Industry Classification CPC 721 Transport Services by Sea-Going Vessels CPC 722 Cargo Transportation
Type of Reservation: National Treatment (Articles 10.3, 11.3) Local Presence (Article 11.4) Senior Management and Boards of Directors (Article 10.8)
Measures: Decreto Ley 3.059, Diario Oficial, diciembre 22, 1979, Ley de Fomento a la Marina Mercante, Títulos I y II
Decreto Supremo 24, Diario Oficial, marzo 10, 1986, Reglamento del Decreto Ley 3.059, Títulos I y II
Decreto Ley 2.222, Diario Oficial, mayo 31, 1978, Ley de Navegación, Títulos I, II, III, IV y V
Decreto Supremo 153, Diario Oficial, marzo 11, 1966, Aprueba el Reglamento General de Matrícula del Personal de Gente de Mar, Fluvial y Lacustre
Código de Comercio, Libro III, Títulos I, IV y V
Ley 19.420, Diario Oficial, octubre 23, 1995, Establece incentivos para el desarrollo económico de las provincias de Arica y Parinacota y modifica cuerpos legales que indica, Título Disposiciones varias
Description: Cross-Border Trade in Services and Investment
Only a Chilean natural or juridical person may register a vessel in Chile. A juridical person must be constituted with principal domicile and real and effective seat in Chile with its president, manager and majority of the directors or administrators being Chilean natural persons. In addition, more than 50 per cent of its equity capital must be held by Chilean natural or juridical persons. For these purposes, a juridical person with ownership participation in another juridical person that owns a vessel has to comply with all the aforementioned requisites.
A joint ownership (comunidad) may register a vessel if the majority of the joint owners are Chileans with domicile and residency in Chile, the administrators must be Chileans and the majority of the rights of the joint ownership must belong to a Chilean natural or juridical person. For these purposes, a juridical person with ownership participation in a joint ownership (comunidad) that owns a vessel has to comply with all the aforementioned requisites to be considered Chilean.
Special vessels owned by foreign natural or juridical persons domiciled in Chile may under certain conditions be registered in the country. For these purposes a special vessel does not include a fishing vessel. The conditions required are the following: domicile in Chile, principal head office in the country or undertaking a profession or commercial activity in a permanent way in Chile. The maritime authority may, for reasons of national security, impose certain special restrictions on the operation of these vessels.
The maritime authority may concede a better treatment based on the principle of reciprocity.
Foreign vessels shall be required to use pilotage, anchoring and harbor pilotage services when the maritime authorities so require it. In tugging activities or other maneuvers performed in Chilean ports, only tugboats flying the Chilean flag shall be used.
Captains shall be required to be Chilean nationals and to be acknowledged as such by the pertinent authorities. Officers on Chilean vessels shall be required to be Chilean natural persons registered in the Officers' Registry (Registro de oficiales). To become crewmembers of a Chilean vessel is required to be Chilean, to have the permit granted by the Maritime Authority and to be registered in the respective Registry. Professional titles and licenses granted by a foreign country shall be considered valid for the discharge of officers' duties on national vessels pursuant to a substantiated resolution (resolución fundada) issued by the Director.
Ship Captains ("patrón de nave") shall be Chilean nationals. The Ship Captains ("patrón de nave") is the natural person who, pursuant to the corresponding title awarded by the Director, is empowered to exercise command on smaller vessels and on certain special larger vessels.
Only Chilean nationals, or foreigners with domicile in Chile, shall be authorized to act as fishing boat Captains ("patrones de Pesca"), machinists ("mecánicosmotoristas"), machine operators ("motoristas"), sea-faring fishermen ("marineros pescadores"), small-scale fishermen ("pescadores"), industrial or maritime trade technical employees or workers, and as industrial and general ship service crews on fishing factories or fishing boats when so requested by ship operators ("armadores") in order to initiate such work.
In order to fly the national flag, the Captain of the ship, its officers and crew shall be required to be Chilean nationals. Nevertheless, the Dirección General del Territorio Marítimo y de Marina Mercante, on the basis of a substantiated resolution (resolucíon fundada), may authorize the hiring of foreign personnel, on a temporary basis if essential, with the exception of the Captain who, at all times, shall be required to be a Chilean national.
Only a Chilean natural or juridical person shall be authorized to work in Chile as a multimodal operator. Cabotage shall be reserved for Chilean vessels. Cabotage shall include the ocean, river or lake shipping of passengers and cargo between different points of the national territory and between such points and naval artifacts installed in territorial waters or in the exclusive economic zone.
Foreign merchant vessels may be able to participate in cabotage when cargo volumes exceed 900 tons, prior to a public tender called by the user with due anticipation. When the cargo volumes involved are equal to or less than 900 tons and no vessels flying the Chilean flag are available, the Maritime Authority shall authorize embarking such cargo on foreign merchant vessels. The reservation of coastal trade to Chilean vessels shall not apply in the event of cargo coming from or destined for ports located in the Province of Arica.
In the event that Chile should adopt, for reasons of reciprocity, a cargo reservation measure applicable to international cargo transportation between Chile and a nonparty country, the reserved cargo shall be transported in Chilean-flag vessels or in vessels considered as such.
Phase-out: None
Sector: Transportation
Sub-sector: Water Transportation
Industry Classification: CPC 721 Transport Services by Sea-Going Vessels CPC 722 Cargo Transportation
Type of Reservation: National Treatment (Articles 10.3, 11.3) Local Presence (Article 11.4)
Senior Management and Boards of Directors (Article 10.8)
Measures: Código de Comercio, Libro III, Títulos I, IV y V
Decreto Ley 2.222, Diario Oficial, mayo 31, 1978, Ley de Navegación, Títulos I, II y IV
Decreto 90 del Ministerio del Trabajo y Seguridad Social, Diario Oficial 21 de enero, 2000
Decreto 49 del Ministerio del Trabajo y Seguridad Social, Diario Oficial 16 de julio, 1999
Código del Trabajo, Libro I, Título II, Capítulo III, párrafo 2º
Description: Cross-Border Trade in Services and Investment
Shipping agents or representatives of ship operators, ship owners or captains, whether they are natural or juridical persons, shall be required to be Chilean nationals.
Work of stowage and dockage performed by natural persons is reserved to Chileans who are dully accredited by the corresponding authority to carry out such work and having an office established in Chile.
Whenever these activities are carried out by juridical persons, they must be legally constituted in the country and have their principal domicile in Chile. The chairman, administrators, managers, or directors must be Chilean. At least fifty per cent of the corporate capital must be held by Chilean natural or juridical persons. Such enterprises shall designate one or more empowered agents, who will act in their representation, and who shall be Chilean nationals. Harbor workers shall pass a basic course on harbor security in a Technical Execution Organism authorized by the National Service of Training and Employment, according to the norms established in the respective regulation.
Anyone unloading, transshipping and, generally, using continental or insular Chilean ports, particularly for landing fish catches or fish catches processed on board, shall also be required to be a Chilean natural or juridical person.
Phase-out: None
Annex I. Schedule of Korea
Sector: Agriculture
Sub-sector:
Industry Classification: CPC 0113 Rice, Not Husked CPC 0115 Barley KSIC 01212 Farming of Beef Cattle KSIC 51312 Wholesale of Meat
Type of Reservation: National Treatment (Article 10.3)
Measure: Law No. 5559 Article 4 of the Foreign Investment Promotion Act, Sept. 16, 1998
Presidential Decree No. 15931 Article 5 of its Enforcement Decree, Nov. 14, 1998
Description: Investment
Only Korean citizens may invest in the rice or barley industry in Korea.
Foreign nationals or foreign legal entities are permitted to hold less than 50 per cent of the shares or stocks of legal entities engaged in farming beef cattle.
Foreign nationals or foreign legal entities are permitted to hold less than 50 per cent of the shares or stocks of legal entities engaged in the wholesale of meat.
Phase-out: None
Sector: Art, Audiovisual and Related Services
Sub-sector: Service Relating to Performing Arts, Motion Pictures, Phonograms, Videos, Games, and Periodicals
Industry Classification: CPC 9619 Other Entertainment Services CPC 96113 Motion Pictures or Video Tape Distribution Services CPC 96121 Motion Picture Projection Services Phonograms, Videos and Game KSIC 2212 Newspapers, Magazines, and Other Periodicals Publishing and Distribution
Type of Reservation: National Treatment (Article 10.3, 11.3) Performance Requirements (Article 10.7)
Measure: Law No. 6632, Article 6 of the Public Performing Act, Jan. 26, 2002
Law No. 6186, Articles 6, 28 of the Motion Picture Promotion Act, Jan 21, 2000
Presidential Decree No. 16296, Article 13 of its Enforcement Decree, May 10, 1999
Law No. 5658, Article 5 of the Act on Importing Foreign Periodicals, Jan. 21, 1999
Law No. 6473, Article 16 of the Act on Phonogram, Video, and Game, Feb. 8, 1999
Description: Cross-Border Trade in Services and Investment
Any foreign national who intends to perform in Korea, or any person wishing to perform by inviting foreigners or importing phonograms manufactured in foreign countries must obtain a recommendation from the Korea Media Rating Board.
A person that intends to import, for the purpose of distribution, publications that are published by North Korea or anti-government organizations, as well as cartoons, photo albums, pictorial news books, magazine or novels, must obtain a recommendation from the Minister of Culture and Tourism.
Korean films and documentaries must be played for at least 146 days a year in every theater in Korea.
Recommendation from Korea Media Rating Board is required to import motion pictures and other documentaries.
Phase-out: None
Sector: Business Services
Sub-sector: Architectural Services
Industry Classification: CPC 8671 Architectural Services
Type of Reservation: Local Presence (Article 11.4)
Measure: Law No. 6503, Article 23 of the Certified Architects Act, Aug. 14, 2001
Presidential Decree No. 16808, Articles 22, 23 of its Enforcement Decree, May 10, 2000
Ordinance of the Ministry of Construction and Transportation No. 236, Article 13 of its Enforcement Regulations, May 22, 2000
Description: Cross-Border Trade in Services
A person who holds an architect license issued in Korea and intends to work as an architect must establish an office in the territory of Korea and register with the Minister of Construction and Transportation as set out in the Presidential Decree and the Ordinance of the Ministry of Construction and Transportation of the Certified Architects Act.
Phase-out: None
Sector: Business Services
Sub-sector: Engineering Services
Industry Classification: CPC 86762 Testing and Analysis Services of Physical Properties
Type of Reservation: Local Presence (Article 11.4)
Measure: Law No. 6586, Article 25 of the Construction Technology Management Act, Dec. 31, 2001
Presidential Decree No. 17329, Article 49 of its Enforcement Decree, July 30, 2001
Ordinance of the Ministry of Construction and Transportation No. 293, Article 28 of its Enforcement Regulations, Aug. 13, 2001
Description: Cross-Border Trade in Services
To establish a specialized institution for quality inspection, registration pursuant to Article 25 of the Construction Technology Management Act and relevant Articles of its Presidential Decree and the Ordinance of the Ministry of Construction and Transportation is required.
Phase-out: None
Sector: Business Services
Sub-sector: Industrial Safety and Health Institution
Industry Classification: CPC 85 Research and Development Services CPC 92900 Other Education Services CPC 93199 Other Human Health Services
Type of Reservation: Local Presence (Article 11.4)
Measure: Law No. 6104, Articles 15, 16, 31, 36, 42, 43, 49 of the Industrial Safety and Health Act, Jan. 7, 2000
Description: Cross-Border Trade in Services
Safety management agencies, health management agencies, specialized instruction institutions for accident prevention, designated educational institutions, designated inspection institutions, designated measurement institutions, designated health examination institution, designated safety and health inspection institutions, whose purposes are to promote industrial safety and health, shall be designated by the Minister of Labor.
Phase-out: None
Sector: Business Services
Sub-sector: Job Placement Services, Labor Supply and Worker Dispatch Services
Industry Classification: CPC8720 Placement and Supply Services of Personnel
Type of Reservation: Local Presence (Article 11.4)
Measure: Law No. 5884, Articles 19, 33 of the Employment Security Act, Feb. 8, 1999
Ministry of Labor Decree No. 155, Articles 18, 37 of the Enforcement Decree of the Act, Oct. 21, 1999
Law No. 5512, Article 7 of the Act Relating to Protection for Dispatched Worker, Feb. 20, 1998
Presidential Decree No. 15828, Article 3 of the Enforcement Decree of the Act, July 1, 1998
Description: Cross-Border Trade in Services
A person that intends to provide fee-charging job placement, labor supply, or worker dispatch services must establish an office in the territory of Korea whose size exceeds the following requirements:
(a) Fee-charging job placement services: 20 m² (in case of a legal entity: 33 m²)
(b) Worker dispatch services: 66 m²
(c) Labor supply businesses: 33 m²
In addition, a person that intends to provide fee-charging job placement services must register with the head of city, county, district; a person that intends to provide labor supply and worker dispatch services must obtain authorization from the Minister of Labor.
Phase-out: None
Sector: Business Services
Sub-sector: Rental/Leasing Services without Operator
Industry Classification: CPC 83101 Leasing or Rental Services without Operator
Type of Reservation: Local Presence (Article 11.4)
Measure: Law No. 6655, Articles 29, 30 of the Passenger Transport Service Act, Feb. 4, 2002
Ordinance of the Ministry of Construction and Transportation No. 316, Articles 52, 53, 54 of the Enforcement Regulations for Passenger Transport Service Act, May 24, 2002
Description: Cross-Border Trade in Services
For the provision of car rental services in Korea, registration with the Minister of Construction and Transportation, by submitting an application and supplementary documents is required. The standard (requirements) for registration, including number of automobiles, floor space of office and garage, are as set out in the Enforcement Regulations of the Passenger Transport Service Act.
Phase-out: None
Sector: Business Services
Sub-sector: Research Services
Industry Classification: CPC 8510 Research and Experimental Development Services on Natural Science and Engineering
Type of Reservation: National Treatment (Articles 10.3, 11.3)
Measure: Law No. 5809, Articles 6, 7, 8 of the Marine Scientific Research Act, Feb. 5, 1999
Description: Cross-Border Trade in Services and Investment
A foreign national or legal entity that intends to conduct research in the waters over which Korea has jurisdiction is required to submit its request, six months prior to the initiation of the research, to the Minister of Maritime Affairs and Fisheries through the Minister of Foreign Affairs and Trade.
To conduct research activities in territorial waters, authorization of the Minister of Maritime Affairs and Fisheries is required; to conduct research activities in the Exclusive Economic Zone, the consent of the Minister is required.
Phase-out: None
Sector: Business Services
Sub-sector: Vocational Ability Development Training Services
Industry Classification: CPC 92900 Other Education and Training Services
Type of Reservation: Local Presence (Article 11.4)
Measure: Law No. 5474, Articles 11, 22, 28 of the Vocational Training Promotion Act, Dec 24, 1997
Description: Cross-Border Trade in Services
Training institutions, which provide vocational ability development and training services pursuant to the Vocational Training Promotion Act, that wish to receive subsidies or loans from the Korean government for training costs must have their training courses authorized by the Minister of Labor.
Vocational ability development training facilities provided in the Vocational Training Promotion Act include educational facilities for training instructors, public facilities for the vocational ability development training, facilities operated by vocational ability development corporation, and facilities designated by the Minister of Labor.
To become a vocational ability development training facility, a vocational training institution is to be established as a legal entity in accordance with the relevant law or be designated by the Minister of Labor.
Phase-out: None