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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Succeeding in Business in Korea by Tom Coyner Business Advisor for IPG Legal
Since 1977, I have observed the rise and fall of many foreign companies in South Korea. I have witnessed the trials and tribulations as a bank employee, a high-tech salesman, a country manager, and as a business consultant of foreign and Korean companies doing business in Korea. Bluntly speaking, while some foreign ventures have had some unlucky breaks, those companies that have succeeded in the Korean market have done so for good reasons. And those who have failed have done so largely because of their own inadequacies
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 readingHiring a Korean Independent Contractor for Work in Korea
We receive many requests for drafting Korean independent contractor agreements, and we sometimes decide with the client that it is better to have a Korean distribution or agency agreement with a Korean company, because of uncertainty in Korean Labor & Employment Law and other reasons. Korea’s court decisions on Korean Labor Law are as predictable as the Korean weather, and the standard to determine if one is an independent contractor or an “employee” is as clear as a Beijing sky. For a further explanation of this issue, see: Korean
Continue readingWhy Using an Uncontrolled & Monitored Korean Local Director/Representative Director Is Dangerous for Foreign Investors in Korea
Foreign investors entering Korea are often told they “need a local director,” “because that’s how things are done here. On paper, this looks harmless. In reality, appointing a representative director, sole director, or director you do not genuinely supervise or control can be legally and commercially dangerous. “Local Director” Has Full Duties and Liabilities In Korea, the law makes no distinction between a “nominee” director and any other director. If you are on the board, you owe the full suite of fiduciary and statutory duties, regardless of
Continue readingBusiness Opportunities for Foreign Companies in South Korea
South Korea is an excellent testing ground for determining the feasibility of your business in other Asian markets, such as China or Japan. The country has also proven more profitable for many companies than the often elusive “Chinese Middle Class.” For more information on Doing Business in Korea, please see: IPG Legal’s Corporate Law Archive. The following is a list of some industries in Korea that have proven successful for foreign companies and entrepreneurs: 1. Franchises. The franchise market in Korea is booming. All major players are
Continue readingKorean License Agreements: 8 Musts for Succesful Licensing of Technology to a Korean Company
License Agreements in Korea are too often, simply, a spinning of license agreements used in the West. Foreign license agreements, in most cases, are not adequate for your licensing needs in Korea. The reality is Korean Law, in most cases, shall be the governing law notwithstanding the choice of law clause in your Korean license agreement if the license is utilized in Korea. South Korea has no specific statute solely governing license agreements and the general principles of contract law are the main legal principles governing the
Continue readingUsing Korea as a Test Bed for Asian Expansion: Look to Facebook
IPG Legal has advised, on many occasions, clients to look to South Korea for their Asian expansion prior to entering more expensive and difficult Asian markets. Hey Facebook seems to agree in an article entitled: Facebook uses Korea as Test Bed. This is a repost of article from nearly two decades ago. China is becoming even more difficult and much of SE Asia is not becoming more transparent—Korea is an excellent place to test the Asian waters. The Korea Herald has an interesting article that quotes the
Continue readingTop 10 Korean Business Opportunities for Entrepreneurs and Businesses in Korea
IPG Legal and I have been helping Korean entrepreneurs and businesses navigate the Korean business climate for over two decades. I have seen my share of successful businesses and my share of failed businesses. With the right management, a deep understanding of the Korean market, a good local guide, and some street smarts the following Korean industries are ripe with opportunities. For an article on reasons for setting up a corporation in Korea please see: Why you Should Setup a Corporation in South Korea? The following is
Continue readingWhy you Should Setup a Corporation in South Korea?
IPG Legal has assisted clients in the process of setting up a corporate entity in South Korea. Yes, it can be complex and time-consuming, but getting started on the right food is, often, the most important part to a successful business in Korea. For a list of corporate forms in Korea, please see: Korean Corporate Forms under the Korean Commercial Code. It is advisable to seek, in all but the most exceptional of cases, the assistance of a law firm and accountancy firm to ensure compliance with
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