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 |
Sub-pillar 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 |
Sub-pillar 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 |
Sub-pillar 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 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)
0.36%
Coverage rate of zero-tariffs on ICT goods (%)
83.26%
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
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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
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KENYA
Since November 2011
Since August 2014
Since August 2014
Pillar Online sales and transactions |
Sub-pillar 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 |
Sub-pillar 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 |
Sub-pillar 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
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
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 |
Sub-pillar Adoption of United Nations Commission on International Trade Law (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 |
Sub-pillar Adoption of United Nations Commission on International Trade Law (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 March 2009
Since July 2017
Since July 2017
Pillar Intermediary liability |
Sub-pillar Monitoring requirement
National Cohesion And Integration Act No. 12 of 2008
Guidelines on Prevention of Dissemination of Undesirable Bulk and Premium Rate Political Messages and Political Social Media Content Via Electronic Communications Networks
Guidelines on Prevention of Dissemination of Undesirable Bulk and Premium Rate Political Messages and Political Social Media Content Via Electronic Communications Networks
Section 13 of Act No. 12 creates the offence, and outlaws hate speech, and Section 62 makes an offence for any media enterprise to publish words intended to incite feelings of contempt, hatred, hostility, violence or discrimination against any person, group or community on the basis of ethnicity or race. A media enterprise can be fined up to one million shillings (USD 8,800) for publishing hate speech.
In addition, under the "Guidelines for the Prevention of Dissemination of Undesirable Bulk Political SMS and social media content via Electronic Communications Networks", intermediaries (bulk messaging and social media service providers) can be held liable for spreading falsehoods, hate speech and insults. Art. 13.6 of the Guidelines establishes that it shall be the responsibility of the Administrator of a social media platform to moderate and control undesirable content and discussions that have been brought to their attention on their platform. In this respect, Art. 13.7 provides that social media service providers shall be required to pull down accounts used in disseminating undesirable political content on their platform that have been brought to their attention within 24 hours.
In addition, under the "Guidelines for the Prevention of Dissemination of Undesirable Bulk Political SMS and social media content via Electronic Communications Networks", intermediaries (bulk messaging and social media service providers) can be held liable for spreading falsehoods, hate speech and insults. Art. 13.6 of the Guidelines establishes that it shall be the responsibility of the Administrator of a social media platform to moderate and control undesirable content and discussions that have been brought to their attention on their platform. In this respect, Art. 13.7 provides that social media service providers shall be required to pull down accounts used in disseminating undesirable political content on their platform that have been brought to their attention within 24 hours.
Coverage Media and bulk messaging and social media service providers
Sources
- https://web.archive.org/web/20230327012713/https://cohesion.or.ke/index.php/resources/policies-and-regulations?download=29:national-cohesion-and-integration-act-2008
- https://web.archive.org/web/20231208161615/https://wilmap.stanford.edu/entries/national-cohesion-and-integration-act-no-12-2008
- https://freedomhouse.org/country/kenya/freedom-net/2022
- https://cipesa.org/?wpfb_dl=254
- https://web.archive.org/web/20211002220610/https://www.ca.go.ke/wp-content/uploads/2018/02/Guidelines-on-Prevention-of-Dissemination-of-Undesirable-Bulk-and-Premium-Rate-Political-Messages-and-Politic...
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KENYA
Since October 1998, entry into force in February 1999, as amended in 2020
Since February 2001
Since February 2001
Pillar Content access |
Sub-pillar Licensing schemes for digital services and applications
Kenya Information and Communications Act, 1998
Kenya Communications Regulations, 2001
Kenya Communications Regulations, 2001
The Communications Authority of Kenya (CA) is mandated to license all telecommunications systems and services in the country, including content service providers. The Content Service Provider licence allows a licensee to provide content-related services to end users who are customers of the application service providers. Content service providers use the infrastructure of network facilities providers and the application service providers' systems to reach their customers. The services offered by content service providers are of information, entertainment, education, health, social, etc. nature, which can either be text, voice, or video clips delivered to a customer’s mobile device on request or as subscribed to by the customer.
CA is guided by the provisions of the relevant statutes, including the Kenya Information and Communications Act, 1998 (Section 25) and the Kenya Communications Regulations 2001 (Part V). The CA has a Unified Licensing Framework (ULF) in place, which is technology- and service-neutral. The ULF market is structured into three main licenses: Network Facilities Provider, Application Service Provider, and Content Service Provider.
CA is guided by the provisions of the relevant statutes, including the Kenya Information and Communications Act, 1998 (Section 25) and the Kenya Communications Regulations 2001 (Part V). The CA has a Unified Licensing Framework (ULF) in place, which is technology- and service-neutral. The ULF market is structured into three main licenses: Network Facilities Provider, Application Service Provider, and Content Service Provider.
Coverage Content service providers, application service providers
Sources
- https://web.archive.org/web/20220711042503/https://www.ca.go.ke/wp-content/uploads/2021/02/Kenya-Information-and-Communication-Act-1998.pdf
- https://web.archive.org/web/20201102132039/https://www.ca.go.ke/industry/telecommunication/licensing-procedure/
- https://web.archive.org/web/20200920105521/https://www.ca.go.ke/industry/telecommunication/market-structure/
- https://web.archive.org/web/20220120000720/https://www.ca.go.ke/wp-content/uploads/2018/02/The-Kenya-Communications-Regulations-2001-1.pdf
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