Current Status of the South Korean Export Control Systems Jungmin KANG CISAC, Stanford University EASSC 2006 Meeting Beiji...
Introduction <ul><li>COCOM to Wassenaar Agreement in 1990s </li></ul><ul><li>ROK recognizing importance of export controls...
Purpose of Export Controls <ul><li>Securing security </li></ul><ul><li>Preventing diplomatic conflict </li></ul><ul><li>Fa...
Legislative History <ul><li>Sept. 1987: “Memorandum of understanding between the government of the Republic of Korea and t...
Legal Framework and Licensing <ul><li>Foreign Trade Act, Order and Guidelines </li></ul><ul><li>Public Notice on Exports a...
Export Licensing Bureaucracy Trade with the DPRK MU (Social and Cultural Exchange Bureau) Clearance of the import/export g...
Export Licensing Bureaucracy (cont’) 82-2-2110-3819 82-2-503-7630 MOST (Int’l Cooperation Policy & America Division) 3. Te...
Regions Subject to Control <ul><li>Number 1 Items: All regions </li></ul><ul><li>Number 2 Items: All regions except member...
Int’l Export Control Regime Adherence MTCR - 1987 - 34 countries * ROK: 2001 AG - 1985 - 33 countries * ROK : 1996 NSG - 1...
Catch-All Controls <ul><li>Date of implementation: Jan. 1, 2003 </li></ul><ul><li>Controlled Items: HS 25-40, 54-59, 63, 6...
CP (Compliance Program) <ul><li>STIC (Strategic Trade Information Center) recommending CP </li></ul><ul><li>Emphasizing CP...
Training <ul><li>Formal and/or specialized training course on export controls in ROK was just started by STIC with support...
Customs Authority <ul><li>Following guidelines on the Export and Import of Strategic Items </li></ul><ul><li>However, seem...
Penalties <ul><li>Criminal </li></ul><ul><li>Administrative </li></ul><ul><li>Reality </li></ul>
Export Licensing Procedure <ul><li>Applying Export Licensing to a relevant Agency </li></ul><ul><li>Import Certificates </...
Recent Trends of Strategic Items 24 (103) 7 (0.7) Give-up (M$) 5 (0.2) 7  (0.7) Reject (M$) 462 (583) 477 (4,075) 370 (3,8...
STIC  (Strategic Trade Information Center)   <ul><li>Established on Aug. 30, 2004 </li></ul><ul><li>Licensing Review from ...
Issue on Export Control in ROK <ul><li>Gaeseong Industrial Complex </li></ul><ul><li>- Agreement between Hyundai Group and...
Findings <ul><li>The ROK government has shown seriousness in export control since 2004 </li></ul><ul><li>STIC appears (ful...
Upcoming SlideShare
Loading in …5
×

Including Goods Such As, Footwear Manufacture, Sewing Apparel

458 views
419 views

Published on

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
458
On SlideShare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
4
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Including Goods Such As, Footwear Manufacture, Sewing Apparel

  1. 1. Current Status of the South Korean Export Control Systems Jungmin KANG CISAC, Stanford University EASSC 2006 Meeting Beijing, China, November 3-4, 2006 (Previously presented at CISTEC, Tokyo, Japan, Jan. 25, 2005)
  2. 2. Introduction <ul><li>COCOM to Wassenaar Agreement in 1990s </li></ul><ul><li>ROK recognizing importance of export controls since late 1990s </li></ul><ul><li>ROK adopting Catch-All in Jan. 2003 </li></ul><ul><li>STIC (Strategic Trade Information Center) established in Aug. 2004 </li></ul>
  3. 3. Purpose of Export Controls <ul><li>Securing security </li></ul><ul><li>Preventing diplomatic conflict </li></ul><ul><li>Facilitating import of goods, technologies and software </li></ul><ul><li>Taking care of companies </li></ul>
  4. 4. Legislative History <ul><li>Sept. 1987: “Memorandum of understanding between the government of the Republic of Korea and the government of the United States of America on the protection of strategic commodities and technical data” </li></ul><ul><li>1989: “License on Exports and Imports of Strategic Items” </li></ul><ul><li>Dec. 1992: “Foreign Trade Act, Order and Guidelines” establishing legal ground for export control </li></ul><ul><li>Dec. 2002: “Public Notice on Exports and Imports of Strategic Items” </li></ul><ul><li>Jan. 2003: Catch-All </li></ul><ul><li>Oct. 2004: “Combined Public Notice on Exports and Imports of Strategic Items and Technologies” </li></ul>
  5. 5. Legal Framework and Licensing <ul><li>Foreign Trade Act, Order and Guidelines </li></ul><ul><li>Public Notice on Exports and Imports of Strategic Items </li></ul><ul><li>Technology Development and Promotion Act, Order and Guidelines </li></ul><ul><li>Public Notice on Exports of Strategic Technologies </li></ul><ul><li>(Combined Public Notice on Exports and Imports of Strategic Items and Technologies) </li></ul><ul><li>Atomic Energy Act and Order </li></ul><ul><li>Special Act Governing the South Korean Defense Industry, Order and Guidelines </li></ul><ul><li>Act on Inter-Korean Exchanges and Cooperation, Order and Guidelines </li></ul><ul><li>Custom Tariff Act, Order and Special Rule </li></ul>
  6. 6. Export Licensing Bureaucracy Trade with the DPRK MU (Social and Cultural Exchange Bureau) Clearance of the import/export goods Korea Customs Service (Clearance Planning Division) Coordination, advise on end-users MOFAT (Disarmament and Nuclear Affairs) Munitions items MTCR and other missile items (military) MND (Office of Int’l Cooperation) NSG Part 1 items MOST (Int’l Cooperation Policy & America Division, etc) Wassenaar Arrangement duel-use items NSG Part 2 items MTCR and other missile items (civilian) CWC and AG items (civilian) MOCIE (Import Division) Responsibility Agency
  7. 7. Export Licensing Bureaucracy (cont’) 82-2-2110-3819 82-2-503-7630 MOST (Int’l Cooperation Policy & America Division) 3. Technologies related with *7 82-2-2110-3679 82-2-2110-3659 82-2-503-7627 82-2-503-7625 MOST (Radiation Safety Division, Atomic Energy Cooperation Division) 2. Chemicals of radioactive isotopes and nuclear reactor and its related goods and technologies (*7) 82-2-503-9438 82-2-2110-5341 MOCIE (Import Division) 1. *7 (Except *2. 3) II. Number 2 Strategic Items (* 7) 82-31-436-8610 82-31-436-8606~7 MOST (Fundamental Technology Development Division) Technologies 82-2-503-9438 82-2-2110-5341 MOCIE (Import Division) Chemicals of Number 1, 2 and 3 CWC (*6) 82-31-436-8610 82-31-436-8606~7 MOST (Fundamental Technology Development Division) Technologies 82-2-503-9438 82-2-2110-5341 MOCIE (Import Division) Industrial goods and software in general AG (*5) 82-31-436-8610 82-31-436-8608~9 MOST (Space Technology Development Division) Technologies 82-2-503-9438 82-2-2110-5341 MOCIE (Import Division) Industrial goods and software in general MTCR (*4) 82-2-2110-3659 82-2-503-7625 MOST (Atomic Energy Cooperation Division) Nuclear material, equipments, software and technologies 82-2-503-9438 82-2- 2110-5341 MOCIE (Import Division) Industrial goods and software in general NSG (*3) 82-2-748-5458 82-2- 748-5451 MND (Office of Int’l Cooperation) Munitions items and software 82-2-2110-3819 82-2- 503-7630 MOST (Int’l Cooperation Policy & America Division) Technologies 82-2-503-9438 82-2-2110-5341 MOCIE (Import Division) Industrial goods and software in general WA (*2) I. Number 1 Strategic Items (*2 ~ 6) FAX Tel Agency Items
  8. 8. Regions Subject to Control <ul><li>Number 1 Items: All regions </li></ul><ul><li>Number 2 Items: All regions except member countries of international export control regimes </li></ul>
  9. 9. Int’l Export Control Regime Adherence MTCR - 1987 - 34 countries * ROK: 2001 AG - 1985 - 33 countries * ROK : 1996 NSG - 1977 - 40 countries * ROK : 1995 WA - 1996 - 33 countries * ROK : 1975 Int’l export control regimes   CWC - 1997 - 153 countries * ROK: 1998 BWC - 1975 - 150 countries * ROK: 1987 NPT - 1970 - 189 countries * ROK: 1975   Treaties Missiles Chemical Weapons & Biological Weapons Nuclear Weapons Weapons of Mass Destruction and Their Delivery Systems Conventional Weapons  
  10. 10. Catch-All Controls <ul><li>Date of implementation: Jan. 1, 2003 </li></ul><ul><li>Controlled Items: HS 25-40, 54-59, 63, 68-93, 95 </li></ul><ul><li>Licensing Agency: Ministry of MOCIE (but, Ministry of MOST for nuclear-related items) </li></ul><ul><li>Regions Subject to Control: All regions except 28 countries that are members to four international export control regimes </li></ul>
  11. 11. CP (Compliance Program) <ul><li>STIC (Strategic Trade Information Center) recommending CP </li></ul><ul><li>Emphasizing CP from 2005 </li></ul>
  12. 12. Training <ul><li>Formal and/or specialized training course on export controls in ROK was just started by STIC with support from MOCIE since October 2006. </li></ul>
  13. 13. Customs Authority <ul><li>Following guidelines on the Export and Import of Strategic Items </li></ul><ul><li>However, seems no interagency process between government agencies </li></ul>
  14. 14. Penalties <ul><li>Criminal </li></ul><ul><li>Administrative </li></ul><ul><li>Reality </li></ul>
  15. 15. Export Licensing Procedure <ul><li>Applying Export Licensing to a relevant Agency </li></ul><ul><li>Import Certificates </li></ul><ul><li>Licensing Review </li></ul>
  16. 16. Recent Trends of Strategic Items 24 (103) 7 (0.7) Give-up (M$) 5 (0.2) 7 (0.7) Reject (M$) 462 (583) 477 (4,075) 370 (3,842) 349 (4,303) Permission (M$) 491 (686) 491 (4,076) 370 (3,842) 349 (4,303) Apply (M$) Jan. – Aug. 2004 2003 2002 2001  
  17. 17. STIC (Strategic Trade Information Center) <ul><li>Established on Aug. 30, 2004 </li></ul><ul><li>Licensing Review from Jan. 20, 2005 </li></ul><ul><li>Formal and/or specialized training course on export controls since October 2006 </li></ul>
  18. 18. Issue on Export Control in ROK <ul><li>Gaeseong Industrial Complex </li></ul><ul><li>- Agreement between Hyundai Group and Asia-Pacific Peace Committee (DPRK) in Aug. 2000 </li></ul><ul><li>- Dec. 15, 2004: Opening of Living Art Gaeseong Plant </li></ul><ul><li>- Stage 1 (2002-2007) (40% completion at end of 2004) including goods such as, footwear manufacture, sewing/apparel, electric power supply/control devices, electric components/video devices, electronic components, automobile components, plastic products, etc. </li></ul><ul><li>- Development of the Gaeseong Industrial Complex is one of the most important projects pursued by Rho Administration </li></ul>
  19. 19. Findings <ul><li>The ROK government has shown seriousness in export control since 2004 </li></ul><ul><li>STIC appears (fully supported by MOCIE) a core organization in export control in ROK </li></ul><ul><li>ROK Export to Gaeseong Industrial Complex could still be a trouble source in the context of international export control regimes </li></ul>

×