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
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U.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
Continue readingDistribution Agreements in Korea: Crawl Before you Walk
Prior to going into any relationship with a distributor/agent in Korea, please read my post entitled: Finding a Korean Distributor: The Top 10 Things to Know Before Going to Bed with a Distributor in Korea. Please read that post in combination with this post, prior to engaging a distributor in Korea. We see too many Korean distribution and agency agreements that are merely spun U.S. or European agreements. Please have your Korean distribution agreement and all agreements you have in Korea drafted by an experienced and proactive attorney who
Continue readingProbationary Periods in Korean Employment Agreements: Korean Court Rules in Favor of Employee in Unfair Dismissal During Korean Probationary Period
Many employers in Korea, often due to ill-advised counsel, mistakenly believe that Korean probationary employment periods permit them to terminate workers without justification or even written notification. A recent ruling by the Seoul Administrative Court clarifies that probationary periods are not merely “evaluation periods,” and dismissing Korean employees during or immediately after probation requires specific, iterated grounds and compliance with Korean labor law formalities. For additional blog posts on Korean Labor & Employment Law, see: IPG Legal’s Labor & Employment Law Archive. Korean Probationary Employment Case Overview
Continue readingCoupang Fulfillment Services in Korea Found Liable for Unfair Dismissal and Union Suppression by Seoul Administrative Court
Coupang, an e-commerce company with its primary business in Korea, was found to have committed unfair labor practices in violation of Korea’s Trade Union Law and unfairly dismissed a worker in Korea in breach of the Korean Labor Standards Act. Coupang has been accused, on numerous occasions, of labor violations by foreign and domestic employees working for Coupang. NOTE: For full disclosure, IPG Legal is engaged for cases against Coupang by executives working for Coupang in Korea. While IPG Legal is typically engaged by foreign companies doing
Continue readingKorean Company CEO’s Criminal Liability for Workplace Safety under the Korean Occupational Safety & Health Act and Korean Serious Accidents Punishment Act
A recent judgment by the Changwon District Court in Korea (Case No. 2025Godan1381) highlights the increasing potential for criminal liability of CEOs and executives in Korea under the Occupational Safety and Health Act of Korea (OSHA) and the Serious Accidents Punishment Act of Korea (SAPA). On August 29, 2025, a Korean court sentenced the CEO of a painting company to one year in prison, suspended for two years, after a 46-year-old foreign worker fell to his death while repainting an apartment roof in Gimhae City, Korea. The
Continue readingKorea–U.S. Gyeongju Trade & Security Talks: What Was Negotiated, What’s Binding, and What Companies Should Do Now
The following is a basic summary of the known results of the Korea-US Gyeongju Meeting between the United States and the Republic of Korea. We shall update the reader as more details become available. Korea and the U.S., as is typical at this stage, have a mere framework agreement. Major Outcomes of the U.S. – Korea Trade Discussions Is any of this legally binding? Short answer: Not yet – in a treaty sense. What we have is a leaders’ agreement/framework that still needs to be translated into
Continue readingKey Provisions for Korean Employment Rules for Companies Doing Business in Korea
Under the Korean Labor Standards Act (LSA), companies employing ten or more workers in Korea must prepare and file “rules of employment” (근로규칙) with the Korean Ministry of Employment and Labor. These internal regulations set out the basic working conditions, procedures, and policies that govern the employment relationship between the employer and employee. Even smaller employers are encouraged to adopt written rules, as they serve to prevent disputes and promote transparency. For additional articles on Korean Labor & Employment Law, see: IPG Legal’s Labor Law Archive. When
Continue readingShareholder Rights Disputes under Korean Law: Key Korean Supreme Court Cases
Shareholder disputes in Korea often revolve around a few recurring issues. The primary jurisprudence on shareholder disputes in Korea pertains to access to information, the duty and liability of directors, the fairness of control-related issuances, and exit/value protection through appraisal rights. For more information on Korean Corporate Law, please see: IPG Legal’s Korean Corporate Law and Compliance Archive. Below is a practical roadmap and guide based on recent and leading Korean Supreme Court holdings. Access to Information: Books & Records (KCA art. 466) in Korea In Korean
Continue readingProtecting Minority Shareholder Rights under Korean Law: A Legal Guide by IPG Legal Law Firm
Minority shareholders in Korea often find themselves navigating a Korean corporate environment dominated by controlling families, holding companies, savvy sharks, and complicated chaebol structures. The situation seems daunting, but with recent changes to Korean Law, minority shareholders have more avenues to redress controlling shareholder/management issues. The Korean Commercial Act (KCA), supplemented by the Capital Markets Act of Korea for listed entities, provides a range of rights intended to protect minority shareholders from abuse, cash burns, self-dealing, and tunneling. However, success depends on strict compliance with thresholds, timelines,
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