Radical Liberals Rule

Radical Liberals RuleBy Sean Hayes (Korea Times on 11/14/2008) The Lee Myung-bak administration’s bold “747 Vision” of achieving 7 percent growth over 10 years, a per capita GDP of $40,000 by 2017 and turning Korea into the seventh largest economy in the world has been stymied by vocal interest groups with often radically liberal ideologies. The President’s highly anticipated reforms have nearly universally been moderated or abandoned so the President

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Don’t Only Blame Bush

Don’t Only Blame Bush By Sean Hayes(Appeared in Korea Times on October 23, 2008) Most “mainstream” pundits and the vast majority of editorial writers have blamed the current financial mayhem on the Bush administration’s “deregulation bias.” Democratic presidential hopeful Sen. Barack Obama has noted, in a campaign speech, that John McCain and the Bush administration “fought against the very rules of the road that could have stopped this mess.” Let’s

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Transfer Pricing Reform In Korea

A U.S. NASDAQ listed company requested information concerning a specific transfer price scheme, amongst other issues, in Korea. The company has recently decided to enter the Korean market after having successfully entered the Japanese and other Asian markets. For obvious reasons, I can’t answer the question here, but a brief description of recent amendments to the law may be of interest to those that have considered global transfer price issues.

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Bank Antipathy To Foreigners

This article appeared in the Korea Times on Feb. 20, 2008. By Sean Hayes President-elect Lee Myung-bak’s plan to make Korea a more hospitable place for foreigners is a welcome development for many of us long-term residents of Korea; however, the plan will fail unless private enterprises follow suit and realize that foreigners play an integral part in the Korean economy. I have been writing legal Q&A column for this

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No American Law Firms in Korea – YET

Posted by:  Sean Hayes (Chair, Korea Practice Group at IPG)[email protected] _____________________ The KOR-EU FTA passed and thus British law firms will be able to setup shop in Korea over a five-year three-stage phase-in period.  All of the leading British firms have begun building relationships with an eye to formal partnerships.  KOR-US FTA, however, has stalled because of opposition of some prominent lawmakers in the liberal parties even though the two FTAs are

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Avoid Moral Hazard

Avoid Moral Hazard By Sean HayesAppeared in the Korea Times on January 8, 2008 President-elect Lee Myung-bak, during the campaign, pledged to create a 7 trillion won fund, managed by a presidential body, to assist in alleviating difficulties being felt by credit delinquents. The fund is equal to 5 percent of the ordinary annual budget of 2007. It has been estimated, by the Financial Supervisory Commission, that 3 million individuals

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Uncaging Korean Tiger

Uncaging Korean Tiger Appeared in the Korea Times on Nov. 28, 2007 By Sean Hayes The Nordic Tiger has been uncaged. Iceland has joined Hong Kong, Russia, Georgia, Macedonia, Slovakia, Ukraine, and a number of other countries, by adopting a flat tax on individuals and also drastically cutting corporate taxes, estate taxes, and capital gains taxes. Iceland has moved from a sleepy nation in the middle of the frigid North

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REAL ESTATE INVESTMENT COMPANY ACT (old)

REAL ESTATE INVESTMENT COMPANY ACT (Amended as of January 14, 2005)(New Law in effect on Oct, 2007)CHAPTER I GENERAL PROVISIONS Article 1 (Purpose) The purpose of this Act is to contribute to the development of national economy by prescribing the matters concerning the establishment of a real estate investment company, the management methods of assets thereof and the protection of investors therein to provide citizens at large with more opportunities

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Korean Foreign Investment Promotion Act (Enforcement Decree)

ENFORCEMENT DECREE OF THE FOREIGN INVESTMENT PROMOTION ACT INTRODUCTION Details of Enactment and Amendment – Enactment: This Decree was enacted on November 14, 1998, following the enactment of the Foreign Investment Promotion Act, as the Presidential Decree No. 15931, in order to prescribe the matters mandated by the same Act and the matters necessary for the enforcement thereof. – Amendment: This Decree has taken its present form after going through

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Korean Foreign Investment Promotion Act

FOREIGN INVESTMENT PROMOTION ACT INTRODUCTION Details of Enactment and Amendment – Enactment: This Act was enacted on September 16, 1998 as Act No. 5559, repealing the previously enforced Foreign Investment and Foreign Capital Inducement Act, in order to widely ease the regulations and restrictions on investment by foreigners and expand the tax incentives therefor, and to reorganize from all sides the systems related with foreign investment such as designation of

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Visa for Investors in Korea (D-8 Visa): KRW 100,000,000 Minimal Investment

In order to ensure that the visa is issued in a timely manner and not turned down (difficult to overturn a determination of immigration without litigation) it is advisable to hire an attorney when applying for a D-8 Investment Visa.  The following was drafted by KOTRA (http://english.kotra.or.kr/wps/portal/dken)___________________________Visa for Business Investors (D-8) The visa can be issued for: Specialists engaged in business management, production or technological sector of an FDI company supported by

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Korean Investment Visa for Foreigners

Foreign investor’s visa Question: I am a foreigner and I am thinking of starting a small business in South Korea. Is it possible to get a visa or do I need to be sponsored by a Korean company or partner? Foreign investors are eligible to obtain a D-8 residence visa provided they meet certain criteria. To qualify, an employee of a foreign company or an individual must establish a company

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Prospects dim for capital market law

The Korea Herald along with many Korean language papers on March 2, 2007 reported that the proposed consolidation of the bank, insurance, and security laws is unlikely to pass because of opposition from banks, some prominent lawmakers, and academics. A plan to consolidate government acts related to banks, insurance and securities firms could hit a snag amid controversy over allowing brokerages to engage in banking transactions for customers. Several lawmakers,

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Government Investigating Credit Card Commissions

Donga Ilbo Feb. 23, 2007 There are reports of widespread discontent over the way credit card issuers charge merchants commission fees. South Korea’s financial regulatory body has begun to investigate the issue. “We commissioned the Korea Institute of Finance to find out what costs credit card issuers face. We are going to assess whether each card issuer charges fair commissions to merchants. Then we will propose a standard for card

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Bill Sought to Limit FDI in Key Sectors

Korea Times Feb. 22, 2007 By Kim Yon-seStaff ReporterA group of lawmakers and policymakers are moving to legislate a law aimed at placing restrictions on foreign investment in some key industries. The move is aimed at blocking takeover attempts in the weapons, energy and steel sectors and other high technology areas that have some comparative advantages.The Ministry of Commerce, Industry and Energy (MOCIE) is reviewing the bill in consideration of

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First foreign listing likely delayed to June

Korea Herald Feb. 21, 2007 First foreign listing likely delayed to June The listing of the local stock exchange’s first foreign company will likely be in June at the earliest, the Korea Exchange said yesterday. Huafeng Textile International Group, which is already listed in Hong Kong, filed an application in December for a secondary floatation on Korea’s main bourse. Lee Young-tak, chairman and CEO of Korea Exchange, said in January

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