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JAPAN

Since December 1984

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Maximum foreign equity share
Act on Nippon Telegraph and Telephone Corporation, etc. - Act No. 85 of 1984 (日本電信電話株式会社等に関する法律 - 昭和五十九年法律第八十五号)
Ar. 4.1 of the "Act on Nippon Telegraph and Telephone Corporation, etc." stipulates that the government must at all times hold more than one‑third of the total number of issued shares in the telecommunications company Nippon Telegraph and Telephone (NTT).
Coverage Telecommunications sector

JAPAN

Since December 1949, last amended in November 2021
Since October 1980, last amended in May 2020
Since May 2020, last amended in 2024

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Screening of investment and acquisitions
Foreign Exchange and Foreign Trade Act (Act No. 228 of 1949) (外国為替及び外国貿易法(昭和二十四年法律第二百二十八号))

Cabinet Order on Inward Direct Investment (対内直接投資等に関する政令(昭和五十五年政令第二百六十一号))

List of Classifications of Listed Companies regarding the Prior-notification Requirements on Inward Direct Investment (○本邦上場会社の外為法における対内直接投資等事前届出該当性リスト)
Japan has implemented foreign direct investment (FDI) screening mechanisms through the Foreign Exchange and Foreign Trade Act (Act No. 228 of 1949), supplemented by procedural regulations such as the Cabinet Order on Inward Direct Investment. Under this Act, foreign investors in "Designated Business Sectors" or "Core Business Sectors" are required to submit a prior notification to the relevant ministry. After reviewing the notification, the ministry may either approve, amend, or suspend the proposed investment.
According to the Cabinet Order on Inward Direct Investment, "Core Business Sectors" include industries where foreign investors (e.g., non-residents or foreign corporations) must file prior notification for direct investment, such as acquiring 1% or more of voting rights in a listed company or purchasing shares in an unlisted company. These sectors, considered highly sensitive, are generally not exempt from prior notification requirements due to national security concerns.
The List of Classifications of Listed Companies outlines core business sectors such as semiconductors and dual-use technologies, metal mining of significant mineral resources, cybersecurity-related services (e.g., network security monitoring and critical infrastructure protection), and telecommunications. Non-core business sectors include software, data processing services, and internet-use support businesses.
Coverage Horizontal

JAPAN

Since April 1959, last amended in 2024

Pillar Intellectual Property Rights (IPRs)  |  Indicator Practical or legal restrictions related to the application process for patents
Patent Act (Act No. 121 of 1959) (昭和三十四年法律第百二十一号特許法)
According to Arts. 8 and 184.11 of the Patent Act, the appointment of an agent is required if the applicant is not resident in Japan. Such an agent must be a resident of Japan or a firm registered to practice before the Japan Patent Office. In addition, pursuant to the Art. 184.4, translation of international applications is required into Japanese.
Coverage Horizontal

KOREA

Since March 2002, last amended in June 2012

Pillar Online sales and transactions  |  Indicator Framework for consumer protection applicable to online commerce
Act on the Consumer Protection in Electronic Commerce Transactions etc. - Act No. 10303 (전자상거래 등에서의 소비자보호에 관한 법률)
The Act on Consumer Protection in Electronic Commerce Transactions provides a comprehensive framework for consumer protection that also applies to online transactions.
Coverage Horizontal

KOREA

N/A

Pillar Online sales and transactions  |  Indicator Ratification of the UN Convention on the Use of Electronic Communications in International Contracts
Lack of ratification of the UN Convention on the Use of Electronic Communications in International Contracts
Korea has signed but not ratified the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.
Coverage Horizontal

KOREA

Since 1999

Pillar Online sales and transactions  |  Indicator UNCITRAL Model Law on Electronic Commerce
UNCITRAL Model Law on Electronic Commerce
Korea has adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce.
Coverage Horizontal

KOREA

N/A

Pillar Online sales and transactions  |  Indicator UNCITRAL Model Law on Electronic Signatures
Lack of adoption of UNCITRAL Model Law on Electronic Signatures
Korea 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

KOREA

Since March 2011, as amended in 2023, last amended in 2025

Pillar Online sales and transactions  |  Indicator Local presence requirements for digital services providers
Personal Information Protection Act No. 10465 (개인정보 보호법)
Under Art. 31-2.1 of Personal Information Protection Act, a data handler without an address or business office in Korea must designate a local representative in writing if they meet certain criteria, such as revenue thresholds and the volume of personal data retained.
Coverage Horizontal

KOREA

Since September 2018

Pillar Online sales and transactions  |  Indicator Local presence requirements for digital services providers
Act on Promotion of Information and Communications Network Utilization and Information Protection etc (정보통신망 이용촉진 및 정보보호 등에 관한 법률)
According to Art. 32 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, foreign IT service providers without an office in Korea are required to appoint a local agent responsible for ensuring compliance with data privacy regulations.
Coverage IT services

KOREA

Since October 2006, entry into force in April 2007, last amended in 2025

Pillar Quantitative trade restrictions for ICT goods and online services  |  Indicator Export restrictions on ICT goods or online services
Act on Prevention of Divulgence and Protection of Industrial Technology (산업기술의 유출방지 및 보호에 관한 법률)
Art. 11 of the "Act on the Prevention of Divulgence and Protection of Industrial Technology" provides that when a target institution holding national core technology developed with government research and development subsidies intends to export such technology to a foreign enterprise or any other external entity, whether through sale, transfer or another means, it must obtain prior approval from the Minister of Trade, Industry and Energy. In reviewing an application for approval, the Minister may grant approval after assessing the potential effects of the export on national security, the national economy and other relevant interests, consulting with the head of the competent central governmental administrative authority, and obtaining deliberation by the Committee. Where a target institution holding and managing national core technology that is not subject to this approval requirement seeks to export such technology, it must submit a prior report to the Minister of Trade, Industry and Energy. Upon receiving this report, the Minister shall examine the likely impact of the proposed export on national security and any other pertinent factors, and shall accept the report if the export is deemed not to pose a serious risk to national security and to comply with the Act. The term national core technology refers to technology designated under Art. 9, the overseas divulgence of which could have a materially adverse effect on national security or on the development of the national economy, owing to its significant technological and economic value in domestic and international markets or its capacity to generate substantial growth in related industries.
Coverage National core technology

KOREA

Since December 1986, as amended in December 2008, last amended in June 2022

Pillar Quantitative trade restrictions for ICT goods and online services  |  Indicator Export restrictions on ICT goods or online services
Foreign Trade Act (대외무역법)
Since 2008, the Foreign Trade Act has required a license prior to the export of strategic goods. These items include dual-use items. Among them, electronics (category 3), computers (category 4), telecommunications and information security (category 5), and sensors and lasers (category 6) are relevant to digital goods. These categories are controlled by the Ministry of Trade, Investment, and Energy.
Coverage Strategic goods

KOREA

Reported in 2022

Pillar Quantitative trade restrictions for ICT goods and online services  |  Indicator Export restrictions on ICT goods or online services
Export ban to Russia on strategic goods
On 28 February 2022, the South Korean Ministry of Economy and Finance (MOEF) introduced export bans on "strategic goods" to Russia. These strategic goods are classified into two categories: "dual-use" and "military use." Among the dual-use items are ICT goods such as machines and apparatus primarily used for the manufacture of semiconductor boules or wafers, semiconductor devices, and electronic integrated circuits. Other items included in the ban are telephone sets, including those for cellular networks or other wireless networks, among others.
Coverage Strategic goods

KOREA

N/A

Pillar Technical standards applied to ICT goods and online services  |  Indicator Self-certification for product safety
Electrical Appliances Safety Control Act (전기용품 및 생활용품 안전관리법)
The Electrical Appliances Safety Control Act authorises the Korean Agency for Technology and Standards to develop safety certification schemes for the import of electronic appliances. The agency has created three certification schemes: KC Safety Certification, KC Safety Confirmation, and SDoC.
The requirements are the following:
- Type 1 products must go through a certification procedure that includes factory inspection (initial and regular) with mandatory product testing every two years in order to get KC Certification. Type 1 products include electric wire, cords, switches for electrical appliances, motor-oriented electric tools, breakers, insulated transformers, and lighting appliances;
- Type 2 products, which are considered less dangerous, must overcome certification procedures that include safety testing without factory inspection. Type 2 products include electric switches, electric appliances, audio and video electronic apparatus, lighting appliances, insulated transformers, and information technology equipment;
- Type 3 products are qualified to be clear of mandatory certification procedures with a showing of SDoC. Except for products that qualify for SDoC, the other two methods, which include local testing, could be burdensome. Type 3 products include fluorescent lamp starters, DC power supplies, and electric chargers connected to the electric appliances, as well as some electric appliances, audio and video electronic apparatus, and information technology equipment.
Coverage Electrical appliances

KOREA

Since 2010

Pillar Technical standards applied to ICT goods and online services  |  Indicator Self-certification for product safety
Radio Wave Act (전파법)
The Ministry of Science, ICT & Future Planning (MSIP) is an authority that conducts EMC and wireless communication certification. KC certification is issued by Korea’s National Radio Research Agency (RRA) and requires testing at an RRA-approved laboratory. There are three mandatory certification mechanisms for imported broadcasting and communications equipment to test the safety of radio waves (Art. 58-2):
- Certain equipment must receive a certification of conformity from the Ministry of Science, ICT and Future Planning after undergoing a test by a designated third-party laboratory. Such equipment includes wireless telephone alarm automatic receiver, radar equipment for ships, telephone, and modem;
- Equipment that is not subject to this certification may come in only with a showing of confirmation that verifies the compatibility after undergoing a test either by a designated third-party testing body or self-tests. The equipment that falls in this category includes Computing devices and peripherals, broadcasting set-top boxes, measuring instruments, industrial devices, and connectors.
- Equipment that is not subject to either of these schemes must have interim conformity after passing a test showing conformity with domestic or international standards. Equipment that is newly developed but whose conformity assessment criteria have yet to be developed falls in this category.
Korea has entered into a mutual recognition arrangement with the United States, Canada, EU, Vietnam, and Chile. However, except for Canada, the import of broadcasting and communications equipment from other countries must still receive certification of conformity from the South Korean government, even if a conformity test has been conducted in the exporting countries.
Coverage Broadcasting and communications equipment

KOREA

Since June 1961, last amended in October 2021
Since March 2001, as amended in May 2010, last amended in July 2022

Pillar Technical standards applied to ICT goods and online services  |  Indicator Product screening and additional testing requirements
National Intelligence Service Korea Act (국가정보원법)

Electronic Government Act (전자정부법)
Pursuant to Art. 4 of the National Intelligence Service Korea Act and Art. 56 of the Electronic Government Act, the National Intelligence Service (NIS) imposes security verification requirements on network equipment and cyber-security software in government procurement. Generally, they may satisfy the requirement by showing that the products are certified at a Common Criteria Recognition Arrangement (CCRA) accredited lab outside of Korea. However, certain network equipment must undergo an additional security verification process. Furthermore, 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.
Coverage Network equipment and cyber-security software

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