KOREA
Since January 2009, last amended in July 2011
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Screening of investment and acquisitions
Internet Multimedia Broadcasting Services Act (IPTV; 인터넷 멀티미디어 방송사업법)
In order to provide Internet multimedia broadcasting services, approval of the Broadcasting and the Communication Committee is required under the Internet Multimedia Broadcasting Business Act. This regime under Art. 4 has been in place since 2008.
Coverage Media services
Sources
- https://web.archive.org/web/20241127161536/https://www.law.go.kr/%EB%B2%95%EB%A0%B9/%EC%9D%B8%ED%84%B0%EB%84%B7%EB%A9%80%ED%8B%B0%EB%AF%B8%EB%94%94%EC%96%B4%EB%B0%A9%EC%86%A1%EC%82%AC%EC%97%85%EB%B2%9...
- https://web.archive.org/web/20241127155519/https://elaw.klri.re.kr/eng_mobile/viewer.do?hseq=25281&type=part&key=43
KOREA
Since January 1962
Since March 2017
Since March 2017
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Commercial presence requirement for digital services providers
Commercial Act (상법)
Enforcement Decree of Foreign Exchange Transactions Act
Enforcement Decree of Foreign Exchange Transactions Act
Commercial presence is not required to provide cross-border services under the Commercial Act and the Enforcement Decree of Foreign Exchange Transactions Act. However, it is reported that "Korea prohibits foreign satellite service providers from selling services (e.g., transmission capacity) directly to end-users without going through a company established in Korea. Given existing investment restrictions, this prohibition significantly restricts the ability of foreign satellite service suppliers to compete in the Korean market".
Coverage Satellite services
Sources
- https://web.archive.org/web/20241127161820/https://www.law.go.kr/LSW/lsInfoP.do?efYd=20160302&lsiSeq=176698&ancYd=20151201&nwJoYnInfo=Y&ancNo=13523&chrClsCd=010202&efGubun=Y#0000
- https://web.archive.org/web/20241127162213/https://www.law.go.kr/LSW/admRulInfoP.do?admRulSeq=2100000090910
- https://sim.oecd.org/Simulator.ashx?lang=En&ds=DGSTRI&d1c=apf&d2c=kor
- https://web.archive.org/web/20240919015434/https://ustr.gov/sites/default/files/2022%20National%20Trade%20Estimate%20Report%20on%20Foreign%20Trade%20Barriers.pdf
- Show more...
KOREA
ITA signatory?
I
II
Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods |
Sub-pillar Effective tariff rate on ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
1.74%
Coverage rate of zero-tariffs on ICT goods (%)
48.34%
Coverage: Digital goods
Sources
- http://wits.worldbank.org/WITS/
- https://www.wto.org/english/news_e/brief_ita_e.htm#:~:text=ITA%20participants%3A%20Australia%3B%20Bahrain%3B,%3B%20Jordan%3B%20Korea%2C%20Rep.
- https://www.wto.org/english/res_e/booksp_e/ita20years_2017_full_e.pdf
- https://web.archive.org/web/20220120054410/https://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154430.pdf
- https://www.wto.org/english/tratop_e/inftec_e/itscheds_e.htm
KOREA
Since March 1997
Since December 2015
Since December 2015
Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods |
Sub-pillar Participation in the World Trade Organization (WTO) Information Technology Agreement (ITA) and 2015 expansion (ITA II)
Information Technology Agreement (ITA) and in ITA Expansion Agreement (ITA II)
Korea is a signatory of the 1996 World Trade Organization (WTO) Information Technology Agreement (ITA) nor the 2015 expansion (ITA II).
Coverage ICT goods
Sources
- https://www.wto.org/english/news_e/brief_ita_e.htm#:~:text=ITA%20participants%3A%20Australia%3B%20Bahrain%3B,%3B%20Jordan%3B%20Korea%2C%20Rep.
- https://www.wto.org/english/res_e/booksp_e/ita20years_2017_full_e.pdf
- https://web.archive.org/web/20220120054410/https://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154430.pdf
- https://www.wto.org/english/tratop_e/inftec_e/itscheds_e.htm
- Show more...
KOREA
Since July 1995
Since August 2005
Since May 2009
Since August 2005
Since May 2009
Pillar Public procurement of ICT goods and online services |
Sub-pillar Exclusion from public procurement
Act on Contracts to Which the State is a Party (국가를 당사자로 하는 계약에 관한 법률)
Act on Contracts to Which a Local Government is a Party (지방자치단체를 당사자로 하는 계약에 관한 법률)
Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of their Markets (중소기업제품 구매촉진 및 판로지원에 관한 법률)
Act on Contracts to Which a Local Government is a Party (지방자치단체를 당사자로 하는 계약에 관한 법률)
Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of their Markets (중소기업제품 구매촉진 및 판로지원에 관한 법률)
The Act on Contracts to Which the State is a Party excludes, under Art. 4, international bidding for certain public procurement tenders in cases where:
- the procurement is for goods or services required for producing other goods or services intended for sale or resale;
- the products are manufactured by SMEs and purchased in accordance with the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of their Markets (Act on SMEs);
- a Presidential Decree prohibits such bidding in line with the Government Procurement Agreement.
Similarly, under Art. 5 of the Act on Contracts to Which a Local Government is a Party, international bidding for local government procurement is regulated in the same way. It is reported that the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products, which governs procurement under these frameworks, classifies foreign-invested enterprises as "large" companies solely because they are foreign or multinational. As a result, such "large" foreign companies can only participate in projects exceeding USD 220,000.
- the procurement is for goods or services required for producing other goods or services intended for sale or resale;
- the products are manufactured by SMEs and purchased in accordance with the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of their Markets (Act on SMEs);
- a Presidential Decree prohibits such bidding in line with the Government Procurement Agreement.
Similarly, under Art. 5 of the Act on Contracts to Which a Local Government is a Party, international bidding for local government procurement is regulated in the same way. It is reported that the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products, which governs procurement under these frameworks, classifies foreign-invested enterprises as "large" companies solely because they are foreign or multinational. As a result, such "large" foreign companies can only participate in projects exceeding USD 220,000.
Coverage Horizontal
Sources
- https://web.archive.org/web/20220626103822/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/20230216021712/https://law.go.kr/%EB%B2%95%EB%A0%B9/%EC%A7%80%EB%B0%A9%EC%9E%90%EC%B9%98%EB%8B%A8%EC%B2%B4%EB%A5%BC%EB%8B%B9%EC%82%AC%EC%9E%90%EB%A1%9C%ED%95%98%EB%8A%94%EA...
- https://web.archive.org/web/20241112170950/https://www.law.go.kr/LSW/lsLinkProc.do?lsNm=%EC%A4%91%EC%86%8C%EA%B8%B0%EC%97%85%EC%A0%9C%ED%92%88+%EA%B5%AC%EB%A7%A4%EC%B4%89%EC%A7%84+%EB%B0%8F+%ED%8C%90%...
- 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/20220402090657/https://elaw.klri.re.kr/eng_mobile/viewer.do?hseq=46268&type=part&key=28
- https://web.archive.org/web/20231106080406/https://ustr.gov/sites/default/files/2020_National_Trade_Estimate_Report.pdf
- Show more...
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
- Show more...
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
- Show more...
LAOS
Since 2007
Pillar Technical standards applied to ICT goods and online services |
Sub-pillar Self-certification for product safety
Standards Law (ກົດໝາຍວ່າດ້ວຍມາດຕະຖານ)
Art. 73 of the Standards Law allows agencies that grant standard-conformity certificates in Lao PDR to be accredited by an accreditation body recognised internationally or regionally.
Coverage Horizontal
LAOS
Since April 2021, entry into force in June 2021
Pillar Online sales and transactions |
Sub-pillar Maximum foreign equity share for investment in the e-commerce sector
Decree on Electronic Commerce, No. 296/GOL (ດຳລັດວ່າດ້ວຍການຄ້າເອເລັກໂຕຣນິກ)
Art. 9 of Decree No. 296/GOV stipulates that foreign shareholders are prohibited from holding more than 90% of the shares of the legal entity operating an electronic marketplace.
Coverage E-commerce sector
LAOS
Since April 2021, entry into force in June 2021
Pillar Online sales and transactions |
Sub-pillar Licensing scheme for e-commerce providers
Decree on Electronic Commerce, No. 296/GOL (ດຳລັດວ່າດ້ວຍການຄ້າເອເລັກໂຕຣນິກ)
Arts. 14 and 15 of Decree No. 296/GOV stipulate that obtaining a business operation licence for electronic commerce from the Ministry of Industry is mandatory for engaging in e-commerce activities. To support this application, the following certificates must be procured: an Enterprise Registration Certificate, a certificate on technical standards of the e-commerce channel, and a certificate to use electronic payment system services.
Coverage E-commerce
Sources
- https://web.archive.org/web/20211205172156/https://laoofficialgazette.gov.la/kcfinder/upload/files/Decree%20on%20Electronic%20Commerce%20No.296%20-%20Reduced.pdf
- https://web.archive.org/web/20230128101327/https://www.zicolaw.com/resources/alerts/the-state-of-e-commerce-in-laos/
- https://web.archive.org/web/20220518185502/https://ilawasia.com/lao-e-commerce-business-license/
- Show more...
LAOS
Reported in 2022, last reported in 2024
Pillar Online sales and transactions |
Sub-pillar Threshold for ‘De Minimis’ rule
Lack of de minimis threshold
Laos does not implement any de minimis threshold, which is the minimum value of goods below which customs do not charge duties.
Coverage Horizontal
LAOS
N/A
Pillar Online sales and transactions |
Sub-pillar Framework for consumer protection applicable to online commerce
Lack of comprehensive consumer protection law applicable to online commerce
Laos lacks a comprehensive framework for consumer protection that applies to online transactions.
Coverage Horizontal
LAOS
N/A
Pillar Online sales and transactions |
Sub-pillar Ratification of the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts
Lack of signature of the UN Convention on the Use of Electronic Communications in International Contracts
Laos has not signed the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.
Coverage Horizontal