We receive many emails concerning our Korean debt collection services and this answer is an answer that I give for most debt collection matters, in Korea, involving debts with debtors that appear solvent. 1. Obtain a Payment Order and send a Demand Letter (지급명령) A Payment Order Complaint is filed to the court in Korea and this complaint, if accepted by the Korean court, is served on the debtor-defendant. If the complaint is not answered in 14 days by the defendant the case is finalized and this
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Korea Contracts Don’t Forget the Counter-party: Due Diligence before Executing an Agreement in Korea
We see numerous matters coming before us from parties in the States or Europe that are importing a product from a Korean company. Of course, the products are either faulty or never come. We, also, see cases where a Korean company is importing a product and the importing party ends up not being the party that the American or European company thought they were doing business with. Also, often, companies in Korea are broken up into smaller companies. The manufacturing arm may be one company, the sales
Continue readingWeekly Korean Legal News From International Law Firm – IPG Legal for the Week of July 21, 2014
Weekly Korean Legal News From International Law Firm – IPG Legal for the Week of July 21, 2014Korean Legal News Reported by the Media on the Week of July 21, 2014 South Korea Plans $40 Billion Stimulus to Tackle Weakening Growth Seoul to push tax on corporate cash reserves U.S. Chamber of Commerce chief urges FTA implemantation Workers in Their 60s Outnumber 20-Somethings Mortgage deregulation raises concerns Most Recent Posts from the Korean Law Blog Debt Collection in Korea: Foreign Creditor vs. Bankrupt Korea Debtor Opportunities in
Continue readingSecurity on Movable Property and Receivables in Korea
The Ministry of Justice has recently announced a draft bill concerning the securitization of movables and receivables. The Bill has been pushed for strongly by SMEs. SME’s have complained, since the 1997 Currency Crisis, that they are unable to adequately capitalize at market rates. Representatives of the IMF, whom I spoke with a few years back, were also very keen on this type of bill. They believed that this Bill would help foster SMEs and new entrants’ potential for innovation and growth. If you are interested on
Continue readingDo you Sell Buggy Whips? Succeeding in a Competitive Korean Market
In many ways, the 19th century continued until the outbreak of World War I. The 20th century ended with the fall of Lehman Brothers. In confusing times such as these, it is natural for people to draw parallels as a way to understand current events surrounding us. They hope to gain some insight on an uncertain future. Here are some examples: A recent issue of BusinessWeek suggested that America of 2009 may learn from Japan of the 1990s. In Korea, journalists, businesspeople, and even some economists refer
Continue readingKORUS FTA: Impacts on Trade & Investment for Korea and the States (Guest Post by NerdWallet Journalist)
Guest Post by Maxime Rieman of NerdWallet In March 2012, the U.S.-South Korea Free Trade Agreement (KORUS FTA) went into effect after years of bilateral negotiation and months of contentious debates in both nations. After the North American Free Trade Agreement (NAFTA), this is the largest free trade agreement to which the United States has pledged itself. KORUS FTA covers a wide range of investment and trade matters and reduces each nation’s tariffs on the other’s goods by 95% over half a decade. Given the close economic
Continue reading10 Top Cities in Asia for FDI in 2012- One Korean City on the List
The Financial Times, yearly, posts on its Financial Intelligence site a ranking of the top 10 destinations in Asia for Foreign Direct Investment. One Korean city appears on the list, three Chinese cities and four Australian cities along with the usual characters. 1. Singapore2. Melbourne3. Hong Kong4. Brisbane5. Sydney6. Busan7. Auckland8. Perth9. Guangzhou10. Chengdu ________Sean Hayes may be contacted at: SeanHayes@ipglegal.com. Sean Hayes is co-chair of the Korea Practice Team for an international law firm. He is the only non-Korean to have worked as an attorney
Continue readingFinding a Korean Distributor: Top 10 Things to Know Before you Jump into Bed with an Agent in Korea
Too often we deal with clients looking to collect unpaid invoices from distributors/customers in Korea and resolve IP and other disputes between these distributors/customers because of clients rushing into relationships without vetting out the anticipated distributor or having a very poorly drafted distribution agreement. Many distributors in Korea are fantastic, while, others are nothing more than order processors -they, simply can’t or don’t want to sell. Additionally, in these tough economic times, too many companies, in Korea, are struggling to stay afloat. If your distributor doesn’t know
Continue readingKorea Due Diligence: Not So Different From China
Steve Dickson wrote a great article entitled China Due Diligence. Not Optional – that I will steal and copy at length. His article appears on the China Law Blog. Most companies are not aware that due diligence is required whenever you do any kind of business with a Chinese company. If you do not already know the Chinese company with which you will be conducting business, you must confirm that the company really does exit and that you are dealing with the actual company and not an
Continue readingDue Diligence of Korean Companies
With the recent economic crisis, my Korean law firm has received a noted increase in the number of calls concerning collecting debts from Korean debtors. The creditors have been mainly SME U.S. & British companies. Most of the matters concerned unpaid invoices and commercial loans. A few of the calls concerned scams by Korean exporters. A few basics steps can help your company not to be duped by Korean businesses and obtain the money you are owed. Due Diligence of Korean Exporters & Importers Request the Korean company’s business
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