[88] Except for consulting services, the horizontal limitation on public utilities applies.
[89] Therapeutical massages and thermal cure services are to be found under 6.A.h) Medical and Dental services, 6.A.j) 2. Services provided by Nurses,Physiotherapists and Paramedical personnel, and Health Services (13.A and 13.C).
[90] The horizontal limitation on public utilities applies to spa services and non-therapeutical massages provided in domains of public utility such as certain water sources.
ANNEX 7-A-4. KOREA. SCHEDULE OF SPECIFIC COMMITMENTS IN CONFORMITY WITH ARTICLES 7.7, 7.13, 7.18 AND 7.19
B. Schedule of Specific Commitments in Establishment [2]
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 EU Party 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 [3].
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, No 4, ISIC 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 licence, 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 if not 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 access | Limitations on national treatment |
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 Foreigner’s Land Acquisition Act or is a branch of a foreign juridical person, subject to approval or notification in accordance with the Foreigner’s 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 [4] [5]. A foreigner who intends to make a foreign direct investment shall, in advance, make report to the Minister of Knowledge Economy in accordance with the Ordinance of the Minister of Knowledge Economy. 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 defence industry. Foreign investors who intend to acquire the outstanding shares of defence industry other than the newly issued ones shall obtain a prior permission from the Minister of Knowledge Economy. |
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 [6] |
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 [7] 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 ) [8] | None | None |
(i)Manufacture of coke oven products(ISIC rev 3.1: 231) | None | None |
(j)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) | None | None |
b)Manufacturing of other chemical products(ISIC rev 3.1: 242) | None | None |
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) | None | None |
b)Manufacture of special purpose machinery other than weapons and munitions(ISIC rev 3.1: 2921, 2922, 2923, 2924, 2925, 2926, 2929) | None | None |
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 | The aggregate foreign share of KEPCO’s issued stocks may not exceed 40 percent. A foreign person may not become the largest shareholder of KEPCO. |
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 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 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 |
[1] A place where people go to study.
[2] The limitations on key personnel, graduate trainees and business services sellers, inscribed in "1. Horizontal Commitments" of the Schedule of Specific Commitments in Services Sectors, are also applied to the Schedule of Specific Commitments in Establishment, where relevant.
[3] For the purposes of this paragraph, treatment provided under Article 7.12 is no less favourable than that committed in free trade agreements to which Korea is a party and which will enter into force after the signature of this Agreement.
[4] This reservation does not apply to former private enterprises that are owned by the state as a result of corporate reorganisation processes.
[5] For purposes of this reservation, "state enterprise" shall include any enterprise created for the sole purpose of selling or disposing of equity interests or assets of other state enterprises or governmental authorities.
[6] The measures for companies employing disadvantaged groups are applied in a non-discriminatory way.
[7] "Petroleum" includes natural pitch and inflammable natural gas.
[8] Publishing and printing on a fee or contract basis is to be found in BUSINESS SERVICES under Other Business Services. r).
ANNEX 13. COOPERATION ON TRADE AND SUSTAINABLE DEVELOPMENT
1. In order to promote the achievement of the objectives of Chapter Thirteen and to assist in the fulfilment of their obligations pursuant to it, the Parties have established the following indicative list of areas of cooperation:
(a) exchange of views on the positive and negative impacts of this Agreement on sustainable development and ways to enhance, prevent or mitigate them, taking into account sustainability impact assessments carried out by the Parties;
(b) cooperation in international fora responsible for social or environmental aspects of trade and sustainable development, including in particular the WTO, the ILO, the United Nations Environment Programme and multi-lateral environmental agreements;
(c) cooperation with a view to promoting the ratification of fundamental and other ILO Conventions and multilateral environmental agreements with an impact on trade;
(d) exchange of information and cooperation on corporate social responsibility and accountability, including on the effective implementation and follow-up of internationally agreed guidelines, fair and ethical trade, private and public certification and labelling schemes including eco-labelling and green public procurement;
(e) exchange of views on the trade impact of environmental regulations, norms and standards;
(f) cooperation on trade-related aspects of the current and future international climate change regime, including issues relating to global carbon markets, ways to address adverse effects of trade on climate, as well as means to promote low-carbon technologies and energy efficiency;
(g) cooperation on trade-related aspects of biodiversity including in relation to biofuels;
(h) cooperation on trade-related measures to promote sustainable fishing practices;
(i) cooperation on trade-related measures to tackle the deforestation including by addressing problems regarding illegal logging;
(j) cooperation on trade related aspects of multilateral environmental agreements, including customs cooperation;
(k) cooperation on trade-related aspects of the ILO Decent Work Agenda, including on the interlinkages between trade and full and productive employment, labour market adjustment, core labour standards, labour statistics, human resources development and life-long learning, social protection and social inclusion, social dialogue and gender equality;
(l) exchange of views on the relationship between multilateral environmental agreements and international trade rules; or
(m) other forms of environmental cooperation as the Parties may deem appropriate.
2. The Parties agree that it would be desirable if cooperative activities developed by them could have as broad an application and benefit as possible.
ANNEX 14-A. MEDIATION MECHANISM FOR NON-TARIFF MEASURES
1. Objective
The objective of this Annex is to facilitate the finding of a mutually agreed solution to non-tariff measures adversely affecting trade between the Parties through a comprehensive and expeditious procedure with the assistance of a mediator.
2. Scope
The mediation mechanism shall apply to any measure, other than customs duties, which a Party believes adversely affects trade between the Parties and which is related to any matter falling under market access in goods (1) including under Chapter Two (National Treatment and Market Access for Goods) and the Annexes pertaining thereto.
Section A. PROCEDURE UNDER THE MEDIATION MECHANISM
3. Initiation of the Mediation Procedure
1. A Party may request, at any time, that the other Party enter into a mediation procedure. Such request shall be addressed to the other Party in writing. The request shall be sufficiently detailed to present clearly the concerns of the requesting Party and shall:
(a) identify the specific measure at issue;
(b) provide a statement of the alleged adverse effects that the requesting Party believes the measure has on trade between the Parties; and
(c) explain how the requesting Party considers that those trade effects are linked to the measure.
2. The Party to which such request is addressed shall favourably consider the request and provide a written reply to the request within 15 days of its receipt.
4. Selection of Mediator
1. Upon launch of the mediation procedure, the Parties are encouraged to agree on a mediator no later than 15 days after the receipt of the reply to the request. If the Parties cannot agree on the mediator within the established time frame, either Party may request appointment of the mediator by lot. Within five days of the submission of the request, each Party shall establish a list of at least three persons who are not nationals of that Party, fulfil the conditions of paragraph 2 and may act as mediator. Within five days of submission of the list, each Party shall select at least one name from the other Partyâs list. The chair of the Trade Committee or the chair's delegate shall then select the mediator by lot among the selected names. The selection by lot shall be made in the presence of representatives of the Parties and within 15 days of the submission of the request for appointment by lot.
2. The mediator shall be an expert on the subject matter to which the measure in question relates (1). The mediator shall assist, in an impartial and transparent manner, the Parties in bringing clarity to the measure and its possible trade effects, and in reaching a mutually agreed solution.
5. Rules of the Mediation Procedure
1. In the initial stage of the procedure, within 10 days of the appointment of the mediator, the Party having launched the mediation procedure shall present, in writing, a detailed description of the problem to the mediator and to the other Party, in particular of the operation of the measure at issue and its trade effects. Within 20 days of the date of delivery of this submission, the other Party may provide, in writing, its comments to the description of the problem. Either Party may include in its description or comments any information that it deems relevant.
2. The mediator may decide on the most appropriate way of conducting the initial stage, in particular whether to consult the Parties jointly or individually, seek the assistance of or consult with relevant experts and stakeholders.
3. Following the initial stage, the mediator may provide an advisory opinion and propose a solution for the Parties' consideration. In any such opinion, the mediator shall not consider whether the measure at issue is consistent or not with this Agreement; nor shall the mediator question the legitimacy of the policy objectives of the measure. The mediator may meet individually or jointly with the Parties in order to facilitate a mutually agreed solution. This stage of the procedure shall normally be completed within 60 days of the date of the appointment of the mediator.
4. The procedure shall be confidential and shall take place in the territory of the Party to which the request was addressed, or by a mutual agreement in any other location or by any other means.
5. The procedure shall be terminated:
(a) by the signature of a settlement agreement by the Parties, on the date of that signature;
(b) by a mutual agreement of the Parties at any stage of the procedure, on the date of that agreement;
{c) by a written declaration of the mediator, after consultation with the Parties, that further efforts at mediation are no longer justified; or
(d) by a written declaration of a Party after exploring mutually agreed solutions under the mediation n procedure and after having considered any advisory opinions and proposals by the mediator.
Section B. IMPLEMENTATION
6. Implementation of a Mutually Agreed Solution
1. Where the Parties have agreed to a solution, each Party shall take any measure necessary to implement the mutually agreed solution without undue delay.
2. The implementing Party shall inform the other Party in writing of any steps or measures taken to implement the mutually agreed solution.
Section C. GENERAL PROVISIONS
7. Relationship to Dispute Settlement
1. The procedure under this mediation mechanism is not intended to serve as a basis for dispute settlement procedures under this Agreement or another agreement. A Party shall not rely on or introduce as evidence in such dispute settlement procedures:
{a) positions taken by the other Party in the course of the mediation procedure;
{b) the fact that the other Party has indicated its willingness to accept a solution to the non-tariff measure subject to mediation; or
{c) proposals made by the mediator.
2. The mediation mechanism is without prejudice to the Parties' rights and obligations under Chapter Fourteen (Dispute Settlement).
8. Time Limits
Any time limit referred to in this Annex may be extended by mutual agreement of the Parties.
9. Costs
1. Each Party shall bear its own expenses derived from the participation in the mediation procedure.
2. The Parties shall share the expenses derived from organisational matters, including the expenses of the mediator.
10. Review
1. The Parties agree that any matter not falling within the scope defined in Article 14.2 shall become subject to the mediation mechanism if WTO Members agree on the establishment of a corresponding mechanism (1) that covers such matter. The extension of the scope of application shall be as from the date of application of the latter agreement. This shall also apply to any further extensions of the scope of application of the WTO corresponding mechanism.
2. Five years after the entry into force of this Agreement, the Parties shall consult each other on the need to modify the mediation mechanism in light of the experience gained and the development of a corresponding mechanism in the WTO.
ANNEX 14-B. RULES OF PROCEDURE FOR ARBITRATION
1. General Provisions
1. For the purposes of Chapter Fourteen and this Annex:
adviser means a person retained by a Party to advise or assist that Party in connection with the arbitration panel proceeding;