SITE INDEX  
E N F O R C E M E N T   AND   C O M P L I A N C E
  SEARCH  
   

Click here for the Trade Guide

Korea International Value-Added Network Services Agreement

OFFICE OF THE UNITED STATES

TRADE REPRESENTATIVE

EXECUTIVE OFFICE OF THE PRESIDENT

WASHINGTON

20506

June 26, 1991

Director General Lee In-Hak

Telecommunications Policy Bureau

Ministry of Communications

Republic of Korea

Seoul, 110-77

Dear Director General Lee:

Thank you for your letter of June 26, 1991 informing the United States Government (USG) of the decision by the Government of the Republic of Korea (ROKG) to allow the provision of international value-added network services (IVANS) on July 1, 1991. I look forward to seeing the initiation of IVAN services between our two countries.

I would like to confirm our mutual understanding regarding the Services To Be Permitted attached to your letter of June 26, 1991. I would also like to confirm that the USG looks forward to further discussions to resolve telecommunications issues of concern to the United States Government in the near future.

Sincerely,

[signature]

Sandra Kristoff

Assistant

U.S. Trade Representative

RECORD OF UNDERSTANDING

BETWEEN THE REPUBLIC OF KOREA AND

THE UNITED STATES OF AMERICA

Pursuant to the exchange of letters of June 26, 1991 concerning the decision by the

Government of the Republic of Korea (ROKG) to allow the provision of international value-added network services (IVANS) on July 1, 1991, the United States Government (USG) and the Government of the Republic of Korea (ROKG) have reached the following mutual understandings:

the ROKG will implement its commitments regarding telecommunications in accordance with the commitments made by the ROKG in the Records of Understanding (ROUs) of February 1990 and February 1991 between our two countries;

the ROKG will not interpret or implement the IVANS regime in a manner that derogates from the terms of the above-mentioned ROUs. The exchange of letters shall be interpreted only to expand commitments in those ROUs;

the two countries will continue discussions on a range of outstanding issues, including IVANS and issues addressed in our February 1990 and February 1991 ROUs, with a view to resolving differences by February 1992;

the United States will on June 26, 1991 send to the ROKG a letter confirming its view of this Record of Understanding.

MINISTRY OF COMMUNICATIONS

REPUBLIC OF KOREA

June 26, 1991

Ms. Sandra Kristoff

Assistant United States Trade Representative

U.S.A.

Dear Ms. Kristoff:

The Government of the Republic of Korea desires to facilitate the development of international telecommunications services between Korea and the Untied States. In furtherance of this objective, the Korean government has decided to allow the provision of international value-added network ("IVAN") services on July 1, 1991 under existing Korean laws and regulations, including Korea's Public Telecommunications Business Law.

In this regard, the Government of the Republic of Korea proposes that this letter and your letter acknowledging receipt of my letter shall be considered a "special arrangement" pursuant to Article 9 of the International Telecommunication Regulations, regarding the provision of IVAN services between the two countries. The services to be permitted are described in the Attachment.

I will note your cooperation in this matter.

Sincerely,

[signature]

Lee In-hak

Director General

Telecommunication Policy Bureau

Attachment on Services To Be Permitted

MINISTRY OF COMMUNICATIONS

REPUBLIC OF KOREA

ATTACHMENT

Services To Be Permitted

A. Services authorized to be provided by IVAN service providers are all value-added services, as defined in Paragraph B of this Section. Basic services (which include basic voice, basic telex, basic facsimile and simple resale of leased circuits), except data transmission services as provided for in paragraph C below, are excluded from the scope of the authorized services.

B. For purposes of this attachment, "value-added services" are defined as services offered over transmission facilities of network carriers which employ at least one of the following computer processing applications:

1. conversion of content, code, protocol or similar aspects of a subscriber's transmitted information (conversions performed solely for the benefit of the network shall not be included within the scope of this definition);

2. provision of additional, different or restructured information; and

3. computer processing involving a subscriber's interaction with stored information (a service involving the storage and automatic delivery of information to the recipient will be allowed whenever the services includes one of the processing applications described in subparagraphs (1) or (2) of this paragraph, or whenever the storage and delivery function provides a service of value to the sender or recipient).

C. Service providers of the value-added services defined in Paragraph B are allowed to engage in simple data transmission services (SDTS). SDTS is the transmission of data without change in form or content. One example of SDTS is packet-switched data communication.

D. A service that combines value-added and basic services functions is considered to be value-added when the service provider offers the value- added functions as part of a service offering, even though such value-added functions may not be required on a particular call. However, with regard to value-added voice services or value-added facsimile services, a value-added function will be required on a call-by-call basis.

E. Some examples of Value-Added Services:

1. Data communications services involving the following functions:

(a) code and/or format conversion (for example, as listed in Table 1 of

CCITT Recommendation X.408 or its equivalent);

(b) protocol conversion, in addition to that between X.25 and X.75 in

packet switching (with regard to packet switching, service providers

who provide protocol conversions may also transmit messages without

such conversions as part of their service to users); or

(c) store and forward.

2. Facsimile communications that involve store-and-forward or at least one

of the functions listed in subparagraph E.1 (a) or (b) of Paragraph E.

F. Other examples of the value-added services are database, data processing, E-mail, message handling service (MHS), electronic data exchange (EDI), value-added facsimile service, voice mail and any other service that employs the computer processing applications described in paragraph B.

DEPUTY UNITED STATES TRADE REPRESENTATIVE

EXECUTIVE OFFICE OF THE PRESIDENT

WASHINGTON, D.C. 20506

June 26, 1991

His Excellency Yoon Dong Yoon

Vice Minister

Ministry of Communications

Seoul, 110-77

Republic of Korea

Dear Vice Minister Yoon:

Dear Vice Minister Yoon:

Pursuant to my reply to your letter of June 26, 1991 (and our June 1991 Record of Understanding) concerning the decision by the Government of the Republic of Korea (ROKG) to allow the provision of international value-added services (IVANS) on July 1, 1991, I would like to reconfirm that the United States continues to expect that the ROKG will implement its commitments regarding telecommunications market access, including with respect to IVANS, in accordance with the commitments made by the ROKG in the Records of Understanding (ROUs) of February 1990 and February 1991 between our two countries. I would also like to confirm that our letters of June 26, 1991 concerning IVANS and the telecommunications services to be permitted on July 1, 1991 shall be interpreted only to expand, and in no sense to retreat from, any commitments in those ROUs.

In connection with the implementation of USG obligations under the Omnibus Trade and Competitiveness Act of 1988 (1988 Trade Act), we continue to expect and rely on the timely implementation of all obligations under the ROUs referred to above. We also confirm the need to reach agreements by February 1992 concerning, among other issues, the terms and conditions of effective and mutually advantageous market entry into Korea (including with respect to the scope of competitive service provision such as IVANS, domestic IVANS, Special Service Provider (SSP) services, etc., registration, the notification of interconnection and operating agreements, self- and shared-use communications, standardized contracts, equipment attachment, investment, and competition safeguards) in order to avoid action by the USG under the telecommunications provisions of the 1988 Trade Act.

Very truly yours,

[signature]

S. Linn Williams


TANC offers these agreements electronically as a public service for general reference. Every effort has been made to ensure that the text presented is complete and accurate. However, copies needed for legal purposes should be obtained from official archives maintained by the appropriate agency.