Central
Measures:
Financial Investment Services and Capital Markets Act (Law No. 9407, February 3, 2009), Articles 373, 375, 379 and 386
Description:
Only the Korea Exchange may operate a securities or derivatives market in Korea.
Financial Services
Sub-Sector:
Banking and other financial services (excluding insurance)
Obligations Concerned:
Market Access for Financial Institutions (Article 8.4)
Level of Government:
Central
Measures:
Financial Investment Services and Capital Markets Act (Law No. 9407, February 3, 2009), Articles 294 through 323 and 166
Description:
Only the Korea Securities Depository may serve as the depository for listed and unlisted securities issued in Korea or as the intermediary for transfer of those securities between accounts of depositors in Korea.
Financial Services
Sub-Sector:
Banking and other financial services (excluding insurance)
Obligations Concerned:
Market Access for Financial Institutions (Article 8.4)
Level of Government:
Central
Measures:
Financial Investment Services and Capital Markets Act (Law No. 9407, February 3, 2009), Articles 298, 378 and 166
Enforcement Decree of the Financial Investment Services and Capital Markets Act (Presidential Decree No. 21291, February 3, 2009), Article 178
Description:
Only the Korea Securities Depository and the Korea Exchange may perform liquidation and settlement of securities and derivatives listed or traded on the Korea Exchange.
Financial Services
Sub-Sector:
Banking and other financial services (excluding insurance)
Obligations Concerned:
Cross-Border Trade (Article 8.5)
Level of Government:
Central
Measures:
Financial Investment Services and Capital Markets Act (Law No. 9407, February 3, 2009), Article 166
Enforcement Decree of the Financial Investment Services and Capital Markets Act (Presidential Decree No. 21291, February 3, 2009), Article 184
Description:
A non-professional investor (including some professional investors (3) shall make transactions through an investment broker licensed in Korea when he/she intends to trade securities denominated in foreign currencies and exchange-traded derivatives on foreign securities markets or foreign derivatives markets.
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 62 and 63
Enforcement Decree of the Banking Act (Presidential Decree No. 19422, March 29, 2006), Articles 25 and 26
Financial Investment Services and Capital Markets Act (Law No. 9407, February 3, 2009), Article 65
Enforcement Decree of the Financial Investment Services and Capital Markets Act (Presidential Decree No. 21291, February 3, 2009), Article 65
Description:
A branch in Korea of a bank or a financial investment business entity constituted under the laws of another country must bring and maintain operating funds within Korea, which shall be used for the purposes of determining the amount of funds to be raised or loans to be extended by such local branch.
For the purposes of the Banking Act and the Financial Investment Services and Capital Markets Act, such a branch is considered a separate legal entity from the bank or the financial investment business entity constituted under the laws of another country.
Financial Services
Sub-Sector:
Banking and other financial services (excluding insurance)
Obligations Concerned:
Market Access for Financial Institutions (Article 8.4)
Level of Government:
Central
Measures:
Credit Unions Act (Law No. 8145, December 30, 2006), Article 7
Mutual Savings Bank Act (Law No. 8143, December 30, 2006), Article 6
Specialized Credit Financing Business Act (Law No. 7929, April 28, 2006), Article 5
Financial Investment Services and Capital Markets Act (Law No. 9407, February 3, 2009), Article 355
Use and Protection of Credit Information Act (Law No. 7883, March 24, 2006), Article 5
Foreign Exchange Transaction Act (Law No. 8050, October 4, 2006), Article 9
Financial Investment Services and Capital Markets Act (Law No. 9407, February 3, 2009), Articles 254, 258 and 263
Description:
The following types of business may not be conducted by a branch of a financial institution constituted under the laws of another country:
- credit unions;
- mutual savings banks;
- specialised capital finance companies;
- foreign and won currency capital brokerage firms;
- credit information companies;
- general fund administration firms;
- collective investment vehicle appraisal companies; and
- bond appraisal companies.
Financial Services
Sub-Sector:
Banking and other financial services (excluding insurance)
Obligations Concerned:
Market Access for Financial Institutions (Article 8.4)
Level of Government:
Central
Measures:
Electronic Finance Transaction Act (Law No. 7929, April 28, 2006), Article 30
Description:
A non-financial institution that seeks to offer certain electronic financial services in Korea may establish only as a subsidiary.
Financial Services
Sub-Sector:
Banking and other financial services (excluding insurance)
Obligations Concerned:
National Treatment (Article 8.2)
Level of Government:
Central
Measures:
Korea Development Bank Act (Law No. 9703, May 21, 2009)
Korea Finance Corporation Act (Law No. 9741, May 27, 2009)
Industrial Bank of Korea Act (Law No. 9460, February 6, 2009)
Korea Housing Finance Corporation Act (Law No. 7882, March 24, 2006)
Agricultural Cooperative Federation Act (Law No. 7638, July 29, 2005)
National Federation of Fisheries Cooperatives Act (Law No. 7611, July 21, 2005)
Description:
Korea may grant:
- to one or more of the following financial institutions (4) (collectively, Government-sponsored Institutions or GSIs): the Korea Development Bank; the Industrial Bank of Korea; the Korea Housing Finance Corporation; the National Agricultural Cooperative Federation; and the National Federation of Fisheries Cooperatives
- the Korea Development Bank;
- the Industrial Bank of Korea;
- the Korea Housing Finance Corporation;
- the National Agricultural Cooperative Federation; and
- the National Federation of Fisheries Cooperatives
- special treatment, including but not limited to the following:guarantees of loans to or bonds issued by the GSIs;permission to issue more bonds per capital than similarly-situated non-GSIs;reimbursement of losses incurred by GSIs; orexemption from public assets and certain taxes on capital, surplus, profit, or assets.
- guarantees of loans to or bonds issued by the GSIs;
- permission to issue more bonds per capital than similarly-situated non-GSIs;
- reimbursement of losses incurred by GSIs; or
- exemption from public assets and certain taxes on capital, surplus, profit, or assets.
Financial Services
Sub-Sector:
Banking and other financial services (excluding insurance)
Obligations Concerned:
Senior Management and Boards of Directors (Article 8.8)
Level of Government:
Central
Measures:
Korea Housing Finance Corporation Act (Law No. 7882, March 24, 2006), Article 16
Agricultural Cooperative Federation Act (Law No. 7638, July 29, 2005), Article 49
National Federation of Fisheries Cooperatives Act (Law No. 7611, July 21, 2005), Article 51
Description:
Chief and deputy executive officers and all members of the Board of Directors of the Korea Housing Finance Corporation, the National Agricultural Cooperative Federation and the National Federation of Fisheries Cooperatives must be Korean nationals.
Financial Services
Sub-Sector:
Banking and other financial services (excluding insurance)
Obligations Concerned:
National Treatment (Article 8.2)
Level of Government:
Central
Measures:
Housing Act (Law No. 8050, October 4, 2006), Article 75
Rules on Provision of Housing (Ordinance of the Ministry of Land, Transportation and Maritime Affairs No. 168, September 28, 2009); paragraph 2 of Article 5
Description:
Korea may limit the number of financial institutions designated to hold housing accounts, such as the National Housing Subscription Deposit Accounts.
Financial Services
Sub-Sector:
Banking and other financial services (excluding insurance)
Obligations Concerned:
Market Access for Financial Institutions (Article 8.4)
Level of Government:
Central
Measures:
Foreign Exchange Transaction Act (Law No. 8050, October 4, 2006), Article 9
Description:
Interbank Brokerage of KRW (Korean won) spot transactions is limited to the two existing brokerage companies in the business.
Section B. Financial Services
Sub-Sector:
Insurance
Obligations Concerned:
Cross-Border Trade (Article 8.5)
Level of Government:
Central
Measures:
None
Description:
Korea reserves the right not to consider any "compulsory" third party insurance service supplied in the territory of a foreign country to a natural person in Korea or juridical person established therein, in determining whether such natural or juridical person has satisfied a legal obligation to purchase such "compulsory" third party insurance service not listed in Annex 8-A.
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