FREE TRADE AGREEMENT BETWEEN THE REPUBLIC OF KOREA AND ISRAEL
(GOODS AND SERVICES)

QUESTIONS AND REPLIES

The following communication, dated 28 October 2025, is being circulated at the request of the delegations of the Republic of Korea and Israel.

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Question from Japan

1.1.  ANNEX 3-B - COMMITTEE ON OUTWARD PROCESSING ZONES ON THE KOREAN PENINSULA

Could you provide information, if any, on the operation and implementation of Annex 3-B following the entry into force of this FTA?

Reply from the Republic of Korea:

The Committee on Outward Processing Zones on the Korean Peninsula was established under the Joint Committee of this FTA, recognizing the importance of intra-Korean economic cooperation and the promotion of peace and prosperity on the Korean Peninsula. The main function of this committee is to identify geographical areas and the criteria for recognition as an Outward Processing Zone (OPZ) under this Agreement. This committee has not yet been convened. And as stipulated in the Agreement, the Committee will be operated in an appropriate manner through consultation between the Parties. Currently, no relevant consultations have taken place.

Questions from Thailand

1.2.  1. TRADE ENVIRONMENT - 1.2 Trade in services and investment

Based on the information provided under paragraph 1.3 page 6, trade in services between the two countries remains very limited, with Korea’s service exports to Israel amounting to less than USD 10,000 per year. Thailand would like to inquire whether the Government of the Republic of Korea has any measures or policies to promote service exports, such as the establishment of businesses within Israel or initiatives to attract Israeli nationals to utilize services in Korea.

Reply from the Republic of Korea:

Regarding service exports, while there are no policies specifically tailored for Israel, the Korean government is working to strengthen its policy framework so that service exports receive a level of support comparable to manufacturing exports. Key measures include financial assistance for small and medium-sized enterprises, improved provision of market data and regulatory information, the establishment of sector-specific export promotion strategies for promising service industries such as digital, healthcare, and content sectors, and an inter-ministerial and multi-agency support system to address on-site challenges. In addition, new trade indicators for knowledge-intensive services — including intellectual property royalties, information services, communication services, and related sectors — have been developed to complement traditional trade statistics.

Reply from Israel:

In regard to paragraph 1.3, on page 6, there is a discrepancy between the data in the factual presentation and the data provided by Israel’s Central Bureau of Statistics (CBS). This is likely due to the fact that CBS figures are expressed in thousands of USD. We will update the Secretariat in regard to this matter. According to recent data by the CBS, Israel’s services exports to Korea in 2024 amounted to USD 363 million, representing a growth of more than 30% since 2020. During the same period, Israeli services imports from Korea totalled USD 23 million, reflecting a 43% increase since 2020. It is important to note that CBS figures relate mainly to business services and do not include telecommunication, transportation and tourism services. In addition, both countries see strong potential in trade in services, particularly in software and R&D.

1.3.  3. PROVISIONS ON TRADE IN GOODS

On paragraph 3.1, page 9 illustrated that the provisions on National Treatment and Market Access shall be governed by the General Agreement on Tariffs and Trade (GATT) 1994, as incorporated into this agreement. Exceptions include the importation of non-Kosher meat by Israel. In this regard, Thailand hereby seek Israel's clarification on its import practices and regulatory framework pertaining to Kosher meat.

Reply from Israel:

While the Ministry of Economy and Industry and the Ministry of Agriculture and Food Security are involved in general import licensing, sanitary and veterinary supervision, enforcement of the kosher import ban falls principally under the Chief Rabbinate’s authority of Israel.

Israel's Meat and Meat Products Law, 1994, prohibits the import of non-kosher meat, including poultry and their products, such as beef and mutton. Under this framework, the Chief Rabbinate of Israel supervises kosher slaughter (shechita) for imported meat, and issues or recognizes the required kosher (kashrut) certification.

The import of meat and poultry products therefore must be accompanied by appropriate documentation certifying kosher slaughter and compliance with the law.

1.4.  3. PROVISIONS ON TRADE IN GOODS

Regarding 3.1 Import duties and charges, and quantitative restrictions, Thailand would like to seek clarification on the level of binding coverage of tariff commitments under the Republic of Korea – Israel Free Trade Agreement. Thailand understands that Korea has committed to tariff elimination on 91.5% of products and Israel on 95.4%. However, it is unclear whether the remaining tariff lines will be bound or excluded from tariff commitments under this FTA.

Reply from the Republic of Korea:

According to the Factual Presentation (based on HS 2022) prepared by the WTO Secretariat, the ROK’s rate of tariff elimination for products originating from Israel is 94.79% (in number of tariff lines). Most of the remaining tariff line of the ROK are bound by the base rate and other tariff-related commitments in this FTA. Only 16 rice-related items are excluded from all tariff-related commitments, including the base rate, under this Agreement.

Reply from Israel:

Of the remaining 408 tariff lines that remain dutiable, 389 are bound. Sixteen (16) tariff lines are subject to a reduction of either 15 percent or 25 percent from the MFN base rate as of the date of signature of the Agreement, while the remaining three (3) tariff lines are subject to preferential treatment under tariff rate quotas (TRQs).

1.5.  4. PROVISIONS ON TRADE IN SERVICES AND INVESTMENT

Based on the information provided under paragraph 4.23, the Republic of Korea continues to apply film quotas to protect its domestic film industry and has established co-production arrangements with certain partner countries, such as Israel, to promote collaborative creative works. Under the Free Trade Agreements (FTAs), does the Republic of Korea have co-production arrangements with other partner countries? Furthermore, what considerations or restrictions might affect the implementation of such policies?

Reply from the Republic of Korea:

Republic of Korea has ratified numerous audio-visual co-production agreements with partner countries either under or in relation to the FTA framework, including EU, China, India, Australia, and so forth. From an implementation perspective, specific requirements to be acknowledged as a co-produced work vary by agreement, but one of the most important things to consider when implementing an agreement is assessing the financial contribution of stakeholders, because relevant authorities might have different views on the calculation of the budget spent. Like other FTAs, Parties resolve the dispute through consultations and by mutual consent.

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