Agreement between the Government of the Republic of Korea and the Government of the Lao People's Democratic Republic for the Promotion and Protection of Investments
大韩民国政府和老挝人民民主共和国政府关于促进和保护投资协定
ສັນຍາລະຫວ່າງລັດຖະບານແຫ່ງສາທາລະນະລັດເກົາຫຼີ ແລະ ລັດຖະບານແຫ່ງສາທາລະນະລັດ ປະຊາທິປະໄຕ ປະຊາຊົນລາວ ວ່າດ້ວຍການສົ່ງເສີມ ແລະ ຄຸ້ມຄອງການລົງທຶນ
Summary
Core protections include national treatment and most-favored-nation treatment, ensuring that covered investments receive treatment no less favorable than that accorded to domestic or third-party investments in like circumstances. Expropriation is permitted only for a public purpose, on a non-discriminatory basis, under due process of law, and with prompt, adequate, and effective compensation. The Agreement guarantees free transfer of funds related to investments, including returns, proceeds from liquidation, and compensation, without delay in freely convertible currency. Investor-State dispute settlement is available under the ICSID Convention (contingent on Laos acceding to the Washington Convention) or, until then, conciliation or arbitration mutually agreed on the basis of the Convention or ICSID Additional Facility Rules. For Korean investors in Laos, this Agreement provides legal certainty and recourse against discriminatory or arbitrary state actions, reducing political risk in a developing market. For Lao investors in Korea, it ensures access to a transparent and predictable investment environment with enforceable protections. The Agreement remains in force for an initial period of fifteen years and continues thereafter unless terminated, with investments existing at the time of termination protected for a further twenty years.
Articles
Article 0
AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF KOREA AND THE GOVERNMENT OF THE LAO PEOPLE'S DEMOCRATIC REPUBLIC FOR THE PROMOTION AND PROTECTION OF INVESTMENTS
Signed at Seoul May 15, 1996
Entered into force June 14, 1996
The Government of the Republic of Korea and the Government of the Lao People's Democratic Republic (hereinafter referred to as "the Contracting Parties"),
Desiring to intensify economic cooperation between the two States,
Intending to create favourable conditions for investments by the investors of one Contracting Party in the territory of the other Contracting Party on the basis of equality and mutual benefit, and
Recognizing that the promotion and protection of investments on the basis of this Agreement stimulate business initiative in this field,
Have agreed as follows:
Article 1
Article 1 Definitions
For the purposes of this Agreement:
(1) the term "investments" means every kind of asset invested by investors of one Contracting Party in the territory of the other Contracting Party, and in particular, though not exclusively, includes:
(a) movable and immovable property and any other property rights such as mortgages, liens or pledges;
(b) shares in, stocks and debentures of, and any other form of participation in a company or any business enterprise;
(c) claims to money or to any performance under contract having an economic value;
(d) intellectual property rights including rights with respect to copyrights, patents, trademarks, trade names, industrial designs, technical processes, trade secrets and know-how, and goodwill;
(e) business concessions having an economic value conferred by law or under contract, including concessions to search for, cultivate, extract or exploit natural resources; and
(f) goods that, under a leasing contract, are placed at the disposal of a leasee in the territory of a Contracting Party in accordance with its laws and regulations.
Any change of the form in which assets are invested or reinvested shall not affect their character as an investment.
(2) the term "returns" means the amounts yielded by investments and, in particular, though not exclusively, includes profit, interest, capital gains, dividends, royalties and all kinds of fees.
(3) the term "investors" means any natural or juridical persons who invest in the territory of the other Contracting Party:
(a) the term "natural persons" means natural persons having the nationality of that Contracting Party in accordance with its laws; and
(b) the term "juridical persons" means any companies, organizations, corporations or associations incorporated or constituted in accordance with the laws and regulations of that Contracting Party.
(4) the term "territory" means:
(a) with respect to the Republic of Korea, the territory of the Republic of Korea, as well as those maritime areas, including the seabed and subsoil adjacent to the outer limit of the territorial sea over which the Republic of Korea exercises, in accordance with international law, sovereign rights or jurisdiction for the purpose of exploration and exploitation of the natural resources of such areas; and
(b) with respect to the Lao People's Democratic Republic, the territory over which the Lao People's Democratic Republic has sovereignty and/or jurisdiction in accordance with international law.
(5) the term "freely convertible currency" means the currency that is widely used to make payments for international transactions and widely exchanged in principal international exchange markets.
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