This is a post by Tom Coyner from over a decade ago on Korean Unions, but it is still valid for today. Korea, the Land of Perpetual Crisis, is facing yet another crossroads—this time, the focus is on renewed challenges facing manufacturing. The weakening Japanese yen, together with the growing strength of Chinese manufacturing, not to mention rising Korean labor costs, is placing Korea once again as the proverbial shrimp between two whales. In fact, much of the real growth of Korean manufacturing is happening in Korean-owned
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Relocation of a Worker Based in Korea for Allegations of Stalking: Korean Employment Law Updates
A Seoul Administrative Court ruled that it is lawful for an employer, even before a stalking charge was adjudicated, to change an employee’s workplace when the employee is identified as the perpetrator of stalking against an alleged victim, provided that a report was filed with the employer. In May 2026, the 3rd Administrative Division of the Seoul Administrative Court ruled in favor of the Employer. Facts Seoul Administrative Court Holding The Employee, in short, argued that: “Taking personnel action on someone with the assumption they are a
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 readingDealing with Korean Employees and Suppliers by Tom Coyner
*This is a post by Tom Coyner from nearly two decades ago. We thought that, given recent employment law changes in Korea, the post would be a useful repost. Even for so-called Old Korean Hands, knowing what to expect, without knowing why, can lead to needless frustrations and often delays in getting things done in business in Korea. As the old adage goes, time is money, so knowing the root causes of delays offers potential insights on how to clear log jams. While we do not have
Continue readingShall Korean Bonuses be Utilized for Calculating of Average Wages for Severance Payment Calculation Purposes?
The Supreme Court of Korea ruled that Hanwha Ocean (formerly Daewoo Shipbuilding & Marine Engineering)’s performance-based bonuses should not be considered wages for the calculation of severance payments under Korean Law. For additional articles on Korean Employment & Labor Law, see: IPG Legal’s Labor & Employment Law Archive On March 12, 2026, the Korean Supreme Court (2025da210219) upheld a lower court’s ruling in favor of the defendants in a lawsuit filed by 972 current and former Hanwha Ocean employees seeking severance pay based not only on salary
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
Continue readingCan you Revise Employment Rules in Korea without the Agreement of Employees?
The Guidebook on Wage System Reform, published by the Korean Ministry of Employment & Labor, has sparked more interest, in the private sector, than the revamping of Korea’s wage system based on seniority. This post was reposted after a first posting in 2017, because of a newfound focus on wage system reform. The major issue, in this regard, is whether the Rules of Employment of a company may be amended, without violating the Korean Labor Standards Act of Korea (“LSA”), when “wage system reform” is not consented
Continue readingSK Hynix Injunction Against Employee Rejected by Seoul Central District Court
SK Hynix lost an injunction case seeking to enjoin a former employee from transferring jobs to Samsung Electronics (2025KaHap21284). SK Hynix did not appeal the decision, and the decision was finalized on January 20, 2026. For an article on the Korean Supreme Court precedent on the enforceability of Non-Compete Clauses, please see: Non-Compete Clauses in Korea Facts SK Hynix Restrictive Covenant Enforcement Case at the Seoul Central District Court Holding On January 9, 2026, a Seoul Central District Court dismissed SK Hynix’s application for an injunction enjoining a
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 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
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