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Australia - Korea, Republic of FTA (2014)
Categories

Transport Services

Obligations Concerned:

Local Presence (Article 7.5)

National Treatment (Article 7.2)

Level of Government:

Regional

Source of Measure:

Commercial Passenger (Road Transport) Act (NT)

Road Transport (Public Passenger Services) Regulations 2002 (ACT)

Description:

Cross-Border Trade in Services

Northern Territory

A taxi licence will be cancelled where the holder, being an individual, has not been ordinarily resident in the Northern Territory for more than six months or, being a body corporate, has ceased for more than six months to have its principal place of business in the Northern Territory.

Australian Capital Territory

An application for accreditation to run a public transport service must be made by an Australian citizen or permanent resident of Australia.

(1) Foreign Acquisitions and Takeovers Act 1975 (FATA). "Investments" means activities covered by Part II of FATA or, where applicable, ministerial statements on foreign investment policy. Funding arrangements that include debt instruments having quasi-equity characteristics will be treated as direct foreign investment.
(2) A "foreign person" means, as defined in section 5 of the FATA: 1. a natural person not ordinarily resident in Australia; 2. a corporation in which a natural person not ordinarily resident in Australia or a foreign corporation holds a controlling interest; 3. a corporation in which two or more persons, each of whom is either a natural person not ordinarily resident in Australia or a foreign corporation, hold an aggregate controlling interest; 4. the trustee of a trust estate in which a natural person not ordinarily resident in Australia or a foreign corporation holds a substantial interest; or 5. the trustee of a trust estate in which two or more persons, each of whom is either a natural person not ordinarily resident in Australia or a foreign corporation, hold an aggregate substantial interest.
(3) For the purposes of this entry, "existing" means in existence at the time the investment is proposed or made.
(4) For the purposes of this entry, "prescribed corporation" means: 1. a trading corporation; 2. a financial corporation; 3. a corporation incorporated in a Territory under the law in force in that Territory relating to companies; 4. a foreign corporation that, on its last accounting date, held assets the sum of the values of which exceeded $A 248 million (for item (b) of the entry) or $A1078 million (for item (c) of the entry), being assets consisting of all or any of the following: (i) land situated in Australia (including legal and equitable interests in such land); (ii) mineral rights; (iii) shares in a corporation incorporated in Australia; 5. a foreign corporation that was, on its last accounting date, a holding corporation of an Australian corporation or Australian corporations, where the sum of the values on that date of the assets of the Australian corporation or Australian corporations exceeded $A248 million (for item (b) of the entry) or $A1078 million (for item (c) of the entry); 6. a corporation that was, on its last accounting date, a holding corporation of an foreign corporation referred to in paragraph (d) or (e) of this footnote; 7. a foreign corporation that, on its last accounting date, held assets of a kind or kinds referred to in paragraph (d) of this footnote, where the sum of the values on that date of those assets was not less than one-half of the sum of the values on that date of the assets of the foreign corporation and of all the subsidiaries of that corporation; or 8. a foreign corporation that was, on its last accounting date, a holding corporation of an Australian corporation or Australian corporations, where the sum of the values on that date of the assets of that Australian corporation or those Australian corporations was not less than one-half of the sum of the values on that date of the assets of the foreign corporation and of all the subsidiaries of that corporation.
# This is the figure as at 1 January 2013. To be indexed on 1 January each year to the GDP implicit price deflator in the Australian National Accounts for the previous financial year. If the Agreement has not entered into force by 1 January 2014, this figure will be indexed on entry into force.
(5) A "financial sector company" means, as defined in section 3 of the Financial Sector (Shareholdings) Act 1998: 1. an authorised deposit-taking institution; 2. an authorised insurance company; or 3. a holding company of a company covered by paragraph (a) or (b) of this footnote.
(6) "Unacceptable shareholding situation" and "practical control" as defined in the Financial Sector (Shareholdings) Act 1998.
(7) Ministerial statements on foreign investment policy including the Treasurer's Press Release No. 28 of 9 April 1997.
(8) "Association" includes a trading association.
(9) "Third party trading scheme" means a scheme or arrangement under which the acquisition of goods or services by a consumer from a supplier is a condition, which gives rise, or apparently gives rise, to an entitlement to a benefit from a third party in the form of goods or services or some discount, concession or advantage in connection with the acquisition of goods or services.
(10) For the purposes of this entry, a person is taken to be "ordinarily resident" in Australia if the person has his or her home in Australia or Australia is the country of his or her permanent abode even though he or she is temporarily absent from Australia. However, the person is taken not to be ordinarily resident in Australia if he or she resides in Australia for a special or temporary purpose only.
(11) A "licensed agent" includes a real estate agent, business agent or conveyancing agent.
(12) For the purposes of this reservation, a "foreign fishing vessel" is one that does not meet the definition of an Australian boat under the Fisheries Management Act 1991 (Cth), that is, an Australian-flagged boat (not owned by a foreign resident) or a boat owned by an Australian resident or corporation and built, and whose operations are based, in Australia.
(13) The levy charged will be in accordance with the Foreign Fishing Licences Levy Act 1991 or any amendments thereto.
(14) Firearms licences include, but are not limited to, firearms dealer's licence, armourer's licence, firearms museum licence, firearms collector's licence, firearms employee licence and paintball operator's licence.
(15) For the purposes of this entry, "significant foreign shareholding" means a holding of voting shares in CSL in which a foreign person has a relevant interest, if the foreign person has relevant interests in at least five per cent of the voting shares in CSL.
(16) This term is defined in Schedule 7 of the Nature Conservation (Administration) Regulation 2006 (Qld).
(17) For the purposes of this entry, section 10.48 and 10.58 of Part X of the Competition and Consumer Act 2010 list the categories of persons to whom this reservation will apply.

Schedule of korea

Construction Services

Obligations Concerned:

Local Presence (Article 7.5)

Measures:

Framework Act on the Construction Industry (Law No. 12012, August 6, 2013), Articles 9 and 10

Enforcement Decree of the Framework Act on the Construction Industry (Presidential Decree No. 24616, June 17, 2013), Article 13

Enforcement Regulations of the Framework Act on the Construction Industry (Ordinance of the Ministry of Land, Infrastructure and Transport No.10, June 17, 2013), Articles 2 and 3

Information and Communication Construction Business Act (Law No. 11690, March 23, 2013), Article 14

Fire Fighting System Installation Business Act (Law No. 11782, May 22, 2013), Articles 4 and 5

Enforcement Decree of the Fire Fighting System Installation Business Act (Presidential Decree No. 24417, March 23, 2013), Article 2 (Table 1)

Enforcement Regulations of the Fire Fighting System Installation Business Act (Ordinance of Ministry of Security and Public Administration No. 3, March 23, 2013), Article 2

Description:

Cross-Border Trade in Services

A person that supplies construction services in Korea must, prior to the signing of the first contract related to such services, establish an office in Korea.

Leasing, Rental, Maintenance, Repair, Sales, and Disposal Services Related to Construction Machinery and Equipment

Obligations Concerned:

Local Presence (Article 7.5)

Measures:

Construction Machinery Management Act (Law No. 11919, July 16, 2013), Article 21

Enforcement Decree of the Construction Machinery Management Act (Presidential Decree No. 24443, March 23, 2013), Articles 13, 14, 15 and 15-2

Enforcement Regulations of the Construction Machinery Management Act (Ordinance of the Ministry of Land, Infrastructure and Transport No. 1, March 23, 2013), Articles 57 through 63, 65-2 and 65-3

Description:

Cross-Border Trade in Services

A person that supplies leasing, rental, maintenance, repair, sales, and disposal services related to construction machinery and equipment must establish an office in Korea.

Transportation Services - Automobile Maintenance, Repair, Sales, Disposal, and Inspection Services; Automobile License Plate Issuing Services

Obligations Concerned:

Market Access (Article 7.4)

Local Presence (Article 7.5)

Measures:

Automobile Management Act (Law No. 11929, July 16, 2013), Articles 20, 44, 45 and 53

Enforcement Regulations of the Automobile Management Act (Ordinance of the Ministry of Land, Infrastructure and Transport No. 24, September 6, 2013), Articles 7, 8, 83, 87 and 111

Rule on Enforcement of Comprehensive Inspection of Automobiles, Etc. (Ordinance of the Ministry of Land, Infrastructure and Transport No. 1, March 23, 2013), Article 16

Description:

Cross-Border Trade in Services

A person that supplies automobile management services (which includes used car sales, maintenance, auto dismantling and recycling services) must establish an office in Korea and register its business with the head of the si/gun/gu (municipal authorities), which is subject to an economic needs test, as appropriate.

A person that supplies automobile inspection services that is designated as a "designated inspection facility" must establish an office in Korea.

A person that supplies license plate manufacturing, delivery, and seal services that is designated as a "license plate issuing agency" must establish an office in Korea.

Distribution Services - Wholesale and Retail Distribution of Tobacco and Liquor

Obligations Concerned:

Market Access (Article 7.4)

Local Presence (Article 7.5)

Measures:

Tobacco Business Act (Law No. 11690, March 23, 2013), Articles 12, 13 and 16

Enforcement Decree of the Tobacco Business Act (Presidential Decree No. 24519, April 26, 2013), Articles 4 and 5

Enforcement Regulations of the Tobacco Business Act (Ordinance of the Ministry of Strategy and Finance No. 131, March 3, 2010), Articles 5, 7 and 7-3

Liquors Act (Law No. 11873, June 7, 2013), Articles 8 through 10 and 43

Enforcement Decree of the Liquors Act (Presidential Decree No. 24638, June 28, 2013), Article 9 and 56

Notice on Sales of Liquor by Telecommunication Means (Notice of National Tax Service, No. 2012-68, October 1, 2012) and Notice on Designation of Zone for Liquor License (Notice of National Tax Service, No. 2013-15, April 1, 2013)

Description:

Cross-Border Trade in Services

A person that supplies tobacco wholesale (including importation) or retail distribution services must establish an office in Korea.

Only designated tobacco retailers may sell tobacco to retail buyers. The sale of tobacco to retail buyers by mail or in electronic commerce is prohibited.

The distance between places of business of tobacco retailers must be at least 50 meters.

A person that supplies liquor wholesale distribution services must establish an office in Korea and obtain authorisation from the head of the relevant tax office, which is subject to an economic needs test.

The sale of liquor by telephone or in electronic commerce is prohibited.

Agriculture and Livestock

Obligations Concerned:

National Treatment (Article 11.3)

Measures:

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

Description:

Investment

Foreign persons may not:

  1. invest in an enterprise engaged in rice or barley farming; or
  2. hold 50 per cent or more of the equity interest of an enterprise engaged in beef cattle farming.

Business Services - An-gyung-sa (Optician and Optometry) Services

Obligations Concerned:

Market Access (Article 7.4)

Local Presence (Article 7.5)

Measures:

Medical Technicians Act (Law No. 11860, June 4, 2013), Article 12

Enforcement Regulations of the Medical Technicians Act (Ordinance of the Ministry of Health and Welfare No. 193, April 17, 2013), Article 15

Description:

Cross-Border Trade in Services

Only a natural person that is a licensed an-gyung-sa (optician or optometrist) that has established an office in Korea may engage in optician or optometry services.

An an-gyung-sa (optician or optometrist) may not establish more than one office.

Wholesale and Retail Distribution Services

Obligations Concerned:

Market Access (Article 7.4)

Local Presence (Article 7.5)

Measures:

Pharmaceutical Affairs Act (Law No. 12074, August 13, 2013), Articles 42 and 45

Enforcement Decree on the Pharmaceutical Affairs Acts (Presidential Decree No. 24479, March 23, 2013), Article 31-2

Enforcement Decree on the Standards of Facilities of Manufacturer and Importers of Medicinal Products, Etc. (Presidential Decree No. 24479, March 23, 2013), Article 6

Supply and Demand of Oriental Medicinal Herbs Regulations (Notice of the Ministry of Health and Welfare, No. 2013-63, April 18, 2013), Articles 4 and 12

Medical Devices Act (Law No. 12107, August 13, 2013), Article 15

Enforcement Regulations of the Medical Devices Act (Ordinance of the Prime Minister No. 1016, March 23, 2013), Article 20

Health Functional Foods Act (Law No. 11508, October 22, 2012), Article 6

Enforcement Regulations of the Health Functional Foods Act (Ordinance of the Prime Minister No. 1010, March 23, 2013), Articles 2 and 5

Food Sanitation Act (Law No. 11819, May 22, 2013), Articles 24, 36 and 37

Enforcement Decree of the Food Sanitation Act (Presidential Decree No. 24800, October 16, 2013), Articles 23 and 24

Enforcement Regulations of the Food Sanitation Act (Ordinance of the Prime Minister No. 1041, October 25, 2013), Articles 23 and 36 (attached table 14)

Act on the Control of Narcotics, Etc. (Law No. 11984, July 30, 2013), Articles 6 and 6-2

Description:

Cross-Border Trade in Services

A person that supplies wholesale trade services must establish an office in Korea in order to receive an import business license to supply such services with respect to:

  1. pharmaceuticals and related items;
  2. medical devices; or
  3. health functional foods (including dietary supplements).

To supply the following services a person must establish an office in Korea:

  1. transportation, sales, and preservation (cold storage) of food and food additives;
  2. food supply services;
  3. food inspection services; or
  4. narcotic drug wholesale and retail distribution services.

The Minister of Health and Welfare controls the supply and demand of the wholesale distribution of imported designated han-yak-jae (Asian medicinal herbs).

Certain liquor-selling bars and the wholesale and retail distribution of narcotics require authorisation by the relevant authority.

Retail Distribution Services of Pharmaceuticals

Obligations Concerned:

Market Access (Article 7.4)

Local Presence (Article 7.5)

Measures:

Pharmaceutical Affairs Act (Law No. 12074, August 13, 2013), Articles 20 and 21

Enforcement Decree on the Pharmaceutical Affairs Act (Presidential Decree No. 24479, March 23, 2013), Article 22-2

Description:

Cross-Border Trade in Services

A person that supplies pharmaceutical product retail distribution services (including distribution of han-yak-jae (Asian medicinal herbs)) must establish a pharmacy in Korea.

That person may not establish more than one pharmacy nor establish a pharmacy in the form of a corporation.

Transportation Services - Rail Transportation and Incidental Services

Obligations Concerned:

National Treatment (Article 7.2)

Document

Name
Australia - Korea, Republic of FTA (2014)
Treaty type
Other International Investment Agreements
Origin language
en

Dates and parties

Signed
8 Apr 2014
Entry into force
12 Dec 2014
Party ISO codes
AUSKOR

Files

PDF of the text Original PDF

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