This is a post by Tom Coyner from over a decade ago on Korean Unions, but it is still valid for today. Korea, the Land of Perpetual Crisis, is facing yet another crossroads—this time, the focus is on renewed challenges facing manufacturing. The weakening Japanese yen, together with the growing strength of Chinese manufacturing, not to mention rising Korean labor costs, is placing Korea once again as the proverbial shrimp between two whales. In fact, much of the real growth of Korean manufacturing is happening in Korean-owned
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Korean Court Awards Double Damages for Intentional Design-Right Infringement: Korean Intellectual Property Law Updates
A recent decision of the Seoul Central District Court highlights the potential exposure faced by companies that manufacture or sell products incorporating designs developed by third parties without authorization from the 3rd party. In Case No. 2025Gadan106047, the court ordered Lotte Chilsung Beverage Co., Ltd. and an event-management company to jointly and severally pay KRW 39 million to a designer for the intentional infringement of a registered design right. The award represented twice the amount of the designer’s actual damages as calculated by the court. Facts Design
Continue readingSucceeding in a Retail Business in Korea by Tom Coyner
The following is an article written by Tom Coyner in 2007 that still has relevance in today’s evolving retail market in Korea. Interesting read on an issue that hasn’t changed much since 2007. It’s amazing what a decade can bring in a rapidly evolving economy such as Korea. In my recent article, I discussed how traditional stores have seen their markets nibbled away by first department stores and later convenience stores. As important as these developments may be, Korean consumers are now being offered new alternatives. Consider
Continue readingRelocation of a Worker Based in Korea for Allegations of Stalking: Korean Employment Law Updates
A Seoul Administrative Court ruled that it is lawful for an employer, even before a stalking charge was adjudicated, to change an employee’s workplace when the employee is identified as the perpetrator of stalking against an alleged victim, provided that a report was filed with the employer. In May 2026, the 3rd Administrative Division of the Seoul Administrative Court ruled in favor of the Employer. Facts Seoul Administrative Court Holding The Employee, in short, argued that: “Taking personnel action on someone with the assumption they are a
Continue readingKorean Supreme Court Clarifies Property Division Method for Unlisted Shares in Korean Divorce Cases
On May 29, 2026, the Supreme Court of Korea issued a landmark decision regarding the division of unlisted shares in a divorce property-division case. The ruling is significant because the Court expressly addressed how courts should approach cases where a large portion of the marital estate consists of founder-held shares in a privately held company. The Court recognized that a cash settlement, commonly referred to in Korean practice as daesang-bunhal or compensatory division, is often the most practical method for dividing unlisted shares. However, the Court made
Continue readingKorean Supreme Court: Use of Lawfully Collected Personal Information in Civil Complaint May Constitute a Justifiable Act under the Personal Information Protection Act
With much uncertainty in requirements of data processors under the Personal Information Protection Act (PIPA), the Supreme Court of Korea held that the use of another person’s lawfully collected name and address in a civil complaint filed against that same person may constitute a justifiable act and therefore may not be punishable under the Personal Information Protection Act, provided that the use remains within the scope necessary to conduct litigation. On May 14, 2026, the Second Criminal Division of the Korean Supreme Court reversed the lower court’s
Continue reading“Earned Income” Definition under Korean Income Tax Act held constitutional by Korean Constitutional Court
The Constitutional Court of Korea ruled a provision of the Korean Income Tax Act defining the scope of benefits included in “earned income” as constitutional. The Court determined that the provision of the Income Tax Act, which defines earned income as “salaries, wages, remuneration, allowances, bonuses, and benefits of a similar nature received by providing labor,” does not violate the principle of clarity in tax requirements. (2024 HunBa 8384 and 2025Hyun100, etc.). Case Summary Decision of the Korean Constitutional Court on the Clarity of Earned Income Definition
Continue readingAmendments to the Korean Labor Standards Act: Break-Time Flexibility and Hourly Annual Leave
Recent amendments to the Korean Labor Standards Act introduce two important changes to the statutory framework governing working hours, rest periods, and annual paid leave. The amendments address long-standing practical issues arising from the rigid application of break-time rules and the absence of an express statutory basis for using annual leave in hourly units. The first amendment explained below permits employees who work exactly four hours to waive the statutory 30-minute break, provided the employee expressly requests to forgo the break. The second amendment, explained below, establishes
Continue readingDefinition of Personal Information Processor under Korean PIPA
The Supreme Court of Korea ruled that a person who obtains personal information through fraudulent or deceptive means and uses it for business purposes is also a “personal information processor” under Korea’s Data Protection Law. In April of 2026, the First Criminal Division of the Supreme Court upheld the lower court’s ruling sentencing a defendant to one year in prison for violating the Korean Personal Information Protection Act ( 2026do477 ) (“PIPA”). For an article on Statutory Damages for PIPA violations, please see: PIPA Violations Statutory Damages.
Continue readingSucceeding in Business in Korea by Tom Coyner Business Advisor for IPG Legal
Since 1977, I have observed the rise and fall of many foreign companies in South Korea. I have witnessed the trials and tribulations as a bank employee, a high-tech salesman, a country manager, and as a business consultant of foreign and Korean companies doing business in Korea. Bluntly speaking, while some foreign ventures have had some unlucky breaks, those companies that have succeeded in the Korean market have done so for good reasons. And those who have failed have done so largely because of their own inadequacies
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