A recent Korean Supreme Court decision has fundamentally reshaped litigation risk analysis under the Personal Information Protection Act (PIPA), particularly regarding statutory damages under Article 39-2(1) of PIPA. The following post is essential reading for CISOs and those entrusted with company data. Contrary to widespread assumptions in the compliance community in Korea, the Korean Supreme Court confirmed that: A personal information processor may avoid statutory damages by proving that the data subject suffered no compensable mental damage — even where a data breach occurred. This ruling is
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Internal Data Sharing Between Departments in Korean Companies under PIPA: Korean Personal Information Protection Act Basics
In many Korean companies, internal data sharing between departments is mistakenly viewed as a simple operational matter rather than a regulated activity that may lead to criminal sanctions, fines, and reputational damage. Intra-company data movement in Korea is generally not classified as a third-party disclosure; it is nevertheless subject to strict statutory principles, including purpose limitation, data minimization, accountability, and mandatory safeguards. From a regulatory perspective, the Personal Information Protection Commission (PIPC) has increasingly focused not only on external breaches but also on governance failures involving internal
Continue readingCan a Foreign Company Doing Business in Korea be Deemed a Domestic Company for Korean Tax Purposes and Taxed on Worldwide Income by the Korean National Tax Services?
If Korea deems a foreign-incorporated company a Domestic Corporation, the company shall be taxed on its worldwide income. The relevant Korean law under which this determination is made is the Corporate Tax Act of Korea (“CTA”). In the typical case, the National Tax Service of Korea designates a foreign-incorporated company as a Domestic Corporation and requests details on overseas earnings to impose tax on the company. Of course, this leads, invariable, to your Korean tax lawyer challenging the determination to the Korean courts. Domestic Company Tax Residency
Continue readingKorean Litigation Disclosure Requirements under the Korean Capital Markets Act
In a precedent-setting decision, the Supreme Court of Korea clarified the scope of disclosure obligations under the Korean Capital Markets Act, holding that the requirement to disclose “lawsuits that will have a significant impact on securities” is limited to lawsuits directly concerning securities themselves, and does not extend to all lawsuits merely because they may affect a company’s stock price. On December 4, 2025, the Korean Supreme Court’s Second Civil Division overturned part of the lower court’s judgment in a shareholder damages action against the CEO and
Continue readingKorean “Temporary Worker” Right to Employment Security under the Korean Labor Standards Act
A Korean court ruled that even if a worker is 55 years of age or older and hired as a temporary worker, the right to contract renewal is “continuously recognized unless there are special circumstances.” The Seoul Administrative Court ruled in favor of an employee on October 31, 2025, in a lawsuit filed by the Employee against the Central Labor Relations Commission of Korea, holding that non-renewal of the contract period constituted an unfair dismissal under the Korean Labor Standards Act. Facts1. Employee worked as a conductor
Continue readingKorean Criminal Liability Risks for Foreign Executives & Directors in Korea: Korean Exposure, Enforcement Trends, and How to Reduce Risk
Foreign executives operating in Korea are often surprised to learn how quickly routine corporate decisions can escalate into personal criminal liability and Korean immigration issues. Unlike many Western jurisdictions, the Korean legal system frequently treats civil matters as criminal, to the angst of foreign directors in Korea. As a result, foreign directors and executives in Korea frequently find themselves subject to police investigations, prosecutor questioning, travel restrictions, or even indictments. This article outlines the most common sources of criminal exposure for foreign executives and directors in Korea,
Continue readingIPG Legal Expert Opinions on Korean Law for Foreign Courts and Law Firms
As complex cross-border litigation, arbitration, and international transactions continue to increase in Korea, foreign courts and overseas counsel are frequently required to apply or assess Korean law and the Korean legal system. In such cases, accurate and nuanced interpretation of Korean statutes, judicial precedent, and regulatory practice is essential. IPG Legal regularly works with foreign lawyers and courts to provide expert opinions on matters governed by Korean law. We often appear in court and provide legal opinions worldwide. The Role of Korean Law Expert Opinions in Cross-Border
Continue readingPunitive Damages Under Korea’s Personal Information Protection Act: The Coupang Data Breach Incident
The recent Coupang personal information leak incident has renewed discussion in Korea on the scope and effectiveness of punitive damages under Korea’s Personal Information Protection Act (PIPA) and also the extension of punitive damages beyond this act. Although the statute permits limited, capped punitive damages in certain circumstances, Korean courts have been conservative in applying these provisions, and several structural issues continue to limit their practical effect. Lawyers in Korea are increasingly criticizing the legal system for providing inadequate damages to the injured. We shall update the
Continue readingWhy Using an Uncontrolled & Monitored Korean Local Director/Representative Director Is Dangerous for Foreign Investors in Korea
Foreign investors entering Korea are often told they “need a local director,” “because that’s how things are done here. On paper, this looks harmless. In reality, appointing a representative director, sole director, or director you do not genuinely supervise or control can be legally and commercially dangerous. “Local Director” Has Full Duties and Liabilities In Korea, the law makes no distinction between a “nominee” director and any other director. If you are on the board, you owe the full suite of fiduciary and statutory duties, regardless of
Continue readingU.S. Foreign Corrupt Practice Act Basics for Companies Doing Business in Korea
If you are working for a U.S. company with operations in Korea or for a company headquartered in most other developed economies, you may be subject to anti-corruption laws in both your home jurisdiction and Korea. Violations often occur unintentionally through routine interactions with Korean government officials or quasi-government entities, or even by actions by your agents. To avoid potential criminal liability, civil fines, reputational harm, or harm to your employer doing business in Korea, it is essential to understand what constitutes a “corrupt payment” under the
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