WORLD TRADE GATS/SC/48/Suppl.2
11April 1997
ORGANIZATION(97-1374)
Trade inServices
REPUBLIC OFKOREA
Schedule ofSpecific Commitments
Supplement 2
(This isauthentic inEnglish only)
_______________
Thistextsupplements theentries relating totheTelecommunication services section contained
onpages 18to19ofdocument GATS/SC/48.GATS/SC/48/Suppl.2
Page2REPUBLIC OFKOREA -SCHEDULE OFSPECIFIC COMMITMENTS
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
2.COMMUNICATION
SERVICES1
C.Telecommunications services
Facilities-based:
a.Voice telephone services
(CPC 7521**)
b.Packet-switched data
transmission services
(CPC 7523**)
c.Circuit-switched data
transmission services
(CPC 7523**)
d.Telex services
(CPC 7523**)
e.Telegraph services
(CPC 7523**)
f.Facsimile services
(CPC 7521**, 7529**)(1)None except thattheprovision ofallservices is
subject tocommercial arrangements withlicensed
Korean service suppliers
(2)None
(3)None except that:
(i)Each service supplier must bealicensed Korean
juridical person.
(ii)Until 31December 1998, alicence, including radio
station licence, maynotbegranted toajuridical
person whose largest shareholder is:
(a) Foreign government
(b) Foreign person, or
(c) Juridical person 50percent(15percent, ifthe
largest shareholder ofthejuridical person isa
foreign government oraforeign person) or
more ofwhose voting shares areowned by
foreign governments orforeign persons.(1)None
(2)None
(3)NoneAscontained inthe
attachment
1InthisSchedule ofSpecific Commitments onBasic Telecommunications, the*indicates thattheservice specified isacomponent ofamore aggregated CPC itemspecified elsewhere inthis
classification list,andthe**indicates thattheservice specified constitutes onlyapartofthetotalrange ofactivities covered bytheCPC concordance.GATS/SC/48/Suppl.2
Page3Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Facilities-based: (cont'd)
g.Private leased circuit
services
(CPC 7522**, 7523**)
o.Other
Digital cellular services
(CPC 75213*)
Paging services
(CPC 75291*)
PCS(personal
communications services,
CPC 75213*)
TRS (trunked radio system)
services (CPC 7523**,
CPC 75213*)
Mobile dataservices
(CPC 7523**)(iii)Until 31December 2000, alicense, including radio
station licence, maybegranted toajuridical person
inwhom nomore than33% oftheaggregate voting
shares areowned byentities identified in(a)through
(c).
From 1January 2001, alicense, including radio
station licence, maybegranted toajuridical person
inwhom nomore than49%oftheaggregate voting
shares areowned byentities identified in(a)through
(c).
(iv)Alicence, including radio station licence, maynotbe
granted toajuridical person more than33percent
(10percent, inthecaseofwireline-based voice
telephone services) ofwhose voting share isowned
byaperson2
(v)Thelargest shareholder ofKTmust beKorean
government oraKorean person. While KT'sshare
owned byaperson3must benomore than3percent,
theaggregate foreign shareholding inKTmust beno
more than20percentuntil 31December 2000, and
nomore than33percentfrom 1January 2001.
(4)Unbound except asindicated inhorizontal
commitments(4)Unbound except asindicated in
horizontal commitments
2Thedefinition of"aperson" isinaccordance withtherelevant provision ofthePresidential Decree oftheKorea 'sTelecommunications Business Law.
3Thedefinition of"aperson" isinaccordance withtherelevant provision ofthePresidential Decree oftheKorea 'sTelecommunications Business Law.GATS/SC/48/Suppl.2
Page4Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Resale-based:
a.Voice telephone services
(CPC 7521**)
b.Packet-switched data
transmission services
(CPC 7523**)
c.Circuit-switched data
transmission services
(CPC 7523**)
d.Telex services
(CPC 7523**)
e.Telegraph services
(CPC 7523**)
f.Facsimile services
(CPC 7521**, 7529**)
g.Private leased circuit
services (CPC 7522**,
7523**)(1)None except that:
(i)Provision ofallservices issubject tocommercial
arrangements withlicensed Korean service suppliers
(ii)Until 31December 2000 resale ofvoice telephone
services interconnected tothepublic
telecommunications network canonlybesupplied by
companies established inKorea
(2)None
(3)None except that:
(i)Each service supplier must bealicensed Korean
juridical person.
(ii)Foreign shareholding insuppliers ofresale voice
telephone services, interconnected tothepublic
telecommunications network, willbepermitted only
after 1January 1999. From 1January 1999, foreign
shareholding willbepermitted upto49percent. As
of1January 2001, 100percent foreign shareholding
willbepermitted.(1)None
(2)None
(3)None
o.Other
Digital cellular services
(CPC 75213*)
Paging services
(CPC 75291*)
PCS (personal
communications services,
CPC 75213*)
TRS (trunked radio system)
services (CPC 7523**,
CPC 75213*)
Mobile dataservices
(CPC 7523**)(4)Unbound except asindicated inhorizontal
commitments(4)Unbound except asindicated in
horizontal commitmentsGATS/SC/48/Suppl.2
Page5
REFERENCE PAPER
Scope
Thefollowingaredefinitionsandprinciplesontheregulatoryframeworkforthebasictelecommunications
services.
Definitions
Users mean service consumers andservice suppliers.
Essential facilities mean facilities ofapublic telecommunications transport network orservice that
(a) areexclusively orpredominantly provided byasingle orlimited number ofsuppliers;
and
(b) cannot feasibly beeconomically ortechnically substituted inorder toprovide aservice.
Amajor supplier isasupplier which hastheability tomaterially affect theterms ofparticipation (having
regard toprice andsupply) intherelevant market forbasic telecommunications services asaresult
of:
(a) control overessential facilities; or
(b) useofitsposition inthemarket.
1. Competitive safeguards
1.1 Prevention ofanti-competitive practices intelecommunications
Appropriate measures shallbemaintained forthepurpose ofpreventing suppliers who, alone
ortogether, areamajor supplier from engaging inorcontinuing anti-competitive practices.
1.2 Safeguards
Theanti-competitive practices referred toabove shallinclude inparticular:
(a) engaging inanti-competitive cross-subsidization;
(b) using information obtained from competitors withanti-competitive results; and
(c) notmaking available toother services suppliers onatimely basistechnical information
about essential facilities andcommercially relevant information which arenecessary
forthem toprovide services.GATS/SC/48/Suppl.2
Page6
2. Interconnection
2.1 Thissection applies tolinking withsuppliers providing public telecommunications transport
networks orservices inorder toallow theusers ofonesupplier tocommunicate withusers ofanother
supplier and toaccess services provided byanother supplier, where specific commitments are
undertaken.
2.2 Interconnection tobeensured
Interconnection withamajor supplier willbeensured atanytechnically feasible point inthe
network. Such interconnection isprovided.
(a) under non-discriminatory terms, conditions (including technical standards and
specifications) andratesandofaquality nolessfavourable thanthatprovided forits
ownlikeservices orforlikeservices ofnon-affiliated service suppliers orforits
subsidiaries orother affiliates;
(b) inatimely fashion, onterms, conditions (including technical standards and
specifications) andcost-oriented ratesthataretransparent, reasonable, having regard
toeconomic feasibility, andsufficiently unbundled sothatthesupplier neednotpay
fornetwork components orfacilities thatitdoesnotrequire fortheservice tobe
provided; and
(c) upon request, atpoints inaddition tothenetwork termination points offered tothe
majority ofusers, subject tocharges thatreflect thecostofconstruction ofnecessary
additional facilities.
2.3 Public availability oftheprocedures forinterconnection negotiations
Theproceduresapplicableforinterconnectiontoamajorsupplierwillbemadepubliclyavailable.
2.4 Transparency ofinterconnection arrangements
Itisensured thatamajor supplier willmake publicly available either itsinterconnection
agreements orareference interconnection offer.
2.5 Interconnection: dispute settlement
Aservice supplier requesting interconnection withamajor supplier willhaverecourse, either:
(a) atanytimeor
(b) afterareasonable period oftimewhich hasbeenmade publicly known
toanindependent domestic body, which maybearegulatory bodyasreferred toinparagraph 5below,
toresolve disputes regarding appropriate terms, conditions andrates forinterconnection within a
reasonable period oftime, totheextent thatthese havenotbeenestablished previously.GATS/SC/48/Suppl.2
Page7
3. Universal service
AnyMemberhastherighttodefinethekindofuniversalserviceobligationitwishestomaintain.
Such obligations willnotberegarded asanti-competitive perse,provided theyareadministered in
atransparent, non-discriminatory andcompetitively neutral manner andarenotmore burdensome than
necessary forthekindofuniversal service defined bytheMember.
4. Public availability oflicensing criteria
Where alicence isrequired, thefollowing willbemade publicly available:
(a) allthelicensing criteria andtheperiod oftimenormally required toreach adecision
concerning anapplication foralicence and
(b) theterms andconditions ofindividual licences.
Thereasons forthedenial ofalicence willbemade known totheapplicant upon request.
5. Independent regulators
Theregulatory body isseparate from, andnotaccountable to,anysupplier ofbasic
telecommunications services. Thedecisions ofandtheprocedures usedbyregulators shallbeimpartial
withrespect toallmarket participants.
6. Allocation anduseofscarce resources
Anyprocedures fortheallocation anduseofscarce resources, including frequencies, numbers
andrightsofway,willbecarriedoutinanobjective,timely,transparentandnon-discriminatorymanner.
Thecurrent stateofallocated frequency bands willbemade publicly available, butdetailed identification
offrequencies allocated forspecific government usesisnotrequired.