11.
Sector : Financial Services Subsector : Insurance and Insurance-related Services Industry Classification : - Type of Obligation : National Treatment (Article 8.4) Market Access (Article 8.5) Description : Trade in Services Japan reserves the right to adopt or maintain any measure with respect to trade in services as defined in subparagraphs (r)(i) and (ii) of Article 8.1 (Definitions) for insurance and insurance-related services, other than the following services supplied by a financial service supplier of another Party established in that other Party: (a) insurance of risks relating to: (i) maritime shipping and commercial aviation and space launching and freight (including satellites), with such insurance to cover any or all of the following: the goods being transported, the vehicle transporting the goods and any liability arising therefrom; and (ii) goods in international transit; (b) reinsurance, retrocession and the services auxiliary to insurance as referred to in subparagraphs (b)(ii) and (iv) of Article 1 (Definition) of Annex 8A (Financial Services); and (c) insurance intermediation, such as brokerage and agency as referred to in subparagraph (b)(iii) of Article 1 (Definitions) of Annex 8A (Financial Services), of insurance risks related to services listed in subparagraphs (a) and (b) of this entry.(22) Existing Measures : Insurance Business Law (Law No. 105 of 1995), Articles 185, 186, 275 through 277, 286, and 287 Cabinet Order for Enforcement of Insurance Business Law (Cabinet Order No. 425 of 1995), Articles 19 and 39-2 Ministerial Ordinance for Enforcement of Insurance Business Law (Ministerial Ordinance of the Ministry of Finance No. 5 of 1996), Articles 116 and 212-6
12.
Sector : Fisheries and Services Incidental to Fisheries Subsector : Fisheries within the Territorial Sea, Internal Waters, Exclusive Economic Zone, and Continental Shelf Industry Classification : JSIC 031 Marine fisheries JSIC 032 Inland water fisheries JSIC 041 Marine aquaculture JSIC 042 Inland water aquaculture JSIC 8093 Recreational fishing guide business Type of Obligation : National Treatment (Articles 8.4 and 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Articles 8.6 and 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Japan reserves the right to adopt or maintain any measure relating to investment or the supply of services in fisheries in the territorial sea, internal waters, exclusive economic zone, and continental shelf of Japan.(23) Existing Measures : Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27 Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3 Law for Regulation of Fishing Operation by Foreign Nationals (Law No. 60 of 1967), Articles 3, 4, and 6 Law Concerning the Exercise of Sovereign Rights Concerning Fisheries in the Exclusive Economic Zones (Law No. 76 of 1996), Articles 4, 5, 7 through 12, and 14
13.
Sector : Information and Communications Subsector : Broadcasting Industry Industry Classification : JSIC 380 Establishments engaged in administrative or ancillary economic activities JSIC 381 Public broadcasting, except cablecasting JSIC 382 Private-sector broadcasting, except cablecasting JSIC 383 Cablecasting Type of Obligation : National Treatment (Articles 8.4 and 10.3) Market Access (Article 8.5) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Japan reserves the right to adopt or maintain any measure relating to investment or the supply of services in broadcasting industry. (24) Existing Measures : Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27 Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3 Radio Law (Law No. 131 of 1950), Chapter 2 Broadcast Law (Law No. 132 of 1950), Chapters 2, and 5 through 8
14.
Sector : Land Transaction Subsector : - Industry Classification : - Type of Obligation : National Treatment (Articles 8.4 and 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Articles 8.6 and 10.4) Description : Trade in Services and Investment With respect to the acquisition or lease of land properties in Japan, prohibitions or restrictions may be imposed. Existing Measures : Alien Land Law (Law No. 42 of 1925)
15.
Sector : Public Law Enforcement and Correctional Services and Social Services Subsector : - Industry Classification : - Type of Obligation : National Treatment (Articles 8.4 and 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Articles 8.6 and 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Japan reserves the right to adopt or maintain any measure relating to investment or the supply of services in public law enforcement and correctional services, and in social services such as income security or insurance, social security or insurance, social welfare, public training, health, child care, and public housing. Existing Measures : -
16.
Sector : Security Guard Services Subsector : - Industry Classification : JSIC 923 Guard services Type of Obligation : National Treatment (Article 8.4) Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services Japan reserves the right to adopt or maintain any measure relating to the supply of security guard services. Existing Measures : Security Business Law (Law No. 117 of 1972), Articles 4 and 5
17.
Sector : Transport Subsector : Air Transport Industry Classification : - Type of Obligation : National Treatment (Articles 8.4 and 10.3) Market Access (Article 8.5) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Japan reserves the right to adopt or maintain any measure with respect to investment or the supply of services in airports or airport operation services. (25) Existing Measures : -
18.
Sector : All Sectors Subsector : - Industry Classification : - Type of Obligation : National Treatment (Articles 8.4 and 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Articles 8.6 and 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Japan reserves the right to adopt or maintain any measure relating to investment or the supply of services in the territorial sea, internal waters, exclusive economic zone, and continental shelf of Japan. Existing Measures : -
19.
Sector : All Sectors Subsector : - Industry Classification : - Type of Obligation : Most-Favoured-Nation Treatment (Article 8.6) Description : Trade in Services Japan reserves the right to adopt or maintain any measure with respect to the supply of the services through the mode of supply referred to in subparagraph (r)(iv) of Article 8.1 (Definitions). Existing Measures : -
20.
Sector : Financial Services Subsector : - Industry Classification : - Type of Obligation : National Treatment (Article 8.4) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6) Description : Trade in Services Japan reserves the right to adopt or maintain any measure with respect to the supply of the financial services through the mode of supply referred to in subparagraph (r)(iv) of Article 8.1 (Definitions). Existing Measures : -
21.
Sector : Audio-Visual Services Subsector : - Industry Classification : - Type of Obligation : National Treatment (Article 8.4) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6) Local Presence (Article 8.11) Description : Trade in Services Japan reserves the right to adopt or maintain any measure with respect to the supply of audio-visual post production services. Existing Measures : -
22.
Sector : Private Households with Employed Natural Persons Subsector : - Industry Classification : JSIC 792 Domestic services Type of Obligation : National Treatment (Article 8.4) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6) Local Presence (Article 8.11) Description : Trade in Services Japan reserves the right to adopt or maintain any measure with respect to the supply of private households with employed natural persons services not related to nursing. Existing Measures : -
23.
Sector : Telemarketing Services Subsector : - Industry Classification : - Type of Obligation : National Treatment (Article 8.4) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6) Local Presence (Article 8.11) Description : Trade in Services Japan reserves the right to adopt or maintain any measure with respect to the supply of telemarketing services. Existing Measures : -
24.
Sector : Transport Subsector : Air Transport Industry Classification : - Type of Obligation : National Treatment (Articles 8.4 and 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Articles 8.6 and 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Japan reserves the right to adopt or maintain any measure under any bilateral or multilateral agreement involving aviation. Existing Measures : -
Korea
List A. Explanatory Notes
1. This List sets out, pursuant to Article 8.8 (Schedules of Non-Conforming Measures) and Article 10.8 (Reservations and Non-Conforming Measures), Korea’s existing measures that are not subject to some or all of the obligations imposed by:
(a) Article 8.4 (National Treatment) or 10.3 (National Treatment);
(b) Article 8.5 (Market Access);
(c) Article 8.6 (Most-Favoured-Nation Treatment) or 10.4 (Most-Favoured-Nation Treatment);
(d) Article 8.11 (Local Presence);
(e) Article 10.6 (Prohibition of Performance Requirements); or
(f) Article 10.7 (Senior Management and Board of Directors).
2. Each List entry sets out the following elements:
(a) Sector refers to the sector for which the entry is made;
(b) Level of Government (1) indicates the level of government maintaining the listed measures;
(c) Obligations Concerned specifies the Articles referred to in paragraph 1 that, pursuant to subparagraph 1(a) of Article 8.8 (Schedules of Non-Conforming Measures) and subparagraph 1(a) of Article 10.8 (Reservations and Non-Conforming Measures), do not apply to the non-conforming aspects of the law, regulation, or other measure, as set out in paragraph 3;
(d) Description sets out commitments, if any, for liberalisation on the date of entry into force of this Agreement, and the remaining non-conforming aspects of the measure for which the entry is made; and
(e) Measures (2) identify the laws, regulations, or other measures for which the entry is made. A measure cited in the Measures element:
(i) means the measure as amended, continued, or renewed as of the date of entry into force of this Agreement; and
(ii) includes any subordinate measure adopted or maintained under the authority of and consistent with the measure.
3. In the interpretation of a List entry, all elements of the entry shall be considered. An entry shall be interpreted in light of the relevant articles of the Chapters against which the entry is made. To the extent that:
(a) the Measures element is qualified by a liberalisation commitment from the Description element, the Measures element as so qualified shall prevail over all other elements; and
(b) the Measures element is not so qualified, the Measures element shall prevail over all other elements, unless any discrepancy between the Measures element and the other elements considered in their totality is so substantial and material that it would be unreasonable to conclude that the Measures element should prevail, in which case the other elements shall prevail to the extent of that discrepancy.
4. In accordance with subparagraph 1(a) of Article 8.8 (Schedules of Non-Conforming Measures) and subparagraph 1(a) of Article 10.8 (Reservations and Non-Conforming Measures), and subject to subparagraph 1(c) of Article 8.8 (Schedules of Non-Conforming Measures) and subparagraph 1(c) of Article 10.8 (Reservations and Non-Conforming Measures), the Articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the non-conforming aspects of the law, regulation, or other measure identified in the Measures element of that entry.
5. Where Korea maintains a measure that requires that a service provider be a citizen, permanent resident, or resident of its territory as a condition to the provision of a service in its territory, a List entry for that measure taken with respect to Article 8.4 (National Treatment), Article 8.6 (Most-Favoured-Nation Treatment), or Article 8.11 (Local Presence) shall operate as a List entry with respect to Article 10.3 (National Treatment), Article 10.4 (Most-Favoured-Nation Treatment), or Article 10.6 (Prohibition of Performance Requirements) to the extent of that measure.
6. For Korea, a foreign person means a foreign national or an enterprise organised under the laws of another country.
7. For greater certainty, Article 8.11 (Local Presence) and Article 8.4 (National Treatment) are separate disciplines and a measure that is only inconsistent with Article 8.11 (Local Presence) need not be reserved against Article 8.4 (National Treatment).
1.
Sector : Construction Services Level of Government Central Obligation Concerned : Local Presence (Article 8.11) Description : Trade in Services A person that supplies construction services in Korea must, prior to the signing of the first contract related to such services, establish an office in Korea. Measure : Framework Act on the Construction Industry (Law No. 17453, 9 June 2020) Articles 9 and 10 Enforcement Decree of the Framework Act on the Construction Industry (Presidential Decree No. 30509, 3 March 2020) Article 13 Enforcement Regulations of the Framework Act on the Construction Industry (Ordinance of the Ministry of Land, Infrastructure and Transport No. 704, 2 March 2020) Article 2 Information and Communication Construction Business Act (Law No. 17359, 9 June 2020) Article 14 Fire Fighting System Installation Business Act (Law No. 17378, 9 June 2020) Articles 4 and 5 Enforcement Decree of the Fire Fighting System Installation Business Act (Presidential Decree No. 30237, 10 December 2019) Article 2 (Table 1) Enforcement Regulations of the Fire Fighting System Installation Business Act (Ordinance of the Ministry of the Interior and Safety, No.156, 15 January 2020) Article 2
2.
Sector : Leasing, Rental, Maintenance, Repair, Sales, and Disposal Services Related to Construction Machinery and Equipment Level of Government Central Obligation Concerned : Local Presence (Article 8.11) Description : Trade in Services A person that supplies leasing, rental, maintenance, repair, sales, and disposal services related to construction machinery and equipment must establish an office in Korea. Measure : Construction Machinery Management Act (Law No. 17453, 9 June 2020) Article 21 Enforcement Decree of the Construction Machinery Management Act (Presidential Decree No. 30798, 23 June 2020) Articles 13, 14, 15, and 15-2 Enforcement Regulations of the Construction Machinery Management Act (Ordinance of the Ministry of Land, Infrastructure and Transport No. 745, 1 July 2020) Articles 57 through 63, 65-2, and 65-3
3.
Sector : Transportation Services - Automobile Maintenance, Repair, Sales, Disposal, and Inspection Services; Automobile Licence Plate Issuing Services Level of Government Central Obligation Concerned : Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services A person that supplies automobile management services (which includes used car sales, maintenance, repair, and disposal services) must establish an office in Korea and obtain authorisation from the head of the si/gun/gu (municipal authorities), which is subject to an economic needs test, as appropriate. A person that supplies automobile inspection services that is designated as a “designated repair facility” must establish an office in Korea. A person that supplies licence plate manufacturing, delivery, and seal services that is designated as a “licence plate issuing agency” must establish an office in Korea. Measure : Automobile Management Act (Law No. 17235, 7 April 2020) Articles 20, 44, 45, and 53 Enforcement Regulations of the Automobile Management Act (Ordinance of the Ministry of Land, Infrastructure and Transport No. 744, 26 June 2020) Articles 7, 8, 83, 87, and 111 Rule on Enforcement of Comprehensive Inspection of Automobiles, Etc. (Ordinance of the Ministry of Land, Infrastructure and Transport No.749, 22 July 2020, Ordinance of the Ministry of Environment No.878, 22 July 2020), Article 16
4.
Sector : Distribution Services - Wholesale and Retail Distribution of Tobacco and Liquor Level of Government Central Obligation Concerned : Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services A person that supplies tobacco wholesale (including importation) or retail distribution services must establish an office in Korea. Only designated tobacco retailers may sell tobacco to retail buyers. The sale of tobacco to retail buyers by mail or in electronic commerce is prohibited. The distance between places of business of tobacco retailers must be at least 50 metres. A person that supplies liquor wholesale distribution services must establish an office in Korea and obtain authorisation from the head of the relevant tax office, which is subject to an economic needs test. The sale of liquor by telephone or in electronic commerce is prohibited. Measure : Tobacco Business Act (Law No. 17142, 31 March 2020) Articles 12, 13, and 16 Enforcement Decree of the Tobacco Business Act (Presidential Decree No. 30509, 3 March 2020) Articles 4 and 5 Enforcement Regulations of the Tobacco Business Act (Ordinance of the Ministry of Economy and Finance No. 796, 24 June 2020) Articles 5, 7, and 7-3 Liquors Act (Law No. 16847, 31 December 2019) Articles 8 through 10 Enforcement Decree of the Liquors Act (Presidential Decree No. 30392, 11 February 2020) Article 9 Notice of National Tax Service, 2020-17 (1 July 2020) and 2019-11 (4 April 2019)
5.
Sector : Agriculture and Livestock Level of Government Central Obligation Concerned : National Treatment (Article 10.3) Description : Investment Foreign persons may not: (i) invest in an enterprise engaged in rice or barley farming; or (ii) hold 50 per cent or more of the equity interest of an enterprise engaged in beef cattle farming. Measure : Foreign Investment Promotion Act (Law No. 16859, 31 December 2019) Article 4 Enforcement Decree of the Foreign Investment Promotion Act (Presidential Decree No. 30586, 31 March 2020) Article 5 Regulations on Foreign Investment (Notice of the Ministry of Trade, Industry, and Energy, No.2018-137, 6 July 2018) Attached Table 1 and 2
6.
Sector : Business Services - an-gyung-sa (Optician and Optometry) Services Level of Government Central Obligation Concerned : Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services Only a natural person that is a licensed an-gyung-sa (optician or optometrist) that has established an office in Korea may engage in optician or optometry services. An an-gyung-sa (optician or optometrist) may not establish more than one office. Measure : Medical Technicians Act (Law No. 17211, 7 April 2020) Article 12 Enforcement Regulations of the Medical Technicians Act (Ordinance of the Ministry of Health and Welfare No. 672, 27 September 2019) Article 15
7.
Sector : Wholesale and Retail Distribution Services Level of Government Central Obligation Concerned : Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services A person that supplies wholesale trade services must establish an office in Korea in order to receive an import business licence to supply such services with respect to: (a) pharmaceuticals and related items; (b) medical devices; or (c) functional foods (including dietary supplements). To supply the following services a person must establish an office in Korea: (a) transportation, sales, and preservation (cold storage) of food and food additives; (b) food supply services; (c) food inspection services; (d) narcotic drug wholesale and retail distribution services; or (e) cosmetics (including functional cosmetics) supply services. The Minister of Health and Welfare controls the supply and demand of the wholesale distribution of imported designated han-yak-jae (Asian medicinal herbs). Certain liquor-selling bars and the wholesale and retail distribution of narcotics require authorisation by the relevant authority. A person that supplies wholesaling or retailing services for used cars must establish an office in Korea and obtain authorisation from the head of the si/gun/gu (municipal authorities), which is subject to an economic need test, as appropriate. Measure : Pharmaceutical Affairs Act (Law No. 17208, 7 April 2020) Articles 42 and 45 Enforcement Decree of the Pharmaceutical Affairs Act (Presidential Decree No. 30545, 24 March 2020) Article 31-2 Decree on the Facility Standards of Manufacturer and Importer of Pharmaceuticals (Presidential Decree No. 24479, 23 March 2013) Article 6 Supply, Demand and Distribution of Oriental Medicinal Herbs Regulations (Notice of the Ministry of Health and Welfare No. 2015-210, 9 December 2015) Articles 4 and 12. Medical Devices Act (Law No. 17091, 24 March 2020) Article 15 Enforcement Regulations of the Medical Devices Act (Ordinance of Prime Minister No. 1617, 29 May 2020) Articles 29 and 31 Health Functional Foods Act (Law No. 16715, 3 December 2019) Article 6 Enforcement Regulations of the Health Functional Foods Act (Ordinance of the Prime Minister No. 1619, 4 June 2020) Articles 2 and 5 Food Sanitation Act (Law No. 17091, 24 March 2020) Articles 36 and 37 Enforcement Decree of the Food Sanitation Act (Presidential Decree No. 30545, 24 March 2020) Articles 23 and 24 Enforcement Regulations of the Food Sanitation Act (Ordinance of the Prime Minister No. 1610, 13 April 2020) Article 36 (Attached Table 14) Livestock Products Sanitary Control Act (Law No. 17091, 24 March 2020) Articles 21, 22 and 24 Enforcement Decree of the Livestock Products Sanitary Control Act (Presidential Decree No.30545, 24 March 2020) Articles 21 and 22 Enforcement Regulations of the Livestock Products Sanitary Control Act (Ordinance of the Prime Minister No. 1611, 16 April 2020), Article 29 (Attached Table 10) Special Act on Imported Food Safety Management (Law No. 16716, 3 December 2019) Articles 14 and 15 Enforcement Decree of the Special Act on Imported Food Safety Management (Presidential Decree No. 29763, 14 May 2019) Article 2 Enforcement Regulations of the Special Act on Imported Food Safe Management (Ordinance of the Prime Minister No. 1618, 3 June 2020) Article 15 Testing and Inspection of Food and Drugs Act (Law No. 15942, 11 December 2018) Article 6 Enforcement Regulations of the Testing and Inspection of Food and Drugs Act (Ordinance of the Prime Minister No. 1547, 19 June 2019) Article 2 Act on the Control of Narcotics (Law No. 16714, 3 December 2019) Articles 6 and 6-2 Cosmetics Act (Law No. 17250, 7 April 2020) Article 3 Enforcement Regulations of the Cosmetics Act (Ordinance of the Prime Minister No. 1627, 30 June 2020) Article 4 Motor Vehicle Management Act (Law No. 17235, 7 April 2020) Article 53 Enforcement Regulations of the Motor Vehicle Management Act (Ordinance of the Minister of Land, Infrastructure, and Transport No. 744, 26 June 2020) Article 111
8.
Sector : Retail Distribution of Pharmaceuticals Level of Government Central Obligation Concerned : Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services A person that supplies pharmaceutical product retail distribution services (including distribution of han-yak-jae (Asian medicinal herbs)) must establish a pharmacy in Korea. That person may not establish more than one pharmacy nor establish in the form of a corporation. Measure : Pharmaceutical Affairs Act (Law No. 17208, 7 April 2020) Articles 20 and 21 Enforcement Decree on the Pharmaceutical Affairs Act (Presidential Decree No. 30545, 24 March 2020) Article 22-2
9.
Sector : Transportation Services - Rail Transportation and Incidental Services Level of Government Central Obligation Concerned : National Treatment (Article 8.4) Market Access (Article 8.5) Description : Trade in Services The existing regulation broadly states that only juridical persons that have obtained authorisation from the Minister of Land, Infrastructure and Transport may supply railroad transportation services. In practice, however, only juridical persons of Korean nationality (of which shares are 100 per cent owned by the shareholders with Korean nationality) established by a Korean national may supply railroad transportation services on railroad routes constructed on or before 30 June 2005. Only juridical persons that have obtained authorisation from the Minister of Construction and Transportation may supply railroad transportation services on railroad routes constructed on or after 1 July 2005. Such authorisation is subject to an economic needs test. In case that a person who operates a rail transport service business concludes or revises a contract for joint venture or agreement related to transport, he or she must obtain relevant authorisation from the Minister of Land, Infrastructure, and Transport. Only the central or local level of government, or the Korea Rail Network Authority may supply rail construction services and maintain and repair government-owned rail facilities (including high-speed rail). However, juridical persons that meet the criteria in the Private Investment in Social Infrastructure Act may supply rail construction services. Measure : Railroad Service Act (Law No. 16637, 26 November 2019) Articles 5, 6, and 12 Korea Railroad Corporation Act (Law No. 15460, 13 March 2018) Article 9 Act on the Construction of Railroad and the Maintenance of Railroad Facilities (Law No. 17453, 9 June 2020) Article 8 Framework Act on Rail Industry Development (Law No. 17453, 9 June 2020) Articles 3, 20, 26, and 38 Korea Rail Network Authority Act (Law No. 16641, 26 November 2019) Article 7
10.
Sector : Transportation Services - International Maritime Cargo Transportation and Maritime Auxiliary Services Level of Government Central Obligation Concerned : National Treatment (Article 8.4) Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services A person that supplies international maritime cargo transportation must be organised as a company in Korea as stipulated under the Korean Commercial Act. A ship investment company must also be organised as a Chusik Hoesa (stock company) in Korea. A person that engages in shipping brokerage services, maritime agency services and vessel maintenance and repair services must be the company as stipulated under the Korean Commercial Act and registered according to the Maritime Transportation Act. Only a Korean national may supply maritime pilotage services. Measure : Maritime Transportation Act (Law No. 16521, 20 August 2019) Articles 24 and 33 Enforcement Regulations of the Maritime Transportation Act (Ordinance of the Ministry of Oceans and Fisheries No. 402, 6 April 2020) Articles 16, 19, 22, and 23 Pilotage Act (Law No. 17025, 18 February 2020) Article 6 Ship Investment Company Act (Law No. 16507, 20 August 2019) Articles 3 and 31
11.
Sector : Transportation Services - Air Transportation Services Level of Government Central Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment The following persons may not supply scheduled or non-scheduled domestic air transportation services or supply international air transportation services as Korean air carriers: (a) a foreign national; (b) a foreign government or a foreign gong-gong-dan-che (organisation for public purposes); (c) an enterprise organised under foreign law; (d) an enterprise in which any of the persons referred to in subparagraphs (a) through (c) owns 50 per cent or more of the equity interest, or has control; or (e) an enterprise organised under Korean law whose dae-pyo-ja (for example, a chief executive officer, president, or similar principal senior officer) is a foreign national or half or more of whose senior management are foreign nationals. A person that owns an aircraft or is authorised to operate a chartered aircraft must register the aircraft with the Minister of Land, Infrastructure and Transport. The persons listed in subparagraphs (a) through (e) are not allowed to register an aircraft. Measure : Aviation Safety Act (Law No. 17463, 9 June 2020) Articles 7 and 10 Aviation Business Act (Law No. 16642, 26 November 2019) Articles 7 through 10 Enforcement Regulations of the Aviation Business Act (Ordinance of the Ministry of Land, Infrastructure and Transport No. 732, 27 May 2020) Articles 8, 8-2, and 12
12.
Sector : Courier Services Level of Government Central Obligation Concerned : Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services To supply international courier services that include commercial document delivery services, as specified in Article 3 of the Enforcement Decree of the Postal Services Act, a person must establish an office in Korea. In order to obtain a trucking business licence from the Minister of Land, Infrastructure and Transport, a domestic courier services supplier must establish an office in the relevant geographic area. Such a licence is subject to an economic needs test. For greater certainty, a person acquiring a domestic courier services supplier does not need to obtain a new trucking business licence provided that the acquirer operates under the same terms and conditions as set out in the acquiree’s licence. Measure : Aviation Business Act (Law No. 16642, 26 November 2019) Article 52 Enforcement Regulations of the Aviation Business Act (Ordinance of the Ministry of Land, Infrastructure and Transport No. 732, 27 May 2020) Article 52 Trucking Transport Business Act (Law No. 17453, 9 June 2020) Articles 3, 24, and 29 Enforcement Regulations of Trucking Transportation Business Act (Ordinance of the Ministry of Land, Infrastructure and Transport No. 738, 17 June 2020) Articles 6, 34, and 41-2
13.
Sector : Telecommunications Services Level of Government Central Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services and Investment A licence for facilities-based public telecommunications services or a registration for non-facilities-based public telecommunications services shall be granted only to a juridical person organised under Korean law. A licence for facilities-based public telecommunications services shall not be granted to or held by a juridical person organised under Korean law in which a foreign government, foreign person, or deemed foreign person holds in the aggregate more than 49 per cent of the juridical person’s total voting shares. A foreign government, foreign person, or deemed foreign person may not in the aggregate hold more than 49 per cent of the total voting shares of a facilities-based supplier of public telecommunications services. In addition, with respect to KT Corporation (KT), a foreign government, foreign person, or deemed foreign person may not be the largest shareholder of KT, except if it holds less than five per cent of the total voting shares of KT. A foreign government, or its representative, or a foreign person may not obtain or hold a radio station licence. A foreign person may not supply cross-border public telecommunications services into Korea, except through a commercial arrangement with a supplier of public telecommunications services that is licensed in Korea. For the purposes of this entry: (a) deemed foreign person means a juridical person organised under Korean law in which a foreign government or a foreign person (including a “specially related person” under subparagraph 6(a) of Article 2 of the Act on Corporate Governance of Financial Companies) is the largest shareholder and holds 15 per cent or more of that juridical person’s total voting shares, but does not include a juridical person that holds less than 1 per cent of the total voting shares of a facilities-based supplier of public telecommunications services; (b) consistent with Article 5.2 of the Telecommunications Business Act (Law No. 13823, 27 January 2016), a facilities-based supplier is a supplier that owns transmission facilities; (c) consistent with Article 5.3 of the Telecommunications Business Act (Law No. 13823, 27 January 2016), a non-facilities-based supplier is a supplier that does not own transmission facilities (but may own a switch, router or multiplexer) and supplies its public telecommunication services through transmission facilities of a licensed facilities-based supplier; and (d) consistent with subparagraph 3 of Article 2 of the Telecommunications Basic Act (Law No. 13586, 22 December 2015), transmission facilities means wireline or wireless transmission facilities (including circuit facilities) that connect transmitting points with receiving points. Measure : Telecommunications Business Act (Law No. 13823, 27 January 2016) Articles 6, 7, 8, 21, and 87 Telecommunications Business Act (Law No. 5385, 28 August 1997) Addenda Article 4 Radio Waves Act (Law No. 16756, 10 December 2019) Articles 13 and 20
14.
Sector : Real Estate Brokerage and Appraisal Services Level of Government Central Obligation Concerned : Local Presence (Article 8.11) Description : Trade in Services A person that supplies real estate brokerage services or real estate appraisal services must establish an office in Korea. Measure : Licensed Real Estate Agent Act (Law No. 17453, 9 June 2020) Article 9 Enforcement Decree of the Licensed Real Estate Agent Act (Presidential Decree No. 30509, 3 March 2020) Article 13 Enforcement Regulations of the Licensed Real Estate Agent Act (Ordinance of the Ministry of Land, Infrastructure and Transport No. 689, 21 February 2020) Article 4 Act on Appraisal and Certified Appraisers (Law No. 17219, 7 April 2020) Articles 20, 21, and 29 Enforcement Decree of the Act on Appraisal and Certified Appraisers (Presidential Decree No. 30428, 18 February 2020) Articles 20, 21, and 25 Enforcement Regulations of the Act on Appraisal and Certified Appraisers (Ordinance of the Ministry of Land, Infrastructure and Transport No. 690, 21 February 2020) Articles 17, 18, and 20
15.
Sector : Retail, Leasing, Rental and Repair Services Related to Medical Devices Level of Government Central Obligation Concerned : Local Presence (Article 8.11) Description : Trade in Services A person that supplies retail, leasing, rental, or repair services related to medical devices must establish an office in Korea. Measure : Medical Devices Act (Law No. 17091, 24 March 2020) Articles 16 and 17 Enforcement Regulations of the Medical Devices Act (Ordinance of the Prime Minister No. 1617, 29 May 2020) Articles 35 and 37
16.
Sector : Rental Services - Automobiles Level of Government Central Obligation Concerned : Local Presence (Article 8.11) Description : Trade in Services A person that supplies automobile rental services must establish an office in Korea. Measure : Passenger Transport Service Act (Law No. 17453, 9 June 2020) Articles 28 and 29 Enforcement Regulations of the Passenger Transport Service Act (Ordinance of the Ministry of Land, Infrastructure and Transport No. 716, 14 April 2020) Articles 60, 61, 62, and 64
17.
Sector : Scientific Research Services and Sea Map Making Services Level of Government Central Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Description : Trade in Services and Investment A foreign person, a foreign government, or a Korean enterprise owned or controlled by a foreign person that intends to conduct marine scientific research in the territorial waters or exclusive economic zone of Korea must obtain prior authorisation or consent from the Minister of Oceans and Fisheries whereas a Korean national or a Korean enterprise not owned or controlled by a foreign person need only to provide notification to the Minister of Oceans and Fisheries. Measure : Marine Scientific Research Act (Law No. 17057, 18 February 2020) Articles 6, 7, and 8 Territorial Sea and Contiguous Zone Act (Law No. 15429, 13 March 2018) Article 5
18.
Sector : Professional Services - Legal Services Level of Government Central Obligation Concerned : Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services Only a byeon-ho-sa (Korean-licensed lawyer) registered with the Korean Bar Association may supply legal services. Only a byeon-ho-sa (Korean-licensed lawyer) may establish the following types of legal entity: beop-yool-sa-mu-so (law office), beop-mu-beop-in (law company with the characteristics of partnership), beop-mu-beop-in (yoo-han) (limited liability law company), or beop-mu-jo-hap (limited liability partnership law office). For greater certainty, a person that is not a Korean-licensed lawyer is not permitted to invest in any of these types of legal entity. A byeon-ho-sa (Korean-licensed lawyer) or beop-mu-sa (Korean-certified judicial scrivener) who practices in Korea must establish an office in the jurisdiction of the district court in which he or she practices. A gong-jeung-in (Korean notary public) must establish an office in the jurisdiction of the district office of the public prosecutor in which he or she practices. This entry is subject to the commitments undertaken in the entry for Legal Services – Foreign Legal Consultants in List B. Measure : Attorney-at-law Act (Law No. 17366, 9 June 2020) Articles 4, 7, 21, 21-2, 34, 45, 58-6, 58-22, and 109 Certified Judicial Scriveners Act (Law No.17366, 9 June 2020) Articles 2, 3, and 14 Notary Public Act (Law No. 15150, 12 December 2017) Articles 10, 16, and 17
19.
Sector : Professional Services - Accounting and Auditing Services Level of Government Central Obligation Concerned : Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services Only a gae-in-sa-mu-so (sole proprietorships), gam-sa-ban (auditing task forces) or hoe-gye-boep-in (accounting corporation limited liability company) established in Korea by gong-in-hoe-gye-sa (Korean-certified public accountants) registered under the Certified Public Accountant Act may supply accounting and auditing services. For greater certainty, a person that is not a Korean-registered certified public accountant may not invest in any of these types of legal entity. Only gong-in-hoe-gye-sa (Korean-certified public accountants) in an auditing task force or an accounting corporation may supply auditing services regulated under the External Audit of Stock Companies Act. Measure : Certified Public Accountant Act (Law No.17291, 19 May 2020) Articles 2, 7, 12, 18, and 23 Act on External Audit of Stock Companies Etc., (Law No. 15514, 20 March 2018) Articles 2 and 9
20.
Sector : Professional Services - Tax Accountant (se-mu-sa) Level of Government Central Obligation Concerned : Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services Only a se-mu-sa-mu-so (sole proprietorships), se-mu-jo-jeong-ban (tax reconciliation task forces) or, se-mu-beop-in (tax agency corporation limited liability company) established in Korea by se-mu-sa (Korean-certified tax accountants) registered under the Certified Tax Accountant Act may supply se-mu-sa (Korean-certified tax accountants) services, including tax reconciliation services and tax representative services. For greater certainty, a person that is not a Korean-registered certified tax accountant may not invest in any of these types of legal entity. Only a se-mu-jo-jeong-ban (tax reconciliation task force) or a se-mu-beop-in (tax agency corporation limited liability company) may supply tax reconciliation services. Measure : Certified Tax Accountant Act (Law No. 17339, 9 June 2020) Articles 6, 13, 16-3, and 20 Corporate Tax Act (Law No. 16833, 31 December 2019) Article 60 Income Tax Act (Law No. 16834, 31 December 2019) Article 70 Guidelines Governing the Work of Tax Agents, Articles 20 and 22
21.
Sector : Engineering and Other Technical Services - Industrial Safety, Health Institution, and Consulting Services Level of Government Central Obligation Concerned : Local Presence (Article 8.11) Description : Trade in Services A person that supplies safety and health management or diagnostic services to industrial workplaces must establish an office in Korea. A person that supplies industrial safety or hygiene consulting services, such as evaluation and instruction on safety in a work process and evaluation and instruction on the improvement of work environments, must establish an office in Korea. Measure : Industrial Safety and Health Act (Law No. 17433, 9 June 2020) Articles 17, 18, 21, and 145 Enforcement Decree of the Industrial Safety and Health Act (Presidential Decree No. 30509, 3 March 2020) Article 27 Enforcement Regulations of the Industrial Safety and Health Act (Ordinance of the Ministry of Employment and Labor No. 272, 26 December 2019) Articles 16 and 229
22.
Sector : Engineering and Other Technical Services - Architectural Services, Engineering Services, Integrated Engineering Services, Urban Planning and Landscape Architectural Services, Surveying and Map-making Services (not including cadastral surveying and cadastral map-making services) Level of Government Central Obligation Concerned : Local Presence (Article 8.11) Description : Trade in Services A person that supplies architectural services, engineering services, integrated engineering services, urban planning and landscape architectural services or surveying and map-making services (not including cadastral surveying and cadastral map-making services) must establish an office in Korea. For greater certainty, this entry does not apply to the supply of services by a foreign architect through a joint contract with a Korean-licensed architect. Measure : Certified Architects Act (Law No. 17453, 9 June 2020) Article 23 Enforcement Decree of the Certified Architects Act (Presidential Decree No. 30774, 9 June 2020) Articles 22 and 23 Enforcement Regulations of the Certified Architects Act (Ordinance of the Ministry of Land, Infrastructure and Transport No. 739, 18 June 2020) Article 13 Engineering Industry Promotion Act (Law No. 16652, 26 November 2019) Article 21 Enforcement Decree of the Engineering Industry Promotion Act (Presidential Decree No. 29677, 2 April 2019) Article 33 Professional Engineers Act (Law No. 17347, 9 June 2020) Article 6 Special Act on the Safety Control and Maintenance of Establishments (Law No. 17453, 9 June 2020) Article 28 Enforcement Decree of the Special Act on the Safety Control and Maintenance of Establishment (Presidential Decree No. 30876, 28 July 2020) Article 23 Construction Technology Promotion Act (Law No. 17453, 9 June 2020) Article 26 Enforcement Decree of the Construction Technology Promotion Act (Presidential Decree No. 30885, 30, July 2020) Article 44 Enforcement Regulations of the Construction Technology Promotion Act (Ordinance of the Ministry of Land, Infrastructure and Transport No. 726, 26 May 2020) Article 21 Environmental Testing and Inspection Act (Law No. 15200, 12 December 2017) Article 16 Framework Act on the Construction Industry (Law No. 17453, 9 June 2020) Articles 9 and 10. Enforcement Decree of the Framework Act on the Construction Industry (Law No. 30893, 4 August 2020) Article 13 Act on the Establishment, management, Etc. of Spatial Data (Law No. 16812, 10 December 2019) Articles 44 and 54 Enforcement Decree of the Act on the Establishment, management, Etc. of Spatial Data (Presidential Decree No. 30799, 23 June 2020) Articles 34, 35, 36, 45, 46, and 47 Hot Spring Act (Law No. 14795, 18 April 2017) Article 7 Fire Fighting System Installation Business Act (Law No. 17378, 9 June 2020) Article 4
23.
Sector : Business Services - Electronic Billboard Operator Services and Outdoor Advertisement Services Level of Government Central Obligation Concerned : Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment A foreign national or a Korean national who serves as a dae-pyo-ja (for example, a chief executive officer, president, or similar principal senior officer) of a foreign enterprise may not serve as the dae-pyo-ja (for example, a chief executive officer, president, or similar principal senior officer) or chief programmer of an enterprise that supplies electronic billboard operator services. At least 20 per cent of the electronic billboard programmes must be non-commercial public advertisements provided by the central or local government. A person that supplies outdoor advertising services must establish an office in Korea. Measure : Broadcasting Act (Law No. 16750, 10 December 2019) Articles 13 and 73 Act on the Management of Outdoor Advertisements, Etc. and Promotion of Outdoor Advertisements Industry (Law No. 17091, 24 March 2020) Article 11 Enforcement Decree of the Act on the Management of Outdoor Advertisements, Etc. and Promotion of Outdoor Advertisements Industry (Presidential Decree No. 30645, 28 April 2020) Articles 14 and 44
24.
Sector : Business Services - Job Placement Services, Labour Supply and Worker Dispatch Services, and Education Services for Seafarers Level of Government Central Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services and Investment A person that supplies job placement services for a fee, worker supply services, or worker dispatch (secondment) services must establish an office in Korea. For transparency purposes, as of 16 January 2020 the types of business to which workers may be seconded are limited to the 32 businesses set forth in the Presidential Decree, but the Minister of Employment and Labor can expand the types of business and the secondment period, pursuant to the review and determination by the Committee of the Free Economic Zone. Only the Korea Seafarers Welfare and Employment Center, regional offices of the Minister of Oceans and Fisheries, a seafarer management business operator and an organisation or institution related to maritime affairs and fisheries regulated under Seafarer Act may supply seafaring labour supply services. A person that provides seafarer management services must be the company as stipulated under the Korean Commercial Act and register in accordance with the Maritime Transportation Act. Only the Korea Institute of Maritime and Fisheries Technology may provide education and training for seafarers. Measure : Employment Security Act (Law No. 17326, 26 May 2020) Articles 19 and 33 Enforcement Decree of the Employment Security Act (Presidential Decree No. 29950, 2 July 2019) Articles 21 and 33 Enforcement Regulations of the Employment Security Act (Ordinance of the Ministry of Employment and Labor No. 263, 15 October 2019) Articles 17, 18, and 36 Act Relating to Protection for Dispatched Workers (Law No. 17326, 26 May 2020) Articles 5 through 10 Enforcement Decree of the Act Relating to Protection for Dispatched Workers (Presidential Decree No. 30256, 24 December 2019) Articles 2 and 3 Enforcement Regulations of the Act Relating to Protection for Dispatched Workers (Ordinance of the Ministry of Employment and Labor No. 272, 26 December 2019) Articles 3 and 5 Special Act on Designation and Management of Free Economic Zones (Law No. 16416, 30 April 2019) Article 17. Seafarers Act (Law No. 17032, 18 February 2020) Articles 109, 110, 112,115, 116, 117, 142, and 143 Korea Institute of Maritime and Fisheries Technology Act (Law No. 13272, 27 March 2015) Article 5
25.
Sector : Investigation and Security Services Level of Government Central Obligation Concerned : Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services Only a juridical person organised under Korean law may supply security services in Korea. For transparency purposes, only five types of security services are permitted in Korea: (a) shi-seol-gyung-bee (facility security); (b) ho-song-gyung-bee (escort security); (c) shin-byun-bo-ho (personal security); (d) gee-gye-gyung-bee (mechanised security); and (e) teuk-soo-gyung-bee (special security). Measure : Security Services Industry Act (Law No. 16316, 16 April 2019) Articles 3 and 4 Enforcement Decree of the Security Services Industry Act (Presidential Decree No. 30384, 4 February 2020) Articles 3 and 4 Enforcement Regulations of the Security Services Industry Act (Ordinance of the Ministry of the Interior and Safety, No. 112, 23 April 2019) Article 3
26.
Sector : Distribution Services Related to Publications Level of Government Central Obligation Concerned : National Treatment (Article 8.4) Description : Trade in Services Publications for the purposes of domestic distribution are subject to a review process on an ad hoc basis. Measure : Publishing Industry Promotion Act (Law No. 16693, 3 December 2019) Articles 18, 19, and 19-3 Enforcement Decree of the Publishing Industry Promotion Act (Presidential Decree No. 29950, 2 July 2019) Article 12 Enforcement Regulations of the Publishing Industry Promotion Act (Ordinance of the Ministry of Culture, Sports and Tourism No. 397, 23 June 2020) Article 7
27.
Sector : Transportation Services - Aircraft Maintenance and Repair Services Level of Government Central Obligation Concerned : Local Presence (Article 8.11) Description : Trade in Services A person that supplies aircraft maintenance and repair services must establish an office in Korea. (3) Measure : Aviation Business Act (Law No. 16642, 26 November 2019) Articles 42 and 44 Enforcement Regulations of the Aviation Business Act (Ordinance of the Ministry of Land, Infrastructure and Transport No. 732, 27 May 2020) Articles 5, 41, and 43 Aviation Safety Act (Law No. 17463, 9 June 2020) Article 97
28.
Sector : Education Services - Higher Education Level of Government Central Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Market Access (Article 8.5) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment At least 50 per cent of the members of the board of directors of a private higher education institution must be Korean nationals. If a foreign person contributes at least 50 per cent of the basic property of a higher education institution, up to but not including two thirds of the members of the board of directors of such an institution may be foreign nationals. For the purposes of this entry, basic property means real estate, property designated as basic property by the articles of association, property incorporated into the basic property according to decisions of the board of directors, and an annual budgetary surplus reserve of the institution. Only non-profit school juridical persons approved by the Minister of Education may establish higher education institutions (other than the types of institutions listed in List B) in Korea. The Minister of Education may restrict the total number of students per year in the fields of medicine, pharmacology, veterinary medicine, traditional Asian medicine, medical technicians, and higher education for pre-primary, primary, and secondary teachers, and higher education institutions located in the Seoul Metropolitan Area. For the purposes of this entry, “Seoul Metropolitan Area” includes the Seoul Metropolitan City, Incheon Metropolitan City, and Gyeonggi Province. Only the central or local governments of Korea may establish higher education institutions for training of primary school teachers. Only the central government may establish higher education institutions that supply higher education services to the public through broadcasting. Any new establishment, extension, or transfer of a higher education institution other than Technology Universities and Intra-company Universities may be restricted in the Seoul Metropolitan Area. Operation of joint educational programmes with junior colleges, universities, and industrial universities is limited to foreign universities, which obtained accreditation by foreign public accreditation bodies or which acquired recognition or recommendation by their governments, in fields that the president of the university (junior college) recognises as necessary Credits acquired from other higher educational institutions, local or foreign, are acknowledged to the extent that such acknowledged credits do not exceed half of the total credits required for graduation. Measure : Higher Education Act (Law No. 16742, 10 December 2019) Articles 3, 4, 21, 23, 32, 42, and 43 Enforcement Decree of the Higher Education Act (Presidential Decree No. 30725, 2 June 2020) Articles 13, 15, and 28 Private School Act (Law No. 16679, 3 December 2019) Articles 3, 5, 10, and 21 Enforcement Decree of the Private School Act (Presidential Decree No. 30514, 10 March 2020) Article 9-3 Decree on the Establishment of the Korea National Open University (Presidential Decree No. 30550, 31 March 2020) Articles 1 and 2 Seoul Metropolitan Area Readjustment Planning Act (Law No. 16810, 10 December 2019) Articles 7, 8, 9, and 18 Enforcement Decree of the Seoul Metropolitan Area Readjustment Planning Act (Presidential Decree No. 30545, 24 March 2020) Articles 3, 10, 11, 12, 13, and 14
29.
Sector : Education Services - Adult Education Level of Government Central Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Market Access (Article 8.5) Description : Trade in Services and Investment The types of adult education institutions that a foreign person may establish in Korea are limited to: (a) hag-won (private teaching institutes for adults) related to lifelong and vocational education; and (b) no later than the date of entry into force of this Agreement, lifelong adult education facilities operated for the purposes other than recognising educational qualifications or conferring diplomas, which include: i. education facilities annexed to workplaces, non-governmental organisations, schools and media organisations; and ii. educational facilities related to the development of knowledge and human resources; all of which are established for adults. For the purposes of this entry, hag-won (private teaching institutes for adults) are facilities that provide tutoring services on subjects related to lifelong or vocational education to ten people or more for a period of 30 days or longer. A foreign national hired by a private teaching institute for adults as a lecturer must possess at least a bachelor’s degree or the equivalent and reside in Korea. The establishment, extension, and transfer of the training facilities in Seoul Metropolitan Areas may be restricted. For transparency purposes, superintendent of provincial education offices may regulate tuition rates for hag-won on a non-discriminatory basis. Measure : Act on the Establishment and Operation of Private Teaching Institutes and Extracurricular Lessons (Law No. 15967, 18 December 2018) Articles 2, 2-2, and 13 Enforcement Decree of the Establishment and Operation of Private Teaching Institutes and Extracurricular Lessons Act (Presidential Decree No. 30547, 31 March 2020) Article 12 Lifelong Education Act (Law No. 16677, 3 December 2019) Articles 30, and 33 through 38 Foreign Investment Promotion Act (Law No. 16859, 31 December 2019) Article 4 Regulations on Foreign Investment (Notice of the Ministry of Trade, Industry, and Energy, No. 2018-137, 6 July 2018), Attached Table 1 Seoul Metropolitan Area Readjustment Planning Act (Law No. 16810, 10 December 2019) Articles 7, 8, 9, and 18 Enforcement Decree of the Seoul Metropolitan Area Readjustment Planning Act (Presidential Decree No.30545, 24 March 2020) Articles 3, and 10 through 14
30.
Sector : Education Services - Vocational Competency Development Training Services Level of Government Central Obligation Concerned : Local Presence (Article 8.11) Description : Trade in Services A person that supplies vocational competency development training services must establish an office in Korea. Measure : Workers’ Vocational Competency Development Act (Law No. 17326, 26 May 2020) Articles 28, 32, and 36 Enforcement Decree of the Workers’ Vocational Competency Development Act (Presidential Decree No. 30850, 14 July 2020) Articles 24 and 26 Enforcement Regulations of the Workers’ Vocational Competency Development Act (Ordinance of the Ministry of Employment and Labor No. 288, 14 July 2020) Articles 12, 14, and 18
31.
Sector : Environmental Services - Waste Water Treatment Services, Waste Management Services, Air Pollution Treatment Services, Environmental Preventive Facilities Business, Environmental Impact Assessment, Soil Remediation and Groundwater Purification Services, and Toxic Chemical Control Services Level of Government Central Obligation Concerned : Local Presence (Article 8.11) Description : Trade in Services A person that supplies the environmental services listed in the Sector heading must establish an office in Korea. Measure : Water Environment Conservation Act (Law No. 17326, 26 May 2020) Article 62 Environmental Technology and Industry Support Act (Law No. 17183, 31 March 2020) Article 15 Soil Environment Conservation Act (Law No. 16613, 26 November 2019) Article 23-7 Groundwater Act (Law No. 17326, 26 May 2020) Article 29-2 Clean Air Conservation Act (Law No. 16604, 26 November 2019) Article 68 Environmental Impact Assessment Act (Law No. 16617, 26 November 2019) Article 54 Chemicals Control Act (Law No. 17326, 26 May 2020) Article 28 Wastes Control Act (Law No. 16614, 26 November 2019) Article 25 Enforcement Decree of the Wastes Control Act (Presidential Decree No. 30684, 19 May 2020) Article 8
32.
Sector : Performance Services Level of Government Central Obligation Concerned : National Treatment (Article 8.4) Description : Trade in Services A foreign person who intends to engage in a public performance in Korea, or a person who intends to invite a foreign person to engage in a public performance in Korea must obtain a recommendation from the Korea Media Rating Board. Measure : Public Performance Act (Law No. 16588, 26 November 2019) Articles 6 and 7 Enforcement Decree of the Public Performance Act (Presidential Decree No. 29950, 2 July 2019) Articles 4 and 6 Enforcement Regulations of the Public Performance Act (Ordinance of the Ministry of Culture, Sports and Tourism No. 371, 7 October 2019) Article 4 Enforcement Regulations of the Immigration Control Act (Ordinance of the Ministry of Justice No. 963, 24 December 2019) Table 5
33.
Sector : News Agency (News-tong-sin-sa) Services Level of Government Central Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Market Access (Article 8.5) Local Presence (Article 8.11) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment A news-tong-sin-sa (news agency) organised under foreign law may supply news-tong-sin (news communications) in Korea only under a contract with a news agency organised under Korean law which has a radio station licence, such as Yonhap News. The following persons may not supply news agency services in Korea: (a) a foreign government; (b) a foreign person; (c) an enterprise organised under Korean law whose dae-pyo-ja (for example, a chief executive officer, president, or similar principal senior officer) is not a Korean national or is a person not domiciled in Korea; or (d) an enterprise organised under Korean law in which a foreign person holds 25 per cent or more equity interest. The following persons may not serve as a dae-pyo-ja (for example, a chief executive officer, president, or similar principal senior officer) or editor of a news agency, or serve as im-won (a member of the board of directors) of Yonhap News or the News Agency Promotion Committee: (a) a foreign national; or (b) a Korean national not domiciled in Korea. A foreign news agency may establish a branch or office in Korea for the sole purpose of collecting news. For greater certainty, such branch or office may not distribute news-tong-sin (news communications) in Korea. The following persons may not obtain a radio station licence: (a) a foreign national; (b) a foreign government or its representative; or (c) an enterprise organised under foreign law. Measure : Act on Promotion of News Communications (Law No. 16052, 24 December 2018) Articles 7, 8, 9, 9-5, 16 and 28 Enforcement Decree of the Act on Promotion of News Communications (Presidential Decree No. 30059, 27 August 2019) Articles 4 and 10 Radio Waves Act (Law No. 16756, 10 December 2019) Article 20
34.
Sector : Manufacturing of Biological Products Level of Government Central Obligation Concerned : Prohibition of Performance Requirements (Article 10.6) Description : Investment A person who manufactures blood products must procure raw blood materials from a blood management body in Korea. Measure : Pharmaceutical Affairs Act (Law No. 17208, 7 April 2020) Article 42 Regulations on Safety of Pharmaceuticals, Etc. (Ordinance of the Prime Minister No. 1576, 6 December 2019) Article 11
35.
Sector : Distribution Services - Agriculture and Livestock Level of Government Central Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Market Access (Article 8.5) Description : Trade in Services and Investment A foreign person may not hold 50 per cent or more of the shares or equity interest of an enterprise engaged in yook-ryu (meat) wholesaling. Only the Livestock Cooperatives under the Agriculture Cooperative Act may establish and manage a ga-chook-sijang (livestock market) in Korea. Only a local government may establish a gong-yeong-domae-sijang (public wholesale market). Only producers’ organisations or public interest corporations prescribed in the Enforcement Decree of the Act on Distribution and Price Stabilization of Agricultural and Fishery Products may establish a gong-pan-jang (joint wholesale market). For greater certainty, Articles 8.4 (National Treatment) and 8.5 (Market Access) do not prevent Korea from adopting or maintaining any measure with respect to the administration of the WTO Tariff-Rate-Quota. Measure : Grain Management Act (Law No. 16891, 29 January 2020) Article 12 Livestock Industry Act (Law No. 17099, 24 March 2020) Article 30 and 34 Seed Industry Act (Law No. 16789, 10 December 2019) Article 42 Control of Livestock and Fish Feed Act (Law No. 17091, 24 March 2020) Article 6 Ginseng Industry Act (Law No. 16101, 31 December 2018) Article 20 Foreign Investment Promotion Act (Law No. 16859, 31 December 2019) Article 4 Enforcement Decree of the Foreign Investment Promotion Act (Presidential Decree No. 30586, 31 March 2020) Article 5 Regulations on Foreign Investment (Notice of the Ministry of Trade, Industry, and Energy, No. 2018-137, 6 July 2018) Attached Table 2 Act on Distribution and Price Stabilization of Agricultural and Fishery Products (Law No. 17091, 24 March 2020) Articles 15, 17 and 43 Notice on TRQ Products (Ministry of Agriculture, Food and Rural Affairs Notice No. 2019-92, 31 December 2019)
36.
Sector : Energy Industry - Electric Power Generation Other Than Nuclear Power Generation; Electric Power Transmission, Distribution and Sales Level of Government Central Obligation Concerned : National Treatment (Articles 8.4 and 10.3) (4) Description : Trade in Services and Investment The aggregate foreign share of Korea Electric Power Corporation (KEPCO)’s issued stocks may not exceed 40 per cent. 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 per cent 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 per cent. A foreign person may not be the largest shareholder. Measure : Financial Investment Services and Capital Markets Act (Law No. 17219, 7 April 2020) Article 168 Enforcement Decree of Financial Investment Services and Capital Markets Act (Presidential Decree No. 30525, 10 March 2020) Article 187 Foreign Investment Promotion Act (Law No. 16859, 31 December 2019) Articles 4 and 5 Enforcement Decree of the Foreign Investment Promotion Act (Presidential Decree No. 30586, 31 March 2020) Article 5 Regulations on Foreign Investment (No. 2018-137, 6 July 2018, Ministry of Trade, Industry and Energy) Attached Table 1, 2 Designation of Public Corporation (Notice of Ministry of Finance and Economy, No. 2000-17, 28 September 2000) Financial Investment Service Regulations (Financial Services Commission Notice No. 2019-8, 20 March 2019) Article 6-2
37.
Sector : Energy Industry - Gas Industry Level of Government Central Obligation Concerned : National Treatment (Articles 8.4 and 10.3) (5) Description : Trade in Services and Investment Foreign persons, in the aggregate, may not own more than 30 per cent of the equity of Korea Gas Corporation (KOGAS). Measure : Act on the Improvement of Managerial Structure and Privatization of Public Enterprises (Law No. 17131, 31 March 2020) Article 19 Financial Investment Services and Capital Markets Act (Law No. 17219, 7 April 2020) Article 168 Foreign Investment Promotion Act (Law No. 16859, 31 December 2019) Articles 4 and 5 Articles of Incorporation of the Korea Gas Corporation (3 July 2019) Article 11
List B. Explanatory Notes
1. This List sets out, pursuant to Article 8.8 (Schedules of Non-Conforming Measures) and Article 10.8 (Reservations and Non-Conforming Measures), the specific sectors, subsectors, or activities for which that Korea may maintain existing, or adopt new or more restrictive, measures that do not conform with obligations imposed by:
(a) Article 8.4 (National Treatment) or 10.3 (National Treatment);
(b) Article 8.5 (Market Access);
(c) Article 8.6 (Most-Favoured-Nation Treatment) or 10.4 (Most-Favoured-Nation Treatment);
(d) Article 8.11 (Local Presence);
(e) Article 10.6 (Prohibition of Performance Requirements); or (f) Article 10.7 (Senior Management and Board of Directors).
2. Each List entry sets out the following elements:
(a) Sector refers to the sector for which the entry is made;
(b) Obligations Concerned specifies the Articles referred to in paragraph 1 that, pursuant to paragraph 2 of Article 8.8 (Schedules of Non-Conforming Measures) and paragraph 2 of Article 10.8 (Reservations and Non-Conforming Measures), do not apply to the sectors, subsectors, or activities scheduled in the entry;
(c) Description sets out the scope of the sectors, subsectors, or activities covered by the entry; and
(d) Existing Measures identifies, for transparency purposes, existing measures that apply to the sectors, subsectors, or activities covered by the entry.
3. In accordance with paragraph 2 of Article 8.8 (Schedules of Non-Conforming Measures) and paragraph 2 of Article 10.8 (Reservations and Non-Conforming Measures), the Articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the sectors, subsectors, and activities identified in the Description element of that entry.
4. For Korea, foreign person means a foreign national or an enterprise organised under the laws of another country.