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Korea-Singapore Free Trade Agreement (KSFTA) |
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ANNEX 12 A : SPECIFIC COMMITMENTS
Section 1 : Specific Commitments of Singapore
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
A. Insurance and Insurance-related Services
All the commitments in this Schedule are also subject to entry requirements, domestic laws, guidelines, rules and regulations, terms and conditions of the Monetary Authority
of Singapore (MAS) or any other relevant authority or body in Singapore, as the case may be, which are consistent with Article12. 8.
(a) Life insurance services
including annuity, disability income, accident and health insurance services
1) Unbound
2) None
3) Foreign parties can only acquire equity stakes of up to 49% in aggregate in locally-owned insurance companies provided the acquisition does not result in any foreign party being the largest shareholder. Unbound for licensing
1 of new insurance companies and
establishment of new representative offices and activities relating to
the use, including via investment, of monies from any social
security, public retirement or statutory savings scheme.
4) Unbound except
as indicated in the horizontal
section.
1) Unbound
2) None
3) None
4) Unbound except as indicated in the horizontal section.
1 "Licensing is expressed as, and equivalent to, registration for insurance companies and insurance brokers carrying on insurance business in Singapore as provided in Singapore domestic
2
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural
persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
|
(b)
|
Non-life
|
insurance
|
services
|
1)
|
Unbound
|
|
|
|
1)
|
Unbound
|
|
|
including
|
disability
|
income,
|
2)
|
None except that
|
compulsory
|
insurance
|
of
|
2)
|
None
|
accident and health insurance and contracts of fidelity bonds, performance bonds or similar contracts of guarantee
Motor Third Party Liability and Workmen's Compensation may only be purchased from licensed2 insurance companies in Singapore.
3) Foreign parties can only acquire equity stakes of up to 49% in
aggregate in locally-owned insurance companies provided the acquisition does
not result in any foreign party being the largest shareholder. Unbound for
licensing of new insurance companies and establishment of new representative
offices.
4) Unbound except as indicated in the
horizontal section.
law on insurance.
2 "Licensing is expressed as, and equivalent to, registration for insurance companies and insurance brokers carrying on insurance business in Singapore as provided in Singapore domestic
law on insurance
3
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural
persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
(c) Reinsurance and retrocession 1) None
1) None
2) None
3) None
4) Unbound except as indicated in the horizontal section.
(d) Insurance intermediation
comprising broking and agency services
1) Unbound
2) Agents are not allowed to act for unlicensed3 insurers. The placement of
domestic risks outside Singapore by brokers is subject to the approval of MAS, with the exception of reinsurance risks and insurance risks relating to maritime liabilities of ship- owners insured by protection & indemnity clubs.
3) Unbound except for admission of direct general insurance and reinsurance brokers as locally incorporated subsidiaries.
4) Unbound except as indicated in the horizontal section.
1) Unbound
2) None
3) Unbound
4) Unbound except as indicated in the horizontal section.
3. ."Licensing is expressed as, and equivalent to, registration for insurance companies and insurance brokers carrying on insurance business in Singapore as provided in Singapore domestic
law on insurance
4
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural
persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
(e) Services auxiliary to insurance comprising actuarial, loss adjustors, average adjustors and consultancy services
1) None
2) None
3) None
4) Unbound except as indicated in the horizontal section.
1) None
2) None
3) None
4) Unbound except as indicated in the horizontal section.
B. Banking and other financial services
All the commitments in this Schedule are also subject to entry requirements, domestic laws, guidelines, rules and regulations, terms and conditions of the Monetary Authority
of Singapore (MAS) or any other relevant authority or body in Singapore, as the case may be, which are consistent with Article 12.8.
5
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural
persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
|
|
1)
|
Unbound
|
|
|
1)
|
Unbound
|
|
(a) Acceptance of deposits and other
|
2)
|
None
|
|
|
2)
|
None
|
|
repayable funds from the public
|
3)
|
Only institutions licensed
|
or approved
|
as
|
3)
|
Commercial banks
|
banks, merchant banks and finance companies can accept deposits.
Where a foreign financial institution is subject to legislation in its home country which requires that institution to confer lower priority to depositors of its foreign offices vis-à-vis the home country depositors in receivership or winding-up proceedings, the MAS may exercise appropriate differentiated measures against that foreign financial institution in Singapore to safeguard the interest of the Singapore office's depositors.
Establishment and operation of foreign banks, merchant banks and finance companies are also subject to the limitations listed under activities B(a) to B(l) and the following limitations:
Foreign banks can operate from only one office
(excluding back-office operations). They cannot establish off-premise ATMs and ATM networking and new sub-branches. Unbound for provision of all electronic banking services. Location of banks and relocation of banks and sub-branches require prior approval from MAS.
Restricted banks can only accept foreign currency fixed deposits from and operate current accounts for residents and non-residents. For Singapore dollar deposits, they can only accept fixed deposits of S$250,000 or more per deposit.
Offshore banks can accept foreign currency fixed deposits from residents and non-residents. For Singapore dollar deposits, they can only accept fixed deposits of S$250,000 or more per deposit from non-residents.
6
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural
persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
Commercial banks
No new full and restricted banks. New foreign banks may only establish as offshore bank
branches or representative offices. Representative
offices cannot conduct business or act as agents.
Banks, with MAS' approval, can operate foreign currency savings accounts only for non-residents. A single/related group of foreign shareholders can only hold up to 5 per cent of a local bank's shares. The limit on aggregate foreign ownership of each
domestic bank's shares has been increased from
20 per cent to 40 per cent.
Merchant banks
Foreign banks and merchant banks may establish as merchant bank subsidiaries or merchant bank branches.
Merchant banks
Merchant banks can operate from only one
office
(excluding back-office operations). Location and relocation of
merchant banks require MAS' prior approval.
Merchant banks can, with MAS'
authorization, raise
foreign currency funds from residents and non-
residents, operate foreign currency savings accounts for non-residents and raise
Singapore dollar funds from their shareholders and companies controlled by their
shareholders, banks, other merchant banks and finance companies.
7
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural
persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
Finance companies
No new finance companies. Unbound for foreign acquisition of shares in finance companies and transfer or sale of foreign shareholdings in
existing finance companies to foreign parties. All
finance companies, local and foreign-owned, can only conduct Singapore dollar business. With MAS' prior approval, eligible finance companies can also deal in foreign currencies, gold or other precious metals, and acquire foreign currency stocks, shares or debt/convertible securities.
Finance companies
Location of finance companies
and relocation of sub- branches require MAS' prior approval. Foreign- owned
finance companies cannot establish off- premise ATMs, ATM networking and new
sub- branches.
4) Unbound except as indicated in the horizontal section.
(b) Lending of all types
including consumer credit, mortgage credit, factoring and financing of commercial transaction
1) Unbound
2) None
1) None
2) None
3) Each offshore bank's lending in Singapore dollars to residents shall not exceed S$200m in aggregate.
8
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural
persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
(ii) Financial institutions extending Singapore dollar (S$) credit facilities exceeding S$5 million per entity to non-
resident financial entities or arranging S$
equity or bond issues for non-residents, shall ensure that where the S$ proceeds are to be used outside Singapore, they are swapped or converted into foreign currency upon draw-down or before remittance aboard.
Financial entities shall not extend S$ credit facilities to non-resident financial entities if there is reason to believe that the S$ proceeds may be used for S$ currency speculation.
(iii) Establishment of credit companies which do not conduct activities requiring MAS' approval is allowed.
4) Unbound except as indicated in the horizontal section.
Offshore banks should not use their related merchant banks to circumvent the S$200m lending limit. Unbound for establishment of off-premise cash dispensing machines for credit and charge cards issuers.
4) Unbound except as indicated in the horizontal section.
9
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural
persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
(c) Financial leasing 1) None
2) None
3) None except as indicated for activity
B(b) above.
4) Unbound except as indicated in the horizontal section.
1) None
2) None
None except as indicated for activity
B(b) above.
4) Unbound except as indicated in the horizontal section.
(d) Payment and money
transmission services,
including credit, charge and debit cards, travellers cheques and bankers' drafts
1) Unbound
2) None
1) Unbound
2) None
3) None
10
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural
persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
Bankers' drafts can only be issued by banks.
Only the following can issue stored value cards: a bank in Singapore licensed by MAS; and a juridical person for the payment only
of goods or services or both goods and services provided by that person. The limitations indicated in B.b)3) above also apply to the activities listed in B.d).
4) Unbound except as indicated in the
horizontal section.
4) Unbound except as indicated in the
horizontal section.
11
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural
persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
(e) Guarantees and commitments
4) Unbound except as indicated in the
horizontal section.
1) None
2) None
3) None
4) Unbound except as indicated in the horizontal section.
12
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural
persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
(f) Trading for own account or for account of customers, whether on an exchange, in an over-the- counter market or otherwise, the
following:
1) Unbound except for trading in products listed in B.(f) for own account. Trading in money market instruments, foreign exchange, as
well as exchange rate and interest rate
instruments can be conducted with financial institutions only.
1) None
13
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural
persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
- money market instruments
(including cheques, bills, certificates of deposit)
- foreign exchange
- derivative products, including financial
futures and options
- exchange rate and interest rate instruments, including
swaps and forward rate agreements
- transferable securities
- other negotiable instruments
and financial assets, including bullion
2) None
3) Banks and merchant banks are required to set up separate subsidiaries to trade
financial futures for customers. Financial
futures brokers can establish as branches or subsidiaries. The offer of derivative products by both local and foreign-owned financial institutions is allowed provided:
- the product has been offered by the financial institution in other
internationally-reputable financial centres
and the supervisory authorities of those centres agree to the offer of such
products in their markets;
- the financial institution's parent
supervisor
and its head office must be aware and have no objection to the offer of such products
in the Singapore branch/subsidiary; and
2) None
3) None except as indicated for activity
B(b) above.
14
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural
persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
- MAS is satisfied that the financial institution has and continues to have the financial strength and adequate internal controls and risk management systems to trade in these products.
The offer of derivative products involving the
Singapore dollar is subject to the requirement indicated in Bb)3)(ii).
Moneychangers, except where the money-
changing business is conducted by banks and merchant banks, are required to be majority owned by Singapore citizens.
(g) Participation in issues of all
kinds of securities, including underwriting and
placement as agent and provision of service related to such issues
securities for own account, and underwriting and placement of securities through stock- broking companies, banks or merchant banks in Singapore.
15
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural
persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
2) None 2) None
investors for a minimum value of S$200,000.
Representative offices cannot conduct business or act as agents. Unbound for foreign acquisition of new and existing equity interests in SGX-ST member companies.
Banks' and merchant banks' membership on
any securities exchange or futures exchange in Singapore must be held through subsidiaries. Unbound for new
Primary and Registered Dealers of Singapore
Government Securities.
4) Unbound except as indicated in the horizontal section.
(h) Money broking 1) Unbound
2) None
3) Unbound for new money brokers.
4) Unbound except as indicated in the horizontal section.
3) None except as indicated for activity B(b) above
4) Unbound except as indicated in the horizontal section.
1)
Unbound
2) None
3) None
4) Unbound except as indicated in the horizontal section.
16
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural
persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
(i) Asset management, such as cash or portfolio
management, all forms of collective investment management, pension fund management, custodial, depository and trust services
1) Unbound
2) None
relating to the use, including via investment, of monies from any social security, public retirement or statutory savings scheme.
4) Unbound except as indicated in the horizontal section.
1) Unbound
2) None
3) None
4) Unbound except as indicated in the horizontal section.
17
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural
persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
(j) Settlement and clearing services for financial assets,
including securities, derivative products and
other negotiable instruments
1) Unbound, except for the provision of settlement and clearing services for financial assets which are listed on overseas
exchanges only.
2) None
3) Settlement and clearing services for exchange traded securities and financial futures can only be provided by Central Depository (Pte) Limited and Singapore Exchange Derivatives Clearing Ltd respectively. Only one clearing house established under the Banking Act may provide clearing services for Singapore
dollar cheques and inter-bank fund transfer.
4) Unbound except as indicated in the horizontal section.
1) Unbound
2) None
3) Unbound
4) Unbound except as indicated in the horizontal section.
18
Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural
persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional Commitments
(k) Advisory and other auxiliary financial services, including credit reference and analysis, investment and portfolio research and advice, advice on acquisitions and on corporate restructuring and
strategy
portfolio research and advice to the public.
horizontal section.
1) None
2) None
3) None
(l) Provision and transfer of
inancial information, and financial data processing and related software by providers of other financial services
of financial information by providers such as Reuters and Bloomberg.
The Singapore branches of foreign
banks can transmit data to their
head offices and sister branches for processing provided proper controls exist, the integrity and
confidentiality of the
data/information are safeguarded, and MAS is allowed on-site access to the data/information at the place where the data/information is processed.
financial information by providers such as Reuters and Bloomberg.
19
Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural
persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional Commitments
3) The provision of financial information by providers, such as Reuters and Bloomberg, is allowed. The provision of financial data processing services to banks and merchant banks is subject to domestic laws on protection of confidentiality of information of customers of banks and merchant banks.
4) Unbound except as indicated in the horizontal section.
2) None
3) None
4) Unbound except as indicated in the horizontal section.
20
Section 2 : Specific Commitments of Korea
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
FINANCIAL SERVICES
Horizontal commitments regarding cross-border services and investment will apply to financial services unless the commitments in this schedule define otherwise for avoidance of doubt.
All the terms, limitations, conditions and qualifications in this schedule shall apply to investors of Singapore and investments of such investors in financial institutions in Korea.
All financial services are subject to the following provisions:
(1) For prudential reasons within the context of paragragh 1 of Article 12.6, Korea shall not be prevented from taking measures including requirements related to parent companies, minimum capital requirement, minimum operating funds requirement, business worker’s license and approval for
business activities.
(2) A financial institution must be established for only one type of business defined in related laws such as banking and securities and thus cannot be engaged in other business activities regulated by other relevant laws.
(3) Cross-border supply of financial services and supply through consumer movement may not be settled in the Korean currency. After the establishment
of commercial presence, financial institutions may handle only transactions, denominated and settled in the Korean currency, with residents. Approval
is required for transactions denominated or settled in foreign currencies with non-residents. Approvals are required for transactions with non-residents such as providing won-denominated loans, issuing won-denominated securities with short-term maturities, providing foreign currency denominated financial credits, guaranties or collaterals, financially unsound corporation’s borrowing from non-residents and derivatives transactions. Transactions
in foreign currencies or with non-residents are required to be reported to relevant authorities.
(4) Assets owned by branches must be kept within the territory of Korea.
Capital of the head office is not recognized as the basis for determining the extent of funding and lending activities of domestic branches.
(5) Demand deposit interest rates are regulated.
(6) Management and operation of assets of a financial institution are restricted.
(7) A financial institution may not own real estate for non-business purposes.
(8) Introduction of new financial products including derivatives is subject to approval.
(9) On Mode 1)2)3), Korea undertakes a standstill commitment for limitations on market access and national treatment, where specific commitments are undertaken, in financial services listed in this schedule as of 31 August 1997.
21
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of
natural persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
A. Insurance and Insurance-
related Services
(i) Direct Insurance
a) Life Insurance Services including accident and health insurance services
1) Unbound
2) Unbound
3) Commercial presence is permitted only to foreign life insurance companies.
Establishment of joint ventures with Korean life insurance companies is not allowed.
Recruitment and employment of insurance professionals, including sales personnel, are
Top executive personnel of each establishment must reside in Korea.
4) Unbound except as indicated in the
Horizontal Commitments Section.
1) Unbound
2) Unbound
3) None
4) Unbound except as indicated in the
Horizontal Commitments Section.
22
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of
natural persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
b) Non-life Insurance services
1) Unbound except for marine export/import cargo and aviation insurance.
2) Unbound
3) Commercial presence is permitted only to foreign non-life insurance companies.
Establishment of joint ventures with Korean non- life insurance companies is not allowed.
Recruitment and employment of insurance professionals, including sales personnel, are restricted.
Top executive personnel of each establishment must reside in Korea.
4) Unbound except as indicated in the
Horizontal Commitments Section.
1) Unbound
2) Unbound
3) None
4) Unbound except as indicated in the
Horizontal Commitments Section.
23
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of
natural persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
(ii) Reinsurance and retrocession services
1) None
2) None
3) Commercial presence is permitted only to foreign reinsurance and retrocession insurance companies.
Recruitment and employment of insurance professionals, including sales personnel, are restricted.
Establishment of joint ventures with Korean reinsurance and retrocession services is not allowed.
Top executive personnel of each establishment must reside in Korea.
4) Unbound except as indicated in the
Horizontal Commitments Section.
1) None
2) None
3) None
4) Unbound except as indicated in the
Horizontal Commitments Section.
24
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of
natural persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
(iii) Insurance broking and agency services
a) Brokerage
1) Unbound
2) Unbound
3) Commercial Presence is permitted only to foreign insurance brokerage companies.
Top executive personnel of each establishment must reside in Korea.
4) Unbound except as indicated in the
Horizontal Commitments Section.
1) Unbound
2) Unbound
3) None
4) Unbound except as indicated in the
Horizontal Commitments Section.
25
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of
natural persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
b) Agency 1) Unbound
2) Unbound
3) None except :
Top executive personnel of each establishment must reside in Korea.
1) Unbound
2) Unbound
3) None
(iv) Services auxiliary to insurance
: applicable only to sub- sector a) and b)
a) Claim settlement and adjustment services4
b) Actuarial services
4) Unbound except as indicated in the
Horizontal Commitments Section.
1) Unbound
2) Unbound
3) Commercial Presence is permitted only to foreign claim settlement and adjustment companies and actuarial companies.
Top executive personnel of each establishment must reside in Korea.
4) Unbound except as indicated in the
Horizontal Commitments Section.
4) Unbound except as indicated in the
Horizontal Commitments Section.
1) None
2) None
3) None
4) Unbound except as indicated in the
Horizontal Commitments Section.
4 Activities which assess and adjust loss and compensation.
26
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of
natural persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
B. Banking and other financial Services
: applicable only to the sub- sectors listed below.
(i) Deposit2
(ii) Lending3
(iii) Financial leasing
(iv) Payment and Money transmission
(v) Guarantees and commitments
(vi) Foreign exchange services4
(vii) Settlement and clearing 5
1) Unbound
2) Unbound
3) Commercial presence is permitted only to foreign financial institutions (except for financial leasing) which deal with the same services in their countries of origin.
A person may own up to 10 per cent of the stocks of a bank (up to 4 per cent in case of non-financial service business entity) and 15 per cent of the stocks of a provincial bank without special authorization of relevant authorities6
A person can own up to 100 per cent of the stocks of a bank or a provincial bank with special authorization of relevant authorities.
Korean Development Bank and Export- Import Bank of Korea are owned by the government.
Foreign exchange position is regulated. The oversold position of spot foreign exchange
is US$ 5 million or 3 per cent of capital
(whichever is greatest).
1) Unbound
2) Unbound
3) None
2 Activities through which banks obtain funds from the public by receiving deposits or issuing transferable instruments or other securities.
3 Activities through which banks provide funds to the public in order to receive interest via loans or bill discounts.
27
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of
natural persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
4 Activities which issue, remit and collect foreign exchange.
5 Activities which settle and clear notes, bills and cheques by banks according to the Article of KFTCI (Korea Financial Telecommunications and Clearings Institute).
6 The definitions of "a person" and "non-financial service business entity" are in accordance with the relevant provision of the Presidential Decree of the Bank Act.
28
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of
natural persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
Deposits for specific purposes, such as housing subscription, may be handled only by designated institutions.
Securities savings and credit granting are subject to ceilings and operational restrictions.
Lending to credit card members through such means as card loans is subject to limitation.
For credit card services, maximum limits are applied to fees, interest rates and other charges.
The maturity of CDs shall be more than
30 days.
Underlying transaction and documentation requirements apply to foreign exchange transactions. Underlying documentation requirements are exempt in the case of forward transactions.
Mandatory lending to small-and-medium sized companies is required.
Foreign currency loans are subject to ceilings and usage restrictions.
Top executive personnel of financial leasing, credit granting and securities savings companies must reside in Korea.
4 Unbound except as indicated in the Hori
29
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of
natural persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
(viii) Trading for own account or for account of customers, whether on an exchange, in an over-the-counter market or otherwise
: applicable only to the
instruments as listed below.
a) Money market instruments
(including cheques, bills, certificates of deposit)
b) Foreign exchange
c) Financial Derivative products (including futures and options)
c) Exchange rate and interest rate instruments (including swaps and forward rate agreements)
e) Transferable securities f) Other negotiable
instruments and
financial assets (including bullion)
1) Unbound
2) Unbound
3) Commercial presence is permitted only to foreign financial institutions which deal
with the same instruments in their countries of origin.
Representative offices may be established by pre-notification.
Top executive personnel of each establishment must reside in Korea.
4) Unbound except as indicated in the
Horizontal Commitments Section.
1) Unbound
2) Unbound
3) None
4) Unbound except as indicated in the
Horizontal Commitments Section.
30
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of
natural persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
(ix) Participation in issues of all
kinds of securities a) Securities issue
b) Underwriting c) Placement
d) Other services related to securities
1) Unbound
2) Unbound
3) Commercial presence is permitted only to foreign financial institutions
which deal
with
issuing of all kinds of securities.
Representative offices may be established by pre-notification.
Top executive personnel of each establishment must reside in Korea.
4) Unbound except as indicated in the
Horizontal Commitments Section.
1) Unbound
2) Unbound
3) None
4) Unbound except as indicated in the
Horizontal Commitments Section.
31
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of
natural persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
(x) Asset management
: applicable only to services listed below.
a) Cash or portfolio management
b) All forms of collective investment management
c) Custody
d) Trust7 (including discretionary investment advisory service)
1) Unbound
2) Unbound
3) Commercial presence is permitted only to foreign asset management companies.
Representative offices may be established by
Pre-notification.
To handle a trust business, approval (two types)
is required from the Ministry of Finance and
Economy both for engaging in businesses
other
than the main banking businesses and for engaging in the trust business.
Unbound for real estate trust business. Top executive personnel of each
establishment must reside in Korea.
4) Unbound except as indicated in the
Horizontal Commitments Section.
1) Unbound
2) Unbound
3) None
4) Unbound except as indicated in the
Horizontal Commitments Section.
7 Activities where a trustee is commissioned to manage the financial assets for the beneficiary’s benefit.
32
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of
natural persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
(xi) Credit information services 1) Unbound
2) Unbound
3) Unbound except for equity participation of less than 50 percent in existing financial information companies.
1) Unbound
2) Unbound
3) None
(xii) Advisory, intermediation and other auxiliary financial services: applicable only to services listed below:
a) Investment advice
4) Unbound except as indicated in the Horizontal
Commitments Section.
1) Unbound
2) Unbound
3) Commercial presence is permitted only to foreign investment advisory companies.
Representative offices may be established by pre-notification.
Top executive personnel of each establishment must reside in Korea.
4) Unbound except as indicated in the
Horizontal Commitments Section.
4) Unbound except as indicated in the Horizontal
Commitments Section.
1) Unbound
2) Unbound
3) None
4) Unbound except as indicated in the
Horizontal Commitments Section.
33
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of
natural persons
Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional
Commitments
b) Credit rating and analysis 1) Unbound
2) Unbound
3) Credit rating companies should be designated by the relevant authorities to assess the credit rating of companies which may wish to issue non-guaranteed corporate bonds and commercial papers.
4) Unbound except as indicated in the
Horizontal Commitments Section.
1) Unbound
2) Unbound
3) None
4) Unbound except as indicated in the
Horizontal Commitments Section.