Items Issues Recommendations
Postal Postal products that compete with the private sector (e.g.: EMS) are priced below profitable rates. They enjoy cross subsidies from profits derived from monopoly services. Korea Post does not practice activity based accounting.
Border practices are different for Postal services. Some services are paid for by other government departments and rules, fees and penalties are lower or non-existent.
The EUCCK committee supports a free market but government and the private sector should compete on a level playing field.

Postal products should have the same treatment as private competitors.
Licensing and Certification

The issuance of customs broker licenses is subject to conditions relating to ownership of certain assets in Korea (e.g.: warehouses and trucks);
Certification processes for ¡®Comprehensive Logistics Providers¡¯ are clearly designed to include only local logistic providers
Licenses and number plates for the provision of Domestic Express services cannot be obtained from government because of a perception that supply exceeds demand.

This is outdated and should be amended to allow companies to obtain licenses based on skills and service quality rather than on asset ownership.
It is not possible to obtain certification without heavy investment in facilities. The committee feels this should be changed to reflect international practice
We feel that this should be changed to ensure the best quality of service through ¡°survival of the fittest¡±.
Discrimination between types of cargo within the Government ¡¯s
Definition of ¡®Essential Services.¡¯
During 2007 Korean passenger airline companies successfully lobbied the Government to have air cargo carried by them included within the definition of ¡®essential services¡¯. This discriminates against cargo carried on non-passenger flights. The carriage of any cargo by air should be classed as ¡°essential service¡±. This will allow continuous support for Korea¡¯s urgent imports and exports.
Supply chain Security (including the Authorized Economic Operator Program)
The application of the World Customs Organisation¡¯s 2005 SAFE Framework is relatively advanced in the EU and US however it is still in its infancy in the Asia Pacific Region where only Australia, New Zealand and Singapore have initiated SAFE Framework-based supply chain security initiatives including AEO-type programs. And with effect from 1st April Japan will enact new AEO legislation
Interested firms and industry bodies need to start engaging with the Korean government to ensure that the principle of securing and facilitating trade is understood and adhered to as early in the policy / regulation making process as possible
Pallets We have pointed out in the past the differences in the pallet sizes used in Europe and Korea, respectively USA. During the last ISO meeting a ballot decided that each area will remain with the standards set up by them individually. For Korea that means to keep the current standard of 1.1 m x 1.1. m which is the same standard as Japan and China. The European standard pallet size will become more and more important for Korea. Shortly there will be negotiations about a FTA between Korea and the EU. Standardization of packing units will greatly contribute to a active exchange and thereby lowering the cost structure for the future.
The EUCCK committee still feels that it would benefit Korea to change to an international size pallet.?
Tugboat Free Competition The Government confirmed that in the ports of Ulsan and Pyongtek the tug boat allocation was shifted from the turn-based systems to the free competition system.? The EUCCK advocates free competition in other main Korean ports as well and ask the government for soonest implementation in line with other international ports and practices.