- a foreign government or a foreign person;
- 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
- an enterprise organised under Korean law in which a foreign person holds 50 per cent or more of share or equity interest.
A foreign person that publishes periodicals may establish a branch or office in Korea subject to authorisation from the Minister of Culture, Sports and Tourism. From the date this Agreement enters into force, such branch or office may print and distribute its periodicals in Korea in the original language, provided that such periodicals are edited in the territory of Australia.
Distribution Services - Agriculture and Livestock
Obligations Concerned:
National Treatment (Articles 7.2 and 11.3)
Market Access (Article 7.4)
Measures:
Grain Management Act (Law No. 11641, March 22, 2013), Article 12
Livestock Industry Act (Law No. 11690, March 23, 2013), Articles 30 and 34
Seed Industry Act (Law No. 11704, March 23, 2013), Article 142
Feed Management Act (Law No. 11690, March 23, 2013), Article 6
Ginseng Industry Act (Law No. 11690, March 23, 2013), Article 20
Foreign Investment Promotion Act (Law No. 11535, December 11, 2012), Article 4
Enforcement Decree of the Foreign Investment Promotion Act (Presidential Decree No. 24638, June 28, 2013), Article 5
Regulations on Foreign Investment and Introduction of Technology (Notice of the Ministry of Trade, Industry and Energy, No. 2013-37, May 30, 2013), Attached table 2
Act on Distribution and Price Stabilization of Agricultural and Fishery Products (Law No. 12059, August 13, 2013), Articles 15, 17 and 43
Notice on TRQ Products (Ministry of Agriculture, Food and Rural Affairs Notice No. 2013-29, May 16, 2013), Articles 14 and 20-2
Description:
Cross-Border 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 7.2 (National Treatment) and 7.4 (Market Access) do not prevent Korea from adopting or maintaining any measure with respect to the administration of the WTO Tariff-Rate-Quota.
Communication Services - Broadcasting Services
Obligations Concerned:
National Treatment (Articles 7.2 and 11.3)
Performance Requirement (Article 11.9)
Senior Management and Boards of Directors (Article 11.10)
Market Access (Article 7.4)
Local Presence (Article 7.5)
Measures:
Broadcasting Act (Law No. 12093, August 13, 2013) Articles 8, 9, 12, 13 through 18, 48, and 69 through 71
Enforcement Decree of the Broadcasting Act (Presidential Decree No. 24763, September 26, 2013), Article 57
Korea Educational Broadcasting Corporation Act (Law No. 12093, August 13, 2013), Article 11
Description:
Cross-Border Trade in Services and Investment
Neither a foreign national nor 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 serve as a dae-pyo-ja (for example, a chief executive officer, president, or similar principal senior officer) or chief programmer of a terrestrial broadcaster, satellite broadcasting operator, cable system operator, program provider, signal transmission network business operator, audio cable operator, or relay-only cable operator.
All members of the boards of directors of the Korea Broadcasting System (KBS) and the Korea Educational Broadcasting System (EBS) must be Korean nationals.
A license for a terrestrial broadcaster, cable system operator, satellite broadcasting operator, signal transmission network business operator, or a program provider may only be granted to or held by the Government of Korea, a local government, or a juridical person organised under Korean law.
A license for a relay-only cable operator or an audio cable operator may only be granted to or held by the Government of Korea, a local government, or a Korean person.
A license for a terrestrial broadcaster, relay-only cable operator, cable system operator, satellite broadcasting operator, or a program provider that is engaged in jong-hap-pyeon-sung (multi-genre programming), home shopping, or bo-do (news reporting) is granted through heo-ga (permission), whereas a license for a signal transmission network business operator, audio cable operator or a program provider that is not engaged in jong-hap-pyeon-sung (multi-genre programming), home shopping, or bo-do (news reporting) is granted through deung-rok (registration).
A foreign government, foreign person, or deemed foreign person may not hold:
- an equity interest in a terrestrial broadcaster, relay-only cable operator, or program provider that is engaged in jong-hap-pyeon-sung (multi-genre programming) or bo-do (news reporting);
- in the aggregate more than 33 per cent of the total issued stocks or equity interest of a satellite broadcasting operator; or
- in the aggregate more than 49 per cent of the total issued stocks or equity interest of a cable system operator, a signal transmission network business operator, or a program provider that is not engaged in jong-hap-pyeon-sung (multi-genre programming) or bo-do (news reporting).
For transparency purposes, no single person (including "specially related person" under Article 3 of the Enforcement Decree of the Broadcasting Act) may hold in the aggregate more than 30 per cent of the total issued stocks or equity interest of a terrestrial broadcaster or a program provider that is engaged in jong-hap-pyeon-sung (multi-genre programming) or bo-do (news reporting), unless such broadcaster primarily provides religious or missionary content. Such limitations do not apply to the Government of Korea and a corporation established by a special law (for example, Mun-hwa Broadcasting Corporation (MBC), which is established under the Foundation for Broadcast Culture Act).
A terrestrial broadcaster, program provider, cable system operator, or satellite broadcasting operator must include Korean content of at least the ratio publicly notified by the Korea Communications Commission, within the limit referred to in the following subparagraphs:
- in the case of a terrestrial broadcaster or program provider that uses terrestrial broadcasting to provide its programming, not less than 60 per cent but not more than 80 per cent of the quarterly programming hours per channel;
- in the case of a cable system operator or a satellite broadcasting operator, not less than 40 per cent but not more than 70 per cent of the quarterly programming hours per channel; and
- in the case of a program provider that does not use terrestrial broadcasting to provide its programming, not less than 20 per cent but not more than 50 per cent of the quarterly programming hours per channel.
A broadcaster must include domestically produced movies, animations and popular music of at least the ratio publicly notified by the Korea Communications Commission, within the limit referred to in the following subparagraphs:
- movies: not less than 20 but not more than 40 per cent of the yearly programming hours of the channel concerned;
- animations: not less than 30 but not more than 50 per cent of the yearly programming hours of the channel concerned; and
- popular music: not less than 50 but not more than 80 per cent of the yearly programming hours of the channel concerned.
However, a broadcaster engaged in specialised programming pertaining to religion or education must include domestically produced movies and animations of at least the ratio publicly notified by the Korea Communications Commission, within the limit of not more than 40 per cent of the yearly programming hours of movies or animations of the channel concerned.
Korea shall permit no more than 60 per cent of a terrestrial broadcaster's, cable system operator's, satellite broadcasting operator's, or program provider's quarterly programming hours of foreign content per genre to be foreign content of a single country (single-country content ceiling).
For the purposes of this entry:
- "program provider engaged in jong-hap-pyeon-sung (multi-genre programming)" means a program provider that offers a combination of news, entertainment, drama, movies, music programming, etc.;
- "deemed foreign person" means a juridical person organised under Korean law in which a foreign government or a foreign person holds in the aggregate more than 50 per cent of the juridical person's total issued stocks or equity interest, or whose largest shareholder is a foreign government or a foreign person; and
- a "satellite broadcasting operator" includes an operator that uses or leases capacity on a satellite registered in a foreign country.
Energy Industry - Electric Power Generation Other Than Nuclear Power Generation; Electric Power Transmission, Distribution and Sales
Obligations Concerned:
National Treatment (Article 11.3) (1)
Measures:
Financial Investment Services and Capital Markets Act (Law No. 11845, May 28, 2013), Article 168
Enforcement Decree of the Financial Investment Services and Capital Markets Act (Presidential Decree No. 24697, August 27, 2013), Article 187
Foreign Investment Promotion Act (Law No. 11535, December 11, 2012), Articles 4 and 5
Enforcement Decree of the Foreign Investment Promotion Act, (Presidential Decree No. 24638, June 28, 2013), Article 5
Consolidated Public Notice for Foreign Investment (Public Notice of the Ministry of Trade, Industry and Energy No. 2013-102, May 27, 2013), Attached Table
Designation of Public Corporation (Notice of the Ministry of Finance and Economy, No. 2000-17, September 28, 2000)
Financial Investment Service Regulations (Financial Services Commission Notice No. 2013-40, December 4, 2013), Article 6-2
Description:
Investment
The aggregate foreign share of 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.
Energy Industry - Gas Industry
Obligations Concerned:
National Treatment (Article 11.3) (2)
Measures:
Act on the Improvement of Managerial Structure and Privatization of Public Enterprises (Law No. 11845, May 28, 2013), Article 19
Financial Investment Services and Capital Markets Act (Law No. 11845, May 28, 2013), Article 168
Foreign Investment Promotion Act (Law No. 11535, December 11, 2012), Articles 4 and 5
Articles of Incorporation of the Korea Gas Corporation (August 9, 2013), Article 11
Description:
Investment
Foreign persons may not own in the aggregate more than 30 per cent of the equity of KOGAS.
Recreational, Cultural, and Sporting Services - Motion Picture Projection Services
Obligations Concerned:
Performance Requirements (Article 11.9)
Market Access (Article 7.4)
Measures:
Act on Promotion of Motion Pictures and Video Products (Law No. 11902, July 16, 2013), Articles 2, 27 and 40
Enforcement Decree of the Act on Promotion of Motion Pictures and Video Products (Presidential Decree No. 24036, August 13, 2012), Article 19
Description:
Cross-Border Trade in Services and Investment
Cinema operators must project Korean motion pictures for at least 73 days per year at each screen in Korea.
II. Annex
Explanatory notes
- The Schedule of a Party to this Annex sets out, pursuant to Articles 7.6 (Non-Conforming Measures - Cross-Border Trade in Services) and 11.12 (Non-Conforming Measures - Investment), the specific sectors, sub-sectors or activities for which that Party may maintain existing, or adopt new or more restrictive, measures that do not conform with obligations imposed by:Article 7.2 (National Treatment - Cross-Border Trade in Services) or 11.3 (National Treatment - Investment);Article 7.3 (Most-Favoured-Nation Treatment - Cross-Border Trade in Services) or 11.4 (Most-Favoured-Nation Treatment - Investment);Article 7.4 (Market Access- Cross-Border Trade in Services);Article 7.5 (Local Presence- Cross-Border Trade in Services);Article 11.9 (Performance Requirements- Investment); orArticle 11.10 (Senior Management and Boards of Directors- Investment).
- Article 7.2 (National Treatment - Cross-Border Trade in Services) or 11.3 (National Treatment - Investment);
- Article 7.3 (Most-Favoured-Nation Treatment - Cross-Border Trade in Services) or 11.4 (Most-Favoured-Nation Treatment - Investment);
- Article 7.4 (Market Access- Cross-Border Trade in Services);
- Article 7.5 (Local Presence- Cross-Border Trade in Services);
- Article 11.9 (Performance Requirements- Investment); or
- Article 11.10 (Senior Management and Boards of Directors- Investment).
- Each Schedule entry sets out the following elements:Sector refers to the sector for which the entry is made;Obligations Concerned specifies the obligation(s) referred to in paragraph 1 that, pursuant to Articles 7.6.2 and Article 11.12.2, do not apply to the sectors, sub-sectors or activities listed in the entry;Description sets out the scope of the sector, sub-sector or activities covered by the entry; andExisting Measures identifies, for transparency purposes, existing measures that apply to the sector, sub-sector or activities covered by the entry.
- Sector refers to the sector for which the entry is made;
- Obligations Concerned specifies the obligation(s) referred to in paragraph 1 that, pursuant to Articles 7.6.2 and Article 11.12.2, do not apply to the sectors, sub-sectors or activities listed in the entry;
- Description sets out the scope of the sector, sub-sector or activities covered by the entry; and
- Existing Measures identifies, for transparency purposes, existing measures that apply to the sector, sub-sector or activities covered by the entry.
- In accordance with Articles 7.6.2 and 11.12.2, the articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the sectors, sub-sectors and activities identified in the Description element of that entry.
- For Korea, a "foreign person" means a foreign national or an enterprise organised under the laws of another country.
Schedule of australia
Sector:
All Sectors
Obligations Concerned:
National Treatment (Articles 7.2 and 11.3)
Most-Favoured-Nation Treatment (Articles 7.3 and 11.4)
Market Access (Article 7.4)
Performance Requirements (Article 11.9)
Local Presence (Article 7.5)
Senior Management and Boards of Directors (Article 11.10)
Description:Cross-Border Trade in Services and Investment
Australia reserves the right to adopt or maintain any measure with respect to the supply of a service by the presence of natural persons, or other movement of natural persons, including immigration, entry or temporary stay, subject to the provisions of Chapter 10 (Movement of Natural Persons).
Existing Measures:Sector:
All Sectors
Obligations Concerned:
National Treatment (Articles 7.2 and 11.3)
Market Access (Article 7.4)
Performance Requirements (Article 11.9)
Local Presence (Article 7.5)
Senior Management and Boards of Directors (Article 11.10)
Description:Cross-Border Trade in Services and Investment
Australia reserves the right to adopt or maintain any measure according preferences to any indigenous person or organisation or providing for the favourable treatment of any indigenous person or organisation in relation to acquisition, establishment or operation of any commercial or industrial undertaking in the service sector.
Australia reserves the right to adopt or maintain any measure with respect to investment that accords preferences to any indigenous person or organisation or providing for the favourable treatment of any indigenous person or organisation.
For the purpose of this reservation, an indigenous person means a person of the Aboriginal race of Australia or a descendant of an indigenous inhabitant of the Torres Strait Islands.
Existing Measures:
Legislation and ministerial statements at all levels of government including:
Australia's foreign investment policy
Native Title Act 1993 (Cth)
Aboriginal Land Rights (Northern Territory) Act 1976 (Cth)
Aboriginal Land Rights Act 1983 (NSW)
Native Title (New South Wales) Act 1994 (NSW)
Aboriginal Land Act 1991 (Qld)
Torres Strait Islander Land Act 1991 (Qld)
Native Title (South Australia) Act 1994 (SA)
Maralinga Tjarutja Land Rights Act 1984 (SA)
AnanguPitjantjatjaraYankunytjatjara Land Rights Act 1981 (SA)
AnanguPitjantjatjaraYankunytjatjara Land Rights Regulations 2010 (SA)
Pitjantjatjara Land Rights Regulations 2003 (SA)
The statutory bodies that administer the AnanguPitjantjattjara Yankunytjatjara lands and the Maralinga Tjarutja lands
Mining Act 1971 (SA)
Opal Mining Act 1995 (SA)
Aboriginal Lands Act 1995 (Tas)
Traditional Owner Settlement Act 2010 (Vic)
Sector:
Disadvantaged Groups
Obligations Concerned:
National Treatment (Article 11.3)
Most-Favoured-Nation Treatment (Article 11.4)
Performance Requirements (Article 11.9)
Senior Management and Boards of Directors (Article 11.10)
Description:Investment
Australia 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 minority groups.
Existing Measures:Sector:
All Sectors
Obligations Concerned: