Telecommunications In Korea Essay Research Paper INTRODUCTIONTelecommunications — страница 8

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Requirements for Joint Venture Like any foreign investment in Korea, a foreign investor must obtain approval from or file a notification with the Ministry of Finance and the Foreign Capital Inducement Law. More specifically, foreign investment for those industrial sectors on the negative list or which are subject to local equity participation requirements need approval from the Ministry of Finance. For such approval, a foreign investor must submit a detailed business plan and a joint venture agreement. The business plan must state the marketing plan, the financial plan and other prescribed items. The joint venture agreement should provide the rights and obligations of each party to the joint venture. If the amount of investment is three million U.S. dollars or more, the joint

venture agreement will be reviewed by the Korean Fair Trade Commission to determine whether it contains any unfair provisions according to the Anti-monopoly and Fair Trade Law. The following terms will be regarded as unfair trade practices: “the joint venture company is unreasonably required to purchase raw materials, parts, equipment, related goods, etc., from the foreign investor or its designee; the joint venture company is prohibited from, or is required to obtain prior approval for exporting any product it manufactures to areas other than those were the foreign investor is engaged in ordinary sales activities or those where the foreign investor has granted exclusive sales rights to a third party; the joint venture company is required to export any product it manufactures

only through the foreign investor or its designee, except where the foreign investor or its designee assumes an obligation to accept such product at internationally reasonable prices and conditions at the appropriate time; and in light of the generally accepted practices in international agreements of this nature, the contractual conditions are unreasonably disadvantageous to the domestic investor (Jeong 6). The Korean Fair Trade Commission might regard as unfair such provisions where a foreign investor elects directors in excess of the equity ratio or a foreign investor has the tie-breaking vote in a 50/50 joint venture. The minimum amount of foreign investment is 50 million Korean won (approximately U.S. $60,000). With Ministry of Finance approval, a foreign investor can

incorporate a joint venture company in accordance with the Korean Commercial Code. A joint venture company establishing itself as a value added service provider must register with the Value Added Service Providers by satisfying several requirements under the Telecommunications Business Law. These requirements are as follows: “the financial requirement – the minimum capital is 50 million won;telecommunications facilities requirement – maintenance of certain major telecommunications facilities and satisfaction of the safety and reliability standards; and technical capability requirement – retention of a minimum of two technicians (Jeong 6). Along with an application form, the documentation for registration is limited to those to confirm the above. A registered Value Added

Service Provider must notify the MOC of standardized contracts with the customers. An interconnection with networks of Value Added Services’ required a notification to the MOC. Interconnection between a Value Added Service Provider’s network and a Network Service Provider’s network would be governed by a standardized contract of the Network Service Provider. Where no standardized contract of an Network Service Provider is available for the type of interconnection requested by a Value Service Provider, a special interconnection agreement may be made subject to the approval of the MOC. Furthermore, operating agreements between a registered Value Added Service Program in Korea and service providers in a foreign country are subject to MOC approval. Protection of Technology

Korea has a full range of intellectual property rights: patent, trade secrets, utility model, design, trademark, copyright on literary works and computer software and sui generis right to layout designs. Korea is also relatively effective in enforcing and protecting those rights in the unfortunate event that such rights are infringed in Korea. An invention that meets the industrial applicability, novelty, and the non-obviousness requirements can obtain a patent right for 15 years after the date of registration. Regarding certain medicines and agricultural and technical materials, the Korea Industrial Property Office (QUIP) may extend the term of the patent right for up to 20 years. A device that cannot meet the high level of creativeness needed for an invention is protected under