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
Continue readingCategory: Korean Startups
Minimum Capital Requirements for Setting Up a Corporation in Korea
My friend at the Korean Tax Blog has an excellent post on the minimum capital requirement for setting up a company in Korea. The post notes that: Before 2009, Korean law required a minimum capital of 50 million KRW to estabish a corporation. However, since February 2009, there are no longer any restrictions related to mimimum capital in Korean Law. www.thekoreantaxblog.com This amendment to Korean Law has made it easier to open a company in Korea. However, to open a foreign-capital invested company and to obtain a
Continue readingDual-Class Shareholdings in Korea: Korean Corporate Law Updates
Prior to the recent amendment to the Special Measures for the Promotion of Venture Businesses Act, Korea was an outlier in the developed world with regard to Dual-Class Shareholdings. Most developed economies allow Dual- Class Shares for IPOs and for unlisted countries. Korea prohibited Dual-Class Shareholding for both listed and unlisted companies. Korean Commercial Code Art. 369(1) The Korean Commercial Code mandates that a shareholder may, only, receive one vote for each share. This so called “One-Share One-Vote Principle” was confirmed by the Supreme Court of Korea
Continue readingSteps to Set up a Business in South Korea
Setting up a corporate entity in South Korea involves several steps and can be complex. If you are setting up a Korean venture between multiple parties or corporations make sure you have a carefully and custom-drafted Korean shareholder agreement, bylaws, articles of incorporation, employment agreements, employment rules, vendor agreements and you have the basic systems and processes in place to help ensure working shareholder and employee compliance. Even if you are the, only, shareholder in the company make sure to have all your ducks in order so
Continue readingWhat are the Administrative Hurdles for Foreign Entrepreneurs to Start a Business in Korea?
Starting a business is rarely simple, and doing so as an expat in Korea involves not just financial challenges, but also the complex and constantly-changing Korean Immigration regulations that foreigners must follow in order to remain and legally launch a business in Korea. This law blog post is intended as a basic guide to Immigration challenges for entrepreneurs. Although the Korean government has launched a number of initiatives, recently, to draw in international expertise. The K-Startup Grand Challenge and the Overall Assistance for Start-up Immigration System (Oasis)
Continue readingTrade and Investment Opportunities for Indian Businesses in Korea
India and South Korea’s Comprehensive Economic Partnership Agreement CEPA is effective from Jan 2010, and the revised Double Taxation Avoidance Agreement-2015, contributed immensely to the expanded opportunities for investments and trade in goods and services for both countries. IPG Legal assists numerous companies entering the Korean market and we have a number of Indian clients doing business in Korea at this time. The bilateral trade, between India and Korea, grew 40% to $23.7 billion in 2021 with further increases expected. Exports from India to South Korea are
Continue readingMergers & Acquisitions in The Korean E-Commerce Market: Opportunities for Foreign Niche E-Commerce Sites
First-generation Korean e-commerce enterprises are currently working to integrate recently acquired businesses and create new business prospects in the fiercely competitive E-commerce market of Korea. Last month, Korea Center, the owner of Enuri.com, the nation’s oldest online shopping mall and Danawa, another local e-commerce business, merged. In order to increase their ability to compete in the market, the two businesses intend to operate their e-commerce platforms independently while eventually building an integrated system forthe analysis of online shopping data. The merger was, obviously, because of increased competition
Continue readingOpportunities in the K-Beauty Export/Import Business
The Success of K- Beauty Exports and The Impact on Economy One of the top 10 beauty markets in the world, South Korea is renowned for its inventiveness, gentle ingredients, and attractive packaging. Due to the effects of COVID-19, the market size was projected to be $6.8 billion in 2020, a considerable decrease from the $9.4 billion it was the previous year. The total export of K-beauty products and the balance of trade have improved by approximately 16% and 14%, respectively, from the previous year, despite the
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 readingKoreans Hold Unique View on Foreign Firms by Tom Coyner
For many years, the Korean market has been synonymous with protectionism in many foreign marketers’ minds. However, with the advent of a strong middle class and its successful struggle to gain a genuine democracy during the past two decades, many of the trade barriers have fallen. As more foreign products and services have become integrated into the Korean economy, a wider acceptance of foreign corporations has taken place. However, it would be a mistake to say this is a trend. A number of counter factors remain —
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