SOUTH KOREA Law and Practice Contributed by: Jeena Kim, Sodam Kim and Bochan Kim, Bae, Kim & Lee LLC
5. Trade and Export Restrictions 5.1 Services Under Article 11 of the Foreign Trade Act and the related export and import notifications, the export or import of goods and certain services may be restrict - ed or prohibited for reasons including the following. • Compliance with treaty obligations or international customary law. • Protection of biological resources. • Securing stable national defence supplies. • Promotion of scientific and technological develop - ment. The list of prohibited items and restricted items that are permitted for export or import if the MOTIE’s approval is obtained are as follows. • Export-prohibited items – whale meat, natural granite and sandstone, and dog fur. • Export-restricted items – certain types of silica sand and marble stone, and certain types of steel products. • Import-restricted items – certain aircraft, satellites, spacecraft, parachutes and their materials, parts and components. In addition, the export of goods and certain services related to military technical support or training to con - flict zones or hostile countries – such as Iraq, Soma - lia, the Democratic Republic of the Congo and North Korea – is prohibited unless the exporter obtains prior approval from the MOTIE for limited and specified pur - poses. On a separate note, there are specific restrictions regarding trade with North Korea under the Act on Inter-Korean Exchange and Cooperation. The key pro - visions are as follows. • Article 13 requires the importer or exporter of goods and certain services such as transportation, warehousing, financing and insurance, healthcare, education, to obtain permission from the Minister of Unification regarding the respective import or export.
without delay notify the applicant of that fact (Article 3 (4) of the Enforcement Decree). (b) Where the Financial Services Commission decides to dismiss or reject an objection, it will set out in detail the reasons for its decision and the procedures by which the decision may be contested, and notify the applicant accordingly, together with the results (Article 3 (5) of the Enforcement Decree). The applicant may pur - sue an administrative appeal or administrative litigation with respect to the decision (Article 3 (5) of the Enforcement Decree). Note that the Foreign Exchange Transactions Act does not provide a specific objection process for designations. 4.2 Remedies It is difficult to achieve any outcome other than the actual delisting through a delisting challenge. A person subjected to sanctions may consider assert - ing a claim for damages under the State Compensa - tion Act by filing a separate lawsuit. However, relief under the State Compensation Act is available only where a public servant, in the course of performing official duties, intentionally or negligently violates stat - utes or regulations, which results in causing harm to another (Article 2 (1) of the State Compensation Act). Accordingly, absent any wilful or negligent breach of law during the sanctions‑enforcement process, a claim for damages under a separate lawsuit is unlikely to succeed. In addition, the lack of reported prece - dents awarding damages related to the designation of sanctions makes it difficult to estimate potential damages. 4.3 Timing It is expected to take at least six months to obtain delisting due to administrative procedures. However, since there are no known delisting precedents, it may take longer depending on the specific facts of each case.
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