5. 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 : All Sectors Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Prohibition of Performance Requirements (Article 10.6) Description : Trade in Services and Investment Korea reserves the right to adopt, with respect to the establishment or acquisition of an investment, any measure that is necessary for the maintenance of public order pursuant to Article 4 of the Foreign Investment Promotion Act and Article 5 of the Enforcement Decree of the Foreign Investment Promotion Act, provided that the measure: (a) is applied in accordance with the procedural requirements set out in the Foreign Investment Promotion Act, Enforcement Decree of the Foreign Investment Promotion Act, and other applicable law; (b) is adopted or maintained only where the investment poses a genuine and sufficiently serious threat to the fundamental interests of society; (c) is not applied in an arbitrary or unjustifiable manner; (d) does not constitute a disguised restriction on investment; and (e) is proportional to the objective it seeks to achieve. Existing Measures : Foreign Investment Promotion Act Enforcement Decree of the Foreign Investment Promotion Act
2.
Sector : All Sectors Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Investment Korea reserves the right to adopt or maintain any measure with respect to the transfer or disposition of equity interests or assets held by state enterprises or governmental authorities. This entry does not apply to former private enterprises that are owned by the state as a result of corporate reorganisation processes. For the purposes of this entry, a state enterprise shall include any enterprise created for the sole purpose of selling or disposing of equity interests or assets of state enterprise or governmental authorities. Trade in Services and Investment Without prejudice to Korea’s commitments undertaken in List A and List B, Korea reserves the right to adopt or maintain any measure with respect to the transfer to the private sector of all or any portion of services provided in the exercise of governmental authority. Existing Measures : Financial Investment Services and Capital Markets Act
3.
Sector : All sectors Obligation Concerned : 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 Korea reserves the right to adopt or maintain any measure with respect to the defence industry. Existing Measures : Foreign Investment Promotion Act Defense Acquisition Program Act
4.
Sector : All sectors Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Most-Favoured-Nation Treatment (Articles 8.6 and 10.4) Description : Trade in Services and Investment Korea reserves the right to adopt or maintain any measure with respect to the critical technology, which is defined in Act on Prevention of Divulgence and Protection of Industrial Technology. Existing Measures : Act on Prevention of Divulgence and Protection of Industrial Technology Enforcement Decree of the Act on Prevention of Divulgence and Protection of Industrial Technology Foreign Investment Promotion Act Enforcement Decree of the Foreign Investment Promotion Act
5.
Sector : All sectors Obligation Concerned : 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 Korea reserves the right to adopt or maintain any measure relating to investment or the supply of services in industries other than those recognised or other than those that should have been recognised by the Government of Korea owing to the circumstances as of the date of entry into force of this Agreement. Any services classified positively and explicitly in Korea Standard Industry Code (KSIC) or Central Product Classification (CPC), as of the date of entry into force of this Agreement should have been recognised by the Government of Korea at that time. Korea reserves the right to adopt or maintain any measure relating to investment or the supply of services in industries which were not technically feasible as of the date of entry into force of this Agreement. Existing Measures : -
6.
Sector : All sectors Obligation Concerned : 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 Korea reserves the right to adopt or maintain any measure with respect to the supply of service by the presence of natural persons, or other movement of natural persons, including immigration, temporary entry or temporary stay, subject to the provisions of Chapter 9 (Temporary Movement of Natural Persons). Existing Measures : -
7.
Sector : Acquisition of Land Obligation Concerned : National Treatment (Article 10.3) Description : Investment Korea reserves the right to adopt or maintain any measure 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 Act on Report on Real Estate Transactions, Etc.; and 2. is deemed foreign under the Act on Report on Real Estate Transactions, Etc. or is a branch of a foreign juridical person subject to approval or notification in accordance with the Act on Report on Real Estate Transactions, Etc., if the land is to be used for any of the following legitimate business purposes: (a) land used for ordinary business activities; (b) land used for housing for senior management; and (c) land used for fulfiling land-holding requirements stipulated by pertinent laws. Korea reserves the right to adopt or maintain any measure with respect to the acquisition of farmland by foreign persons. Existing Measures : Act on Report on Real Estate Transactions, Etc. Farmland Act
8.
Sector : Firearms, Swords, Explosives, and Similar Items Obligation Concerned : National Treatment (Articles 8.4 and 10.3) 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 Korea reserves the right to adopt or maintain any measure with respect to the firearms, swords, explosives, gas sprays, electric shocks, and crossbows sector, including the manufacture, use, sale, storage, transport, import, export, and possession of firearms, swords, explosives, gas sprays, electric shocks, and crossbows. Existing Measures : -
9.
Sector : Disadvantaged Groups Obligation Concerned : National Treatment (Articles 8.4 and 10.3) 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 Korea reserves the right to adopt or maintain any measure that accords rights or preferences to socially or economically disadvantaged groups, such as the disabled, persons who have rendered distinguished services to the state, and ethnic minorities. Existing Measures : -
10.
Sector : State-Owned National Electronic Information System Obligation Concerned : National Treatment (Articles 8.4 and 10.3) 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 Korea reserves the right to adopt or maintain any measure 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. Existing Measures : -
11.
Sector : Social Services Obligation Concerned : National Treatment (Articles 8.4 and 10.3) 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 Korea reserves the right to adopt or maintain any measure with respect to the provision of law enforcement and correctional services, and the following services to the extent that they are social services established or maintained for public purposes: income security or insurance, social security or insurance, social welfare, public training, public utilities, public transport, public housing, health, and child care. Existing Measures : -
12.
Sector : All Sectors (not including Financial Services) Obligation Concerned : Market Access (Article 8.5) Description : Trade in Services Korea reserves the right to adopt or maintain any measure that is not inconsistent with Korea’s obligations under Article XVI of GATS as set out in Korea’s Schedule of Specific Commitments under the GATS (GATS/SC/48, GATS/SC/48/Suppl.1, GATS/SC/48/Suppl.1/Rev.1, GATS/SC/48/Suppl.2, GATS/SC/48/Suppl.3, and GATS/SC/48/Suppl.3/Rev.1). For the purposes of this entry only, Korea’s Schedule of Specific Commitments under the GATS is subject to the following modifications: (a) for any sector and subsector with regard to which List A contains an entry (other than an entry with regard to “All Sectors”) that does not list Market Access as one in the Obligations Concerned element, “None” is inscribed in the Market Access column for modes 1, 2, and 3, and “Unbound except as indicated in the Horizontal commitments section” is inscribed for mode 4; (b) for any sector and subsector with regard to which List A contains an entry (other than an entry with regard to “All Sectors”) that lists a limitation to the Market Access obligation, that limitation is inscribed in the Market Access column with regard to the appropriate mode of supply; and (c) for any sector and subsector listed in Appendix A, Korea’s Schedule of Specific Commitments under the GATS is modified as indicated in the Appendix A. These modifications shall not affect any limitation relating to subparagraph 2(f) of of Article XVI of GATS inscribed in the Market Access column of Korea’s Schedule of Specific Commitments under the GATS. For greater certainty, an entry of “None” in the Market Access column of Korea’s Schedule of Specific Commitments under the GATS shall not be construed to alter the application of Article 8.11 (Local Presence) as modified by Article 8.8 (Schedules of Non-Conforming Measures). Existing Measures : -
13.
Sector : All Sectors Obligation Concerned : Most-Favoured-Nation Treatment (Articles 8.6 and 10.4) Description : Trade in Services and Investment Korea reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral international agreement in force or signed prior to the date of entry into force of this Agreement (6). Korea reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral international agreement in force or signed after the date of entry into force of this Agreement involving: (a) aviation; (b) fisheries; (c) maritime matters, including salvage; (d) railroad transportation; or (e) telecommunications. Existing Measures : -
14.
Sector : Environmental Services - Treatment and Supply Services for Potable Water; Collection and Treatment Services for Municipal Sewage; Collection, Transportation, and Disposal Services for Municipal Refuse; Sanitation and Similar Services; Nature and Landscape Protection Services (except for Environmental Impact Assessment Services) Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Description : Trade in Services and Investment Korea reserves the right to adopt or maintain any measure with respect to the following environmental services: treatment and supply of potable water; collection and treatment of municipal sewage; collection, transportation, and disposal of municipal refuse; sanitation and similar services; and nature and landscape protection services (except for environmental impact assessment services). This entry shall not apply to the supply of the aforementioned services pursuant to a contract between private parties, to the extent that private supply of such services is permitted under relevant laws and regulations. Existing Measures : -
15.
Sector : Atomic Energy - Nuclear Power Generation; Manufacturing and Supply of Nuclear Fuel; Nuclear Materials; Radioactive Waste Treatment and Disposal (including treatment and disposal of spent and irradiated nuclear fuel); Radioisotope and Radiation Generation Facilities; Monitoring Services for Radiation; Services Related to Nuclear Energy; Planning, Maintenance, and Repair Services Obligation Concerned : National Treatment (Articles 8.4 and 10.3) 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 Korea reserves the right to adopt or maintain any measure with respect to the atomic energy industry. Existing Measures : -
16.
Sector : Energy Services - Electric Power Generation other than Nuclear Power Generation; Electric Power Transmission, Distribution, and Sales; Electricity Business Obligation Concerned : National Treatment (Articles 8.4 and 10.3) 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 Korea reserves the right to adopt or maintain any measure with respect to electric power generation, transmission, distribution, and sales. Any such measure shall not decrease the level of foreign ownership permitted in the electric power industry as provided by the entry in List A related to Energy Industry (electric power). Notwithstanding this entry, Korea shall not adopt or maintain any measure inconsistent with subparagraph 1(f) of Article 10.6 (Prohibition of Performance Requirements). Existing Measures : -
17.
Sector : Energy Services - Gas Industry Obligation Concerned : National Treatment (Articles 8.4 and 10.3) 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 Korea reserves the right to adopt or maintain any measure 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 foreign ownership permitted in the gas industry as provided by the entry in List A related to Energy Industry (gas industry). Existing Measures : -
18.
Sector : Distribution Services - Commission Agents’ Services, Wholesaling and Retailing of Agricultural Raw Materials and Live Animals (nong chuk san mul) Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Description : Trade in Services and Investment Korea reserves the right to adopt or maintain any measure with respect to: (a) commission agents’ services of agricultural raw materials, live animals, food products, beverage; (b) wholesaling (including importation) services of grain, meat, poultry, grain powder, ginseng, red ginseng, fertilisers; and (c) retailing services of rice, ginseng and red ginseng. Existing Measures : -
19.
Sector : Transportation Services – Road Transportation Services (not including Freight Road Transportation Services Related to Courier Services) Obligation Concerned : National Treatment (Articles 8.4 and 10.3) 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 Korea reserves the right to adopt or maintain any measure with respect to road transportation services, not including road transportation of containerised freight (excluding cabotage) by international shipping companies and road transportation services related to courier services. Existing Measures : -
20.
Sector : Transportation Services - Internal Waterways Transportation Services and Space Transportation Services Obligation Concerned : National Treatment (Articles 8.4 and 10.3) 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 Korea reserves the right to adopt or maintain any measure with respect to internal waterways transportation services and space transportation services. Existing Measures : -
21.
Sector : Transportation Services - Storage and Warehousing Services Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Description : Trade in Services and Investment Korea reserves the right to adopt or maintain any measure with respect to storage and warehousing services related to agricultural, fisheries and livestock products. Existing Measures : -
22.
Sector : Communication Services - Non-monopoly Postal Services Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Description : Trade in Services and Investment Korea reserves the right to adopt or maintain any measure with respect to the Minister of Science and ICT not needing authorisation from the Minister of Land, Infrastructure and Transport in determining the total number of vehicles that may belong to the Ministry of Science and ICT and allocating the vehicles to postal offices. The Korean Postal Authority reserves exclusive rights for collecting, processing and delivering domestic and international letters. The exclusive rights of the Korean Postal Authority include the right of access to its postal network and operation thereof. Existing Measures : Postal Service Act Regulations on Management of Common-Purpose Motor Vehicles Foreign Investment Promotion Act
23.
Sector : Communication Services - Broadcasting Services Obligation Concerned : 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 Korea reserves the right to adopt or maintain any measure relating to broadcasting services. Existing Measures : -
24.
Sector : Communication Services - Broadcasting and Telecommunications Services Obligation Concerned : 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 Korea reserves the right to adopt or maintain any measure with respect to subscription-based video services. For the purposes of this entry, subscription-based video services means subscription-based video services that are supplied to end-users over any type of transmission network and includes Internet Protocol-based Television (IPTV), Interactive Broadcasting and Over-the-top Content Services. Existing Measures : Internet Multimedia Broadcasting Act Enforcement Decree of the Internet Multimedia Broadcasting Act
25.
Sector : Communication Services - Broadcasting and Audio-Visual Services Obligation Concerned : Most-Favoured-Nation Treatment (Articles 8.6 and 10.4) Prohibition of Performance Requirements (Article 10.6) Description : Trade in Services and Investment Korea reserves the right to adopt or maintain any preferential co-production arrangement for film or television productions. Official co-production status, which may be granted to a co-production produced under such a co-production arrangement, confers national treatment on works covered by a co-production arrangement. Existing Measures : Promotion of the Motion Pictures and Video Products Act Notice on Programming
26.
Sector : Communication Services - Broadcasting and Audio-Visual Services Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Prohibition of Performance Requirements (Article 10.6) Description : Trade in Services and Investment Korea reserves the right to adopt or maintain any measure setting criteria for determining whether broadcasting or audio-visual programmes are Korean. Existing Measures : Promotion of the Motion Pictures and Video Products Act Enforcement Decree of Promotion of the Motion Pictures and Video Products Act Enforcement Regulations of Promotion of the Motion Pictures and Video Products Act Notice on Programming
27.
Sector : Business Services - Real Estate Services (not including Real Estate Brokerage and Appraisal Services) Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Description : Trade in Services and Investment Korea reserves the right to adopt or maintain any measure with respect to real estate development, supply, management, sale, and rental services, except for brokerage and appraisal services. Existing Measures : -
28.
Sector : Business Services - Insolvency and Receivership Services Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Local Presence (Article 8.11) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Korea reserves the right to adopt or maintain any measure with respect to insolvency and receivership services. Korea reserves the right to adopt or maintain any measure with respect to corporate restructuring services, including corporate restructuring companies, corporate restructuring partnerships, and corporate restructuring vehicles. Existing Measures : -
29.
Sector : Digital Audio or Video Services Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Most-Favoured-Nation Treatment (Articles 8.6 and 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Description : Trade in Services and Investment Korea reserves the right to adopt any measure to ensure that, upon a finding by the Government of Korea that Korean digital audio or video content or genres thereof is not readily available to Korean consumers, access to such content is not unreasonably denied to Korean consumers. With respect to digital audio or video services targeted at Korean consumers, Korea reserves the right to adopt any measure to promote the availability of such content. For the purposes of this entry, digital audio or video service means a service that provides streaming audio content, films or other video downloads or streaming video content regardless of the type of transmission (including through the Internet), but does not include broadcasting services as defined by the Broadcasting Act as of the date of entry into force of this Agreement or subscription-based video services as defined in the Communications Services – Broadcasting and Telecommunications Services entry in List B. Existing Measures : Content Industry Promotion Act
30.
Sector : Business Services - Cadastral Surveying Services and Cadastral Map-Making Services Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Description : Trade in Services and Investment Korea reserves the right to adopt or maintain any measure with respect to cadastral surveying services and cadastral map related services. Existing Measures : -
31.
Sector : Business and Environmental Services - Examination, Certification, and Classification of Agricultural Raw Materials and Live Animals (nong chuk san mul) Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Local Presence (Article 8.11) Description : Trade in Services and Investment Korea reserves the right to adopt or maintain any measure with respect to examination, certification, and classification of agricultural raw materials and live animal products. Existing Measures : -
32.
Sector : Business Services - Services Incidental to Agriculture, Hunting, Forestry, and Fishing Obligation Concerned : National Treatment (Articles 8.4 and 10.3) 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 Korea reserves the right to adopt or maintain any measure with respect to services incidental to agriculture, forestry, and livestock, including genetic improvement, artificial insemination, rice and barley polishing, and activities related to a rice processing complex. Korea reserves the right to adopt or maintain any measure with respect to the supply of services incidental to agriculture, hunting, forestry, and fishing by the Agricultural Cooperatives, the Forestry Cooperatives, and the Fisheries Cooperatives. Existing Measures : -
33.
Sector : Fishing Obligation Concerned : National Treatment (Article 10.3) Description : Investment Korea reserves the right to adopt or maintain any measure with respect to fishing activities in Korea’s territorial waters and Exclusive Economic Zone. Existing Measures : -
34.
Sector : Publishing of Newspapers and Periodicals Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Local Presence (Article 8.11) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Korea reserves the right to adopt or maintain any measure with respect to the publishing (including printing and distribution) of newspapers and periodicals. Existing Measures : Act on the Promotion of Newspapers, Etc. Enforcement Decree of the Act on the Promotion of Newspapers, Etc. Act on Promotion of Periodicals, including Magazines Enforcement Decree of the Act on Promotion of Periodicals, including Magazines
35.
Sector : Education Services - Pre-Primary, Primary, Secondary, Higher, Adult and Other Education Obligation Concerned : National Treatment (Articles 8.4 and 10.3) 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 Korea reserves the right to adopt or maintain any measure with respect to pre-primary, primary, and secondary education; health and medicine-related higher education; higher education for prospective pre-primary, primary, and secondary teachers; professional graduate education in law; distance education at all education levels (except adult education services other than health and medicine-related adult education services, provided that such services do not confer academic credit, diplomas, or degrees); and other education services. Existing Measures : -
36.
Sector : Social Services - Human Health Services Obligation Concerned : National Treatment (Articles 8.4 and 10.3) 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 Korea reserves the right to adopt or maintain any measure (7) with respect to human health services. Existing Measures : -
37.
Sector : Audiovisual Services - Motion Picture Promotion, Projection, Advertising, or Post-Production Services Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Most-Favoured-Nation Treatment (Articles 8.6 and 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Description : Trade in Services and Investment Korea reserves the right to adopt or maintain any measure with respect to motion picture promotion, projection, advertising, or post-production services. Existing Measures : -
38.
Sector : Other Recreational Services Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Description : Trade in Services and Investment Korea reserves the right to adopt or maintain any measure with respect to tourism in rural, fishery, and agricultural sites. Existing Measures : -
39.
Sector : Gambling and Betting Services Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Most-Favoured-Nation Treatment (Articles 8.6 and 10.4) Local Presence (Article 8.11) Prohibition on Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Korea reserves the right to adopt or maintain any measure with respect to gambling and betting services. For greater certainty, “gambling and betting” includes such services supplied through electronic transmission and services that use sa-haeng-seong-ge-im-mul. “Sa-haeng-seong-ge-im-mul”, as defined in Article 2 of Korea’s Game Industry Promotion Act, includes, inter alia, gaming instruments which result in financial loss or gain through betting or by chance. Existing Measures : Tourism Promotion Act Special Act on the Assistance to the Development of Abandoned Mine Areas National Sports Promotion Act Enforcement Decree of the National Sports Promotion Act Korea Racing Association Act Traditional Bull Fighting Act Bicycle and Motorboat Racing Act Game Industry Promotion Act Act on Special Cases concerning Regulation and Punishment of Speculative Acts, Etc. National Gambling Control Commission Act Enforcement Decree of National Gambling Control Commission Act
40.
Sector : Recreational, Cultural, and Sporting Services Obligation Concerned : National Treatment (Articles 8.4 and 10.3) 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 Korea reserves the right to adopt or maintain any measure with respect to recreational, cultural, and sporting services. Korea reserves the right to adopt or maintain any measure with respect to the conservation and restoration of cultural heritage and properties, including the excavation, inspection, appraisal, dealing, or maintenance of cultural heritage and properties. Korea shall ensure that this entry is not inconsistent with the Performance Services and News Agency (News-tong-sin-sa) Services entries in List A. Existing Measures : Cultural Heritage Protection Act Act on Protection and Inspection of Buried Cultural Heritage Act on Cultural Heritage Maintenance, Etc.
41.
Sector : Legal Services - Foreign Legal Consultants Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Most Favoured-Nation Treatment (Articles 8.6 and 10.4) Local Presence (Article 8.11) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment 1. Korea reserves the right to adopt or maintain any measures including: (a) restrictions on certification, approval, registration, admission, and supervision of, and any other requirements with respect to, foreign country-licensed lawyers or foreign law firms supplying any type of legal services in Korea; (b) restrictions on foreign country-licensed lawyers or foreign law firms entering into partnerships, commercial associations, affiliations, or any other type of relationship regardless of legal form, with byeon-ho-sa (Korean-licensed lawyers), Korean law firms, beop-mu-sa (Korean-certified judicial scriveners), byeon-ri-sa (Korean-licensed patent attorneys), gong-in-hoe-gye-sa (Korean-certified public accountants), se-mu-sa (Korean-certified tax accountants), or gwan-se-sa (Korean customs brokers); (c) restrictions on foreign country-licensed lawyers or foreign law firms hiring byeon-ho-sa (Korean-licensed lawyers), beop-mu-sa (Korean-certified judicial scriveners), byeon-ri-sa (Korean-licensed patent attorneys), gong-in-hoe-gye-sa (Korean-certified public accountants), se-mu-sa (Korean certified tax accountants), or gwan-se-sa (Korean customs brokers) in Korea; and, (d) restrictions on senior management and the board of directors of legal entities supplying foreign legal consulting services, including with respect to the chairman. 2. Notwithstanding paragraph 1, Korea shall allow, subject to certain requirements consistent with this Agreement, each Party’s law firms to establish representative offices (Foreign Legal Consultant (FLC) offices) in Korea and attorneys licensed in each Party to provide legal advisory services on laws of the jurisdiction where they are licensed and public international law as FLCs in Korea. However, they shall not be engaged in: (a) representation for juridical or statutory procedures in courts and other government agencies as well as preparation of legal documents for such procedures; (b) legal representation for the entrustment of the preparation of notarial deeds; (c) activities concerning labour affairs consulting services or a legal case whose objective is the acquisition or loss or change of rights concerning real property in Korea, intellectual property rights, mining rights or other rights arising upon registration thereof with government agencies in Korea; and (d) activities in legal cases concerning family relations or inheritance, in which a Korean national is involved as a party or the property concerned is located in Korea. For transparency purposes: (a) A foreign lawyer who wishes to practice law as a FLC in Korea must be approved by the Minister of Justice, must register with the Korean Bar Association, must have practiced law for at least three years in the jurisdiction where he or she is qualified as a lawyer, and must be in good standing of the legal profession in the jurisdiction. (b) Permission of the Minister of Justice is required for the establishment of a representative office in Korea. The representative office consists of a FLC or FLCs approved by the Minister of Justice. It must have credibility and expertise, and sufficient capability to compensate for damages caused to the client, if any. The chief of the representative office must have practiced law for at least five years, including three years in the jurisdiction of his or her qualification. (c) A representative office can conduct profit-making activities provided that such presence in Korea maintains proper business plans and financial bases and must observe the Foreign Legal Consultant Act, its presidential decree and enforcement rule. (d) For the purpose of this entry, only the law firm which is organised under relevant law of each Party and headquartered in each Party can establish its representative office in Korea. Any type of subordinate or dependent legal entity, including a branch, a local office, a subsidiary or a joint-venture firm of the law firm of a non-Party shall not be permitted to establish its representative office in Korea. For the purposes of this entry, each Party’s law firm means a law firm organised under each Party’s laws and headquartered in each Party. 3. For greater certainty, (a) foreign lawyers are permitted temporary practice of and representation in international arbitration case without registering as FLC in Korea, provided that their period of stay is less than 90 days in any given calendar year. International arbitration case means a civil or commercial arbitration case for which Korea is the place of arbitration and to which statutes of a country other than Korea, a treaty concluded between Korea and a foreign country, a treaty among countries other than Korea or generally-accepted customary international law is or can be applied. (b) Use of firm name is permitted, provided that it is used with reference to "Foreign legal consultants’ office" in Korean. Existing Measures : -
42.
Sector : Professional Services - Foreign Certified Public Accountants Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Most Favoured-Nation Treatment (Articles 8.6 and 10.4) Local Presence (Article 8.11) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Korea reserves the right to adopt or maintain any measure with respect to public accountancy services. Foreign public accountants intending to provide accountancy services in Korea must be domestically licensed and registered under the Certified Public Accountant Act. Their offices must be established within Korea. A Korean accounting firm or office may, by paying an annual membership fee, acquire membership to international accounting organisations which have world-wide business networks. The following services may be supplied to a Korean accounting firm or office through a membership contract: consultancy for foreign accounting standards and auditing, training of Certified Public Accountants (CPAs), transfer of auditing technology, and exchange of information. Existing Measures : -
43.
Sector : Professional Services - Foreign Certified Tax Accountants Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Most-Favoured-Nation Treatment (Articles 8.6 and 10.4) Local Presence (Article 8.11) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Korea reserves the right to adopt or maintain any measures with respect to se-mu-sa (Korean-certified tax accountants) services including those concerning ownership, partnership, nationality of executives and directors and the scope of services to be provided. Foreign-certified tax accountants intending to provide se-mu-sa (Korean-certified tax accountants) services in Korea must be domestically licensed and registered under the Certified Tax Accountant Act. Their offices must be established within Korea. Existing Measures : -
44.
Sector : Veterinary Services Obligation Concerned : National Treatment (Articles 8.4 and 10.3) 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 Korea reserves the right to adopt or maintain any measure with respect to veterinary services. Existing Measures : -
45.
Sector : Other Professional Services Obligation Concerned : National Treatment (Articles 8.4 and 10.3) 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 Korea reserves the right to adopt or maintain any measure with respect to other professional services, including labour affairs consulting services, patent attorney (byeon-ri-sa) services, and customs clearance services. Existing Measures : -
46.
Sector : Business Services Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Most-Favoured-Nation Treatment (Articles 8.6 and 10.4) Local Presence (Article 8.11) Description : Trade in Services and Investment Korea reserves the right to adopt or maintain any measure with respect to the exportation and re-exportation of controlled commodities, software, and technology. Only persons residing in Korea may apply for a licence to export or re-export such commodities, software, or technology. Existing Measures : -
47.
Sector : Transportation Services - Maritime Passenger Transportation and Maritime Cabotage Obligation Concerned : National Treatment (Articles 8.4 and 10.3) 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 Korea reserves the right to adopt or maintain any measure with respect to the provision of international maritime passenger transportation services, maritime cabotage, and the operation of Korean vessels, including the following measures: A person that supplies international maritime passenger transportation services must obtain a licence from the Minister of Oceans and Fisheries, which is subject to an economic needs test. Maritime cabotage is reserved for Korean vessels. Maritime cabotage includes maritime transportation between harbours located along the entire Korean peninsula and any adjacent islands. Korean vessel means: (a) a vessel owned by the Korean government, a state enterprise, or an institution established under the Ministry of Oceans and Fisheries; (b) a vessel owned by a Korean national; (c) a vessel owned by an enterprise organised under the Korean Commercial Code; (d) a vessel owned by an enterprise organised under foreign law that has its principal office in Korea and whose dae-pyo-ja (for example, a chief executive officer, president, or similar principal senior officer) is a Korean national. In the event there is more than one, all dae-pyo-ja must be Korean nationals. For greater certainty, measures relating to the landside aspects of port activities are subject to the application of Article 10.15 (Security Exceptions). Existing Measures : -
48.
Sector : Air Services Obligation Concerned : National Treatment (Articles 8.4 and 10.3) 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 Korea reserves the right to adopt or maintain any measure with respect to air services except aircraft repair and maintenance services, computer reservation system services and the selling and marketing of air transport services. Existing Measures : -
49.
Sector : Manufacturing of Liquor Obligation Concerned : Prohibition of Performance Requirements (Article 10.6) Description : Investment Korea reserves the right to adopt or maintain any measure with respect to manufacturing of liquor. Existing Measures : -
50.
Sector : Financial Services Obligation Concerned : National Treatment (Articles 8.4 and 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Articles 8.6 and 10.4) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Korea reserves the right to adopt or maintain any measure affecting the supply of financial services with respect to all obligations concerned, except as specified in Appendix B. Existing Measures : -
Appendix A.
For the following Sectors, Korea’s obligations under Article XVI of GATS as set out in Korea’s Schedule of Specific Commitments under the GATS(GATS/SC/48, GATS/SC/48/Suppl.1, GATS/SC/48/Suppl.1/Rev.1, GATS/SC/48/Suppl.2, GATS/SC/48/Suppl.3, and GATS/SC/48/Suppl.3/Rev.1) are improved as described.
| Sector or Sub-sector | Market Access Improvements |
| Research and Development Services: | |
| a. Research and development services on natural sciences | Insert new commitments with “None” for modes 1 and 2, “Unbound” for mode 3 and “Unbound except as indicated in the Horizontal Commitments section” for mode 4 |
| b. Research and development services on social sciences and humanities | Modify mode 1 and 2 limitations from “Unbound” to “None” |
| c. Interdisciplinary research and development services | Insert new commitments with “None” for modes 1 and 2, “Unbound” for mode 3 and “Unbound except as indicated in the Horizontal Commitments section” for mode 4 |
| Market research and public opinion polling services | Modify mode 1 and 2 limitations from “Unbound” to “None” |
| Services incidental to mining | Modify mode 1 and 2 limitations from “Unbound” to “None” |
| Packaging services | Modify mode 1 and 2 limitations from “Unbound” to “None” |
| Tourism and travel related services: | |
| a. Beverage serving services without entertainment Excluding rail and air transport related facilities in beverage serving services without entertainment | Insert new commitments with “Unbound*” for mode 1, “None” for mode 2 and 3 and “Unbound except as indicated in the Horizontal Commitments section” for mode 4 |
| b. Tour operator services | Insert new commitments with “None” for mode 1, 2 and 3 and “Unbound except as indicated in the Horizontal Commitments section” for mode 4 |
| c. Tourist Guides Services | Modify mode 3 from “Only travel agencies are allowed to supply tourist guide services” to “None” |
| Recreational, Cultural and Sporting Services | Insert new commitments with “Unbound” for mode 1, “None” for modes 2 and 3, “Unbound except as indicated in the Horizontal Commitments section” for mode 4 |
| D. Others | |
| Game Services (CPC 964**) |
Appendix B. Schedule of Specifics Commitments for Financial Services. Korea
EXPLANATORY NOTES
1. All the commitments in this Appendix are subject to entry requirements, domestic laws, regulations, rules, guidelines, terms and conditions of the Financial Services Commission (FSC) or any other relevant regulatory authorities in Korea, which are consistent with Article VI of GATS and paragraph 2 of the Annex on Financial Services of GATS.
2. Financial sectors are basically re-classified according to the category of the Annex 8A (Financial Services). Therefore the order of subsectors is different from that of the commitment in GATS/SC/48/Suppl.3/Rev.1.
3. Specific statements in the subsectors apply only to existing domestic financial services.
4. All financial services are subject to the following provisions.
(a) For prudential reasons within the context of the Annex 8A (Financial Services), Korea shall not be prevented from taking measures including requirements related to parent companies, the minimum capital requirement, minimum operating funds requirement, business worker's licence and approval for business activities.
(b) A financial institution must be established for only one business defined in related law and thus cannot engage in other business activities regulated by other relevant laws.
(c) Cross-border supply of financial services and supply through consumer movement may not be settled in Korean currency. After the establishment of a commercial presence, financial institutions may handle only transactions, denominated and settled in Korean currency, with residents. Approval is required for transactions denominated or settled in foreign currency or transactions with non-residents.
(d) Assets owned by branches must be kept within the territory of Korea. Capital of the head office is not recognised as the basis for determining the extent of funding and lending activities of domestic branches.
(e) Demand deposit interest rates are regulated.
(f) The management and operation of assets of a financial institution are restricted.
(g) A financial institution may not own non-business real estate. (h) Introduction of new financial products including derivatives is subject to approval.
Modes of Supply: 1) Cross-border Supply 2) Consumption abroad 3) Commercial presence
| Sector or Subsector | Limitations on Market Access | Limitations on National Treatment | Additional Commitments |
| A. Insurance and Insurance-related Services | |||
| Direct Insurance | |||
| a) Life insurance services Including accident and health insurance services | (1) Unbound (2) Unbound (3) Commercial presence is permitted only to foreign life insurance companies. Top executive personnel of each establishment must reside in Korea. | (1) Unbound (2) Unbound (3) None | |
| b) Non-life insurance services | (1) Unbound except for marine export or import cargo and aviation insurance. (2) Unbound (3) Commercial presence is permitted only to foreign non-life insurance companies. Top executive personnel of each establishment must reside in Korea. | (1) Unbound (2) Unbound (3) None | |
| c) Reinsurance and retrocession | (1) None (2) None (3) Commercial presence is permitted only to foreign reinsurance and retrocession insurance companies. Top executive personnel of each establishment must reside in Korea. | (1) None(2) None (3) None | |
| d) Insurance broking and agency services: - Brokerage | (1) Unbound (2) Unbound 3) Commercial presence is permitted only to foreign insurance brokerage companies. Top executive personnel of each establishment must reside in Korea. | (1) Unbound (2) Unbound ( (3) None | |
| - Agency | (1) Unbound (2) Unbound (3) None | (1) Unbound (2) Unbound (3) None | |
| Services auxiliary to insurance: applicable only to following subsectors): - Claim settlement and adjustment services (8) - Actuarial services | (1) None (2) Unbound (3) Commercial presence is permitted only to foreign claim settlement and adjustment companies and actuarial companies. Top executive personnel of each establishment must reside in Korea. | (1) None(2) None (3) None |
| B. Banking and other Financial services (excl. insurance) | |||
| a) Deposit (9) b) Lending (10) c) Financial leasing d) Payment and Money transmission e) Guarantees and commitments f) Foreign exchange services (12) g) Settlement and clearing (13) | (1) Unbound (2) Unbound (3) Commercial presence is permitted only to foreign financial institutions (except for financial leasing) which deal with the same services in their country of origin. A person may own up to 10 per cent of the stocks of a bank (up to 4 per cent in case of non-financial service business entity) and 15 per cent of the stocks of a provincial bank without the special authorisation of the relevant authorities (11). A person can own up to 100 per cent of a bank and a provincial bank with the special authorisation of the relevant authorities. Foreign exchange position is regulated. The oversold position of spot foreign exchange is US$ 5 million, or 3 per cent of capital (whichever is greatest). Deposit for specific purpose, such as housing subscription deposit, may be handled only by designated institutions. Securities savings and credit granting are subject to restriction of ceiling and operation. Lending to credit card members through such means as card loans is subject to limitation. For credit card services, maximum limits are applied to various rates such as fees and interest rates. The maturity of CDs shall be more than 30 days. Underlying transaction and documentation requirements apply to foreign exchange transactions. Underlying documentation requirements are exempt in the case of forward transactions. Mandatory lending to small-and-medium sized companies is required. Foreign currency loans are restricted with respect to ceiling and uses. Top executive personnel of financial leasing, credit granting and security savings companies must reside in Korea. | (1) Unbound (2) Unbound (3) None |
| h) Trading for own account or for account of customers, whether on an exchange, in an over-the-counter market or otherwise applicable only to the instruments as listed below - Money market instruments (including cheques, bills, certificates of deposit) - Foreign exchange - Financial Derivative products (including futures and options) - Exchange rate and interest Rate instruments (including swaps and forward rate agreements) - Transferable securities - Other negotiable instruments and financial assets (including bullion) | (1) Unbound (2) Unbound (3) Commercial presence is permitted only to foreign financial institutions which deal with the same instruments in their country of origin. Representative offices may be established by pre-notification. Top executive personnel of each establishment must reside in Korea. | (1) Unbound (2) Unbound (3) None | |
| i) Participation in issues of all kinds of securities - Security issue - Underwriting - Placement - Other services related to securities | (1) Unbound (2) Unbound (3) Commercial presence is permitted only to foreign financial institutions which deal with the issuing of all kinds of securities. Representative offices may be established by pre-notification. Top executive personnel of each establishment must reside in Korea. | (1) Unbound (2) Unbound (3) None | |
| j) Asset management, applicable only to services listed below: - Cash or portfolio management - All forms of collective investment management - Custody - Trust (14) (including investment discretionary advisory service) | (1) Unbound (2) Unbound (3) Commercial presence is permitted only to foreign asset management companies. Representative offices may be established by pre-notification. To handle a trust business, approval (two types) is required from the Financial Services Commission both for engaging in businesses other than the main banking businesses and for engaging in the trust business. Unbound for real estate trust businesses. Top executive personnel of each establishment must reside in Korea. | (1) Unbound (2) Unbound (3) None |
| k) Credit information services | (1) Unbound (2) Unbound (3) Unbound except for equity participation of less than 50 per cent in existing financial information companies. | (1) Unbound (2) Unbound (3) None | |
| l) Advisory, intermediation and other auxiliary financial services, applicable only to services listed below: - Investment advice | (1) Unbound (2) Unbound (3) Commercial presence is permitted only to foreign investment advisory companies. Representative offices may be established by pre-notification. Top executive personnel of each establishment must reside in Korea. | (1) Unbound (2) Unbound (3) None | |
| - Credit rating and analysis | (1) Unbound (2) Unbound (3) Credit rating companies should be designated by the relevant authorities to assess the credit rating of companies which may wish to issue non-guaranteed corporate bonds and commercial papers. | (1) Unbound (2) Unbound (3) None |
New Zealand
List A. Explanatory Notes
1. This List is made pursuant to Chapter 10 (Investment) only. Any aspects of this List which relate to investment in services that are covered by Chapter 8 (Trade in Services) only are retained in this List solely for transparency purposes.
2. This List sets out, pursuant to Article 10.8 (Reservations and Non-Conforming Measures), New Zealand’s existing measures that are not subject to some or all of the obligations imposed by:
(a) Article 10.3 (National Treatment);
(b) Article 10.4 (Most-Favoured-Nation Treatment);
(c) Article 10.6 (Prohibition of Performance Requirements); or
(d) Article 10.7 (Senior Management and Board of Directors).
3. Each entry in New Zealand’s List sets out the following elements:
(a) Sector refers to the sector in which the entry is made;
(b) Type of Obligation specifies the obligations referred to in paragraph 2;
(c) Level of Government indicates the level of government maintaining the listed measures;
(d) Source of Measure identifies the measures for which the entry is made. A measure cited in the Source of Measure 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; and (e) Description of Measure sets out the non-conforming measure to which the entry applies.
4. In accordance with Article 10.8 (Reservations and Non-Conforming Measures), the Articles of this Agreement specified in the Type of Obligation element of an entry do not apply to the measure identified in the Description of Measure element of that entry.
5. All elements of the entry shall be considered in their totality for the purposes of its interpretation.
1.
Sector : All Sectors Level of Government : Central Type of Obligation : National Treatment (Article 10.3) Description of Measure : Investment 1. Consistent with New Zealand’s financial reporting regime established under the Companies Act 1993 and Financial Reporting Act 2013, the following types of entities are required to prepare financial statements that comply with generally accepted accounting practice, have those statements audited and registered with the Registrar of Companies (unless exceptions to any of those requirements apply): a) any body corporate that is incorporated outside New Zealand (an “overseas company”) that carries on business in New Zealand within the meaning of the Companies Act 1993 and which is “large” 1; b) any “large” New Zealand company in which shares that in aggregate carry the right to exercise or control the exercise of 25 per cent or more of the voting power at a meeting of the company are held by2: (i) a subsidiary of a body corporate incorporated outside New Zealand; (ii) a body corporate incorporated outside New Zealand; or (iii) a person not ordinarily resident in New Zealand; c) any “large” company incorporated in New Zealand which is a subsidiary of an overseas company (3). 2. If a company is required to prepare financial statements and if they have one or more subsidiaries, they must, instead of preparing financial statements in respect of themselves, prepare group financial statements that comply with generally accepted accounting practice in relation to that group. This obligation does not apply if: a) that company (A) is itself a subsidiary of a body corporate (B), where body corporate (B) is: (i) incorporated in New Zealand; or (ii) registered or deemed to be registered under Part 18 of the Companies Act 1993; and b) group financial statements in relation to a group comprising B, A, and all other subsidiaries of B that comply with generally accepted accounting practice are completed; and c) a copy of the group financial statements referred to in paragraph (b) and a copy of the auditor’s report on those statements are delivered for registration under the Companies Act 1993 or for lodgement under another Act. 3. If an overseas company is required to prepare: a) financial statements under the Companies Act 1993 it must also, if its New Zealand business meets the asset and revenue thresholds that apply in respect of “large” overseas companies, prepare, in addition to the financial statements of the large overseas company itself, financial statements for its New Zealand business prepared as if that business were conducted by a company formed and registered in New Zealand; and b) group financial statements under the Companies Act 1993, and if the group’s New Zealand business meets the asset and revenue thresholds that apply in respect of “large” overseas companies, the group financial statements that are prepared must include, in addition to the financial statements of the group, financial statements for the group’s New Zealand business prepared as if the members of the group were companies formed and registered in New Zealand. Source of Measure : - Companies Act 1993 - Financial Reporting Act 2013