Sub-sector: Water Transportation
Industry Classification: CPC 721 Transportation Services by Sea-Going Vessels CPC 745 Supporting Services for Transportation
Type of Reservation: National Treatment (Articles 10.3, 11.3) Local Presence (Article 11.4)
Measure: Law No. 5972 Articles 2,6 of the Ships Act, April 15, 1999 Law No.6193 Article 4 of the Foreign Investment Promotion Act, Jan. 21, 2000
Law No. 5917 Articles 6, 20 of the Pilotage Act, Feb. 8, 1999
Law No. 5973 Article 104 of the Seaman Act, April 15, 1999
Law No. 5971 Articles 15, 16 of the Ship Safety Act, April 15, 1999
Description: Cross-Border Trade in Services and Investment
Only vessels owned by a Korean citizen, a legal entity established in accordance with relevant Korean regulations, and a legal entity that is represented by a Korean citizen and
has established its principal office in the territory of Korea, may be registered in Korea.
Cabotage is reserved for Korean vessels. However, a foreign national or legal entity may, until unification in the Korean peninsula, engage in coastwise transport activities, provided that:
(a) the activities involve inter-Korean transportation of passengers and freight;
(b) the business is established in the form of a joint venture undertaken with Korean shipping companies; and
(c) the ratio of shares or stocks owned by the foreign national or foreign legal entity is less than 50 per cent of the total shares or stocks of the joint venture.
Only a Korean citizen is eligible to be a maritime pilot. In the case a vessel, which is not registered in Korea and weighs five hundred tons or more, is in operation within the piloting area designated by the Ordinance of the Ministry of Maritime Affairs and Fisheries, the captain of the vessel must bring a maritime pilot on board and allow him/her to pilot the ship.
Only Korean citizens are eligible to be ship captains of a Korean vessel and must be approved as such by the competent authorities of Korea. Korean citizens registered with the competent authorities may become officers and crewmembers of Korean vessels. But, for foreign crewmembers, up to six foreign nationals, may board a Korean vessel, provided that they are registered with the competent authorities in Korea.
Only Korean natural or juridical persons may engage in activities concerning salvage of wrecked ships or dismantling of ships.
Phase-out: None
Sector: Transportation (Road)
Sub-sector: Maintenance and Repair, Sales and Disassembly of Automobile
Industry Classification: CPC 61120 Maintenance and Repair Services of Motor Vehicles CPC 8868 Repair Services of Other Transport Equipment
Type of Reservation: Local Presence (Article 11.4)
Measure: Law No. 6730, Article 53 of the Automobile Management Act, Aug. 26, 2002
Presidential Decree No. 17286, Articles 11, 12 of the Enforcement Decree of the Automobile Management Act, June 30, 2001
Ordinance of the Ministry of Construction and Transportation No. 283, Article 111 of the Enforcement Regulations of the Automobile Management Act, June 30, 2001
Description: Cross-Border Trade in Services
Registration with the head of the city, county or district is required to engage in an automobile management business (i.e., automobile transaction business, automobile maintenance business, automobile scrapping business).
Modifications, except for minor ones, made to the content of registration must also be reported to the head of the aforementioned authority. Matters regarding the registration standards and procedures shall be determined by the Ordinance of the metropolitan city/province.
In addition, the head of the city, county or district may restrict or impose conditions to the registrations, when he or she acknowledges the need to take into account the local conditions, such as traffic and environmental pollution, or other reasons for the public good.
Automobile management business may be classified into several categories in accordance with the Enforcement Decree of the Automobile Management Act.
Phase-out: None
Annex II. Reservations for Future Measures (Chapters 10 and 11)
Annex II
1. The Schedule of a Party sets out, pursuant to Articles 10.9.2 and 11.5.2, the reservations taken by that Party with respect to specific sectors, sub-sectors or activities for which it may maintain existing, or adopt new or more restrictive, measures that do not conform with obligations imposed by:
(a) Article 10.3 or 11.3 (National Treatment);
(b) Article 11.4 (Local Presence);
(c) Article 10.7 (Performance Requirements); or
(d) Article 10.8 (Senior Management and Boards of Directors).
2. Each reservation sets out the following elements:
(a) Sector refers to the general sector in which the reservation is taken;
(b) Sub-sector refers to the specific sector in which the reservation is taken;
(c) Industry Classification refers, where applicable, to the activity covered by the reservation according to CPC or domestic industry classification codes. The CPC has only an illustrative character;
(d) Type of Reservation specifies the obligations referred to in paragraph 1 for which a reservation is taken;
(e) Description sets out the scope of the sector, sub-sector or activities covered by the reservation; and
(f) Existing Measures identifies, for transparency purposes, existing measures that apply to the sector, sub-sector or activities covered by the reservation.
3. In the interpretation of a reservation, all elements of the reservation shall be considered. The Description element shall prevail over all other elements.
4. For purposes of this Annex, CPC means Central Product Classification (CPC) numbers as set out in Statistical Office of the United Nations, Statistical Papers, Series M, No. 77, Provisional Central Product Classification, 1991.
Annex II. Schedule of Chile
Sector: Aboriginal Affairs
Sub-sector:
Industry Classification:
Type of Reservation: National Treatment (Articles 10.3, 11.3) Local Presence (Article 11.4) Performance Requirements (Article 10.7) Senior Management and Boards of Directors (Article 10.8)
Description: Cross-Border Trade in Services and Investment
Chile reserves the right to adopt or maintain any measure denying investors of Korea and their investments, or service providers of Korea, any rights or preferences provided to aboriginal people.
Sector: All Sectors
Sub-sector:
Industry Classification:
Type of Reservation: National Treatment (Article 10.3)
Description: Investment
Chile reserves the right to adopt or maintain any measure related to residency requirements for the ownership by investors of the other Party, or their investments, of oceanfront land.
A Chilean natural person, a person residing in Chile or a Chilean juridical person may own or control land used for agriculture. Chile otherwise reserves the right to adopt or maintain any measure related to the ownership or control of such lands. In the case of juridical persons, the majority of each class of shares may be required to be owned by Chilean natural persons or persons resident in the country. A resident is considered a person residing in Chile for 183 days a year or more.
Existing measures: Decreto Ley 1939, Diario Oficial, noviembre 10, 1977, Normas sobre adquisición, administración y disposición de bienes del Estado, Título I
Sector: All Sectors
Sub-sector:
Industry Classification:
Type of Reservation: National Treatment (Article 10.3) Senior Management and Boards of Directors (Article 10.8)
Description: Investment
Chile, when selling or disposing of its equity interests in, or the assets of, an existing state enterprise or an existing governmental entity, may prohibit or impose limitations on the ownership of such interests or assets, and on the ability of owners of such interests or assets to control any resulting enterprise, by investors of Korea or of a non-Party or their investments. With respect to such a sale or other disposition, Chile may adopt or maintain any measure relating to the nationality of senior management or members of the board of directors.
For purposes of this reservation:
(a) any measure maintained or adopted after the date of entry into force of this Agreement that, at the time of sale or other disposition, prohibits or imposes limitations on the ownership of equity interests or assets or imposes nationality requirements described in this reservation shall be deemed to be an existing measure; and
(b) "state enterprise" means an enterprise owned or controlled through ownership interests by Chile and includes an enterprise established after the date of entry into force of this Agreement solely for the purposes of selling or disposing of equity interests in, or the assets of, an existing state enterprise or governmental entity.
Sector: Communications
Sub-sector: Local basic telecommunication services and networks; one way satellite broadcasting of digital telecommunication services, whether these involve direct home television broadcasting, direct broadcasting of television services and direct audio broadcasting; supplementary telecommunication services, and limited telecommunication services
Industry Classification:
Type of Reservation: National Treatment (Article 11.3) Local Presence (Article 11.4)
Description: Cross-Border Trade in Services
Chile reserves the right to adopt or maintain any measure related to cross-border trade in local basic telecommunication services and networks; one way satellite broadcasting of digital telecommunication services, whether these involve direct home television broadcasting, direct broadcasting of television services and direct audio broadcasting; supplementary telecommunication services, and limited telecommunication services.
Existing Measure: Ley 18.168, Diario Oficial, octubre 2, 1982, Ley General de Telecomunicaciones, Títulos I, II, III, V y VI
Sector: Communications
Sub-sector: Local basic telecommunication services and networks; one way satellite broadcasting of digital telecommunication services, whether these involve direct home television broadcasting, direct broadcasting of television services and direct audio broadcasting; supplementary telecommunication services, and limited telecommunication services
Industry Classification:
Type of Reservation: National Treatment (Articles 10.3) Performance Requirements (Article 10.7) Senior Management and Boards of Directors (Article 10.8)
Description: Investment
Chile reserves the right to adopt or maintain any measure related to the investors or to the investments of investors of the other Party in local basic telecommunication services and networks; one way satellite broadcasting of digital telecommunication services, whether these involve direct home television broadcasting, direct broadcasting of television services and direct audio broadcasting; supplementary telecommunication services, and limited telecommunication services.
Existing Measure: Ley 18.168, Diario Oficial, octubre 2, 1982, Ley General de Telecomunicaciones, Títulos I, II, III, V y VI
Sector: Construction Services
Sub-sector:
Industry Classification: CPC 51 Construction Works CPC 52 Constructions
Type of Reservation: National Treatment (Article 11.3) Local Presence (Article 11.4)
Description: Cross-Border Trade in Services
Chile reserves the right to adopt or maintain any measure with respect to the provision of construction services rendered by foreign juridical persons or legal entities, imposing requirements of residence, registration and/or any other form of local presence, or imposing the obligation of giving financial security for work as a condition for the provision of construction services.
Existing Measures:
Sector: Education
Sub-sector:
Industry Classification: CPC 92 Education Services
Type of Reservation: National Treatment (Article 11.3) Local Presence (Article 11.4)
Description: Cross-Border Trade in Services
Chile reserves the right to adopt or maintain any measure relating to natural persons who render educational services, including teachers and ancillary personnel rendering educational services in elementary education, kindergarten, preschool, special education, primary and high school education, higher education, professional, technical, and university education, including educational establishments of any kind as well as sponsors of educational establishments, schools, lyceums, academies, training centres, professional and technical institutes, and/or universities.
This reservation does not apply to the provision of services related to second language training, corporate, business and industrial training, and skill upgrading which includes consulting services, relating to technical support and advice and curriculum and program development in education.
Existing Measures:
Sector: Environmental Services
Sub-sector:
Industry Classification: CPC 94 Sewage and Refuse Disposal, Sanitation and Other Environmental Protection Services
Type of Reservation: National Treatment (Article 11.3) Local Presence (Article 11.4)
Description: Cross-Border Trade in Services
Chile reserves the right to adopt or maintain any measure imposing the requirement that the production and distribution of potable water, and the collection and disposal of waste water, sanitation services such as sewage, waste disposal and waste water treatment can only be provided by Chilean juridical persons.
This reservation does not apply to consultancy services contracted by Chilean juridical persons.
Existing Measures:
Sector: Fisheries
Sub-sector: Fishing-Related Activities
Industry Classification: CPC 882 Services Incidental to Fishing CPC 04 Fish and Other Fishing Products
Type of Reservation: National Treatment (Articles 10.3, 11.3)
Description: Cross-Border Trade in Services and Investment
Chile retains the right to control the activities of foreign fishing, including fish landings, the first landing of fish processed at sea, and access to Chilean ports (port privileges).
Chile reserves the right to control the use of beaches, lands adjacent to beaches (terrenos de playas), water-columns (porciones de aguas) and sea- bed lots (fondos marinos) for the issuance of maritime concessions. For greater certainty, “maritime concessions” does not include aquaculture.
Existing Measures: Decreto Ley 2.222, Diario Oficial, mayo 31, 1978, Ley de Navegación, Títulos I, II, III, IV y V
Decreto con Fuerza de Ley 340, Diario Oficial, abril 6, 1960, sobre Concesiones Marítimas
Decreto Supremo 660, Diario Oficial, noviembre 28, 1988, Reglamento de Concesiones Marítimas
Sector: Government Finances
Sub-sector: Securities
Industry Classification: CPC 91112 Administrative Services of GovernmentFinancial and Fiscal Services
Type of Reservation: National Treatment (Article 10.3)
Description: Investment
Chile reserves the right to adopt or maintain any measure relating to the acquisition, sale or other disposition by nationals of Korea, of bonds, treasury bills or other kinds of debt securities issued by the Central Bank or Government of Chile.
Sector: Minority Affairs
Sub-sector:
Industry Classification:
Type of Reservation: National Treatment (Articles 10.3, 11.3) Local Presence (Article 11.4) Performance Requirements (Article 10.7) Senior Management and Boards of Directors (Article 10.8)
Description: Cross-Border Trade in Services and Investment
Chile reserves the right to adopt or maintain any measure according rights or preferences to socially or economically disadvantaged minorities.
Sector: Professional, Technical and Specialized Services
Sub-sector:
Industry Classification:
Type of Reservation: National Treatment (Article 10.3, 11.3) Local Presence (Article 11.4)
Description: Cross-Border Trade in Services and Investment
Where Korea, at a central or regional level, maintains a measure regarding citizenship, permanent residency or local presence in a sector, Chile reserves the right to adopt or maintain an equivalent measure with respect to such service providers in the same sector and for the same period of time as Korea, at a central or regional level, maintains the measure.
Existing Measures: