Benefits by Industry/Sector - Financial Services
A Model Agreement in Financial Services
The Financial Services Chapter of the United States- South Korea Free Trade Agreement (“KORUS FTA”) is a groundbreaking achievement, providing more extensive provisions related to financial services than ever before included in a U.S. FTA.”
United States Trade Representative
KORUS FTA: New Opportunities for Financial Services
Cited as a model for future trade agreements, the KORUS FTA further opens Korea's market to U.S. financial services companies - including banking, insurance, and brokerage services - and could pave the way for access to the growing Asian market.
- Guarantees the right to full American ownership of a financial institution in Korea, including the establishment of branch banks, insurance companies, and asset managers.
- Allows U.S. companies to supply financial services on a cross-border basis, including portfolio management services for investment funds and international transit insurance.
- Allows U.S. companies to engage in new financial services unless those services are specifically prohibited by Korean law.
- Increases transparency by requiring advance notice of proposed regulations and adequate opportunities for companies to comment, and requires all administrative guidance to be in writing and made public.
Korea is the world's eighth largest insurance market, with a total premium value of more than $65 billion, and would be the largest insurance and security market subject to a U.S. FTA.
Financial services are the third largest sector of the U.S. economy, and Korea is already a significant market for U.S. financial services companies. The FTA would increase opportunity for U.S. firms to grow in Korea and support high paying jobs in America.
KORUS FTA - A Common Sense, Job Creating Trade Partnership