On the ratification of the Agreement on the Promotion and Mutual Protection of Investments between the Government of the Republic of Kazakhstan and the Government of the Republic of Korea

Home / RLA / On the ratification of the Agreement on the Promotion and Mutual Protection of Investments between the Government of the Republic of Kazakhstan and the Government of the Republic of Korea

Law of the Republic of Kazakhstan dated November 22, 1996 No. 45-I

To ratify the Agreement on the Promotion and Mutual Protection of Investments between the Government of the Republic of Kazakhstan and Signed by the Government of the Republic of Korea in Almaty on March 20, 1996.

President

Republic of Kazakhstan

AGREEMENT ON THE PROMOTION AND MUTUAL PROTECTION OF INVESTMENTS BETWEEN

BY THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN AND THE GOVERNMENT OF THE REPUBLIC OF

Korea

The Government of the Republic of Kazakhstan and the Government of the Republic of Korea (hereinafter referred to as the "Contracting Parties"), desiring to strengthen economic cooperation for the mutual benefit of both States, Assuming to create favorable conditions for the implementation of investments by investors of one State in the territory of another States and Recognizing that the promotion and protection of investments based on this Agreement stimulates business initiatives in this area, We have agreed as follows:

ARTICLE 1

CONCEPTS

For the purposes of this Agreement:

(1) the term "investment" means any type of assets invested by investors of one Contracting Party in the territory of the other Contracting Party and includes, in particular, although not exclusively: (a) movable and immovable property, as well as any related property rights, such as: mortgages, the right to seize property for debts or collateral; (b) shares, shares, bonds and debentures and any other form of participation in the company or business business activities of the joint venture; (c) monetary claims or performance claims having economically beneficial value in relation to investments; (d) intellectual property rights, including copyrights, trademarks, patents, industrial designs, technical processes, know-how, trade secrets and trade names and "goodwill"; (e) any a right granted by law or under a contract, including the right to explore, extract, process, and use natural resources. Any change in the form in which assets are invested does not affect their investment nature. (2) the term "investor" means, with respect to any of the Contracting Parties: (a) an individual who is a national of that Contracting Party in accordance with its legislation; (b) any corporations, companies, firms, enterprises, organizations and associations that have the rights of a legal entity or are established in accordance with the legislation in force on territories of this Contracting Party; provided that an individual, corporation, company, firm, enterprise, organization or association has the right, in accordance with the legislation of this Contracting Party, to make investments in the territory of the Other Contracting Party. (3) The term "income" means the amounts received as a result of investments and, in particular, although not exclusively, includes profits, interest, capital gains, dividends, royalties or fees. (4) the term "territory" means the territory of each Contracting Party, as well as those maritime areas, including the Exclusive Economic Zone, the continental shelf and areas adjacent to the territorial waters of each Contracting Party, over which Each Contracting Party exercises or will exercise sovereign rights, jurisdiction and other rights in accordance with international law, including The 1982 United Nations Convention on the Law of the Sea.

ARTICLE 2 PROMOTION AND PROTECTION OF INVESTMENTS (1) Each Contracting Party shall encourage and create favorable conditions for investors of the other Contracting Party to make investments in its territory and allow such investments in accordance with its legislation. (2) Investments of investors of each Contracting Party shall be provided with fair and equal treatment at all times and enjoy full protection and security in the territory of the other Contracting Party. (3) In no case may either Contracting Party cause damage by applying unjustified or discriminatory measures to the management, management, use, use and disposal of investments in its territory by investors of the other Contracting Party. (4) Each Contracting Party shall comply with any obligation it has assumed in accordance with this Agreement in respect of investments in its territory made by investors of the other Contracting Party.

ARTICLE 3 TREATMENT OF INVESTMENTS (1) Neither Contracting Party may allow in its territory the granting of less favourable treatment to investments or incomes of the other Contracting Party than that which it grants to investments or incomes of its own investors or investors of a third State. (2) None of the Contracting Parties may allow, in its territory, the granting to investors of the other Contracting Party, with regard to the management of these investors of their investments, work with them, their use, use and disposal, of a regime less favorable than that which it grants to its own investors or to investors of any third party. States.  

ARTICLE 4 COMPENSATION FOR DAMAGE OR LOSSES (1) To investors of one of the Contracting Parties whose investments in the territory of the other Contracting Party have suffered losses as a result of any armed conflict, state of emergency or civil unrest in the territory of the latter, the latter shall be granted, with regard to restitution, compensation for losses, compensation or other settlement, a non- less favorable than the one it provides to its own investors or to investors from any third country. Related payments must be adequate, executed immediately, and freely transferable. (2) Without prejudice to paragraph (1) of this Article, investors of one of the Contracting Parties who, in any of the situations referred to in this paragraph, have suffered losses in the territory of the other Contracting Party as a result of: (a) the requisition of their property by its security forces or authorities, or (b) the destruction of their property by its security forces structures or authorities that were not caused by the fighting or were not required by necessity in this situation are provided with restitution or adequate compensation, no less favorable, than restitution or compensation provided under the same circumstances to investors of another Contracting Party or any third State. Related payments must be freely transferable and executed immediately.

ARTICLE 5 EXPROPRIATION (1) Investments of investors of either Contracting Party shall not be subject to nationalization, expropriation or measures the result of which is equivalent to nationalization or expropriation (hereinafter referred to as "expropriation") in the territory of the other Contracting Party, except for measures aimed at public interest. Expropriation is carried out in accordance with due process of law, on a non-discriminatory basis, and is accompanied by immediate adequate and effective compensation. Such compensation is equal to the amount of the actual value of the expropriated investments immediately prior to expropriation or before the fact of impending expropriation is brought to the attention of a wide range of persons, regardless of which of the events occurred earlier, is paid within two months starting from the date of expropriation, after which interest is accrued at the usual commercial rate until the payment date and its payment must be actually achievable and the amount of the payment must be freely transferable. (2) An investor whose interests have been harmed has the right, in accordance with the legislation of the expropriating Contracting Party, to have his or her case immediately reviewed by a judicial or other independent authority of that Contracting Party and to have his or her investment valued in accordance with the principles set out in paragraph (1) of this Article. (3) In the event that a Contracting Party expropriates the assets of a company that has the rights of a legal entity or is established in accordance with its laws and regulations and in which investors of the other Contracting Party own shares or other forms of participation, the provisions of paragraphs (1) and (2) of this Article shall apply.

ARTICLE 6 REPATRIATION OF INVESTMENTS AND INCOME (1) Each Contracting Party guarantees to investors of the other Contracting Party the immediate transfer from its territory in any freely convertible currency: (a) income received from investments; (b) proceeds from the sale or total or partial liquidation of investments made by an investor of the other Contracting Party; (c) funds for repayment of loans related to investments; (d) income of citizens of the other Contracting Party subject to the provisions of the legislation of the Contracting Party where the investments were made; (e) initial capital and additional amounts necessary to increase investments. The procedure referred to in this Article should be fair and non-discriminatory. (2) For the purposes of this Agreement, the exchange rate is the exchange rate applicable at the time of transfer in accordance with the currency regulations in force in the territory of the Contracting Party where the investments were made.

ARTICLE 7 EXCEPTIONS The provisions of Articles 3 and 4 of this Agreement shall not be interpreted in such a way as to oblige one of the Contracting Parties to grant investors of the other Contracting Party the advantages of any regime, preferential or special rights that may be granted by the former Contracting Party by virtue of: (a) any existing or future customs union, or free trade area, or common external tariff area, or monetary union, or similar international agreement or other forms of regional cooperation, of which either of the Contracting Parties is or may become a member; or (b) any international agreement or treaty relating wholly or mostly to taxation.

ARTICLE 8 SUBROGATION (1) If one of the Contracting Parties or an authority designated by it makes payments in favor of an investor of this Contracting Party for damages provided in respect of investments in the territory of the other Contracting Party, the latter recognizes the transfer to the former Contracting Party or its designated authority, by law or through a legitimate transaction, of all the rights and claims of the investor to whom the compensation was paid in full. (2) A Contracting Party or an authority designated by it has the right to exercise to the same extent any rights and claims that an investor would have the right to exercise.

(3) In the case of the subrogation defined in paragraphs (1) and (2) According to this Article, the investor will not make any claims unless he is authorized by the Contracting Party or any of its authorities.

ARTICLE 9 SETTLEMENT OF DISPUTES RELATED TO INVESTMENTS BETWEEN ONE

ONE OF THE CONTRACTING PARTIES AND THE INVESTOR OF THE OTHER

OF THE CONTRACTING PARTY

(1) Any dispute between one of the Contracting Parties and an investor of the other Contracting Party, including expropriation, should, as far as possible, be regulated.:

(a) by mutual agreement through negotiations between the disputing parties, or

(b) by applying any other local means other than those provided for in paragraph (2) of this Articles available in accordance with the laws and regulations of the Contracting Party in whose territory the investments were made.

(2) Any such dispute that has not been settled in accordance with paragraph (1) of this Article within a period of six (6) months from the date of written notification of the claim may, with the consent of the Parties, be submitted for resolution, in accordance with the legislation of the Contracting Party that authorized the investment, to the competent judicial authority. of this Contracting Party. (3) If the Parties disagree on the dispute settlement procedure provided for in paragraph (2) of this Article, the dispute shall be submitted to international arbitration at the request of either Party. The procedure for arbitration proceedings is as follows: (a) at the International Center for Settlement of Disputes Related to Investments, if the investor's Contracting Party and the other Contracting Party are Participants Agreements on the Settlement of Investment-related Disputes between States and Citizens of Other States, 1965; or (b) in the Subsidiary Body of the International Center for Settlement of Investment-Related Disputes on Performance Conciliation Procedures, Arbitration Proceedings and Investigations; or (c) in an ad hoc arbitration panel at the request of any of the disputing parties in accordance with the Rules of Arbitration of the United Nations Commission on International Trade Law, 1976.

ARTICLE 10 SETTLEMENT OF DISPUTES BETWEEN THE CONTRACTING PARTIES (1) Disputes between the Contracting Parties concerning the interpretation or application of this Agreement should, as far as possible, be settled through diplomatic channels. (2) If a dispute between the Contracting Parties cannot be settled within six (6) months, it shall, at the request of either Contracting Party, be referred to an Arbitration Panel. (3) The Arbitration Panel is appointed in each individual case as follows. Within two (2) months from the date of receipt of the request for arbitration, each Contracting Party shall appoint one member of the Panel. The appointed members then elect a citizen of a third Country, who, with the approval of both Contracting Parties, is appointed Chairman of the Board (hereinafter referred to as the "Chairman") - the Chairman is appointed within two (2) months from the date of appointment of the other two members. (4) If the necessary appointments have not been made during the period referred to in paragraph (3) of this Article, either Contracting Party may, in the absence of other agreements, invite the President of the International Court of Justice to make such appointments. If the Chairman is a national of one of the Contracting Parties or he is unable to perform the above-mentioned task for other reasons, the Vice-Chairman is invited to make the necessary appointments. If the Vice-President is a national of one of the Contracting Parties or he is also unable to perform the above-mentioned task, then the next oldest member of the International Court of Justice, who is not a citizen of one of the Contracting Parties, is invited to perform the necessary appointments. (5) The Arbitration Board makes its decisions by a majority vote. Such a decision is binding on both Contracting Parties. Each Contracting Party shall bear the costs associated with the work of its own arbitrator and its representation in the arbitration process; the costs associated with the work of the Chairman and the remaining costs in equal parts shall be borne by both Contracting Parties. The Arbitration Board determines its own working procedure.

ARTICLE 11 APPLICATION OF THE AGREEMENT This Agreement applies to all investments, regardless of whether they were made before or after its entry into force.

ARTICLE 12 APPLICATION OF OTHER RULES (1) If the issue is simultaneously determined by this Agreement and another international agreement to which both Contracting Parties are parties, none of the provisions of this Agreement shall prevent an investor of one of the Contracting Parties who owns investments in the territory of the other Contracting Party from using any of the rules to his advantage, depending on which of them are the most favorable in his case. (2) If the treatment provided by one of the Contracting Parties to the investors of the Other Contracting Party in accordance with its laws and regulations is more favorable than the treatment provided in accordance with this Agreement, the most favorable treatment shall be provided.

ARTICLE 13 CONSULTATIONS Either Contracting Party may invite the other Party to hold consultations on any issue concerning the interpretation or application of this Agreement. The other Party kindly accepts such an offer and provides appropriate opportunities for such consultations.

ARTICLE 14 ENTRY INTO FORCE, DURATION, TERMINATION AND AMENDMENT (1) This Agreement shall enter into force on the date on which the Contracting Parties notify each other of the fulfillment of all legal requirements for its entry into force. (2) This Agreement remains in force for a period of fifteen (15) years. Thereafter, it shall remain in force until the expiration of six (6) months after the date of written notification by either Contracting Party to the other Contracting Party of the termination of the Agreement. (3) With respect to investments made during the term of the Agreement, its provisions shall remain in force for a period of ten (10) years from the date of termination. (4) This Agreement is entered into by mutual agreement

Amendments may be made by the Contracting Parties.

IN WITNESS WHEREOF, the undersigned, duly authorized for this purpose by their respective Governments, have signed this Agreement.

DONE on March 20, 1996 in two copies in Kazakh,

Korean and English, and all three texts have

the same power. In case of divergence of interpretation, the English text

it has great power.

FOR THE GOVERNMENT FOR THE GOVERNMENT

REPUBLIC OF KAZAKHSTAN REPUBLIC OF KOREA

President

Republic of Kazakhstan

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