Category: Legal Law

One of the major parts of our law practice here at IPG Legal for international clients, in Korea, is the structuring of joint ventures and the resolution of joint venture disputes in Korean courts and through arbitration. I find, in many of these cases, the non-Korean party is not in need of a joint venture […]

On May 11, 2023, the National Policy Committee of the Korean National Assembly passed a bill known as the “2023 Proposal” on the Act on the Protection of Virtual Asset Investors (“Act”). The 2023 Proposal, which focuses on enhancing the protection of virtual asset investors, shall be finalized in the plenary session of the Korean […]

Non-compete clauses in Korean employment contracts are enforceable in Korea, but there are some limitations and requirements that must be met for them to be regarded as lawful and, thus, enforceable. A Non-Compete Clause is a type of restrictive covenant that is designed to protect the business of an employer from competition from a particular […]

IPG Legal attorneys handled divorces, child custody, Hague child abduction cases, and asset division cases for foreigners residing in Korea and abroad for over two decades. IPG is one of the most experienced law firms working with expats in Korea and we are the go-to choice for U.S. and European Family Law Attorneys wishing to […]

Many non-Korean workers for Korean and international companies doing business in Korea are hired under the title Director. Many of these workers are, in reality, executive employees working as executive-level managers. Many of these workers are “employees” under the Korean Labor Standards with all of the protections afforded employees. For an article on the dismissal […]

CAN KOREAN POLICE ISSUE AND ENFORCE A SUMMONS EVEN WHEN THE SUSPECT RESIDES ABROAD? Yes. The Korean Criminal Procedure Law applies to foreigners who have committed crimes within Korea as well as those who have committed crimes against residents of Korea while residing outside of Korea. Upon suspicion of a crime, the Korean police and […]

In a Korean trial known as the “Namsan 300 Million Won Case,” two prominent figures, former Shinhan Bank Chairman Shin Sang-hoon and former Shinhan Bank President Lee Baek-soon of Shinhan Financial Group, were acquitted on charges of perjury. The judgment has sparked controversy and raised important questions about the status of witnesses when they themselves […]

I just received a phone call from a prospective client with a wonderful product that has been offered a sweetheart deal.  Whenever I hear that someone has received a no risk or sweetheart deal in Korea, a red flag immediately goes up in my head and I immediately request the client to let me do […]

Korea has many protections in place to protect the privacy of individuals, however, a concerning issue has come to light, in recent years, regarding the exposure of Korean victims’ identities and addresses during legal proceedings in Korea. Korean lawmakers, reacting to this issue, proposed a bill aimed at safeguarding the personal information of alleged crime […]

Severance Pay is a payment which the employer is required to pay an “employee” for a retiring, terminated or resigning employees that works for a company in Korea for, at least, one year.  The reason for termination, retirement or resignation does not effect the applicability of the severance requirement.  Even an employee who is fired […]

The Korean Supreme Court has recently rendered a judgment highlighting the requirements for Korean courts to accept the service of legal documents, in Korea. In a case involving a dispute over the existence of a right of easement, the Supreme Court of Korea declared that merely listing an address in appeal documents is not sufficient […]

If you’ve ever wondered how to bring cargo claims under the Maritime Law/Shipping Law in Korea when South Korea is not a signatory to any international conventions governing the shipping of goods by sea, such as the Hague-Visby, Hamburg, or Rotterdam conventions, continue reading to find out. For information on arresting a ship in Korea please […]

There are excellent and ethical attorneys in every country; this is certainly also the case in Korea with Korean attorneys and international attorneys working in Korea. While all are no doubt intelligent and highly educated, the manner in which many approach their clients’ needs harkens more to the early 20th century than the cusp of […]

The Fair Transactions in Franchise Business Act (“Franchise Act”) and the Fair Transactions in Large Franchises and Retail Business (“LFBA”) are the major laws governing the relationship between a franchisor and a franchisee. Whereas the general provisions of the Monopoly Regulation and Fair Trade Act (MRFTA), Commercial Act and Civil Act, additionally, regulate the franchise […]

Our friends over at the China Law Blog have posted on an intellectual property issue that leads to a good deal of work for the IP Litigation Practice at the Korean office of IPG Legal. If you don’t want the added cost of litigating a matter in a Korean court, please register your trademark in […]

In Korea, an employment relationship is generally established through an employment contract between the employer and the employee. However, it’s important to note that an employment agreement can be either written or verbal. While a written contract is highly recommended to clearly define the rights and obligations of both the employer and the employee (and […]

The Special Tax Treatment Control Law of Korea extended the benefit of the Flat Tax to 20 years from the present five years. The flat tax rate with the local income tax is 20.9%. of the foreign employee’s earned income. Additionally, the National Tax Services of Korea and the Ministry of Economy & Finance of […]

A franchise, in general, in the Republic of Korea (“Korea”) is a continuous business relationship under which a Franchisor allows a franchisee to use its business marks (trademarks, service marks) to sell goods or services in accordance with certain quality standards, business methods, training and control requirements in exchange for the payment of a franchise fee […]

Free Trade Agreements Executed by the Republic of Korea (“South Korea” or “Korea”) South Korea currently maintains 21 comprehensive free trade agreements with a combined total of 59 countries. The chart below provides information on the countries with which these Korean FTAs are in force, the key dates of the free trade negotiation processes, and […]

Can freelance workers apply for Korean National Pension Deductions when Calculating their income tax? Yes, freelance workers in Korea can apply for Korean National Pension deductions when calculating their income tax. The National Pension System of Korea is designed to provide retirement, disability, and survivor benefits to eligible individuals, including freelancers. Thus, the system applies […]

The Serious Accident Punishment Act (“SAPA”) was passed by the Korean National Assembly and came into effect on January 27, 2022. With the implementation and recent expansion of the SAPA, we encourage all employers to do a comprehensive compliance audit. Some law firms, including this one, have attorneys and staff that can assist your team […]

Effective July 1, 2023, the scope of application of the Korean Industrial Accident Compensation Insurance Law was extended to include, also, the protection of those employees in Korea who are not “exclusively” working for a specific employer in Korea. Prior to the amendment, some employees who worked for multiple employees were not covered by the […]

Prior to the recent amendment to the Special Measures for the Promotion of Venture Businesses Act, Korea was an outlier in the developed world with regard to Dual-Class Shareholdings. Most developed economies allow Dual- Class Shares for IPOs and for unlisted countries. Korea prohibited Dual-Class Shareholding for both listed and unlisted companies. Korean Commercial Code […]

In Korea, contracts are agreements that are legally binding and enforceable under the law. They can be created for a wide range of purposes, such as employment, real estate, intellectual property, and commercial transactions. A contract, in Korea, is an agreement between two or more parties to create, modify, or terminate obligations that are legally […]

In Korea, the person who is actually the subject of rights and obligations, often differs from the nominee such as the holder of licenses or business registrations. Sometimes those with assets use these nominee/proxies to attempt to avoid liability. As such, under certain conditions, a counterparty to a transaction is protected, under the Korean Commercial Act, […]

Applying for Veteran Disability Compensation can be a long, stressful and frustrating process especially when you are living abroad. We assist veterans to file for benefits from our offices in Korea and the Philippines for service-disabled veterans residing throughout Southeast Asia and the United States. Veteran Disability Compensation Basics Veteran Administration disability compensation provides a […]

While the concept of a Korean Common Law Marriage (since Korea has no concept of a Common Law) does not exist, Korea has a similar law to the laws, in parts of the United States and other common law countries, often referred to as Common Law marriage. FYI – few U.S. States recognize common law […]

Chat GPT by OpenAI has increased employee productivity and some employers have even incorporated it into their work systems for improved efficiency. However, Chat GPT brings up many legal issues that have not, yet, been litigated in courts. Chat GPT, an “artificial intelligence” (AI) service developed by OpenAI, has gained widespread popularity for its remarkable […]

Expats without a marriage registered in Korea, can, typically, divorce in Korea. If a marriage is registered in a country recognized by the government of the Republic of Korea, the Korean Family Court shall, normally, consider the marriage a valid marriage in Korea. Exceptions exist for marriages against public policy (e.g. plural marriages and marriages […]

The Korean National Assembly passed, in September of 2022, a bill to clarify and revise the procedures for the renunciation of Korean citizenship. The revised Korean Renunciation of Korean Nationality law shall allow some additional men to not have to serve in the Korean Military. However, a newly inserted clause shall allow nearly unfettered discretion […]

Korean Extradition Law is based on international treaties, Korean jurisprudence, and Korean statutory law. Korea is a party to 78 extradition treaties, including, treaties with the majority of the European Union, Asia, North America, and the majority of the developed and recently developed world. An IPG Legal attorney is, likely, the only foreign attorney working […]

The main law that governs international jurisdiction over cases in Korean courts is Korea’s Private International Law Act. A major amendment to the Act became law in July 2022. The prior law was criticized for leaving too much discretion to courts and not providing detailed rules regarding the application of international jurisdictional norms to Korean […]

The Supreme Court of Korea ruled in April of 2023 for the first time on the statute of limitation for damages claims based on an illegal dispatch of workers in Korea. The Supreme Court of Korea ruled that the statute of limitations clause under Article 766 of the Korean Civil Code and not the statute […]

The Korean Corporate Income Tax law was amended to lower Korean corporate income taxes for 2023. The amendment is applicable for the year 2023 or until amended. For an article on the reduction in Korean Stock Transaction Taxes please see: Korean Stock Transaction Taxes.  Tax Basis 2022 (Local Income Tax) 2023 (Local Income Tax) Less […]

Korea has legal tools in place to punish a person who refuses to pay child support. We advise, if you have a child support order to not sit on your rights, and if payment is not made, consult an attorney and get the process moving in order to enforce your rights. If you have not […]

Korea’s Legal Reserve of Inheritance/mandatory share of inheritance (유류분/遺留分) is a specific portion of an inheritance given to heirs notwithstanding the will. Therefore, for example, even if the will notes that a certain estranged child shall not receive any of the inheritance, Korean Law imposes a mandatory share of the estate for this heir. Therefore, the deceased […]

My friend at the Korean Tax Blog has an excellent post on the minimum capital requirement for setting up a company in Korea. The post notes that: Before 2009, Korean law required a minimum capital of 50 million KRW to estabish a corporation. However, since February 2009, there are no longer any restrictions related to […]

The Constitutional Court of the Republic of Korea, a court I worked for six years, struck down a law from 2020 that criminalized the spreading of anti-Northern Korean pamphlets into North Korea by balloon and other means. The law imposed a potential penalty of up to three years in jail or a fine of up […]

Stock options, in Korea, are often provided to senior foreign and domestic employees of companies in Korea. For stock options, in non-listed/non-public companies in Korea, to be exercisable by employees in Korea (thus a valid option) the option must be approved, in most cases, at a general shareholders meeting of the Korean company. Another article […]

A typical matter of a party renouncing an estate in Korea commences when a family member in Korea requests the waiver/disclaimer of the right to a Korean inheritance. In some cases, this request is for nefarious reasons. A typical, situation involves the estate of a Korean national decadent with non-Korean family abroad. The estate, often, […]

Wishing all that served their country in the military, a happy and healthy Veterans Day. Similar Posts: Happy Veterans Day Applying for Veteran Disability Benefits from Korea, Japan, and the Philippines Merry Christmas and Happy Holidays from all of us at IPG Legal Merry Christmas, Happy Holidays & a Happy New Year from IPG Merry […]

My friends at The Korean Tax Blog have an excellent post called Your Complete Guide to Estate Registration in Korea. The accounting firm at the Korean Tax Blog assists IPG Legal in all inheritance tax matters. For more information on Korean Inheritance Law please see: Who Inherits What, When, and How in Korea?, Renouncing an […]

Any business in Korea that is registered as a corporation must wind up/liquidate the company to legally close the business in Korea. Many companies, however, choose to forgo this step thinking that no repercussions will be felt. This belief is far from the reality. I know a pending case that has led to prosecutions, a […]

A contract, in Korea, is still binding on the parties, in most cases, even if the contract contains no consideration. Thus, a mere “gift” that contains no benefit to the giver may be an enforceable contract under Korean Law. However, in many international contacts (and even local contracts), it is best to still include the […]

Before Engaging in a Relationship with a Korean Company 1. Before engaging in any work or giving a Korean company money – please do a little due diligence. Many SMEs and even conglomerates (many construction companies) are experiencing serious financial difficulties. Do a little due diligence before wasting your time and money. If you find […]

The Korean Immigration Control Act and related acts allow the potential to permanently impose an exit ban from Korea on foreigners for nearly all acts that are determined by the Korean Ministry of Justice as “harming the interest, public safety or order in the economy of the Republic of Korea” until the reason for the […]

Sean Hayes, head of the Top Korean Dispute Resolution Law Firm of the Year was rated by LawAsia, one of the leading peer-reviewed publications in Asia, as a Top 100 Lawyer in Korea. Sean Hayes is one of the only non-Korean attorneys on this Korean Lawyer “A-list” and the only non-Korean that was on the […]

The Korean Court System has been less reluctant, in recent years, to deem a Korean independent contractor an “employee” under the Korean Labor Standards Act (LSA). This fact remains true even when an employer in Korea establishes that the independent contractor is aware that he/she was contracted as an independent contractor and, thus, not a […]

The major Korean and English-language vernaculars announced that non-skilled (e.g. not chefs) foreign workers wishing to work in restaurants shall be allowed to be sponsored for E-9 visas by restaurant employers. Restaurants in Korea with less than five workers shall be allowed one visa and restaurants with five or more workers shall be allowed a […]

The Republic of Korea (“South Korea”) and the Republic of Ecuador (“Ecuador”) executed this month a Strategic Economic Cooperation Agreement. Under this agreement between Ecuador and Korea, South Korea shall eliminate tariffs on 96.4 percent of items and Ecuador shall eliminate tariffs on 92.8 percent of items. Korea expects an increase in exports of automobiles, […]

For some companies wishing to establish business with Korea, the use of a commercial agency relationship may be an ideal way to establish your business presence in Korea. However, this type of agreement comes with risk. Please see: Termination of an Agency Agreement in Korea. https://www.thekoreanlawblog.com/2020/08/distribution-agreement-termination-korea-law.html An agent relationship is often ideal when a company […]

My friends at the Korean Tax Blog have an article on some difficulties with banking in Korea. I recommend reading the article. The blog post notes, in part, that: “I have often received questions from foreigners about the banking system in Korea. Even for Koreans, it is notoriously complicated. Although difficult to adequately explain the […]

The following article on the interplay between Korean Bankruptcy Law and foreign bankruptcy laws was motivated by a question from a reader from the Korea Times. The following is from a column I used to write for the Korea Times. Please note the present Bankruptcy Law in Korea was amended and the present topic, while […]

My mother often told me, when I was much younger, to look both ways before crossing the street; carry an umbrella in the spring; and don’t go out alone in the dark. The advice can go a long way for Korean companies doing business outside Korea and for expats doing business in Korea. As we […]