Stock Options in Closed Corporations in Korea

For stock options in Korea to be exercisable, thus valid option contracts, the option must be approved, in most cases, at a general shareholders meeting of the issuing Korean company.  If approval of the shareholders is obtained the articles of incorporation, for the option to be valid, should, among other things, note: An intention that a stock option may be granted in specified cases;  The number of shares to be

Continue reading

Samsung’s Win Against Elliott is Korea’s Loss According to Bloomberg

Mr. William Pesek, a columnist for Bloomberg, wrote an interesting article on the battle between Samsung and Elliott.  With a majority of the local Korean vernacular running stories how the  Samsung merger will increase investments (Samsung Merger to Driver Growth in Pharmaceutical Business), Bloomberg is questioning if this will be the final straw for an increasingly perceived anti-foreign capital destination. The article is a worth a read.   The articles

Continue reading

Korea’s Real Name Transaction Act Strengthened: Korea’s Banking Law Basics

The National Assembly of Korea, in May of 2014, passed an amendment to the Act Concerning Financial Transactions by Real Name and Confidentiality Protection (“Real Name Transactions Act”). The Real Name Transactions Act, prior to this amendment, only, imposed fines on employees of financial institutions that violated the law, but did not impose these fines on those that lend or borrow a name/identification details in order to engage in a

Continue reading

Bail Granted in Korea for Alleged Violations of Korean Banking Laws

We are proud to announce that we, recently, prevailed in a white-collar criminal matter concerning an alleged crime involving violations of Korea’s Banking Laws.  The allegations stemmed from transactions between a payment processor and a major Korean financial institution.  Bail was granted for the non-Korean banker/businessman and, promptly, upon the granting of the bail by the Korean court, the Seoul Prosecution decided to drop all charges against our client.  In

Continue reading

Merger/Acquisition Opportunities in Korea: Lotte Korea Buys KT Car Rental from KT Corp.

In a sign of changing times in Korea, KT Corp., a company best known for its telecom business, has sold its car rental business to the unlisted Hotel Lotte Co. Ltd., a company controlled by Lotte Group. The publicly reported acquisition price is over US$900 million. Lotte is a leading Korean-Japanese hotel company with its hands into about everything imaginable including construction, retail, textile, food products, beverages, oil & gas

Continue reading

Credit Rating Agencies in Korea: Due Diligence of Your Supplier, Franchisee, Joint Venture Partner & Distributors

Korea has established four credit rating agencies.  The four agencies are: National Information & Credit Evaluation (NICE); Korea Investor Services (KIS); Korea Ratings (KR); and Seoul Credit Rating & Information (SCRI). Some reports provided by these rating agencies are provided in English.  However, many of the English reports are not complete.  Thus, it is advisable to make sure if you have an English version of a report that it is

Continue reading

Corporate Bankruptcy/Restructuring in Korea: The Line Begins Here (Korea’s Chapter 7 & 11 Bankruptcy)

Corporate bankruptcy/insolvency procedure in Korea is similar, in many respects, to the U.S. Chapter 7 & Chapter 11 bankruptcy procedures with some significant differences. Korean corporate insolvency structure is legislated via the Korean Debtor Rehabilitation and Bankruptcy Law (KDBRB).  The KDBRB replaced a convoluted and often conflicting myriad of laws in the form of the Corporate Rehabilitation, Composition and Bankruptcy Act.  On April 1, 2006 this new law became effective.

Continue reading

Hanwha Korea Loses Battle in New York Court over Forum Non Conveniens Issue

Hanwha Life Insurance, a Korean Insurance company, case against UBS AG was dismissed by a New York court.  We are, likely, to see the case filed in Korea or Hong Kong in the near future.  This, holding, if appealed, will, likely, be upheld.  The lawsuit stems from Hanwha loss of US$ 30million in a complicated financial product.  The case is, also, weak on the merits, since, intern alia, Hanwha is

Continue reading

Korea Contracts Don’t Forget the Counter-party: Due Diligence before Executing an Agreement in Korea

We see numerous matters coming before us from parties in the States or Europe that are importing a product from a Korean company.  Of course, the products are either faulty or never come. We, also, see cases where a Korean company is importing a product and the importing party ends up not being the party that the American or European company thought they were doing business with. Also, often, companies

Continue reading

Weekly Korean Legal News From International Law Firm – IPG Legal for the Week of July 21, 2014

Weekly Korean Legal News From International Law Firm – IPG Legal for the Week of July 21, 2014Korean Legal News Reported by the Media on the Week of July 21, 2014 South Korea Plans $40 Billion Stimulus to Tackle Weakening Growth Seoul to push tax on corporate cash reserves U.S. Chamber of Commerce chief urges FTA implemantation Workers in Their 60s Outnumber 20-Somethings Mortgage deregulation raises concerns Most Recent Posts

Continue reading

“Samsung’s First Family Struggles to Keep Grip on Company” Report by Bloomberg

The Samsung saga continues.  Lee Jae-Yong is likely to take over from his father soon.  It looks like Lee Kun-Hee’s health is not improving.  Bloomberg has an interesting article on this issue that may be found on the link below.   The Lee Family owns less than two percent of the total shares of Samsung Group, though they near absolutely control 74 companies “through a web of share holdings.” However,

Continue reading

Weekly Korean Legal News From International Law Firm – IPG Legal for the Week of July 14, 2014

Weekly Korean Legal News From International Law Firm – IPG Legal For the Week of July 14, 2014.Korean Legal News Reported by the Media on the Week of July 14, 2014 LG outpaces Samsung in UHD TV panel market in May: data Hana Bank set for merger with KEB Economists Doubt Korea Can Return to Solid Growth Line to Be Listed on Tokyo Stock Exchange Korea ranks third in e-trade

Continue reading

Weekly Korean Legal News From International Law Firm – IPG Legal for the Week of July 7, 2014

Weekly Korean Legal News From International Law Firm – IPG Legal For the Week of July 7, 2014Korean Legal News Reported by the Media on the Week of July 7, 2014 Science Ministry to Introduce Laws for Better Mobile Service Plans Validity of Financial Holding Firms in Question Bank of Korea Hints at Rate Cut Pantech Sinking into Deeper Liquidity Crisis Samsung Chief Marks 2 Months in Hospital Most Recent

Continue reading

Witholdings Taxes on Transactions between Korean & Hong Kong Companies

The Republic of Korea and Hong Kong signed a double taxation treaty on July of 2014.  The treaty will come into force, if ratified, by the respective assemblies.  Under Korea Tax Law, the, normal, withholding tax is 22%.  The main purpose of the treaty is to reduce this rate and, also, allow the governments to share information on potential tax evaders.  This double taxation treaty, among other things, includes provisions

Continue reading

Weekly Korean Legal News From International Law Firm – IPG Legal for the Week of June 30, 2014

Weekly Korean Legal News From International Law Firm – IPG Legal for the Week of June 30, 2014Korean Legal News Reported by the Media on the Week of June 30, 2014 FSS Chief Pledges to Back Foreign Firms Cho Steering Hanjin Shipping Out of Liquidity Crunch Park, Xi Boost Security, Business Ties Korea, China to Seal FTA by Year’s End Won Goes from Strength to Strength Most Recent Posts from

Continue reading

Weekly Korean Legal News From International Law Firm – IPG Legal for the Week of June 23, 2014

Weekly Korean Legal News From International Law Firm – IPG Legal for the Week of June 23, 2014Korean Legal News Reported by the Media on the Week of June 23, 2014 Samsung, LG at War over Android Wearables Hyundai Motor to Be Fined for Overstated Fuel Economy Korea Recognized for Combating Money Laundering Asiana Accepts Responsibility for Crash Penalties Likely for Woori Bank Most Recent Posts from the Korean Law

Continue reading

Weekly Korean Legal News From International Law Firm – IPG Legal for the Week of June 16, 2014

Weekly Korean Legal News From International Law Firm – IPG Legal for the week of June 16, 2014Korean Legal News Reported by the Media on the Week of June 16, 2014 Watchdog to Tighten Monitoring of Stock Trading by Paper Companies FSC, FSS Fight Over Authority Samsung and Korea’s Copy Culture Uzbekistan, South Korea Sign Declaration on Strategic Partnership Development Korea, China Discuss Maritime Border Most Recent Posts from The

Continue reading

Sean Hayes to give Speech at American Bar Association Conference in LA

Sean Hayes will give a presentation entitled Mickey Mouse, Sports Stars, Celebrities, Billions of Dollars at Stake. Who Owns the Rights to an Individual’s or a Character’s Image? 10:30 – 12:30 April 11, 2014. The speech is part of the ABA Business Law Spring Meeting in LA.  More information can be found at: ABA [email protected]

Continue reading

Garnishing Wages in Korea: Collection of Debts in Korea

I received a call from a friend asking about information concerning collecting on a large personal debt. He loaned money to a “friend” and the friend never made a payment on the loan. Word to the wise, don’t make large loans to friends—-cry poverty instead. In Korea, after a judgment or order to pay by a court, a plaintiff can collect on an unpaid debt through garnishing wages. Garnishing of

Continue reading

Ssangyong’s Korean Bankruptcy/Rehabilitation Proceeding & Many other Korean-based Construction Companies

Ssangyong Engineering & Construction filed for rehabilitation proceeding based on the Korean Debtor Rehabilitation and Bankruptcy Act.  The Act requires, among other things for: 1.  The Receiver to submit to the court a Creditor List;2.  For the court to determine that the company’s “going concern” value is greater than the “liquidation” value of the company;3.  The Receiver to submit to the court a Rehabilitation Plan;4.  The Rehabilitation Plan to be

Continue reading