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4.1 Barriers to investment access

So far, preschool education institutions, elementary schools, middle schools, universities, postgraduate academies and special schools, which are regarded as non-profit judicial entities by ROK, have not been allowed to make overseas remittance freely or to be engaged in foreign investment.

4.2 Barriers to investment operation

4.2.1 Dual payment of unemployment insurance

In accordance with Korean laws, enterprises must pay employment insurance (namely, unemployment insurance) for their employees. The Korean side requires Chinese-funded enterprises pay insurance for Chinese employees as well as Korean employees. However, Chinese employees who are mostly provisionally dispatched overseas have paid required unemployment insurance in China. The dual payment of unemployment insurance will increase financial burden on Chinese- funded enterprises in ROK while Chinese employees are unable to enjoy the benefits from employment insurance paid in ROK.

4.2.2 Reimbursement of national annuity

In accordance with Korean laws, foreign enterprises in ROK must pay national annuity (namely, endowment insurance) for all employees. However, Chinese employees in Chinese-funded enterprises have paid endowment insurance in China.

To settle this problem, the Korean and Chinese sides signed PRC and ROK Provisional Measures Agreement on Mutual Exemption from Endowment Insurance Payment that took effect on May 23, 2003. In accordance with the agreement, Chinese employees working for Chinese-funded companies, offices and other organizations as well as self-employed business persons are exempt from paying national annuity after submitting relevant documents and the Korean side ought to reimburse the national annuity paid by Chinese employees before May 23, 2003. So far, the Korean side has reimbursed a portion of annuity paid by Chinese- funded enterprises during the period from January 2003 to May 23, 2003, but failed to reimburse the national annuity paid before 2003. The Chinese side hopes the Korean side will reimburse the national annuity paid by Chinese-funded enterprises before 2003 as soon as possible in accordance with the agreement.