So you want to expand into China, Japan, Korea, Southeast Asia (Asia)? We here at IPG suggest considering Seoul, Korea as a Test Bed for your Asian expansion. The following article’s focus is on Luxury Goods and Fintech, but IPG believes that the Korean Market is, also, an excellent stepping off point for other industries including F & B, Defense, Franchise, Automotive, High Tech, New Tech, Retail and Fourth Industrial Revolution industries. Another article that may be of interest, that we posted a few years back, is an article on Using Korea as a Test Market for Asian Expansion: The Facebook Example. If you have any questions, we are always here for a consultation. Korea as a Test Market/Test Bed for your Company’s Asian Expansion Many savvy companies have, successfully, utilized the Seoul, Korean market to test the Asian waters. For example, luxury powerhouse, Louis Vuitton, opened a uniquely designed
Continue readingAuthor: Sean Hayes
Sean Hayes is the first non-Korean employed as a foreign attorney by the Korean Court System (Constitutional Court of Korea) and one of the first non-Koreans to be a full-time regular member of a Korean law faculty. He is rated a Top Attorney by numerous legal rating agencies and is known for his street-smart advice, candor and aggressive & non-conflicted advocacy. Sean has been quoted by The New York Times, The Wall Street Journal, Bloomberg, CNN, Money Today, US Today, The Korea Times, The Korea Herald, France 24, Asia Legal Business and other leading news sources.
Merry Christmas and Happy Holidays from IPG!
(c) Sean Hayes – SJ IPG. All Rights reserved. Do not duplicate any content on this blog without the express written permission of the author. [email protected]
Continue readingBCCK Christmas Lunch 2019
Through the Christmas Lunch 2019, the British Chamber of Commerce in Korea (BCCK) lived up to its claim that “even Santa knows it’s the best event in Seoul.” The BCCK event was comprised of the whole package: festive food, drinks, music, games, gifts, an auction and sing-alongs. IPG proudly won three charity prize auctions and Sean Hayes, attorneys from IPG, guests and friends of IPG attended the event and are looking forward to more events from the BCCK this coming year. Setting Christmas “jumpers” and colorful “trousers” (the British way of saying sweaters and pants:) as this year’s theme brightened up the whole atmosphere and increased the level of merriment. The BCCK is a non-profit organization promoting the development of British trade, commerce and investment in Korea through its business services and networking opportunities. It is, also, encompasses a great group of people. Refer to the BCCK website for more
Continue readingCamarata Christmas Music Festival 2019 Sponsored by IPG Legal
IPG Legal is proud to be a sponsor of Camarata Music Company Studio annual Christmas Concert. We, highly, recommend participating in the event. The event is one of the most enjoyable events of the Christmas season. Tickets are still available. You can buy tickets at: Christmas 2019. (c) Sean Hayes – SJ IPG. All Rights reserved. Do not duplicate any content on this blog without the express written permission of the author. [email protected]
Continue readingDeutscher Club Seoul: Christmas Dinner 2019
As Christmas day is nearing this holiday season, numerous Christmas events are taking place around the city of Seoul. One of the best events that we at IPG Legal are proud to be a corporate sponsor of this event by the Deutscher Club. The Deutscher Club Seoul (the German Club Seoul) once again organized a ‘Weihnachtsdinner’ (Christmas dinner), celebrating the season with good drinks and food. The Deutscher Club created a great platform for people with a common interest to come together and partake in events around Seoul. Besides festivities, the Deutscher Club Seoul also enables its members to discover Seoul culturally through various organized events. Visit Deutscher Club for more information. We, highly, recommend all interested in Germany, the German language and meeting a cadre of great individuals to consider the event. (c) Sean Hayes – SJ IPG. All Rights reserved. Do not duplicate any content on this blog
Continue reading52-Hour Workweek Delayed in Korea for SMEs: Korean Labor Law Update
The Korean government delayed the implementation of the 52-hour workplace system for certain small and medium size companies. This System is intended to apply to all companies in Korea and mandates that no employee may work for an employer for more than 52-hours in any one week. The Ministry of Employment and Labor of Korea announced, on December 11, 2019, that the 52-hour workplace system is suspended for SMEs (Employers with less than 300 workers) until the end of 2020. The Korean Ministry of Employment and Labor made the announcement, because of fears that the measure may harm these businesses. We are of the opinion that because of recent changes in the enforcement of Korean labor laws, it is advisable to revise company employment rules, agreements and have a compliance audit for your company in Korea. If you would like a call with an attorney at IPG, please schedule a
Continue readingMandatory Registration of Long-term Trips Abroad – Korean Registration of Korean Nationals Residing Abroad Act of 2019
The Amendment to the Korean Registration of Korean Nationals Residing Abroad Act (hereinafter as “Amendment to the Registration of Korean Nationals Abroad Act”) shall enter into force at the end of 2019. The Amendments major focus is on collecting more information about Korean nationals staying or residing abroad. For a related update related to Korean Passports, please see: Korean Passports. Key-facts about the Registration of Korean Nationals Residing Abroad Act The Korean Registration of Korean Nationals Residing Abroad Act facial purpose is to “…understand the current status of the nationals of the Republic of Korea residing or staying abroad by having them registered, in order to promote conveniences of their activities at home and abroad, execute relating administrative affairs properly, thereby contributing to the formulation of protective policies for them.”. In accordance with the Act, Korean nationals shall register their stay in foreign countries as soon as the duration exceeds
Continue readingKorea Enhances its Scope of Eligible Persons under the Framework Act on International Development Cooperation: Korean Aide to Developing Countries
The Amendment to the Korean Framework Act on International Development Cooperation (hereinafter as “Act”) was proposed by the Korean Foreign Affairs and Unification Committee at the end of last year. The law intent is to improve the human rights of juveniles in developing countries by the establishment of a variety of international development cooperation programs for at risk and impoverished children. Main Objectives of the Korean Framework Act on International Development Cooperation The major purpose of the Act is to enhance “…the appropriateness of policies for international development cooperation and the effectiveness of implementation thereof, and effectively achieve the policy objectives of international development cooperation by providing for basic matters concerning international development cooperation, thus contributing to the co-prosperity of humanity and to world peace.” (Art 1). The cooperation partners included are either based on bilateral (f.i. cooperation partners of the State, local governments or public institutions) or multilateral (international
Continue readingKorean Waste Control Act Amendments of 2019
As a reaction to several accidents in waste storage facilities, the Korean National Assembly passed an an Amendment to the Korean Waste Control Act on March 28, 2019. The amendment puts in place, a more transparent measures and rules for waste-storage facilities. Major Amendments to the Korean Wastes Control Act Set of safety measures for waste-collecting vehicles. More specific safety rules for waste-storage facilities. Implementation by the Korean Ministry of Environment to conduct an annual safety inspection and survey on waste treatment business facilities. Violation of Safety Measures as per the Amended Waste Control Act A violation of these safety regulations can result in a partial or total suspension of the waste business operations of the concerning company. Additionally, shareholders and directors may be criminally punished for up to two years or a fine of up to KRW 20,000,000. For the current Waste Control Act of Korean please see: Korean
Continue readingDefinition of “Ordinary Wage” in Korea: Korean Employment & Labor Law Basics
The courts of the Republic of Korea, for years, has struggled to find a consistent interpretation of an “Ordinary Wage.” The definition of Ordinary Wage, under Korean Law, was clarified by the Korean Supreme Court in two decisions handed down on December 18, 2013. The calculation of Ordinary Wages is important, since it is utilized to calculate statutory entitlements, and thus has an impact on the aggregate amount of contributions necessary to be paid to employees. For example, according to Article 56 of the Korean Labor Standards Act, an employer must pay 50% of the Ordinary Wage plus the Ordinary Wage for overtime, night and weekend work performed by the employee. Because of the potential for a large unknown future liability, this issue became the most significant issue, in the last few years, among domestic and foreign employers in labor and employment law in Korea. The basic Korean test is
Continue readingThe Korean Corporate Restructuring Promotion Act of 2018: Korean Insolvency Law Updates
The recently enacted Korean Corporate Restructuring Promotion Act (hereinafter as “CRPA”) focuses on facilitating “…constant corporate restructuring and promotes the stabilization of financial markets and the development of the national economy, by providing for matters necessary to promptly and efficiently implement corporate improvement of enterprises with signs of insolvency.” (Art 1 (Purpose) CRPA). The CRPA is intended to facilitate out-of-Korean-court restructuring procedures. Often, debtors prefer out-of-court proceedings over in-court proceeding, because the belief that out-of-court proceedings shall lead to more flexibility and less costs. In October 2018 a revised version of CRPA 2016 entered into force. The revised CRPA, provides eased legal conditions for creditor banks. The key amendments to Korean CRPA 2018 are noted below. Liability-Exemption for Creditors Acts and Omissions Creditor financial institutions, their officers and employees have liability while restructuring a debtor company. But they shall not be responsible for the results, if they properly fulfilled their
Continue readingKorean Data Privacy Act: Need for Compliance Audit for your Korean Company
The European Union General Data Protection Regulation (EU GDPR) focuses on the data security of personal data of users of the internet. As the EU offers a potentially lucrative market for online businesses for many Korean companies, South Korea was eager to amend its existing Act on the Promotion of IT Network Use and Information Protection of Korea (“Korean Network Act”) based, at least, partially on bench-marking of the EU GDPR. We suggest all companies, doing business in Korea, conduct via a professional in data privacy – a compliance audit. We suggest the professional has an understanding of not, only, Korean Law, but the law of the European Union as it relates to data privacy. Fines and criminal penalties for violation of data privacy laws have increased in Korea. Korean Network ActThe Korean Network Act was amended in December of 2018. Korea, the EU and other nations are in ongoing
Continue readingMinimum Wage Raised in Korea for 2020: Employment Law Updates
South Korea has chosen to raise the minimum wage by 2.9% for 2020 to KRW 8,590 (c. USD 7.11). The Minimum Wage Commission of Korea set the wage at a lower than expected increase because of deteriorating economic conditions in Korea. President Moon’s plan to raise the minimum wage to KRW 10,000 per hour shall fall short, because of, among other things, a slower than expected growth rate and regional geopolitical issues facing Korea. We shall keep the reader updated when more is known. (c) Sean Hayes – SJ IPG. All Rights reserved. Do not duplicate any content on this blog without the express written permission of the author. [email protected]
Continue readingKorea Amends the Act on the Employment, etc. of Foreign Workers in 2019: Employment Law Updates
Amendment to the Act of the Employment, etc. of Foreign Workers in Korea (hereinafter as “Amendment to the Act of the Employment of Foreign Workers” of Korea) was proposed by the Korean Environment and Labor Committee in December 2018. The focus of the Amendment of the Employment of Foreign Workers is on the improvement of the living conditions of foreign workers at dormitories provided by their companies. Major Changes Due to the Amendment and the Struggles on the Way Addition of Criteria for the Dormitories to the Requirements to Obtain Permission for Hiring Foreign Workers in Korea? The original bill contained the regulation in Art 8 (3) Act of the Employment of Foreign Workers that the criteria for dormitories shall be added to the requirements that employers in Korea must meet in order to receive permission to hire foreign workers, if they – in general – provide dormitories to foreign
Continue readingThe New Korean In Vitro Diagnostic Medical Devices Act 2020
As proposed in April 2019 by the Korean Chair of the Health and Welfare Committee, the Korean In Vitro Diagnostic Medical Devices Act (hereinafter as “Korean In Vitro Act”) intends to, among other things,: “…ensure the safety and quality of in vitro diagnostic medical devices, to strengthen global competitiveness thereof, and furthermore, to contribute to the improvement of public health and the development of vitro diagnostic medical devices, by specifying matters concerning the manufacture, import, management, and support of such devices” (Korean In vitro Act, Purpose). Major Regulations of the Korean In Vitro Act 2020 The Minister of Food and Drug Safety “…shall classify and designate the class of each in vitro diagnostic medical device in conformity with the intended use of each device and differences in their potential risks to individual and/or public health.” If someone intend to manufacture or import in vitro diagnostic medical devices, he or she
Continue readingKorean Wills: Korean Estate Law Basics
Like in most jurisdictions, the recognition of a will by a court of law requires precise formalities. We advise that most people have a will. For individuals with wills that shall be governed by Korean Law the formalities are noted below. We have omitted two forms of wills – a will by audio recording and dictation. These types of wills pose issues of authentication of the decadent and we believe it is not advisable – in most cases. Korean Holographic Wills A Holographic will is a handwritten will. For a holographic will to be enforceable in Korea the will should meet the following formalities: Written by the descendant Dated Signed Note the descendant’s name and address Sealed or contain a thumbprint. Additional details on holographic will may be found at: Korean Holographic Wills Korean Notarized Wills Will is executed before a Korean notary Two witnesses should be present at the notary
Continue readingExclusion of Japan from Export/Import White List
South Korea is on track toward barring Japan from its export control white list this month, in a blow for blow reaction to Tokyo’s prior choice to expel Seoul from its favored nation trading regime. On July 1, 2019 the Japanese government restricted the export to Korea of three classes of materials: fluorinated polyimide, photoresist and hydrogen fluoride. These chemicals are utilized in important export-driven manufacturing operations in Korea. Seemingly, the restriction is in reaction to a Korean Supreme Court case concerning liability of Japanese companies to the Korean victims of WWII sex slavery. Starting in July, the total volume of imports of these three materials remained at $800 billion and represented around 1.8 percent of all imports from Japan. The restrictions have not prompted any imminent problems for Korean manufacturer according to the Korean Ministry of Trade, Industry & Energy. It was announced by the Korean Ministry of Trade,
Continue readingKorea’s Amendment to the Act on the Arrival, Departure, etc. of Ships: Korean Shipping Law
Dangerous substances, illegal substances and other controlled substances are believed, in Korea, to be more often transported by ships into Korean waters. Thus, the Korean government has amended a giving act concerning Korean Shipping Law. To, among other things, increase transparency of what is being shipped, the Korean Act on the Arrival, Departure, etc. of Ships (hereinafter as “Act on Ships” or “Korean Shipping Act”) was amended. The Korean Act on Ships, in general, establishes regulations concerning the arrival and departure of ships, as well as sets up safety measures in Korea. The Amendment was propoed in December of 2018. The Amendment was proposed by the Chair of the Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee. Korean Shipping Act stipulates that shipping companies, which share the same shipping route and transport dangerous products, shall share accurate information. The Amended Korean Shipping Act shall become effective from July 2019. Overview
Continue readingAmendment to Korea’s Intellectual Property Registration System: Korea IP Law Updates
South Korean organizations, companies and startups will, likely, in the near future experience a quicker and increasingly more efficient Patent and Intellectual Property Registration System in Korea and internationally based on developments within the IP5. Top IP officials in Korea are gearing up, in order to help South Korean organizations, companies and startups register their Intellectual Property more efficiently. It seems like the effort is a serious attempt to expedite approvals and lesson application burdens for those doing business in Korea. IP officials from Korea, the United States, China, Japan and the European Union (a.k.a IP5) recently gathered in Incheon and asserted that they shall utilize A.I. technology and other future advances to improve the worldwide Patent Application System. To accomplish this objective, IP5 consented to organize a research team, containing Patent and IT specialists from these four countries and the EU. This team will start working on an A.I.
Continue readingKorea Establishes Legal Grounds for the Commercialization of Autonomous Vehicles – A New Act for 2020
Proposed by the Chair of the Land, Infrastructure and Transport Committee on April 4, 2019, the Act on Promotion and Support of the Commercialization of Autonomous Vehicles (hereinafter as “Korean Act on Autonomous Vehicles”) aims to set forward legal grounds and a legal framework for projects of domestic and foreign companies, who focus on the development of autonomous or self-driving vehicles with the goal of the successful commercialization in Korea and abroad. The aforementioned Act shall become effective one year after promulgation. We shall update the reader when more is known. The Role of the Koran Motor Vehicle Management Act The Korean Motor Vehicle Management Act provides only general regulations about autonomous vehicles, thus, the Korean government believed a more robust regulatory framework was necessary. According to Art 2 (1-3) of the Korean Motor Vehicle Management Act an “autonomous driving motor vehicle” is “…a motor vehicle which can self operate
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