Outward Processing Scheme in the Free Trade Agreements of South Korea

South Korea has entered into some Free Trade Agreements (FTAs) that contain special provisions of outward processing provisions. With the aid of the outward processing provisions, the goods manufactured or processed in the Kaesong Industrial Complex (KIC) are classified as originating from South Korea for the purpose of duty free treatment under the applicable agreements. This paper summarized the contents of the rules of origin and analyzed some outward processing provisions stipulated in major FTAs in Korea. It also suggested some alternatives and options in the outward processing provisions that the enterprises in the KIC can take advantage of. Efforts and support of public agencies are required to promote the use of FTAs