CPC 962) | None |
| D. Sporting services None. (CPC 9641) | None |
| E. Recreation park and beach Services None. (CPC96491) | None |
| 16. TRANSPORT SERVICES | |
| A. Maritime Transport (51) | |
| a) International passenger transportation (CPC 7211 less national cabotage transport) (52). b) International freight transportation (CPC 7212 less national cabotage transport) (53) | Unbound for the establishment of a registered company for the purpose of operating a fleet under the national flag of the United Kingdom. |
| B. Internal Waterways Transport | |
| a) Passenger transportation (CPC 7221 less national cabotage transport) (54) b) Freight transportation (CPC 7222 less national cabotage transport) (55) | Measures based upon existing or future agreements on access to inland waterways reserve some traffic rights to operators based in the countries concerned and meeting nationality criteria regarding ownership. Unbound for the establishment of a registered company for the purpose of operating a fleet under the national flag of the United Kingdom. |
| C. Rail Transport (56) a) Passenger transportation (CPC 7111) b) Freight transportation (CPC 7112) | None |
| D. Road Transport (57) | |
| a) Passenger Transportation (CPC 7121 and CPC 7122) | Foreign investors cannot provide transport services within the United Kingdom (cabotage), except for rental of non-scheduled services of buses with operator. Economic needs test for taxi services. Main criteria: number of and impact on existing establishments, population density, geographic spread, impact on traffic conditions and creation of new employment. |
| b) Freight Transportation (58) (CPC 7123, excluding transportation of postal and courier items on own account) (59). | None |
| E. Pipeline transport of goods other than fuel (60) (61) (CPC 7139) | None |
| 17. SERVICES AUXILIARY TO TRANSPORT (62) | |
| A. Services auxiliary to Maritime Transport (63). a) Maritime Cargo Handling Services b) Storage and warehousing Services (part of CPC 742) c) Customs Clearance Services d) Container Station and Depot Services e) Maritime Agency Services f) Maritime Freight Forwarding Services g) Rental of Vessels with Crew (CPC 7213) h) Pushing and towing services (CPC 7214) i) Supporting services for maritime transport (part of CPC 745) j) Other supporting and auxiliary services (including catering) (part of CPC 749) | Unbound for the establishment of a registered company for the purpose of operating a fleet under the national flag of the United Kingdom. |
| B. Services auxiliary to internal waterways transport (64) a) Cargo-handling services (part of CPC 741) b) Storage and warehouseservices (part of CPC 742) c) Freight transport agency services (part of CPC 748) d) Rental of Vessels with Crew (CPC 7223) e) Pushing and towing services (CPC 7224) f) Supporting services for internal waterways transport (part of CPC 745) g) Other supporting and auxiliary services (part of CPC 749) | Measures based upon existing or future agreements on access to inland waterways reserve some traffic rights to operators based in the countries concerned and meeting nationality criteria regarding ownership. Unbound for the establishment of a registered company for the purpose of operating a fleet under the national flag of the United Kingdom. |
| C. Services auxiliary to rail transport (65) a) Cargo-handling services (part of CPC 741) b) Storage and warehouseservices (part of CPC 742) c) Freight transport agency services (part of CPC 748) d) Pushing and towing services (CPC 7113) e) Supporting services for rail transport services (CPC 743) f) Other supporting and auxiliary services (part of CPC 749) | None |
| D. Services auxiliary to road transport (66) a) Cargo-handling services (part of CPC 741) b) Storage and warehouseservices (part of CPC 742) c) Freight transport agency services (part of CPC 748) d) Rental of Commercial Road Vehicles with Operators (CPC 7124) e) Supporting services for road transport equipment (CPC 744) f) Other supporting and auxiliary services (part of CPC 749) | None |
| E. Services auxiliary to air transport services | |
| a) Ground-handling services (including catering) | Unbound, except for National Treatment. Categories of activities depend on the size of the airport. The number of service suppliers in each airport can be limited, due to available-space constraints, and to not less than two suppliers for other reasons. |
| b) Storage and warehouse services (part of CPC 742) | None |
| c) Freight transport agency services (part of CPC 748) | None |
| d) Rental of aircraft with crew (CPC 734) | Aircraft used by a United Kingdom air carrier have to be registered in the United Kingdom. To be registered, aircraft may be required to be owned either by natural persons meeting specific nationality criteria or by juridical persons meeting specific criteria regarding ownership of capital and control. Aircraft must be operated by an air carrier owned either by natural persons meeting specific nationality criteria or by juridical persons meeting specific criteria regarding ownership of capital and control. |
| e) Sales and Marketing f) Computer Reservations System | Where air carriers of the United Kingdom are not accorded equivalent treatment (67) to that provided in the United Kingdom by CRS services suppliers in Korea, or where CRS services suppliers of the United Kingdom are not accorded equivalent treatment to that provided in the United Kingdom by air carriers in Korea, measures may be taken to accord equivalent treatment, respectively, to the air carriers of Korea by the CRS services suppliers in the United Kingdom, or to the CRS services suppliers of Korea by the air carriers in the United Kingdom. |
| F. Services auxiliary to pipeline transport of goods other than fuel (68) a) Storage and warehouse services of goods other than fuel transported by pipelines (69) (part of CPC 742) |
| Sector or sub-sector | Description of the measure |
| 18. OTHER TRANSPORT SERVICES | |
| Provision of Combined Transport Service | None, without prejudice to the limitations inscribed in this List of Commitments affecting any given mode of transport. |
| 19. ENERGY SERVICES | |
| A. Services Incidental to Mining (70 (CPC 883) (71) | None |
| C. Storage and warehouse services of fuels transported None. through pipelines (72) (part of CPC 742) | None |
| D. Wholesale trade services of solid, liquid and gaseous fuels and related products (CPC 62271) and wholesale trade services of electricity, steam and hot water (73) | Unbound for wholesale trade services of electricity, steam and hot water. |
| E. Retailing Services of motor fuel (CPC 613) | Unbound for retailing services of motor fuel, electricity, (non bottled) gas, steam and hot water. |
| F. Retail sales of fuel oil, bottled gas, coal and wood (CPC 63297) and retailing services of electricity, (non-bottled) gas, steam and hot water (74) | None |
| G. Services incidental to energy distribution (75) (CPC 887) | Unbound except for consultancy services, and none for consultancy services. |
| 20. OTHER SERVICES NOT INCLUDED ELSEWHERE | None |
| a) Washing, Cleaning and Dyeing services (CPC 9701) | None |
| b) Hairdressing services (CPC 97021) | None |
| c) Cosmetic treatment, manicuring and pedicuring services (CPC 97022) | None |
| d) Other beauty treatment services n.e.c. (CPC 97029) | None |
| e) Spa services and non therapeutical massages, to the extent that they are provided as relaxation physical well-being services and not for medical or rehabilitation purposes (76) (77) (CPC ver. 1.0 97230) | None |
| f) Telecommunications connection services (CPC 7543) | None |
B. Schedule of Specific Commitments in Establishment (1)
EXPLANATORY NOTES
1. The list of commitments below (hereinafter referred to as "this Schedule") indicates the economic activities liberalised pursuant to Article 7.13 and, by means of reservations, the market access and national treatment limitations that apply to establishments and investors of the United Kingdom in those activities. This Schedule is composed of the following elements:
(a) the first column indicating the sector or sub-sector in which the commitment is undertaken by Korea, and the scope of liberalisation to which the reservations apply;
(b) the second column describing the applicable reservations to Article 7.11 in the sector or sub-sector indicated in first column; and (c) the third column describing the applicable reservations to Article 7.12 in the sector or sub-sector indicated in first column. Establishment in sectors or sub-sectors covered by this agreement and not mentioned in this Schedule is not committed.
2. Establishment in service sectors, which is already covered in Korea's Schedule of Specific Commitments in Service Sectors, is not covered in this Schedule.
3. Measures inconsistent with both Articles 7.11 and 7.12 shall be inscribed in the column relating to Article 7.11. In this case, the inscription will be considered to provide a condition or qualification to Article 7.12 as well. (2)
4. Notwithstanding Article 7.11, non-discriminatory requirements as regards the types of legal form of an establishment do not need to be specified in this Schedule in order to be maintained or adopted by Korea.
5. Korea does not undertake any commitment under Articles 7.18 and 7.19 on key personnel, graduate trainees, and business service sellers in economic activities which are not liberalised pursuant to Article 7.13.
Korea's commitments undertaken under Articles 7.18 and 7.19 on key personnel, graduate trainees, and business service sellers do not apply in cases where the intent or effect of their temporary presence is to interfere with or otherwise affect the outcome of any labour/management dispute or negotiation.
Korea may take measures affecting natural persons seeking access to the employment market of Korea and measures regarding citizenship, residence or employment on a permanent basis.
Key personnel, graduate trainees, and business service sellers whose entries and temporary stays are permitted shall observe the immigration and labour laws of Korea.
6. In identifying individual sectors and sub-sectors: ISIC rev 3.1 means the International Standard Industrial Classification of all Economic Activities as set out in Statistical Office of the United Nations, Statistical Papers, Series M, N° 4, SIC REV 3.1, 2002.
7. This Schedule does not include measures relating to qualification requirements and procedures, technical standards and licensing requirements when they do not constitute a market access or a national treatment limitation within the meaning of Articles 7.11 and 7.12. Those measures (e.g. need to obtain a license, universal service obligations, need to obtain recognition of qualifications in regulated sectors, need to pass specific examinations, including language examinations, and non-discriminatory requirements that certain activities may not be carried out in environmental protected areas or areas of particular historic and artistic interest), even ifnot listed, apply in any case to establishments and investors of the other Party.
8. In accordance with Article 7.1, this Schedule does not include measures concerning subsidies or grants provided by Korea, including government- supported loans, guarantees and insurance.
9. The rights and obligations arising from this Schedule shall have no self-executing effect and thus confer no rights directly on natural or juridical persons.
| Sector or Sub-sector | Limitations on Market / Limitations on National Treatment Access |
| ALL SECTORS INCLUDED IN THIS SCHEDULE | Acquisition of Land Unbound for measures 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: (1) is not deemed foreign under Article 2 of the Foreigner's Land Acquisition Act, and (2) is deemed foreign under the Foreigners Land Acquisition Act or is a branch of a foreign juridical person, subject to approval or notification in accordance with the Foreigners Land Acquisition Act, if the land is to be used for any of the following legitimate business purposes: (a) ordinary business activities; (b) housing for senior management; or (c) fulfilling land-holding requirements stipulated by pertinent laws. Unbound for measures with respect to the acquisition of farmland by foreign persons. |
| Investment Unbound for measures with respect to the transfer or disposition of equity interests or assets held by state enterprises or governmental authorities.(3)(4)A foreigner who intends to make a foreign direct investment shall, in advance, make report to the Minister of Trade, Industry and Energy in accordance with the Ordinance of the Minister of Trade, Industry and Energy. The same limitation shall apply to any modification of matters such as the amount of foreign direct investment and the ratio thereof. Unbound for measures with respect to investments in the defense industry. Foreign investors who intend to acquire the outstanding shares of defense industry other than the newly issued ones shall obtain a prior permission from the Minister of Trade, Industry and Energy. | |
| Disadvantaged Groups Unbound for measures 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. (5) | |
| ALL SECTORS INCLUDED IN THIS SCHEDULE | State-Owned National Electronic/Information System Unbound for measures 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 reservation does not apply to payment and settlement systems related to financial services. |
| Firearms, Swords, Explosives, Etc. Unbound for measures with respect to the firearms, swords, and explosives sectors, including the manufacture, use, sale, storage, transport, import, export, and possession of firearms, swords, or explosives. | |
| Atomic Energy Unbound for measures with respect to the atomic energy industry. | |
| Electric Power Industry Unbound for measures with respect to electric power generation, transmission, distribution, and sale. Any such measure shall not decrease the level of aggregate foreign ownership permitted in the electric power industry as listed under sector D (a) a) (ISIC rev 3.1: 401). | |
| Gas Industry Unbound for measures with respect to the import and wholesale distribution of natural gas and the operation of terminals and the national high pressure pipeline network. Any such measure shall not decrease the level of aggregate foreign ownership permitted in the gas industry as listed under sector D (a) b) (ISIC rev 3.1: 402). |
| A. AGRICULTURE, HUNTING, FORESTRY | ||
| (a) Agriculture, hunting and related service activities (ISIC rev 3.1: 011,012,013,015) | Unbound for rice or barley farming. Foreign investors may not hold 50 percent or more of the equity interests of an enterprise engaged in beef cattle farming. | Unbound for rice or barley farming. |
| (b) Forestry and logging (ISIC rev 3.1: 02) | None | None |
| B. MINING AND QUARRYING | ||
| (a) Mining of coal and lignite; extraction of peat (ISIC rev 3.1: 10) | None | None |
| (b) Extraction of crude petroleum and natural gas; service activities incidental to oil and gas extraction, excluding surveying (ISIC rev 3.1: 11) | None, under the following conditions: (a) Submarine petroleum (6) extraction rights can be held only by the government; and (b) These rights may be transferred to a licensee for a limited period, provided the applicant meets non-discriminatory and objectively assessed qualification requirements. | None |
| (d) Mining of metal ores (ISIC rev 3.1: 13) | None | None |
| (e) Other mining and quarrying (ISIC rev 3.1: 14) | None | None |
| C. MANUFACTURING | ||
| (a) Manufacture of food products and beverages (ISIC rev 3.1: 15 excluding grain polishing ) | None | None |
| (b) Manufacture of tobacco products (ISIC rev 3.1: 16) | None | None |
| (c) Manufacture of textiles (ISIC rev 3.1: 17) | None | None |
| (d) Manufacture of wearing apparel; dressing and dyeing of fur (ISIC rev 3.1: 18) | None | None |
| (e) Tanning and dressing of leather; manufacture of luggage, handbags, saddlery, harness and footwear (ISIC rev 3.1: 19) | None | None |
| (f) Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials (ISIC rev 3.1: 20) | None | None |
| (g) Manufacture of paper and paper products (ISIC rev 3.1: 21) | None | None |
| (h) Publishing, printing and reproduction of recorded media (ISIC rev3.1: 22, excluding publishing and printing on a fee or contract basis ) (7) | None | None |
| (i) Manufacture of coke oven products (ISIC rev 3.1: 231) | None | None |
| (g) Manufacture of refined petroleum products (ISIC rev 3.1: 232) | None | None |
| l) Manufacture of chemicals and chemical products a) Manufacturing of basic chemicals (ISIC rev 3.1: 241 excluding manufacturing of radioisotope) b) Manufacturing of other chemical products (ISIC rev 3.1 : 242) c) Manufacturing of man made fibres (ISIC rev 3.1: 243) | None | None |
| (m) Manufacture of rubber and plastics products (ISIC rev 3.1: 25) | None | None |
| (n) Manufacture of other non- metallic mineral products (ISIC rev 3.1: 26) | None | None |
| (o) Manufacture of basic metals (ISIC rev 3.1: 27) | None | None |
| (p) Manufacture of fabricated metal products, except machinery and equipment ISIC rev 3.1: 28 excluding manufacturing of nuclear reactor) | None | None |
| (q) Manufacture of machinery and equipment n.e.c. a) Manufacture of general purpose machinery (ISIC rev 3.1: 291) b) Manufacture of special purpose machinery other than weapons and munitions (ISIC rev 3.1: 2921, 2922, 2923, 2924, 2925, 2926, 2929) c) Manufacture of domestic appliances n.e.c. (ISIC rev 3.1: 293) | None | None |
| (r) Manufacture of office, accounting and computing machinery (ISIC rev 3.1: 30) | None | None |
| (s) Manufacture of electrical machinery and apparatus n.e.c. (ISIC rev 3.1: 31) | None | None |
| (t) Manufacture of radio television and communication equipment and apparatus (ISIC rev 3.1: 32) | None | None |
| (u) Manufacture of medical, precision and optical instruments, watches and clocks (ISIC rev 3.1: 33 excluding manufacturing of radiation generation facilities) | None | None |
| (v) Manufacture of motor vehicles, trailers and semi- trailers (ISIC rev 3.1: 34) | None | None |
| (w) Manufacture of other (non- military) transport equipment (ISIC rev 3.1: 35 excluding manufacturing of warships, warplanes and other transport equipment for military use) | None | None |
| (x) Manufacture of furniture; manufacturing n.e.c. (ISIC rev 3.1: 36) | None | None |
| (y) Recycling (ISIC rev 3.1: 37) | None | None |
| D. ELECTRICITY, GAS AND WATER SUPPLY | ||
| (a) Electricity, gas, steam and hot water supply a) Energy industry - electric power generation other than nuclear power generation; electric power transmission, distribution and sales (ISIC rev 3.1: 401) | The aggregate foreign share of Korean Electric Power Corporation’s (“KEPCO”) 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. A single shareholder’s share of KEPCO’s equity interests may not exceed 3 percent | The aggregate foreign share of Korean Electric Power Corporation’s (“KEPCO”) 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. A single shareholder’s share of KEPCO’s equity interests may not exceed 3 percent |
| b) Manufacture of gas; distribution of gaseous fuels through mains (ISIC rev 3.1: 402) | Foreign persons, in the aggregate, may not own more than 30 percent of the equity interests of Korean Gas Corporation (“KOGAS”). A single shareholder’s share of KOGAS’s equity interests may not exceed 15 percent. | Foreign persons, in the aggregate, may not own more than 30 percent of the equity interests of Korean Gas Corporation (“KOGAS”). A single shareholder’s share of KOGAS’s equity interests may not exceed 15 percent. |
| c) Steam and hot water supply (ISIC rev 3.1: 403) | None | None |
Annex 7-B. MFN TREATMENT EXEMPTION
1. For the purposes of Articles 7.8.2 and 7.14.2, to be of a significantly higher level, obligations stipulated in a regional economic integration agreement shall either create an internal market on services and establishment (1) or encompass both the right of establishment and the approximation of legislation. The evaluation of the level of the obligations shall be conducted on the basis of sectoral or horizontal commitments.
(a) The right of establishment referred to in this paragraph means an obligation to abolish in substance all barriers to establishment among the parties to the regional economic integration agreement by the entry into force of that agreement. The right of establishment shall include the right of nationals of the parties to the regional economic integration agreement to set up and manage undertakings under the conditions laid down for nationals by the legislation of the country where such establishment is effected.
(b) The approximation of legislation referred to in this paragraph means:
(i) the alignment of the legislation of one or more of the parties to the regional economic integration agreement with the legislation of the other party or parties to that agreement; or
(ii) the incorporation of common legislation into the legal order of the parties to the regional economic integration agreement. Such alignment or incorporation shall be taking place, and is deemed to take place only from such time that it has been enacted into the domestic legal order of the party or parties to the regional economic integration agreement.
2. The Parties shall notify the Committee referred to in Article 7.3 of any regional economic integration agreement which fulfils the conditions of Articles 7.8.2 and 7.14.2. Such a notification shall be made in writing within 60 days of the signature of the regional economic integration agreement.
3. Upon the request of a Party, and further to the notification mentioned in paragraph 2 of this Annex, the Parties shall discuss and review, at the Committee or in separate consultations, the conformity of the regional economic integration agreement with the conditions of Articles 7.8.2 and 7.14.2 and this Annex.
Annex 7-C. LIST OF MFN EXEMPTIONS. UNITED KINGDOM
| Sector or sub-sector | Description of measure indicating its inconsistency with Articles 7.8 and 7.14 | Countries to which the measure applies | Intended duration | Conditions creating the need for the exemption |
| 1. All sectors | The United Kingdom reserves the right to adopt or maintain any measure that accords differential treatment to countries deriving from a specific provision found in economic integration agreements to which the United Kingdom is a Party and according to which the United Kingdom may amend any measure only to the extent that the amendment does not decrease the conformity of the measure, as it existed immediately before the amendment, with obligations on market access, national treatment and most-favoured-nation in these economic integration agreements. | All countries | Indefinite | To protect differential treatment deriving from ratchet clauses. |
| 2. Rail Transport — Passenger and Freight | Measures that are taken under existing or future agreements, and which regulate traffic rights and operating conditions. | All countries with which agreements are or will be in force. | Indefinite | To protect the integrity of rail transport infrastructure and the environment, and to regulate traffic rights between the countries concerned. |
| 3. Road Transport - Passenger and Freight | Provisions in existing or future agreements on international road haulage (including combined transport - road/rail) and passenger transport, concluded between the United Kingdom and third countries, which: (a) reserve or limit the provision of transport service between the contracting parties or across the territory of the contracting parties to vehicles registered in each contracting party ; or (b) provide for tax exemption for such vehicles. | Switzerland, states in Central, Eastern and South-Eastern Europe and all members of the Commonwealth of Independent States, Albania, Turkey, Lebanon, Israel, Syria, Jordan, Egypt, Tunisia, Algeria, Morocco, Iran, Afghanistan, Iraq, and Kuwait. | Indefinite | The need for exemption is linked to the regional characteristics of the crossborder provision of road transport services. |
| 4. Auxiliary Air Transport Services (a) aircraft repair and maintenance services during which an aircraft is withdrawn from service; (b) the selling and marketing of air transport services; (c) computer reservation system (CRS) services; and (d) other services auxiliary to air transport services, such as ground-handling services, rental service of aircraft with crew, and airport management services | The right to adopt or maintain any measure that accords differential treatment to countries under any international agreement in force or signed after the date of entry into force of this Agreement. | All countries | Indefinite | Needed to protect existing and future international agreements. |
| 5. CRS and Sales and Marketing of Air Transport Services | The obligations of CRS system vendors or of parent and participating air carriers shall not apply where equivalent treatment to that applied under UK CRS rules is not accorded in the country of origin of the parent carrier or of the system vendor. | All countries where a CRS system vendor or a parent air carrier is located. | Indefinite | The need for the exemption results from the insufficient development of multilaterally agreed rules for the operation of CRS. |
| 6. Internal Waterways Transport | Measures based upon existing or future agreements on access to inland waterways, which reserve traffic rights for operators based in the countries concerned and meeting nationality criteria regarding ownership. | Switzerland, States in Central, Eastern and South-Eastern Europe and all members of the Commonwealth of Independent States. | Indefinite. Exemption needed for certain countries only until an economic integration agreement is concluded or completed. | To regulate transport capacity on inland waterways, taking into account geographic specificity. |
| 7. Maritime Transport | Measures concerning the establishment, activities and operations of shipping companies beyond the commitment undertaken by Korea in Annex 7-A. | Unspecified | Indefinite | International agreements in the context of overall trade relations. |
| 8. Fisheries | The United Kingdom reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or plurilateral international agreement involving fisheries in force or signed after the date of entry into force of this Agreement. | All countries | Indefinite | Needed to protect existing and future bilateral and plurilateral international agreements. |
| 9. All sectors | Measures based on existing or future bilateral agreements between the United Kingdom and the countries and principalities concerned, providing for the right of establishment for natural and juridical persons. | San Marino, Monaco, Andorra, and Vatican City State. | Indefinite | The geographical situation and historical, economic and cultural links between the United Kingdom and the countries and principalities concerned |
Annex 7-C. LIST OF MFN EXEMPTIONS. KOREA
| Sector or Sub-Sector | Description of Measure Indicating its Inconsistency with MEN |
| 1. All Sectors | Korea reserves the right to adopt or maintain any measure that accords differential treatment to countries under any international agreement signed after the date of entry into force of this Agreement involving: (a) fisheries; or (b) maritime matters, including salvage. |
| 2. All Sectors | Korea reserves the right to adopt or maintain any measure that accords differential treatment to countries deriving from a specific provision found in economic integration agreements to which Korea is a Party and according to which Korea may amend any measure only to the extent that the amendment does not decrease the conformity of the measure, as it existed immediately before the amendment, with obligations on market access, national treatment and most-favoured-nation in these economic integration agreements. |
| 3. Auxiliary Air Transport Services. (a) aircraft repair and maintenance services during which an aircraft is withdrawn from service; (b) the selling and marketing of air transport services; (c) computer reservation system (CRS) services; and (d) other services auxiliary to air transport services, such as ground-handling services, rental service of aircraft with crew, and airport management services | Korea reserves the right to adopt or maintain any measure that accords differential treatment to countries under any international agreement involving auxiliary air transport services signed after the date of entry into force of this Agreement. |
| 4. Disadvantaged Groups | 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. |
| 5. Social Services | Korea reserves the right to adopt or maintain any measure that accords differential treatment to persons of other countries 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. |
| 6. Communication Services - Broadcasting Services | Korea reserves the right to adopt or maintain any measure that accords differential treatment to persons of other countries due to the 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. |
| 7. Transportation Services - Railroad Transportation | Korea reserves the right to adopt or maintain any measure that accords differential treatment to countries under any international agreement involving railroad transportation signed after the date of entry into force of this Agreement. |
| 8. Transportation Services - Passenger Road Transportation Services (Taxi Services and Scheduled Passenger Road Transportation Services) | Korea reserves the right to adopt or maintain any measure that accords differential treatment to persons of other countries with respect to taxi services and scheduled passenger road transportation services. |
| 9. Transportation Services - Freight Road Transportation Services (not including Road Transportation Services Related to Courier Services) | Korea reserves the right to adopt or maintain any measure that accords differential treatment to persons of other countries with respect to freight road transportation services, not including road transportation of containerised freight (excluding cabotage) by international shipping companies and road transportation services related to courier services. |
| 10. Transportation Services - Internal Waterways Transportation Services and Space Transportation Services | Korea reserves the right to adopt or maintain any measure that accords differential treatment to persons of other countries with respect to internal waterways transportation services and space transportation services. |
| 11. Education Services - Pre-Primary, Primary, Secondary, Higher, and Other Education | Korea reserves the right to adopt or maintain any measure that accords differential treatment to persons of other countries with respect to pre- primary, primary, and secondary education; health and medicine-related higher education; higher education for prospective pre-primary, primary, and secondary teachers; professional graduate education in law; distance education at all education levels (except adult education services, provided that such services do not confer academic credit, diplomas, or degrees); and other education services. This entry does not apply to the administration of educational testing for foreign use. For greater certainty, nothing in this Agreement affects Koreaâs authority to select and apply educational testings, or to regulate school curriculum in accordance with domestic education policy. |
| 12. Social Services - Human Health Services | Korea reserves the right to adopt or maintain any measure that accords differential treatment to persons of other countries with respect to human health services. This entry shall not apply to the preferential measures provided in the Act on Designation and Management of Free Economic Zones (Law No. 9216, December 26, 2008), and the Special Act on Establishment of Jeju Special Self-Governing Province and Creation of Free International City (Law No.9526, March 25, 2009) relating to establishment of medical facilities, pharmacies, and similar facilities, and the supply of remote medical services to those geographical areas specified in those Acts. |
| 13. Recreational, Cultural, and Sporting Services - Motion Picture Promotion, Advertising, or Post-Production Services | Korea reserves the right to adopt or maintain any measure that accords differential treatment to persons of other countries with respect to motion picture promotion, advertising, or post-production services. |
| 14. Transportation Services - Maritime Passenger Transportation and Maritime Cabotage | Korea reserves the right to adopt or maintain any measure that accords differential treatment to persons of other countries 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 licence from the Minister of Land, Infrastructure and Transport, 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 Land, Infrastructure and Transport; (b) a vessel owned by a Korean national; (c) a vessel owned by an enterprise organised under the Korean Commercial Code; a vessel owned by an enterprise organised 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. |
Annex 7-D. THE ADDITIONAL COMMITMENT ON FINANCIAL SERVICES
Transfer of information
1. The Parties recognise the importance of the cross-border transfer of information by financial service suppliers. Korea has expressed its intent to undertake modification to its regulatory regime that will result in its adoption of approaches that will permit the transfer of financial information across borders while addressing such areas as the protection of sensitive information of consumers, prohibitions on unauthorised reuse of the sensitive information, the ability of financial regulators to have access to records of financial service suppliers relating to the handling of such information, and requirements for the location of technology facilities. (1)
Performance of functions
2. The Parties recognise the benefits of allowing a financial service supplier in a Party's territory to perform certain functions at its head office or affiliates located inside or outside the Party's territory. To the extent practicable, each Party should allow such an office or affiliate to perform these functions which generally include, but are not limited to:
(a) trade and transaction processing functions, including confirmation and statement production;
(b) technology-related functions, such as data processing (2), programming and system development;
(c) administrative services, including procurement, travel arrangements, mailing services, physical security, office space management and secretarial services;
(d) human resource activities, including training and education;
(e) accounting functions, including bank reconciliation, budgeting, payroll, tax, account reconciliation and customer and proprietary accounting; and
(f) legal functions, including the provision of advice and litigation strategy.
3. Nothing in paragraph 2 prevents a Party from requiring a financial service supplier located in its territory to retain certain functions.
4. For greater certainty, a financial service supplier located in the territory of a Party retains ultimate responsibility for compliance with requirements applicable to those functions performed by its head office or affiliate.
Supply of insurance by the postal services to the public
5. The regulation of insurance services supplied by a Party's postal service supplier to the public should not accord to the Party's postal service supplier a competitive advantage over private service suppliers of like insurance services in the territory of the Party.
6. To this end, Korea should, to the extent practicable, provide that the Financial Services Commission (hereinafter referred to as the "FSC") exercise regulatory oversight over the insurance underwriting services supplied by Korea Post to the public and that those services be subject to the same rules applicable to private suppliers supplying like insurance underwriting services in its territory (3).
Sectoral cooperatives selling insurance
7. The regulation of insurance services supplied by a sectoral cooperative should not provide the cooperative a competitive advantage over private suppliers of like insurance services. To the extent practicable, a Party should apply the same rules to services supplied by such cooperatives that it applies to like services supplied by private insurers.
8. To this end, the FSC should exercise regulatory oversight over services supplied by sectoral cooperatives. At a minimum, Korea shall provide that solvency matters related to the sale of insurance by the National Agricultural Cooperative Federation, the National Federation of Fisheries Cooperatives, the Korea Federation of Community Credit Cooperatives and the National Credit Union Federation of Korea shall be subject to regulation by the FSC.
Self- Regulatory Organisations
9. The Korea Insurance Development Institute is subject to the discipline of Article 7.40. This confirmation is without prejudice to the status of any other organisation in this or any other financial services sub-sector.
10. For greater certainty, if each Party's financial regulatory authority delegates a function related to insurance to a self-regulatory organisation or other non-governmental body, the authority shall take reasonable steps to ensure compliance with Article 7.39 (Transparency) and Article 7.23.2 (Domestic Regulation) with regard to any actions taken by the organisation or other non-governmental body pursuant to the delegated function.
UNDERSTANDING ON THE KOREAN POSTAL REFORM PLAN (1)
In the course of the negotiations of this Agreement, the delegation of Korea explained to the delegation of the United Kingdom the steps taken by the Korean government to reform its postal services.
In this context, Korea has drawn to the attention of the delegation of the United Kingdom the following aspects of its postal reform plan, outlined in the Understanding on the Korean Postal Reform Plan of the Korea-EU FTA as follows:
"Korea intends to expand gradually the exceptions to the Korean Postal Authority's monopoly to increase the scope of private delivery services that are permitted. This will be done through amendments to the Postal Service Act, related laws, or their subordinate regulations.
(a) After these amendments are enacted, the scope of Korean Postal Authority's letter posts will be clearer through the redefinition of its concept, and the exceptions to the letter- posts monopoly will be extended based on objective standards such as weight, price or a combination thereof.
(b) In determining the nature and extent of such amendments, Korea will consider various factors, including domestic market conditions, the experience of other countries with postal liberalisation, and the need to ensure universal service. Korea plans to implement these amendments within the next three years from the date of signature of this Agreement.
In applying these reformed criteria Korea will provide non-discriminatory opportunities to all the postal and express delivery service suppliers in Korea."(2)
Korea and the UK acknowledge that Korea has completed the abovementioned steps for its postal reform plan.
UNDERSTANDING CONCERNING SPECIFIC COMMITMENTS ON TELECOMMUNICATIONS SERVICES
The following understanding was reached between the delegations of Korea and the United Kingdom during the course of negotiations regarding specific commitments on telecommunications services in this Agreement:
If a Party conditions the granting of a license to supply public telecommunications services to a person of the Party in which a person of the other Party holds an equity interest on a finding that the supply of such services would serve the public interest, the Party shall ensure that it: (i) bases any such finding and the procedures for making such a finding on objective and transparent criteria; (ii) employs a presumption in favor of finding that granting a license to a person of the Party in which a person of the other Party holds an equity interest would serve the public interest; and (iii) develops any such procedures consistent with Article 7.22 (Transparency and Confidential Information), Article 7.23 (Domestic Regulation) and Article 7.36 (Resolution of Telecommunications Disputes).
This Understanding shall constitute an integral part of this Agreement.
UNDERSTANDING ON REGULATIONS RELATING TO ZONING, URBAN PLANNING AND ENVIRONMENTAL PROTECTION
During the negotiations on Chapter Seven (Trade in Services, Establishment and Electronic Commerce) of this Agreement, the Parties discussed regulations relating to zoning, urban planning and environmental protection which are applicable in Korea and in the United Kingdom at the time of signature of this Agreement.
The Parties share the understanding that, in so far as regulations, including regulations relating to zoning, urban planning and environmental protection, constitute non-discriminatory and non quantitative measures affecting establishment, they are not subject to scheduling.
Based on the common understanding above, the Parties confirm that specific measures maintained by Korea in the following Acts are not subject to scheduling:
- Seoul Metropolitan Area Readjustment Planning Act - Industrial Cluster Development and Factory Establishment Act
- Special Act on the Improvement of Air Quality in the Seoul Metropolitan Area
The Parties confirm their right to introduce new regulations relating to zoning, urban planning and environmental protection.
This Understanding shall constitute an integral part of this Agreement.
UNDERSTANDING ON THE ARTICLE 7.5.2(a) FOOTNOTE 5
In line with the discussion that took place in the Sixty-fifth Session of the WTO Committee on Regional Trade Agreements on June 19", 2012, the Parties hereby confirm their agreement to acknowledge that each other's understandings regarding footnote 5 on the Article 7.5.2(a) are as follows:
Korea understands that footnote 5 does not create any obligation that goes beyond the ordinary meaning of the Article XVI:2(a) of the WTO GATS, and its commitment under Annex 7-4-A is based on such an understanding.
The UK understands that footnote 5 clarifies that requiring a service supplier of the other Party to have an establishment or to be resident in a Party's territory as a condition for the cross-border supply of services is a market access limitation within the meaning of Article 7.5.2(a). The footnote is without prejudice to the meaning of Article XVI:2(a) of the WTO GATS.
This Understanding shall constitute an integral part of this Agreement.
Chapter EIGHT. PAYMENTS AND CAPITAL MOVEMENTS
Article 8.1. Current Payments
The Parties undertake to impose no restrictions on, and to allow, all payments and transfers on the current account of balance of payments between residents of the Parties to be made in freely convertible currency, in accordance with the Articles of Agreement of the International Monetary Fund.
Article 8.2. Capital Movements
1. With regard to transactions on the capital and financial account of balance of payments, the Parties undertake to impose no restrictions on the free movement of capital relating to direct investments made in accordance with the laws of the host country, to investments and other transactions liberalised in accordance with Chapter Seven (Trade in Services, Establishment and Electronic Commerce) and to the liquidation and repatriation of such invested capital and of any profit generated therefrom.
2. Without prejudice to other provisions in this Agreement, the Parties shall ensure, with regard to transactions not covered by paragraph 1 on the capital and financial account of balance of payments, in accordance with the laws of the host country, the free movement by investors of the other Party of capital relating to, inter alia:
(a) credits related to commercial transactions including the provision of services in which a resident of a Party is participating;
(b) financial loans and credits; or
(c) capital participation in a juridical person with no intention of establishing or maintaining lasting economic links.
3. Without prejudice to other provisions in this Agreement, the Parties shall not introduce any new restrictions on the movement of capital between residents of the Parties and shall not make the existing arrangements more restrictive.
4. The Parties may hold consultations with a view to further facilitating the movement of capital between them in order to promote the objectives of this Agreement.