Policy Position Paper – South Korea

The Republic of Korea knows that business and investments are crucial to the success of any modern country. In 1997 when the country was faced with a major economic crisis, the IMF stepped in with funding that provided the opportunity for the Korean government to undergo significant changes that have thus far been very beneficial to the nation and world. Foreign investment is now welcomed with outstretched arms, and the economy is quickly getting back on its feet.

The use of APEC will be, in general, to allow for more international trade and investing. As was found with the implementations made by the government in 1997, the country can best benefit from structured investments from outside sources – keeping the trust that is so vitally needed.

The current status of IPR in South Korea is as follows (excerpted from the IPEG Meeting in July 1999; p 6.f.1 – Compilation of Info [pg. 20-21] ) :

For a patent concerning a product invention, acts of making, assigning, leasing, importing, or offering for assignment or lease of such articles as used exclusively for making such a product.

For a patent concerning a process invention, acts of making assigning, leasing, importing or offering for assignment or lease of such articles used exclusively for the working of such process.

Trademarks

Acts of using a trademark identical with the registered trademark of another person on goods identical with, or similar to, the designed goods, or using a trademark similar to the registered trademark of another person on goods identical with or similar to the designated goods.

Acts of delivering selling, counterfeiting, imitating or possessing a trademark identical with or similar to the registered trademark of another person for the purposes of using or causing a third party to use such trademark on goods identical with or similar to, the designated goods. Acts of manufacturing, delivering, selling or possessing instruments for the purposes of counterfeiting or imitating a registered trademark of another person or causing a third party to counterfeit or imitate such trademark.

Acts of commercially or industrially making articles used exclusively for manufacturing of an article to which a registered design or similar design is applied shall be deemed to be an infringement of the design right or exclusive license.

Trade Secret

Acts of improper acquisition or disclosure of trade secret.

Acts of reproducing a layout design, manufacturing of a semiconductor integrated circuit based on a layout design, transferring, leasing, displaying or importing a layout design, or an article incorporating the semiconductor integrated circuit without the necessary authorization from the right owner

Acts of making the work open to the public, changing the indication of the author’s name, and damaging the integrity of the work without the necessary authorization from the right owner.

Economic rights

Acts of infringing the right of reproduction, public performance, broadcasting, exhibition, distribution and adaptation.

Acts of infringing the rights of performers, phonogram producers and broadcasters.

Acts consider to be infringements

Acts of importing for distribution, objects made by an act of which would constitute an infringement on copyright and neighboring rights if they were made in Korea at the time of such importation, distributing or possessing for the purpose of distribution objects by an act of infringement of copyright and neighboring rights by a person who is aware of such infringements and exploiting a work in a manner prejudicial to the honor or reputation of the author.

Our wishes concerning the future in our own and in the Asian-Pacific Economy are as such ( obtained from http://www.apecsec.org.sg/iap/99/ ; Section - Summary matrix detailing actions for the current year, the short term, medium term, and long term) :

• Strengthen the protection of well-known trademarks
• Amend copyright law in response to the technological advancements
• Join the UPOV Convention in 1999
• Join the Strasbourg Agreement concerning the IPC and the Nice Agreement
• Develop an electronic filing system, examination trial search system and information service system
• Reduce the patent examination pending period to 24 months
• Assist developing member economies to implement the TRIPs Agreement
• Ensure that IPR Law reflects international trends and new technology developments

· Continue to maintain adequate and effective civil administrative procedures and remedies

All we ask of APEC are open minds and a willingness to help.

Sustainable Development

The Republic of Korea needs more sustainable development to mature into a world-wide competitor. Our recent economic depressions of 1997 and 1998 have created a foreboding and ominous situation that must be addressed promptly with economic reform and subsequent growth. We are currently lowering tariffs in order to stimulate trade. Our economic growth is now based on an overwhelming emphasis to deregulate our economy and industries. This deregulation will require great amounts of aid from investors both from outside our country and within.

Tariffs are being lowered substantially in nearly every industry. In addition to UR tariff concession, we have unilaterally lowered tariffs on 182 tariff lines of raw materials (natural rubber, wool, palm oil, lumber, coal, etc.) and intermediate/semi-finished goods (methanol, naphthylamine, steel, glass, etc.) as of January 1, 1998. Korea has phased out its tariffs on Information Technology (IT) products with a view to the elimination of tariffs by 2000. Previously unbound tariffs on motor vehicles were bound at 8% as of January 1, 1999 as per the results of the 1998 auto negotiations with the US.

Deregulation within our country will be most prevalent in the public utilities sectors of power, gas, education, and telecommunications. Deregulation will also occur in the industries of aviation and tourism. The power generation division of KEPCO will be divided into several companies and gradually privatized by the end of 2002. During 2003-2009, the power distribution sector will be separated and gradually privatized with regional monopoly system allowed. The import and export of LNG will no longer be subject to government approval. From 2001, any import or export of LNG will only be subject to simple notification to the relevant authorities. Korea will seek to privatize the Korea gas Corporation (KOGAS) by 2002. Government equity share of Korea Telecom (KT) shrank from 71.2% to 59% as a result of issuance of American Depository Receipt on May 25, 1999. KT will reduce its government shares to 33.4% by the end of 2000. A foreigner can become the largest shareholder of facilities-based telecom service providers from Jan 1, 1999 so that a foreigner is able to exercise managerial power. Since January 1998, foreign nationals are allowed to establish universities in Korea. Korea will continuously increase the level of liberalization in education sector from 1999 onwards. According to 1998 IAP, foreign investment in the casino business was allowed completely to foreign investors from May 1, 1999. Aircraft handling business will be fully liberalized beginning 6 August, 1999. This deregulation can only be successful with foreign and domestic investments.

Despite the depression that has swept the Pacific Rim, Korea is now enjoying substantial growth. This growth can be attributed to the fact that Korea has mainly seen the worst of this economic crisis. Korea has already been bailed out by the International Monetary Fund (IMF). Now we look forward to strong economic growth. With steady recovery from the crisis, the Korean economy is estimated to grow by nearly 5% in 2000. However, the strength and speed of recovery and the resumption of sustainable growth will greatly depend on both domestic confidence in the restructuring programs and the international economic environment. Korea’s current account surplus will fall to around US$7 billion in the second half of 1999, and the economy is expected to attain its current account surplus target of US$20 billion for 1999. Helped by the rapid economic recovery, private consumption is expected to surge by 6.4% in 1999, compared with a decline of 9.6% a year earlier. Annual consumer price inflation is forecast to be 1.8% in 1999, much lower than the 3% set in the latest consultation with the IMF, and 2.0% in 2000. Unemployment is targeted to be reduced to 6.0% in 1999 and to stay at around 6.0% during 2000.

Through furthering the reach of the market mechanism in its economy, Korea will strive to maximize its growth potential. By 1999, the Korean economy will restore full economic stability and the year 2000 will mark the beginning of a new phase of sustainable growth with increased productivity and global competitiveness.

The Republic of Korea is definitely in favor of APEC. We hope to persuade other developing nations to accept the terms of the agreement in order to help their fledgling economies flourish. We have seen first hand how expansion and development of our struggling industry and trade has benefited our citizens as a whole. Looking to continue growth, we hope to open Asian and Pacific trade to even more countries. This agreement will not only benefit Korea; it will help smaller, less industrialized nations whom need a jump-start in the game of world economics. Thus, we encourage all concerned parties to vote in favor of APEC because it is mutually beneficial to all. We as an ever-growing trade center wish to ratify the treaty immediately in order to begin favorable trade at once. If any nations are heavily dwelling on whether or not to ratify the agreement, please fell free to contact our director of foreign policy via email. We can share our first hand experience about the program and demonstrate to you the positives and negatives of the agreement. We will be sure to keep you posted on any further discussions by means of our press secretary found on the assigned web page.

Respectfully Submitted,

The Republic of Korea