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 |
Indicator 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 |
Indicator 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
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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 |
Indicator 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 |
Indicator 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 |
Indicator Signatory of the 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 |
Indicator 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
KOREA
Since January 2000, as amended in July 2009
Since January 2009, last amended in July 2011
Since January 2009, last amended in July 2011
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Maximum foreign equity share
Broadcasting Act (방송법)
Internet Multimedia Broadcasting Services Act (IPTV; 인터넷 멀티미디어 방송사업법)
Internet Multimedia Broadcasting Services Act (IPTV; 인터넷 멀티미디어 방송사업법)
Under Art. 14 of the Broadcasting Act, no foreign ownership is allowed in terrestrial broadcasting businesses or community radio broadcasting entities. Only 20% of foreign ownership is allowed to a program provider engaging in general programming or a CATV relay broadcasting business entity. Up to 49% of foreign ownership is allowed to a CATV broadcasting entity, satellite broadcasting business entity, or a single transmission network business entity. This restriction has been in place since 2009.
Additionally under Art. 9 of the Internet Multimedia Broadcasting Services Act, only up to 49% of foreign ownership is allowed for Internet multimedia broadcasting service providers or Internet multimedia broadcast content business operators. Only up to 20% of foreign ownership is allowed for internet multimedia broadcast content business operators engaged in general programming or specialised programming of news reports. This restriction has been in place since 2009.
Additionally under Art. 9 of the Internet Multimedia Broadcasting Services Act, only up to 49% of foreign ownership is allowed for Internet multimedia broadcasting service providers or Internet multimedia broadcast content business operators. Only up to 20% of foreign ownership is allowed for internet multimedia broadcast content business operators engaged in general programming or specialised programming of news reports. This restriction has been in place since 2009.
Coverage Broadcasting and media services
Sources
- https://web.archive.org/web/20240222144738/https://www.law.go.kr/%EB%B2%95%EB%A0%B9/%EB%B0%A9%EC%86%A1%EB%B2%95
- https://web.archive.org/web/20240222144738/https://www.law.go.kr/%EB%B2%95%EB%A0%B9/%EB%B0%A9%EC%86%A1%EB%B2%95
- https://web.archive.org/web/20221011063821/https://elaw.klri.re.kr/eng_service/lawView.do?hseq=38778&lang=ENG
- https://web.archive.org/web/20241127155519/https://elaw.klri.re.kr/eng_mobile/viewer.do?hseq=25281&type=part&key=43
- https://web.archive.org/web/20230930105323/https://www.state.gov/reports/2020-investment-climate-statements/south-korea/#report-toc__section-1
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KOREA
Since September 1998, last amended in January 2021
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Screening of investment and acquisitions
Foreign Investment Promotion Act (외국인투자 촉진법)
Since 1998, Art. 4 of the Foreign Investment Promotion Act has provided that the national government has a right to decline a foreign investment if there is clear evidence that this investment poses a threat to the national security or public interest. This is not sector-specific but applies horizontally. A decision of the national government about restricting a foreign investment is followed by a notification of the Minister of Knowledge Economy including the categories of business and content of restriction. Korea uses a negative list system, which means that the country is open to foreign investments unless it is explicitly restricted.
Coverage Horizontal
KENYA
N/A
Pillar Online sales and transactions |
Indicator Ratification of the 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
Kenya has not signed the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.
Coverage Horizontal
KENYA
N/A
Pillar Online sales and transactions |
Indicator UNCITRAL Model Law on Electronic Commerce
Lack of adoption of UNCITRAL Model Law on Electronic Commerce
Kenya has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce.
Coverage Horizontal
KENYA
N/A
Pillar Online sales and transactions |
Indicator UNCITRAL Model Law on Electronic Signatures
Lack of adoption of UNCITRAL Model Law on Electronic Signatures
Kenya has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures.
Coverage Horizontal
KENYA
Since November 2011
Since August 2014
Since August 2014
Pillar Online sales and transactions |
Indicator Restrictions on online payments
National Payment System Act No. 39 of 2011
National Payment System Regulations
National Payment System Regulations
According to Section 3 of the National Payment System Act, the Central Bank is empowered to designate a payment system. In addition, Section 12 prohibits unauthorised companies from conducting business with a payment service provider. Furthermore, pursuant to Art. 43 of the National Payment System Regulations, e-money issued shall be subject to an individual transaction limit that shall not exceed seventy thousand shillings (approx. USD 560) and an aggregate monthly load limit of one million shillings (approx. USD 7,990), provided that the Central Bank may approve higher limits for specific categories of e-money issuers. The limits may be amended by the Central Bank from time to time.
Coverage Horizontal
KENYA
Reported in 2023
Pillar Online sales and transactions |
Indicator Threshold for ‘De Minimis’ rule
Low de minimis threshold
It is reported that the de minimis threshold, that is the minimum value of goods below which customs do not charge duties, is KSH 2,580 (approx. USD 20), below the 200 USD threshold recommended by the International Chamber of Commerce (ICC).
Coverage Horizontal
KENYA
Since April 2010
Pillar Online sales and transactions |
Indicator Framework for consumer protection applicable to online commerce
The Kenya Information and Communications (Consumer Protection) Regulation
The Kenya Information and Communications (Consumer Protection) Regulation provides a comprehensive consumer protection framework that applies to online transactions.
Coverage Horizontal
KENYA
Since November 2012
Pillar Domestic data policies |
Indicator Requirement to allow the government to access personal data collected
National Intelligence Service Act 2012
Pursuant to Section 42 (1) and (2) of the National Intelligence Service Act 2012, the Director General of Intelligence may obtain warrants from the High Court of Kenya to obtain any information and monitor communication in order to preserve national security.
Despite the law requiring a warrant, an investigation by Privacy International in March 2017 revealed that the National Intelligence Agency (NIS) has direct access to Kenya’s telecommunications networks, which allows for the interception of both communications data and content. Direct access describes situations where state agencies have a direct connection to telecommunications networks, which allows them to obtain digital communications content and data (mobile and/or internet) without prior notice or judicial authorisation and without the involvement of the telecommunications provider or internet service provider that owns or runs the network.
Despite the law requiring a warrant, an investigation by Privacy International in March 2017 revealed that the National Intelligence Agency (NIS) has direct access to Kenya’s telecommunications networks, which allows for the interception of both communications data and content. Direct access describes situations where state agencies have a direct connection to telecommunications networks, which allows them to obtain digital communications content and data (mobile and/or internet) without prior notice or judicial authorisation and without the involvement of the telecommunications provider or internet service provider that owns or runs the network.
Coverage Horizontal
Sources
- https://web.archive.org/web/20220521084752/http://www.kenyalaw.org:8181/exist/kenyalex/actview.xql?actid=No.%2028%20of%202012
- https://cipesa.org/?wpfb_dl=254
- https://web.archive.org/web/20231201033122/https://privacyinternational.org/state-privacy/1005/state-privacy-kenya#commssurveillance
- https://web.archive.org/web/20231211160726/https://privacyinternational.org/report/43/track-capture-kill-inside-communications-surveillance-and-counterterrorism-kenya
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