SOUTH KOREA Law and Practice Contributed by: Jeena Kim, Sodam Kim and Bochan Kim, Bae, Kim & Lee LLC
The second regulation includes the official list of individuals and entities prohibited from conducting financial transactions. The Ministry of Economy and Finance maintains and periodically updates this list. Sanctions targets designated by the UN, US or EU may be included, but the Ministry also has the author - ity to designate individuals or entities independently, even if they are not listed under international meas- ures. Export Controls Export controls are primarily governed by (i) the Public Notice on Export and Import of Strategic Items, and (ii) the Public Notice on Special Trade Measure. The former list is periodically updated to incorpo - rate international export control regimes, including the Wassenaar Arrangement, the Nuclear Suppliers Group, the Missile Technology Control Regime and the Australia Group. South Korea’s export control is generally aligned with these international export con - trol regimes. Amendments to the Public Notice on Export and Import of Strategic Materials frequently refer to such reasons as the rationale for the revisions. The MOTIE serves as the primary regulatory authority for trade sanctions, mainly related to dual use items, imposed under the Foreign Trade Act. The following authorities also implement trade sanctions. • The Korean Security Agency of Trade and Indus - try (KOSTI) acts as the principal authority for the administration and control of dual-use items, which are goods, technologies or software that can be used for both civilian and military applications. • The Nuclear Safety and Security Commission has the authority for dual-use items that are related to nuclear activities; it oversees the licensing and control of items that may contribute to nuclear proliferation. 2. Overview of Regulatory Field 2.1 Primary Regulators Trade Sanctions • The Defence Acquisition Programme Administra - tion is responsible for the regulation of military
materials, as well as dual-use items intended for military end-use or military end-users. Economic and Financial Sanctions The Ministry of Economy and Finance, the Financial Services Commission and the Bank of Korea are the primary regulators overseeing economic and financial sanctions in South Korea. These sanctions, includ - ing asset freezes, are implemented under the Foreign Exchange Transactions Act and Anti-Terrorism Act, and fall within the jurisdiction of the above authorities. Others The Ministry of Justice, the Ministry of Land, Infra - structure and Transport, the Ministry of Oceans and Fisheries, and the Ministry of Unification, oversee mat - ters including travel bans, aviation bans, and maritime sanctions, respectively. 2.2 Enforcement 2.2.1 Enforcement Responsibilities The Financial Services Commission imposes and col - lects administrative monetary penalties in violation of financial sanctions (Article 7 (2) of the Anti-Terrorism Act). Export controls The Minister of the MOTIE, the governor of a prov - ince or metropolitan city, or the head of the relevant administrative agency impose and collect adminis - trative monetary penalties regarding export controls (Article 59 (4) of the Foreign Trade Act). Specifically, the Minister of the MOTIE or the head of the relevant administrative agency may cancel any export licence, situational licence, transit or transshipment licence, or brokering licence after it has been granted, if it is discovered that the licence was obtained by false or fraudulent means, or in the event of changes in the international landscape, such as war, terrorism, inter - state security-related incidents, or concerns arising regarding the movement and proliferation of weapons of mass destruction (Article 19-7 of the Foreign Trade Act). Civil Enforcement Financial sanctions
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