(1) Reasons for Proposal

The Amendment prescribes requirements for the refusal or revocation of the designation of businesses that are unfit to perform the role of a specialized trading company, thereby aiming to prevent damage to well-intentioned businesses.

(2) Major Provisions

A. Newly insert provisions on the refusal or revocation of the designation of specialized trading companies (Article 12-2, paragraph 5 newly inserted)

While the current Enforcement Decree of the Foreign Trade Act prescribes requirements for the designation of specialized trading companies, such as export performance, it does not prescribe that such a designation may be revoked or refused in the event that a business is unfit to perform the role of a specialized trading company.

Accordingly, this partial amendment to the Enforcement Decree of the Foreign Trade Act allows the refusal or revocation of the designation of a specialized trading company where the business has an unsatisfactory credit rating or is otherwise unfit to perform the role of a specialized trading company, thereby aiming to prevent damage to well-intentioned businesses.