Expat executives working in Korea are typically hired by Korean conglomerates and multinational companies doing business in Korea based on two or three-year contracts. Many of these contracts contain terms that are in violation of the Korean Labor Standards Act and other laws and regulations. These employment contracts often have one to six-month at-will termination clauses. In many cases, these contracts are in violation of the Korean Labor Standards Act and other laws and regulations. Many foreign executives, recently, have been pushed out of these Korean conglomerates
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Hiring a Fractional General Counsel in Korea: IPG Legal’s Part-Time In-House Attorney Program
In order to reduce costs, while providing your company an on-call Korean and/or international attorney, a fractional general counsel may be right for your company doing business in Korea. A major benefit, other than cost savings, is you are not, only, obtaining the advice of one attorney, but get access to a firm of attorneys and many highly-experienced attorneys (retired judges, retired government attorney, former in house attorneys and other highly-experienced attorneys) that may be too costly to retain as a full-time general counsel. What is a
Continue readingLanguage Supremacy Clauses in Korean Agreements Governed by Korean Law
A language supremacy clause dictates what language governs the interpretation of a contract. Many international contracts are drafted in multiple languages. However, because of the complexity of legal terms, lack of precision in certain languages, the nature of language translation, and other local realities it is best to choose a governing language to avoid the issue of an alleged discrepancy between the Korean and English-language versions of the contract. In most cases, we advise choosing English as the governing language in a Korean contract if one party
Continue readingTop 100 Korean Lawyers & Legal Consultants in Korea
Sean Hayes, an attorney for 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 non-Korean attorneys on this Korean Lawyer “A-list” and the only non-Korean that was on the list each year the list was published. Sean Hayes is the first non-Korean attorney to have worked for the Korean court system (Constitutional Court of Korea) and one of the first
Continue readingConsideration 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, in many international contacts (and even local contracts), it is best to still include the standard “consideration” clause, since enforcement of the contract could occur in another jurisdiction. For an article on the basics of Korean Contract Law please see: Korean Contract Law Basics. While Korean courts
Continue readingValid and Enforceable Korean Contracts: Korean Contract Law Basics
In Korea, contracts are legally binding and enforceable agreements 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 South Korea, is an agreement between two or more parties that creates, modifies, or terminates legally enforceable obligations. To constitute a legally enforceable contract in Korea, there must be: It is important to highlight that certain contracts in Korea require specific formalities for enforceability. Additionally, specific laws and regulations may govern certain types of
Continue readingAcquiring Shares in Closed Korean Corporations in Exchange for Products at Discount: 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 goes up in my head and I immediately request the client to let me do a couple of weeks of due diligence. One of the many, ubiquitous, sweetheart deals is ownership of shares in company in exchange for some benefit from the foreign partner. Too often, the
Continue readingDo you Need to Enter the Korean Market via a Joint Venture/Partnership?
One of the major parts of our law practice here at IPG Legal for international clients, in Korea, is the structuring of joint ventures and the resolution of joint venture disputes in Korean courts and through arbitration. I find, in many of these cases, the non-Korean party is not in need of a joint venture with a Korean party to succeed in Korea and the Korean party does not realize or has no intent in satisfying obligations under the joint venture agreements. The parties are commencing a
Continue readingKorean Jurisdictional and Choice of Law Issues in Commercial Agency & Distributor Agreements with Korean-based Agents & Distributors
In drafting and negotiating a Korean commercial agency agreement between a principal located in one country and an agent located in Korea, proper consideration needs to be given to the choices regarding the governing law and jurisdiction of such an agreement. If you are looking for an article on choice of law issues in Korean employment disputes, please see: Choice of Law Issues in Korean Employment Law Disputes. If you are looking for a basic overview of Korean Agency & Distribution Law please see: Korean Agency Law
Continue reading14 Things to Consider Before Starting a Manufacturing Business in South Korea
Korea, in many cases, is a better choice for the manufacturing of chemical, petroleum, construction equipment, complex crafted metals, specialty steel, automotive parts, semi-conductor, medical and pharmaceutical equipment and goods than China and most nations in Asia, because of Korea’s skilled work force, government incentives, protection of IP and increasingly transparent business practices. In many cases, manufacturing in Korea will not, in the end, be more costly than manufacturing in China, because of the increased efficiency of Korean workers and the, often, lower cost of doing business
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