U.S. firms in a number of sectors continue to report that the combination of current tariffs and value-added taxes for agricultural and manufactured products are often sufficient to either keep imports out of the Korean market or to make their prices uncompetitive. The current posted tariff rate for all dried seafood products is 20%, however, other impediments to market entry may force this higher.
The Korean government has revised its Alien Land Acquisition Act to permit foreign-invested firms to purchase land for business purposes, including staff housing. The United States remains concerned, however, that other laws provide disincentives for foreign investment by placing overly strict limits on the purchase, use and sale of land by foreigners. In some situations, Korean land-use laws could result in heavy taxes on unused land and possible sale of land at below-market prices if legal requirements are not met within a specified period.
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