Australia - Korea, Republic of FTA (2014)
Schedule of australia
Introductory Note for the Schedule of Australia
- The Schedule of Australia to Annex III sets out:headnotes that limit or clarify the commitments of Australia with respect to the obligations described in subparagraphs (b) and (c);in Section A, pursuant to Article 8.9.1 (Non-Conforming Measures), the existing measures of Australia that do not conform with some or all of the obligations imposed by:Article 8.2 (National Treatment);Article 8.3 (Most-Favoured-Nation);Article 8.4 (Market Access for Financial Institutions);Article 8.5 (Cross-Border Trade); orArticle 8.8 (Senior Management and Boards of Directors); and in Section B, pursuant to Article 8.9.2 (Non-Conforming Measures), the specific sectors, sub-sectors or activities for which Australia may maintain existing, or adopt new or more restrictive, measures that do not conform with the obligations imposed by:Article 8.2 (National Treatment);Article 8.3 (Most-Favoured-Nation Treatment);Article 8.4 (Market Access for Financial Institutions);Article 8.5 (Cross-Border Trade); orArticle 8.8 (Senior Management and Boards of Directors).
- headnotes that limit or clarify the commitments of Australia with respect to the obligations described in subparagraphs (b) and (c);
- in Section A, pursuant to Article 8.9.1 (Non-Conforming Measures), the existing measures of Australia that do not conform with some or all of the obligations imposed by: Article 8.2 (National Treatment); Article 8.3 (Most-Favoured-Nation); Article 8.4 (Market Access for Financial Institutions); Article 8.5 (Cross-Border Trade); or Article 8.8 (Senior Management and Boards of Directors); and
- Article 8.2 (National Treatment);
- Article 8.3 (Most-Favoured-Nation);
- Article 8.4 (Market Access for Financial Institutions);
- Article 8.5 (Cross-Border Trade); or
- Article 8.8 (Senior Management and Boards of Directors); and
- in Section B, pursuant to Article 8.9.2 (Non-Conforming Measures), the specific sectors, sub-sectors or activities for which Australia may maintain existing, or adopt new or more restrictive, measures that do not conform with the obligations imposed by:Article 8.2 (National Treatment);Article 8.3 (Most-Favoured-Nation Treatment);Article 8.4 (Market Access for Financial Institutions);Article 8.5 (Cross-Border Trade); orArticle 8.8 (Senior Management and Boards of Directors).
- Article 8.2 (National Treatment);
- Article 8.3 (Most-Favoured-Nation Treatment);
- Article 8.4 (Market Access for Financial Institutions);
- Article 8.5 (Cross-Border Trade); or
- Article 8.8 (Senior Management and Boards of Directors).
- Each entry in Section A as described in subparagraph 1(b) sets out the following elements: Sector refers to the general sector for which the entry is made; Obligations Concerned specifies the obligation(s) referred to in paragraph 1(b) that, pursuant to Article 8.9.1, do not apply to the listed measure(s); Level of Government indicates the level of government maintaining the listed measure(s); Source of Measure identifies the laws, regulations or other measures that are the source of the non-conforming measure for which the entry is made. A measure cited in the Source of Measure element: means the measure as amended, continued or renewed as of the date of entry into force of this Agreement, and includes any subordinate measure adopted or maintained thereunder; andDescription sets out the non-conforming aspects of the measure for which the entry is made.
- Sector refers to the general sector for which the entry is made;
- Obligations Concerned specifies the obligation(s) referred to in paragraph 1(b) that, pursuant to Article 8.9.1, do not apply to the listed measure(s);
- Level of Government indicates the level of government maintaining the listed measure(s);
- Source of Measure identifies the laws, regulations or other measures that are the source of the non-conforming measure for which the entry is made. A measure cited in the Source of Measure element: means the measure as amended, continued or renewed as of the date of entry into force of this Agreement, and includes any subordinate measure adopted or maintained thereunder; and
- means the measure as amended, continued or renewed as of the date of entry into force of this Agreement, and
- includes any subordinate measure adopted or maintained thereunder; and
- Description sets out the non-conforming aspects of the measure for which the entry is made.
- Each entry in Section B as described in subparagraph 1(c) sets out the following elements: Sector refers to the general sector for which the entry is made; Obligations Concerned specifies the obligation(s) referred to in paragraph 1(c) that, pursuant to Article 8.9, do not apply to the sectors, sub-sectors, or activities listed in the entry; Level of Government indicates the level of government maintaining the listed measure(s);andDescription sets out the scope of the sectors, sub-sectors, or activities covered by the entry.
- Sector refers to the general sector for which the entry is made;
- Obligations Concerned specifies the obligation(s) referred to in paragraph 1(c) that, pursuant to Article 8.9, do not apply to the sectors, sub-sectors, or activities listed in the entry;
- Level of Government indicates the level of government maintaining the listed measure(s); and
- Description sets out the scope of the sectors, sub-sectors, or activities covered by the entry.
- For entries in Section A, in accordance with Article 8.9.1(a), the articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the measures identified in the Description element of that entry except to the extent the measure identified in the Description element is inconsistent with a Specific Commitment in Annex 8-B.
- For entries in Section B, in accordance with Article 8.9.2, 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.
- Where Australia maintains a measure that requires that a service supplier be a citizen, permanent resident or resident of its territory as a condition to the provision of a service in its territory, a listing for that measure taken in this Annex with respect to Articles 8.2 through 8.5 shall operate as a non-conforming measure with respect to Articles 11.3 (National Treatment - Investment), 11.4 (Most-Favoured-Nation Treatment - Investment) and Article 11.9 (Performance Requirements - Investment), to the extent of that measure.
Headnotes
- Commitments under Chapter 8 (Financial Services) are undertaken subject to the limitations and conditions set forth in these headnotes and the Schedule below.
- To clarify Australia's commitment with respect to Article 8.4, juridical persons supplying financial services and constituted under the laws of Australia are subject to non-discriminatory limitations on juridical form.1
- Australia limits its commitments under Article 8.9.1(c) with respect to Article 8.4 in the following manner: Article 8.9.1(c) shall apply only to non-conforming measures relating to Article 8.4(a) and not to those non-conforming measures relating to Article 8.4(b).
- For greater certainty, notwithstanding the listing of any reservation by Australia or Korea in Annex III, Australia may adopt or maintain measures for prudential reasons pursuant to Article 8.10. Australia's right to adopt or maintain any measure subject to Article 8.10 shall not be affected by any listing by Korea in "Certain Measures Not Inconsistent With Article 8.2 or 8.4 or Subject to Article 8.10.1" in Annex III.
Section A. Financial Services Sector
Obligations Concerned:
National Treatment (Article 8.2)
Market Access for Financial Institutions (Article 8.4)
Level of Government:
Central
Source of Measure:
Banking Act 1959 (Cth)
Payment Systems (Regulation) Act 1998 (Cth)
Description:
A branch of a foreign bank that is authorised as a deposit taking institution in Australia (foreign ADI) is not permitted to accept initial deposits (and other funds) from individuals and noncorporate institutions of less than $A250,000.
A representative office of a foreign bank is not permitted to undertake any banking business, including advertising for deposits, in Australia. Such a representative office is only permitted to act as a liaison point.
Financial Services Sector
Obligations Concerned:
Senior Management and Boards of Directors (Article 8.8)
Level of Government:
Central
Source of Measure:
Corporations Act 2001 (Cth)
Corporations Regulations 2001 (Cth)
Description:
At least two directors of a public company must be ordinarily resident in Australia.
At least one director of a private company must be ordinarily resident in Australia.
Financial Services Sector
Obligations Concerned:
National Treatment (Article 8.2)
Most-Favoured-Nation Treatment (Article 8.3)
Market Access for Financial Institutions (Article 8.4)
Cross-Border Trade (Article 8.5)
Senior Management and Boards of Directors (Article 8.8)
Level of Government:
Regional
Source of Measure:
All existing non-conforming measures at the regional level of government.
Description:
All existing non-conforming measures at the regional level of government.
Financial Services Sector
Obligations Concerned:
National Treatment (Article 8.2)
Level of Government:
Central
Source of Measure:
Commonwealth Banks Act 1959 (Cth)
Description:
Liabilities of the Commonwealth Bank, previously Commonwealth Government-owned, are covered by transitional guarantee arrangements.
Section B. Financial Services Sector
Obligations Concerned:
National Treatment (Article 8.2)
Level of Government:
Central and Regional
Description:
Australia reserves the right to adopt or maintain any measure2 with respect to the guarantee by government of government-owned entities, including guarantees related to the privatisation of such entities, which may conduct financial operations.
1 For example, partnerships and sole proprietorships are generally not acceptable juridical forms for authorised depository institutions in Australia. This headnote is not itself intended to affect, or otherwise limit, a choice by a financial institution of the other Party between branches or subsidiaries.
2 That is, measures that would be excluded from the application of Chapter 8 (Financial Services) under Article 8.1.3(b), except for the application of Australia's policy on competitive neutrality which in general allows competition and avoids providing a net competitive advantage to an entity by virtue of its public sector ownership.
Schedule of korea
Introductory Note for the Schedule of Korea
- The Schedule of Korea to this Annex sets out:headnotes that limit or clarify the commitments of Korea with respect to the obligations described in subparagraph (b)(i) through (v) and in subparagraph (c); in Section A, pursuant to Article 8.9.1 (Non-Conforming Measures), the existing measures of Korea that do not conform with some or all of the obligations imposed by: Article 8.2 (National Treatment); Article 8.3 (Most-Favoured-Nation Treatment); Article 8.4 (Market Access for Financial Institutions); Article 8.5 (Cross-Border Trade); or Article 8.8 (Senior Management and Boards of Directors), andin Section B, pursuant to Article 8.9.2 (Non-Conforming Measures), the specific sectors, sub-sectors, or activities for which Korea may maintain existing, or adopt new or more restrictive, measures that do not conform with the obligations imposed by:Article 8.2 (National Treatment); Article 8.3 (Most-Favoured-Nation Treatment); Article 8.4 (Market Access for Financial Institutions);Article 8.5 (Cross-Border Trade); or Article 8.8 (Senior Management and Boards of Directors).
- headnotes that limit or clarify the commitments of Korea with respect to the obligations described in subparagraph (b)(i) through (v) and in subparagraph (c);
- in Section A, pursuant to Article 8.9.1 (Non-Conforming Measures), the existing measures of Korea that do not conform with some or all of the obligations imposed by: Article 8.2 (National Treatment); Article 8.3 (Most-Favoured-Nation Treatment); Article 8.4 (Market Access for Financial Institutions); Article 8.5 (Cross-Border Trade); or Article 8.8 (Senior Management and Boards of Directors), and
- Article 8.2 (National Treatment);
- Article 8.3 (Most-Favoured-Nation Treatment);
- Article 8.4 (Market Access for Financial Institutions);
- Article 8.5 (Cross-Border Trade); or
- Article 8.8 (Senior Management and Boards of Directors), and
- in Section B, pursuant to Article 8.9.2 (Non-Conforming Measures), the specific sectors, sub-sectors, or activities for which Korea may maintain existing, or adopt new or more restrictive, measures that do not conform with the obligations imposed by: Article 8.2 (National Treatment); Article 8.3 (Most-Favoured-Nation Treatment); Article 8.4 (Market Access for Financial Institutions); Article 8.5 (Cross-Border Trade); or Article 8.8 (Senior Management and Boards of Directors).
- Article 8.2 (National Treatment);
- Article 8.3 (Most-Favoured-Nation Treatment);
- Article 8.4 (Market Access for Financial Institutions);
- Article 8.5 (Cross-Border Trade); or
- Article 8.8 (Senior Management and Boards of Directors).
- Each entry in Section A sets out the following elements: Sector refers to the general sector for which the entry is made; Sub-sector refers to the specific sector for which the entry is made; Obligations Concerned specifies the article(s) referred to in paragraph 1(b) that, pursuant to Article 8.9.1(a), do not apply to the nonconforming aspects of the law, regulation, or other measure, as set out in paragraph 4; Level of Government indicates the level of government maintaining the scheduled measure(s); Measures identifies the laws, regulations, or other measures for which the entry is made. A measure cited in the Measures element: means the measure as amended, continued or renewed as of the date of entry into force of this Agreement; and includes any subordinate measure adopted or maintained under the authority of and consistent with the measure; and Description provides a general, non-binding description of the measure for which the entry is made.
- Sector refers to the general sector for which the entry is made;
- Sub-sector refers to the specific sector for which the entry is made;
- Obligations Concerned specifies the article(s) referred to in paragraph 1(b) that, pursuant to Article 8.9.1(a), do not apply to the nonconforming aspects of the law, regulation, or other measure, as set out in paragraph 4;
- Level of Government indicates the level of government maintaining the scheduled measure(s);
- Measures identifies the laws, regulations, or other measures for which the entry is made. A measure cited in the Measures element: means the measure as amended, continued or renewed as of the date of entry into force of this Agreement; and includes any subordinate measure adopted or maintained under the authority of and consistent with the measure; and
- means the measure as amended, continued or renewed as of the date of entry into force of this Agreement; and
- includes any subordinate measure adopted or maintained under the authority of and consistent with the measure; and
- Description provides a general, non-binding description of the measure for which the entry is made.
- Each entry in Section B sets out the following elements: Sector refers to the general sector for which the entry is made; Sub-sector refers to the specific sector for which the entry is made; Obligations Concerned specifies the article(s) referred to in paragraph 1(c) that, pursuant to Article 8.9.2, do not apply to the sectors, sub-sectors, or activities scheduled in the entry; Level of Government indicates the level of government maintaining the listed measure(s); andDescription sets out the scope of the sectors, sub-sectors, or activities covered by the entry.
- Sector refers to the general sector for which the entry is made;
- Sub-sector refers to the specific sector for which the entry is made;
- Obligations Concerned specifies the article(s) referred to in paragraph 1(c) that, pursuant to Article 8.9.2, do not apply to the sectors, sub-sectors, or activities scheduled in the entry;
- Level of Government indicates the level of government maintaining the listed measure(s); and
- Description sets out the scope of the sectors, sub-sectors, or activities covered by the entry.
- For entries in Section A, in accordance with Article 8.9.1(a), and subject to Article 8.9.1(c), 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, except to the extent that such non-conforming aspects are inconsistent with a Specific Commitment in Annex 8-B.
- For entries in Section B, in accordance with Article 8.9.2, 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.
- Where Korea maintains a measure that requires that a service supplier be a citizen, permanent resident, or resident of its territory as a condition to the supply of a service in its territory, a Schedule entry for that measure taken with respect to Article 8.2, 8.3, 8.4, or 8.5 shall operate as a Schedule entry with respect to Article 11.3 (National Treatment), 11.4 (Most-Favoured-Nation Treatment), or 11.9 (Performance Requirements) to the extent of that measure.
- Certain measures that the Parties consider to be not inconsistent with Article 8.2 or 8.4 or subject to Article 8.10.1 are listed below.
- An entry in Annex I or Annex II specifying that Article 7.2 (National Treatment) does not apply to the non-conforming aspects of a law, regulation, or other measure, shall not be construed as limiting a Party's obligation under Article 8.5.1 to accord national treatment with respect to the supply of services specified in Annex 8-A to cross-border financial service suppliers of the other Party.
Certain Measures Not Inconsistent With Article 8.2 or 8.4 or Subject to Article 8.10.1
- The following measures are not inconsistent with Article 8.4 (Market Access for Financial Institutions). Any revision, amendment or modification of the following measures or related laws will not be construed to be inconsistent with Article 8.4 to the extent that it does not conflict with the spirit of the original measure:an insurance company constituted in Korea may engage only in activities permitted by the relevant laws. (Insurance Business Act (Law No. 10394, July 23, 2010) Articles 10 and 11 and Enforcement Decree of the Insurance Business Act (Presidential Decree No. 22637, January 24, 2011), Articles 15 and 16);residents of Korea are not permitted to settle payment in KRW (Korean won) for cross-border financial services supplied to them by residents of foreign countries. (Foreign Exchange Transaction Regulation (Notification of the Ministry of Strategy and Finance No. 2009-18, September 30, 2009), Articles 5-11 and 7-8 to 7-10);banks and mutual savings banks in Korea are required to extend loans to small- or medium-sized companies. (Bank of Korea's Regulations on Credit Extension (Monetary Policy Committee, August 19, 1999), Article 2; Mutual Savings Bank Act (Law No. 8143, December 30, 2006), Article 11; and Enforcement Decree of the Mutual Savings Bank Act (Presidential Decree No.19464, May 3, 2006), Article 8-2);the overall net open position of foreign exchange banks, measured by the sum of the net short position or the sum of the net long positions, whichever is greater (short-hand method), is limited to 50 per cent of the total equity capital at the end of the previous month (Foreign Exchange Transaction Act (Law No. 9351, January 30, 2009), Article 11-2; and Foreign Exchange Transaction Regulation (Notification of the Ministry of Strategy and Finance No. 2009-18, September 30, 2009), Article 2-9);securities credit extensions are subject to restrictions on the maximum credit amount and use of proceeds. An investment trader or investment broker is only permitted to extend credit for purpose related to the sale and purchase of securities. (Financial Investment Services and Capital Markets Act (Law No. 9407, February 3, 2009), Article 72; and Enforcement Decree of the Financial Investment Services and Capital Markets Act (Presidential Decree No. 21291, February 3, 2009), Article 69);the value of lending to an individual credit card holder may be capped. (Specialized Credit Financing Business Act (Law No. 7929, April 28, 2006) Article 24);a bank, financial investment business entity or other financial institution constituted in Korea may only engage in activities permitted by the relevant laws. (Banking Act (Law No. 7428, March 31, 2005), Articles 27 and 28; Financial Investment Services and Capital Markets Act (Law No. 9407, February 3 2009), Articles 40 and 41; Enforcement Decree of the Financial Investment Services and Capital Markets Act (Presidential Decree No. 21291, February 3, 2009), Articles 43 and 44);a financial institution is prohibited from acquiring real estate for non-business purpose. (Banking Act (Law No. 7428, March 31, 2005), Article 38; and Insurance Business Act (Law No. 8902, March 14, 2008), Article 105;non-residents of Korea may convert foreign currency into KRW (Korean won) only for actual use in Korea. (Foreign Exchange Transaction Regulations (Notification of the Ministry of Strategy and Finance No. 2009-18, September 30, 2009), Articles 7-8 to 7-10 and Articles 7-36 to 7-39); andKorea may restrict deposit interest rates, loan interest rates, other interest rates, maturity of deposit and related fees. (Banking Act (Law No. 7428, March 31, 2005), Article 30; Regulation on Financial Institutions' Loans and Deposit Rates (Monetary Policy Committee, December 24, 2003); Lending Business Act (Law No. 7523, May 31, 2005), Article 8 and Article 15; Enforcement Decree of Lending Business Act (Presidential Decree No. 19019, August 31, 2005), and Article 5 and Article 9).
- an insurance company constituted in Korea may engage only in activities permitted by the relevant laws. (Insurance Business Act (Law No. 10394, July 23, 2010) Articles 10 and 11 and Enforcement Decree of the Insurance Business Act (Presidential Decree No. 22637, January 24, 2011), Articles 15 and 16);
- residents of Korea are not permitted to settle payment in KRW (Korean won) for cross-border financial services supplied to them by residents of foreign countries. (Foreign Exchange Transaction Regulation (Notification of the Ministry of Strategy and Finance No. 2009-18, September 30, 2009), Articles 5-11 and 7-8 to 7-10);
- banks and mutual savings banks in Korea are required to extend loans to small- or medium-sized companies. (Bank of Korea's Regulations on Credit Extension (Monetary Policy Committee, August 19, 1999), Article 2; Mutual Savings Bank Act (Law No. 8143, December 30, 2006), Article 11; and Enforcement Decree of the Mutual Savings Bank Act (Presidential Decree No.19464, May 3, 2006), Article 8-2);
- the overall net open position of foreign exchange banks, measured by the sum of the net short position or the sum of the net long positions, whichever is greater (short-hand method), is limited to 50 per cent of the total equity capital at the end of the previous month (Foreign Exchange Transaction Act (Law No. 9351, January 30, 2009), Article 11-2; and Foreign Exchange Transaction Regulation (Notification of the Ministry of Strategy and Finance No. 2009-18, September 30, 2009), Article 2-9);
- securities credit extensions are subject to restrictions on the maximum credit amount and use of proceeds. An investment trader or investment broker is only permitted to extend credit for purpose related to the sale and purchase of securities. (Financial Investment Services and Capital Markets Act (Law No. 9407, February 3, 2009), Article 72; and Enforcement Decree of the Financial Investment Services and Capital Markets Act (Presidential Decree No. 21291, February 3, 2009), Article 69);
- the value of lending to an individual credit card holder may be capped. (Specialized Credit Financing Business Act (Law No. 7929, April 28, 2006) Article 24);
- a bank, financial investment business entity or other financial institution constituted in Korea may only engage in activities permitted by the relevant laws. (Banking Act (Law No. 7428, March 31, 2005), Articles 27 and 28; Financial Investment Services and Capital Markets Act (Law No. 9407, February 3 2009), Articles 40 and 41; Enforcement Decree of the Financial Investment Services and Capital Markets Act (Presidential Decree No. 21291, February 3, 2009), Articles 43 and 44);
- a financial institution is prohibited from acquiring real estate for non-business purpose. (Banking Act (Law No. 7428, March 31, 2005), Article 38; and Insurance Business Act (Law No. 8902, March 14, 2008), Article 105;
- non-residents of Korea may convert foreign currency into KRW (Korean won) only for actual use in Korea. (Foreign Exchange Transaction Regulations (Notification of the Ministry of Strategy and Finance No. 2009-18, September 30, 2009), Articles 7-8 to 7-10 and Articles 7-36 to 7-39); and
- Korea may restrict deposit interest rates, loan interest rates, other interest rates, maturity of deposit and related fees. (Banking Act (Law No. 7428, March 31, 2005), Article 30; Regulation on Financial Institutions' Loans and Deposit Rates (Monetary Policy Committee, December 24, 2003); Lending Business Act (Law No. 7523, May 31, 2005), Article 8 and Article 15; Enforcement Decree of Lending Business Act (Presidential Decree No. 19019, August 31, 2005), and Article 5 and Article 9).
- The following measures fall within Article 8.10.1 (Exceptions) and, therefore, Article 8.2 (National Treatment) does not prevent Korea from maintaining them. Any revision, amendment or modification of the following measures or related laws will also fall within the ambit of Article 8.10.1:the operating fund of a branch of a foreign insurance company will be considered as capital and the head office's capital will not be taken into consideration for purposes of determining the amount of funds to be raised or loans to be extended by such local branch (Insurance Business Act (Law No. 8902, March 14, 2008), Article 9-3);a branch in Korea of a foreign insurance company must maintain in the territory of Korea assets equal to the aggregate of the reserve for performance of liability and the reserve for emergency relating to the insurance contracts executed in Korea (Insurance Business Act (Law No. 8902, March 14, 2008), Article 75).
- the operating fund of a branch of a foreign insurance company will be considered as capital and the head office's capital will not be taken into consideration for purposes of determining the amount of funds to be raised or loans to be extended by such local branch (Insurance Business Act (Law No. 8902, March 14, 2008), Article 9-3);
- a branch in Korea of a foreign insurance company must maintain in the territory of Korea assets equal to the aggregate of the reserve for performance of liability and the reserve for emergency relating to the insurance contracts executed in Korea (Insurance Business Act (Law No. 8902, March 14, 2008), Article 75).
Headnotes
- Commitments in these sub-sectors under the Agreement are undertaken subject to the limitations and conditions set forth in these headnotes and in the Schedules below.
- To clarify the commitment of Korea with respect to Article 8.4 (Market Access for Financial Institutions), juridical persons supplying financial services and constituted under the laws of Korea are subject to non-discriminatory limitations on juridical form. (1)
- The commitments of Korea under Articles 8.2 (National Treatment) and 8.4 (Market Access for Financial Institutions) are subject to the limitation that in order to establish or acquire a controlling interest in a financial institution in Korea, a foreign investor must own or control a financial institution that engages in supplying financial services within the same financial services sub-sector in its home country.
- Korea limits its commitments under Article 8.9.1(c) with respect to Article 8.4 (Market Access for Financial Institutions) in the following manner: Article 8.9.1(c) shall apply only to non-conforming measures relating to Article 8.4(a) and not to those non-conforming measures relating to Article 8.4(b).
Section A. Financial Services
Sub-Sector:
Insurance
Obligations Concerned:
Market Access for Financial Institutions (Article 8.4)
Level of Government:
Central
Measures:
Insurance Business Act (Law No. 7971, August 29, 2006), Article 91
Enforcement Decree of the Insurance Business Act (Presidential Decree No. 19493, May 30, 2006), Article 40
Description:
Only two employees of a commercial bank, mutual saving bank, or an investment trader or investment broker may sell insurance products at any one time at a single location.
For transparency purposes, Korea notes that it restricts the manner of sales of insurance products such as the number of windows in a single bank location devoted to the sale of insurance, and limitations on the percentage of insurance sold by a bank that may be underwritten by a single insurer.
Financial Services
Sub-Sector:
Insurance
Obligations Concerned:
Cross-Border Trade (Article 8.5)
Level of Government:
Central
Measures:
Automobile Accident Compensation Assurance Act (Law No. 7100, January 20, 2004)
Act on the Indemnification for Fire-Caused Loss and the Purchase of Insurance Policies (Law No. 7186, March 11, 2004)
High-Pressure Gas Safety Control Act (Law No. 7504, May 26, 2005)
Safety Control and Business Regulation of Liquefied Petroleum Gas Act (Law No. 7428, March 31, 2005)
Urban Gas Business Act (Law No. 7505, May 26, 2005)
Seafarers Act (Law No. 8041, October 4, 2006)
Installation and Utilization of Sports Facilities Act (Law No. 7913, March 24, 2006)
Excursion Ship and Ferry Business Act (Law No. 7985, September 22, 2006)
Manufacture and Management of Elevators Act (Law No. 7279, December 31, 2004)
Water-Related Leisure Activities Safety Act (Law No. 8016, September 27, 2006)
Juvenile Activity Promotion Act (Law No. 8014, September 27, 2006)
Compensation for Oil Pollution Damage Guarantee Act (Law No. 7002, December 11, 2003)
Air Transport Business Promotion Act (Law No. 6621, January 19, 2002)
Road Traffic Act (Law No. 7969, July 19, 2006)
Act on Contracts to Which the State is a Party (Law No. 8050, October 4, 2006)
Protection of Wild Fauna and Flora Act (Law No. 8045, October 4, 2006)
Trucking Transport Business Act (Law No. 8138, December 30, 2006)
Industrial Accident Compensation Insurance Act (Law No. 7796, December 29, 2005)
Construction Technology Management Act (Law No. 7305, December 31, 2004)
Nuclear Damage Compensation Act (Law No. 7188, March 11, 2004)
Goods Distribution Promotion Act (Law No. 8014, September 27, 2006)
Social Welfare Services Act (Law No. 7918, March 24, 2006)
Fishing Boats for Anglers Act (Law No. 7642, July 29, 2005)
Electronic Finance Transaction Act (Law No. 7929, April 28, 2006)
Digital Signature Act (Law No. 7813, December 30, 2005)
Attorney-at-Law Act (Law No. 7894, March 24, 2006)
Laboratory Safety Environment Act (Law No. 7425, March 31, 2005)
Description:
In determining whether a natural person resident in Korea or juridical persons established in Korea has satisfied a legal obligation to purchase "compulsory" insurance services not listed in Annex 8-A, any such service supplied in the territory of a foreign country to such person is not considered.
However services supplied outside the territory of Korea may be considered in satisfaction of the legal obligation if the required insurance cannot be purchased from an insurer established in Korea.
Financial Services
Sub-Sector:
Banking and other financial services (excluding insurance)
Obligations Concerned:
National Treatment (Article 8.2)
Level of Government:
Central
Measures:
Banking Act (Law No. 7428, March 31, 2005), Articles 15 and 16-2
Enforcement Decree of the Banking Act (Presidential Decree No. 19422, March 29, 2006), Article 5 and Annex
Financial Holding Company Act (Law No. 7529, May 31, 2005), Articles 8 and 8-2
Enforcement Decree of the Financial Holding Company Act (Presidential Decree No. 19422, March 29, 2006), Article 6-3
Description:
- A financial institution constituted under the laws of another country may own more than 10 per cent of the shares of a commercial bank or bank holding company constituted under the laws of Korea only if that institution is an "internationally recognised financial institution." (2)
- For the purposes of transparency:the Financial Services Commission applies additional criteria for approval that are not inconsistent with this Agreement to approval of ownership by an internationally recognised financial institution as described in paragraph 1.a natural person may not own more than 10 per cent of the shares of a commercial bank or bank holding company constituted under the laws of Korea.a corporate entity other than a financial institution, the main business of which is not financial services, may not own more than four per cent of the shares of a commercial bank or bank holding company constituted under the laws of Korea. The ownership percentage can be increased to 10 per cent if the corporate entity waives its ability to exercise voting rights relating to the shares in excess of four per cent.
- the Financial Services Commission applies additional criteria for approval that are not inconsistent with this Agreement to approval of ownership by an internationally recognised financial institution as described in paragraph 1.
- a natural person may not own more than 10 per cent of the shares of a commercial bank or bank holding company constituted under the laws of Korea.
- a corporate entity other than a financial institution, the main business of which is not financial services, may not own more than four per cent of the shares of a commercial bank or bank holding company constituted under the laws of Korea. The ownership percentage can be increased to 10 per cent if the corporate entity waives its ability to exercise voting rights relating to the shares in excess of four per cent.
Financial Services
Sub-Sector:
Banking and other financial services (excluding insurance)
Obligations Concerned:
National Treatment (Article 8.2)
Level of Government:
Central
Measures:
Banking Act (Law No. 7428, March 31, 2005), Article 58
Guideline on Grant of Banking Business Approval (July 23, 2004), Paragraph 17-B
Regulation on Supervision of Banking Business (Financial Supervisory Committee Notification No. 2006-87, December 28, 2006), Article 10
Description:
Each branch location in Korea of a bank constituted under the laws of another country requires a separate license. Each branch located in Korea of a bank constituted under the laws of another country requires a separate license. A branch of a banking subsidiary, including one owned or controlled by investors of another country, does not require such a license.
Financial Services
Sub-Sector:
Banking and other financial services (excluding insurance)
Obligations Concerned:
Market Access for Financial Institutions (Article 8.4)
Level of Government: