WORLD TRADE G/SG/N/1/KOR/1
6April 1995
ORGANIZATION(95-0831)
Original: English Committee onSafeguards
NOTIFICATIONS OFLAWS, REGULATIONS AND
ADMINISTRATIVE PROCEDURES RELATING
TOSAFEGUARD MEASURES
KOREA
Thefollowing communication, dated 15March 1995, hasbeenreceived fromthePermanent
Mission ofKorea.
_______________
Withreference toArticle 12.6oftheAgreement onSafeguards andinresponse totheinvitation
contained indocument G/SG/N/1/Suppl.1, Ihavethehonour tonotify theCommittee onSafeguards
oftherelevant provisions ofKorea 'sForeign Trade Act,Customs Act,andtheEnforcement Decree
ofthelatteract.Themostimportanttworemedialmeasures,therestrictionofimportsandtheadjustment
ofcustoms, arebased ontheabove twoacts.
TheRepublic ofKorea hasrevised theabove mentioned Foreign Trade Actwhich isthebasic
lawgoverning safeguards inKorea, bringing itintoconformity withtheWTO Agreement. Thisrevised
act,attached tothisletter, willgointoforce on1July1995. However, some relevant sub-rules and
regulations totheactconcerning enforcement ofsafeguard measures areunder revision atthistime.
Therefore, itisnotpossible fortheGovernment oftheRepublic ofKorea tonotify these sub-rules
andregulations by15March 1995. Astheprocedures forrevision willbecompleted by1July1995,
theGovernment oftheRepublic ofKorea willmake aformal notification by1August 1995.
Foreign Trade Act
CHAPTER IVINVESTIGATION OFINDUSTRIAL DAMAGES OFIMPORT ONINDUSTRY
SECTION 1Request andInvestigation
Article32(RequestforInvestigationofDomesticIndustrialDamagescausedbyIncreasedImports
ofSpecified Goods) (1)Ifthedomestic industry isdeemed tofallunder anyofthefollowing
subparagraphs, theperson whohasinterests insuchdomestic industry andtheheadoftheadministrative
agency concerned whotakes charge oftheindustry (hereinafter referred toas"interested persons")
mayrequest theTrade Commission asprescribed inArticle 37(hereinafter referred toas"Trade
Commission") toinvestigate damages caused bytheimport ortrade ofspecified goods andsupply of
distribution services (hereinafter referred toas"import, etc.ofspecified goods") totherelevant domestic
industry: <Amended byLawNo.4527, 8December 1992>.
1. Where anincrease inimport quantity ofspecified goods causes orthreatens tocause serious
damage toadomestic industry producing thelikeordirectly competitive ones;G/SG/N/1/KOR/1
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2. Where anincrease oftradeandsupply ofdistribution services byaforeigner causes orthreatens
tocause serious damage toadomestic industry which supplies thelikeordirectly competitive trade
anddistribution services; or
3. Where anactimporting goods infringing onrights ofthepatent, utility model, design, and
trademark, copyright, neighbouring copyright, andprogramme copyright andlayout-design ofsemi-
conductor integrated circuit which areprotected inKorea, causes orthreatens tocause anydamage
toadomestic industry which produces directly competitive goods.
(2) Necessary matters, suchasthescope ofinterested persons asreferred toinparagraph (1),
procedure ofapplication, etc.shallbedetermined bythePresidential Decree. <Amended byLaw
No.4527, 8December 1992>
[This Article Wholly Amended byLawNo.4145, 21December 1989]
Article 33(Investigation ofDomestic Industrial Damages caused byIncreasing Imports, etc.ofSpecified
Goods) (1)TheTrade Commission shall, upon receiving arequest under Article 32,decide whether
tocommence theinvestigation ornotwithin thirty daysfromthedateofrequest afterconsulting with
theheadoftheadministrative agency concerned.
(2) TheTrade Commission shallconduct aninvestigation asprovided bythePresidential Decree,
inthefollowing cases:
1. Where ithasdecided tocommence theinvestigation under paragraph (1);or
2. Where itconsiders duetotheresult oftheinvestigation conducted under subparagraph 7of
Article 40,thatitisnecessary toinvestigate damages tothedomestic industry oftheimport,
etc.,ofspecified goods.
(3) WhentheTradeCommissioncommencestheinvestigationasreferredtoinparagraph(2),within
onehundred andtwenty daysfromthecommencement oftheinvestigation itshalldetermine whether
ornotthedomestic industry isdamaged. Provided that,ifthecontents ofinvestigation arecomplex,
ortheinterested persons request apostponement oftheperiod withjustifiable reasons presented, the
period ofinvestigation maybeextended uptoanother onehundred andtwenty days. <Amended by
LawNo.4527, 8December 1992>.
(4) When theTrade Commission makes adetermination thatnodamage tothedomestic industry
isdiscoveredafteraninvestigationunderparagraph(2),itshallnotifytheinterestedpersons.<Amended
byLaw No.4527, 8December 1992> [This Article Wholly Amended byLaw No.4145,
21December 1989]
SECTION 2Recommendation andTaking ofRemedial Measures
Article34(Recommendation,etc.,ofTemporaryRestrictiononImports)(1)WhentheTradeCommission
hasdetermined thatthere exists anydamage tothedomestic industry asaresult oftheinvestigation
under Article 33(2), itmayrecommend totheheadoftheadministrative agency concerned totake
anyofthefollowing measures (hereinafter referred toas"remedial measures") inaspecified period,
within forty-five days from thedate ofdetermination: <Amended byLaw No.4527,
8December 1992>
1. Restriction onthequantity, quality, etc.ofsuchimported goods;
2. Adjustment ofcustoms tariff;G/SG/N/1/KOR/1
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3. Various assistance asprescribed inthelawsandregulations related toindustrial assistance for
thepurpose ofimproving technology andproductivity;
4. Designation oftheindustry which issubject totheinvestigation asaindustry toberationalized
under theIndustry Development Act;
5. Suspension orprohibition ofimports against specified goods ortraders; and
6. Other measures asdetermined bythePresidential Decree forthepurpose ofproviding aremedy
tothedomestic industry.
(2) Deleted. <by LawNo.4527, 8December 1992>
(3) Theheadoftheadministrative agency concerned shall, uponreceiving aproposal onaremedial
measure fromtheTrade Commission under paragraph (1),decide whether totaketheremedial measure
ornot,within forty-five daysfrom thedateofreceiving suchrecommendation. Inthiscase, ifitis
necessary toconsult withmajor interested countries fortheimplementation ofsucharemedial measure,
oritisespecially necessary fortheimplementation ofsucharemedial measure, theperiod needed for
itshallnotbeincluded therein. <Amended byLawNo.4527, 8December 1992>
(4) When theheadoftheadministrative agency concerned takes anyremedial measures, heshall
takeintoconsideration anyeffect oninternational traderelations andthenational economy. <Amended
byLawNo.4527, 8December 1992>
(5) When theheadoftheadministrative agency concerned hastaken anyremedial measure under
paragraph (3),ifitisdeemed thatthere existcauses toundo sucharemedial measure, suchasthe
extinction ofthefactonwhich themeasure isbased, andthelike,theyshallbeundone. Inthiscase,
they may hear theopinion oftheTrade Commission. <Amended byLaw No.4527,
8December 1992> [This Article Wholly Amended byLawNo.4145, 21December 1989]
Article 35(Provisional Measure) (1)When theTrade Commission considers thatifitdoesnottake
anurgent measure evenduring theinvestigation under Article 33(2),theindustry which issubject
totheinvestigation would ormight suffer irrecoverable damage, itmayrecommend totheheadof
theadministrative agency concerned totakeaprovisional remedial measure provided forsubparagraph 2
ofArticle 34(1)(hereinafter referred toas"provisional measure"). <Amended byLawNo.4527,
8December 1992>
(2) Theprovisions ofArticle 34(3)and(4)shallbeapplied mutatis mutandis tothecaseasreferred
toinparagraph(1).<AmendedbyLawNo.4527,8December1992>[ThisArticleWhollyAmended
byLawNo.4145, 21December 1989]
Article 36(Review, etc.)(1)TheTrade Commission mayreview theimpacts, effects, etc.ofany
remedial measure taken bytheheadoftheadministrative agency concerned under Article 34(3)on
thedomestic measure (hereinafter referred toas"review"), andrecommend tothehead ofthe
administrative agency concerned modification, release, etcofsuchameasure ifitconsiders itnecessary
tomodifythecontentofthemeasureappliedmutatismutandisorunnecessarytomaintainit.<Amended
byLawNo.4527, 8December 1992>
(2) Theprovisions ofArticle 34(3)and(4)shallbeapplied mutatis mutandis tothecaseasreferred
toinparagraph(1).<AmendedbyLawNo.4527,8December1992>[ThisArticleWhollyAmended
byLawNo.4145, 21December 1989]G/SG/N/1/KOR/1
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SECTION 2-2Measure Restricting Import ofTextiles andClothing
Article 36-2(Measure Restricting Import ofTextiles andClothing) (1)ifanincrease intheimport
oftextiles andclothing causes orthreatens tocause serious damage tothedomestic industry which
produces thelikeordirectly competitive goods, theMinistry ofTrade, Industry, andEnergy maytake
import restriction measures.
(2) Incasetheimport restriction measures provided forinparagraph (1)above aretaken, thegoods
andcountries which aresubject tothemeasures, levelofrestriction andprocedures ofinvestigation,
etc.,shallbedetermined bythePresidential Decree.
SECTION 3Trade Commission
Article 37(Establishment ofTrade Commission) (1)Inorder tocarry outinvestigations anddecisions
ondamages todomestic industry caused byimport increase, etc.ofspecified goods, arecommendation
ofremedial measures therefore, andinvestigation anddetermination ondamages todomestic industry
caused byimport ofdumped orsubsidized goods, studies andresearch oninternational tradesystems,
etc.theTrade Commission shall beestablished intheMinistry ofTrade, Industry andEnergy.
<Amended byLawNo.4527, 8December 1992; LawNo.4541, 6March 1993>
(2) Inorder tohandle affairs oftheTrade Commission, suchastheinvestigation ofdamages to
thedomestic industry, studies andresearch oninternational trade systems, etc.under paragraph (1),
theTradeResearchBureaushallbeestablishedintheTradeCommission.[ThisArticleWhollyAmended
byLawNo.4145, 21December 1989]
Article 38(Composition etc.ofTrade Commission) (1)TheTrade Commission shallbecomposed
ofachairman andeight orfewer members, some ofwhich aretobepermanent posts, buttheexact
number shall bedetermined bythePresidential Decree. <Amended byLaw No.4527,
8December 1992>
(2) Thechairman andmembers shallbeappointed bythePresident withtheproposal oftheMinister
ofTrade, Industry andEnergy from among persons ofextensive learning andexperience inthearea
oftheindustry andtrade, international trade, law,andaccounting. <Amended byLawNo.4541,
6March 1993>
(3) Thetermofthechairman andmembers shallbethree years, butrenewable.
(4) Ifthechairman isunable toperform hisdutyduetoanaccident, thepermanent member shall
actforhim.
Article 39(Guarantee ofStatus ofChairman andMembers) Thechairman andmembers shallnotbe
removed from office against their ownwill, except inacasefalling under anyofthefollowing
subparagraphs:
1. Where theyaresentenced toapenalty more sever thanimprisonment;
2. Wheretheyareunabletoperformtheirdutiesduetomentalorphysicaldisabilityforanextended
period oftime.G/SG/N/1/KOR/1
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Article 40(Function ofTrade Commission) Thefunction oftheTrade Commission shall beas
followings: <Amended byLawNo.4527, 8December 1992>
1. Determination onwhether ornotitshallbegin aninvestigation andwhether ornotthereexists
anyindustrial damage, under Article 33(1)and(3);
2. Recommendation ofanyremedial measure under Article 34(1);
3. Recommendation ofanyprovisional measure under Article 35(1);
4. Review asreferred toinArticle 36(1)andrecommendation ofthemodification, orrelease,
etcoftheremedial measure;
5. Recommendation ofinvestigation andsanction under Article 44(2)and(3);
6. Reception ofapplication forinvestigation onindustrial damages forimposing anti-dumping
dutyandcountervailing dutyasprescribed inArticles 10and13oftheCustoms Act;decision
onwhether ornottheinvestigation istobemade, investigation anddecision onindustrial
damages;
7. Investigation onanyeffect ofimports, etc.ofspecified goods onthecompetitiveness ofthe
industry;
8. Research andstudy onstatutes, institutions anddispute cases pertaining tointernational trade;
and
9. Other investigations andrecommendation ofmatters, suchasencouragement offairtrade, etc.,
which theTrade Commission deems necessary. [This Article Wholly Amended byLaw
No.4145, 21December 1989]
Article 40-2(Exclusion ofChairman andMembers) Thechairman andmembers maynotparticipate
indeliberation ordecision onthefollowing matters:
1. Matters inwhich heorshehasanyinterests;
2. Matters related tohisorherspouse, orarelative whohaseighth degree ofblood relation or
fourth degree ofrelation inlaworcloser withhimorher; or
3. Matters forwhich heorsheisawitness, appraiser oragent.
Article 41(Quorum fordecision) Thedecision oftheTrade Commission shallbemade byamajor
voteofmembers present. <Amended byLawNo.4145, 21December 1989>
Article 42(Legal Fiction asPublic Official forApplication ofPenal Provisions) Even inacasewhere
thechairman andmembers arenotpublic officials, theyshall beconsidered aspublic officials in
application ofpenal provisions under thePenal Code andother lawsandregulations.
Article 43(Organization andOperational Rules) Except asprovided forinthisAct,matters necessary
fororganization,operation,etc.oftheTradeCommissionshallbedeterminedbythePresidentialDecree.
<Amended byLawNo.4145, 21December 1989>G/SG/N/1/KOR/1
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Notification ofLaws andRegulations
under Article 12.6oftheAgreement
1. TheCustoms Act
Article 12(Emergency Duty) (1)Iftheincrease intheimport ofparticular products causes orthreatens
tocause aserious injury todomestic producers oflikeproducts ortheproducts withadirect competitive
relation, anditisthereby deemed necessary toprevent orredress suchaninjury, thecustoms duties
maybeimposed within thelimitoftheratesequivalent tothedifference between thedomestic and
foreign prices.
(2) Theemergency dutyrates, asreferred toinparagraph (1),maybeapplied onlytothose imported
inexcess ofthespecified quantity ofproducts, asprescribed inparagraph (1),ifitisnecessary.
(3) Matters concerning theitems ofproducts, dutyrates, expiry dateandquantity, etctowhich
theprovisions ofparagraphs (1)and(2)areapplicable, shallbeprovided forbytheOrdinance ofthe
Prime Minister.
Article 43-9(Withdrawal andModification ofConcessions) (1)if,asaresult ofadecline inprice
ofaproduct inaforeign country, orother unforeseen developments, ortheperformance ofthe
obligations under anytreaty, anyproduct isbeing imported insuchincreased quantities andunder such
conditions thatitcauses orthreatens tocause aserious injury todomestic producers oflikeproducts
ortheproducts withadirect competitive relation, theGovernment maytakeanyofthefollowing
measures:
1. Incases where atariffconcession hasbeengranted onthesaidproducts byatreaty: towithdraw
ormodify theconcession sothatthere maybelevied upon suchimported products customs
dutychargeable atanapplicable rateinthisActoratamodified rate; and
2. Incaseswhere measures prescribed insubparagraph 1aretobe,orhavebeentaken withrespect
toparticular products: tomodify tariffconcessions onthepreviously tariff-conceded products
other thanthesaidproducts ortogrant newtariffconcessions onthose products onwhich any
tariffconcession hasnotbeengranted, through aconsultation pursuant tothepertinent treaty,
sothatthemodified ornewly granted tariff concessions maybeapplied.
(2) Measures referred toinsubparagraph 2ofparagraph (1)shallbetaken totheextent necessary
ascompensation formeasures referred toinsubparagraph 1ofthesaidparagraph.
(3) Thetime, contents andother necessary particulars ofthemeasures referred toinparagraph (1)
shallbeprovided forbyPresidential Decree.
Article 43-10 (Countervailing Measures) (1)Incases where aforeign country intends totake, or
hastaken measures towithdraw, modify orotherwise make tariff concessions onparticular products,
when deemed legitimate totakecountervailing measures pursuant tothepertinent treaty, theGovernment
maytakethefollowing measures:
1. Tolevyacustoms dutyupon suchparticular products within thelimitofamount equivalent
tothedutiable value ofthesaidproducts inaddition tocustoms dutychargeable atanapplicable
rateinthisAct; andG/SG/N/1/KOR/1
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2. Incases where atariff concession hasbeengranted onparticular products: tosuspend the
application ofthesaidconcession andlevyacustoms dutywithin thelimitoftheratesprescribed
bythisAct.
(2) Measures referred toinparagraph (1)shallbetaken totheextent necessary asacountervailing
measure against thatoftheforeign country.
(3) Theobject country, time, contents andother necessary particulars concerning themeasures
inparagraph (1)shallbeprovided forbyPresidential Decree.
Article 43-11 (Validity ofConcession andWithdrawal) (1)Withrespect toproducts onwhich Korea
hasgranted acustoms concession under atreaty, ifthesaidconcession iswithdrawn, thecustoms rate
prescribed inthisActshallbeapplied fromthedateonwhich thewithdrawal enters intoforce pursuant
tothesaidtreaty.
(2) Withrespect toproducts onwhich Korea hasnewly granted atariffconcession incompensation
forthewithdrawal referred toinparagraph (1),thecustoms rateprescribed inthisActshallbeapplied
from thedateonwhich thesaidconcession enters intoforce.
2. TheEnforcement Decree oftheCustoms Act
Article 43-17 (Emergency Duty) (1)Iftheheadoftheministry oragency concerned oraninterested
person wishes torequest measures prescribed inArticle 12oftheAct,heshallpresent thefollowing
materials related totheproducts totheMinister ofFinance andEconomy:
1. Tariff number, denomination, dimension, useandsubstitute oftheproducts;
2. Rawmaterials usedformanufacturing theproducts, adescription oftheprocess anduseof
related products forwhich theproducts areusedasrawmaterials;
3. Tariff ratetoberaised, reasons forraising thetariff, andtheapplication period thereof;
4. Performance andplanofthesupply anddemand forthecurrent yearandfortheyearbefore
andafterthecurrent year;
5. Import priceandperformance oftheimportation bymonths andbymajor importing countries
forarecent year;
6. Factory priceandperformance ofthedelivery bymonths andbymajor domestic manufacturing
enterprises forarecent year;
7. (Deleted)
8. (Deleted)
9. Ifitisnecessary todetermine aspecified quantity under Article 12(2)oftheAct,suchaquantity
andthebasis ofcalculation.
10. (Deleted)
(2) (Deleted)
(3) When theMinister ofFinance andEconomy deems itnecessary fortheinvestigation ofmatters
necessary fortheapplication ofanemergency duty, hemayasktheorganization concerned, exporter,
importer orother interested person topresent therelated dataorother necessary cooperation.