FOREIGN TRADE ACT

Article 1(Purpose) #

The purpose of this Act is to contribute to the growth of the national economy by promoting foreign trade, establishing a fair trade system, maintaining international balance of payments, and expanding commerce.

Article 2(Definitions) #

The terms used in this Act are defined as follows: <Amended on Jan. 21, 2014; Feb. 4, 2020>

1. The term "trade" means the exportation and importation of those falling under any of the following items (hereinafter referred to as "goods, etc."):

a. Goods;

b. Services prescribed by Presidential Decree;

c. Intangible goods in an electronic form prescribed by Presidential Decree;

2. The term "goods" means movables, which exclude those of the following items:

a. Means of payment as defined in the Foreign Exchange Transactions Act;

b. Securities as defined in the Foreign Exchange Transactions Act;

c. Documents that embody any of the claims defined in the Foreign Exchange Transactions Act;

3. The term "trader" means any person who wholly or partially delegates or conducts acts for the exportation and importation of goods, etc., such as a person who engages in exportation or importation, a person to whom a foreign importer or exporter delegates activities relating to exportation and importation, or a person who delegates activities relating to exportation and importation;

4. The term "export contract between governments" means an export contract that an agency exclusively responsible for export contracts between governments under Article 32-3(1) concludes with a foreign government to export items, etc. (excluding defense industry materials, etc. under Article 2(1)1 of the Defense Industry Development and Support Act ) for value to the foreign government as a contracting party on behalf of, or jointly with, a domestic company, in accordance with a procedure prescribed by Presidential Decree, at the request of the foreign government.

(Principle of free and fair trade)