Starting a small business in Korea can be enjoyable and profitable if you get the business on the right track from the start. Too often we see those with “limited funds” (we all have limited funds -even multinationals have limited funds) choosing to forgo having the deals structured by a professional and just downloading a “partnership” agreement off the internet. Avoid the headaches and the costs in the future and structure all right from the start. I have learned from my two decades working in Korea (Can’t
Continue readingCategory: Korean Franchise Law
Foreign Franchisees Joining the Korean Franchise Association
The Korean Franchise Association is an organization that is authorized/licensed by the Korean Ministry of Trade, Industry & Energy. All domestic and foreign franchises that have registered Franchise Disclosure Statements with the Korean Fair Trade Commission can apply to the Korean Franchise Association. IPG Legal believes, most foreign franchisors, should join the Korean Franchise Association. The KFA is an excellent resource for market intelligence and an excellent conduit to understand the unique aspects of the Korean franchise market and Korea’s Franchise Laws. Many clients of IPG joined
Continue readingMaterial Omissions in Korean Franchise Disclosure Documents in South Korea
In April of 2015, the Supreme Court of Korea ruled that under Article 4; Article (9)(1); and Article 41(1) of the prior version of the Fair Transactions in Franchise Business Act (“Franchise Act”) damages may be obtained, from a franchisor, for all material omissions (Supreme Court 2014 DA 84824,84831, April 9, 2015) within Korean Franchise Disclosure Documents. Thus, we advise all franchises in Korea to review and update their franchise agreements, thoroughly, on a yearly basis. Damages for Material Omissions in Franchise Agreements in Korea Monetary damages
Continue readingRequire a Injunction in a Korean Court Against your Former Korean Franchisee for Competing Against your New Korean Franchisee?
Under the Fair Franchise Transactions Act of Korea (“Franchise Act”), a franchisee has the right, under Korean Law, to request the renewal of a Korean franchise agreement after ten years of successful operation of a franchise. In some cases this reality leads to a Former Franchisee continuing the franchise in competition with your new franchisee. We wrote about termination of a Korean franchise in other articles including: Termination of a Franchise in Korea. Also, you can view other articles on Korean Franchise Law at: Korean Franchise Law
Continue readingTop Law Firms in Korea for English-Speaking Clients According to 10 Magazine
We are proud to note that 10 Magazine listed us in an article titled 10 Lawyers in Seoul for English-Speaking Expats in Korea. IPG is listed under the title Large/International Law Firms. Thanks for the mention 10 Magazine. We love your work. IPG Legal and many of our lawyers were listed as top attorneys by numerous legal rating services and magazines. Sean Hayes was, also, rated a top 100 Attorney. To learn more about IPG Legal please check out our website at: IPG Legal. The article by 10
Continue readingInternational Arbitrations in Korea under the IBA Rules
Procedural Arbitration rules are key to the efficient and effective adjudication of arbitration disputes in Korea and, also, worldwide. These arbitration rules govern and set out the framework for the arbitration process. Evidence gathering and presentation are important aspects of the above procedure, and yet, institutional and ad hoc rules that provide arbitration guidelines on other matters such as the appointment of arbitrators and the nature of award and costs are, usually, silent on this point. Advantages of such a purposeful gap in the rules are party
Continue readingTips for Start-up Success in Korea: Korean Business Basics
Despite the economic challenges presented by the COVID pandemic, there are still plenty of opportunities for start-up companies in South Korea. Many of the long-term foreign attorneys in Korea shall advise that South Korea remains a perfect testbed for foreign companies in the East Asian marketplace. Local and national governments remain committed to fostering long-term partnerships with foreign start-ups within Korea. The attorneys at IPG Legal have put together a list of their top tips to help your start-up succeed in Korea. Take advantage of start-up programs
Continue readingKorea Focuses on Greater Control over Imported Food – Amendment to the Special Act on Imported Food Safety Control 2019
The Special Act on Imported Food Safety Control was recently amended and shall strengthen the on-site inspections of foreign establishments, which already export food to Korea, as well as those, which apply for registration of the importation of overseas food. The Amendment was proposed in early April 2019 and shall become effective upon promulgation. We expect substantially heightened risk for importers and an increase in the price of many imported goods. Major Provisions of the Korean Amendment to the Special Act on Imported Food Safety Control Food
Continue readingKorean Patent Law’s Trade Secret Protection: Amendment to Trade Secret Law in Korea
The amended Patent Act of Korea (“Korean Patent Act”) and the amended Unfair Competition Prevention and Trade Secret Protection Act (“Korean Trade Secret Protection Act”) of Korea shall enter into force on July 9, 2019. The most important key developments are great criminal penalties for trade secret misappropriations; damage awards up to three times of the actual damage regarding infringements of patent rights or trade secret rights; eased litigation requirements for the claimants; and a revised basis for calculating royalty damages. These amendments are expected to lead
Continue readingDigital Forensic Reviews at the Korean Fair Trade Commission
The Fair Trade Commission of Korea (“KFTC”) implemented in April 2018 rules governing the review of digital evidence in investigations of businesses at the KFTC. The rules are entitled the Regulations on Collection, Analysis and Management of Digital Evidence (“Digital Forensic Evidence Review Rules”). The rules have changed the manner of executing investigations at the KFTC in cases where the KFTC perceives a need for a detailed forensic audit. As of 2017, the KFTC has engaged in digital investigations via a division named the “Digital Investigation and Analysis
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