Following the Hong Kong Ministerial Declaration in 2004 that encouraged developing countries to provide commercially meaningful market access to the Least Developed Countries (LDCs) under the Duty-Free Quota-Free (DFQF) Programme, Republic of Korea implemented its non-reciprocal preferential tariff treatment for LDCs. Its DFQF scheme for the LDCs was effective from 1 January 2012.
In order to be eligible for duty free benefits in Korea under DFQF, export goods from the LDCs will have to comply with the following rules of origin:
a) Wholly produced or obtained in the exporting country; or
b) Finally manufactured or processed in the exporting country by using products, as input, which originate from countries other than the exporting country, or the origin of which is not determined.
In the case of inputs from non-originating country, the local value addition portion may not be less than 40 per cent of the resulting goods.