Korean Flat-Tax Rate for Foreign Workers in Korea

The Special Tax Treatment Control Law of Korea extended the benefit of the Flat Tax to 20 years from the present five years. The flat tax rate with the local income tax is 20.9%. of the foreign employee’s earned income. Additionally, the National Tax Services of Korea and the Ministry of Economy & Finance of Korea agreed to deem the starting date for employment to be January 1, 2014, even if the foreigner worked in Korea prior to 2014. Thus,

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Termination of a Franchise Agreement in Korea: Korean Franchise Law Basics

The Fair Transactions in Franchise Business Act (“Franchise Act”) and the Fair Transactions in Large Franchises and Retail Business (“LFBA”) are the major laws governing the relationship between a franchisor and a franchisee. Whereas the general provisions of the Monopoly Regulation and Fair Trade Act (MRFTA), Commercial Act and Civil Act, additionally, regulate the franchise relationship and other business relationships in Korea. See: Definition of a Franchise in Korea for the Definition and an explanation of Korean Disclosure Requirements. Franchise

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Is a Non-Registered Company Director in Korea an Employee under Korean Labor Law

Many non-Korean workers for Korean and international companies doing business in Korea are hired under the title Director. Many of these workers are, in reality, executive employees working as executive-level managers. Many of these workers are “employees” under the Korean Labor Standards with all of the protections afforded employees. For an article on the dismissal of Foreign Executives in Korea please see: Unfair Dismissal of Foreign Executives under Korean Term Contracts and Dismissal of Employees in Korea. Korean Labor Standards

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Non-Compete Clauses in Korean Employment Agreements and Korean Business Sales Agreements

Non-compete clauses in Korean employment contracts are enforceable in Korea, but there are some limitations and requirements that must be met for them to be regarded as lawful and, thus, enforceable. A Non-Compete Clause is a type of restrictive covenant that is designed to protect the business of an employer from competition from a particular party. These clauses are, typically, utilized after the completion of the sale of a business or after termination of employment. The following article shall, specifically,

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Korean Jurisdictional and Choice of Law Issues in Commercial Agency & Distributor Agreements with Korean-based Agents & Distributors

In drafting and negotiating a Korean commercial agency agreement between a principal located in one country and an agent located in Korea, proper consideration needs to be given to the choices regarding the governing law and jurisdiction of such an agreement. If you are looking for an article on choice of law issues in Korean employment disputes, please see: Choice of Law Issues in Korean Employment Law Disputes. If you are looking for a basic overview of Korean Agency &

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South Korea Offers a Variety of Business Visas for those Wishing to Conduct Business in Korea

South Korea offers several types of business visas for foreign nationals who want to conduct business activities in the country. These include the D-7 (Investor/Business Manager) Visa, D-8 (Corporate Investment) Visa, and D-9 (International Trade and Investment) Visa, among others. Each type of visa has its own eligibility requirements and conditions, and applicants must provide proof of their business plans and financial ability in order to obtain the specific visa. Korea’s visa laws are, often, changing. For an article quoting

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Forming a Joint Venture in Korea? Beware a Common Pitfall

A client, a minority shareholder in a foreign-capital-invested company in Korea is involved in litigation with other company shareholders (Korean shareholders) over issues the client had with the majority and other shareholders. The client requested me to post this article to warn others entering the Korean market via a Joint Venture or similar arrangement. This article is not intended to discourage entering the Korean market via a joint venture. JVs in Korea are, often, beneficial for businesses looking to expand

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Steps 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

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Why 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

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Top 10 Business Opportunities for Entrepreneurs 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 business. 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. The following is my list of the top Korean businesses for Entrepreneurs in Korea for 2023. This is not

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