1. Vice Minister of Foreign Affairs and Trade Kim Hang-kyung and German Ambassador to the Republic of 
Korea Dr. Hubertus von Morr exchanged instruments of ratification in the name of two heads of state for the 
“Agreement between the Republic of Korea and the Federal Republic of Germany for the Avoidance of 
Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital” and 
“Agreement between the Republic of Korea and the Federal Republic of Germany on Social Security” at the 
Ministry of Foreign Affairs and Trade on October 30, 2002.  The ROK-Germany Agreement for the Avoidance 
of Double Taxation and the Agreement on Social Security will come into effect on October 31, 2002, and 
January 1, 2003, respectively.

 
2. The signing of the ROK-Germany Agreement for the Avoidance of Double Taxation is expected to contribute 
to the strengthening of economic exchanges between the ROK and Germany by encouraging the transfer of 
capital and investment through the avoidance of double taxation on incomes related to capital and 
investment.  The ROK and Germany had concluded an agreement on avoidance of double taxation in 1976; 
however, a new agreement was concluded in consideration of changes in the economic environment of the 
two countries.  The new agreement is expected to further contribute to the promotion of bilateral investment 
by decreasing the scope of assessment.

 
3. Until now, the Korean workers dispatched to Germany have been paying social security bills to both 
Germany and Korea; however, following the conclusion of the ROK-Germany Agreement on Social Security, 
they are now obliged to pay social security bill to Korea only, which is expected to significantly reduce the 
burden on Korean companies overseas.

                                                               Spokesperson of MOFAT

* unofficial translation