Legal Issues on Shipbuilding Financing in The WTO System

학위논문 (석사)-- 서울대학교 대학원 : 국제학과(국제통상전공), 2017. 2. 안덕근.The purpose of this thesis is to determine the applicability of the Panel Ruling in 2005 for addressing issues raised by the EU and Japan on the DSME Normalization Plan in 2015. Moreover, it will show that Section 11 of Korea-EU FTA includes crucial provisions which may be interpreted to mean that the measures of DSME could be found to include prohibited subsidies. The DSME Normalization Plan announced by KDB on October 29th, 2015 was publicly criticized as prohibited subsidies by EU and Japan in Working Party 6 of OECD. Even though the liquidity injection had to be repeated in 2016, the government of Korea assured that its measures are consistent with international regulations. The confidence of GOK derived from their victories in WTO dispute in 2002 through 2005, Korea-Commercial Vessels. However, as the Korea-EU FTA went into force on 1 July 2011, the measures taken by KDB to rescue DSME from its near-insolvency can be seen to be in breach of the FTA. The EU attempted to expand the meaning of prohibited subsidies by explicitly indicating that certain measures which are responsible for covering debts or liabilities of certain enterprises and loans and guarantees, cash grants, capital injections below market prices or tax exemptions are prohibited. Those provisions reflect the EU negotiators intent to secure its shipbuilding industry by preventing the GOK from providing liquidation supports to Korean shipyards in the future. As the international forum for dispute settlement is no longer limited to the WTO Dispute Settlement Understandings, no one can assume that GOK will win again in the international litigations on measures for DSME.CHAPTER I. INTRODUCTION 1 CHAPTER II. HISTORY OF INTERNATIONAL SHIPBUILDING INDUSTRY AND ITS SUBSIDY ISSUES 2 2.1. SHIPBUILDING INDUSTRY SINCE THE 1950S 2 2.2 INTERNATIONAL NEGOTIATION TO LIMIT SUBSIDIES TO SHIPYARDS 5 2.2.1. The OECD Arrangement 5 2.2.2 The OECD Sector Understanding of ships and WP6 6 2.2.3. The Agreement of Subsidies and Countervailing Duties of WTO 7 CHAPTER III. SUBSIDY ISSUES OF SHIPBUILDING INDUSTRY OF KOREA 9 3.1. KOREA-COMMERCIAL VESSELS (2002) 9 3.2. THE DSME NORMALIZATION PLAN 10 3.2.1. Financial Status of DSME 10 3.2.2. DSME in the Shipbuilding Industry 11 3.2.3. The DSME Normalization Plan (2015) 14 CHAPTER IV. KOREA-COMMERCIAL VESSELS DISPUTE IN WTO 16 4.1. ISSUES RAISED IN KOREA-COMMERCIAL VESSELS (2002) 16 4.2. ARGUMENTS AND FINDINGS OF KOREA-COMMERCIAL VESSELS 16 4.2.1. As Such Claim: WTO-inconsistency of KEXIM Legal Regime 17 a. Financial Contributions 17 b. Public body 18 c. Export Contingency 18 d. Mandatory/discretionary distinction 19 4.2.2. As Applied Claim: WTO-inconsistency of Individual measures 20 a. WTO-inconsistency of APRGs and PSLs 20 b. WTO-inconsistency of Debt restructuring packages and tax concessions 21 CHAPTER Ⅴ. SUBSIDY ISSUES OF KOREA-EU FTA 23 a. Definition of subsidies 24 b. Enforcement measure 26 CHAPTER Ⅵ. CONCLUSION 29 References 31Maste