Foreign companies and individual investors entering the Korean market sometimes assume that a Memorandum of Understanding (MOU) is merely a non-binding document used to outline preliminary discussions and thus not enforceable under Korean Law. Under Korean law, that assumption is frequently wrong and sometimes leads to litigation and even criminal complaints being filed to the Korean Prosecution Services. An MOU in Korea may be fully enforceable, partially binding, or non-binding, depending not on its title but on its content, structure, the parties’ course of dealing, and their
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Drafting & Negotiating Korean Joint Venture/Shareholder Agreements in Korea: Why Language, Governance, and Arbitration Clauses Matter
We have many clients who find it advisable to enter the Korean market through joint ventures with Korean partners. In many cases, this structure makes commercial sense: the Korean partner brings local market knowledge, relationships, regulatory familiarity, and operational experience, while the foreign partner contributes capital, technology, branding, and/or international distribution. However, joint ventures in Korea generate a disproportionate number of disputes involving foreign investors. In our experience advising multinational companies, many of these conflicts do not arise from bad faith or intentional misconduct. Instead, they arise
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 readingIPG Legal Rated Among the Top Law Firms in Korea
KoreaTechDesk, a leading source of news on the Korean Startup Ecosystem, listed IPG Legal among the top 11 Korean law firms. KoreaTechDesk is a news website covering the growing business startup industry in South Korea. It is one of the leading sources of English-language content on Korean startups and growing businesses. Korea’s Top Law Firms The website notes on its list of Top Korean Law Firms that: IPG Legal professionals are consistently ranked in legal and business publications as top lawyers and business professionals with global experience and local connections.
Continue readingProtecting Minority Shareholder Rights under Korean Law: A Legal Guide by IPG Legal Law Firm
Minority shareholders in Korea often find themselves navigating a Korean corporate environment dominated by controlling families, holding companies, savvy sharks, and complicated chaebol structures. The situation seems daunting, but with recent changes to Korean Law, minority shareholders have more avenues to redress controlling shareholder/management issues. The Korean Commercial Act (KCA), supplemented by the Capital Markets Act of Korea for listed entities, provides a range of rights intended to protect minority shareholders from abuse, cash burns, self-dealing, and tunneling. However, success depends on strict compliance with thresholds, timelines,
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
Continue readingTop 100 Korean Lawyers & Legal Consultants in Korea
Sean Hayes, an attorney for the Top Korean Dispute Resolution Law Firm of the Year was rated by LawAsia, one of the leading peer-reviewed publications in Asia, as a Top 100 Lawyer in Korea. Sean Hayes is one of the only non-Korean attorneys on this Korean Lawyer “A-list” and the only non-Korean that was on the list each year the list was published. Sean Hayes is the first non-Korean attorney to have worked for the Korean court system (Constitutional Court of Korea) and one of the first
Continue readingGuide to Winding-Up/Closing a Korea-based Company: Korean Company Liquidation Procedure
Any business in Korea that is registered as a corporation must wind up/liquidate the company to legally close the business in Korea. Many companies, however, choose to forgo this step thinking that no repercussions will be felt. This belief is far from the reality. I know a pending case that has led to prosecutions, a lawsuit of a related company, and a tax audit of an individual shareholder. For an article on Korean Bankruptcy, please see: Korean Bankruptcy Law. For an article on establishing a company in
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