The COMMUNICATION FROM the
Ministry of Foreign Affairs
Ministry of Foreign Affairs says that 27 April 1994. April 1992 was in
Seoul signed an agreement between the Government the Czech and Slovak Federal
The Republic and the Government of the Republic of Korea for the promotion and reciprocal protection
Exchange of notes Ministry of Foreign Affairs of the Czech Republic of 18 November.
March 1994 and the Embassy of the Republic of Korea in Prague from 11 July.
April 1994, it was agreed that the agreement between the Government of the Czech and Slovak
The Federal Republic and the Government of the Republic of Korea for the promotion and mutual
protection of investment of 27 June. April 1992 shall be deemed concluded
between the Czech Republic and the Republic of Korea.
Parliament gave its assent to the agreement the United States and the President of the
the Republic has ratified it.
Agreement entered into force in accordance with the wording of article 12 para. 1
day 16. March 1995.
The Czech version of the agreement shall be published at the same time. In the English version, which is
for its interpretation of the applicable, can be consulted at the Ministry of foreign
Affairs and the Ministry of finance.
between the Government of the Czech and Slovak Federal Republic and the Government of Korea
Republic on the promotion and mutual protection of investments
Government of the Czech and Slovak Federal Republic and the Government of Korea
Republic (hereinafter referred to as "the Contracting Parties"),
Desiring to develop the economic cooperation of the two States on the basis
equality and mutual benefit,
in an effort to encourage and create favourable conditions for investments by investors
one State on the territory of the other State and
Noting that the promotion and reciprocal protection of investments in accordance with this
the agreement encourages entrepreneurial initiative in this area,
have agreed upon the following:
The definition of the
For the purposes of this agreement:
1. The term "investment" refers to each assets invested
an investor of one Contracting Party in the territory of the other Contracting Party in accordance
with the laws of the other Contracting Party and shall, in particular, but not
a) movable and immovable property, as well as other rights in rem, such as
mortgages, pledges, guarantees and similar rights;
(b)) shares, deposits and bonds by the company or any other forms of participation
the companies and the Government issued securities;
(c) the claim or claims) cash on any transactions originating in
the economic value associated with an investment;
(d)) intellectual property rights, including copyright,
trade marks, patents, industrial designs, techniques,
know-how, trade secrets, trade names and goodwill;
e) any right arising from law or the contract, and any
a licence or permit issued under the Act, including concessions for exploration,
mining, cultivation or exploitation of natural resources.
Any change of the form in which the values are invested does not affect the
their reviews as an investment.
2. the term "investor" means any natural or legal person,
that invests in the territory of the other Contracting Party.
and) the notion of "natural person" means any natural person who is a national
citizenship of one Contracting Party in accordance with its legal regulations;
b) "legal person" means with respect to any Contracting Party
any company registered or established in accordance with its
jurisdiction and recognised as a legal person.
3. The term "returns" means the amounts yielded from investments and includes
in particular, but not exclusively, profits, interest, capital gains, shares,
dividends, license and other fees.
4. The term "territory" means, with respect to any Contracting Party territory and
coastal zone over which the State exercises sovereignty, sovereign
the rights or jurisdiction in accordance with international law.
The promotion and protection of investments
1. Each Contracting Party shall encourage and create favourable conditions
for investors of the other Contracting Party in its territory and investing will be
to admit such investments.
2. investments of investors of one Contracting Party will always have ensured
the proper and fair treatment and will enjoy full protection and
safety on the territory of the other Contracting Party.
National treatment and MFN clause
1. each Contracting Party shall in its territory for investments and returns
investors of the other Contracting Party treatment, which is the proper and fair
and no less favourable than that accorded to investments or the proceeds of their
its own investors or investments of investors of any proceeds or
of a third State.
2. each Contracting Party shall accord to investors of the other party within its territory
the parties, regarding the management, maintenance, use, recovery or disposal
with their investments, treatment which is the proper and equitable and not less
favorable, than to its own investors or to investors
of any third State.
3. The provisions of paragraphs 1 and 2 of this article shall be interpreted so that the
one contracting party undertake to provide investors of the other Contracting
by such treatment, benefits or privileges, which may be one of the Contracting
page provide by:
and) any of the Customs Union or free trade zone or common external
the customs zone or monetary Union or a similar international agreements or other
forms of regional cooperation, to which each party involved
or you can participate in, or
(b)) any international agreement or arrangement relating wholly or
Compensation for damage or loss
1. If the investments of investors of any Contracting Party suffer damage
as a result of war, armed conflict, a State of emergency, riot,
insurrection, riot or other similar events on the territory of the other Contracting
the Parties shall provide the Contracting Party in whose territory such prejudice
investment has occurred, the investor of the other Contracting Party treatment, as regards
about restitution, damages, compensation or other settlement, no less
favourable than accorded to the other Contracting Party to its own
investors or to investors of any third State.
2. Notwithstanding paragraph 1 of this article, the investors of one Contracting
the parties, who in any event referred to in the preceding
paragraph suffered damage or loss to the territory of the other Contracting Party
) and seize their assets, by the armed forces or by an
the other Contracting Party,
(b)) the destruction of their property by the armed forces or by the official authorities of the other
the Contracting Parties, which was not due to combat action or not
invoked when the necessity of the situation,
will be given fair and reasonable compensation for any damage or loss of
suffered during capturing or as a result of destruction of property. The resulting
payments will be freely transferable without delay.
1. investments of investors of any Contracting Party shall not be nationalized,
expropriated or subjected to a measure having the same effect as
nationalization or expropriation (hereinafter referred to as "expropriation") on the territory of the other
the Contracting Parties, with the exception of public interest. Expropriation shall be carried out
According to the law, on a non-discriminatory basis, and will be accompanied by a
the provisions on the payment of the immediate, adequate and effective compensation. Such
compensation equal to the market value of the expropriated investment immediately
before the expropriation or before the intended expropriation became public
known, including interest from the date of the expropriation, will be carried out without
the delay will be feasible and freely transferable.
2. The investor has the right to request an urgent review of its
of the case and of valuation of its investments by a court or other independent
authority of a Contracting Party in accordance with the principles contained in this article.
3. The provisions of paragraph 1 of this article shall also apply to cases where the
a Contracting Party expropriates the assets of a company that has been registered
or established in accordance with the applicable laws and regulations in any part of its
own territory, and in which investors of the other Contracting Party own shares.
1. the Contracting Parties shall ensure that the transfer payments related to investments or
revenue. Transfers will be made in freely convertible currency, no
unnecessary constraints and delays. Such transfers shall include, but not
and) capital and additional amounts to maintain or increase the investment;
(b)) gains, interest, dividends and other cash receipts;
(c) the amount of the repayment of loans);
d) license or other fees;
e) proceeds from the sale or liquidation of the investment;
f) earnings of individuals under the law of the Contracting Party where it is
2. for the purposes of this agreement, will be used in the official courses valid for common
the transaction to the date of the transfer, unless otherwise agreed.
Assignment of rights
If one Contracting Party or its designated agency makes a payment
your own investor on the basis of assurances given by the
relation to an investment in the territory of the other Contracting Party, the other Contracting
and each right or assignment) of the right of the investor to a Contracting Party
or her authorised agency that provided the payment, whether for referral
According to the law or on the basis of legal action in this country, as well as
(b)) that the Contracting Party or its designated agency that provided the payment
It is by way of subrogation shall be entitled to exercise the rights and claims soar
of the investor and to assume the obligations related to the investment.
Settlement of investment disputes between a Contracting Party and an investor of the other Contracting
1. any dispute which may arise between an investor of one Contracting
the parties and the other Contracting Party in connection with an investment in the territory of the
the other party will be subject to negotiations between the parties in dispute.
2. If a dispute between an investor of one Contracting Party and other Contracting
the party will last even after the expiration of three months, an investor will be entitled to
submit the dispute either:
and the International Centre for) settlement of investment disputes, taking into account
the applicable provisions of the Convention on the settlement of investment disputes between States and
citizens of other States, opened for signature in Washington, D. C. 18. March
1965 in the case that the two parties are parties to this Convention; or
(b)) the arbitrator or to the International Court of arbitration set up by ad hoc,
established under the arbitration rules of the United Nations Commission
for international commercial law. Parties in a dispute may, in writing,
agree on amendments to these rules. The arbitration award shall be final and
binding for both sides in the dispute.
The resolution of disputes between the Contracting Parties
1. disputes between the Contracting Parties concerning the interpretation or application of this
Agreement may be, if possible, resolved through consultations or
2. If the dispute cannot be resolved within three months, will be on the
the request of either contracting party be submitted to an arbitral tribunal in accordance with the
the provisions of this article.
3. the arbitral tribunal shall be established for each individual case
in the following way. Each Contracting Party shall designate one arbitrator in
within two months of receipt of the request for arbitration. These two
the arbitrator then selects a citizen of a third State, that will be with the consent of both
of the parties appointed President of the Court (hereinafter referred to as "the Chairman").
The Chairman shall be appointed within three months from the date of the appointment of the two arbitrators.
4. If, in one of the periods referred to in paragraph 3 of this article has not been
performed necessary appointment may be requested the President of the International
the Court of Justice to make the appointment. If the President of the citizen of any
the Contracting Parties, or for any other reason unable to exercise this mandate, the
on the implementation of the appointment of the Vice-President of the International Court of requested
the Court. If it is also Vice-Chair of the citizen of a Contracting Party, or
cannot execute this mandate, will be on the implementation of the necessary appointment
asked the oldest Member of the International Court of Justice, who is not a citizen
any Contracting Party.
5. the Arbitration Tribunal shall adopt its decisions by a majority vote. Such
the decision is binding. Each Contracting Party shall pay the expenses of their
arbitrator and its participation in the arbitration proceedings; expenses of the Chairman and other
the costs will be borne by the parties equally. The Court of arbitration
shall determine its own rules rules.
The use of other provisions and specific commitments
1. in the event that there is some question dealt with at the same time this agreement and
another international agreement, the two Contracting Parties are parties, nothing
in this agreement does not prevent to any party or any of its
the investor who owns the investments on the territory of the other Contracting Party,
any provisions that are more favourable for him.
2. If the treatment granted by either party to investors
the other Contracting Party in accordance with its legal regulations or other
special contractual provisions is more favourable than that
provided for in this agreement, will be used this more favourable treatment.
The applicability of this agreement
The provisions of this Agreement shall apply to investments made by investors
one Contracting Party in the territory of the other Contracting Party 1. January 1950.
Entry into force, duration and termination
1. each Contracting Party shall notify the other party in fulfilment of the constitutional
the requirements for the entry into force of this agreement. This agreement shall enter
force 30 days after the day of the later notification.
2. This agreement shall remain in force for a period of ten years and its validity
It will continue until one year before the expiry of the initial period or
any following period one contracting party notifies the
the other Contracting Party of its intention to terminate this agreement.
3. For investments made prior to the termination of this Agreement shall remain
the provisions of this agreement is effective for a period of 20 years from the date of termination.
In witness whereof the undersigned, duly authorised thereto, have signed this agreement.
Done at Seoul on 27. April 1992 in duplicate, each in the Czech,
the Korean and English languages, all texts being equally
force. In case of divergence of interpretation the English text will be decisive.
For the Czech and Slovak Federal Republic:
Vladimír Dlouhý in r.
the Minister for economic
For the Republic of Korea:
Lee Sang Ock in r.
Minister of Foreign Affairs