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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"
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ITA: [{"meta_value":"0.00"}]

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

KOREA

Since March 1997
Since December 2015

Pillar Tariffs and trade defence measures applied on ICT goods  |  Indicator Participation in the 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

KOREA

Since July 1995
Since August 2005
Since May 2009

Pillar Public procurement of ICT goods and online services  |  Indicator 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)
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.
Coverage Horizontal
Sources

KOREA

Since December 2020

Pillar Public procurement of ICT goods and online services  |  Indicator 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

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)
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.
Coverage Software, network equipment, and hardware equipment

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.
Coverage Horizontal
Sources

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

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)
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

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

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