Article 355 of Korea’s Criminal Act defines embezzlement as: “a person who, having the custody of another’s property, embezzles or refuses to return the property shall be punished by imprisonment for not more than five years or a fine not exceeding fifteen million won.” In a landmark case in Korea’s Franchise Jurisprudence, the Supreme Court ruled a franchisee may not be held criminally liable for embezzlement for “arbitrary spending of funds” and not paying franchise fees under the franchise agreement, since the Supreme Court deemed that the
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Searching Trademark & Service Marks in Korea: Register your Trademarks/Service Marks Prior to Doing Business in Korea
Prior to marketing products, services or a business in Korea do a thorough search for like trademarks/service marks in Korea, then, have your trademarks/service marks registered in Korea – if you don’t want the added cost of litigating a matter at a Korean court. If you have patents, don’t forget to, also, register your patents and other intellectual property. Your U.S. and E.U. trademark, service mark and patent filings are not enough. These “international filings” only gives you a grace period to file outside of these jurisdictions.
Continue readingRegistration of a Korean Franchise Disclosure Document under Korea’s Revised Franchise Law
We are happy to report that we have, recently, succeeded in registering the disclosure document of a franchise in Korea. Our client, a leading U.S. franchise, came to us hoping to take advantage of Korea’s dynamic franchise market. We have an active franchise and distribution law practice team lead by a retired Korean court judge and little ole me. For the leading guide on Korean Franchise Law see: ICLG Guide to Franchising’s Korean Law Chapter by IPG Legal. When Korea’s franchise law was amended in 2014, there
Continue readingChanges to Korea’s Franchise Law May Lead to an Increased Potential for Criminal Sanctions: Franchise Law Basics
The Fair Transactions in Franchise Business Act of Korea was amended on August 13, 2013 and became effective on August 14, 2014. The, facial, reason for the change in the Act is noted in an announcement by the Korean government on the reason for the amendment. The facial reason for the amendment shows the rationale for imposing criminal sanctions for acts that don’t constitute “crimes.” Korean Government’s Stated Reason for the Amendment: “Recently, there is a rapid and growing tendency to engage in franchising because of the
Continue readingWeekly Korean Legal News From International Law Firm – IPG Legal for the Week of July 28, 2014
Weekly Korean Legal News From International Law Firm – IPG Legal for the Week of July 28, 2014Korean Legal News Reported by the Media on the Week of July 28, 2014 IMC may blacklist Korean builders over collusion Prosecutors continue probe into ferry owner’s driver Foreign workers upset by severance pay formula Restructuring urgent for big Korean companies Relocation of USFK Headquarters to Go Ahead Most Recent Posts from the Korean Law Blog This slot is reserved for the new article Korean Franchise Law Basics for Franchisors
Continue readingKorean Franchise Law Basics for Franchisors Intending to Do Business in Korea
Over the next week couple of weeks we will be posting articles on the updated Korean Franchise Law. The articles will be listed below. The articles will address the major issues facing franchisors in the Korean market. If you have any topics that interest you or will interest other readers – please advise. For the leading guide on Korean Franchise Law see: ICLG Guide to Franchising’s Korean Law Chapter by IPG Legal.Articles on the Basics of Korean Franchise Law: Distribution Agreements in Korea: Crawl before you Walk
Continue readingStatus of Interns Under the Korean Labor Standards Act: Employees Entitled to Severance/Minimum Wage?
Interns in Korea may be considered Employees under the Korean Labor Standards Act, thus, entitling the interns to minimum wage, severance, and numerous other protections and benefits under the Act. The matter is having an impact on franchises, entertainment companies, and other SMEs. The, incredibly vague, Employment & Labor Ministry Guideline 826 (April 7, 2009) notes, in part, that: If a person is considered an employee under the Labor Standards Act shall be determined by considering the subordinate relations with the employer collectively – with regard to
Continue readingSean Hayes Attends American Bar Association’s Forum on Franchising
IPG has one of the leading practices in Franchise and Distribution in Asia. Sean Hayes will attend the American Bar Association’s Forum on Franchising. From the event’s brochure: Welcome to the 36th Annual forum on Franchising at the Rosen Shingle Creek Resort in Orlando, Florida on October 16-18, 2013. Starting on Wednesday, October 16, highly-experienced franchise attorneys will present Fundamentals of Franchising, the finest course available on the basics of franchise law. Two additional five-hour intensive programs will also be offered: an in-depth program on the theory
Continue readingKorean Franchise Law Basics: Korea’s Act on Fairness in Franchise Transactions
Korea has seen its share of unscrupulous local franchisors. Issues with local franchisors have led to Korea adopting one of the most franchisee-friendly franchise laws in Asia. The first comprehensive franchise act in Korea was passed in 2002. This act was substantially amended in 2007 and some revisions were made in 2010. For a recent post on Amendments to Korean Franchise Law please see: Amendments of Korean Franchise Law for 2021. The Act on Fairness in Franchise Transactions may be found on the website of the Korean
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