Our law firm has worked with foreign clients of all shapes and sizes doing business in Korea. Surprisingly, we see many of the same issues with our multinational clients as with our SME clients, so we drafted this post. TOP TEN ERRORS OF COMPANIES IN THE KOREA MARKET Am I missing anything? Sean Hayes 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 non-Koreans to be a regular member of a Korean law
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Succeeding 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 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 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
Continue readingKorean Intellectual Property Theft Enforcement/Monitoring Program by IPG Legal
Because of an increase in interest from clients in flat-fee services, we have created a Flat-Fee Billed IP Theft Enforcement & Monitoring Program for our Korea & China offices. The fee scale is based primarily on the following factors: Geographical Scope of the IP Monitoring; Number of Cease & Desist Letters Mailed; If the IP Theft will be Reported to the Prosecution; and If a Civil Suit is Required to be Filed. We are utilizing the same group of retired Korean judges, prosecutors, and attorneys for this
Continue readingAre MOUs & LOIs Legally Binding in Korea? Enforceability of MOUs and LOIs under Korean Law
Foreign companies and individual investors entering the Korean market sometimes assume that a Memorandum of Understanding (MOU) is merely a non-binding document used to outline preliminary discussions and thus not enforceable under Korean Law. Under Korean law, that assumption is frequently wrong and sometimes leads to litigation and even criminal complaints being filed to the Korean Prosecution Services. An MOU in Korea may be fully enforceable, partially binding, or non-binding, depending not on its title but on its content, structure, the parties’ course of dealing, and their
Continue readingDrafting & Negotiating Korean Joint Venture/Shareholder Agreements in Korea: Why Language, Governance, and Arbitration Clauses Matter
We have many clients who find it advisable to enter the Korean market through joint ventures with Korean partners. In many cases, this structure makes commercial sense: the Korean partner brings local market knowledge, relationships, regulatory familiarity, and operational experience, while the foreign partner contributes capital, technology, branding, and/or international distribution. However, joint ventures in Korea generate a disproportionate number of disputes involving foreign investors. In our experience advising multinational companies, many of these conflicts do not arise from bad faith or intentional misconduct. Instead, they arise
Continue readingTrade Secret Protection Act Crimes in Korea Clarified by Supreme Court of Korea
In a ruling that is important for technology companies, multinational employers, and cross-border R&D stakeholders, the Supreme Court of Korea (Third Criminal Division, January 15, 2025, 2025Do13231) held that the crimes of acquiring, using, and disclosing trade secrets under the Unfair Competition Prevention and Trade Secret Protection Act of Korea must be independently examined rather than analysed as a single course of conduct. This decision, arising from a high-profile semiconductor trade secret case involving a former Samsung Electronics executive and the alleged leakage of 18nm DRAM process
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