Memorandum on the South
Korea-United States Insurance Market Agreement
August 14, 1986
for the United States Trade Representative
Determination Under Section 301 of the Trade Act of
our mutual benefit, the Governments of the United States and the Republic of
Korea (Korea) have reached an agreement resolving the investigation initiated
under Section 302(c) of the Trade Act of 1974, as amended (19 U.S.C. 2412(c)),
of Korea's prior prohibitions and restrictions on access to its insurance
market. This agreement represents the constructive benefits of cooperation between
our Governments. Therefore, pursuant to Section 301 of the Trade Act, I have
determined to accept the agreement described below as an appropriate and
feasible action to resolve this investigation and therefore to terminate the
investigation. I direct the United States Trade Representative (USTR) to notify
the Government of Korea of my approval of the agreement and to take any actions
necessary to implement and monitor it.
September 16, 1985, in response to my
request, the USTR initiated an investigation pursuant to Section 302(c) of the
Trade Act of 1974 into the Korean Government's policy of prohibiting or
restricting the activities in Korea of foreign insurance
firms. These restrictions prevented U.S. firms from participating
fully in Korea's compulsory fire
insurance, life insurance, and reinsurance markets. Pursuant to Section 301 of
the Trade Act of 1974, I have determined that these restrictions were
unjustifiable, unreasonable, or discriminatory and a burden or restriction on U.S. commerce.
of the Governments of Korea and the United States held a series of
consultations from November 1985 through May 1986 concerning access to the
Korean insurance market. As a result of these consultations, we reached an
agreement regarding actions that Korea will take to improve
our firms' access to its insurance market. Korea has agreed to license
qualified U.S. insurance firms to
underwrite both life and non-life insurance in Korea. Furthermore, Korean
insurance authorities will review all applications in a timely manner and
provide written notice of their decisions on the qualifications of U.S. firms. A consultative
mechanism will ensure discussion of matters relating to implementation of this
agreement and other issues related to the Korean insurance market. This
agreement accomplishes our goal of obtaining increased access for U.S. firms to Korea's insurance market.
determination shall be published in the Federal Register.
with the Office of the Federal Register, , August
The memorandum was printed in the ``Federal Register'' of August 18.