KOREA
Since December 2018
Pillar Cross-border data policies |
Sub-pillar Ban to transfer and local processing requirement
Regulations on Electronic Financial Supervisory Regulations (전자금융감독규정)
The Electronic Financial Supervisory Regulations mandate that financial services using cloud services for credit information and unique identification details (such as resident registration numbers, driver’s licence numbers, passport numbers, and alien registration numbers) must process this data locally (Art. 14.2). Financial companies and electronic financial business operators are required to use cloud systems located in Korea to process personal credit information and unique identification information. This provision was inserted as part of an amendment in December of 2018.
Coverage Financial services
KOREA
Since January 2005
Pillar Cross-border data policies |
Sub-pillar Ban to transfer and local processing requirement
Act on the Protection, Use, etc. of Location Information (Act No. 7372 of 27 January 2005) (위치정보의보호및이용등에관한법률)
Per Art. 5 of the Act on the Protection, Use, Etc. of Location Information, any person who intends to engage in location information business shall obtain permission from the Korea Communications Commission. Even if permitted to do such business, location information providers or location-based service providers cannot collect the location information of individuals without the individual's consent under Art. 18. These restrictions have been in place since 2005.
It is reported that, although a supplier may export location information once acquiring a permit, Korea has never approved such a permit despite numerous applications by foreign suppliers over the past decade.
It is reported that, although a supplier may export location information once acquiring a permit, Korea has never approved such a permit despite numerous applications by foreign suppliers over the past decade.
Coverage Location-based services
Sources
- https://web.archive.org/web/20211028070056/https://www.law.go.kr/%EB%B2%95%EB%A0%B9/%EC%9C%84%EC%B9%98%EC%A0%95%EB%B3%B4%EC%9D%98%EB%B3%B4%ED%98%B8%EB%B0%8F%EC%9D%B4%EC%9A%A9%EB%93%B1%EC%97%90%EA%B4%8...
- https://web.archive.org/web/20221203052314/https://elaw.klri.re.kr/eng_service/lawView.do?hseq=43349&lang=ENG
- https://web.archive.org/web/20240407155542/https://ustr.gov/sites/default/files/2020_National_Trade_Estimate_Report.pdf
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KOREA
Since December 2023
Pillar Cross-border data policies |
Sub-pillar Infrastructure requirement
Ministry of Health and Welfare Notice No. 2023-245 - Standards for facilities and equipment necessary for management and preservation of electronic medical records ( 보건복지부고시 제2023-245호 - 전자의무기록의 관리·보존에 필요한 시설과 장비에 관한 기준)
In accordance with Art. 7 of the Ministry of Health and Welfare Notice No. 2023-245 on the Standards for Facilities and Equipment for Managing and Storing Hospital-Generated Electronic Medical Records, cloud servers storing patient electronic medical records created by hospitals must be situated in South Korea. Additionally, Art. 9 mandates that the Ministry of Health and Welfare shall issue an official notification every three years outlining the requirements for servers, including backup servers, used to store these records. Currently, these servers must be physically located in South Korea, and accessing medical records from outside the country is prohibited.
Coverage Health sector
KOREA
Since January 1990, last amended in April 2018
Pillar Intellectual Property Rights (IPRs) |
Sub-pillar Practical or legal restrictions related to the application process for patents
Patent Law (법령/특허법)
The Patent Law, enacted in 1990, does not include provisions that discriminate based on the nationality of a patent applicant. However, under Art. 25, non-resident foreigners can only obtain patents if their home countries provide reciprocal treatment to Korean nationals or if a treaty or convention with Korea exists, following the reciprocity principle. Additionally, Art. 5 stipulates that individuals without a domicile or place of business in Korea cannot initiate patent-related procedures or file legal proceedings against administrative decisions unless represented by a patent attorney or agent based in Korea. Finally, Art. 201 requires patent applications to include a Korean translation of key documents, such as the abstract, description of the invention, claims, and titles of drawings, among others.
Coverage Horizontal
Sources
- https://web.archive.org/web/20230313055106/https://www.law.go.kr/%EB%B2%95%EB%A0%B9/%ED%8A%B9%ED%97%88%EB%B2%95
- https://web.archive.org/web/20210510020835/https://www.internationallawoffice.com/Newsletters/Intellectual-Property/South-Korea/NAM-NAM/Considerations-when-establishing-South-Korean-patent-portfolios
- https://web.archive.org/web/20210617224120/https://elaw.klri.re.kr/kor_service/lawView.do?hseq=47910&lang=ENG
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KOREA
Since January 2023
Pillar Cross-border data policies |
Sub-pillar Infrastructure requirement
Cloud Security Assurance Program
In January 2023, the Korean Ministry of Science and Technology Information and Communication issued a notice of implementation and adopted an amendment to the Cloud Security Assurance Program (CSAP). Under the amendment, it is reported that, to obtain CSAP certification from the Korea Internet and Security Agency (KISA), a service provider’s cloud computing infrastructure, associated data, backup systems, as well as management and operational personnel, must all be located within Korea.
Coverage Cloud-computing sector
KOREA
Since August 1984
Pillar Intellectual Property Rights (IPRs) |
Sub-pillar Participation in the Patent Cooperation Treaty (PCT)
Patent Cooperation Treaty (PCT)
Korea is a party to the Patent Cooperation Treaty (PCT).
Coverage Horizontal
KOREA
Since June 2014
Pillar Cross-border data policies |
Sub-pillar Conditional flow regime
Act on the Establishment, Management of Spatial Data (공간정보의 구축 및 관리 등에 관한 법률)
Art. 16 of Act on the Establishment, Management of Spatial Data provides that geographical data related to maps or photos produced for the purpose of a survey cannot be transferred abroad except with the permission of the Minister of Land, Infrastructure and Transport. This provision has been in place since 2014.
Coverage Location-based services
Sources
- https://web.archive.org/web/20241127194621/https://faolex.fao.org/docs/pdf/kor167262.pdf
- https://web.archive.org/web/20241127194740/https://www.law.go.kr/LSW/lsInfoP.do?lsiSeq=228499&ancYd=20210112&ancNo=17893&efYd=20220113&nwJoYnInfo=N&efGubun=Y&chrClsCd=010202&ancYnChk=0#0000
- https://elaw.klri.re.kr/eng_service/lawView.do?hseq=32771&lang
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KOREA
Since January 1957, last amended in December 2022
Pillar Intellectual Property Rights (IPRs) |
Sub-pillar Copyright law with clear exceptions
Copyright Act (저작권법)
Korea has a clear regime of copyright exceptions that follows the fair use model, which enables the lawful use of copyrighted work by others without obtaining permission. Art. 35.5 of the Korean Copyright Act lists the exceptions, which include any use that does not conflict with the general method of use of the copyrighted work and which unfairly infringes the legitimate interests of the author. To determine whether an act of use of a copyrighted work falls under the fair use model, the following issues are considered: the purpose and nature of the use; the types and uses of copyrighted works; the proportion and importance of the part used in the whole work; and the impact of the use of the work on the market or current value or market or potential value of the work.
Coverage Horizontal
KOREA
Since December 2020
Pillar Public procurement of ICT goods and online services |
Sub-pillar Exclusion from public procurement
Software Industry Promotion Act (소프트웨어 개발촉진 법률)
According to Art. 48 of the Software Industry Promotion Act, participation in government-led software procurement is limited to SMEs. The Act allows the participation of "large" companies in exceptional circumstances. It is reported that this has effectively limited certain bids on software procurement, leaving out multinational firms.
Coverage Software
KOREA
Since March 2001, as amended in May 2010, last amended in July 2022
Since December 2004
Since December 2015
Since December 2004
Since December 2015
Pillar Public procurement of ICT goods and online services |
Sub-pillar Surrender of patents, source code or trade secrets to win public tenders/Restrictions on technology standards for public tenders
Electronic Government Act (전자정부법)
Cryptographic Module Testing and Validation Guidelines (암호모듈 구현 지침)
Cryptographic Module Validation Standards (KS X ISO/IEC 19790:2015)
Cryptographic Module Testing and Validation Guidelines (암호모듈 구현 지침)
Cryptographic Module Validation Standards (KS X ISO/IEC 19790:2015)
Under Art. 69 of the Electronic Government Act, enacted in 2001, and Cryptographic Module Testing and Validation Guidelines (Guidelines), promulgated in 2004, the National Intelligence Service (NIS) operates the Korea Cryptographic Module Validation Program (KCMVP). KCMVP validates that software, network (such as VPN and SW USB series), and hardware equipment that deals with non-confidential yet important information comply with the Cryptographic Module Validation Standards, which were amended in 2015. Appropriate encryption standards are developed in Korea, such as ARIA, SEED, LEA, and Hight. It is reported that the lack of recognition of other international encryption standards constitutes a barrier for foreign suppliers.
Under the Guidelines, suppliers of software, networks (such as VPN and SW USB series), and hardware equipment that deals with non-confidential yet important information must also submit the source code of their products to pass the Cryptographic Module Validation Process. It is reported that source code could potentially be required as part of common criteria certification administered by the IT Security Certification Center, a requirement for public procurement of cloud computing services.
Under the Guidelines, suppliers of software, networks (such as VPN and SW USB series), and hardware equipment that deals with non-confidential yet important information must also submit the source code of their products to pass the Cryptographic Module Validation Process. It is reported that source code could potentially be required as part of common criteria certification administered by the IT Security Certification Center, a requirement for public procurement of cloud computing services.
Coverage Software, network equipment, and hardware equipment
Sources
- https://web.archive.org/web/20240722192401/https://www.law.go.kr/%EB%B2%95%EB%A0%B9/%EC%A0%84%EC%9E%90%EC%A0%95%EB%B6%80%EB%B2%95
- https://www.swit.or.kr/download.do?fileName=/200811/%EC%95%94%ED%98%B8%EB%AA%A8%EB%93%88%20%EC%8B%9C%ED%97%98%20%EB%B0%8F%20%EA%B2%80%EC%A6%9D%EC%A7%80%EC%B9%A8(200501).pdf
- https://web.archive.org/web/20241127153436/https://www.nis.go.kr:4016/AF/1_7_3_5/view.do?seq=83¤tPage=1&selectBox=&searchKeyword=&fromDate=&toDate=
- https://web.archive.org/web/20230817220734/https://ustr.gov/sites/default/files/2020_National_Trade_Estimate_Report.pdf
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KOREA
Since July 1995
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Enforcement Decree of the Act on Contracts to Which the State is a Party (국가를 당사자로 하는 계약에 관한 법 시행령)
The Enforcement Decree of the Act on Contracts to Which the State is a Party, which was promulgated in 1995, provides some situations where a competitive bidding process is limited or does not apply. In light of factors such as the purpose, characteristics, and scale of the procurement contract, the government may restrict the participation of potential bidders (Art. 21), select certain bidders to engage in further bidding (Art. 23) or execute an at-will contract (Art. 26).
This is despite Since the Act on Contracts to which the State is a Party, under Art. 5, has prohibited "any special term or condition, discriminative against nationals of contracting states to the Agreement on Government Procurement and goods produced or services provided by such States and in favour of nationals of the Republic of Korea and goods produced or services provided from the Republic of Korea, to international tendering procedures."
The Act on Contracts to Which a Local Government is a Party, under Article 6, has applied the same principle since 2005. Per Art. 12, the contracting agency may not restrict the participation of bidders who have gone through a competitive bidding process.
This is despite Since the Act on Contracts to which the State is a Party, under Art. 5, has prohibited "any special term or condition, discriminative against nationals of contracting states to the Agreement on Government Procurement and goods produced or services provided by such States and in favour of nationals of the Republic of Korea and goods produced or services provided from the Republic of Korea, to international tendering procedures."
The Act on Contracts to Which a Local Government is a Party, under Article 6, has applied the same principle since 2005. Per Art. 12, the contracting agency may not restrict the participation of bidders who have gone through a competitive bidding process.
Coverage Horizontal
Sources
- https://web.archive.org/web/20240122235829/https://www.law.go.kr/%EB%B2%95%EB%A0%B9/%EA%B5%AD%EA%B0%80%EB%A5%BC%EB%8B%B9%EC%82%AC%EC%9E%90%EB%A1%9C%ED%95%98%EB%8A%94%EA%B3%84%EC%95%BD%EC%97%90%EA%B4%8...
- https://web.archive.org/web/20191104213839/https://www.law.go.kr/%EB%B2%95%EB%A0%B9/%EA%B5%AD%EA%B0%80%EB%A5%BC%EB%8B%B9%EC%82%AC%EC%9E%90%EB%A1%9C%ED%95%98%EB%8A%94%EA%B3%84%EC%95%BD%EC%97%90%EA%B4%8...
- https://web.archive.org/web/20191104213839/https://www.law.go.kr/%EB%B2%95%EB%A0%B9/%EA%B5%AD%EA%B0%80%EB%A5%BC%EB%8B%B9%EC%82%AC%EC%9E%90%EB%A1%9C%ED%95%98%EB%8A%94%EA%B3%84%EC%95%BD%EC%97%90%EA%B4%8...
- https://web.archive.org/web/20241127151854/https://elaw.klri.re.kr/eng_mobile/viewer.do?hseq=46373&type=part&key=19
- https://web.archive.org/web/20241127151935/https://elaw.klri.re.kr/eng_mobile/viewer.do?hseq=47463&type=part&key=10
- https://web.archive.org/web/20220121032624/https://elaw.klri.re.kr/eng_mobile/viewer.do?hseq=25473&type=new&key=
- https://web.archive.org/web/20220504015708/https://www.lexology.com/library/detail.aspx?g=9e39c3ae-8893-45d0-969f-e9de75c5d550
- Show more...
KOREA
Since June 1961, as amended in November 2011, last amended in October 2021
Since March 2001, as amended in May 2010, last amended in July 2022
Since March 2001, as amended in May 2010, last amended in July 2022
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
National Intelligence Service Korea Act (국가정보원법)
Electronic Government Act (전자정부법)
Electronic Government Act (전자정부법)
As of January 2021, pursuant to Art. 4 of the National Intelligence Service Korea Act (introduced by the amendment - Act No. 11104 - of 2011) and Art. 56 of the Electronic Government Act (introduced by the amendment - Act No. 10012 - of 2010), the National Intelligence Service (NIS) applies the Security Verification Scheme to network equipment and cyber-security software imported for government procurement. Generally, suppliers may satisfy this scheme in two ways: First, cyber-security software such as firewalls and intrusion prevention systems are certified at a Common Criteria Recognition Arrangement (CCRA) accredited lab outside of Korea. However, the Common Criteria (CC) certification may not be sufficient for two reasons. First, NIS may substitute the CC certification with other certification mechanisms that were internally developed (e.g., GS Certification). Second, NIS may reject a CC certification when it deems that the certification does not cover particular functions of the product that the government entity needs.
Second, network equipment must undergo a security function test. The equipment that has already passed this test may come in. NIS has recently required some of the cyber-security software that had been subject to the CCRA scheme to pass a security test report conducted by national test agencies. This software includes a software-based security USB (since January 2020), virtualisation product (January 2020), host data leakage prevention product (January 2021), network data leakage prevention product (January 2021), and inter-network data transmission product (January 2022).
There have been reported concerns, starting in 2014, over the additional verification requirement for network equipment, including equipment products that are "not normally considered as 'security' products, such as routers, switches, and IP-PBXs." It is also reported that the NIS has applied the verification scheme "in a non-transparent fashion."
Second, network equipment must undergo a security function test. The equipment that has already passed this test may come in. NIS has recently required some of the cyber-security software that had been subject to the CCRA scheme to pass a security test report conducted by national test agencies. This software includes a software-based security USB (since January 2020), virtualisation product (January 2020), host data leakage prevention product (January 2021), network data leakage prevention product (January 2021), and inter-network data transmission product (January 2022).
There have been reported concerns, starting in 2014, over the additional verification requirement for network equipment, including equipment products that are "not normally considered as 'security' products, such as routers, switches, and IP-PBXs." It is also reported that the NIS has applied the verification scheme "in a non-transparent fashion."
Coverage Network equipment and software
Sources
- https://web.archive.org/web/20230815004148/https://www.law.go.kr/%EB%B2%95%EB%A0%B9/%EC%A0%84%EC%9E%90%EC%A0%95%EB%B6%80%EB%B2%95
- https://web.archive.org/web/20230323023326/https://elaw.klri.re.kr/eng_mobile/viewer.do?hseq=33396&type=part&key=4
- https://web.archive.org/web/20241127154445/https://elaw.klri.re.kr/eng_service/lawHistory.do?seq=30&hseq=374
- https://web.archive.org/web/20220331121040/https://eng.nis.go.kr/EAF/1_7_1_1.do
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KOREA
Since March 2015
Since 2016
Since 2016
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Act on the Development of Cloud Computing and Protection of Its Users (클라우드컴퓨팅 발전 및 이용자 보호에 관한 법률)
Notice on Protection of information for Cloud Computing Services (클라우드컴퓨팅서비스 정보보호에 관한 기준 고시)
Notice on Protection of information for Cloud Computing Services (클라우드컴퓨팅서비스 정보보호에 관한 기준 고시)
In 2016, the Korea Internet Security Agency (KISA) developed a cloud security certificate (KCSC) system governing public-sector cloud service procurement. This is based on the 2016 Notice on Protection of Information for Cloud Computing Services promulgated pursuant to Art. 23-2 of the Act on the Development of Cloud Computing and Protection of Its Users, which was inserted into the statute in 2015. It is reported that this constitutes a key barrier for cloud service providers because they are unable to meet some requirements for the certification without creating a separate, Korean-unique product.
Coverage Cloud computing services
Sources
- https://web.archive.org/web/20230329123156/https://www.law.go.kr/%EB%B2%95%EB%A0%B9/%ED%81%B4%EB%9D%BC%EC%9A%B0%EB%93%9C%EC%BB%B4%ED%93%A8%ED%8C%85%20%EB%B0%9C%EC%A0%84%20%EB%B0%8F%20%EC%9D%B4%EC%9A%A...
- https://web.archive.org/web/20241213204007/https://www.law.go.kr/LSW/admRulInfoP.do?admRulSeq=2100000043882
- https://web.archive.org/web/20200921005734/https://www.kisa.or.kr/business/infor/inforcert_3.jsp
- https://web.archive.org/web/20220120173314/https://elaw.klri.re.kr/eng_mobile/viewer.do?hseq=35630&type=part&key=43
- https://web.archive.org/web/20221112230855/https://ustr.gov/sites/default/files/2020_National_Trade_Estimate_Report.pdf
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KOREA
Since January 2016
Pillar Public procurement of ICT goods and online services |
Sub-pillar Signatory of the World Trade Organization (WTO) Agreement on Government Procurement (GPA) with coverage of the most relevant services sectors (CPC 752, 754, 84)
WTO Agreement on Government Procurement (GPA)
Korea is a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA), and its commitments also cover the services sectors considered most important for digital trade, namely telecommunication services (CPC 752), telecommunication-related services (CPC 754), and computer and related services (CPC 84).
Coverage Horizontal
KOREA
Since December 1984, last amended in June 2022
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Maximum foreign equity share
Telecommunications Business Act (전기통신사업법)
Under the Telecommunications Business Act, telecommunications businesses are divided into two categories: namely, facilities-based telecommunications services (FTS) and value-added telecommunications services (VATS). FTS refers to businesses that install telecommunications line equipment and facilities and provide telecom services. VATS are online services using the FTS network, such as cloud computing services, email, e-commerce platforms, and internet search engines. Since 2009, the Act has prohibited foreigners from owning more than 49% of the stock of a telecom enterprise when it comes to FTS (Art. 8).
Coverage Telecommunications services