ACT ON THE CONCLUSION PROCEDURE AND IMPLEMENTATION OF COMMERCIAL TREATIES
Act No. 11149, Jan. 17, 2012
Amended by Act No. 11690, Mar. 23, 2013
Act No. 11717, Mar. 23, 2013
Act No. 14840, Jul. 26, 2017
The purpose of this Act is to prescribe necessary matters in relation to the procedures for concluding commerce treaties and the implementation thereof in order to enhance transparency in the procedures for concluding commerce treaties and to promote efficient commercial negotiations with citizens’ understanding and participation, as well as to ensure the rights and interests of the Republic of Korea in implementing treaties regarding commerce, thereby contributing to sound development of the national economy.
The terms used in this Act shall be defined as follows:
| 1. | The term “commerce treaty” means any treaty subject to consent of the National Assembly under Article 60 (1) of the Constitution of the Republic of Korea among the following treaties, concluded either by the Republic of Korea’s accession to any international organizations, such as the World Trade Organization, or to any economic unions, or by the Republic of Korea with other countries, etc.: |
| (a) | Treaties concluded at the level of international organizations, such as the World Trade Organization, with the aim of comprehensive opening to overseas markets; |
| (b) | Regional or bilateral treaties, such as regional trade agreements or free trade agreements, concluded with the aim of comprehensive opening to overseas markets; |
| (c) | Other treaties that have a significant influence on the national economy by entailing opening to overseas markets in each field of economy and commerce; |
| 2. | The term “commercial negotiation” means a negotiation conducted between the Republic of Korea and any foreign country, etc. to conclude a commerce treaty. |
| Article 3 (Relationship with Other Acts) |
With respect to the procedures for concluding and implementing commerce treaties, this Act shall prevail over any other Act.
| Article 4 (Disclosure of Information) |
| (1) | Upon receipt of a request to disclose information concerning the procedures for concluding and implementing commerce treaties, the Government shall disclose the relevant information to the applicant pursuant to the Official Information Disclosure Act and shall not refuse to make such disclosure on the grounds that commercial negotiations are in progress. |
| (2) | Notwithstanding paragraph (1), the Government may refuse to make disclosure of information concerning commercial negotiations in any of the following cases: Provided, That it shall not refuse to make such disclosure upon request by the Speaker of the National Assembly based on agreement among negotiation bodies of the National Assembly: |
| 1. | Where the other negotiating party requests non-disclosure on the grounds that the information affects its national interest; |
| 2. | Where deemed that, with respect to the ongoing commercial negotiations, disclosure is likely to substantially infringe on the national interest or to impede the commercial negotiations; |
| (3) | Where the Government decides not to disclose information on commercial negotiations under paragraph (2), it shall promptly give written notice thereof to the applicant. In such cases, such notice shall specify the grounds for non-disclosure and the methods and procedures for dissatisfaction. |
| Article 5 (Submission of Reports and Documents) |
| (1) | Upon request by the Foreign Affairs and Unification Committee, the Trade, Industry, Energy, SMEs and Startups Committee, or any other commerce-related special committee of the National Assembly, the Government shall submit reports or documents on ongoing commercial negotiations or on commerce treaties signed by it. <Amended by Act No. 11717, Mar. 23, 2013; Act No. 14840, Jul. 26, 2017> |
| Article 6 (Formulation and Reporting of Plans for Concluding Commerce Treaties) |
| (1) | Before entering into commercial negotiations, the Minister of Trade, Industry and Energy shall formulate a plan for concluding a commerce treaty (hereinafter referred to as “plan for concluding a commerce treaty”), including the following: <Amended by Act No. 11690, Mar. 23, 2013> |
| 1. | Objectives and main details of commercial negotiations; |
| 2. | Schedules for, and expected effects of, commercial negotiations; |
| 3. | Major issues expected in commercial negotiations and direction-setting for addressing such issues; |
| 4. | Trends of major countries involved in commercial negotiations; |
| 5. | Other matters recognized necessary by the Minister of Trade, Industry and Energy. |
| (2) | Where the Minister of Trade, Industry and Energy has formulated a plan for concluding a commerce treaty under paragraph (1), he/she shall promptly report such fact to the Trade, Industry, Energy, SMEs and Startups Committee of the National Assembly. <Amended by Act Nos. 11690 & 11717, Mar. 23, 2013; Act No. 14840, Jul. 26, 2017> |
| (3) | Where deemed that an ongoing negotiation falls within commercial negotiations, the National Assembly may require the Minister of Trade, Industry and Energy to comply with the procedural requirements under this Act, including the formulation of a plan for concluding a commerce treaty. <Amended by Act No. 11690, Mar. 23, 2013> |
| Article 7 (Holding Public Hearings) |
| (1) | The Minister of Trade, Industry and Energy shall hold a public hearing to hear opinions from interested persons and relevant experts before formulating a plan for concluding a commerce treaty. <Amended by Act No. 11690, Mar. 23, 2013> |
| Article 8 (Presentation of Opinions by Citizens) |
Any citizen may present his/her opinion to the Government about commercial negotiations or commerce treaties. In such cases, the Government shall endeavor to reflect the opinions so presented in making its policies whenever they are deemed reasonable.
| Article 9 (Assessment of Economic Feasibility and Other Aspects of Concluding Commerce Treaties) |
| (1) | The Minister of Trade, Industry and Energy shall assess the economic feasibility and other aspects of concluding a commerce treaty before entering into the commercial negotiations: Provided, That this shall not apply to any commercial negotiation required in relation to the implementation of any commerce treaty or other treaty already in force. <Amended by Act No. 11690, Mar. 23, 2013> |
| (2) | The Minister of Trade, Industry and Energy may request the heads of relevant central administrative agencies to assess the economic feasibility and other aspects under paragraph (1) or may commission Government-funded research institutes and other relevant research institutes to conduct such assessment. In such cases, the heads of the relevant central administrative agencies or research institutes so requested or commissioned shall comply therewith except in extenuating circumstances. <Amended by Act No. 11690, Mar. 23, 2013> |
| Article 10 (Undertaking of Commercial Negotiations and Presentation of Opinions by National Assembly) |
| (1) | The Government shall proceed with commercial negotiations according to the relevant plan for concluding a commerce treaty. |
| (2) | In any of the following circumstances, the Minister of Trade, Industry and Energy shall immediately report such fact to the Trade, Industry, Energy, SMEs and Startups Committee of the National Assembly: Provided, That he/she may make ex post facto reporting where any inevitable cause that prevents immediate reporting exists, such as rapid progress in negotiations: <Amended by Act Nos. 11690 & 11717, Mar. 23, 2013; Act No. 14840, Jul. 26, 2017> |
| 1. | Where any major matter in a plan for concluding a commerce treaty is modified; |
| 2. | Where a significant change is anticipated in domestic industries, economic ripple effects, etc.; |
| 3. | Where any other significant change arises in the negotiation process. |
| (3) | The Trade, Industry, Energy, SMEs and Startups Committee of the National Assembly may present its opinions to the Government about the commercial negotiations reported under paragraph (2). In such cases, the Government shall endeavor to reflect such opinions except in extenuating circumstances. <Amended by Act No. 11717, Mar. 23, 2013; Act No. 14840, Jul. 26, 2017> |
| Article 11 (Impacts Assessment) |
| (1) | Where agreement is reached with the other negotiating party, by means of a provisional signature, etc., as regards a draft commerce treaty, the Minister of Trade, Industry and Energy shall conduct an impact assessment including the following: <Amended by Act No. 11690, Mar. 23, 2013> |
| 1. | Overall impacts of the commerce treaty on the domestic economy; |
| 2. | Impacts of the commerce treaty on national finances; |
| 3. | Impacts of the commerce treaty on the domestic industries involved; |
| 4. | Impacts of the commerce treaty on domestic employment. |
| (2) | The Minister of Trade, Industry and Energy may request the heads of relevant central administrative agencies to conduct an impact assessment under paragraph (1) or may commission Government-funded research institutes and other relevant research institutes to conduct such assessment. In such cases, the heads of the relevant central administrative agencies and research institutes so requested or commissioned shall comply therewith except in extenuating circumstances. <Amended by Act No. 11690, Mar. 23, 2013> |
| Article 12 (Reporting, etc. of Outcomes of Negotiation) |
| (1) | Where a commerce treaty is signed, the Minister of Trade, Industry and Energy shall promptly report the progress of the negotiation, the main terms of the treaty, etc. to the Trade, Industry, Energy, SMEs and Startups Committee of the National Assembly. <Amended by Act Nos. 11690 & 11717, Mar. 23, 2013; Act No. 14840, Jul. 26, 2017> |
| (2) | The Minister of Trade, Industry and Energy shall promptly notify the general public of the matters reported under paragraph (1). <Amended by Act No. 11690, Mar. 23, 2013> |
| Article 13 (Requests, etc. for Consent to Ratification) |
| (2) | Where the Government requests the National Assembly to consent to ratification pursuant to paragraph (1), it shall provide the following information therewith: <Amended by Act No. 11690, Mar. 23, 2013> |
| 1. | Results of impact assessment under Article 11 (1); |
| 2. | Estimate of expenses incurred in enforcing the commerce treaty and schemes to raise the funds involved; |
| 3. | Complementary measures to protect domestic industries under Article 11 (1) 3; |
| 4. | Information relating to the enactment or amendment of Acts necessary for implementing the commerce treaty; |
| 5. | Other information recognized necessary by the Minister of Trade, Industry and Energy. |
| (3) | Where deemed that a signed treaty falls within commerce treaties, the National Assembly may require the Government to submit a proposal for consent to the ratification thereof. |
| Article 14 (Holding Information Sessions) |
The Minister of Trade, Industry and Energy shall hold an information session, before a commerce treaty enters into force and is implemented, to give an explanation to interested persons regarding the main terms, etc. of the commerce treaty and to provide necessary information, etc. to ensure the smooth implementation of the commerce treaty, including the interested persons’ cooperation. <Amended by Act No. 11690, Mar. 23, 2013>
| Article 15 (Evaluation and Reporting of Status of Implementation of Commerce Treaties) |
| (1) | The Minister of Trade, Industry and Energy shall evaluate the status of implementation of a commerce treaty for which ten years have not passed since it was entered into force, including the following matters, and shall report the results to the Trade, Industry, Energy, SMEs and Startups Committee of the National Assembly: <Amended by Act Nos. 11690 & 11717, Mar. 23, 2013; Act No. 14840, Jul. 26, 2017> |
| 1. | Economic effects of the commerce treaty in force; |
| 2. | Effectiveness of domestic measures for an injured industry, and other remedial measures; |
| 3. | Major discussions at a joint committee organized in accordance with the commerce treaty, including the status of implementation of treaty obligations by the government of the other State party to the treaty; |
| 4. | Other matters deemed necessary by the Minister of Trade, Industry and Energy. |
| (2) | If deemed necessary to evaluate the status of implementation under paragraph (1), the Minister of Trade, Industry and Energy may request the heads of relevant central administrative agencies and the heads of relevant research institutes, including Government-funded research institutes to provide cooperation. In such cases, the heads of the relevant central administrative agencies and research institutes so requested shall comply therewith except in extenuating circumstances. <Amended by Act No. 11690, Mar. 23, 2013> |
| (3) | The cycle and methods of evaluating the status of implementation of commerce treaties and other matters shall be prescribed by Presidential Decree. |
| Article 16 (Guarantee of Economic Rights and Interests) |
No provision in commerce treaties shall be construed as justifying any infringement on the legitimate economic rights and interests of the Republic of Korea.
| Article 17 (Protection of Rights and Interests against Commerce Treaties) |
Where deemed that a specific domestic item is likely to be significantly and irrevocably injured as a result of the fulfillment of obligations arising from a commerce treaty, the Government shall consider various measures, such as an amendment to the commerce treaty.
| Article 18 (Principles Governing Inter-Korean Transactions) |
With respect to the procedures for concluding and implementing commerce treaties, any transactions between South Korea and North Korea shall be deemed internal transactions among relevant Korean people, not transactions between two separate nations, in accordance with Article 12 of the Inter-Korean Exchange and Cooperation Act.
| Article 19 (Duties to Protect and Foster Agriculture, Livestock Industry, and Fisheries, etc.) |
The Government shall not neglect any of its duties, on grounds of the implementation of commerce treaties, to protect and foster agriculture, the livestock industry, and fisheries, to promote the balanced development of all regions, and to protect and foster small and medium enterprises under Article 123 of the Constitution of the Republic of Korea.
| Article 20 (Principle of Reciprocity in Implementation of Commerce Treaties) |
If the other State party to a commerce treaty fails to meet or violates any of its treaty obligations, the Government may take any measure corresponding thereto against the other State party.
| Article 21 (Establishment of Civilian Advisory Committee on Commercial Negotiations) |
| (1) | There shall be established a Civilian Advisory Committee on Commercial Negotiations (hereinafter referred to as the “Civilian Advisory Committee”) under the jurisdiction of the Minister of Trade, Industry and Energy to provide advice and suggestions as requested by the Minister of Trade, Industry and Energy in the process of formulating commerce policies and performing commercial negotiations, with respect to the following: <Amended by Act No. 11690, Mar. 23, 2013> |
| 1. | Basic direction-setting for commercial policies and commercial negotiations; |
| 2. | Feasibility of the promotion and conclusion of a specific commerce treaty; |
| 3. | Impacts the conclusion of a commerce treaty has on the national economy, and domestic complementary measures; |
| 4. | Publicity measures to build consensus among citizens concerning commercial negotiations; |
| 5. | Formulation of plans for concluding commerce treaties; |
| 6. | Other matters referred by the Minister of Trade, Industry and Energy in relation to commercial policies and commercial negotiations. |
| (2) | The Civilian Advisory Committee shall be comprised of no more than 30 members, including one chairperson, and the chairperson shall be elected by mutual vote among the members. |
| (3) | Members shall be commissioned by the Minister of Trade, Industry and Energy from among the following persons: <Amended by Act Nos. 11690 & 11717, Mar. 23, 2013; Act No. 14840, Jul. 26, 2017> |
| 1. | Persons who have considerable knowledge and experience in the field of international economy and commerce; |
| 2. | Persons capable of speaking for all the various classes in relation to the formulation of commercial policies and commercial negotiations; |
| 3. | Persons recommended by the Trade, Industry, Energy, SMEs and Startups Committee of the National Assembly; |
| 4. | Other persons recommended by the heads of relevant central administrative agencies. |
| (4) | Matters necessary for the organization and operation of the Civilian Advisory Committee under paragraphs (1) through (3) and others shall be prescribed by Presidential Decree. |
| Article 22 (Duty, etc. to Maintain Confidentiality) |
| (1) | No current or former public official shall disclose or divulge to any third person any confidential information that he/she became aware of in the course of performing his/her duties under this Act. |
| (2) | Where a person, other than a public official, who provides advice or assistance related to commercial negotiations or commerce treaties intends to gain access to any information kept confidential under Article 4 (2), he/she shall pledge to maintain confidentiality, as prescribed by Presidential Decree. |
| (3) | Any person who has pledged to maintain confidentiality under paragraph (2) shall be deemed a public official for purposes of the penalty provisions under Article 127 of the Criminal Act. |
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That Articles 14, 16, 18 through 20, and 22 (1) shall enter into force on the date of its promulgation. Article 2 (Applicability to Commercial Negotiations)
This Act shall apply beginning with commercial negotiations that are in progress as at the time this Act enters into force: Provided, That this shall not apply to Articles 6, 7, 9, and 21.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
| (1) | This Act shall enter into force on the date of its promulgation. |
Articles 2 through 7 Omitted.
ADDENDA <Act No. 11717, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 14840, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.