RESTRICTEDWORLD TRADE
ORGANIZATIONGPA/W/222
11 November 2002
(02-6172)
Committee on Government Procurement Original:  English
RESPONSE TO QUESTION FROM CANADA RELATING TO KOREA TELECOM
Communication from the Republic of Korea
The following communication, dated 6 November 2002, has been received from the
Permanent Mission of the Republic of Korea with the request that it be circulated to the Committee on
Government Procurement.
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Please find below Korea's reply to a question from Canada (GPA/W/217) regarding Korea's
notification to the Committee on Government Procurement on the withdrawal of "Korea Telecom"
from Annex 3 of Appendix I of the GPA (GPA/W/207).
Question
Specifically, Canada would like the Government of Korea to confirm that the GATT and
GATS national treatment and MFN obligations will apply to any measures taken by the Governmentof Korea pertaining to purchases by Korea Telecom.
Reply
As explained in detail in Korea's notification to the Committee on Government Procurement,
KT (formerly Korea Telecom) is free from any government control or influence in making its
business decisions, including purchase decisions.  Since the Korean Government sold its remaining
28.36 per cent stake in KT on 21 May 2002, as a KT announced the completion of its privatization
process at its shareholders' meeting on 20 August 2002, the Korean Government does not have any
legal or other means to intervene in KT's purchasing decisions.
Accordingly, the Government of Korea does not see any possibility of measures being taken
by the Korean Government pertaining to purchases by KT at all because KT is entitled to make
decisions on its purchases solely in accordance with its own commercial considerations.
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