RESTRICTED
WORLD TRADE G/SCM/Q2/KOR/8
2December 1996
ORGANIZATION(96-5076)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
Follow-up Questions from theEUROPEAN COMMUNITY Regarding theNew
andFullNotification ofKOREA1
Thefollowing communication, dated 26November 1996, hasbeenreceived fromthePermanent
Delegation oftheEuropean Commission.
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1. TaxCredit forInvestments inFacilities
Does thisscheme provide better treatment ininstances where domestic goods areusedinstead
ofimports? Ifso,whatplans arethere tophase itout?
2. Deferred Export Financing Fund
Under thisscheme, itisunderstood thattheExport-Import Bank ofKorea provides uptoten
years preferential bridging loans forexporters. Could Korea explain howthiscanbeinconformity
withtheOECD guidelines?
3. Prototype andHigh Tech Development Fund
Underthisscheme,ithasbeenannouncedthattheMinistryofFinanceandEconomywillpromote
105strategic items. Thiswould seem torender thesubsidy specific. WillKorea notify itunder
Article 25?
4. Interest subsidies
CanKorea explain whytheBank ofKorea isabletoofferpreferential interest ratesforexport
activities compared tothedomestic ratesavailable from commercial banks?
1G/SCM/N/3/KOR+Rev.1.