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For The Government Of The Republic Of Latvia And The Government Of The Republic Of Korea Agreement On Investment Promotion And Protection

Original Language Title: Par Latvijas Republikas valdības un Korejas Republikas valdības līgumu par ieguldījumu veicināšanu un aizsardzību

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The Saeima has adopted and the President promulgated the following laws: For the Government of the Republic of Latvia and the Government of the Republic of Korea agreement on investment promotion and protection, article 1. 1996 October 23 in Seoul signed by the Government of the Republic of Latvia and the Government of the Republic of Korea agreement on investment promotion and protection (hereinafter contract) with this law is adopted and approved. 2. article. The law shall enter into force on the date of its promulgation. To put the contract in law Latvian and English. 3. article. The agreement shall enter into force for the period specified in article 12 and in order, and on the Ministry of Foreign Affairs notified the newspaper "journal". The law adopted by the Parliament in 1996 12 December. The President g. Ulmanis in Riga on 24 December 1996, in the Government of the Republic of Latvia and the Government of the Republic of Korea agreement on investment promotion and protection between the Government of the Republic of Latvia and the Government of the Republic of Korea (hereinafter referred to as the "Contracting Parties"), desiring to intensify economic activities in benefit of both countries, in the interest of being determined to create and develop favourable conditions for investors of one Contracting Party for investment in the territory of the other Contracting Party, conscious that a given contract appropriate investment promotion and reciprocal protection will encourage economic initiative in this area, have agreed as follows: article 1 1. Explanations of terms the term "investment" means every kind of asset that investors of one Contracting Party are invested in the territory of the other Contracting Party in accordance with the latest laws and regulations to which especially, but not only: a) movable and immovable property as well as any other rights in rem for example, mortgages, property lien, pledge and other similar rights; (b) the company shares), shares, unsecured promissory notes or any other form of participation in a company; (c) claims to money) or any kind of performance of the contract, which has an economic value; d) intellectual property rights, including copyrights, trademarks, patents, industrial designs, technical processes, know-how, trade secrets, symbols and goodwill; (e)) any rights which approved the law, contract, or any license or permission law, including concessions for acquisition of natural resources, cultivation or use; f) things that under a leasing contract is transferred to the lessee's use. Any change in the form in which assets are invested or reinvested shall not affect their character as investments. 2. The term "investor" means any one of the Contracting Parties, natural or legal persons who invest in the territory of the other Contracting Party. a) "natural person" is any person who is a national of a Contracting Party in accordance with its laws; b) "legal person" in relation to one or other Contracting Party shall mean any company, organization, Corporation or association established or constituted in accordance with the law. 3. The term "earnings" means the amounts derived from the investment, and in particular, but not exclusively, profits, interest, capital gains, dividends, royalties and fees. 4. The term "territory" means the territory of the Contracting Party, including its territorial waters, as well as water areas bordering the territorial sea, to which the Contracting Party is or will be a sovereign rights or jurisdiction in accordance with international law. 5. The term ' freely convertible currency ' means a currency that is widely used to make payments for international transactions and free to change the key in international exchange markets. Article 2 promotion and protection of investments 1 each Contracting Party shall promote in its territory and create favourable conditions for investors of the other Contracting Party to invest and adopt these investments in accordance with its laws and regulations. 2. Each Contracting Party, investments of investors in the territory of the other Contracting Party applies always honest and fair treatment and have guaranteed adequate protection and security. 3. None of the parties in any way interferes with the investors of the other Contracting Party to investment activities, management, maintenance, use or movement in its territory with the unjustified or discriminatory measures. 4. Each Contracting Party shall observe any obligation it may have entered into under this agreement in respect of the other Contracting Party, investments of investors in its territory. Article 3 treatment of Investments 1. each Contracting Party shall apply in its territory the fair and just treatment to investors of the other Contracting Party of the contribution and the income that is no less favourable than the most favourable one that it suits your investment and income of investors or investors of any third State investments and income. 2. Each Contracting Party by the other Contracting Party in its territory by investors of the fair and just treatment for their contribution to the management, maintenance, use, or transfer, which is no less favourable than the most favourable from those which it applied of its own investors or investors of any third State. 3.1 and 2 of this article, the provisions of the paragraph is not explained as obliging one Contracting Party the obligation to guarantee the investors of the other contracting party benefits arising from any mode, benefits, or privileges which the first Contracting Party to grant, through: (a) contracts that create) a Customs Union, a free trade area or monetary Union, for which the parties are or can become one or the other Contracting Party; (b)) of any international treaty or agreement which wholly or mainly apply to taxation. Article 4 compensation 1. If the investors of one Contracting Party for investment losses are suffered due to war, armed conflict, State of national emergency, insurrection, riot, public peace and order problems or similar events in the territory of the other Contracting Party, the other Contracting Party shall be subject to such arrangements for restitution, damages, compensation or otherwise settlement, which will not be less favourable than that which the other Contracting Party shall apply the its own investors or investors of any third State. Such payments must be such that they can immediately convert a freely convertible currency. 2. Without prejudice to paragraph 1 of this article, the terms of those investors of one Contracting Party who are in any of the cases referred to in this paragraph, suffers a loss in the territory of the other Contracting Party on the grounds that: (a)) of the other Contracting Party, the armed forces or of the competent national authorities have atsavinājuš their property, (b)) of the other Contracting Party, the armed forces or the national authorities have implemented the destruction of their property, which was not due to the pattern of combat or situation created a need , is to be granted restitution or fair and appropriate compensation for the losses, which would not be less favourable than that in the same circumstances, the application of its own investors or investors of any third State. Such payments must be such that they can immediately convert a freely convertible currency. Article 5 expropriation 1. an investor of one Contracting Party for investments in the territory of the other Contracting Party are not nacionalizējam, ekspropriējam or nationalization or expropriation subject to equivalent measures (hereinafter referred to as "expropriation"), except when it is done in the public interest. Expropriation is implemented validly, without discrimination, and at the same time it is implemented the provisions on immediate, adequate and effective compensation. This compensation must correspond to the objective market value in expropriated investment immediately before the expropriation was on or before the time when were openly announced the impending expropriation according to which of these two measures was implemented first, and it is to be included in the rate after a suitable commercial interest for the time since the date of expropriation until the date of payment, it shall be payable immediately, it must be effectively realizable and freely transferable in freely convertible currency. As expropriation and compensation in the case of each Contracting Party to investors of the other Contracting Party should be treated less favourably than against their national investors or investors of any third State. 2. The victim the investor has the right to do that, in accordance with the expropriation of the legislation of the Contracting Party, that Contracting Party's judicial or other independent national authority shall immediately examine the matter and she appreciated his contribution in accordance with the principles defined in this article. 3. If one of the Contracting Parties ekspropri such assets of the company, which founded or established by the in force on its territory legislation and regulations and that the other Contracting Parties by investors holding the share capital or debt securities, the provisions of this article. Article 6 transfers 1. the Contracting Parties shall guarantee the investors of the other Contracting Party and to their investments the income transfers free. In this category in particular, but not limited to: (a)), the capital of income profits, dividends, interest, royalties and fees, or any other income arising from the investment; b) income, generated, or partially or completely eliminating the investment; c) loans related to investments, repay; (d) Contracting Parties) any natural person who is permitted to work in connection with investments in the territory of the other Contracting Party, income; (e) additional funds) needed to maintain existing investment and development; f) features, used for the management of the investments of the other Contracting Party or any third State territory; g) refund arising from articles 4 and 5. 2. All payments under this contract must be made in freely convertible currency without restriction or undue delay by the exchange rate that is appropriate for the business or that is determined in accordance with the official exchange rate in force on the day of the transaction and that is the most attractive to investors. Article 7 the transfer of rights 1. If one Contracting Party or its authorised institution shall pay its investors under a guarantee given by it in respect of an investment in the territory of the other Contracting Party, the contracting party acknowledges that: (a) the rights of the investor) of any claims or take over, either by law or on the basis of the conducted legal business, the first Contracting Party or its authorized institution, as well as their that (b)) the first Contracting Party or its authorized body taking over the rights of the investor is entitled to exercise the rights of investors and bringing it claims. 2. Take the rights or claims must not exceed the original investors rights and claims. Article 8 investment-related disputes that have arisen between one Contracting Party and an investor of the other Contracting Party of 1. Any disputes which may arise between an investor of one Contracting Party and other Contracting Party, including expropriation or nationalization of investments, Contracting Parties, wherever possible, be trying to tackle adverse negotiation. 2. the local law enforcement, which is determined in accordance with one of the Contracting Party in whose territory the investment is made, laws and regulations, must be available to investors of the other Contracting Party, on the basis of a regime that is no less favourable than that which applies to that Contracting Party for local investors or investors of any third State. 3. If the dispute cannot be settled within six (6) months from the date on which either party has begun to discuss it, it is necessary to submit to the international investment-related dispute resolution Centre (ICSID), established according to the 18 March 1965 Washington Convention "on their investment-related disputes arising between States or nationals of other States", at the request of either party given that the Republic of Latvia has become a party to this Convention. Until that point, the dispute shall be submitted to conciliation or arbitration in accordance with a procedure agreed bilaterally on the basis of the given Convention or special additional procedure. 4. international investment-related disputes (ICSID) of the Centre shall be final and bind the two parties to the dispute. Each Contracting Party shall ensure the recognition and implementation of this decision in accordance with its relevant laws and regulations. Article 9 settlement of disputes the parties 1. both Contracting Parties, disputes concerning the interpretation and application of this agreement should be addressed amicably through diplomatic channels. 2. If within six months of the dispute in this way is not possible, be resolved by one or the other Contracting Party, be submitted to arbitration pursuant to the provisions of this article. 3. the composition of the arbitral tribunal in respect of each individual case are as follows. Two months after the receipt of the request for arbitration, each Contracting Party shall appoint one member of the Court. These two members of the Court and then choose a third country national who will be appointed as the President of the Court of Justice (hereinafter referred to as "the Chairman") provided that the consent of both Contracting Parties. The Chairman is to be appointed within three months after both of the other members of the Court of the appointment date. 4. If paragraph 3 of this article in the given time period within the required appointments are not made, then, may turn to the United Nations the President of the International Court of Justice with the request to make the assignments. If the President is of one or other of the Contracting Parties or, in case other obstacles for the execution of that function, then should contact the Vice President with a request to make the necessary appointments. If the Vice President is also a citizen of a Contracting Party if they have other obstacles for the execution of that function, then the request to make the necessary assignments must come to its next higher ranking members of the UN International Court of Justice, who is not a citizen of a Contracting Party. 5. the arbitral tribunal shall render its decisions by majority vote. Such a decision shall have binding effect. Each Contracting Party shall bear its own costs and the members of the Tribunal of his representation costs of arbitration proceedings; the President's costs and other costs equally borne by the two Contracting Parties. The Arbitration Board may, however, decide that most of the costs are borne by one of the Contracting Parties, and this decision is binding on both Contracting Parties. The Tribunal shall establish its own procedural rules. Article 10 special provisions and Other obligations 1. If a matter is regulated at both the elbow and other such international agreement in which the two Contracting Parties are parties, then nothing in this agreement may not prevent a Contracting Party or any of its investors who have investments in the territory of the other Contracting Party, to reap the benefits of his case favourable rules. 2. If this mode where one Contracting Party appropriate investors of the other Contracting Party in accordance with its laws, or other specific provisions of the contract, is more favourable than that applicable under this Treaty, then apply the most advantageous one. 3. Contracting Parties have to respect any other obligations that it has entered into in respect of the other Contracting Party, to investments in its territory. 11. Article 1 of the application of the agreement to give the contract provisions are applicable to investments made before or after the entry into force of this agreement, but does not apply to any with any investment-related disputes that are settled before its entry into force. Article 12 entry into force, duration and termination (1) this Treaty shall enter into force thirty (30) days after the date on which the Contracting Parties notify each other that all the legal requirements, enabling the entry into force of this agreement have been met. 2. this Agreement shall remain in force for ten years and then continue to have effect for the next ten-year periods, unless one of the Contracting Parties the year before the initial or subsequent expiry of the period notified in writing to the other Contracting Party of its desire to terminate this agreement. 3. the rules laid down in article 1 to 11, remain in force for twenty years from the termination date to those investments that are made before the end of this agreement. THIS, the undersigned, duly authorised thereto, have signed this agreement. Concluded in Seoul, 1996 October 23 in two originals in the Latvian, Korean, and English languages, with each text being equally authentic. Any different interpretation of the case, the determinant is the text in English.

The Republic of Latvia, the Republic of Korea Government on behalf of the Government of the agreement between the Government of the Republic of Latvia and the Government of the Republic of Korea for the Promotion and Protection of investments eciprocal the Government of the Republic of Latvia and the Government of the Republic of Korea (hereinafter referred to as the "Contracting Parties"), to intensify economic cooperation (menu Rngton Line4) to the mutual benefit of both countries Intending to create and maintain, favourabl condition for investments of investors of one Contracting Party in the territory of the other Contracting Party, and conscious that the promotion and reciprocal protection of investments, according to the present agreement, the business of stimulat initiative in this field, have agreed as follows: article 1 Definition For the purpose of this agreement: 1. The term "investments" shall in every kind of asset compris invested by an investor of one Contracting Party in the territory of the other Contracting Party in accordanc with the laws and regulations of the latter and shall include, in particular, though not exclusively:/a/movable and immovabl property as well as any other property rights in rem such as mortgage, lien, pledge, and similar rights; /b/, stock and debentur shares of companies or any other form of participation in a company; claims to money or/c/to any performance under contract having an economic value; /d/intellectual property rights, including copyrights, trade marks, patents, industrial design, technical processes, know-how, trade secrets, trade names and goodwill; /e/any right conferred by law or under the provisions of the contract and any licenses and permit of the law, including pursuan the concession to search for, extract, or exploit cultivat natural resources; /f/good that, under a leasing contract with is placed at the disposal of a lesse. Any alteration of the form in which assets are invested or reinvested shall not be affec their character as investment. 2. The term "investor" shall mean any natural or legal person of one Contracting Party who invest in the territory of the other Contracting Party: the term/a/ "natural person" shall mean any natural person having the nationality of either Contracting Party in accordanc with it law. /b/the term "legal person" shall mean with respect to either Contracting Party, any companies, organization, corporation or association incorporated or constitued in accordanc with it law. 3. The term "returns" shall mean the United Nations yielded by non investment and in particular, though not exclusively, includes profits, interest, capital gains, dividends, or fees to royalt. 4. The term "territory" shall mean the territory of a Contracting Party including the territorial sea, as well as those maritime areas adjacent to the outer limit of the territorial sea over which a Contracting Party exercises sovereign rights or will exercise jurisdiction or in accordanc with international law. 5. The term "freely convertible currency" means the currency that is widely used to make payments for international transactions and widely exchanged in the principal international exchange markets. Article 2 Promotion and Protection of investments 1. Each Contracting Party shall create a favourabl encourag and conditions in its territory for investments of investors of the other Contracting Party and shall be admi such investments in accordanc with its laws and regulations. 2. Investments of investors of either Contracting Party shall at all times be accorded fair and equitable treatment and shall enjoy full protection and security in the territory of the other Contracting Party. 3. no Contracting party shall in any way ither impair unreasonabl or discriminatory measure of by the operation, management, maintenance, use, or disposal of enjoymen investments in its territory by investors of the other Contracting Party. 4. Each Contracting Party shall observe any obligation it may have entered into with this agreement consistently with regards to investments in its territory by investors of the other Contracting Party of the. Article 3 treatment of investments 1. Each Contracting Party shall in its territory accord to investments and returns of investors of the other Contracting Party treatment which is fair and equitable and not less than that which it favourabl accord to investments and returns of its own investors or their investments and return of investors of any third State whichever is more favourabl. 2. Each Contracting Party shall in its territory accord investors of the other Contracting Party, as regards management, maintenance, use, or disposal of their enjoymen investment, a treatment which is fair and equitable and not less than that which it favourabl accord to its own investors or to investors of any third State, whichever is more favourabl. 3. The provision of paragraph (1) and (2) of this article shall not be construed so as to comp one Contracting Party to extend to the investors of the other the benefit of any treatment, preference or privilege which may be extended by the former Contracting Party by virtue of agreements establishing customs/a/: unions, free trade areas or monetary union to which either of the Contracting Parties is or may become a party; /b/any international agreement relating wholly or mainly to or through their taxation. Article 4 Compensation for Loss 1. When investments by investors of either Contracting Party suffer the loss of their wars, armed conflict Owings, a State of national emergency, revolt, insurrections, riot or other similar events in the territory of the other Contracting Party, they shall be accorded by the latter Contracting Party the treatment, as regards restitution, indemnification, compensation or other settlement, no less than a favourabl that which the latter Contracting Party to its own investors accord or the investor of any third State. Resulting payments shall be freely transferabl in a freely convertible currency without delay. 2. Without prejudice to paragraph (1) of this article, the Contracting Party of the investor, one who in any of the events referred to in that paragraph suffer loss in the territory of the other Contracting Party resulting from:/a/requisitioning of their property by force or its authorities, the destruction of their property by/b/it forces or authorities which was not caused in combat action or was not required by the cessity of the situation , shall be accorded restitution or compensation from the just and a favourabl adequat less than that would be accorded under the same to an investor of circumstanc of the other Contracting Party or to an investor of any third State. Resulting payments shall be freely transferabl in a freely convertible currency without delay. Article 5 Expropriation 1. Investments of investors of either Contracting Party shall not be expropriated, nationalised or subjected to measure having effect equivalent to the nationalisation or expropriation (hereinafter referred to as "expropriation") in the territory of the other Contracting Party except for a public purpose. The expropriation shall be carried out under due process of law, on a non-discriminatory basis and shall be accompanied by provision for the payment of prompt, and effective compensation adequat. Such compensation shall amount to the fair market value of the expropriated investment immediately before the expropriation or impending expropriation becam before public knowledge, whichever is the earlier, shall include interest at the applicable commercial rate from the date of expropriation until the date of payment and shall be made without delay, be effectively realizabl the undu and be freely transferabl in a freely convertible currency. Expropriation and compensation, in both treatment not less than a favourabl that which the Contracting Party accord to its own investors or to investors of any third State shall be accorded. 2. The investor affected shall have a right, under the law of the Contracting Party making the expropriation, to prompt review, by a judicial or other independent authority of that Contracting Party, of its case and of the valuation of its investment in accordanc with the principles set out in this article. 3. Where a Contracting Party expropriat the assets of a company which is incorporated or constituted under the law and its regulations, and in which investors of the other Contracting Party own shares or participat or debentur, the provision of this article shall be applied. Article 6 Each Contracting Party 1 transfers shall guarantee to investors of the other Contracting Party the free transfer of their investments and returns. Such transfers shall include in particular, though not exclusively:/a/net profit, capital gains, dividends, interest, royalt, fees and any other current income accruing from investments; /b/is accruing from the sale proceed or total or partial liquidation of the investments; /c/funds in repaymen of loans related to investments; /d/earnings of nationals of the other Contracting Party who are allowed to work in connection with the investments in its territory; /e/ additional funds not cessary for the maintenance or development of the existing investments; /f/in spen for the non management of the investment in the territory of the other Contracting Party or a third State; /g/pursuan to compensation articles 4 and 5.2. All transfers under this Agreement shall be made in a freely convertible currency, without restriction and delay of the undu, at the exchange rate which is effective for the current transactions or determined in accordanc with the official rate of Exchange in force on the date of transfer, whichever is more favourabl to investors. Article 8 Subrogation If a Contracting Party 1 or its designated agency makes a payment to its own investors under a guarantee it has accorded in respect of an investment in the territory of the other Contracting Party, the latter Contracting Party shall recognize:/a/the assignment, whethers under the law or to a legal transaction in pursuan that country, of any right or claim by the investor to the former Contracting Party or its designated agency , as well as, the/b/that former Contracting Party or its designated agency is entitled by virtue of subrogation to exercise the rights and enforce the claims of that investor. 2. The subrogated rights or claims shall not exceeds 100 the original rights or claims of the investors. Article 8 settlement of investment Dispute between a Contracting Party and of an Investor of the Other Contracting Party 1. Any dispute which may «arise between an investor of one Contracting Party and the other Contracting Party including nationalization of investments or expropriation shall, as far as possible, be settled by the parties to the dispute in an amicabl way. 2. The local remedies under the laws and regulations of one Contracting Party in the territory of which the investment has been made with available for investors of the other Contacting Party on the basis of treatment from less than that accorded the favourabl investments of its own investors or investors of any third State, whichever is more favourabl to investors. 3. If the dispute cannot be settled within six (6) months from the date on which the dispute has been raised by either party, it shall be submitted upon request of either of the parties to the International Centre for settlement of investment Dispute (ICSID), established by the Washington Convention of 18 March 1965 on the settlement of investment Dispute between the State and the National of other States in the event of the Republic of Latvia to become a Party to this Convention. Until that moment the dispute shall be submitted to Acas or arbitration procedure to be mutually agreed upon on the basis of the Convention or Additional Facility. 4. The awards made by the ICSID shall be final and binding on the parties to the dispute. Each Contracting Party shall ensur that recognition and enforcement of the award in accordanc with its relevant laws and regulations. Article 9 settlement of the Dispute between the Contracting Parties of the Dispute between 1 the Contracting Parties concerning the interpretation or application of this Agreement shall be settled amicably through diplomatic channels. 2. If the dispute cannot be settled within of the six (6) months, it shall upon the request of either Contracting Party, be submitted to the UN Tribunal in accordanc Cas with the provision of this article. 3. The Tribunal shall be constituted for each Cas individual case in the following way. Within two (2) months of the receipt of the request for arbitration, each Contracting Party shall be appoin one member of the Tribunal. These two members shall then select a national of a third State who on approval of the two Contracting Parties shall be appointed Chairman of the Tribunal (hereinafter referred to as the "Chairman"). The Chairman shall be appointed within three (3) months from the date of appointment of the other two members. 4. If within the periods specified in paragraph (3) of this article the cessary appointments have not been made, a request may be made to the President of the International Court of Justice to make the appointments. If he happens to be a national of either Contracting Party, or if he is otherwise prevented from discharging the said function, the Vice-President shall be invited the President to make the appointments. If the Vice-President also happens to be a national of either Contracting Party or is prevented from discharging the said function, the member of the International Court of Justice next in seniority who is not a national of either Contracting Party shall be invited to make the appointments. 5. The Tribunal shall reach its decision Cas by a majority of votes. Such decision shall be binding. Each Contracting Party shall bear the cost of its own arbitrator and its representation in the CAs proceedings; the cost of the Chairman and the remaining costs shall be borne in equal parts by both Contracting Parties. The Cas Tribunal may, however, decide that a higher proportion of the costs shall be borne by one of the two Contracting Parties shall be binding and this award on both Contracting Parties. The Cas Tribunal shall it will determin own procedure. Article 10 Application of Other rules and Special Commitment 1. Where a matter is governed simultaneously both by this agreement and by another international agreement to which both Contracting Parties are parties, nothing in this Agreement shall prevent either Contracting Party or any of its investors who own investments in the territory of the other Contracting Party from taking advantage of whichever rules with more favourabl to his case. 2. If the treatment to be accorded by one Contracting Party to investments of investors of the other Contracting Party in accordanc with its laws and regulations or other specific provision of the contract is more than a favourabl that accorded by this agreement, the more the treatment shall be accorded favourabl. 3. Either Contracting Party shall observe any other obligation it may have entered into with regad to investments in its territory by investors of the other Contracting Party. Article 11 Application of the agreement this Agreement shall apply to investments made before or after whethers its entry into force, but shall not apply to any dispute concerning investments which was settled before its entry into force. Article 12 Entry into force, Duration and Termination 1. This agreement shall enter into force thirty (30) days after the date when the Contracting Party notify each other that all the legal requirements for its entry into force have been fulfilled. 2. This agreement shall remain in force for a period of ten (10) years and shall continue to be in force thereafter for further periods of ten (10) years, unless one year before the expiry of the initial or any subsequent period, either Contracting Party to the other in the notifu writing of its intention to terminate this agreement. 3. In respect of investments made prior to the termination of this agreement, the provision of article 1 to 11 of this Agreement shall remain in force for a further period of twenty (20) years from the date of the termination. In WITNESS WHEREOF, the undersigned duly authorized the theret have signed this agreement. Done in duplicate at Seoul on the 23rd day of October in the,1996 Latvian, Korean and English languages, all texts being equally authentic. In case of any divergenc of interpretation, the English text shall prevails.

For the Government For the Government of the Republic of Latvia of the Republic of Korea