1. The Foreign Ministry's Deputy Minister for Political Affairs Lee Kyung-soo, who is on a visit to Kenya to attend the second meeting of the Joint Economic Commission between the Republic of Korea and Kenya, signed together with Cabinet Secretary of National Treasury Henry Rotich the following three bilateral agreements on July 8: the Framework Agreement on Grant Aid, the Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, and the Agreement for the Promotion and Protection of Investments.

º A number of Kenya’s media outlets attended and covered the signing ceremony, which was followed by a joint press conference by the head delegates of the two countries.

2. By concluding the three bilateral agreements, the ROK and Kenya have laid a legal and institutional groundwork for cooperation in taxation, investment protection and development. In this light, the agreements are expected to play a role in substantively stepping up bilateral cooperation in economy and development.

º Under the Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, the ROK and Kenya will avoid double taxation on an income and seek to promote economic cooperation. The Convention, which also calls for exchange of information on the enforcement of the domestic laws of the two countries on taxation, is expected to serve as an institutional instrument to prevent offshore tax evasion.

º The Agreement for the Promotion and Protection of Investments will serve as a legal basis for protecting Korean companies and residents in Kenya from non-commercial measures including nationalization. It is expected to help boost Korean investment in Kenya and step up economic cooperation between the two countries.

º The Framework Agreement on Grant Aid contains provisions on permits, conveniences, privileges and immunity necessary for smooth operation of the Korea International Cooperation Agency (KOICA) in Kenya. 


                Spokesperson and Deputy Minister for Public Relations of MOFA

* unofficial translation