Non-disclosure agreements (NDAs) are legal in South Korea and enforceable. A legally enforceable agreement known as an NDA forbids the publication of sensitive information between two or more parties. In business dealings, employment contracts, and collaborations involving sensitive information, NDAs are frequently employed.
NDAs may be subject to contract law or intellectual property law in South Korea. Confidential information and trade secrets are protected under the Korean Commercial Code (KCC) and the Korean Intellectual Property Office (KIPO). For an article on liquidated damages in NDAs please see: Liquidated Damages (Penalty) Damages Necessary in Most Korean NDAs.
The KCC defines trade secrets as any commercial or technological information that is kept confidential and has monetary worth. The KCC provides for injunctions, financial compensation, and criminal penalties as legal redress for the theft of trade secrets. Trade secrets are, also, protected by KIPO under the Unfair Competition Prevention and Trade Secret Protection Act. Using or disclosing confidential information without authorization is punishable under this Act, which also permits the legal protection of such information.
Usually, in order to be enforceable in South Korea, NDAs must be carefully drafted. An NDA must outline the breadth of the secret material protected, the duration of the responsibility to maintain secrecy, and the consequences for breaching the agreement in order to be considered legal and enforceable. Please do no, simply, utilize templated agreements for Korea. Korean NDAs should be tailored to Korean Law and enforcement realities.
It is also advised that parties to an NDA state the location and applicable jurisdiction of the agreement. This could make it more likely that any disagreements emerging from the contract will be settled in a predictable and consistent way. In general, NDAs can be a useful tool for safeguarding private information in South Korea, but they must be properly drafted and enforced to be effective.
If you’re seeking a free of cost initial consultation regarding NDA or other legal issues, you may: Schedule a Call with an Attorney in Korea.
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