Right Against Self-Incrimination in Korea
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…
Don’t Forget the Due Diligence in Korea
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…
Pending Bill in Korea Aims to Protect Crime Victims’ Identities
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…
Can you claim severance pay from a Non-Korean Employer?
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…
Korean Litigation Korean Litigation % %
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…
Korean Cargo Claims under Korean Maritime Law Korea Maritime Law
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…
Termination of a Franchise Agreement in Korea: Korean Franchise Law Basics
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…
Trademarks Registration in Korea: Don’t Just Trust Us
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…
Uncategorized The Korean Law Blog by IPG Legal Law Firm
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…
Korean Flat-Tax Rate for Foreign Workers in Korea
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….
Korean Franchise Law Definition of a Franchise
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,…
Korean Free Trade Agreements: Korean FTA Chart
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 Tax Law The Korean Law Blog by IPG Legal Law Firm
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…
The Korean Law Blog by IPG Legal Law Firm
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….
Amendment to Korea’s Industrial Accident Compensation Insurance Law
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…
Dual-Class Shareholdings in Korea: Korean Corporate Law Updates
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…
Valid and Enforceable Contracts in Korea: Korean Contract Law Basics
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…
Liability of Persons who have Lent their Names
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,…
Applying for Veteran Disability Benefits from Korea, Japan, and the Philippines
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…
Korean Common Law Marriage
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,…
Korean IP Law The Korean Law Blog by IPG Legal Law Firm
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,…
Foreigners Divorcing in Korea
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…
How to Renounce your Korean Citizenship
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…
Korean Extradition Law Explained by IPG Legal
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…
Korean Forum Non-Convenience Law on Int’l Jurisdiction
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…
Korean Statute of Limitations for Unpaid Wages in Illegal Worker Dispatch Cases in Korea
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…
Korean Corporate Tax Rate
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:…
Punishment in Korea for Not Paying Korean Child Support
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…
Legal Reserve of Inheritance for an Estate in Korea
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,…
Minimum Capital Requirements for Setting Up a Corporation in Korea
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…
Korean Constitutional Court Strikes Down North Korean Anti-Pamphlet Law
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…
Exercising Korean Stock Options in Companies in Korea under the Korean Commercial Code
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…
Renouncing an Estate/Inheritance under Korean Law
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…
Happy Veterans Day
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…
Korean Inheritance Law on Registration of Inheritances in Korea
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…
Guide to Winding-Up/Closing a Korea-based Company: Korean Company Liquidation Procedure
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…
Consideration and the Statute of Frauds Under Korean Contract Law
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,…
Collecting an Unpaid Invoice from a Korean Bankrupt Debtor
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…
Korean Exit Bans for Not Paying Taxes, Custom Duties and Violations of Korean Law
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…
Top 100 Korean Lawyers & Legal Consultants in Korea
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…
Korean Labor Standards Act Basics
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…
Korea to Allow Visas for Foreign Restaurant Workers: Korean E-9 Visa Updates
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…
Korea-Ecuador Free Trade Agreement
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…
Is a Bankruptcy in the U.S. “Effective” on Assets in Korea?: Korean Bankruptcy Law Basics
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….
Forming a Joint Venture in Korea, China & Southeast Asia: Listen to My Mother
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…
Establishing Business with Korea via an Agent: Korean Agency Law Basics
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…
Opening & Managing a Bank Account in Korea
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…