A recent decision of the Seoul Central District Court highlights the potential exposure faced by companies that manufacture or sell products incorporating designs developed by third parties without authorization from the 3rd party. In Case No. 2025Gadan106047, the court ordered Lotte Chilsung Beverage Co., Ltd. and an event-management company to jointly and severally pay KRW 39 million to a designer for the intentional infringement of a registered design right. The award represented twice the amount of the designer’s actual damages as calculated by the court. Facts Design
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Are Foreign Patents Subject to Taxation in Korea?
Yes. The Korean Supreme Court held that a foreign patent not registered in Korea is subject to taxation if used in a domestic manufacturing process in Korea. The Supreme Court of Korea overturned the lower court’s holding in a lawsuit filed by a U.S. company against a Korean tax office and remanded the case to the Suwon High Court. The case sheds light on the need for carefully drafted agreements with a No Tax Deduction Clause that mandates that all local taxes are the sole responsibility of
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
Continue readingKorean Technology Collateralization & Cross-Border M&As with Korean Companies: Korea’s Restrictions on the Transfer of Korean National Core Technologies
Key Amendments to the Korean Industrial Technology Protection Act and the Korean Fifth Comprehensive Plan for the Prevention of Divulgence and Protection of Industrial Technology On December 27, 2024, Korea’s National Assembly passed a major amendment to the Act on the Prevention of Divulgence and Protection of Industrial Technology (the “Amended Industrial Technology Protection Act” or “Amended ITA”). The revised framework significantly tightens restrictions on industrial technology transfers, particularly National Core Technologies (“NCTs”). The major impetus for the amendment is to protect Korean technology from misappropriation by
Continue readingKorean Supreme Court Convicts Taiwanese Company for Trade Secret Theft: Key Lessons for Global Businesses
In August of 2025, the Supreme Court of Korea’s Second Criminal Division (Case No. 2022Do8664) issued a landmark ruling against Everlight Electronics, a Taiwanese LED manufacturer, for stealing the trade secrets of Seoul Semiconductor, a Korean competitor. The Court imposed a fine of KRW 60 million under the Industrial Technology Protection Act and the Unfair Competition Prevention Act of Korea, affirming that Korean courts may exercise jurisdiction over foreign corporations when unlawful conduct occurs in Korea. The case is particularly important for foreign capital-invested companies doing business
Continue readingEnforcing Prohibitions on Parallel Imports into South Korea: A Case Study
The Korean courts have historically shown reluctance in enforcing prohibitions on the importation of non-counterfeit grey-market products into South Korea. This can present challenges for international brands and distributors seeking to protect their intellectual property rights in the Korean market. However, proactive legal counsel in Korea can help brands develop strategies to safeguard their interests. Some strategies are well-known, while others arise from unique experiences garnered from conducting business in Korea. For additional information on Korean Intellectual Property Law, please see: IPG Legal’s Korean Intellectual Property Law Archive.
Continue readingKorean Patent Act, Korean Utility Model Act, Korean Trademark Act, and Design Protection Act of Korean Amendments for 2025
In December 2024, the National Assembly of Korea passed amendments to the Korean Patent Act, the Korean Utility Model Act, the Korean Trademark Act, and the Korean Design Protection Act. These amendments were promulgated on January 21, 2025, and will take effect on July 22, 2025. For more information on Korea’s Intellectual Property Law, please see: IPG Legal’s Intellectual Property Law Archive. Amendments to the Korean Patent Act and the Korean Utility Model Act The Korean Patent Act and Korean Utility Model Act have been criticized by
Continue readingProtecting Technology in Korea through Filing a Criminal Suit Against an IP Violator
The following case demonstrates that companies doing business in Korea can help protect intellectual property in Korea by aggressively defending intellectual property rights through Korean courts. For an article on pragmatic approaches to protecting your IP under Korean Law, please see: How to Protect Your Intellectual Property in Korea. The Korean Supreme Court upheld the sentence of the vice president of a SK Hynix partner company who leaked key SK Hynix core semiconductor technology and equipment drawings to a Chinese company. Supreme Court’s SK Hynix Trade Secret
Continue readingProtecting your Brand from Grey Market Products Coming Into or Out of Korea
Parallel Importing, in general, is legal in Korea. A grey market import, also known as parallel import, is the sale of a product through unofficial/unauthorized channels. Often, this occurs across international borders. For example, the goods are purchased in the United States, where they are readily available, and then imported into Korea, where they are more expensive or difficult to obtain through official channels. Some manufacturers have different pricing in different markets; thus, they wish to maintain this pricing by restricting these parallel imports. The products themselves
Continue readingKorean Information Protection Disclosure Obligations of the Korean Ministry of Science and ICT
The Korean Ministry of Science and ICT implemented new criteria for companies subject to Information Protection Disclosure Obligations under Korean Law. The companies required to disclose must disclose by June 30, 2025. Non-compliance may lead to a fine of up to KRW 10,000,000. Article 13(2) of the Korean Act on the Promotion of Information Protection Industry requires companies that meet particular criteria to disclose particulars related to staffing and investment related to information protection efforts, including, certifications, monetary investments, staff, audits, and other activities and assets dedicated
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