  
  
G/STR/N/18/KOR  
 
12 October 2020  
(20-7013) Page: 1/11 
Working Party on State Trading Enterprises  Original: English  
 
 
STATE TRADING  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVII:4(A) OF THE  
GATT 1994 AND PARAGRAPH 1 OF THE UNDERSTANDING ON  
THE INTERPRETATION OF ARTICLE XVII  
REPUBLIC OF KOREA 
The following communication, dated 6 October 2020, is being circulated at the request of the 
delegation of the Republic of Korea , in response to the call for notifications set forth in document  
G/STR/N/18 . 
 
_______________  
 
 
Pursuant to Article XVII:4(a) o f GATT 1994 and Paragraph 1 of the Understanding on the 
Interpretation of Article XVII, the Republic of Korea makes the following full and new notification of 
its state trading enterprises for 2018 and 2019  (G/STR/N/ 18/KOR).  
TABLE OF CONTENTS  
I. MINISTRY OF AGRICULTURE, FOOD AND RURAL AFFAIRS, MAFRA  .........................  2 
II. THE KOREA AGRO -FISHERIES&FOOD TRADE CORPORATION (AT)  .........................  3 G/STR/N/18/KOR  
 
- 2 - 
 
  I. MINISTRY OF AGRICULTURE, FOOD AND RURAL AFFAIRS, MAFRA  
1. Description of Products Affected  
Products  HS number*  Products  HS number*  
Rice 1006.10.0000  
1006.20.1000  
1006.20.2000  
1006.30.1000  
1006.30.2000  
1006.40.0000  
1102.90.2000  
1103.19.3000  Rice 1103.20.2000  
1104.19.1000  
1806.90.2290  
1806.90.2999  
1901.20.1000  
1901.20.9000  
1901.90.9091  
1901.90.9099  
 
2. Reason and Purpose  
A. Reason or purpose for establishing and/or maintaining state trading enterprise  
The MAFRA  has exclusive rights to the importation of  rice in order to avoid domestic market 
disturbances caused by a sudden influx of imported rice and to ensure a smooth implementation of 
the Uruguay Round commitments.  
B. Summary of legal basis for granting the relevant exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers  
Legal provision: Articles 12 and 13 of the Grain Management Act.  
3. Description of the Functioning of the State Trad ing Enterprise  
A. Summary statement providing overview of operations of state trading  
Imports are conducted within the limit of quotas on rice as established in Korea's Country 
Schedule  (C/S).  
B. Specification of exclusive or special rights or privileges e njoyed by the state trading enterprise  
The M AFRA has the exclusive rights to the importation of  rice as established in Korea's C/S in 
accordance with the Grain Management Act.  
C. Type of entities other than the state trading enterprise that are allowed to engage in 
importation/exportation and conditions for participation  
Not applicable.  
D. How import/export levels are established by the state trading enterprise  
Import in accordance with the tariff quotas set in Korea's C/S.  
E. How export prices are determin ed 
Not applicable.  
F. How the resale prices of imported products are determined  
The domestic sales prices of rice for household use  are determined by open auction.  
The domestic sales prices of rice for processing are determined by the M AFRA based on import  
prices, management costs, domestic consumer prices, consumer preference and the level of demand 
of processing companies . G/STR/N/18/KOR  
 
- 3 - 
 
  G. Whether long -term contracts are negotiated by the state trading enterprise or whether the 
state trading enterprise is used to fulfi ll contractual obligations entered into by the government  
Long-term contracts are not considered, and equal opportunities are provided to all parties 
interested in rice export.  
H. Brief description of market structure  
Farmers enter into government purchases for public stockholding or sell their crops at their liberty 
in private markets.  
4. Statistical Information (see attached Tables I -III) 
A. Table I: Statistical Information, Imports.  
B. Table II: Statistical Information, Exports.  
Not applicable.  
C. Table III: Statistical Information, Domestic Activities.  
5. Reason why no foreign trade has taken place  
Not applicable.  
6. Additional Information  
Not applicable.  
II. THE KOREA AGRO -FISHERIES  & FOOD TRADE CORPORATION ( aT) 
1. Description of Products Affected  
Products  HS Number  Products  HS Number  
Genus Capsicum  0904.21.0000  Soya beans  1201.90.3000  
1201.90.9000  
Garlic  0703.20.9000  
0712.90.1000  Green beans  
Small red beans  0713.31.9000  
0713.32.9000  
Onions  0703.10.1000  
0712.20.0000  Buckwheat  1008.10.0000  
Sesam um seeds  1207.40.0000  Potatoes  (Other)  0701.90.0000  
 
2. Reason and Purpose  
A. Reason or purpose for establishing and/or maintaining state trading enterprise  
The aT was established in 1967 under the Agro -Fisheries Marketing Corporation Act to stabilize the 
domestic market prices of agricultural and fishery products, promote exports, administer imports, 
improve marketing and foster the food industry.  
The aT is designa ted as an import agency to administer tariff quotas on relevant items (small red 
beans, buckwheat, etc.) in order to stabilize the domestic market and to ensure the smooth 
implementation of the UR commitments.  
B. Summary of legal basis for granting the rel evant exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers  
Legal provision: Article 15  and 16 of the Agro -Fisheries Marketing and Price Stabilization Act/  
Articles  12, 13  and 13-2 of the Gr ain Management Act.  G/STR/N/18/KOR  
 
- 4 - 
 
  3. Description of the Functioning of the State Trading Enterprise  
A. Summary statement providing overview of operations of state trading  
The aT imports tariff quota quantity specified in Korea's C/S.  
B. Specification of exclusive or specia l rights or privileges enjoyed by the state trading enterprise  
Imports & sales of items subject to in-quota  tariffs.  
C. Type of entities other than the state trading enterprise that are allowed to engage in 
importation/exportation and conditions for participation  
For sesam um seeds , buckwheat, onion,  garlic, green beans, small red beans and soya beans,  private 
companies are allowed to import part of the quotas through open bidding. Open bidding refers to a 
"public auction" where goods are sold to a par ticipati ng company which  offers the highest price 
during the auction . For genus capsicum, green beans, small red beans and potatoes, part of tariff 
quota quantity is allocated to private companies on a first -come, first -served basis.  
D. How import/export l evels are established by the state trading enterprise  
Imports are carried out by an annual quota quantity as set in Korea's C/S, and certain items (small 
red beans, soy a beans, sesam um seeds, potatoes, etc.) are imported by more than the specified 
quantity  in Korea's C/S, depending on the changes in domestic supply and demand.  
E. How export prices are determined  
Not applicable.  
F. How the resale prices of imported products are determined  
The resale prices of imported products are determined at the open auct ion, at a level above 70  % 
of the wholesale prices, depending on their quality.  
G. Whether long -term contracts are negotiated by the state trading enterprise or whether the 
state trading enterprise is used to fulfill contractual obligations entered into by  the government  
Long-term contracts are not considered, and equal opportunities are granted to all countries 
concerned.  
H. Brief description of market structure  
Farmers generally sell crops at their will in private markets.  
The products imported by the aT are either sold directly by the aT or through an open bidding or a 
wholesale auction system.  
4. Statistical Information (see attached Tables I -III) 
A. Table I: Statistical Information, Imports.  
B. Table II: Statistical Information, Exports.  
Not applicable.  
C. Table III: Statistical Information, Domestic Activities.  
5. Reason why no foreign trade has taken place  
Not applicable.  G/STR/N/18/KOR  
 
- 5 - 
 
  6. Additional Information  
Not applicable. 
  G/STR/N/18/KOR  
 
- 6 - TABLE I  
STATE TRADING: MINISTRY OF AGRICULTURE, FOOD AND RURAL AFFAIRS  
STATISTICAL INFORMATION, IMPORTS  
(unit: mt, US$, US$/mt)  
Description of 
product(s)  
(including HS 
number(s))  Total quantity 
imported  Quantity imported 
by state trading 
enterprises  Average import 
price  
(US$/mt)  Average 
representative 
domestic sales 
price  
(US$/mt)  Mark -up 
(US$/mt)  National 
production  
1 2 3 4 5 6 7 
Rice 
(1006.20.1000)  '18: 406,555  
'19: 409,666  '18: 406,555  
'19: 409,666  '18: 764  
'19: 718  '18: 498  
'19: 470  '18: - 
'19: - 
'18: 3,972,468  
'19: 3,868,045  Rice 
(1006.30.1000)  '18: 39,800  
'19: 40,000  '18: 39,800  
'19: 40,000  '18: 934  
'19: 929  '18: 1,328  
'19: 1,475  '18: - 
'19: - 
Rice 
(1006.30.2000)  '18: 3,000  
'19: 0 '18: 3,000  
'19: 0  '18: 925  
'19: - '18: 1,352  
'19: - '18: - 
'19: - 
Note 1. Rice: Polished rice basis . 
 2. Annual average of exchange rate:  '18: W 1,100.3 0/$, '19: W 1,165.65/$ .   
  G/STR/N/18/KOR  
 
- 7 - TABLE III  
STATE TRADING: MINISTRY OF AGRICULTURE, FOOD AND RURAL AFFAIRS  
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
(unit: mt)  
Description of product(s)  
(including HS number(s))  Domestic purchase by 
state trading enterprises  National production  Domestic sales by state 
trading enterprise  National consumption  
1 2 3 4 5 
Rice 
(1006.20.1000)  
(1006. 30.1000)  
(1006.30.2000)  '18: 449,355  
'19: 449,666  '18: 3,972,468  
'19: 3,868,045  '18: 67,207  
'19: 68,512  '18: 4,816,000  
'19: - 
Note 1. Rice: Polished rice basis .   
  G/STR/N/18/KOR  
 
- 8 - TABLE I  
STATE TRADING: KOREA AGRO -FISHERIES  & FOOD TRADE CORPORATION( aT) 
STATISTICAL INFORMATION, IMPORTS  
(unit: mt, US$, US$/mt)  
Description of 
product(s)  
(including HS 
number(s))  Total quantity 
imported  Quantity imported 
by state trading 
enterprise  Average import 
price  
(US$/mt)  Average 
representative 
domestic sales 
price (US$/mt)  Mark up  
(US$/mt)  National 
production  
1 2 3 4 5 6 7 
1. Soya beans  
(1201. 90.3000) 
(1201. 90.9000) '18: 237,740  
'19: 284,356  '18: 208,835  
'19: 200,993  '18: 624 
'19: 608 '18: 1,018  
'19: 904 '18: 394 
'19: 297  '18: 89,410  
'19: 105,340  
2. Small red beans  
(0713.32.9000)  '18: 24,347  
'19: 23,704  '18: 18,794  
'19: 18,594  '18: 1,239  
'19: 1,412  '18: 1,953  
'19: 1,717  '18: 715 
'19: 304 '18: 5,640  
'19: 6,816  
3. Green beans  
(0713.31.9000)  '18: 7,477  
'19: 6,955  '18: 3,000  
'19: 2,000  '18: 1,377  
'19: 1,472 '18: 3,814  
'19: 3,293  '18: 2,437  
'19: 1,821  '18: 2,083  
'19: 1,746  
4. Buckwheat  
(1008.10.0000)  '18: 2,263  
'19: 2,083  '18: 827 
'19: 828 '18: 657 
'19: 716 '18: 1,897  
'19: 1,665  '18: 1,240  
'19: 949 '18: 2,908  
'19: 2,137  
5. Genus Capsicum  
(0904.2 1.0000) '18: 3,978  
'19: 4,343  '18: 0 
'19: 0 '18: - 
'19: - '18: 7,046  
'19: - '18: - 
'19: - '18: 71,509  
'19: 78,437  
Note 1. Annual average of exchange rate:  '18: W 1,100.30/$ , '19: W 1,165.65/$ . 
 2. Buckwheat: National production is based on predictive data.    
  G/STR/N/18/KOR  
 
- 9 - TABLE I  
STATE TRADING: AGRICULTURAL KOREA AGRO -FISHERIES  & FOOD TRADE CORPORATION( aT) 
STATISTICAL INFORMATION, IMPORTS  
(unit: mt, US$, US$/mt)  
Description of 
product(s)  
(including HS 
number(s))  Total quantity 
imported  Quantity imported 
by state trading 
enterprise  Average import 
price (US$/mt)  Average 
representative 
domestic sales 
price(US$/mt)  Mark up  
(US$/mt)  National 
production  
1 2 3 4 5 6 7 
6. Garlic  
(0703.20.9000)  
(0712.90.1000)  '18: 5,761  
'19: 3,219  '18: 0 
'19: 399 '18: - 
'19: 2,497  '18: 841 
'19: - '18: - 
'19: - '18: 331,741  
'19: 387,671  
7. Onions  
(0703.10.1000)  
(0712.20.0000)  '18: 59,696  
'19: 24,600  '18: 0 
'19: 0  '18: - 
'19: - '18: 573 
'19: - '18: - 
'19: - '18: 1,520,969  
'19: 1,594,450  
8. Sesamum seeds  
(1207.40.0000)  '18: 72,063 
'19: 76,812  '18: 33,900  
'19: 38,177  '18: 2,374  
'19: 2,582  '18: 3,182  
'19: 3,544  '18: 808 
'19: 962 '18: 12,727  
'19: 12,986  
9. Potatoes  
(0701.90.0000)  '18: 38,592 
'19: 29,695  '18: 3,460  
'19: 2,990  '18: 1,589  
'19: 1,414  '18: 1,171  
'19: 925 '18: -418 
'19: -489 '18: 548,065  
'19: 630,140  
Note 1. Annual average of exchange rate:  '18: W 1,100.30/$ , '19: W 1,165.65/$ .   
  G/STR/N/18/KOR  
 
- 10 - TABLE III  
STATE TRADING: KOREA AGRO -FISHERIES  & FOOD TRADE CORPORATION( aT) 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
(unit: mt)  
Description of product(s)  
(including HS number(s))  Domestic purchases by 
state trading enterprise  National  
Production  Domestic sales by state 
trading enterprise  National consumption  
1 2 3 4 5 
1. Soya beans  
(1201. 90.3000) 
(1201. 90.9000) '18: 209,335  
'19: 217,080  '18: 89,410  
'19: 105,340  '18: 209,534  
'19: 206,374  '18: 365,000  
'19: 390,000  
2. Small red beans  
(0713.32.9000)  '18: 18,794  
'19: 18,595  '18: 5,640  
'19: 6,816  '18: 18,081  
'19: 16,717  '18: 29,315  
'19: 28,650  
3. Green beans  
(0713.31.9000)  '18: 3,000  
'19: 2,000  '18: 2,083  
'19: 1,746  '18: 2,134  
'19: 2,064  '18: 7,688  
'19: 8,265  
4. Buck wheat  
(1008.10.0000)  '18: 1,050  
'19: 915  '18: 2,908  
'19: 2,137  '18: 1,050  
'19: 757 '18: 3,010  
'19: 4,217  
5. Genus Capsicum  
(0904.2 1.0000) '18: 0 
'19: 2,685  '18: 71,509  
'19: 78,437  '18: 1,795  
'19: - '18: 162,000  
'19: - 
Note 1. Annual average of exchange rate:  '18: W 1,100.30/$ , '19: W 1,165.65/$ . 
 2. National production of Genus Capsicum , Garlic  and Onions  in 2019 is not available.    
  G/STR/N/18/KOR  
 
- 11 - TABLE III  
STATE TRADING: KOREA AGRO -FISHERIES  & FOOD TRADE CORPORATION( aT) 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
(unit: mt)  
Description of product(s)  
(including HS number(s))  Domestic purchases by 
state trading enterprise  National  
Production  Domestic sales by state 
trading enterprise  National consumption  
1 2 3 4 5 
6. Garlic  
(0703.20.9000)  
(0712.90.1000)  '18: 49  
'19: 16,350  '18: 331,741  
'19: 387,671  '18: 7 
'19: - '18: 391,000  
'19: - 
7. Onions  
(0703.10.1000)  
(0712.20.0000)  '18: 6,133  
'19: 12,373  '18: 1,520,969  
'19: 1,594,450  '18: 9,917  
'19: - '18: 1,589,000  
'19: - 
8. Sesamum seeds  
(1207.40.0000)  '18: 33,900  
'19: 38,177  '18: 12,727  
'19: 12,986  '18: 36,816  
'19: 40,053  '18: 95,000  
'19: 101,500  
9. Potatoes  
(0701.90.0000)  '18: 4,431  
'19: 5,990  '18: 548,065  
'19: 630,140  '18: 2,894  
'19: 3,261  '18: 585,825  
'19: 659,397  
Note 1. Annual average of exchange rate:  '18: W 1,100.30/$ , '19: W 1,165.65/$ . 
 2. National production of Genus Capsicum , Garlic  and Onions  in 2019 is not available.  
 
__________  