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
- Show more...
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
KOREA
Since February 2022, entry into force in August 2022
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Screening of investment and acquisitions
Act on Special Measures for Strengthening and Protecting the Competitiveness of National High-Tech Strategic Industries, Act No. 18813 (국가첨단전략산업 경쟁력 강화 및 보호에 관한 특별조치법, 법률 제18813호)
Art. 13 of Act No. 18813 mandates that companies with national core and strategic technologies, as prescribed in the National Core Technology list, must obtain approval from the Minister of Trade, Industry, and Energy before being acquired by or merging with a foreign company, or entering into a joint venture with one. These are referred to as "National High-Tech Strategic Technology" and include, among others, semiconductor companies.
Coverage "National High-Tech Strategic Technologies"
Sources
- https://web.archive.org/web/20230912214251/https://www.law.go.kr/%EB%B2%95%EB%A0%B9/%EA%B5%AD%EA%B0%80%EC%B2%A8%EB%8B%A8%EC%A0%84%EB%9E%B5%EC%82%B0%EC%97%85%EA%B2%BD%EC%9F%81%EB%A0%A5%EA%B0%95%ED%99%9...
- https://web.archive.org/web/20241127160227/https://faolex.fao.org/docs/pdf/kor219725.pdf
- https://web.archive.org/web/20240229023142/https://legal.fronteousa.com/south-koreas-technology-protection-strategy-of-national-core-technologies/
- https://web.archive.org/web/20240718135645/https://www.state.gov/reports/2024-investment-climate-statements/south-korea/
- https://web.archive.org/web/20240812110847/https://www.leeko.com/newsl/ip/202209/ip_202209.pdf
- https://web.archive.org/web/20230922035705/https://www.kimchang.com/en/insights/detail.kc?sch_section=4&idx=24744
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KOREA
ITA signatory?
I
II
Pillar Tariffs and trade defence measures applied on ICT goods |
Indicator Effective tariff rate on ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
0.36%
Coverage rate of zero-tariffs on ICT goods (%)
83.26%
Coverage: ICT 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
KAZAKHSTAN
Since August 2012
Pillar Quantitative trade restrictions for ICT goods and online services |
Indicator Export restrictions on ICT goods or online services
Decision No. 134 of the EEC Board on the Single List of Goods Subject to Prohibitions or Restrictions on Import or Export by the Customs Union Member States within the EurAsEC When Trading with Third Countries and Provisions on the Application of Restrictions, 16 August 2012
The list of goods prohibited or restricted for import and export in the Eurasian Economic Union, including Kazakhstan, was determined by the decision of the Board of the Eurasian Economic Commission in 2012. The Decision has been amended a few times since then. According to Section 1 of the so-called "Single List" contained in the Decision, the following digital goods are among the goods that are subject to export restrictions: (i) Special hardware meant for secret information acquisition; (ii) Encryption devices.
Coverage Special hardware and encryption devices
KAZAKHSTAN
Since July 2004, last amended in September 2022
Pillar Technical standards applied to ICT goods and online services |
Indicator Self-certification for product safety
Law of the Republic of Kazakhstan of July 5, 2004 No. 567-II "On Communications" (Қазақстан Республикасының 2004 жылғы 5 шілдедегі N 567 Заңы Байланыс туралы)
According to Art. 16 of the Law on Communication, technical means of communication used in the telecommunications network of the Republic of Kazakhstan are subject to a procedure of mandatory conformity acknowledgement by the authorities. The equipment has to be submitted to certification bodies recognised (or approved) by the regulator for certification.
Coverage Telecom equipment
KAZAKHSTAN
Since April 2004, last amended in December 2022
Since March 2015, as amended in July 2019, last amended September 2022
Since January 2015, last amended in October 2022
Since March 2015, as amended in July 2019, last amended September 2022
Since January 2015, last amended in October 2022
Pillar Online sales and transactions |
Indicator Licensing scheme for e-commerce providers
Law No. 544 on the Regulation of Trading Activities (Қазақстан Республикасының 2004 жылғы 12 сәуірдегі N 544 Заңы Сауда қызметін реттеу туралы)
Order No. 264 on the Approval of the Rules of Domestic Trade (№ 264 бұйрығы Ішкі сауда қағидаларын бекіту туралы)
Order No. 4 on the Approval of the Forms of Messages and the Principles of Receiving Messages by State Bodies, as well as on Determining the State Bodies That Carry Out the Reception of Messages ( бұйрығы № 4 Хабарламалар нысандарын және Мемлекеттік органдардың хабарламаларды қабылдау қағидаларын бекіту туралы, сондай-ақ хабарламаларды қабылдауды жүзеге асыратын мемлекеттік органдарды айқындау туралы)
Order No. 264 on the Approval of the Rules of Domestic Trade (№ 264 бұйрығы Ішкі сауда қағидаларын бекіту туралы)
Order No. 4 on the Approval of the Forms of Messages and the Principles of Receiving Messages by State Bodies, as well as on Determining the State Bodies That Carry Out the Reception of Messages ( бұйрығы № 4 Хабарламалар нысандарын және Мемлекеттік органдардың хабарламаларды қабылдау қағидаларын бекіту туралы, сондай-ақ хабарламаларды қабылдауды жүзеге асыратын мемлекеттік органдарды айқындау туралы)
In accordance with subparagraph 4-1 of Art. 7 of Law No. 544, the Minister of National Economy of Kazakhstan ordered the approval of the Rules of Domestic Trade (Order No. 264). Arts. 105-1 and 106-1 of the Rules mandate e-commerce sellers to indicate their BIN (business identification number), address of business operations on the territory of Kazakhstan and mobile telephone number registered in Kazakhstan in order to operate in the country. Additional information on this requirement is found in Annex 3-10 of Order No. 4.
Coverage E-commerce sector
Sources
- https://web.archive.org/web/20230306172845/https://adilet.zan.kz/rus/docs/Z040000544_
- https://web.archive.org/web/20231209042313/https://adilet.zan.kz/rus/docs/V1500011148
- https://web.archive.org/web/20231004020931/https://adilet.zan.kz/rus/docs/V1500010194
- https://sim.oecd.org/Simulator.ashx?lang=En&ds=DGSTRI&d1c=apf&d2c=kaz
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KAZAKHSTAN
Since July 2018, entry into force in July 2019, last amended in January 2020
Pillar Online sales and transactions |
Indicator Restrictions on online payments
Law No. 167-VІ SAM on Currency Regulation and Currency Control (Закон Республики Казахстан от 2 июля 2018 года № 167-VІ ЗРК)
According to Art. 7 of Law No. 167-VІ SAM on Monetary Regulation and Foreign Exchange Control (which repealed Law No. 57 of 2005 on Monetary Regulation in July 2018), the use of a local bank is mandatory for settlements in foreign currency between residents of the KR and non-residents. Exceptions are settlements made from a foreign bank account of a non-resident, carried out on account of the performance of obligations of a resident (e.g. when a foreign parent company pays its local branch in the KR) and settlements with non-residents made from the resident's account in a foreign bank. Also, settlements between residents of the KR (including local branches of foreign non-financial legal entities considered residents) must be made in local currency.
Coverage Horizontal
KAZAKHSTAN
Since December 2017
Pillar Online sales and transactions |
Indicator Threshold for ‘De Minimis’ rule
Law No. 115-VI ЗРК of the Republic of Kazakhstan on The Ratification of the Treaty on the Customs Code of the Eurasian Economic Union (Қазақстан Республикасының Заңы 2017 жылғы 13 желтоқсандағы № 115-VI ҚРЗ Еуразиялық экономикалық одақтың Кеден кодексі туралы шартты ратификациялау туралы)
According to Art. 136 of Law No. 115-VI ЗРК of the Republic of Kazakhstan, imports placed under the customs procedure for domestic consumption with a total customs value not exceeding the threshold of EUR 200 (approx. 219 USD) are exempt from import duties and taxes.
Coverage Horizontal
KAZAKHSTAN
Since November 2015, last amended in December 2023
Pillar Online sales and transactions |
Indicator Restrictions on domain names
Law No. 418-V ZRK of the Republic of Kazakhstan on Informatization (Қазақстан Республикасының Ақпараттандыру туралы Заңы 2015 жылғы 24 қарашадағы № 418-V ҚРЗ)
According to Art. 56 of the Law on Informatization requires that internet resources with ".kz" and ".қaz" domains must be hosted on hardware and software complexes located in Kazakhstan. In other words, an internet resource (website, web application, web service) using a ".kz" or ".қaz" domain must be hosted on a server in a data centre located in Kazakhstan. The server must also be connected to a Kazakh internet provider and use a (dedicated or shared) Kazakhstan IP address. It is reported that the owners of Internet resources were originally required to start using Kazakhstan's data centres by November 2020; however, since the related transition required additional costs and time, the deadline for meeting this requirement was extended to February 2021.
Coverage Internet resources with ".kz" and ".қaz" domain
KAZAKHSTAN
Since May 2010
Pillar Online sales and transactions |
Indicator Framework for consumer protection applicable to online commerce
Law of the Republic of Kazakhstan dated 4 May 2010 No. 274-IV on Protection of Consumer Rights (Қазақстан Республикасының 2010 жылғы 4 мамырдағы № 274-IV Заңы Тұтынушылардың құқықтарын қорғау туралы)
The Law on Protection of Consumer Rights provides a comprehensive framework for consumer protection that also applies to online transactions. Art. 33 of the Law on Protection of Consumer Rights includes provisions for the protection of e-consumers. Additionally, e-consumers enjoy all other privileges of the normal consumers.
Coverage Horizontal
KAZAKHSTAN
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
Kazakhstan has not signed the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.
Coverage Horizontal
