IPG Legal’s Senior Business Adviser, Tom L. Coyner, has published the second edition of his book on Korean business. The book is entitled “Doing Business in Korea” and may be purchased through Amazon or at most bookstores in Korea. While the book was written a few years back, it is still a useful guide and should be on everyone’s bookshelves. The book is highly recommended reading for anyone with business interests in Korea. Sean Hayes has been noted as a contributor to the legal chapter of the
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Korean Supreme Court Reaffirms Pro-Arbitration Stance in Korean Arbitration Clause Dispute
On January 23, 2025, the Supreme Court of Korea’s First Civil Division (Case No. 2024Da243172) issued a significant decision reaffirming Korea’s arbitration-friendly judicial posture. The Korean Supreme Court ruled that even where an arbitration clause in a contract contains ambiguous or inconsistent language, it may still constitute a valid and exclusive arbitration agreement if the parties’ overall intent to arbitrate is clear. The case serves as a valuable lesson in drafting clear agreements from the outset. It appears that the parties did not have a competent attorney
Continue readingKorean Court Holds Startup CEO Personally Liable for Stock Repurchase: Implications for VC Contracts
A recent ruling by the Seoul Central District Court enforces a personal stock repurchase obligation against a startup CEO, potentially setting a precedent that may shift how venture capital agreements are structured in Korea. On July 16, 2025, the 46th Civil Division of the Seoul Central District Court (Presiding Judge Kim Hyeong-cheol) ruled in favor of a venture capital firm in a lawsuit concerning the enforcement of a stock repurchase clause. The suit (2024 Gahap 59259) was filed by Venture Capital Company A against Mr. B, the
Continue readingEnforcement of Shareholder, Joint Venture and Voting Rights Agreements in Korean Courts
In a pivotal Korean Corporate Governance precedent, the Supreme Court of Korea ruled that if a company violates a “voting rights agreement” and appoints additional directors in violation of that agreement, the other party’s request to dismiss the additional directors appointed in violation of the agreement should be accepted by Korean courts. The Korean Supreme Court further noted that indirect enforcement is also available to the moving party if the company fails to follow the court order. For articles on drafting shareholder agreements, please see “Forming a Joint
Continue readingInjunction Granted by Korean Court Against NewJeans: Korean Entertainment Law Updates
In a major decision in Korean Entertainment Law, the unilateral decision of NewJeans to form the group NJZ and perform outside of its agreement with the management company Ador (a subsidiary of HYBE) was deemed a breach of contract by members of NewJeans. The members of NewJeans, who debuted through Ador, announced in November 2024 that their contracts with Ador are terminated due to violation of their exclusive contract. Thereafter, they changed their group name to NJZ. In January 2025, Ador filed a request to the Seoul
Continue readingKorean Guardianship by Agreement of the Ward and Guardia
Korean Voluntary Guardianship (임의후견, im-ui hygyeon) or Korean Guardianship by Agreement is a legal arrangement, in Korea, under which an individual (the “Ward”), in anticipation of potential mental or physical incapacity due to illness, disability, or aging, delegates all or part of the authority to manage their personal affairs and assets to another person (the “Guardian”). This delegation is made through a formal written contract that grants representative authority over specified matters and comes into effect when the Family Court of Korea appoints a supervisor of
Continue readingCancellation of Korean Apartment Sales Contracts under Korean Law
In the recent past, Korean real estate developers offered potential buyers of apartment complexes that were not yet built in Korea favorable terms, including, temporary interest-free loans. However, with the economic downturn, rising vacancies, construction delays, construction defects, construction variances, and increasing interest rates many buyers are attempting to cancel apartment sales contracts in Korea through lawsuits at Korean courts. Many buyers are facing severe difficulties in paying mortgages and see some apartments as worth substantially less than the initial purchase price. Cancellation of these sales agreements
Continue readingSubcontracting Risks in Korea: Court Rules Subcontractor Arrangement is an Illegal Worker Dispatch Agreement
The Suwon District Court in Korea recently ruled that a subcontracting arrangement between Company B and its subcontractor, Company C, constituted an illegal worker dispatch and ordered Company B to compensate the employees of Company C for the discrepancies in wages between workers working for Company B and workers at Company C. The lawsuit was filed by former employees of Company C and highlights the legal implications and risks of Korean subcontracting arrangements in violation of Korean labor laws and Korean court precedence. For an article on
Continue readingKorean Freight Carrier Liability for Damaged Shipments under Korean Law
The Supreme Court of Korea held a specialized delivery company liable for damage to a rare piece of art that was damaged when an employee of the Shipping Company opened the shipping container. The duties under the contract ceased upon delivery of the item, however, the employee of the Shipping Company, beyond the scope of the contract opened the package. The case sheds light on the need for carefully drafted clauses related to the passing of the risk of loss and the duties and responsibilities of employees
Continue readingLiability of Korean Real Estate Agents for Acts & Omissions
Korean Lessors’ rights to compensation from negligent and dishonest Korean real estate agents are expanding in South Korea based on recent holdings by district and appeals courts in Korea. Recent holdings at the Seoul Central District Court and an appellate court held a Korean real estate brokerage firm and the representative of the Korean real estate brokerage firm jointly liable for damages caused by the gross negligence of the broker working for a real estate agent. See: Korean Real Estate Acquisition Taxes for an article on taxes
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